Adobe sees 20 percent ahead for fiscal 2019
Adobe said it will be able to grow its revenue about 20 percent in fiscal 2019 as its addressable market expands via the acquisition of Marketo as well as gains in its core cloud services.
At its financial analyst meeting behind held at its Max conference, Adobe said its digital media and digital experience revenue will grow about 20 percent in fiscal 2019. Digital media will see annualized net new recurring revenue of about $1.4 billion as digital experience subscription bookings will grow 25 percent.
The company also reaffirmed its fourth quarter outlook that was given just a few weeks ago. CEO Shantanu Narayen said there are multiple trends driving Adobe's business. The company is projecting that its total addressable market will go from $83 billion in 2020 to about $108 billion by 2021.
Executives in Adobe's analyst day presentation hit a few key themes including how content and data are combining to fuel the company's Sensei artificial intelligence as well as its cloud. In a slide, Adobe's virtuous cycle to target creatives, developers and enterprises goes like this:
From a technical standpoint, Adobe said it is looking to connect its services and develop a new enterprise ecosystem.
So for something like Experience Cloud, Adobe is looking to better cross- and up-sell, segment customers better and expand categories into new markets. Commerce will be a key focus area for Adobe.
In a nutshell, Adobe is plotting more connections between its services and growing its wallet share among customers via land and expand strategies.
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