Adobe reported its quarterly results yesterday, and as usual offered an open question-and-answer session with financial analysts.
I’d like to thank SeekingAlpha.com once again for transcribing both the presentation and the discussion section. They allow bloggers to copy up to 400 words, and I pulled some snippets out of the Q&A. These are heavily edited to turn transcribed speech into written speech… if in doubt, please go back to the transcript or the audio.
“2010 is clearly off to a great start. Adobe’s long term opportunity has been sometimes overlooked in this recent Flash controversy… When you talk about the explosion of digital content, the movement towards devices, the businesses which are moving online, it’s just a really massive opportunity, and an opportunity where Adobe is uniquely positioned.”
“The number of Flash users is now up to 3.5 million designers and developers, a 59% increase. In terms of the revenue of products that contain Flash, there has been a 22% increase in revenue.”
How does Adobe’s investment in Flash Platform generate a return-on-investment? Authoring tools are the obvious way, and multi-screen authoring is rapidly increasing in demand. Servers are another, whether through consumer video or enterprise application servers. Player downloads offer third-party software, and this helps pay for Player development. Analytics are another emerging area, so that creators can see how well their content suits their audiences’ needs.
“We really have not seen any impact of the HTML and Flash debate on our authoring business. Instead we’re seeing more and more fragmented workflows as people have to author to different standards. The need to deal with all these disparate workflows is actually causing more attention to be paid to the Creative Suite 5 features. We’ve said this multiple times, that ‘Flash *and* HTML’ is really going to be the solution for the web. Both of them have benefits. And Adobe has had a long history of supporting both formats.”
“I’d say one of the reasons Creative Suite 5 has been so strong across the board is authoring for multiple screens. It’s a painpoint now for all customers, and between now and holiday season you’ll see probably another ten tablet style devices that come out with different resolutions. This will increase the demand further. The need for customers to be able to get their content out to multiple devices… we’ve certainly seen an uptick in those requests.”
“With respect to your question on the content servers, the amount of video served or streamed using the Flash format has actually exceeded our expectations from the beginning of the year. The big reason is that more and more video is been streamed over the internet. The fact that some devices don’t support Flash just means that there may be additional workflows. But if you think about sporting events or when you think about television, all of that’s also being streamed on the Internet and practically all of that is in Flash.”