In its early years, Adobe quickly amassed a wide variety of capabilities and was able to bundle new offerings with existing products to accelerate adoption. Morgan Stanley Investment Management Inc.2) Ability to Bundle Products: Adobe has consistently been able to bundle its products into an integrated suite, while ensuring that value was strong enough for customers to pay a premium price for the bundle. Legal & General Investment Management Limited Aug 17Ĭolumbia Management Investment Advisers, LLC
#How much is adobe software company free
The Free Cash Flow yield also offers a good opportunity based on its median of 2.72%, with a current yield of 3.35%. Valuation now declined well below the median PE with a 30.2 PE and a 14x EV to gross profit. The company since then, in line with the general technology market, saw its price decline sharply dropping as much as 47%.
Especially in 2020/2021 the company also benefited from multiple expansions, growing far above its Median 5-year PE ratio of 34.6x and peaked at 54x earnings. The Experience Cloud is now a business generating over a billion dollars each quarter, $4.15b TTM.Īdobe has seen a decade of strong fundamental growth and share price growth. Especially in marketing the company excels, beating Salesforce in revenue, according to a June 21 graphic from Gartner.Ĭustomer experience management 2020 (Gartner) Adobe is a leading player in this space, behind Salesforce (CRM), SAP (SAP) and Oracle (ORCL). Content management is also a direct link to its other solutions in the creative cloud. Adobe addresses these needs with its Adobe Experience Cloud, which aims to increase customer experiences with comprehensive data insights, content and engagement management. This deep moat allowed Adobe to maintain its margins after transitioning from the high-margin licensing business into a subscription business, which offers much better predictability of earnings and opens the software suite to more people by charging a small monthly fee rather than a large one-time purchase.īesides creative work, there is also a need for general workflow optimization inside companies. Adobe managed to become entrenched in the workflows of many digital segments and in the enterprise world.Īdobe managed to become entrenched in the workflows of many digital segments and the enterprise world. If you're planning on working in a Design field more often than not knowledge of Adobe products is an expectation for employees. In some areas like Photoshop Adobe has market shares above 90% with its combined products. These products cover pretty much the entirety of the creative spectrum of applications a freelance worker would need. In the following picture, you can see an overview of some of the products Adobe offers in its suite of products. This is a tailwind for the gig economy because these newer generations are more likely to prefer a flexible lifestyle with different employers or just being their own boss and joining the gig economy.Īccording to brodmin and Payoneer, the primary fields of freelancing are Design and Tech and their various subcategories.įreelancing income by segments (Payoneer/Brodmin) You can see that people 55-65+ years have significantly higher tenures, with the average tenure declining fast as the age declines. I expect the market to continue growing at a fast pace.Īccording to Caprelo, the young generation of workers is not interested in staying at the same company for decades.
I own Adobe shares and consider the stock a buy at these levels.Īdobe outperformance over Nasdaq100 (koyfin)Īccording to Statista, the gig economy is expected to grow from $204 billion in 2018 to over $455 billion in 2023, a 17% CAGR. I believe that Adobe is well positioned to profit from the tailwinds of the gig economy as one of the primary enablers of this growing trend.
The company is a high-quality compounder with a deep moat in enterprise software and in the wake of the 2022 market correction finally at a reasonable valuation again. Shares are trading at an attractive valuation again.Īdobe has been a big shareholder winner since it switched its business model from licensing to subscriptions in 2011-2012. The gig economy offers a tailwind to Adobe's business. Adobe: A Proven Compounder Powering The Gig EconomyĪdobe has been more than a 10-bagger since transitioning to a subscription business.Īdobe is deeply entrenched in all creative businesses, creating a wide moat.
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