Adobe Creative Cloud Subscriptions Fuel Strong 4th Quarter

obrBy Betsy — Last Updated: 19 Dec'15 2015-12-11T22:07:24+00:00

Adobe Systems, the creativity software company, reported strong 4th quarter earnings fueled by subscriptions to its Adobe Creative Cloud plans. The latest financial report lists a quarterly revenue of $1.31 billion dollars, a year-over-year growth of 22%. 

Adobe Creative Cloud

Its Digital Media, which includes the Creative and Document Clouds,  reported a revenue increase of $350 million for an Annualized Recurring Revenue of $2.99 billion exiting the quarter.  The company announced a total revenue of $4.80 billion for 2015, representing a year-over-year growth of 16%.

Moving to Adobe Creative Cloud

A significant factor in the revenue earning is the number of subscribers to the Adobe Creative Cloud  service. The addition of over 833 thousand new subscribers (both individual and teams), brought the total subscriber numbers to over 6 million.  The company has seen both a migration of users from its install base as well as new subscribers to its products.

Adobe Creative Cloud Logo

First introduced in 2011, the Creative Cloud subscription offerings include plans for individuals, businesses, and education.  Plans can be purchased for photography or individual applications.  The full suite of applications is priced at $49.99 per month for individuals and includes 20+ desktop and mobile creativity products, such as:

  • Photoshop image editor
  • Illustrator vector graphics program
  • InDesign page designer for publishing
  • Premiere Pro video editor
  • Dreamweaver web design program
  • Adobe Acrobat Pro DC PDF document and forms program

Plans for business start at $29.99 per month per license for a single app and  $69.99 per month per license for the suite.  Adobe Stock, a database of 45 million photos, videos, and graphics is also available as part of some plans and is integrated into the Adobe Creative Cloud suite.

Adobe Cloud Divisions

Adobe.com lists three cloud divisions within the company: 

  • Creative Cloud – the creativity software section
  • Marketing Cloud – a cross-channel marketing solution
  • Document Cloud – a PDF and online documents service

The Creative ARR was reported at $2.60 billion, and the Marketing revenue at $352 million for the quarter. Shantanu Narayen, president and CEO of Adobe, stated:

“Adobe is driving digital experiences that are fundamental to the transformation of every global brand, government and educational institution,” He said .  “Our record revenue and strong momentum are a reflection of our industry-leading content and data solutions in Digital Media and Digital Marketing.”

The company expects the growth trend to continue into 2016, including the ongoing adoption of the Creative Cloud.  Have you used the Adobe Creative Cloud?

What are thoughts on the suite and the increase in subscribers?

 

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