Adobe’s (ADBE) Digital Media operating segment apart from the Creative Cloud includes a document services business that is built around the Acrobat family of products, including Adobe Reader and a set of integrated cloud-based document services. The below presentations show the services that the Digital Media segment covers.
Adobe Acrobat enables reliable creation and exchange of electronic documents, regardless of platform or application source type. In the last few quarters, revenue from this division has registered a decline, mainly due to the launch of document cloud services that have a subscription fee spread over the period of usage. Adobe’s commercial proprietary Acrobat is available for Microsoft (MSFT) Windows and Apple’s (AAPL) Mac OS X only.
Increased adoption of EchoSign and document cloud services boosts revenues
The strong adoption of online document services like EchoSign, an electronic content management system, and growth in enterprise term licensing agreements (or ETLAs) for Acrobat has led the company to 14% growth in Acrobat ARR (annualized recurring revenue) in 3Q14 over the prior quarter. Adobe didn’t release details of Acrobat’s ARR in its 4Q14 earnings results.
Document services subscription offerings, including EchoSign, create PDF online, and related services helped grow Adobe’s document services’ ARR to $217 million at the end of 3Q14, as compared to $143 million in 4Q13.
Total Digital Media ARR, which is the sum of Creative Cloud ARR and document services ARR, grew to $1.947 billion at the end of the fourth quarter of fiscal 2014, as compared to $944 million at the end of FY 2013.