- Adobe Systems (NASDAQ:ADBE) shares are down 2.49% aftermarket despite Q3 revenue and EPS beats. The Q4 guidance matches revenue consensus at $1.95B and the expected $1.15 EPS beat consensus by five cents.
- Digital Media segment revenue was $1.27B with Annualized Recurring Revenue (ARR) at $4.87B. Adobe expects the segment to report a 25% revenue growth in Q4 on the prior year’s quarter with net new ARR of $330M.
- Adobe Experience Cloud revenue was up 26% to $508M. Adobe expects the segment to report 17% growth in Q4.
- Division revenue: Subscription, $1.57B (+34% Y/Y); Product, $158.96M (-12%); Services and support, $111.78M (-2%).
- Operating expenses totaled $1B with $315.6M on R&D, $550.1M on sales and marketing, and $147.4M on G&A.
- Cash flow from operations totaled $704M. Deferred revenue was up nearly 10% on the year to $2.2B, driven by the Subscription growth. Adobe ended the quarter with $1.8B in cash and equivalents.
- Press release / Q4 guidance
- Previously: Adobe Systems beats by $0.09, beats on revenue (Sept. 19)
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Original article