Adobe Subscription Business

Business / By Gennaro Cuofano / March 10, 2023 March 10, 2023

Adobe generated most of its revenue from subscriptions. Subscriptions also carry a high gross profit margin for the company. For instance, in 2022, of $16.39 billion in subscription revenue, the company only reported $1.64 billion in cost of sales (the costs to run the software service to the customer), thus generating $14.75 billion in gross profits from the subscription business.

adobe-revenue-breakdown-2022

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Adobe Revenue

adobe-revenue — Adobe generated $17.6 billion in revenue in 2022, compared to $15.8 billion in 2021 and $12.9 billion in 2020.

Adobe Revenue Breakdown

adobe-revenue-breakdown — Adobe generated most of its revenue (93%) from subscriptions in 2022. Indeed, the company generated $16.39 billion in subscription revenue in 2022 compared to $686 million from services, and $532 million from product

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 2022, Adobe generated $12.38 billion in digital media, $3.88 billion in digital experiences, and $123 million from publishing & advertising.

Adobe Digital Media Revenue

adobe-digital-media-revenue — The Adobe digital media business consists of two segments: creative cloud and document cloud. In 2022, Adobe generated $10.46 billion from creative cloud vs. $2.38 from 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 2022, for instance, on $17.6 billion in revenue, $2.16 in cost of revenue, and $15.44 in gross margins.

Adobe Employees

adobe-employees — Adobe had 29,239 employees in 2022, compared to 25,988 employees in 2021 and 22,516 employees in 2020.

Adobe Revenue Per Employee

adobe-revenue-per-employee — Adobe generated over $600K per employee in 2022, compared to over $607K in 2021 and over $571K in 2020.

Adobe Sales & Marketing Expenses

adobe-sales-and-marketing-costs — Adobe spent $4.97 billion in sales and marketing expenses in 2022, which represented 28% of its total revenue. Compared to $4.32 billion in 2021, which represented 27% of its total revenue.

Adobe R&D Costs

adobe-r&d-expenses — Adobe spent $2.99 billion in R&D expenses in 2022, which represented 17% of its total revenue, vs. $2.54 billion in 2021, which represented 16% of its total revenue.

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About The Author

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.