Adobe reported its third-quarter 2020 results after the markets closed on 15th September 2020. The company had experienced a record second-quarter previously with revenues up 14% and net income up 74% on a year-on-year basis. The third quarter saw the momentum continue with revenues up 14% year-on-year to $3.23 billion while earnings were up 25% from $2.05 per share in Q32019 to $2.57 per share in Q32020.
Document and Creative Cloud the star performers
Adobe’s document cloud segment reported revenue growth of 22% with a jump in revenues from $307 million to $375 million. The creative cloud segment, meanwhile, reported revenue growth of 19% from $1.66 billion to $1.96 billion. Creative Cloud is the segment that includes Adobe’s most well-known software apps like PhotoShop, Illustrator, and Premiere.
Regarding Adobe’s results, chief executive officer Shantanu Narayen said, “People are seeking new ways to communicate, learn and conduct business virtually. Content creation and consumption are exploding in a world where connecting visually has become even more essential.”
He further added, “Creation and consumption across phones, tablets and desktops is exploding. Web content, mobile application creation, imaging, video, animation, screen design, AR and 3D are all surging in this new era of digital storytelling and business transformation.”
Adobe has been among the top-performing software stocks this year. It has gone up 43% since the start of 2020. Compare that with Microsoft, up 28% year-to-date, and Salesforce, up almost 50% since January 2nd, 2020. However, DocuSign beats them all with a staggering growth of 191% in 2020. The top software stocks have clearly been in demand from investors this year. Adobe’s stock closed at $478.98 on 6th October 2020, up 3.65% for the past month and up 5.71X for the past 5 years. Being a growth company, Adobe does not pay any dividends.