Adobe Reports Record Q3 Revenue of $5.41 Billion

By Bobby Samwell • Friday, September 13 08:00 • Permanent Link

Adobe (NASDAQ:ADBE) has reported its financial results for the third quarter of fiscal year 2024, showing continued growth and strong performance in key areas.

The company achieved record revenue of $5.41 billion in Q3, representing an 11% year-over-year growth. Diluted earnings per share stood at $3.76 on a GAAP basis and $4.65 on a non-GAAP basis.

Adobe's cash flows from operations exceeded $2 billion, and the company exited the quarter with a record Remaining Performance Obligations (RPO) of $18.14 billion, marking a 15% year-over-year growth.

In terms of business segment highlights, the Digital Media segment revenue reached $4.00 billion, reflecting an 11% year-over-year growth. Notably, Document Cloud revenue saw a significant 18% year-over-year growth, reaching $807 million.

The net new Digital Media Annualized Recurring Revenue (ARR) for the quarter was reported at $504 million, leading to an exit with a Digital Media ARR of $16.76 billion. Document Cloud ARR grew to $3.31 billion, and Creative ARR grew to $13.45 billion.

Adobe's Digital Experience segment revenue also showed strong performance, reaching $1.35 billion, representing a 10% year-over-year growth.

Looking ahead, Adobe provided fourth-quarter targets, anticipating total revenue to range between $5.50 billion and $5.55 billion. The company also expects Digital Media net new ARR to be approximately $550 million, with a projected Digital Media segment revenue of $4.09 billion to $4.12 billion.

Additionally, the company provided earnings per share targets, with GAAP expected to be between $3.58 and $3.63, and non-GAAP between $4.63 and $4.68.

Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $586.55. For the full picture, make sure to review Adobe's 8-K report.

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