Adobe beats Q3 earnings targets

The Photoshop maker reported third quarter revenue of $2.29 billion, up 24 percent from the same period last year.

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."

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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.