Adobe (
ADBE
) has acquired online portfolio website Behance to promote
community features on its Creative Cloud. Behance is a leading
online platform for discovering and showcasing creative work.
Customers can post projects and receive responses for designs and
other creative work while designers can use it to display and
acquire leads for paid creative assignments. Behance was founded in
2006 and has about a million members. Adobe states that
Creative Cloud members will soon gain access to basic Behance
capabilities such as portfolio creation while paid Creative Cloud
members will have access to extra capabilities offered by
Behance
ProSite
.
The company reported record Q4 revenue of $1.15 billion, beating
its guidance of $1.07-$1.12 billion and taking its annual
revenue to $4.4 billion. Adobe has seen significant growth in its
Creative Cloud and Marketing Cloud initiatives. It claims that it
has nearly 1 million free subscribers for Creative Cloud along with
326K paid subscribers. At an average selling price of
$750 per subscription
, this leads to an annual recurring revenue of $153 million.
Check out our complete analysis of Adobe
How Will The Social Aspect Help Adobe Creative
Cloud
Adobe Marketing Cloud's Q4 revenues grew 32% on a yearly basis
to $220.4 million. The only significant drop in revenue was
reported in the LiveCycle and Connect business, which reported $70
million in Q4, down from $103 million last year. The company has
seen a faster-than-expected adoption of subscription licenses and
will focus on increasing its end-user subscriptions while rolling
out enterprise term licenses in 2013. An indication of the
popularity of Creative Cloud was that it added 10,000 new
subscribers each week in Q4 2012, up from 8,000 last quarter.
Adding Behance to Creative Cloud will accelerate efforts to
enable a more open and collaborative creative community, and this
is likely to help Adobe sell more Creative Cloud licenses. Adobe is
one of the leading developers of creative software and it is safe
to assume that a lot of creative content creation takes place on
Adobe's software and integrating a marketplace like Behance is
likely to drive Creative Cloud subscription. The biggest advantage
of this integration is that the users can create content as well as
seek feedback, showcase their content and distribute it across
devices from a single platform, making the workflow much simpler
and therefore driving up consumption.
We currently have a $33 Trefis price estimate for Adobe, which
stands just below its market price. Creative Software accounts for
nearly 50% of its total value.
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a Company's Products Impact its Stock Price at Trefis