Adobe 2012 Annual Report Download - page 61

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61
Revenue (dollars in millions)
Fiscal
2012 Fiscal
2011 Fiscal
2010 % Change
2012-2011 % Change
2011-2010
Product ........................................................................ $ 3,342.8 $ 3,416.5 $ 3,159.2 (2)% 8%
Percentage of total revenue....................................... 76% 81% 83%
Subscription ................................................................ 673.2 458.6 386.8 47 % 19%
Percentage of total revenue....................................... 15% 11% 10%
Services and support ................................................... 387.7 341.2 254.0 14 % 34%
Percentage of total revenue....................................... 9% 8% 7%
Total revenue ............................................................ $ 4,403.7 $ 4,216.3 $ 3,800.0 4 % 11%
As described in Note 18 of our Notes to Consolidated Financial Statements, we have the following segments: Digital Media,
Digital Marketing and Print and Publishing.
Our subscription revenue is comprised primarily of fees we charge for our subscription and hosted service offerings including
our digital marketing services and Creative Cloud. We recognize subscription revenue ratably over the term of agreements with
our customers, beginning on the commencement of the service. We expect our subscription revenue will continue to increase as
a result of our investments in new SaaS and subscription models. We also expect this to increase the amount of recurring revenue
we generate as a percent of our total revenue. Of the $673.2 million, $458.6 million and $386.8 million in subscription revenue
for fiscal years 2012, 2011 and 2010, respectively, approximately $553.2 million, $429.2 million and $375.3 million, respectively,
is from our Digital Marketing segment, with the remaining amounts representing our Digital Media segment 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 digital marketing 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 2012, we categorized our products into the following segments:
• Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, small businesses and
enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include traditional
content creators, web application developers and digital media professionals, as well as their management in marketing
departments and agencies, companies and publishers.
• Digital Marketing—Our Digital Marketing segment provides solutions and services for how digital advertising and
marketing are created, managed, executed, measured and optimized. Our customers include digital marketers,
advertisers, publishers, merchandisers, web analysts, chief marketing officers and chief revenue officers.
• Print and Publishing—Our Print and Publishing segment addresses market opportunities ranging from the diverse
publishing needs of technical and business publishing to our legacy type and OEM printing businesses.
Segment Information (dollars in millions)
Fiscal
2012 Fiscal
2011 Fiscal
2010 % Change
2012-2011 % Change
2011-2010
Digital Media .............................................................. $ 3,128.5 $ 3,088.6 $ 2,834.4 1 % 9 %
Percentage of total revenue....................................... 71% 73% 75%
Digital Marketing........................................................ 1,058.4 909.4 739.4 16 % 23 %
Percentage of total revenue....................................... 24% 22% 19%
Print and Publishing.................................................... 216.8 218.3 226.2 (1)% (3)%
Percentage of total revenue....................................... 5% 5% 6%
Total revenue............................................................... $ 4,403.7 $ 4,216.3 $ 3,800.0 4 % 11 %
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