Adobe 2010 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2010 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

63
Our Knowledge Worker segment achieved 17% growth in fiscal 2010 when compared to fiscal 2009 due to continued
solid demand for our Acrobat product family. We attribute this performance to strength in enterprise licensing of Acrobat
across all geographies as well as the improved economic conditions in certain markets and geographies where we focus on
Acrobat adoption.
We achieved strong growth in fiscal 2010 with our Enterprise segment, which grew 18% when compared to fiscal 2009.
We believe our increased investment in this business over the past several years is beginning to result in improved financial
performance in the segment. Further, we believe the CEM value proposition of our enterprise products is resonating with
industry analysts and customers, including Adobe Connect for efficient Web-conferencing, and Adobe LiveCycle which
makes it easier for people to interact with information from enterprise systems through intuitive user experiences, improve
efficiencies through business process automation, and enhance customer service through personalized communications
management.
In our Omniture business, we maintained strong momentum in fiscal 2010. Driving this success was increased
awareness of our Online Marketing Suite value proposition in the marketplace as well as strong bookings performance. The
number of Omniture user transactions in fiscal 2010 was 5.07 trillion, an increase of 12% when compared to fiscal 2009.
Our Platform business declined slightly in fiscal 2010 as compared with fiscal 2009 primarily due to lower revenue
from OEM relationships.
Our Print and Publishing business segment grew in fiscal 2010 as compared with fiscal 2009 primarily due to a non-
recurring revenue deal as well as the launch of new products, including Adobe eLearning Suite version 2 and Adobe
Captivate version 5.
Revenue (dollars in millions)
Fiscal
2010
Fiscal
2009
Fiscal
2008
% Change
2010-2009
% Change
2009-2008
Product ....................................................
3,159.2
2,684.8
3,354.6
18
%
(20
)%
Percentage of total revenue .................
83
%
91
%
94
%
Subscription ............................................
386.8
74.6
41.9
*
78
%
Percentage of total revenue .................
10
%
3
%
1
%
Services and support ...............................
254.0
186.5
183.4
36
%
2
%
Percentage of total revenue .................
7
%
6
%
5
%
Total revenue ......................................
3,800.0
2,945.9
3,579.9
29
%
(18
)%
_________________________________________
* Percentage is greater than 100%.
Our subscription revenue is comprised primarily of fees we charge for our hosted service offerings including our hosted
online business optimization services. We recognize subscription revenues ratably over the term of agreements with our
customers, beginning on the commencement of the service. Of the $386.8 million and $74.6 million in subscription revenue
for the fiscal years 2010 and 2009, respectively, approximately $309.1 million and $22.2 million, respectively, is from our
Omniture segment with the remaining amounts representing our other business offerings.
Our services and support revenue is comprised of consulting, training and maintenance and support, primarily related to
the licensing of our enterprise, developer and platform products and the sale of our hosted online business optimization
services. Our support revenue also includes technical support and developer support to partners and developer organizations
related to our desktop products. Our maintenance and support offerings which entitle customers to receive product upgrades
and enhancements or technical support, depending on the offering, are recognized ratably over the term of the arrangement.
Segments
In fiscal 2010, we categorized our products into the following segments: Creative Solutions, Knowledge Worker,
Enterprise, Omniture, Platform, and Print and Publishing products.
Effective in the first quarter of fiscal 2010, to better align our marketing efforts and go-to-market strategies, we moved
management responsibility for the Adobe Connect product line from our Knowledge Worker segment to our Enterprise
segment.
• Creative Solutions—Our Creative Solutions segment focuses on delivering a complete professional line of
integrated tools for a full range of creative and developer tasks to an extended set of customers.