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Aug 28, 2020
Adobe Q3 2020 Earnings Report
Adobe achieved record quarterly revenue driven by growth in Digital Media and Digital Experience segments.
Key Takeaways
Adobe reported record revenue of $3.23 billion for Q3 2020, representing 14% year-over-year growth. The company's Digital Media segment saw substantial growth, and operating cash flows reached $1.44 billion.
Adobe achieved record quarterly revenue of $3.23 billion, a 14% increase year-over-year.
Digital Media segment revenue was $2.34 billion, representing 19% year-over-year growth, with Creative revenue at $1.96 billion and Document Cloud revenue at $375 million.
Digital Media ARR increased $458 million quarter-over-quarter to $9.63 billion.
Cash flows from operations were a record $1.44 billion.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com Forward Guidance
Adobe provided fourth quarter financial targets, factoring current macroeconomic conditions and typical year-end seasonal strength.
Positive Outlook
- Total revenue ~$3.35 billion
- Digital Media segment revenue~18 percent year-over-year growth
- Digital media annualized recurring revenue (ARR)~$540 million of net new ARR
- Digital Experience subscription revenue~1 percent year-over-year growth
- Non-GAAP diluted net income per share~$2.64
Challenges Ahead
- Digital Experience segment revenue~ Flat year-over-year
- Tax rate GAAP: ~(90) percent
- Share count ~485 million shares
- Earnings per share GAAP: ~$4.29
- Digital Experience subscription revenue (including Advertising Cloud) is expected to grow only 1% year-over-year
Revenue & Expenses
Visualization of income flow from segment revenue to net income