Adobe’s strategic moves are yielding results
As mentioned in the earlier part of the series, Adobe (ADBE) acquired Fotolia to strengthen its foothold in the stock content market. This space is critical for the creative clients, and Adobe management claims it’s a fast-growing multibillion dollar market. The company’s Creative Cloud (or CC) subscription has also shown very positive growth.
Adobe’s growth plan
Adobe outlined a three-year growth plan, starting in 2014, for its business. According to Mark Garrett, Adobe’s chief financial officer, “2014 was a pivotal year for Adobe as the company completed its business model transition.”
Adobe expects 5.9 million subscribers for Creative Cloud by the end of 2015, up from 3.5 million in 4Q14. The presentation graphic below shows the diverse products under Adobe’s Creative Cloud offerings.
Adobe also expects its Fotolia acquisition to play an important role in the company’s transition from traditional software licensing to a subscription business.
Varied services to cater to the creative market
Adobe is trying to push its presence in the services space through Omniture tools, which lets publishers and marketers track website usage. Adobe’s document management options for Acrobat that run on Microsoft (MSFT) Windows, Apple (AAPL) iOS, and the Behance social network allow users to share, discover, and promote creative work.
Adobe expects consolidated revenue to be ~$4.85 billion in fiscal 2015, a 17% increase from $4.15 billion in fiscal 2014.