What Has Been Driving Adobe’s Revenues Growth Since 2012?
Adobe (NASDAQ:ADBE) successfully transformed its business from perpetual licensing vendor to a cloud based Software-as-a-Service subscription service over the past three years. As this transformation gained momentum, the number of subscribers for its Creative Cloud (CC) grew, while Average Revenue Per Subscriber (ARPS) declined due to introduction of the de-itemized suite. Furthermore, as the company pursued it strategy to strengthen its marketing software, it added cloud and off line marketing capabilities to its marketing portfolio. This led to over 69% increase in its marketing cloud revenues. However, Adobe’s cloud first strategy had minor negative impact on smaller divisions as the company selectively phased out some of its products. The tables below summarize how the cloud portfolio has impacted Adobe’s revenues since 2012:
ARPS : Average Revenue Per Subscriber
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Have more questions about Adobe? See the links below.
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