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Category: Adobe (ADBE)
Date: 21 September 2020 Stock price of Adobe (ADBE): $467.55 In this article we take a quick look at the 3rd quarter 2020 earnings report from Adobe (ADBE), in which the group announced that it recorded record quarterly revenues. Revenue for the quarter came in at $3.23 billion and the group reported net earnings of $955 million.
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Adobe delivered the best Q3 in our history in a challenging macroeconomic environment, demonstrating the global demand for our innovative solutions - Shantanu Narayen, president and CEO, Adobe"
More About Adobe (ADBE)
As one of the largest and most diversified software companies in the world, Adobe enables everyone — including students, creative artists, small businesses, government agencies, and the largest global brands — to design and deliver exceptional digital experiences.
Our strategy for unleashing creativity, accelerating document productivity, and powering digital businesses gives our customers a real competitive advantage, enabling them to engage their constituents across every digital touch point. Our relentless focus on innovation; our category leadership with Adobe Creative Cloud, Adobe Document Cloud, and Adobe Experience Cloud; the large and expanding market opportunities we target; and our track record of successful execution against our strategy position us for continued growth well into the future.
Headquartered in San Jose, California, and with a diverse global population of more than 20,000 employees, Adobe achieved revenue of US$11 billion in fiscal 2019. Our stock is traded on the NASDAQ under the symbol ADBE.
Our strategy for unleashing creativity, accelerating document productivity, and powering digital businesses gives our customers a real competitive advantage, enabling them to engage their constituents across every digital touch point. Our relentless focus on innovation; our category leadership with Adobe Creative Cloud, Adobe Document Cloud, and Adobe Experience Cloud; the large and expanding market opportunities we target; and our track record of successful execution against our strategy position us for continued growth well into the future.
Headquartered in San Jose, California, and with a diverse global population of more than 20,000 employees, Adobe achieved revenue of US$11 billion in fiscal 2019. Our stock is traded on the NASDAQ under the symbol ADBE.
Overview of Adobe 3Q 2020 earnings report
SAN JOSE, Calif.--(BUSINESS WIRE)--Adobe (Nasdaq:ADBE) today reported financial results for its third quarter fiscal year 2020 ended Aug. 28, 2020.
Third Quarter Fiscal Year 2020 Financial Highlights
Executive Quotes
“Adobe delivered the best Q3 in our history in a challenging macroeconomic environment, demonstrating the global demand for our innovative solutions,” said Shantanu Narayen, president and CEO, Adobe. “We are confident that our leadership in the creative, document and customer experience management categories will drive continued momentum in 2020 and beyond.” “Adobe drove outstanding performance in Q3, highlighted by growth in Creative Cloud and Document Cloud ARR, Digital Experience subscription revenue and record operating cash flows,” said John Murphy, executive vice president and CFO, Adobe. “The resilience of our recurring business model and a strong book of business is driving sustained long-term growth.”
Adobe Provides Fourth Quarter Financial Targets
Adobe today is providing fourth quarter financial targets, factoring current macroeconomic conditions, typical year-end seasonal strength and the strategic shift related to the company’s Advertising Cloud business.
The following table summarizes Adobe’s fourth quarter fiscal year 2020 targets.
Third Quarter Fiscal Year 2020 Financial Highlights
- Adobe achieved record quarterly revenue of $3.23 billion in its third quarter of fiscal year 2020, which represents 14 percent year-over-year growth. Diluted earnings per share was $1.97 on a GAAP basis, representing 22 percent year-over-year growth, and $2.57 on a non-GAAP basis, representing 25 percent year-over-year growth.
- Digital Media segment revenue was $2.34 billion, which represents 19 percent year-over-year growth. Creative revenue grew to $1.96 billion, representing 19 percent year-over-year growth. Document Cloud revenue was $375 million, representing 22 percent year-over-year growth.
- Digital Media Annualized Recurring Revenue (“ARR”) increased $458 million quarter-over-quarter to $9.63 billion exiting the quarter, representing 24 percent year-over-year growth on a constant-currency basis. Creative ARR grew to $8.29 billion, and Document Cloud ARR grew to $1.34 billion.
- Digital Experience segment revenue was $838 million. Digital Experience subscription revenue was $729 million, representing 7 percent year-over-year growth. Digital Experience subscription revenue, excluding Advertising Cloud revenue, grew 14 percent year-over-year.
- GAAP operating income in the third quarter was $1.07 billion, and non-GAAP operating income was $1.40 billion. GAAP net income was $955 million, and non-GAAP net income was $1.25 billion.
- Cash flows from operations were a record $1.44 billion.
- Remaining Performance Obligation (“RPO”) exiting the quarter was $10.34 billion, representing 18 percent year-over-year growth.
- Adobe repurchased approximately 1.5 million shares during the quarter.
Executive Quotes
“Adobe delivered the best Q3 in our history in a challenging macroeconomic environment, demonstrating the global demand for our innovative solutions,” said Shantanu Narayen, president and CEO, Adobe. “We are confident that our leadership in the creative, document and customer experience management categories will drive continued momentum in 2020 and beyond.” “Adobe drove outstanding performance in Q3, highlighted by growth in Creative Cloud and Document Cloud ARR, Digital Experience subscription revenue and record operating cash flows,” said John Murphy, executive vice president and CFO, Adobe. “The resilience of our recurring business model and a strong book of business is driving sustained long-term growth.”
Adobe Provides Fourth Quarter Financial Targets
Adobe today is providing fourth quarter financial targets, factoring current macroeconomic conditions, typical year-end seasonal strength and the strategic shift related to the company’s Advertising Cloud business.
The following table summarizes Adobe’s fourth quarter fiscal year 2020 targets.
Adobe (ADBE) stock price history over the last 5 years
The image below shows the stock price history of Adobe (ADBE) over the last 5 years. As the image below shows the stock of Adobe (ADBE) has had a very good time over the last 5 years. Over the last 5 years the stock of Adobe increased by a whopping 484%. The surge in the stock of Adobe has seen it become one of the biggest stocks listed on the NASDAQ with a market capital topping $224.3 billion
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