Adobe Slumps on Q3 Numbers

Adobe Inc (NASDAQ:ADBE) shares dropped Wednesday, on reporting upbeat results for its third quarter on Tuesday.

The San Jose-based company reported record quarterly revenue of $3.23 billion in its third quarter of fiscal year 2020, which represents 14% year-over-year growth. Diluted earnings per share was $1.97 on a GAAP basis, representing 22% year-over-year growth, and $2.57 on a non-GAAP basis, representing 25% year-over-year growth.

Digital Media segment revenue was $2.34 billion, which represents 19% year-over-year growth. Creative revenue grew to $1.96 billion, representing 19% year-over-year growth. Document Cloud revenue was $375 million, representing 22% year-over-year growth.

GAAP operating income in the third quarter was $1.07 billion, and non-GAAP operating income was $1.40 billion. GAAP net income was $955 million, and non-GAAP net income was $1.25 billion.

Cash flows from operations proved a record $1.44 billion.

Adobe repurchased approximately 1.5 million shares during the quarter.

Said CEO Shantanu Narayen, "Adobe delivered the best Q3 in our history in a challenging macroeconomic environment, demonstrating the global demand for our innovative solutions.

"We are confident that our leadership in the creative, document and customer experience management categories will drive continued momentum in 2020 and beyond."

Fourth-quarter financial targets include revenue coming in at $3.35 billion, and earnings per share are projected around $4.29.
ADBE shares slid $4.25 to $493.42.