Adobe 2014 Annual Report Download - page 43

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43
Segment Information (dollars in millions)
Fiscal
2014 Fiscal
2013 Fiscal
2012 % Change
2014-2013 % Change
2013-2012
Digital Media .............................................................. $ 2,603.2 $ 2,625.9 $ 3,101.9 (1)% (15)%
Percentage of total revenue....................................... 63% 65% 70%
Digital Marketing........................................................ 1,355.2 1,228.8 1,085.0 10 % 13 %
Percentage of total revenue....................................... 33% 30% 25%
Print and Publishing.................................................... 188.7 200.5 216.8 (6)% (8)%
Percentage of total revenue....................................... 4% 5% 5%
Total revenue............................................................... $ 4,147.1 $ 4,055.2 $ 4,403.7 2 % (8)%
Fiscal 2014 Revenue Compared to Fiscal 2013 Revenue
Digital Media
Revenue from Digital Media decreased slightly during fiscal 2014 as compared to fiscal 2013. The slight decrease was
primarily driven by declines in revenue associated with distribution of third-party software downloads and Hobbyist products
launched in fiscal 2013. With respect to the Hobbyist product revenue decline, we are actively migrating customers to our Creative
Cloud Photography Plan for which revenue is recognized ratably. Largely offsetting these decreases were increases in Creative
Cloud and Document Services revenue.
Revenue related to our creative professional products, which includes our Creative Cloud, Creative Suite editions and CS
point products, increased during fiscal 2014 as compared to fiscal 2013 due to increases in revenue from subscriptions and ETLAs,
partially offset by the decrease in revenue from CS point products and Creative Suite editions as we discontinued the general
availability of our perpetually licensed CS6 products in the second quarter of 2014.
Revenue associated with our other creative products decreased during fiscal 2014 as compared to fiscal 2013 primarily due
to decreases associated with distribution of third-party software downloads and Hobbyist products launched in fiscal 2013.
Additionally, actively migrating customers to our Creative Cloud Photography Plan is also contributing to the year-over-year
decline in revenue. These decreases were offset in part by increases in revenue associated with our Digital Publishing Suite.
For our creative offerings, the total number of perpetual units licensed decreased while the number of subscription units
licensed increased during fiscal 2014 as compared to fiscal 2013. Unit average selling prices for our perpetual units licensed
decreased during fiscal 2014 as compared to fiscal 2013.
Document Services revenue, which includes our Acrobat product family, increased during fiscal 2014 as compared with
the year-ago period primarily due to increases in our Acrobat Cloud Services revenue. The increases were slightly offset by
decreases due to our continued shift to ETLAs.
Within Document Services, excluding large enterprise license agreements, the number of units licensed decreased while
the unit average selling prices remained stable during fiscal 2014, as compared with the year-ago period.
Digital Marketing
Revenue from Digital Marketing increased $126.3 million during fiscal 2014 as compared to fiscal 2013 due to continued
revenue growth associated with our Adobe Marketing Cloud, which increased 15% during fiscal 2014 as compared with the year-
ago period. Contributing to this increase was Adobe Campaign and the strong adoption of AEM.
Print and Publishing
Revenue from Print and Publishing decreased during fiscal 2014 as compared to fiscal 2013 primarily due to decreases in
legacy product revenue and increased ETLAs for certain products in this group.
Fiscal 2013 Revenue Compared to Fiscal 2012 Revenue
Digital Media
Revenue from Digital Media decreased $476.0 million during fiscal 2013 as compared to fiscal 2012, primarily due to
continued strong adoption of Creative Cloud and ETLAs as we continued to transition more of our business to a subscription-
based model.