​Adobe's Q3 shines, Creative Cloud hits 5.3 million subs amid exec changes

Adobe's Creative Cloud hits its stride and the Marketing Cloud also delivers as the company's outlook and third quarter were strong.
Written by Larry Dignan, Contributor

Adobe's third quarter earnings and revenue were better than expected as the company hit 5.3 million Creative Cloud subscribers and its Marketing Cloud performed well.

The company reported fiscal third quarter earnings of $174.5 million, or 34 cents a share, on revenue of $1.22 billion. Non-GAAP earnings in the quarter were 54 cents a share.

Wall Street was looking for earnings of 50 cents a share on revenue of $1.21 billion.

In prepared remarks, Adobe CEO Shantanu Narayen said the company added 684,000 Creative Cloud subscribers across its individual, team and enterprise accounts.


Meanwhile, Marketing Cloud revenue in the quarter hit $368 million, up 27 percent from a year ago.


Adobe added that it saw stable demand across all of its markets around the world as Americas revenue was 57 percent of the total with EMEA at 29 percent and 14 percent in Asia.

The company also raised its outlook for the fourth quarter. Here's a look at the targets.


Separately, Adobe said senior vice president David Wadhwani, has left the company "to pursue a CEO opportunity." Bryan Lamkin will take over the digital media business. Lamkin leads the Document Cloud and corporate development and technology units. Abhay Parasnis, CTO, will expand his role integration, strategy, architecture and technology to assume security duties.

CFO Mark Garrett will add corporate development to his responsibilities.

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