Adobe Inc. (ADBE)
Analysis of Revenues
High level of difficulty
Accounting Policy on Revenue Recognition
Adobe’s revenue is derived from subscription offerings, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. Most of Adobe’s enterprise customer arrangements are complex, involving multiple solutions and various license rights, bundled with post-contract customer support and other meaningful rights that together provide a complete end-to-end solution to the customer.
Adobe recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, Adobe has delivered the product or performed the service, the fee is fixed or determinable and collection is probable. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue Adobe reports.
Source: 10-K (filing date: 2019-01-25).
Revenues as Reported
Adobe Inc., Income Statement, Revenues
US$ in thousands
|12 months ended||Nov 30, 2018||Dec 1, 2017||Dec 2, 2016||Nov 27, 2015||Nov 28, 2014||Nov 29, 2013|
Based on: 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20), 10-K (filing date: 2014-01-21).
|Revenue||Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).||Adobe Inc.’s revenue increased from 2016 to 2017 and from 2017 to 2018.|