Adobe Systems's Digital Media segment to make 68% of $13.0 billion in Adobe Systems's 2020 revenues, but Adobe Systems's Digital Experience segment is key to the company's revenue growth
Digital Media segment expected to be the single-biggest revenue driver with $8.9 billion in revenues (68% of Total Revenues) in 2020Digital Experience will be the fastest-growing segment - adding $1.8 billion over 2017-2020 (32% of $5.7 billion in incremental revenues)
Total Revenue
WHAT IS BIG?
(1) Digital Media : $8.9 billion (68%)
(2) Digital Experience : $3.8 billion (29%)
(3) Publishing : $0.3 billion (2%)
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TOTAL Revenues in 2020: $13.0 billion
WHAT HAS CHANGED?
From 2017-2020
+ Change in Digital Media : $3.9 billion
+ Change in Digital Experience : $1.8 billion
+ Change in Publishing : $0.0 billion
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TOTAL Change 2017-2020 $5.7 billion
+ Adobe Systems's Revenues in 2017 $7.3 billion
= TOTAL Revenues in 2020 $13.0 billion
Below we discuss Adobe Systems's business model, followed by sections that review past performance as well as expectations for Adobe Systems's revenue drivers for 2020 and 2021, along with competitive comparisons with peers Oracle Corp and salesforce.com Inc
Adobe Systems's Business Model
What Does Adobe Offer?
Adobe makes money by selling software for creative content and marketing purposes, with a focus on user experience. The company’s products are offered as subscription and through licenses.
Who Pays?
Adobe's customers ranges across various sectors of companies, Individuals and organisations
What Are The Alternatives?
Adobe competes with Apple, Autodesk, Avid, Corel, Microsoft, Affinity, Quark in its Digital Media and Google, IBM, Oracle, salesforce.com, SAP, SAS, Teradata, Shopify in its Digital Experience segment. In the Publishing segment, the company primarily faces competition from large-scale publishing systems and XML-based publishing companies.
Has 3 Operating Segments:
Digital Media : Segment revenue is derived from the sale of subscriptions to Creative Cloud (Photoshop, Illustrator, Premiere Pro, Lightroom CC, InDesign, Adobe XD etc) and Document Cloud (Adobe Acrobat, Adobe Sign and Adobe Scan).
Digital Experience : Segment revenue is derived from the sale of subscriptions to Adobe Experience Cloud, a cross-channel marketing optimization tool that includes analytics, targeting, campaign management, content delivery and commerce enablement.
Publishing : Segment revenue is derived from the sale of licenses to legacy products such as eLearning, technical document publishing, web conferencing etc to OEMs.