Adobe Inc (NASDAQ:ADBE) stock fell 3.21% (As on Sep 22, 11:33:38 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the third quarter of FY 21. Digital Media segment revenue rose 23% to $2.87 billion, as creative revenue rose 21% to $2.37 billion and document cloud revenue was up 31% to $493 million. Digital Experience segment revenue grew 26% to $985 million, with digital experience subscription revenue up 29% to $864 million. Net new Digital Media annualized recurring revenue or ARR was $455 million, and total Digital Media ARR exiting Q3 grew to $11.67 billion. Further, Q3 Document Cloud highlights include continued adoption of Adobe Sign in Acrobat with transactions growing over 10x in the last three years, growth across Acrobat web and frictionless PDF, which optimize the customer journey and capture organic search-driven demand, increased adoption and usage of mobile applications including Acrobat, Scan and Sign, with over 100 million monthly active users, proliferation of Liquid Mode, an adaptive and responsive mobile experience, with over 300 million PDF files reflowed in the last year, key customer wins at Daimler AG, FujiFilm, Micron and PwC.

ADBE in the third quarter of FY 21 has reported the adjusted earnings per share of $3.11, beating the analysts’ estimates for the adjusted earnings per share of $3.01, according to analysts polled by Thomson Reuters. The company had reported the adjusted revenue growth of 22 percent to $3.94 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of $3.89 billion.
For the fourth quarter, Adobe expects revenues to be of about $4.07 billion and adjusted earnings to be of around $3.18 per share. The analysts currently estimate earnings of $3.08 per share and revenues of $4.04 billion.
The combination of the leading video editing offerings, including Photoshop, Premiere Pro and After Effects with Frame.io’s cloud-based review and approval functionality is expected to radically accelerate the creative process and deliver an end-to-end video platform. The addition of Frame.io creates an opportunity for Adobe, in conjunction with the partner ecosystem, to expand beyond video editors to a broader set of customers, teams and enterprises. The company plans to close the Frame.io transaction in Q4 and looking forward to welcoming the team to Adobe.
Additionally, the ending cash and short-term investment position exiting Q3 was $6.16 billion. The company had repurchased approximately 1.7 million shares in the quarter at a cost of $1 billion. The company currently has $14.1 billion remaining of the $15 billion authority granted in December 2020, which goes through 2024.