Adobe 2013 Annual Report Download - page 41

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41
• Net cash flow from operations of $1,151.7 million during fiscal 2013 decreased by $347.9 million, or 23%, as compared
to fiscal 2012 primarily due to lower net income as discussed above. Net cash flow from operations during fiscal 2012
remained stable compared to fiscal 2011.
Revenue (dollars in millions)
Fiscal
2013 Fiscal
2012 Fiscal
2011 % Change
2013-2012 % Change
2012-2011
Product $ 2,470.1 $ 3,342.8 $ 3,416.5 (26)% (2)%
Percentage of total revenue 61% 76% 81%
Subscription 1,137.9 673.2 458.6 69 % 47 %
Percentage of total revenue 28% 15% 11%
Services and support 447.2 387.7 341.2 15 % 14 %
Percentage of total revenue 11% 9% 8%
Total revenue $ 4,055.2 $ 4,403.7 $ 4,216.3 (8)% 4 %
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
certain of our Adobe Marketing Cloud 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 $1,137.9 million, $673.2 million and $458.6 million in
subscription revenue for fiscal 2013, 2012 and 2011, respectively, approximately $663.1 million, $553.2 million and $429.2 million,
respectively, is from our Digital Marketing segment, with the remaining amounts substantially 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 Adobe Marketing Cloud 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 generally recognized ratably over the term of the arrangement.
Segments
In fiscal 2013, 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, chief information officers and chief
revenue officers.
• Print and Publishing—Our Print and Publishing segment addresses market opportunities ranging from the diverse
authoring and publishing needs of technical and business publishing to our legacy type and OEM printing businesses.
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