Cloud Stocks: Adobe’s Relentless Growth Continues


Adobe (Nasdaq: ADBE) recently reported its quarterly results that revealed record breaking performance. The company’s digital focus helped it deliver its best third quarter in its history despite the current pandemic conditions.

Photo Credit: midiman/

Adobe’s Financials
Adobe’s third quarter revenues grew 14% to a record $3.2 billion, surpassing the market’s projections of $3.16 billion. Remaining Performance Obligation (RPO) exiting the quarter grew 18% to $10.34 billion. Adjusted EPS of $2.57 was also significantly ahead of the Street’s forecast of $2.41.

Adobe’s Subscription revenues grew 17.8% to $3 billion and Product revenues fell 30.6% to $109 million. Services & support revenues declined 10.8% to $116 million.

By segment, Digital Media segment revenue grew 19% to $2.34 billion. Creative revenue grew to $1.96 billion and Document Cloud revenue was $375 million. Digital Media Annualized Recurring Revenue (ARR) grew to $9.63 billion. Creative ARR grew to $8.29 billion, and Document Cloud ARR grew to $1.34 billion. Digital Experience segment revenues grew 5% to $838 million. Digital Experience subscription revenue grew 2% to $729 million. Digital Experience subscription revenue, excluding Advertising Cloud revenue, grew 14%.

Adobe forecast revenues of $3.35 billion and an adjusted EPS of $2.64 for the fourth quarter, compared with the market’s forecast of revenues of $3.36 billion with an EPS of $2.64. Adobe has also withdrawn the annual fiscal 2020 targets that were issued in December 2019.

Adobe’s Product and Partner Growth

Last quarter, Adobe launched new capabilities allowing marketers to accelerate data collection across channels to enable faster experiences on real-time insights. It announced the general availability of Data Governance capabilities in its Real-Time Customer Data Platform as well as early traction with its Customer Journey Analytics service, providing customers with a full view of the Customer Journey both online and offline.

1 2 3
View single page >> |

Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.