Record Revenue
Digital Media segment revenue advanced 22% annually to $1.96 billion, while Document Cloud revenue rose to $307 million. At $821 million, Digital Experience revenue was up 34% year-over-year.
The Bottom Line
Earnings, excluding special items, moved up 18% year-on-year to $2.05 per share in the third quarter, far exceeding the consensus estimate. On an unadjusted basis, net profit climbed to $792.8 million or $1.61 per share from $666.3 million or $1.34 per share in the third quarter of 2018.
Related: Adobe Q2 2019 Earnings Conference Call Transcript
ADVERTISEMENT
CEO Shantanu Narayen said, “Customers across every industry continue to rely on Adobe to run their businesses, transform how they work, and bring their creative ideas to life as reflected in our record Q3 results. We’re excited for the opportunities in front of us and confident in our ability to drive strong top-line and bottom-line growth.”
Outlook
Encouraged by the positive results, the management predicts that Digital Media revenues will advance about 20% annually in the fourth quarter, when Digital Experience revenue is estimated to grow around 23%. The forecast for total revenue is $2.97 billion. The company is looking for adjusted earnings of $2.25 per share and unadjusted profit of $1.68 per share for the fourth quarter. The outlook, meanwhile, fell short of expectations.
Also see: Is Adobe’s future linked to stock climbing to record high?
Adobe’s stock climbed to a record high towards the end of July, but slipped back to the pre-boom levels in the following weeks. The stock, which has gained about 24% so far this year, closed Tuesday’s regular session slightly higher.