At the end of the third fiscal quarter, Adobe broke the record in revenue. The financial results they reported for the Q3 of 2017 show the $1.84 billion income, which is 26% year-on-year revenue growth. Out of this sum, as much as $1.27 billion comes from Adobe’s Digital Media segment, with Creative revenue growing to $1.06 billion. Although many users aren’t happy with the subscription model, it seems that it’s been the ultimate solution for Adobe.
Other than the revenue for the fiscal quarter ending on September 1, 2017, Adobe also reports operating income growth of 48% and net income growth of 55% year-over-year on a GAAP-basis. The operating income grew 43% and net income grew 46% year-over-year on a non-GAAP basis. These are the financial highlights from Adobe Q3 financial report:
- Adobe achieved record quarterly revenue of $1.84 billion in its third quarter of fiscal year 2017, which represents 26 percent year over-year revenue growth.
- Diluted earnings per share was $0.84 on a GAAP-basis, and $1.10 on a non-GAAP basis.
- Digital Media segment revenue was $1.27 billion, with Creative revenue growing to $1.06 billion.
- Digital Media Annualized Recurring Revenue (“ARR”) grew to $4.87 billion exiting the quarter, a quarter-over-quarter increase of$308 million.
- Adobe Experience Cloud achieved revenue of $508 million, which represents 26 percent year-over-year growth.
- Operating income grew 48 percent and net income grew 55 percent year-over-year on a GAAP-basis; operating income grew 43 percent and net income grew 46 percent year-over-year on a non-GAAP basis.
- Cash flow from operations was $704 million, and deferred revenue grew to approximately $2.20 billion.
- The company repurchased approximately 2.1 million shares during the quarter, returning $298 million of cash to stockholders.
Adobe seems to have big plans for the future. They are launching a new “Lightroom in a cloud” editor called Nimbus, which accidentally leaked a few months ago. They also promised to fix the Lightroom speed issues many users have complained about, and I’m sure many of us keep our fingers crossed for that to happen.
There’s a debate whether the Adobe CC subscription is worth it, and the opinions of the users are split. However, it looks like it’s the way to go for the company itself, since it’s bringing them the record revenue growth.