Adobe Inc (NASDAQ:ADBE) stock fell 9.28% (As on September 13, 11:31:43 AM UTC-4, Source: Google Finance) after the company delivered an outlook that failed to quell investor impatience for new artificial intelligence tools to start generating cash. For a second consecutive quarter, Adobe’s document-processing software significantly beat estimates. That unit added $163 million of new annually recurring business in the quarter, compared with the $132 million expected by analysts. Wadhwani touted a 70% increase in use of AI within Document Cloud. Digital Media segment revenue was $4.00 billion, which represents 11 percent year-over-year growth or 12 percent in constant currency. Document Cloud revenue was $807 million, representing 18 percent year-over-year growth as reported and in constant currency. Creative revenue grew to $3.19 billion, representing 10 percent year-over-year growth or 11 percent in constant currency. Net new Digital Media Annualized Recurring Revenue (“ARR”) was $504 million, exiting the quarter with Digital Media ARR of $16.76 billion. Document Cloud ARR grew to $3.31 billion and Creative ARR grew to $13.45 billion. Digital Experience segment revenue was $1.35 billion, representing 10 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.23 billion, representing 12 percent year-over-year growth as reported and in constant currency.

ADBE in the third quarter of FY 24 has reported the adjusted earnings per share of $4.65, beating the analysts’ estimates for the adjusted earnings per share of $4.53. The company had reported the adjusted revenue growth of 11 percent to $5.41 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $5.37 billion, according to data compiled by Bloomberg. The company delivered non-GAAP operating income was $2.52 billion and non-GAAP net income was $2.08 billion. Cash flows from operations were $2.02 billion. Remaining Performance Obligations (“RPO”) exiting the quarter were $18.14 billion. Adobe repurchased approximately 5.2 million shares during the quarter. The ending cash and short-term investment position at the end of Q3 was $7.52 billion.

The digital media net new annual recurring revenue is expected to be $550 million in the period ending in November, the company said. Analysts, on average, had estimated $561.1 million. Total revenue will be as much as $5.55 billion in the period, compared with analysts’ average estimate of $5.6 billion.

The company guided Q4 earnings to be in the range of $4.63 to $4.68, or $4.66 at the midpoint, missing consensus estimates of $4.67 a share.