Adobe Systems Incorporated at a Glance

Uppers

  • Innovative software company that creates excellent products
  • Commitment to diversity, environmentalism and corporate ethics

Downers

  • High turnover, especially after acquisitions
  • Can be difficult to get recognition or earn promotions

The Bottom Line

  • Adobe is a creative software company that has ridden the wave of digital media over the last several decades. It's growing, evolving and always in the process of creating the next new thing.

About Adobe Systems Incorporated

Adobe Systems is the house that desktop publishing software built, and now it helps customers create, distribute, and manage digital content from the cloud. One of the top publishing software providers, it has been known for brands such as Acrobat, Photoshop, Flash, and Dreamweaver. Adobe serves customers such as content creators and web application developers with its digital media products, and marketers, advertisers, publishers, and others with its digital marketing business. A long-time publisher of traditional software packages, Adobe is moving its products to cloud-based versions. Subscriptions account for about 80% of revenue.

Operations

Adobe's Digital Media segment (about 70% of revenue) includes products such as Flash, Photoshop, and Illustrator. Its Digital Marketing segment (30% of revenue) includes a host of tools for creating, managing, and measuring digital advertising and marketing initiatives. Digital Marketing became Digital Experience in 2018. The Print and Publishing unit (less than 5% of revenue) includes authoring and publishing software and tools.

Geographic Reach

The US is Adobe's largest market, representing more than 50% of revenue; other North American countries contribute about 5%. The EMEA (Europe, Middle East, and Africa) region generates nearly 30% of revenue and the Asia-Pacific region, led by Japan, contributes about 15%.

Headquartered in San Jose, California, Adobe has field offices in about 35 countries across the Americas, Asia, and Europe.

Sales and Marketing

Adobe sells directly and through distributors, resellers, systems integrators, and retailers. In addition, it licenses its technology to hardware manufacturers for integration into their products.

Financial Performance

Adobe Systems has posted steadily increasing revenue and profit in recent years, propelled by the digital offerings.

Revenue jumped 25% to $7.3 billion in 2017 on higher sales in Digital Media, driven by demand for its creative offerings (up about 30%), and in Digital Experience, fueled by a 25% increase in Adobe Marketing Cloud revenue from rising adoption of Adobe Experience Manager.

An 33% increase in subscription revenue across Adobe's offerings lifted net income to about $1.7 billion in 2017, a 45% rise from 2016.

Cash on hand rose to $2.3 billion in 2017 from about $1 billion in 2016 .

Strategy

Adobe Systems' charge into the cloud and a subscription-based business model has paid off for the company. It has reported rising revenue and net income for the past three years and driven its profit margin to about 23% in 2017 from about 6% in 2014.

Just about every product in Adobe's stock has the word cloud in it. The company has added digital marketing applications and services to its digital media offerings, which has raised subscriptions to account for about 85% of revenue from about 75% of revenue in 2016. Its applications also are made to use and view on mobile devices.

The Adobe Experience Manager (AEM) product, which helps customers organize, create, and manage the delivery of creative assets and other content across digital marketing channels, has been a hit with customers, according to the company. Increasing adoption of AEM was one of the drivers of the company's 2017 revenue increase.

Mergers and Acquisitions

In 2017 Adobe Systems bought the SkyBox technology assets from Mettle, a developer 360-degree and virtual reality software. The Skybox tools are designed for post-production in Adobe Premiere Pro CC and Adobe After Effects CC and complement Adobe Creative Cloud's 360/VR cinematic production technology. Adobe integrated SkyBox plugin functionality into subsequent releases of Premiere Pro and After Effects.

In 2016 Adobe bought TubeMogul for $540 million. With TubeMogul on board, Adobe could offer more video marketing options to its customers.

In May 2016 Adobe acquired Livefyre, a privately-held content curation and audience engagement company. Livefyre will be part of Adobe Experience Manager and integrated across Adobe Marketing Cloud to make user-generated content available across all digital marketing solutions.

To further expand its product offerings, in 2014 Adobe purchased the privately-held, stock-photography website company Fotolia for roughly $800 million. The acquisition will allow Adobe to obtain a market exchange with over 34 million stock images and videos and sell them to its Creative Cloud customers on one cloud-based software platform.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

Adobe Systems Incorporated

345 Park Ave
San Jose, CA 95110-2704
Phone: 1 (408) 536-6000
Fax: 1 (408) 537-6000

Stats

  • Employer Type: Public
  • Stock Symbol: ADBE
  • Stock Exchange: NASDAQ
  • Chairman, President and CEO: Shantanu Narayen
  • Chairman, President and CEO: Shantanu Narayen
  • EVP Worldwide Field Operations: Matthew A. Thompson
  • 2016 Employees: 15,706

Major Office Locations

  • San Jose, CA

Other Locations

  • San Francisco, CA
  • Coral Gables, FL
  • Newton, MA
  • Annapolis, MD
  • Arden Hills, MN
  • New York, NY
  • Dallas, TX
  • Lehi, UT
  • Mc Lean, VA
  • Seattle, WA
  • Etobicoke, Canada
  • Ottawa, Canada
  • Vancouver, Canada
  • Bengaluru, India
  • Mumbai, India
  • New Delhi, India
  • Noida, India
  • Oslo, Norway
  • Singapore, Singapore
- Show Less + Show More