We had a very big drop in both-our revenue dropped about 20 percent, and our valuation fell even more.
Adobe creative cloud subscriptions software#
Clark Honors College at the University of Oregonĭan Cohen: When we looked at how other software companies were faring during the recession, we saw that companies with high recurring revenue had smaller declines in their growth rates and valuations. Sits on the advisory board of the Robert D. Serves as a member of the board of MVLA Scholars Head of “Intel Inside” branding program (1999–2002).
Head of product management and product marketing, Mobile Platform Group (2002–05).Head of strategic planning, Ultra Mobility Group (2005–07).Clark Honors College at the University of Oregon Career highlights Holds an MBA from Stanford, an MS in engineering (operations research) from the University of California, Berkeley, and a bachelor’s degree in economics and math from the Robert D. Our recurring revenue for the prior fiscal year was about 5 percent annually. During the downturn in 20, our revenue and stock price suffered more than that of most software companies, because other companies had high recurring revenue. We already had a strong presence in content creation, and we saw an opportunity to broaden our presence in these areas. We also believed that data were going to become more important. Where content was being created and managed, when it was being consumed, and where it was going to be monetized-all of that was changing. Inside the company, we had this fundamental belief that there were broader market opportunities for us. Historically, we had delivered product updates only every 18 or 24 months, but our customers’ content-creation requirements were changing much faster than that, with advances in devices, browsers, mobile apps, and screen sizes. The perpetual-licensing model was also limiting us from delivering new innovations and capabilities to our customers.
We were driving revenue growth by raising our average selling price-either through straight price increases or through moving people up the product The number of units we shipped under the old perpetual-licensing model was about three million units a year, and it remained flat for a long time. For one, even though customers had higher creative demands, our creative business wasn’t really growing. Mark Garrett: There were a number of reasons, both financial and strategic. Has been quoted and featured in top-tier business publications including Bloomberg Businessweek, Wall Street Journal, Barron’s, Reuters, CFO Journal, and Investor Business Daily Is a member of the invitation-only Wall Street Journal CFO Network and CNBC’s Global CFO Council Serves on the board of directors of Informatica Corporation, Model N, the Adobe Foundation, and the Children’s Discovery Museum of San Jose
Holds an MBA from Marist College and bachelor’s degrees in accounting and marketing from Boston University Career highlights McKinsey: What precipitated Adobe’s move to the cloud? In an interview with McKinsey’s Kara Sprague, the company’s chief financial officer, Mark Garrett, and its vice president of business operations and strategy, Dan Cohen, describe how the leadership team got this new digital business model off the ground and the lessons they’ve learned along the way. The number of subscribing customers is more than four million and rising.īut making this wholesale shift hasn’t been easy for a software company born and bred in the desktop-application era. Its stock price has more than tripled, overall revenue growth has climbed from the single digits five years ago to the double digits today, and recurring revenue has climbed from 19 percent in 2011 to 70 percent of total revenue today. In large part because of Adobe’s transition to the cloud, the company has seen its fortunes turn. Rather, customers subscribe to Creative Cloud, the company’s online suite of publishing and design tools, and receive frequent software upgrades as well as a range of new online-only and mobile services. License-where customers pay once and can use the software indefinitely. It no longer offers its publishing and design tools in the form of physical, shrink-wrapped products to be deployed at customers’ sites under a perpetual Over the past five years, Adobe Systems has remade itself as a cloud company.