Adobe’s third-quarter results topped Wall Street estimates and revenue for its Adobe Experience Cloud was a big reason why. Overall, the software company reported adjusted earnings of $4.09 per share compared to estimates of $3.98. It also reported record revenue of $4.89 billion versus expectations of $4.87 billion.
Adobe Experience Cloud brought in $1.2 billion this quarter, roughly flat compared to the second quarter but up $100 million versus 3Q 2022. Total Experience Cloud revenue through the third quarter of 2023 is $3.62 billion, which is $350 million ahead of the same time last year.
“Customers continue to prioritize investments in CXM solutions despite increased scrutiny of enterprise IT spend,” Anil Chakravarthy, Adobe’s president of Digital Experience Business said in an investor call. “Adobe Journey Optimizer book of business more than doubled year over year as customers increasingly drive omnichannel personalization and engagement.”
Why we care. Businesses appear to be moving more dollars to the areas of digital marketing where they have more direct control — such as customer experience. It is very much worth noting that these earnings results came before Adobe announced it was adding the Firefly image generator to Adobe Creative Cloud, Adobe Express and Adobe Experience Cloud. That will likely mean some very good cheer for fourth-quarter earnings.
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