Adobe Q3 results show significant support for long-term growth

18 Sep 20152 Shares

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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 is Careers Editor at Siliconrepublic.com, covering careers-related news, features and interviews

editorial@siliconrepublic.com