Figma’s business model centers around providing collaborative design solutions through a cloud-based platform. Their value lies in enabling real-time collaboration, offering powerful web-based design tools, and facilitating version control and prototyping. Figma adopts a distributionmodel with freemium and subscription plans, targeting both individual users and enterprise customers. Revenue is generated through subscription fees, enterprise licensing, and integration partnerships with other design tools.
Table of Contents
Value Model
Collaborative Design: Enabling multiple designers to collaborate in real-time on design projects.
Cloud-based Design Tools: Providing a cloud-based platform with powerful design tools accessible from anywhere.
Version Control and Prototyping: Facilitating version control and prototyping features for efficient design workflows.
Adobe generated most of its revenue (93%) from subscriptions in 2022. Indeed, the company generated $16.39 billion in subscriptionrevenue in 2022 compared to $686 million from services, and $532 million from product
Adobe generates most of its revenue from subscriptions. The subscriptionbusiness 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.
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 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 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 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.
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.
