Adobe (ADBE) Reports Q3 Earnings: What Key Metrics Have to Say

Financial Performance - Adobe reported $5.41 billion in revenue for the quarter ended August 2024, a 10.6% year-over-year increase [1] - EPS for the quarter was $4.65, compared to $4.09 a year ago [1] - Revenue surpassed the Zacks Consensus Estimate of $5.37 billion by 0.79% [1] - EPS exceeded the consensus estimate of $4.53 by 2.65% [1] Business Unit Metrics - Digital Media - Creative ARR (Annualized Recurring) was $13.45 billion, slightly below the five-analyst average estimate of $13.46 billion [2] - Digital Media - Total Digital Media ARR (Annual) was $16.76 billion, compared to the $16.71 billion average estimate [2] - Digital Media - Document Services ARR (Annual) was $3.31 billion, exceeding the four-analyst average estimate of $3.25 billion [2] Revenue Breakdown - Digital Media revenue was $4 billion, a 11.2% year-over-year increase, slightly above the $3.97 billion average estimate [2] - Publishing and Advertising revenue was $59 million, a 11.9% year-over-year decrease, below the $60.35 million average estimate [2] - Digital Experience revenue was $1.35 billion, a 10.2% year-over-year increase, slightly above the $1.34 billion average estimate [2] - Digital Media - Creative Cloud revenue was $3.19 billion, a 9.6% year-over-year increase, slightly above the $3.18 billion estimate [2] - Digital Media - Document Cloud revenue was $807 million, a 17.8% year-over-year increase, exceeding the $790.70 million estimate [2] - Services and other revenue was $146 million, a 10.4% year-over-year decrease, below the $163.69 million estimate [2] - Products revenue was $82 million, a 14.6% year-over-year decrease, below the $111.98 million estimate [2] - Digital Experience Subscription Revenue was $1.23 billion, a 12.3% year-over-year increase, slightly above the $1.21 billion estimate [2] - Net Revenue - Subscription was $5.18 billion, a 11.9% year-over-year increase, exceeding the $5.09 billion estimate [2] Stock Performance - Adobe shares returned +7.5% over the past month, outperforming the Zacks S&P 500 composite's +4% change [3] - The stock currently has a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]