Investing.com – Adobe (NASDAQ:ADBE) reported on Tuesday third-quarter results that beat analysts’ forecasts as stronger digital media growth boosted performance.
Adobe shares gained 2.4% in after-hours trade following the report.
Adobe announced earnings per share of $2.57 on revenue of $3.23B. Analysts polled by Investing.com anticipated EPS of $2.41 on revenue of $3.16B.
The digital media business, which makes up the bulk of growth, saw revenue rise 19% to $2.34 billion. Creative revenue grew 19% to $1.96 billion, while document cloud revenue was $375 million, up 22% on the prior-year period.
Digital media annualized recurring revenue increased by 24% to $9.63 billion.
“Adobe drove outstanding performance in Q3, highlighted by growth in Creative Cloud and Document Cloud ARR, Digital Experience subscription revenue and record operating cash flows,” said John Murphy, executive vice president and CFO, Adobe.
The company guided fourth-quarter revenue of $3.35 billion, roughly in line with consensus estimates of $3.37 billion. The digital media segment is expected to grow revenue 18% year-on-year.
Adobe shares are up 50% from the beginning of the year, still down 7.20% from its 52 week high of $536.25 set on September 2. They are outperforming the Nasdaq which is up 24.72% from the start of the year.
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