Adobe, a tech giant: Software company Adobe is a lot bigger than you might think

Not yet a subscriber? Sign up free below.

Adobe is a tech giant.

The American software company may not get the media attention of other big tech companies, but in financial terms, it absolutely should. At yesterday's closing price, Adobe, Inc. has a market cap of $246bn. For some context on just how big that is, Netflix's market cap is $245bn.

Photoshop and PDFs are big business

In the last 15 years Adobe has transformed itself into a software powerhouse, more than tripling its revenue since 2010. Although the company is most famous for its PDF-reader and photo-editing software Photoshop, Adobe actually sells an entire suite of software products, all sold with recurring subscriptions, which make up the bulk of Adobe's business.

Back in 2013, Adobe pivoted to that recurring subscription model, and its revenues have grown every single year since, last year reaching almost $13bn, with a whopping 87% gross profit margin.

Pivoting to the subscription model was a genius move for the company, but it doesn't always mean happy customers. This week Adobe grabbed headlines when a few customers on Twitter revealed the huge cancellation fees they were being charged when they tried to cancel their contracts. It turns out many of Adobe's subscription products are year-long contracts that just happen to get billed monthly.

Not yet a subscriber? Sign up free below.


Stories from this newsletter

New York's yellow cabs: Could they be under threat of extinction?
Harvard: The acceptance rate at Harvard just hit a new low
Adobe, a tech giant: Software company Adobe is a lot bigger than you might think
We and our partners use cookies and similar technologies (“Cookies”) on our website and in our newsletters for performance, analytical or advertising purposes to ensure you have the best experience on our site and/or interaction with us. To find out more about the use of Cookies, see our Cookie Notice. Please click OK if you consent to our use of Cookies or click Manage my Preferences to manage your Cookie preferences.