This post is by Jason Lemkin from SaaStr
Click here to view on the original site: Original Post
Q: What were the effects on Adobe’s finances when they switched from a licence purchase to a subscription model?< p class="Box-sc-9env3-0 Text-jjrgda-0 QTextPara___StyledText-anoo6m-0 fSlQBa qtext_para">Switching to a SaaS model, and going deeper into SaaS, was a generational accelerant for Adobe:
- Stock price up 1300%
- Revenue run rate grew from $4 billion in 2012 to an estimated $14 billion in 2020 (!)
We all underestimated the force the Cloud would become.
Adobe was essentially stagnant for the better part of the Decade before going all-in on Cloud around 2012. And it took a few years for the benefits to really kick in, as recurring revenue initially led to a lot of deferred revenue (as revenue had to be recognized over a longer period of time).
But then … boom:View original question on quora The post What were the effects on Adobe’s finances when they switched from a licence purchase to a subscription ? appeared first on SaaStr.