Adobe 2014 Annual Report Download - page 42

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42
Revenue (dollars in millions)
Fiscal
2014 Fiscal
2013 Fiscal
2012 % Change
2014-2013 % Change
2013-2012
Product ........................................................................ $ 1,627.8 $ 2,470.1 $ 3,342.8 (34)% (26)%
Percentage of total revenue....................................... 39% 61% 76%
Subscription ................................................................ 2,076.6 1,137.9 673.2 82 % 69 %
Percentage of total revenue....................................... 50% 28% 15%
Services and support ................................................... 442.7 447.2 387.7 (1)% 15 %
Percentage of total revenue....................................... 11% 11% 9%
Total revenue ............................................................ $ 4,147.1 $ 4,055.2 $ 4,403.7 2 % (8)%
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.
We have the following segments—Digital Media, Digital Marketing and Print and Publishing. Subscription revenue by
reportable segment for fiscal 2014, 2013 and 2012 is as follows (dollars in millions):
Fiscal
2014 Fiscal
2013 Fiscal
2012 % Change
2014-2013 % Change
2013-2012
Digital Media.............................................................. $ 1,268.3 $ 471.9 $ 116.8 169% 304%
Digital Marketing........................................................ 797.5 663.1 555.5 20% 19%
Print and Publishing.................................................... 10.8 2.9 0.9 * *
Total subscription revenue........................................ $ 2,076.6 $ 1,137.9 $ 673.2 82% 69%
_________________________________________
(*) Percentage is not meaningful.
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 2014, we categorized our products into the following segments:
• Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, small and medium
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.