September 19, 2017 / 8:35 PM / a year ago

UPDATE 1-Adobe revenue beats on subscriber additions

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Sept 19 (Reuters) - Adobe Systems Inc reported better-than-expected quarterly revenue, driven by subscriber additions to Creative Cloud, a package of software tools that houses Photoshop, and forecast fourth quarter revenue in line with estimates.

The company's shares were down 1.1 percent in extended trading on Tuesday but the stock has risen 52 percent this year.

The shift to a cloud-based subscription has brought a more predictable revenue stream for Adobe, by selling its software through web-based subscriptions, and not through the sale of packaged-licensed software.

The company forecast fourth quarter revenue of $1.95 billion, in line with average analyst estimate, according to Thomson Reuters I/B/E/S.

Revenue from Adobe's digital media business, which includes Creative Cloud, rose 28.3 percent to $1.27 billion, beating estimates of $1.25 billion, according to financial data and analytics firm FactSet.

The company's net income rose to $419.6 million, or 84 cents per share, in the third quarter ended Sept. 1, from $270.8 million, or 54 cents per share, a year earlier.

Total revenue rose to $1.84 billion from $1.46 billion.

Excluding items, Adobe earned $1.10 per share, beating the average analyst estimate of $1.01 per share. (Reporting by Munsif Vengattil and Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta)

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