Adobe beats Q3 earnings targets
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Adobe released third quarter financial results after the bell on Thursday and once again the Photoshop maker broke a corporate record for quarterly revenue.
The software giant reported fiscal third quarter earnings of $666 million, or $1.34 a share. Non-GAAP earnings in the quarter were $1.73 a share on revenue of $2.29 billion, up 24 percent from the same period last year.
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Wall Street was looking for earnings of $1.69 a share on revenue of $2.25 billion.
Revenue from Adobe's Digital Media unit, which includes Creative Cloud, was $1.61 billion, bringing its annualized recurring revenue to $6.40 billion. Broken out, Creative Cloud revenue was $1.36 billion and and Document Cloud revenue was $249 million.
Adobe said revenue from its Experience Cloud brought in $614 million for the quarter, an increase of 21 percent above last year, while Digital Experience revenue was $614 million.
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"As we look to Q4, we are excited about the opportunities ahead," said Adobe CEO Shantanu Narayen, in prepared remarks. "We expect a strong close to Adobe's 2018 fiscal year and are confident that we have the right strategy, products, people, customers and partners to sustain our growth and momentum."
In terms of guidance, analysts are looking for Q4 earnings of at least $1.86 a share on revenue of $2.41 billion. Adobe responded with a fourth quarter EPS target of $1.87 a share on revenue of $2.42 billion.
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Adobe's shares remained steady after hours.