Adobe’s Digital Subscription Revenue up 29% to $864M in Q3

Adobe saw digital subscription revenue up 29 percent, now totaling $864 million as of the third quarter, a company earnings report says.

The company, based in San Jose, California, saw 23 percent year-over-year growth in digital media segment revenue, hitting $2.87 billion.

The company saw revenues of $3.94 billion in its third quarter, which was a 22 percent increase from the previous year.

Cash flows from operations were reportedly sitting at $1.42 billion.

Creative revenue, meanwhile, grew to $2.37 billion and saw 21 percent growth, while document cloud revenue was $493 million and had 31 percent growth.

For digital media annualized recurring revenue, there was a $455 million boost to $11.67 billion.

The report says the digital experience segment revenue came out to $985 million and saw 26 percent growth year-over-year.

“Adobe had another outstanding quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform storytelling, learning and conducting business in a digital-first world,” said Shantanu Narayen, president and CEO of Adobe. “Our talented employees, category-defining innovation and product leadership uniquely position us for continued momentum and success.”

“We drove record revenues and strong profitability in the quarter, demonstrating our ability to succeed in a dynamic environment,” said John Murphy, executive vice president and CFO of Adobe. “Our operational rigor and data-driven insights enable us to execute while we continue to invest across massive market opportunities.”

Last week, Adobe announced it would be rolling out new services for payment on Adobe Commerce, which will be powered by PayPal.

Learn more: Adobe Commerce to Roll Out PayPal-Powered Payment Services

The services will let merchants accept various payment methods including credit or debit cards, PayPal and Venmo.

In addition, the new integration will add Buy Now Pay Later (BNPL) functionality, as BNPL has been growing in popularity and its usage has boosted 88 percent between 2019 and the first half of this year, according to the Adobe Digital Economy Index.

BNPL has been praised as a way for merchants to make more money than they otherwise would have.