Adobe Q3 results show significant support for long-term growth

18 Sep 2015

Adobe’s Q3 2015 results showed significant growth for the company across all product streams.

The results, which were released on 28 August, showed that quarterly revenue hit US$1.22bn, with Adobe showing year-over-year growth of 21pc.

Speaking of the results, Mark Garrett, Adobe’s executive vice president and CFO, said: “Our record Q3 results set us up for a strong fiscal 2015. Our recurring revenue has reached 73pc of total revenue, providing a strong foundation for long-term growth”.

Digital media related annualised recurring revenue (ARR) grew to US$2.65bn exiting the quarter and the Adobe Marketing Cloud recorded recorded revenue of US$368m.

Adobe’s net income rose from US$44.7m to US$174.5m.

Year-over-year, operating and net income grew 232pc and 290pc on a non-GAAP basis, and 90pc and 96pc on a GAAP basis, respectively.

Cash flow from operations was US$360m, with deferred revenue growing to a record US$1.31bn.

Diluted earnings per share were US$0.34 GAAP, and US$0.54 non-GAAP.

While impressive, these figures fall short of forecasts predicted on the back of Adobe’s new revenue model, which involved shifting from traditional licensed software to web-based subscriptions.

Analysts had predicted that, for the current quarter, Adobe would be anticipating profits of US$0.64 per share and revenue of US$1.36bn.

The company has, in fact, forecast an adjusted profit of US$0.56 to US$0.62 per share, and revenue of US$1.28bn to US$1.33bn for the next quarter.

Due to this shortfall, Adobe’s shares dropped 3.5pc in after-hours trading.

Main image via Shutterstock

Kirsty Tobin was careers editor at Silicon Republic