The above graph represents Adobe quarterly revenue by type – Subscription, Product, and Services & Support – starting from fiscal Q1 2002 to the recent quarter. Adobe quarterly revenue hit an all-time high of $3,091 million in fiscal Q1 2020, globally. The growth was primarily driven by subscription services revenue.
|Source||Adobe Quarterly Reports, Sec Filings|
|Note||Adobe fiscal year starts from December 1st|
Adobe’s quarterly revenue is divided into three categories: Subscription, Product, and Services and support. Adobe subscription revenue is comprised of the fees the company charge for the subscription and hosted service offerings, including Creative Cloud, Adobe Experience Cloud and Document Cloud services. While Adobe Services and Support revenue is comprised of consulting, training, and maintenance and support, which is related to licensing of the company’s enterprise products.
Adobe Subscription Revenue
The subscription revenue has continuously been increasing since fiscal Q3 2010. Adobe’s revenue from Subscription in fiscal Q1 2020 increased a strong 22.56% YoY to $2,825 million ($2.8 billion) – the highest till date. Interestingly, Adobe’s Subscription business accounted for a whopping 91.39% of the company’s total revenue for Q1 2020.
In fiscal Q1 2016, Adobe Subscription revenue crossed $1 billion in revenue, which increased to $2 billion in revenue in fiscal Q3 2018.
Adobe Product Revenue
As observed from the graph, the revenue contribution has plummeted considerably from Q4 2013. After this, the revenue generated from the subscription segment gained dominance over the quarters. Surprisingly, in Q1 2020, Adobe’s Product revenue declined to an all-time low. The company reported a notable decline of 16.2% YoY and 14.4% QoQ in its products revenue, amounting to $143 million. The contribution of this segment to the company’s overall revenue has declined from a whopping 92.8% in fiscal Q1 2009 to just 4.63% in fiscal Q1 2020.
Adobe Services and Support Revenue
Adobe’s revenue from Services and support in fiscal Q1 2020 clocked $123 million, representing 3.98% of the company’s total revenue. The company recorded a notable 10.88% QoQ and 1.93% YoY decline in its Services and support revenue during the first quarter.
About Adobe Inc.
Adobe Inc. (NASDAQ: ADBE) (formerly known as Adobe Systems Incorporated ) is an American multinational computer software company. Adobe was founded in December 1982 by Charles Geschke and John Warnock.
Prior to co-founding Adobe, Charles Geschke and John Warnock were working at Xerox‘s Palo Alto Research Center (PARC). At PARC, Geschke and Warnock, together invented a page description language (PDL), which provided a means to describe complex forms like typefaces electronically – called Interpress. They tried almost for two years to convince Xerox management to turn Interpress into a commercial product but failed. Later, they both left Xerox and co-found Adobe Systems.
Adobe was originally incorporated in California in October 1983 and later in May 1997, it was reincorporated in Delaware.
On August 20, 1986, Adobe went for Initial public offering, at a split-adjusted share price of US$.17. It was the first time in 1999 when Adobe’s annual revenue crossed $1 billion mark.
On October 3, 2018, Adobe officially changed its name from Adobe Systems Incorporated to Adobe Inc. The company’s business is organized into three reportable segments: Digital Media, Digital Experience, and Publishing.
Here are some interesting facts about Adobe.