INSUBCONTINENT EXCLUSIVE:
Yesterday, Adobe submitted its quarterly earnings report — and the results were quite good
The company generated a tad under $3 billion for the quarter, at $2.99 billion, and reported that revenue exceeded $11 billion for FY 2019,
its highest-ever mark.
&Fiscal 2019 was a phenomenal year for Adobe as we exceeded $11 billion in revenue, a significant milestone for the
Our record revenue and EPS performance in 2019 makes us one of the largest, most diversified, and profitable software companies in the world
Total Adobe revenue was $11.17 billion in FY 2019, which represents 24% annual growth,& Adobe CEO Shantanu Narayen told analysts and
reporters in his company post-earnings call.
Adobe made a couple of key M-A moves this year that appear to be paying off, including nabbing
Magento in May for $1.7 billion and Marketo in September for $4.75 billion
Both companies fit inside its &Digital Experience& revenue bucket
In its most recent quarter, Adobe Digital Experience segment generated $859 million in revenue, compared with $821 million in the
sequentially previous quarter.
Adobe gets its company, snaring Marketo for $4.75 billion
Obviously buying two significant companies this
year helped push those numbers, something CFO John Murphy acknowledged in the call:
Key Q4 highlights include strong year-over-year growth
in our Content and Commerce solutions led by Adobe Experience Manager and success with cross-selling and up-selling Magento; Adoption of
Adobe Experience Platform, Audience Manager and Real-Time CDP in our Data - Insights solutions; and momentum in our Marketo business,
including in the mid-market segment, which helped fuel growth in our Customer Journey Management solutions.
All of that added up to growth
across the Digital Experience category.
But Adobe didn&t simply buy its way to new market share
The company also continued to build a suite of products in-house to help grow new revenue from the enterprise side of its business.
&We&re
rapidly evolving our CXM product strategy to deliver generational technology platforms, launch innovative new services and introduce
enhancements to our market-leading applications
Adobe Experience Platform is the industry first purpose-built CXM platform
With real-time customer profiles, continuous intelligence and an open and extensible architecture, Adobe Experience Platform makes
delivering personalized customer experiences at scale a reality,& Narayan said.
Of course, the enterprise is just part of it
Adobe creative tools remain its bread and butter, with the creative tools accounting for $1.74 billion in revenue and Document Cloud adding
another $339 million this quarter.
The company is talking confidently about 2020, as its recent acquisitions mature and become a bigger part
of the company digital experience offerings
But Narayan feels good about the performance this year in digital experience: &When I take a step back and look at what happened during the
year, I feel really good about the amount of innovation that happening
And the second thing I feel really good about is the alignment across Magento, Marketo and just call it the core DX business in terms of
having a more unified and aligned go-to-market, which has not only helped our results, but it also helped the operating expense associated
with that business,& he said.
It is no small feat for any software company to surpass $11 billion in trailing revenue
Consider that Adobe, which was founded in 1982, goes back to the earliest days of desktop PC software in the 1980s
Yet it has managed to transform into a massive cloud services company over the last five years under Narayan leadership.
Adobe could be the
next $10 billion software company
