Adobe has reported revenue of $1.84 billion in the third quarter of fiscal year 2017, marking yet another three months of record growth.

The figure marks a 26% growth over the same period last year and suggests that Adobe’s shift to a cloud-based subscription model has paid off, giving the company a more predictable revenue stream.

Driving the growth was Adobe’s digital media division, which contains Creative Cloud. This division grew 28.3% to $1.27 billion.

Highlights from Adobe’s report include:

  • Adobe achieved record quarterly revenue of $1.84 billion in its third quarter of fiscal year 2017, which represents 26 percent year-over-year revenue growth.
  • Diluted earnings per share was $0.84 on a GAAP-basis, and $1.10 on a non-GAAP basis.
  • Digital Media segment revenue was $1.27 billion, with Creative revenue growing to $1.06 billion.
  • Digital Media Annualized Recurring Revenue (“ARR”) grew to $4.87 billion exiting the quarter, a quarter-over-quarter increase of $308 million.
  • Adobe Experience Cloud achieved revenue of $508 million, which represents 26 percent year-over-year growth.
  • Operating income grew 48 percent and net income grew 55 percent year-over-year on a GAAP-basis; operating income grew 43 percent and net income grew 46 percent year-over-year on a non-GAAP basis.
  • Cash flow from operations was $704 million, and deferred revenue grew to approximately $2.20 billion.
  • The company repurchased approximately 2.1 million shares during the quarter, returning $298 million of cash to stockholders.

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