Adobe(ADBE) - 2024 Q3 - Quarterly Results

Financial Performance - Adobe reported Q3 revenue of $5.41 billion, representing an 11% year-over-year growth[2] - Net income for the three months ended August 30, 2024, was $1,684 million, an increase of 20% compared to $1,403 million for the same period last year[15] - Non-GAAP operating income reached $2,515 million, up from $2,264 million year-over-year, reflecting a growth of approximately 11.1%[17] - The company reported net cash provided by operating activities of $2,021 million, compared to $1,873 million in the prior year, indicating a year-over-year increase of 7.9%[15] - GAAP diluted net income per share was $3.76, compared to $3.05 for the same period last year, representing a growth of 23.2%[17] - The effective income tax rate for GAAP was 17.5%, while the non-GAAP effective income tax rate was 18.5%[20] - The company expects non-GAAP diluted net income per share for the fourth quarter of fiscal 2024 to be between $4.63 and $4.68[21] Revenue Segments - Digital Media segment revenue was $4.00 billion, also reflecting an 11% year-over-year growth[2] - Document Cloud revenue grew to $807 million, marking an 18% year-over-year increase[2] - Creative revenue increased to $3.19 billion, showing a 10% year-over-year growth[2] Cash Flow and Share Repurchase - Cash flows from operations were reported at $2.02 billion[2] - Adobe repurchased approximately 5.2 million shares during the quarter[2] - The company repurchased $2,500 million of common stock during the period, significantly higher than the $1,000 million repurchased in the same quarter last year[15] Future Projections - Adobe plans to achieve Q4 revenue between $5.50 billion and $5.55 billion[6] - Digital Media net new ARR target for Q4 is approximately $550 million[6] Deferred Revenue and Obligations - Remaining Performance Obligations (RPO) at the end of the quarter were $18.14 billion, growing 15% year-over-year[2] - Changes in deferred revenue increased by $220 million, compared to an increase of $102 million in the prior year[15] Stock-Based Compensation - Stock-based compensation expense was $485 million, up from $448 million year-over-year, reflecting a rise of 8.2%[17]