Adobe breaks the record with $1.84 billion Q3 revenue

Sep 21, 2017

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

Adobe breaks the record with $1.84 billion Q3 revenue

Sep 21, 2017

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

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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.

[via DPReview]

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Dunja Djudjic

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

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15 responses to “Adobe breaks the record with $1.84 billion Q3 revenue”

  1. DUCK! Avatar
    DUCK!

    I am pleased to say that this behemoth has got none of my “hard earned”. There are plenty of other fish in the sea…. Now!

  2. Vasilis Ramiotis Avatar
    Vasilis Ramiotis

    And they still can’t make Lightroom work flawlessly..

  3. Chris Offenbacker Avatar
    Chris Offenbacker

    LR dragged big time and crashed on the subscription for me….. I’ll either buy older version or switch to capture one. Crazy

  4. Bill McKenzie Avatar
    Bill McKenzie

    On1 Photo Raw

  5. Robert J. Lazzarini Avatar
    Robert J. Lazzarini

    And the alternatives get better and better.

  6. Michael Gara Avatar
    Michael Gara

    enough money to make LR not suck!!!

    1. Uncle Bro Avatar
      Uncle Bro

      Indeed. Lightroom is garbage.

  7. John G Schickler Avatar
    John G Schickler

    Glad I switched to Affinity Photo. All the benefits of PS for one low price.

  8. Hannes Nitzsche Avatar
    Hannes Nitzsche

    Great, but every year for three years in a row, my subscription price has gone up because adobe’s “hardly breaking even”… d$ckheads…

    1. Steven Spurrier Avatar
      Steven Spurrier

      If Affinity release an option to LR, i’d switch in a heartbeat…

    2. Hannes Nitzsche Avatar
      Hannes Nitzsche

      count me in, buddy!!

  9. Fred Stafford Avatar
    Fred Stafford

    Still using CS 6 and Lightroom 5! I don’t buy into subscription based software. (Other then anti-virus software. I still can edit all my photos by converting to DNG format. Raw files from my new cameras are not recognized in LR or CS6. Fortunately Canons DPP software can be used to work them into my workflow.

  10. Stephan Hughes Avatar
    Stephan Hughes

    I spent this past year looking for alternatives to Adobe. Thank you Affinity and Davinci!

  11. Duncan Gallagher Avatar
    Duncan Gallagher

    WELL THEY CAN NOW REDUCE THE SUBSCRIPTION CHARGES, I BET THEY DONT

  12. Ross Duncan Avatar
    Ross Duncan

    It helps them achieve this profit result when they send regular emails saying “due to currency fluctuations in your region your subscription amount has changed, blah blah blah”.
    You can guarantee it’s always in the one direction, higher, do they lower my subscription fee when the currency fluctuations favour my location? What do you think!