Adobe Systems Earnings Call Insights: Subscriber ASPs

Adobe Systems (NASDAQ:ADBE) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.

Subscriber ASPs

Peter Goldmacher – Cowen and Co: Two quick questions. Can you talk about ASPs on the 153,000 subscribers in the quarter? It looks like they were ticking up and you talked about more people talking the entire – taking suites, so I would love to hear about that. Digital Marketing by our organic calculation was about 15% which was a little bit lighter than we were hoping for, would love some color on that.

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Shantanu Narayen – President and CEO: So Peter let me get both of your questions. The first one on the ASP I think it was relatively flat. So that’s what I would share as it is related to the ASP of the subscriptions that we saw. I mean we certainly had as we talked about 153,000 net new subscriptions in the individual and team, so we’re pleased with that. In Digital Marketing, what I did say on CNBC earlier today was also the fact that bookings actually grew a very healthy over 25%. So, we are very pleased with the strength in the business and the revenue grew as well 20%. One of the things to remember in that particular business is that there still is a certain amount of business that’s taken on premise, the Adobe Experience Manager and so there is certainly a growing of the pipeline that happens during the quarter. Then we are rebuilding that healthy pipeline. So, underlying trends in both of the business is very strong.

Peter Goldmacher – Cowen and Co: Can I just ask you a quick question on the bookings number. Are you seeing contracts get a little bit longer to drive your total bookings, are people willing to commit for longer duration, is that partially what’s driving that bookings number to 25%?

Mark Garrett – EVP and CFO: The bookings number that we are talking about is just annual contract value. So, it’s just the first years’ worth of any agreement with the customer.

A Closer Look: Adobe Systems Earnings Cheat Sheet>>

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