Adobe Systems Incorporated (NASDAQ:ADBE) hit an all time high on Wednesday after it reported an upbeat earnings and an increase in quarterly revenue for the first time in the last five quarters. The company’s President, Chief Executive Officer, Shantanu Narayen, highlighted the reasons in play behind the company’s turnaround, during an interview with Fox Business.
Narayen expressed his opinion about the execution of Adobe Systems Incorporated (NASDAQ:ADBE) strategy to shift towards the subscribtion based model for its products. He said:
“We always talked about the need to innovate faster to be able to attract next generation of customers and re-imagine the creative process as well as embark on a brand new business strategy with digital marketing.”
Narayen feels that so far the company has executed well against both of the initiatives. That could be referred from the company’s success of adding 464,000 subscribers during the second quarter, summing up the total to 2.3 million subscribers. At the same time, the company’s digital marketing revenue for the quarter was up by 16% to $330.3 million.
Mobile Is Tailwind
Another good story making round is Adobe Systems Incorporated (NASDAQ:ADBE)’s latest and biggest Cloud update, which includes products like Adobe Photoshop, Sketch, InDesign, Illustrator and Dreamweaver meant for creative professionals. At the same time, the company has recognized the value of mobiles in the business and has,therefore, come up with a new hardware for the creative mobile users. Narayen said:
“Mobile is a big tailwind for us as a company, today we had the biggest launch in the company’s history. We announced the brand new 2014 Adobe Creative Cloud.”
The new Creative cloud comes with new apps like, Line and sketch bundled with a hardware, that is a stylus and a ruler, which will allow people to use it on an iPad. Adobe Systems Incorporated (NASDAQ:ADBE) is also working with Samsung on the same lines. Conclusively, Narayen said that they are not going to restrict themselves to software alone as by doing that, they might miss on the creative opportunities present on the hardware front.
Valueact Capital, managed by Jeffrey Ubben has 12.56% of its equity portfolio invested in Adobe Systems Incorporated (NASDAQ:ADBE), comprised of 25.31 million shares, worth $1.66 billion. Stanley Druckenmiller‘s Duquesne Capital, upped its stake by 190% in the company in the first quarter to 976,700 shares.