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Subscription business model December 13, 2013
Adobe stock climbed 10 percent to just under $60 in opening trading after announcing Q4 earnings in line with expectations, and strong growth in subscriptions as the company transitions away from one-time purchase licences.
While year-on-year numbers were poor, revenue down almost 10 percent and earnings almost halved, Adobe has been at pains to point out this was expected as it shifted to subscription-based sales.
As Adobe customers migrate from a legacy Creative Suite perpetual licensing model to new Creative Cloud subscriptions, revenue is recognized over time as opposed to at the time of purchase.
See below for a cool infographic of Adobe by the numbers … expand full story
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