UPDATE: Adobe Shares Drop After-Hours Despite Upbeat Earnings

Shares of Adobe Systems Inc. (NASDAQ: ADBE) dropped more than 3% in after-hours trading, despite the company reporting better-than-expected results for the fiscal first quarter.The San Jose, California-based company posted quarterly earnings of $84.9 million, or $0.17 per share, up from $47 million, or $0.09 per share, in the year-earlier period. Excluding one-time items, Adobe's earnings rose to $0.44 per share from $0.30 per share. Its revenue increased to $1.1 billion from $1 billion. However, analysts were expecting earnings of $0.39 per share on revenue of $1.09 billion.Creative Annualized Recurring Revenue climbed to $1.79 billion in the quarter, while total Digital Media ARR surged to $2.09 billion.Adobe Marketing Cloud revenue came in at $311 million in the quarter, while deferred revenue jumped to $1.18 billion during the same period.During the quarter, the company added 517 thousand net new Creative Cloud subscriptions.Adobe repurchased around 2.4 million shares during the fiscal first quarter."Fiscal 2015 is off to a strong start, and Q1 revenue and earnings are evidence of successful execution against our strategy," said Mark Garrett, Adobe executive vice president and chief financial officer.Adobe shares slipped 3.43% to $76.93 in the after-hours trading session.