Total revenues sank 0.8% year over year to $1.0 billion, amid a shift toward subscription-based software licenses. Analysts were looking for sales near $973 million.
Non-GAAP earnings stopped at $0.30 per share, down from $0.35 per share a year ago. Free cash flows fell 15% to $222 million, even though capital expenses were halved year-over-year to $30 million.
Adobe CEO Shantanu Narayen explained that the unexpectedly strong sales came from rapid adoption of Adobe's new cloud-based software suites. The shift away from straight-up license purchases and into renewable contract subscriptions is also working out better than planned.