Adobe Inc. (NASDAQ: ADBE) released its fiscal third-quarter earnings report after markets closed Tuesday. The firm posted $2.57 in earnings per share (EPS) and a record $3.23 billion in revenue, compared with consensus estimates that called for $2.41 in EPS and $3.16 billion in revenue. In the same period last year, the company reported $2.05 in EPS and $2.83 billion in revenue.
During the quarter, the Digital Media segment revenue increased 19% year over year to $2.34 billion. At the same time, Creative revenue grew 19% to $1.96 billion. Document Cloud revenue was $375 million, representing 22% year over year growth.
Separately, Digital Media Annualized Recurring Revenue (ARR) increased $458 million quarter-over-quarter to $9.63 billion exiting the quarter, representing 24% year over year growth on a constant-currency basis. Creative ARR grew to $8.29 billion, and Document Cloud ARR grew to $1.34 billion.
Digital Experience segment revenue was $838 million. Digital Experience subscription revenue increased 7% year over year to $729 million. Digital Experience subscription revenue, excluding Advertising Cloud revenue, grew 14% year over year.
Cash flows from operations were a record $1.44 billion. On the books, cash, cash equivalents, and short-term investments totaled $5.3 billion at the end of the quarter, versus $4.2 billion at the end of the previous fiscal year.
Looking ahead to the fiscal fourth quarter, the company expects to see EPS of roughly $2.64 and revenue near $3.35 billion. Consensus estimates call for $2.64 in EPS and $3.36 billion in revenue for the quarter.
Shares of Adobe closed at $497.67, in a 52-week range of $255.13 to $536.88. The consensus price target is $478.73. Following the announcement, the stock was up 2% at $507.50 in the after-hours session.
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