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Exam Code: AD0-E116 Practice exam 2022 by Killexams.com team
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Killexams : ADOBE Experience answers - BingNews https://killexams.com/pass4sure/exam-detail/AD0-E116 Search results Killexams : ADOBE Experience answers - BingNews https://killexams.com/pass4sure/exam-detail/AD0-E116 https://killexams.com/exam_list/ADOBE Killexams : How Adobe and Salesforce are fine-tuning customer experience tools

It was a big week for the customer experience market, with two major players in the marketing tool space taking swings to bring the idea to the next level. The pair of moves taken together could move customer experience closer to reality after a long period of ambition.

“Customer experience” is kind of a vague notion. The idea is that you want your customers to feel good every time they interact with you, whether in person or online. You certainly know when that doesn’t work well, but it can be more subtle than simply a big smile in person or a successful outcome online. It’s more about taking the extra step to get ahead of problems before they happen or designing a product in an elegant way to reduce friction.

It seems that with all the data we have about customers these days, companies should be doing better at generating positive experiences. In fact, there is so much data from so many sources that companies like Adobe and Salesforce have created customer data platforms (or CDPs for short) to pull all of that data into one place with the goal of delivering optimal customer experiences based on the knowledge you have collected about customers.

Two of the biggest companies involved in gathering and using this data are Salesforce and Adobe. While Adobe doesn’t have a CRM, it certainly has marketing tools, and its $20 billion purchase of Figma was all about designing great products, which ultimately should lead to a better customer experience.

At the same time, at Dreamforce this week, Salesforce’s annual customer conference in San Francisco, the CRM giant announced a new approach to data integration on a platform called Genie. While it works in conjunction with the platform of tools itself, and with external partners like Snowflake and Amazon, the ultimate goal is to use the massive amounts of customer data to generate the best customer experiences possible at the moment they’re needed.

Wed, 21 Sep 2022 12:00:00 -0500 en-US text/html https://techcrunch.com/2022/09/22/how-adobe-and-salesforce-are-fine-tuning-customer-experience-tools/
Killexams : Adobe Free Trial: Try Creative Cloud for free

If you’ve recently bought yourself one of the best tablets or one of the best laptops, you may have an interest in breaking it in with some creativity. If that’s the case, an Adobe free trial is something worth looking into, as Adobe for decades has been known for providing editors, designers, and other artists with some of the best software tools for harnessing their creativity. With recent updates that make apps like Lightroom a whole lot more useful, and with real-time editing in Premiere Pro and After Effects, testing the Adobe library of software to see if it fits your needs is an idea worth exploring.

Is there an Adobe free trial?

Close up of Adobe Photoshop app icon being chosen from among other Adobe apps on a laptop screen.
Matan Segev / Pexels

There is an Adobe free trial, and it’s a pretty impressive offering. An Adobe free trial is good for seven days, and you’ll need to create an account and provide a credit card for Adobe to keep on file. From there, you’ll get access to the entirety of Adobe’s software offerings, which total more than 20 creative desktop and mobile apps. These include some of the best photo editing software in Adobe Lightroom and Photoshop, and some of the best video editing software in Adobe Premiere Pro and After Effects. Free trials are available for Adobe’s individual apps as well.

The Adobe free trial is essentially a seven-day experience of what it would be like to have a fully paid subscription to Adobe’s Creative Cloud suite of software. You’ll get to experience the power of the desktop apps or the versatility of the mobile and tablet apps, and each is available to you based on what hardware you’re most comfortable working on. An Adobe free trial also includes 100GB of cloud storage to house your projects and the media associated with them. You can cancel your free trial within seven days of starting it, and from there the full suite of Adobe Creative Cloud is $55 per month.

Can you get Adobe for free?

The seven days of free, full use of Adobe’s software as part of the Adobe free trial is about as close as you can get to getting Adobe software for free. With the subscription model Adobe has chosen to offer its software through, the days of software arriving on disks or CDs are long gone, and Adobe uses your account and login credentials to verify you’re a paying subscriber when you open the software up. There’s some talk that Photoshop may be coming to the web for free, and there’s an Adobe Photoshop free trial available as well. Your best bet at receiving the entirety of the Adobe software library for free, however, is with an Adobe free trial.

Are there any Adobe deals?

Adobe does regularly offer discounts and deals, with pretty impressive discounts available for students and teachers. While the entirety of the Adobe Creative Cloud suite of software starts at $55 for a monthly subscription, Adobe also is willing to knock this price down pretty regularly for new users to the software, and potentially for power users such as businesses. You can also get a much lower price on Adobe software subscriptions if you aren’t interested in the entire suite of software. Adobe offers a Photography Plan that starts at $10 per month and includes both Lightroom and Photoshop. Subscriptions are available for individual apps as well, with prices ranging from $10 per month to $21 per month per app.

Editors' Recommendations

Mon, 03 Oct 2022 02:03:00 -0500 Andrew Morrisey en text/html https://www.digitaltrends.com/dtdeals/adobe-free-trial/
Killexams : Adobe Stock Breakdown: How Does Adobe Make Money In 2022?

Key takeaways

  • Adobe’s stock crashed after the company announced a $20 billion acquisition of rising creative software rival Figma.
  • Adobe announced record revenue for the third quarter as the company continued to profit from its subscription-based business model.
  • The price of Adobe stock continues to suffer as Wall Street is not impressed by the hefty price tag on the acquisition.

You likely have not opened a file on your computer in the last decade without seeing Adobe’s name. They are the giant tech company that specializes in the creative software space. It’s estimated that over 90% of the world’s creative professionals use Photoshop for business. The company is known for Photoshop and the PDF file format, but there is so much more to Adobe for creatives and those who manage them and sell creative services. We’re going to look at how Adobe makes money, and what’s behind the recent downward movement of Adobe stock.

Having recently issued its earnings report on September 15 for the third quarter of 2022, the Adobe reported a net income of $1.14 billion on a revenue of $4.43 billion for the period. However, the announcement of the Figma acquisition has caused the stock to plummet as Wall Street isn’t pleased with the move. What’s behind this Figma purchase, and how does this impact the future of Adobe?

How does Adobe make money?

It’s estimated that more than 400 billion PDFs were viewed with Adobe products in the last year, and we can’t ignore how popular the company has become. Annual revenue was $15.785 billion for 2021, a 22.67% increase from 2020. For the third quarter of 2022, Adobe reported a record-setting revenue figure of $4.43 billion, marking 13% year-over-year growth.

There are three revenue streams when you look over Adobe’s earnings report:

  • Subscription - This section brought in $4.128 billion for the last quarter, which represented 93% of the company’s revenue.
  • Product - This sector brought in $126 million for the most recent quarter. The product doesn’t bring in meaningful revenue because Adobe now operates on a subscription model instead of selling their software. However, Adobe still makes nine figures licensing apps.
  • Services and other - This brought in $179 million in the last quarter. This is includes money from related services, training and certain smaller business segments.

Adobe breaks the revenue down into two operating segments: Digital Media and Digital Experience. Digital Media revenue was $3.23 billion for the quarter, and Digital Experience revenue reached $1.12 billion.

Digital Media consists of the popular Creative Cloud and Document Cloud services. Document Cloud includes Adobe Acrobat and Adobe Sign services. Creative Cloud contains popular applications like Photoshop, Illustrator and Premiere Pro to name a few.

The Digital Experience segment includes Experience Cloud, which is the tool that companies use for marketing commerce purposes. Regular customers don’t commonly know this product as it’s designed for enterprise use. The Experience Cloud platform uses data, software and analytics tools that allow businesses to track the buyer’s journey. The products here include:

  • Adobe Experience Manager for content and commerce.
  • Adobe Experience Platform for data insights.
  • Adobe Workfront for marketing workflow.

The company also offers email and further analytics options under this segment.

A quick glance through the Adobe website shows all of the products offered under Adobe Creative Cloud, Adobe Document Cloud and Adobe Experience Cloud.

What’s happening with Adobe stock?

Despite announcing record-breaking revenue for the quarter, Adobe has lost big in the stock market over the last two weeks. The brand has been raked into the mud due to confusion among analysts, and their stock price has dropped accordingly.

Wall Street doesn’t like this move as the $20 billion figure roughly equates to 50 times Figma’s expected revenue (annual recurring revenue) for this year. As a result of this announcement, the stock has dropped significantly.

Adobe announced the acquisition of Figma on September 15, and the Adobe stock dropped 24% by the next day as the announcement was met with disappointment. The initial news crashed the Adobe stock immediately by about 17%, which erased about $29 billion of its market cap. This was the worst single-day drop for Adobe since September of 2010. This one move erased $9 billion more from the market cap than the real purchase price of Figma.

Many analysts have been coming forward with slashes to the price target for Adobe since the acquisition announcement, which has added to the stock’s decline. We’re going to dig a little deeper into Adobe’s logic behind this move.

The stock just started creeping over the last two days, September 27 and 28.

Adobe to acquire Figma

During the last earnings report on September 15, Adobe dropped the news that they were purchasing Figma for $20 billion, plus an additional $2 billion for management retention as the CEO stays on. The hefty $20 billion price will be paid for with cash, stocks and possibly a term loan.

The proposed acquisition should go through in 2023, pending regulatory approvals. Figma was founded in 2012 and sells a design application tool that’s used for creating websites, apps and logos.

Many analysts quickly pointed out that the price tag for Figma just doesn’t make sense. Figma was valued at $10 billion in June of 2021, so this is a sizable jump in valuation. The consensus was this was a defensive move; Adobe was thinking about a competitor gaining further market share, so they had to negotiate from a weak position. Many felt that Adobe was losing too much momentum to Figma, so the move to desperately buy them out instead of attempting to compete with them was at least strategic, if questionable.

This leaves many investors speculating if other competitors like Canva or Sketch could catch up to Adobe as the popularity of cloud-based graphic design tools grows worldwide.

Other analysts brought up that Adobe let a competitor grow so quickly that they had no choice but to pay a premium to buy them out, an immediate red flag that research and development is out of touch with customers and the broader marketplace.

As Adobe transitioned to cloud-based software, it was clear that Figma was gaining market share with its collaborative design tools. Many users felt that Figma’s cloud-based design software was not only cheaper but easier to use and more collaborative than Adobe’s products. Figma’s software is currently used by large companies like Airbnb, Google and Netflix to design their websites.

On the flip side, Adobe is removing a huge competitor with this move, and they also buy a fast-scaling business. The company’s also staying on the cutting edge by purchasing this successful company instead of investing time and resources to spin something up internally. Adding Figma to the company will increase revenue.

Revenue at Figma has been growing 100% annually, and the gross margin is at 90%. These two key figures could be enough to justify the acquisition as Adobe already has a strong global sales force that could benefit from this added revenue stream.

How can you invest in this Sector?

The digital design sector has exploded, and will continue to grow for some time, especially atop the substrate that is cloud software. Many users turned to Canva since the tool allowed cloud-based collaboration for creatives, and it was much easier to use than more advanced applications like Photoshop and Illustrator. As cloud applications become more popular and easier to scale, the competitive landscape will remain strong.

The bottom line

With Adobe’s stock dropping on the news of the acquisition, some analysts feel that this would be the perfect time to buy, while other analysts continue to downgrade Adobe stock. It’s difficult to predict how the acquisition will go through, but there’s certainly potential for Adobe to significantly increase its revenues with this added synergy, on top of its already impressive growth of late.

We will continue to monitor this tech giant as they follow up on this move. It’s still a bit too early to decide what the purchase will mean for revenue and growth moving forward.

If you’re not sure which company in the digital design sector to invest in, take a closer look at Q.ai’s Tech Rally Kit. Tech giants are struggling to maintain performance during the post-pandemic era, as many of these stocks have suffered since pandemic restrictions loosened up. The Tech Rally Kit is an affordable and easy way to diversify your portfolio. You can activate Portfolio Protection at any time to protect your gains and reduce your losses, no matter what industry you invest in.

Download Q.ai today for access to AI-powered investment strategies. When you deposit $100, we’ll add an additional $100 to your account.

Thu, 29 Sep 2022 01:41:00 -0500 Q.ai - Powering a Personal Wealth Movement en text/html https://www.forbes.com/sites/qai/2022/09/29/adobe-stock-breakdown-how-does-adobe-make-money-in-2022/ Killexams : Adobe’s New App Makes Creating Graphics Easy, No Experience Necessary
This article is sponsored by Adobe.

It feels like everybody goes through a quick “graphic design is my passion” phase once in their life, and then quickly gives up after one failed abstract macaroni painting. But everyone practices design in their lives in some way, however. Whether that’s by touching up selfies, making memes or making slideshows for a work presentation, we make decisions on design every day.

Thankfully, software company Adobe has recognised this and the importance that everyone deserves access to design software and the ability to learn how to use them. This becomes more vital as employers are starting to prioritise candidates with design experience.

To help every aspirational hobbyist, including students and small business owners, Adobe has been aiding in the democratising of great design through Adobe Express, an all-in-one free content creation tool. The web and mobile-based app, which launched in December of last year and has continued to evolve and meet the needs of creators by releasing new and exciting features and updates. These changes have helped hopeful creators get started on their design passion and given them the tools to start quickly creating standout content in no time.

Adobe’s New App Makes Creating Graphics Easy, No Experience Necessary
Image: Adobe Express

How To Sign Up

The software is free to sign up for so you can start your journey in content creation with no strings attached. There is also an additional Adobe Express Premium offering, for $14.29 a month if you find yourself wanting to access more tools and creative cloud integration.

In Adobe Express Premium, you’ll receive access to further tools such as Photoshop and Premiere Express. These can be great if you’re looking to start a personal video diary or want to Boost on your TikTok game. With Adobe Express you’ll be able to edit your videos on the fly to cut together a quick recap of your day to send to loved ones, edit out annoying objects in your photos or videos, or fix any issues with lighting to match your godly whims.

Creative Cloud Integration

Not only has Adobe Express simplified the design learning process, but it’s also simplifying Adobe’s collection of creative tools. Bringing together Adobe Stock images, a wide array of templates, content scheduling and quick actions powered by Photoshop, you’ll have a wide variety of tools at your disposal. You’ll also gain access to a large selection of fonts from Adobe’s library.

This service aims to highlight its flexibility for any user’s design needs. Whether you’re removing a background, adding colour to your text, or placing your logo on a product image. In just a few taps, you can resize content for your socials and create easy, high-quality graphic designs.

There are plenty of great on-the-go features as well, such as the ability to edit, export in JPG or PNG or resize or convert or export to PDF as well.  This app can be your swiss army knife as a designer if you’re ever caught off guard and need to make a quick edit on your phone.

Educational & Business Support

If you’re a small business owner, you’ll be able to quickly add your logo to any photo, or design your business identity yourself. You’ll also want to take advantage of Adobe Sensei, which will help quickly edit your videos for Insta, and streamline business processes by turning notes into shareable PDFs in seconds.

Adobe is also extending its services to schools through the Adobe Education Exchange, which provides free tutorials, courses, lesson plans and videos to students. The hope for this program is that it will help students develop stronger creative skills while giving students and teachers direct access to resources that can help them.

A key issue in software comes down to accessibility. Thankfully Adobe Express works on all platforms and browsers, so you’ll won’t be locked out of any features based on your hardware of choice. Adobe is deeply committed to supporting Adobe Express and its community for many years to come and will be providing frequent updates to the platform and responding to feedback.

Adobe’s New App Makes Creating Graphics Easy, No Experience Necessary
Image: Adobe Express

To learn more about Adobe Express and Adobe’s collection of creative tools, tune in to Adobe MAX, streaming October 20 across the Asia Pacific. Register to the free event here.

If you’re looking to take another stab at that graphic design passion, try signing up for Adobe Express for free here.

Thu, 06 Oct 2022 23:52:00 -0500 en-AU text/html https://www.lifehacker.com.au/2022/10/adobes-new-app-makes-creating-graphics-easy-no-experience-necessary/
Killexams : Adobe can’t Photoshop out the fact its $20bn Figma deal is a naked land grab

The big tech news in a slow week was that the software giant Adobe is planning to pay the unconscionable sum of $20bn (£18bn) to acquire a small company called Figma. Why is this news? Well, first of all, there’s the price – way above any rational valuation of Figma. Second, there’s the question that we have finally learned to ask about tech mergers and acquisitions: is there a competition or antitrust issue here somewhere?

We’ll come to the price later, but at first sight, the answer to the second question would seem to be no: the two companies are not direct competitors. Adobe dominates the market in software for creating and publishing digital and printed material – graphics, photography, illustration, animation, multimedia/video, motion pictures and print. If you’ve ever used Photoshop, Illustrator, Acrobat Reader or opened a pdf (portable document format), then you’ve used an Adobe product.

Figma, in contrast, is a smallish company that produces nifty web-based tools to enable teams working on user interface and user experience design projects to collaborate online. None of these tools is a serious competitor for the heavy-duty ones that Adobe markets and indeed the Figma designers have always been ecumenical about what people choose to use in their design work. If a customer uses Adobe Photoshop or Illustrator, well, that’s fine by Figma. Its focus is on enabling teams of designers to create workflows – using brainstorms, whiteboards, sticky notes, etc – that suit them and their collective projects.

So why would Adobe want to lay out such a mountain of cash to acquire this minnow? The answer is that its leaders are thinking ahead and they see a strategic threat in the making. In the networked world, more and more work is being done by geographically dispersed teams who have to collaborate online. And in that context, project management and the creation of workflows that are efficient, user-friendly and agile is moving centre stage. As James Carville, Bill Clinton’s strategist, might have said: “It’s the workflow, stupid!”

And Figma, to all intents and purposes, already owns that workflow space, whereas Adobe only makes tools that people use. As the veteran analyst Ben Thompson puts it in his newsletter, the reason why Adobe is both willing and has no choice but to spend so much is: “Figma is set to be the ‘operating system for design’, which means that in the long run Adobe has to operate on Figma’s terms, not the other way around; to put it another way, Adobe is not only paying for long-run control of design but also its own independence. That alone is worth a whole bunch of money!”

But even that need doesn’t quite explain the overpayment. The other reason is that Figma was doing quite nicely and had no need to sell itself. So the offer had to be one that nobody could refuse.

At this point, those with long memories will hear a bell ringing. Way back in 2009, an interesting messaging app appeared on the net. It was called WhatsApp. From the outset, it was clean and efficient and had a simple and honest business model – one year’s free use and then a modest annual subscription. And it grew like crazy.

By 2012, Facebook saw WhatsApp as a serious strategic threat. Internal documents extracted by a Federal Trade Commission (FTC) inquiry in 2020 tell the story. One senior executive writes: “This is the biggest threat to our product that I’ve seen in my five years here at Facebook; it’s bigger than G+ [Google Plus] and we’re all terrified. These guys actually have a credible strategy: start with the most credible social graph (ie the ones you message on mobile) and build from there.” In February 2013, the Facebook board saw a presentation warning that services such as WhatsApp were “a threat to our core businesses, both with respect to social graph and content sharing. They are building gaming platforms, profiles and news feeds [and] have all the ingredients for building a mobile-first social network.”

Guess what happened? In 2014, Facebook boss, Mark Zuckerberg, made WhatsApp’s founders an offer they couldn’t refuse – $19bn – and that was way more than any rational valuation of the company. In an internal document, the move was described as a “land grab” that “prevents probably the only company that could have grown into the next Facebook purely on mobile”.

With the hard-won wisdom of hindsight, we now realise that Facebook’s acquisition of WhatsApp – just like its earlier purchase of Instagram in 2012 – should never have been allowed. So whether the FTC allows Adobe’s land grab of Figma will be a good test of whether the US government has acquired that wisdom. The deal should be challenged, investigated and banned. And if it isn’t, then we will know that tech companies still have little to fear from regulators – other than the odd, affordable, multibillion-dollar fine.

Snap election
What’s Breaking Democracy? is William Janeway’s astute review of important new books by Gary Gerstle and Helen Thompson on the Project Syndicate website.

Drawing conclusions
The giant gulf between drawing a picture and understanding the world is the subject of a characteristically sharp essay, The Road to AI We Can Trust, by Gary Marcus on the Substack platform that addresses new artificial intelligence-powered drawing tools.

Royal appointment
Andrew Sullivan’s Weekly Dish offering An Icon, Not an Idol, also hosted on Substack, is an insightful assessment of the late Queen.

Sat, 24 Sep 2022 02:00:00 -0500 John Naughton en text/html https://www.theguardian.com/commentisfree/2022/sep/24/adobe-cant-photoshop-out-the-fact-its-20bn-figma-deal-is-a-naked-land-grab
Killexams : The Adobe-Microsoft Partnership Explains The Figma Acquisition
Bill Gates Attends Windows XP Expo

Mario Tama/Getty Images News

When Adobe's (NASDAQ:ADBE) Illustrator was released in 1986, it worked only on Apple's (NASDAQ:AAPL) Mac computer which was powerful enough to run the new program. You had to wait until 1993 for the software to become available on Microsoft's (NASDAQ:MSFT) Windows, but, many complained about the quality.

Then, for Adobe's Digital Media, Creative, and Document products to be so pervasive today at the point of being present on most designer's laptops, its partnership with the software giant must have been crucial. This deserves analysis, especially given that the stock has been battered by more than 55% in the last year to trade at less than $300. A comparison with Microsoft in the orange chart below reveals the extent of the damages but these started well before the Figma episode.

Chart
Data by YCharts

This thesis is also of the opinion that it is important to look beyond the astronomical acquisition costs of 50x revenues, and instead focus on the benefits to Adobe's competitive positioning in light of the partnership.

I start by making sense of the acquisition.

The Need for "Collaborative Creativity"

First, Adobe, the creativity company, does not do many acquisitions and is more focused on organic growth, and boasts a rich pipeline. While it is predominantly known for its Reader software in order to open PDF documents, other products like Adobe InDesign and XD are used by graphic designers in creating, and publishing documents for print and, increasingly for digital media.

With everything going digital, comes the concept of “collaborative creativity” whereby, in order to deliver a project involving multi-skilled persons working together on a tight schedule, there is a need for active collaboration as well as the need to be creative. However, with the advent of Covid, the way teams operate has changed, with the team leader no longer being constantly around in order to motivate his team of web designers. He can still use tools like Zoom (NASDAQ:ZM) to communicate remotely with them as they mostly work from home, but, just think of a scenario where the collaboration can be achieved within the very software they are using to do their work. Well, this is enabled by Figma, a little-known company, but with a great collaborative platform used mostly for browser-based design.

peer

Figma Collaboration (www.figma.com)

After initially being adopted by smaller companies, Figma has become popular at Salesforce (CRM) and Atlassian (NASDAQ:TEAM) together with Oracle (ORCL), and Google (NASDAQ:GOOG). This popularity became an acute problem for the creativity company, especially with the usage of Figma at Microsoft, which has traditionally used Adobe products, to the point of threatening the partnership between these two.

The Adobe-Microsoft Partnership

This partnership which started decades ago as I mentioned earlier was reinforced in April 2015 and involved integrations between Adobe’s Document Cloud and Microsoft products, giving users the ability to create a PDF directly in applications like Office 365, which is Microsoft’s cloud-based version of its office productivity tools.

Moving beyond the technical integration phase, the partnership later expanded to the co-selling of applications and co-marketing products, with one concrete example being software integrators having to purchase both licenses of Adobe’s Document cloud and Microsoft products. Therefore, the deal has been lucrative for both.

At the same time, deeper integration at the application level ensured less customization works for both Adobe and Microsoft resellers with fewer support hours in tackling customer support requests. As a result, not only Adobe's annual revenues (as measured on a year-on-year basis increased) but gross profits as well, since the end of 2015 as shown in the charts below. At this point, it can be argued whether Adobe's phenomenal progress was solely due to its partnership with Microsoft, but, one has to admit that there is indeed some coincidence.

seek

The YoY progression in Adobe's annual revenues since 2012 (Seeking Alpha)

Pursuing further, given its product positioning focused primarily on design for the web, Figma is a strategic company and in case it is acquired by someone else, Adobe may see an erosion of market share.

This said Adobe remains committed to Apple and, to this end, Adobe XD, its competing product for Figma was first released as "Adobe Experience Design CC" in March 2016 for macOS, with the Windows version only released eight months later.

Without going into the Mac-Windows debate, choosing between these two is more a matter of preference and finances, but, it is Microsoft's gear that equips most corporations' desktops today, and, Adobe's strategy which consisted of expanding from a niche customer base (composed of macOS users) to a more commoditized one (Windows) has immensely benefited the creative company.

Then, of course, there is the competitive standpoint.

Adobe XD Vs Figma

The acquisition was also done because of the increasing competition faced by Adobe XD, which is part of the Creative Cloud segment, and to this effect, the blue chart below shows how segmental revenues, despite showing progress, seem to have reached a peak. Thus, revenues grew to $2.63 billion in Q3-2022, representing an 11% year-over-year growth, but this is down from the 21% growth experienced in the third quarter of 2021 when revenues were $2.37 billion.

seek

Charts built using data from (Seeking Alpha)

For this purpose, the orange chart above depicts how the year-on-year growth has been decreasing, and the fact that Adobe charges $9.99 per month, or less than Figma's $12 seems not to have helped much.

Adopting a dose of realism, some of the deceleration is also due to Adobe’s revenues being impacted by the war in Ukraine and foreign currency headwinds, but, Figma, on the other hand, seems to be immune to these concerns as it is enjoying "explosive revenue growth". Moreover, as per Adobe's CEO, Figma is profitable too.

Consequently, by buying out the competition, Adobe, not only makes sure that it will see growth in a period when there are risks of market stagnation due to recession risks but should also see more profitability, as Figma's margins get added to its own and there is a reduction in sales and marketing expenses.

Viewed from this angle, the acquisition makes sense, but, with opportunities also come challenges.

Opportunities and Challenges

As per Adobe, the two entities will not merge since Figma will maintain independent operations. This is perfectly understandable given that Adobe XD also has its own strength namely as a vector-based design tool for anything from fully-fledged websites to smartphone apps. There will also be switching costs in case customers move away from products like User Experience ("UX") designer and Adobe’s Photoshop or Illustrator.

seek

Adobe XD (Adobe)

Consequently, equipped with Figma and XD, Adobe has a unique opportunity to "tie up" designers and developers by proposing a broader range of solutions, while progressing to create new markets. Talking figures, Figma's TAM alone is estimated at $16.5 billion by 2025. Add to this, the TAM of $205 billion forecasted by 2024, comprising Adobe Experience Cloud, Document Cloud, and Adobe Creation cloud, then, you have a total market opportunity of over $220 billion.

Therefore, there are opportunities to increment the top line and bottom line as listed in the table below.

1 Growth Opportunities Add to topline growth in 2023
2 Microsoft Partnership Makes sure the partnership is sustained
3 Adobe XD competition and Profitability

Ensuring that growth continues for Creative Cloud, Less operating expenses

4 Total Addressable Market Above $220 billion
5 Execution

Two completely different corporate cultures

Product overlapping features

How Figma's customers will adapt to Adobe

6

Regulations

Buying out of the competition

Regulators in the U.S. and the E.U.

However, the above table also highlights the execution aspect, with, on the one hand, Figma relying on adoption mostly through a freemium business model, while for Adobe, it is primarily a top-to-bottom approach whereby designers have to use its products after its sales representatives have inked an agreement with an enterprise. Hence, some customers may not digest the acquisition, but the fact that Adobe intends to keep Figma as a separate entity should help.

Furthermore, it would be useful to watch how Adobe executives execute the product and go-to-market strategies due to the overlapping features between XD and Figma. Equally important, it will also depend on how things work out with partner Microsoft.

Sticking with the cautionary side, while regulations seem less stringent in the software industry, it is also important to watch out for how the regulatory approval plays out, especially in an economic landscape where the cost of doing business escalates globally. Here, investors should bear in mind that the Federal Reserve's hawkishness aimed at addressing the inflation problem should induce further volatility in the stock market till the end of this year unless the CPI (consumer production index) which was quite hot for the month of August stabilizes.

This is the reason, why, unless you are a trader who wants to profit from a bounce, it is preferable to avoid both stocks for the time being and wait for a better margin of entry. According to some sources, the S&P 500 could drop to 3,020 points or 22% below the current value of 3,873.

Conclusion

In addition to competitive reasons, it makes sense for Adobe to disburse $20 billion to ensure that its products continue to occupy the sweet spot-on Windows desktops as well as in Microsoft's cloud. However, in a market where steady top-line growth, profitability, and stable free cash flows are being prioritized, caution is mandated when investing, especially for the creative company.

Moreover, a lot will also depend on Microsoft, and to this end when responding to a general question about its partners and the use of third-party technology in its cloud during a recent conference organized by Goldman Sachs (GS), Microsoft's EVP and CCO, Judson Althoff, responded that their approach depends primarily on making the customer successful.

Finally, bearing in mind that Microsoft prioritizes the customer over its partners, it is important to monitor the software giant's product strategy while also waiting for Adobe's guidance for 2023 which should comprise Figma's financials.

Wed, 21 Sep 2022 17:16:00 -0500 en text/html https://seekingalpha.com/article/4542401-adobe-microsoft-partnership-explains-figma-acquisition
Killexams : Answering Investors' Questions About Diversification, REITs, Luxury Brands, and More No result found, try new keyword!As they say on PTI, "It's mail time." I'm Chris Hill, and today, we're answering your email and voice mail questions about ... Sat, 15 Oct 2022 00:45:00 -0500 text/html https://www.msn.com/en-us/money/savingandinvesting/answering-investors-questions-about-diversification-reits-luxury-brands-and-more/ar-AA12ZtpE Killexams : Best alternatives to Adobe Premiere Pro in 2022

Finding the best alternatives to Adobe Premiere Pro opens up a wealth of post-production video editors that bring the same Hollywood-grade polish to your films that you’ll find in Adobe’s feature-rich software. 

As an industry-standard tool, it's one of the best video editing software tools on the market. Adobe Premiere Pro packs all the tools and features professionals demand. It even offers seamless integration with Adobe After Effects for total control in post.