uploads///adobe winning strategy

How Will Adobe Benefit from Creative Cloud?

By

Sep. 1 2020, Updated 11:01 a.m. ET

Creative Cloud and subscription are key growth drivers

Earlier in the series, we discussed expected growth in Adobe’s (ADBE) offerings. Its Creative Cloud offering and subscriber growth are expected to be key drivers of Adobe’s growth. Adobe’s Creative Cloud, which includes programs like Acrobat, Photoshop, and Dreamweaver, has thrived, while its smaller experience design software business has struggled. Creative products revenue rose 31% to $4.2 billion. Moreover, the tax overhaul could lead to more cash available to enhance IT spending, which would consequentially benefit Adobe’s digital marketing offerings.

Article continues below advertisement

About four years ago, Adobe transitioned from selling software to an SaaS (software-as-a-service) business model. It also added web analytics and AI (artificial intelligence) to its cloud offerings, and the improved performance of its offerings speak for itself. According to FactSet data, analysts expect creative products revenue of $1.2 billion and experience cloud revenue of $555.8 million.

adobe winning strategypngautocompresscformatandixlibphp

Migration of creative cloud offering

The above presentation by MarketWatch shows that since the company decided to move its Creative Cloud offering to the cloud in late 2013, its stock has risen 370%. Adobe’s stock has been on the rise consistently since then. Last month, on February 23, 2018, the company’s market cap exceeded the $100 billion market cap for the first time.

Advertisement

More From Market Realist

  • BioNano Genomics Saphyr system
    Company & Industry Overviews
    BioNano Genomics (BNGO) Stock Looks Like a Buy, Solid Opportunity
  • Delta aircraft
    Company & Industry Overviews
    Delta Air Lines Updates Mandatory Vaccine Policy, Explained
  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.