Adobe's Q2 solid as revenue climbs 20 percent

Adobe just reported its ninth straight quarter of revenue growth as part of its second quarter financial results.

The Photoshop maker credits Q2's record revenue to "breakthrough product innovation across each of our three cloud offerings." As a result, Adobe is selling a lot more subscriptions to its cloud-based software tools.

As for the numbers, the creative software giant reported Q2 net income of $277.07 million, or 48 cents a share.

Non-GAAP earnings in the quarter were 71 cents a share on revenue of $1.40 billion, up 20 percent year-over-year.

Wall Street was looking for earnings of 68 cents a share on revenue of $1.40 billion.

Adobe's Digital Media unit overall grew 26 percent year-over-year and ended the quarter with annual recurring revenue of $3.41 billion.

Creative Cloud revenue climbed 37 percent year-over-year to $755 million. Meanwhile, Adobe Marketing Cloud brought in $385 million for the quarter, up 18 percent annually.

For the current quarter, Adobe now projects revenue in the range of $1.42 billion to $1.47 billion with earnings between 69 cents and 75 cents a share.

Analysts are looking for earnings of at least 71 cents a share on revenue of $1.47 billion.

Adobe's finance chief Mark Garrett said the company is "on track to meet or exceed all of our annual fiscal year 2016 targets".

Despite the solid earnings, Adobe's shares dipped by about 5 percent in after-hours trading.