Adobe to Outline Growth Strategy at Financial Analyst Meeting
SAN JOSE, Calif., Nov 08, 2011 (BUSINESS WIRE) -- Adobe Systems Incorporated ADBE -9.04% will host a Financial Analyst Meeting tomorrow in New York, where company executives will outline its strategy to target the explosive growth categories of Digital Media and Digital Marketing and its plans to drive long-term revenue growth. Adobe will also comment on its business update for its fourth quarter, ending Dec. 2, 2011. See separate release.
Company Focuses on Digital Media, Digital Marketing Opportunities
Moving forward, Adobe will offer customers the ability to make, manage, measure and monetize content and applications across all devices. The company has long been the leader in content authoring solutions with its Adobe Creative Suite(R) product franchise. Its Digital Media growth strategy revolves around its recently announced Creative Cloud and will enable the company to rapidly deliver new product capabilities and services; penetrate untapped market segments; and increase overall engagement with customers. Important elements include:
-- Continuing to deliver innovation on PCs through its Creative Suite software while extending its customer reach through tablet-based touch apps and Cloud-based software delivery
-- Shifting resources to support even greater investment in HTML5, through tools like Adobe(R) Dreamweaver, Adobe Edge and PhoneGap, recently added through the acquisition of Nitobi
-- Focusing Flash resources on delivering the most advanced PC web experiences, including gaming and premium video, as well as mobile apps
-- Enhancing digital publishing solutions to empower media companies to profit through publishing their content to any screen
-- Investing in media monetization, including the large growth opportunity in video advertising, facilitated by the acquisition of Auditude announced last week
-- Extending its leadership in document services with its Acrobat product line and increasing its focus on the growing category of electronic contracts and signatures through the recent acquisition of EchoSign
While Adobe's Digital Media business centers on content creation and publishing, its Digital Marketing business is focused on enabling customers to maximize the impact of their digital experiences across devices and media types. Adobe's Digital Marketing growth agenda is focused on becoming a mission-critical solution provider and partner to marketers. Key elements include:
-- Extending Adobe's leadership in analytics and reporting to drive rapid growth in new areas like mobile and social
-- Personalizing digital experiences across all digital channels, ensuring that customers can deliver the most relevant, customized content in real time
-- Driving multichannel campaign management, enabling marketers to make informed decisions about all aspects of a marketing campaign, from search to email to display advertising
-- Accelerating media monetization solutions for content publishers by enabling them to segment their audiences and maximize their advertising revenue, leveraging the company's acquisitions of Demdex and Auditude this year
"Our mission is to produce the world's content and maximize the impact of that content," said Shantanu Narayen, Adobe president and CEO. "Adobe is doubling down in the Digital Media and Digital Marketing categories, markets rich with opportunities for innovation and growth."
Company Unlocks Potential for Higher Revenue Growth
Moving into FY2012, Adobe will focus its research and development and sales and marketing investments on these two opportunities. In Digital Media, the company expects to attract new customers and increase recurring revenue through its new subscription offering. In order to drive increased Digital Marketing bookings, which are recognized as recurring revenue, the company will reduce its investment, and expected license revenue, in certain enterprise solution product lines. These changes will reduce FY2012 revenue growth by approximately four to five percentage points. As a result, the company expects annual revenue growth of approximately four to six percent in FY2012. However, the company expects non-GAAP operating margins in FY2012 to be similar to those it will achieve in FY2011. Beyond FY2012, the company anticipates double-digit revenue growth with an increasing percentage of recurring revenue.
"We believe that by focusing resources on two large initiatives and shifting our business model, we can drive faster and more predictable growth in FY2013 and beyond," said Mark Garrett, Adobe executive vice president and CFO.
Company executives will discuss more details about Adobe's growth potential and business model adjustments at tomorrow's Financial Analyst Meeting.
Adobe to Webcast Its 2011 Financial Analyst Meeting in New York
Adobe will provide a live webcast of its Financial Analyst Meeting tomorrow.
The live video webcast will last approximately seven hours. For those unable to watch the live webcast, an archive of the event will be available on Adobe's Investor Relations website for a limited time. Listening to the live webcast via Adobe Connect requires Adobe Flash Player version 10 or later. Firewalls designed to protect corporate information can prevent access to the webcast.