© 2015 Adobe Systems Incorporated. All Rights Reserved.
Financial Analyst Briefing March 10, 2015
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Financial Disclaimer
Some of the information discussed today contains forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of the risks and uncertainties, you should review Adobe’s SEC filings, including the annual report on Form 10-K for fiscal year 2014 and the quarterly reports on Form 10-Q filed by the company in 2015. In our presentation, we may discuss non-GAAP financial measures. The GAAP financial measures that correspond to such non-GAAP measures, as well as the reconciliation between the two, are available on our website at http://www.adobe.com/ADBE. Adobe does not undertake an obligation to update forward-looking statements.
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Adobe Strategy Update
Shantanu Narayen | President and Chief Executive Officer
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Changing the World Through Digital Experiences
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Reinvention of Marketing
ART + SCIENCE
© 2015 Adobe Systems Incorporated. All Rights Reserved.
REAL-TIME ENTERPRISE
YOUR PRODUCT IS MARKETING
Adobe Growth Opportunities
Creative Cloud
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Document Services
Marketing Cloud
Adobe Growth Opportunities
Creative Cloud
Document Services
Marketing Cloud
Reimagine creative process
Strong PDF franchise
Explosive category
Desktop + mobile
Desktop + mobile
Market-leading platform
ARPU-enhancing services
Creation, sharing, signing services
Expansion beyond marketing
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Adobe Marketing Cloud Update
Brad Rencher | SVP & GM Digital Marketing |
© 2015 Adobe Systems Incorporated. All Rights Reserved.
@bradrencher
7,000+ Attendees
9 of 10 Internet Retailers
© 2015 Adobe Systems Incorporated. All Rights Reserved.
5 of 5
Leading Media Companies
10 of 10 Commercial Banks
from
44
Countries
5 of 5
Global Auto Manufacturers
76%
of Fortune 50
4 of 5 Top Airlines
Experience is the Brand Title & Image – BR Keynote
© 2015 Adobe Systems Incorporated. All Rights Reserved.
© 2015 Adobe Systems Incorporated. All Rights Reserved.
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Adobe Marketing Cloud
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Adobe Marketing Cloud
TWO NEW SOLUTIONS PRIMETIME
© 2015 Adobe Systems Incorporated. All Rights Reserved.
AUDIENCE MANAGER
Adobe Marketing Cloud
Core Services PROFILES & AUDIENCES COLLABORATION ACTIVATION MOBILE SERVICES EXCHANGE ASSETS ADMINISTRATION
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Partner Announcements
© 2015 Adobe Systems Incorporated. All Rights Reserved.
© 2015 Adobe Systems Incorporated. All Rights Reserved.
$1.2B
>30%
Adobe Marketing Cloud revenue1
Y/Y bookings growth 1
LARGE DEAL MOMENTUM
DIGITAL MARKETING HIGHLIGHTS
SOLUTION ADOPTION
47% 56%
Y/Y increase in customers >$500K in ARR2
Y/Y increase in contracts >$1M3
96
Multi-solution contracts >$500K4
24%
Of >$1M contracts involve multiple solutions4
BIG DATA/CONTENT PLATFORM
1 Based
on FY14 Actuals of customers with ARR >$500K as of end of Q4’13 3Based on FY14 Bookings -- number of deals >$1M 4Based on FY14 Bookings -- number of deals with more than 1 solution 5 % of Analytics server calls from mobile devices as of end of Q4’13 6 Based on FY14 # transactions 2 Number
© 2015 Adobe Systems Incorporated. All Rights Reserved.
25.8B Data transactions on Cyber Monday
40% Of data transactions from mobile devices5
30.4T Annual data transactions6
Industry Leadership Digital Marketing Hub
Web Content Mgt
Lead to Revenue Mgt Platform
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Cross-Channel Campaign Mgt
Multichannel Campaign Mgt ‘14
Mobile App Dev Platforms
Data Mgt Platforms
Enterprise Marketing Software Suites
WCM Digital Customer Experience
Online Testing
Digital CX Delivery Platforms
Web Analytics
Social Media Mgt
Adobe Marketing Cloud
Significant Momentum Market Leadership & Most Complete Cloud Offering Big Market Opportunity
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Creative Cloud Update
David Wadhwani | SVP and GM, Digital Media |
© 2015 Adobe Systems Incorporated. All Rights Reserved.
@dwadhwani
The Power of Momentum: Creating a Tailwind
Subscription Growth 4,000
3,454
Thousands
3,000 2,000 1,000
Results Through
FY2014
0
Creative Cloud Business
Revenue (millions)
$2,500 $2,000
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Digital Media ARR* $1,947
$1,500 $1,000 $500 $0
* Does not reflect currency adjustment
Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14
Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14
Market Trends
Mobile First World
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Design Led Thinking
Sharing Economy
75%
Pace of change is accelerating because of mobile1
Source: 1 Adobe New Creatives Report 2014 2 Adobe © 2015 Adobe Systems Incorporated. All Rights Reserved.
70%
Already building for mobile devices1
50%
Using mobile devices in their creation process1
5M
CC trial users signed up through mobile apps to date2
2.5x
Greater yielded returns for design-centric companies in S&P 5001
Sources: 1 Design Management Institute (2003-2013) 2 Adobe New Creatives Report 3 Adobe © 2015 Adobe Systems Incorporated. All Rights Reserved.
77%
Say creativity and design are becoming more important to business 2
70%
Need to get skilled in more than one creative discipline 2
>50%
Behance members with portfolios across multiple disciplines3
34%
American workforce freelances1
Photos
$67B
$10B
Invested in Sharing Economy2
Style Sheets
Talent
Income per year3
Templates
Sources: 1 “Freelancing in America: A National Survey of the New Workforce.” Independent research firm Edelman Berland. 2 Italian market research firm Market Revolution (part of Futureberry consulting): “Stay Hungry, Stay Updated Report: 2013” 3 Peers, organization that advocates for sharing economy start-ups (as quoted in San Jose Mercury News, December 2014) © 2015 Adobe Systems Incorporated. All Rights Reserved.
Vectors
$4B
Creative marketplace TAM
Videos
Creative Cloud
Mobile
Community
Creative Profile Desktop
Assets
Market
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Broad Canvas for Innovation
Mobile
Community
Creative Profile Desktop
Assets
Market
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Creative Cloud Focus Areas
Mobile
+
Mobile First World Desktop
+
Community © 2015 Adobe Systems Incorporated. All Rights Reserved.
Design Led Innovation AMC Integration
Assets
+
Migrate Creative Suite customers to Creative Cloud
Increase Enterprise ARR through new services
Sharing Economy Market
Increase ARPU through access to marketplace
Creative Cloud Growth
Migration
Migrate CS customers to CC
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Value Expansion
Increase ARPU and Enterprise ARR
Market Expansion
Expand customer base through tiered offerings
MIGRATION: Mobile First World
Mobile
+
Mobile First World Desktop
Migrate Creative Suite customers to Creative Cloud
Desktop Features CC Mobile Apps Creative Profile Extended Desktop Workflows
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Increases Conversion
Increases Retention
VALUE EXPANSION: Design Led Innovation
Assets
+
Design Led Innovation AMC Integration
Increase Enterprise ARR through new services
CCE Managed Service CCE + MC Content Production CCE + MC Content Delivery Content Velocity
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Incremental Enterprise ARR Opportunity
VALUE EXPANSION: Sharing Economy
Community
+
Sharing Economy Market
Increase ARPU through access to marketplace
$4B
Behance for Talent Typekit for Fonts Fotolia for Stock Content One Stop Shop for Creativity Source: Adobe © 2015 Adobe Systems Incorporated. All Rights Reserved.
Incremental Creative Marketplace TAM
93%
Of stock content sellers use Adobe tools1
85%
Of stock content buyers use Adobe tools1
MARKET EXPANSION: Creative Cloud Photography
Price
+
Target Segment
+
Market Expansion Mobile
Expand customer base through tiered offerings
CC Photography Expanding the Market
>50%
Photography has Broad Appeal Approachable Price
CREATIVE CLOUD/
Photography
Seamless Mobile Experience
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Creative Cloud Photography customers have never purchased a CS product
Creative Cloud Summary
Mobile First World
Migration
Migrate CS customers to CC Mobile
Design Led Thinking
Community
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Increase ARPU and Enterprise ARR Assets
Desktop
Sharing Economy
Value Expansion
Creative Profile
Market
Market Expansion Expand customer base through tiered offerings
Q&A
© 2015 Adobe Systems Incorporated. All Rights Reserved.
Financial Analyst Briefing March 10, 2015
© 2015 Adobe Systems Incorporated. All Rights Reserved.
© 2015 Adobe Systems Incorporated. All Rights Reserved.
