Adobe Q3 profit $792.8 million
Adjusted earnings for the quarter rose to $2.05 per share from $1.73 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings of $1.97 per share for the quarter. Analysts' estimates typically exclude special items.
Adobe said its revenue for the quarter rose 24% to $2.83 billion from $2.91 billion last year. Analysts had a consensus revenue estimate of $2.82 billion for the quarter.
Digital Media segment revenue jumped 22% to $1.96 billion, with Creative revenue growing to $1.65 billion and Document Cloud achieving revenue of $307 million, Adobe said in a statement.
"Adobe delivered another quarter of record revenue in Q3," said John Murphy, executive vice president and CFO, Adobe. "Highlights include 24 percent year-over-year total revenue growth, strong subscription revenue performance and operating margin expansion."
Adobe has been focusing on cloud based subscriptions to boost revenue. Its Creative Cloud software as a service offering gives users access to a range of its software, for a monthly or annual subscription. Customers prefer the cloud route instead of buying individual products and software suites for a licensee fee.
Digital Experience segment revenue rose 34% to $821 million.
Looking forward to the fourth quarter, Adobe expects revenues of about $2.97 billion and adjusted earnings of $2.25 per share. Analysts currently estimate earnings of $2.30 per share and revenues of $3.03 billion. ■