Adobe reports massive increase in revenue and profits on the back of moving to the cloud.
First, let’s have a look at the numbers. Adobe reported a record $1.31 billion in revenue for the quarter, a 22 percent year over year increase. It disclosed record annual revenue of $4.8 billion. Mind you these are significant, but the big number to me is that recurring revenue from subscriptions now represents 74 percent of Adobe’s business. What’s more, just under $3 billion in revenue in 2015 came from digital media-related annual recurring revenue (ARR).
In fact, the company added $350 Million in recurring revenue in the fourth quarter alone. Adobe reports that this growth was driven by increasing enterprise adoption and the addition of 833,000 new individual and team Creative Cloud subscriptions.
Adobe charges substantially more (50% ?) for Creative Cloud subscriptions. Customers are finding that its not cheaper in the cloud. In this case, it is much more expensive.