The above graph represents Adobe product revenue by quarter, starting from fiscal Q1 2002 to the recently completed quarter. Adobe revenue from products declined a notable 16.16% YoY in fiscal Q1 2020, to just $143 million. Surprisingly, this was the lowest products revenue the company reported in the last 73 quarters. The share of Adobe products revenue also declined drastically in the last 10 years, from 81.98% in Q1 2010 to just 4.63% in Q1 2020.
Share of Adobe Revenue from Products: History
|Source||Adobe Quarterly Reports, Sec Filings|
|Note||Adobe fiscal year starts from December 1st|
The company’s product revenue is primarily comprised of revenue from distinct on-premise software licenses recognized at a point in time and certain of OEM and royalty agreements.
As the graph shows, the contribution of Adobe products revenue to the company’s overall quarterly revenue has consistently been declining since fiscal Q1 2002. From Q1 2009, the share of products revenue started declining drastically, due to the increasing share of Adobe’s subscription revenue.
In fiscal Q1 2006, Adobe quarterly revenue from products clocked $636.83 million, representing 97.15% of the company’s total revenue. In just three years, the share of products revenue declined to 92.8% in fiscal Q1 2009, totalling $729.86 million in revenue.
One must note that in fiscal Q4 2011, Adobe reported its highest-ever quarterly revenue from products i.e. $931.9 million – representing 80.9% of the company’s total revenue.
Surprisingly, in fiscal Q2 2017, the share of Adobe’s product revenue declined to 9.68%.
About Adobe Inc.
Adobe Inc. (NASDAQ: ADBE) (formerly known as Adobe Systems Incorporated ) is an American multinational computer software company. Adobe was founded in December 1982 by Charles Geschke and John Warnock.
Prior to co-founding Adobe, Charles Geschke and John Warnock were working at Xerox‘s Palo Alto Research Center (PARC). At PARC, Geschke and Warnock, together invented a page description language (PDL), which provided a means to describe complex forms like typefaces electronically – called Interpress. They tried almost for two years to convince Xerox management to turn Interpress into a commercial product but failed. Later, they both left Xerox and co-found Adobe Systems.
Adobe was originally incorporated in California in October 1983 and later in May 1997, it was reincorporated in Delaware.
On August 20, 1986, Adobe went for Initial public offering, at a split-adjusted share price of US$.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.
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