Adobe plunges following Q3 results despite hitting record-high revenue

Adobe (NASDAQ:ADBE) plunged 10% during post-market trading Thursday after it released its third quarter fiscal 2024 financial results.

Although its third quarter revenue and earnings per share results surpassed consensus estimates, its fourth quarter outlook fell short of market expectations.

Adobe expects fourth quarter revenue to range from $5.5B to $5.55B, with a mid-point of $5.525B. This was short of the consensus estimate of $5.6B. Adobe forecasts earnings per share to range from $4.63 to $4.68, with the mid-point below the estimate of $4.67.

The company’s third quarter revenue of $5.41B, which was a quarterly record, was more than the consensus estimate of $5.37B. Adjusted earnings per share of $4.65 was also more than the estimate of $4.54.

“Adobe’s record Q3 performance is a testament to our relentless innovation and commitment to delivering value to our customers,” said Adobe CEO Shantanu Narayen.

“In Q3, Adobe delivered cash flows of over $2 billion and exited the quarter with record RPO, demonstrating the power of combining growth with world-class profitability,” said Adobe Chief Financial Officer Dan Durn.

Adobe’s third quarter revenue was 11% more than it was in the same quarter one year prior.

Adobe also announced it had repurchased 5.2M shares during the last quarter. Cash flow from operations was $2.02B and its remaining performance obligations were $18.14B.