Adobe reports record revenue for its third quarter

Adobe has reported financial results for its third quarter fiscal year 2015 that ended on August 28. Adobe achieved record quarterly revenue of $1.22 billion, representing year-over-year growth of 21%. Digital Media Annualized Recurring Revenue (ARR) grew to $2.65 billion exiting the quarter, driven by strong sequential growth in Creative ARR of $262 million, the company said. Adobe’s Marketing Cloud achieved record revenues of $368 million, representing year-over-year growth of 27%
Year-over-year, operating income grew 232% and net income grew 290% on a GAAP-basis, while operating income grew 90% and net income grew 96% on a non-GAAP basis. Cash flow from operations was $360 million, and deferred revenue grew to a record $1.31 billion. The company also re-purchased about 1.6 million shares during the quarter, returning $132 million in cash to stockholders.

“Our execution and momentum continued in Q3, resulting in record quarterly revenue with outstanding profit and earnings growth,” said Shantanu Narayen, Adobe President and CEO. “Content and data are the currency of business today. Adobe’s industry-leading Creative Cloud, Adobe Document Cloud and Adobe Marketing Cloud solutions let customers deliver more valuable, personalized experiences that drive greater business impact,” he added.
“Our record Q3 financial results set us up for a strong fiscal 2015,” said Mark Garrett, Adobe Executive VP and CFO. “Our recurring revenue reached 73% of total revenue, providing a strong foundation for long-term growth.”