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Adobe reported Q3 2021 (ended Sep 3 2021) results with revenue at $3.94 billion, which represents nearly 22% y-o-y growth. Diluted earnings per share were $2.52 on a GAAP basis compared to $1.97 in the same period of the previous year. Cashflows from Operations were recorded at $1.42 billion while remaining performance obligation at the end of the quarter was $12.63 billion, representing 22% y-o-y growth.
The World Health Organization (WHO) declared a global health emergency at the end of January in light of the coronavirus spread. The companies are affected due to forced lockdown across countries and regions due to the coronavirus. Ease of lockdown has happened in certain regions but people are still focusing on essentials and companies on survival which may affect the company. Adobe on the other hand has delivered good results amid the pandemic as there is a shift towards digitalization. Its revenue increased for all 4 quarters of FY 2020 (ended Nov 2020) and earnings beat consensus across all 4 quarters of FY 2020.
The launch of the ability to create real-time customer profiles to deliver personalized experiences is also likely to give a fillip to the company's revenues. Notably, Adobe's ecosystem of partners (especially Microsoft and SAP by way of the open data alliance and more recently tie-up with Amazon) is likely to deepen Adobe's competitive moat further.
Lastly, the launch of the Adobe Experience Platform has given the ability to create a real-time user profile that can help target users across the different channels they use to engage with Adobe.
Considering that the company processes hundreds of trillions of transactions annually, one can only imagine the scale and efficacy of insights that can be generated and how the effectiveness is likely to get further amplified across Adobe's partner ecosystem.
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Although Adobe is commonly known for its widely distributed free Acrobat PDF Reader, the company makes money primarily by serving "creative professionals" with the software used in image manipulation, animation, web design, and the creation of interactive media content. Adobe's Photoshop, Dreamweaver, Flash, and InDesign products are some of the better known creative software suites used by graphic designers, production artists, web designers, photographers, animators, publishers, and writers.