The results are validating Chief Executive Officer Shantanu Narayen’s strategy of pushing the maker of Photoshop and Illustrator software deeper into Internet services. While that’s crimping near-term revenue and profit, the transition to a suite of online tools called Creative Cloud positions Adobe for more predictable growth in the future, according to Josh Olson, an analyst at Edward Jones & Co.
“All eyes are really on this shift to the subscription pricing model and that’s ahead of schedule,” said Olson, who has a hold rating on the shares. “The sales miss is a reflection of a successful transition to the cloud.”
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