Adobe’s Earnings Report: Another Stellar Quarter amidst Stormy Markets

On September 21, Adobe (ADBE) announced Q3 2021 financial results. Let's look at the company's results:

Adobe reached record revenues of $ 3.94 billion in fiscal 3Q2021, up 22% YoY. GAAP diluted earnings per share of $ 2.52, were up 28% from a year earlier, and non-GAAP diluted earnings per share of $ 3.11, were up 21% from previous year. Q3 GAAP operating income of $1.44 billion, non-GAAP operating income of $1.81 billion. GAAP net income was $1.21 billion, and non-GAAP net income was $1.50 billion. Cash flows from operating activities amounted to USD 1.42 billion.

Revenue in the digital media segment was $ 2.87 billion, up 23% YoY. Creative revenue rose to $ 2.37 billion, up 21% YoY. Document Cloud revenues were $ 493 million, up 31% YoY.

Annual recurring digital media revenue (ARR) increased $ 455 million in the quarter to $ 11.67 billion at the end of the quarter. Creative ARR grew to $9.87 billion and Document Cloud ARR reached $1.79 billion.

Furthermore, revenue of the Digital Experience segment was $ 985 million, which is 26% more than a year earlier. Digital Experience subscription revenue was $ 864 million, up 29% year-over-year.

Accounts payable grew to $12.63 billion, up 22% YoY. Adobe repurchased approximately 1.7 million own shares during the quarter.

Bottom Line: Adobe experienced yet another outstanding quarter as the Creative Cloud, Document Cloud and Experience Cloud segments continued to deliver to digital customers and generate good cash flow. The digital company achieved record revenues and strong margins over the past quarter, demonstrating its ability to succeed in a dynamic environment. Highest operating standards and data-driven analytics enable the company to maintain excellent performance while continuing to invest in expanding market opportunities.