adobe-r&d-costs

Adobe R&D Expenses

Business / By /

Adobe spent $3.47 billion in R&D expenses in 2023 representing 18% of its total revenues, and it spent $2.99 billion in R&D expenses for 2022, representing 17% of its total revenue, vs. $2.54 billion in 2021, representing 16% of its total revenue.

Related Visual Stories

Who Owns Adobe

who-owns-adobe
Adobe is primarily owned by institutional investors like The Vanguard Group (8.59%) and BlackRock (8.05%). At the same time, top individual investors comprise Chief Executive Officer Shantanu Narayen and John Warnock, the co-founder of Adobe.

Adobe Business Model

adobe-business-model
Adobe’s business model revolves around providing a Creative Software Suite, Cloud Services, and Digital Marketing Solutions. They develop innovative software tools for creative professionals, leverage cloud infrastructure, and incorporate AI and machine learning. Their distribution model involves direct sales, a partner ecosystem, and an online marketplace. Revenue is generated through subscription plans, licensing, and advertising platforms.

Adobe Revenue

adobe-revenue
In 2023, Adobe generated most of its revenue, $18.28 billion (94%) from subscriptions, followed by services with $665 million and products with $460 million. In 2022, Adobe generated $17.6 billion, in 2021 $15.78 billion, in 2020 412.87 billion.

Adobe Revenue Breakdown

adobe-revenue-breakdown
In 2023, Adobe generated most of its revenue, $18.28 billion (94%) from subscriptions, followed by services with $665 million and products with $460 million.

Adobe Subscription Revenue

adobe-subscription-revenue-breakdown
Adobe generates most of its revenue from subscriptions. The subscription business consists of digital media, digital experiences, and publishing & advertising. Indeed, in 2023, Adobe generated $13.84 billion in digital media, $4.33 billion in digital experiences, and $115 million from publishing & advertising.

Adobe Digital Media Revenue

adobe-digital-media-revenue-breakdown
The Adobe digital media business consists of two segments: creative cloud and document cloud. In 2023, Adobe generated $11.52 billion from the creative cloud vs. $ 2.7 from the document cloud.

Adobe Cost Structure

adobe-cost-structure
Adobe has a cost structure skewed toward subscriptions, which carry a high gross margin compared to other segments. Indeed, subscriptions generate most of the revenue for Adobe, and in 2023, for instance, on $19.41 billion in revenue, $2.35 billion in cost of revenue, and $17.05 in gross margins.

Adobe Employees

adobe-employees
Adobe had 29,945 employees in 2023, 29,239 employees in 2022, 25,988 employees in 2021 and 22,516 employees in 2020.

Adobe Revenue Per Employee

adobe-revenue-per-employee
Adobe generated $648,154 in revenue per employee in 2023, over $600K per employee in 2022, over $607K in 2021, and over $571K in 2020.

Adobe Sales & Marketing Expenses

adobe-sales-and-marketing-as-percentage-of-revenue
Adobe spent $5.35 billion in sales and marketing expenses for 2022, which represented 28% of its total revenues. In 2022, Adobe spent $4.97 billion in sales and marketing expenses in 2022, which represented 28% of its total revenue. This compared to $4.32 billion in 2021, which represented 27% of its total revenue.

Adobe R&D Costs

adobe-r&d-costs
Adobe spent $3.47 billion in R&D expenses in 2023 representing 18% of its total revenues, and it spent $2.99 billion in R&D expenses for 2022, representing 17% of its total revenue, vs. $2.54 billion in 2021, representing 16% of its total revenue.

More Resources

Scroll to Top

Discover more from FourWeekMBA

Subscribe now to keep reading and get access to the full archive.

Continue reading

FourWeekMBA