Adobe Q3 Profit Beats Views

reported better-than-expected earnings for its fiscal third quarter on Thursday. The San Jose, California-based company posted quarterly net income of $174.5 million, or $0.34 per share, compared to $44.7 million, or $0.09 per share, in the year-ago quarter. Excluding items, Adobe's earnings came in at $0.54 per share. Its quarterly revenue climbed 21 percent year-over-year to $1.22 billion. However, analysts were expecting earnings of $0.50 per share on revenue of $1.22 billion. The average estimate among 37 Estimize users was for earnings of $0.51 per share and revenue of $1.22 billion. Adobe Marketing Cloud revenue rose 27 percent to $368 million. Its operating income surged 232 percent year-over-year on a GAAP-basis, while operating income gained 90 percent year-over-year on a non-GAAP basis. Deferred revenue surged to a record $1.31 billion during the latest quarter. Adobe repurchased around 1.6 million shares during the quarter. "Our record Q3 financial results set us up for a strong fiscal 2015," said Mark Garrett, Adobe executive vice president and chief financial officer. "Our recurring revenue has reached 73 percent of total revenue, providing a strong foundation for long-term growth." Adobe expects Q4 earnings of $0.56 to $0.62 per share, on revenue of $1.275 billion to $1.325 billion. Analysts projected earnings of $0.64 per share on revenue of $1.36 billion. The company also reported a number of organizational changes to its executive leadership team. The company's Senior Vice President David Wadhwani will leave Adobe for a CEO opportunity Adobe shares gained 2.14 percent to $82.03 in the after-hours trading session.