Cloud software company Adobe is on a roll with another strong earnings report. For the period ended August 30, 2019, Adobe (NASDAQ: ADBE) had a record quarter with $2.83 billion in revenue, representing 24% growth year-over-year. Subscriptions revenue represented $2.5 billion of total revenue (89.8%), product represented $157.3 million (5.6%), and services and support represented $130.2 million (4.6%).

Adobe also reported net income of $792.8 million in net income, or $1.61 diluted earnings per share (GAAP), compared to net income of $666.3 million and $1.34 diluted earnings per share for the same period last year.

Adobes strategy to empower people to create and transform how businesses compete is fueling our continued success. The ability to deliver a personalized relationship with every customer using digital technology is a mandate for every business, said Shantanu Narayen, Adobe chairman, president and CEO, on the Q3 results on a September 17 earnings call.

Customers across every industry continue to rely on Adobe to run their businesses, transform how they work, and bring their creative ideas to life as reflected in our record Q3 results, Narayen said in a statement. Were excited for the opportunities in front of us and confident in our ability to drive strong top-line and bottom-line growth.

Other highlights from the third quarter fiscal year 2019 include the following:

• Digital Media segment revenue was $1.96 billion, representing 22% year-over-year growth.
• Creative revenue was $1.65 billion.
• Document Cloud revenue was $307 million.
• Digital Media Annualized Recurring Revenue (ARR) was $7.86 billion at the end of the quarter, representing a quarter-over-quarter increase of $386 million.
• Creative ARR grew to $6.87 billion.
• Document Cloud ARR grew to $993 million.
• Digital Experience segment revenue was $821 million, an increase of 34% year-over-year.
• GAAP operating income was $854 million.
• Cash flow from operations was $922 million.
• Adobe repurchased approximately 2.6 million shares during the quarter.

­The company offered the following guidance for the fourth quarter of fiscal year 2019:

• Adobe total revenue of approximately $2.97 billion, representing approximately 5% growth quarter-over-quarter
• Digital Media segment revenue with approximately 20% growth year-over-year
• Digital Experience segment revenue with approximately 23% growth year-over-year
• Net new Digital media annualized recurring revenue (ARR) of approximately $450 million
• GAAP earnings per share of approximately $1.68

The day the earnings report was released, Adobe stock was valued at $284.69 per share. It dropped to $279.72 per share on September 18 and has since dropped to $277.91 per share, as of 7:08 a.m. yesterday.

Insider Take:

Despite a stellar quarter, investors are concerned about Adobes projection of only 5% revenue growth between the third and fourth quarters of fiscal year 2019, reports TheStreet. During the earnings call, CFO John Murphy said that subscription bookings for Marketo were lower than expected. There were other delays and shortfalls with the Analytics Cloud the new Adobe Experience Platform. The company will adjust its tactics and get back on track, Murphy said.