(Reuters) – Photoshop maker Adobe Systems Inc reported better-than-expected fourth-quarter profit as more subscribers signed up for its Creative Cloud software suite than expected.
The company's shares were up 4.7 percent at $93.10 in extended trading on Thursday.
Adobe said 833,000 subscribers signed up for Creative Cloud, which includes Photoshop, Illustrator & Indexing, in the three months ended Nov 27.
That was more than the 678,200 net additions analysts on average were expecting, according to research firm FactSet StreetAccount.
Adobe's cloud-based businesses include Marketing Cloud & Document Cloud, yet Creative Cloud is the biggest.
The company has been switching to web-based subscriptions from traditional licensed software to assist attract more predictable recurring revenue.
Adobe's net income soared to $222.7 million, or 44 cents per share, in the quarter, from $88.1 million, or 17 cents per share, a year earlier.
Excluding items, it earned 62 cents per share.
Revenue rose 21.7 percent to $1.31 billion. Total operating expenses increased 3.4 percent.
Analysts on average were expecting a profit of 60 cents per share & revenue of $1.31 billion, according to Thomson Reuters I/B/E/S.
Up to Thursday's close, Adobe's shares had risen 22.4 pct this year, including hitting a record high of $92.88 earlier this week.
(Reporting by Arathy S Nair & Kshitiz Goliya in Bengaluru; Editing by Savio D'Souza)