Adobe (ADBE) has been a dominant force in media creation since it was founded in 1982 and released postscript the first international standard for computer printing and sparking the desktop printing revolution. The company has seen massive success with its digital content creation package creative suite, and since moving to a SaaS (Software as a Service) model in 2012 has seen revenue have a compound annual growth of 18%.

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Adobe: Continued Strong Revenue Growth Will Power Adobe For The Next Decade

Seeking Alpha

Adobe: Continued Strong Revenue Growth Will Power Adobe For The Next Decade

Summary

  • Adobe has seen 18% CAGR on revenue since 2013 with subscriptions revenue growing at 44% CAGR.
  • A healthy balance sheet puts Adobe in a prime position to make significant acquisitions over the coming years.
  • Adobe’s Experience Cloud has seen a more significant drop in growth than its competitors but is still on track to gain market share.
  • An ever-increasing move to independent online content puts Adobe’s consumer-friendly suite of tools in a prime position to gain significant market share.

Adobe (ADBE) has been a dominant force in media creation since it was founded in 1982 and released postscript the first international standard for computer printing and sparking the desktop printing revolution. The company has seen massive success with its digital content creation package creative suite, and since moving to a SaaS (Software as a Service) model in 2012 has seen revenue have a compound annual growth of 18%.

The company’s continuing growth of its digital media SaaS business and expansion to offer Experience Cloud a suite of analytic, marketing, campaign management and e-commerce tools looks to continue to push its share price higher. Strong revenue growth combined with high cash generation, low indebtedness and willingness to expand inorganically through acquisitions makes Adobe a prime target for investors looking for safety in a highly volatile market.

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