Adobe Inc. shares rose in after-hours trading after the company reported record revenue in its fiscal third-quarter and beat analysts’ predictions.

For the quarter ended Aug. 28, Adobe reported revenue of $3.23 billion, up 14% from a year ago. Adjusted profit per share rose 25%, to $2.57. Analysts had predicted $2.41 per share on revenue of $3.16 billion.

Adobe’s revenue was driven by its digital media segment that delivered the company 19% year-over-year growth, to $2.34 billion. Creative revenue was booked at $1.96 billion, also up 19%, while Document Cloud revenue rose 22%, to $375 million. Digital Media annualized recurring revenue, Adobe’s running annual figure based on this quarter’s revenue, rose 24%, to $458 million.

The COVID-19 pandemic has delivered varying results for companies, but with Adobe, which has had a focus on cloud-based solutions going back over several years, is arguably a net winner from the pandemic as remote working drove demand for cloud-based services.

“Adobe delivered the best Q3 in our history in a challenging macroeconomic environment, demonstrating the global demand for our innovative solutions,” Shantanu Narayen, president and chief executive officer of Adobe, said in a statement. “We are confident that our leadership in the creative, document and customer experience management categories will drive continued momentum in 2020 and beyond.”

Chief Financial Officer John Murphy added that “the resilience of our recurring business model and a strong book of business is driving sustained long-term growth.”

For the fourth quarter, Adobe is predicting an adjusted profit of $2.64 a share on revenue of about $3.35 billion, nearly dead-on with analyst predictions.

Shares in Adobe rose almost 2% in after-hours trading.

Photo: Adobe MAX/Flickr