Adobe lifted its full-year guidance and said it hit one billion monthly active users, as its profit and revenue rose in the third quarter.

The software company's milestone comes as it increasingly focuses on expanding its "freemium" artificial-intelligence offerings to drive user acquisition and long-term revenue. Freemium monthly active users for the company's creative products crossed 100 million during the quarter, up more than 70% year-over-year.

Still, Adobe has said the shift in its business model could weigh on near-term annualized recurring revenue growth. Some of those headwinds came into focus during the quarter, with executives attributing a slowdown in remaining performance obligation growth and a decline in net new ARR in part to the freemium strategy.

Shares fell 2.3% to $243.08 in after-hours trading.

Adobe also boosted its outlook for the full fiscal year, projecting adjusted earnings between $24.45 and $24.50 a share and revenue between $26.576 billion and $26.626 billion. Total ARR is expected to grow 10.2% year-over-year.

The company previously guided for adjusted earnings between $24.35 and $24.45 and revenue in a range of $26.5 billion to $26.6 billion. Analysts polled by FactSet currently expect full-year adjusted earnings of $24.42 a share on $26.54 billion in revenue.

Adobe's third-quarter profit came in at $1.83 billion, or $4.62 a share, compared with a profit of $1.77 billion, or $4.18 a share, a year earlier.

Stripping out certain one-time items, adjusted earnings were $6.13 a share. Analysts polled by FactSet were expecting $6.08 a share.

Revenue rose 13% to $6.76 billion, beating analyst expectations for $6.69 billion. The bulk came from subscription revenue, which grew to $6.58 billion from $5.79 billion.

The results come amid shakeups at Adobe's top levels. Last week, the company appointed the head of its customer experience unit, Anil Chakravarthy, as its next chief executive, effective Dec. 1. The company is also searching for a new finance chief after its previous CFO, Dan Durn, left to join Marvell Technology in June.

For the current fourth quarter, the company is projecting adjusted earnings between $6.30 and $6.35 a share on revenue between $6.8 billion and $6.85 billion.

Analysts are currently expecting adjusted earnings of $6.31 a share on $6.84 billion in revenue.