Adobe Systems (NASDAQ: ADBE) reported Q3 EPS of $0.28, $0.02 better than the analyst estimate of $0.26. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $1.01 billion.

• Adobe exited Q3 with 2 million 810 thousand paid Creative Cloud subscriptions, an increase of 502 thousand when compared to the number of subscriptions as of the end of Q2 fiscal year 2014.
• Creative Annualized Recurring Revenue (“ARR”) grew to $1.40 billion, and total Digital Media ARR grew to $1.62 billion.

Executive Quotes

“Adoption of Creative Cloud and Adobe Marketing Cloud continues to accelerate,” said Shantanu Narayen, president and chief executive officer, Adobe. “We are the leader in both of these high-growth categories and have a rapidly growing pipeline, setting us up for a strong finish to the year in Q4.”

“In Q3, 63 percent of our revenue was recurring, demonstrating the continued success of our business model transformation,” said Mark Garrett, executive vice president and chief financial officer, Adobe. “In addition to momentum with Creative Cloud adoption, our team drove strong bookings growth with Adobe Marketing Cloud.”

Guidance

Adobe sees Q4 revs of $1.025 to $1.075 billion and EPS of $0.26 to $0.32, with the consensus at revenue of $1.09 billion and EPS of $0.31.

For earnings history and earnings-related data on Adobe Systems (ADBE) click here.