William Blair initiated research coverage of Adobe Inc. (ADBE $344.54), a leading enterprise software business that caters its solutions toward creative professionals, communicators, and marketers.
“Since releasing its original desktop printing software, PostScript, in 1983, Adobe has evolved its platform considerably,” said Roberge. “Whether it be the release of design applications like Illustrator and Photoshop in the late 1980s; the company’s launch of PDF in 1993; Adobe’s acquisition of Omniture in 2009, which established its Experience Cloud; or the transition to a subscription-based revenue model in 2012, Adobe has constantly evolved its platform over the past 40 years. Today, Adobe largely operates within three core segments: Creative Cloud, which caters its solutions to creative personas such as photographers, video editors, graphic designers, etc.; Document Cloud, with products such as PDF, e-signature, document analytics, etc.; and Experience Cloud, with solutions such as customer data/insights and journey optimization, content/e-commerce, and marketing workflows.
“Despite being founded more than 40 years ago, Adobe continues to grow at an impressive pace, with solid trends over the last few years as digital transformation initiatives and increasing demand for creative content have helped sustain growth,” added Bhatia. “While Adobe is already at a large scale, we believe the company’s addressable market is significant with numerous ways for it to expand over time, such as the democratization of creative software for nontechnical users, growth in the metaverse, and the rise of the prosumer category.”
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Current Ratings Distribution (as of 1/17/23)
Outperform (Buy): 73%
Market Perform (Hold): 27%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 6%
Market Perform (Hold): 2%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
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