Last quarter we were searching for answers to what Adobe (Nasdaq: ADBE) was looking to acquire with its $6 billion cash reserve. This quarter it answered that question by making some big acquisitions. But first, the financials.

Adobe’s Financials
Adobe’s third-quarter revenues grew 24% over the year to $2.29 billion, ahead of the market’s projections of $2.25 billion. Net income was $666.3 million, or $1.34 a share, compared with $419.6 million, or $0.84 a share a year ago. Adjusted EPS of $1.73 was also ahead of the Street’s estimated $1.69 per share for the quarter.

By segment, revenues from Digital Media segment came in $1.61 billion with Creative revenue growing to $1.36 billion and Document Cloud growing 21% to $249 million. Digital Media Annualized Recurring Revenue grew to $6.40 billion, growing by nearly $340 million over the previous quarter. Digital Experience segment revenue grew 21% to $614 million with Digital Experience subscription revenue growing 25% over the year.

For the current quarter, Adobe is looking for revenues of $2.42 billion with an EPS of $1.87. The market was looking for revenues of $2.41 billion with an EPS of $1.86.

Adobe’s Acquisitions

Adobe recently made a few big acquisitions. In May this year, it announced the $1.7 billion acquisition of Magento Commerce. Magento’s Commerce Cloud brings digital commerce and order platforms for both physical and digital goods. Its Platform integrates digital commerce, order management, and predictive intelligence into a single commerce platform across a wide range of industries. Its partner ecosystem provides thousands of pre-built extensions, including payment, shipping, tax, and logistics.

The acquisition of the Magento Commerce Cloud will enable Adobe to deliver a seamlessly integrated commerce solution into the Adobe Experience Cloud. It will be able to cater to both B2B and B2C customers globally.

Magento was founded in 2008 and prior to the acquisition had raised $272.5 million in funding from investors including Hillhouse Capital and eBay. Magento’s financial details are not known, but Adobe expects its revenues to be nearly $150 million for the year. The acquisition is expected to help Adobe compete with players like BigCommerce and Shopify.