Q2: Progress on Adobe’s Transformation

Adobe has had another fruitful quarter.
Adobe has had another fruitful quarter.

Adobe’s second quarter earnings announcement signals more progress in its transformation from “the PDF” company to a digital marketing giant.

The transitions are many. First, clients are adapting their businesses to mobile customer experience and marketing. Good news here: Mobile transactions are up 25%. Second, Adobe is on a path to provide tools for digital marketing, in addition to its strengths with creating digital content. Many of the steps on this path are furnished by acquisition, most notably of Omniture and its leading analytics, search, and other tools. It’s not clear what portion of creative users are now also using the marketing cloud. All we know is that of the $1.1B in revenue for the quarter, $230M came from Adobe Marketing Cloud. This represents a 17% year-year growth in revenue, and 25% growth in bookings.

In another transition, Adobe is shifting from licensed software to services delivered from Adobe Marketing Cloud. This is a stressful transition for some customers, especially those who hate putting their valuable data in some other company’s hands. An easier transition for many customers is the repackaging of 30 different products into 5 solutions offered thre Adobe Marketing Cloud. Adobe has given considerable thought to designing these solutions around its customers tasks and roles. It remains to be seen how well the new solutions match up to customers’ objectives and budgets.

Published by Sue Aldrich

As a leading authority on worldwide customer requirements, practices, technologies, and governance for personalization, Sue researches the technologies and practices that help marketers get the most useful content in front of customers at the right moment: recommendations, search, discovery, targeted marketing, and web content management. Aldrich is an expert on optimizing the methods that help customers find what they need to make buying decisions and/or to solve problems. She helps clients develop personalization, marketing, discovery, and content management practices that will engage customers and improve results.

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