Adobe's fiscal Q3 was relatively strong as the company reported $290 million in revenue for its Adobe Marketing Cloud portfolio of products, up from the $254.9 million recorded in Q3 last year. Adobe Systems' total revenue was $1 billion in the quarter.
Overall, Adobe Marketing Cloud cited strong customer adoption in the third quarter, counting British Sky, Ford Motor Co., H&M, the US Department of Treasury and Adidas among key client wins.
"It really is in our best interest to manage and deliver the entire customer platform," said Shantanu Narayen, Adobe Systems CEO, during the company's Q3 earnings call.
Although he cited Adobe Campaign (formerly Neolane, the cross-channel campaign tool it bought about a year ago) and Adobe Experience Manager as key drivers for the overall marketing portfolio, "we're seeing an increase in multiyear deployments as well as [selling] more solutions within existing customers," which is leading to increased "stickiness" around the entire cloud portfolio.
Narayen said a combination of factors contributed to the traction this quarter, including an increase in size and volume of transactions, international expansion, growth in partner business, as well as a shift in perpetual to term-based contracts, which indicate larger, multiyear agreements. (more…)