Adobe in the third quarter of fiscal 2021 increased its net profit by 27% yoy, while the figure exceeded forecasts of experts. The company's revenue jumped to $ 3.94 billion from $ 3.23 billion a year earlier. Net income for the three months ended September 3 was $ 1.21 billion, or $ 2.52 per share, compared to $ 955 million, or $ 1.97 per share, in the comparable period a year earlier. Adjusted Adobe's earnings rose to $ 3.11 per share. The market consensus implied an increase in net income to $ 2.3 per share on revenue of $ 3.89 billion. Management of the company predicted earnings at $ 2.27 per share and revenue of $ 3.88 billion.
Sales of Adobe products rose to $ 119 million from $ 109 million, while revenue from subscribers to Internet services jumped to $ 3.66 billion from $ 2.95 billion. Cash flow from operating activities amounted to a record $ 1.99 billion. Adobe expects adjusted earnings of $ 3.18 per share and revenues of $ 4.07 billion. The market consensus foresees earnings of $ 3.08 per share and revenues of $ 4.04 billion.
The combination of business growth and profitability, market leadership and sustained competitive advantage makes Adobe an attractive stock for a wide range of investors. In the Digital Media segment, business growth has been boosted by the Covid pandemic, as a new corporate trend in digital workflow services has generated strong demand for Document Cloud solutions. On the other hand, Creative Cloud creates a high potential for generating stable demand for long-term subscriptions. Thus, both divisions are long-term drivers for the growth of the company's capitalization.
After transforming the Digital Experience and spinning off the low-margin Ad Cloud, the business segment should have every reason to start performing well. We believe that Adobe's multifaceted product strategy has a unique synergy that, on the one hand, increases the company's competitiveness, and, on the other hand, allows it to maintain high profitability, while maintaining the ability to invest in continuous growth.
Founded in 1982 and based out of San Jose, CA, ADBE is a provider of digital media and marketing solutions that are used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers. Its solutions include: Creative Cloud, which offers tools and cloud-based services for creating and delivering compelling digital media content; Marketing Cloud, which consists of solutions and services for creating, managing, measuring and optimizing digital advertising and marketing campaigns across multiple channels; and Document Cloud, which consists of the Acrobat family of products and electronic document signature Adobe eSign.