Executive Summary

• Adobe reported record 3Q19 revenues of $2.83 billion, up 23.7% year over year and in line with the consensus estimate of $2.82 billion. Adjusted EPS was $2.05, up 18.4% year over year and beating the consensus estimate of $1.97.
• Digital Experience revenue was $821 million, up 34% year over year, which includes Magento and Marketo. The integration of Adobe Experience Manager with Magento Commerce has led to strong performance in the integrated content and commerce offering, and Magento Commerce bookings grew more than 40% in the quarter.
• 4Q revenue guidance of $2.97 billion was slightly below the $3.02 billion consensus estimate and adjusted EPS guidance of $2.25 was also below the $2.30 consensus estimate.