These earnings results came before Adobe announced it was adding the Firefly image generator to its products.
Adobe’s third-quarter results topped Wall Street estimates and revenue for its Adobe Experience Cloud was a big reason why. Overall, the software company reported adjusted earnings of $ 4.09 per share compared to estimates of $ 3.98. It also reported record revenue of $ 4.89 billion versus expectations of $ 4.87 billion.
Adobe Experience Cloud brought in $ 1.2 billion this quarter, roughly flat compared to the second quarter but up $ 100 million versus 3Q 2022. Total Experience Cloud revenue through the third quarter of 2023 is $ 3.62 billion, which is $ 350 million ahead of the same time last year.
“Customers continue to prioritize investments in CXM solutions despite increased scrutiny of enterprise IT spend,” Anil Chakravarthy, Adobe’s president of Digital Experience Business said in an investor call. “Adobe Journey Optimizer book of business more than doubled year over year as customers increasingly drive omnichannel personalization and engagement.”
Why we care. Businesses appear to be moving more dollars to the areas of digital marketing where they have more direct control — such as customer experience. It is very much worth noting that these earnings results came before Adobe announced it was adding the Firefly image generator to Adobe Creative Cloud, Adobe Express and Adobe Experience Cloud. That will likely mean some very good cheer for fourth-quarter earnings.
The post Adobe Experience Cloud on pace for record earnings appeared first on MarTech.
MarTechAbout the author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.
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