(MENAFN- Baystreet.ca) Adobe Inc (NASDAQ:ADBE) reported better-than-expected earnings for its third quarter, but issued weak fourth-quarter guidance.
The San Jose-based company revealed it had achieved record quarterly revenue of $2.83 billion in its third quarter of fiscal year 2019, which represents 24% year-over-year growth. Diluted earnings per share was $1.61 on a GAAP-basis, and $2.05 on a non-GAAP basis.
Digital Media segment revenue was $1.96 billion, which represents 22% year-over-year growth. Creative revenue grew to $1.65 billion and Document Cloud achieved revenue of $307 million. Digital Media Annualized Recurring Revenue ('ARR') grew to $7.86 billion exiting the quarter, a quarter-over-quarter increase of $386 million. Creative ARR grew to $6.87 billion, and Document Cloud ARR grew to $993 million.
Adobe's Digital Experience segment revenue registered at $821 million, representing 34% year-over-year growth.
GAAP operating income in the third quarter was $854 million, and non-GAAP operating income was $1.15 billion. GAAP net income was $793 million, and non-GAAP net income was $1.01 billion.Cash flow from operations was $922 million.
Moreover, Adobe repurchased approximately 2.6 million shares during the quarter.
To quote CEO Shantanu Narayen, "Customers across every industry continue to rely on Adobe to run their businesses, transform how they work, and bring their creative ideas to life as reflected in our record Q3 results.
"We're excited for the opportunities in front of us and confident in our ability to drive strong top-line and bottom-line growth."
Shares tumbled $9.27, or 3.3%, to $275.42
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