# Adobe Reports Record Q2 Revenue



## Canon Rumors Guy (Jun 19, 2019)

> Achieves 25 Percent Year-Over-Year Growth with Strong Creative, Adobe Document Cloud and Adobe Experience Cloud Revenue
> *SAN JOSE, Calif.*–Adobe today reported financial results for its second quarter fiscal year 2019 ended May 31, 2019.
> Q2 FY2019 Financial Highlights
> 
> ...



Continue reading...


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## Memirsbrunnr (Jun 19, 2019)

Canon Rumors Guy said:


> Continue reading...


Yep in the short run price gauging works, in the long run they will loose me as a hobbyist customer.. It's getting way too expensive, and the moment they decide to increase subscription prices, I will be going to follow the way of Joseph Christina leave them behind and BUY some of the competitive software


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## Kit. (Jun 19, 2019)

Just prolonged the $10/mo photography plan for another year.


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## amorse (Jun 19, 2019)

So I'm guessing that this is before the final bill from their spat with Dolby? I guess it's still in the courts so final compensation isn't yet clear. Don't get me wrong, I still use the software as it's the best I've used for my needs, but this is getting handled poorly on Adobe's part. 

I believe they have a licensing agreement with Dolby for inclusion of some Dolby IP in Adobe software, but Adobe didn't disclose accurate user numbers for royalty payment. I think this was one of the reasons Adobe just told users to upgrade or maybe get sued by Dolby - the people using legacy software sold by Adobe with Dolby IP where no royalty was paid by Adobe are at risk of getting sued. You'd think that if the company is seeing very strong financial performance, they could work out a royalty payment for the legacy software they sold rather than warning paying customers of possible litigation from Dolby. That is how users get alienated.


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## -pekr- (Jun 19, 2019)

Apparently 25% growth is not enough, as they tried to raise the price of the Photo Plan.


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## Kit. (Jun 19, 2019)

-pekr- said:


> Apparently 25% growth is not enough, as they tried to raise the price of the Photo Plan.


They did not "try". They added another tier.


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## unfocused (Jun 19, 2019)

Let's save some valuable internet space here.



> Adobe is an evil monopoly and needs to be broken up.
> I'm not going to rent software.
> I don't trust the cloud.
> I'm going to use CS 6 until they pry it out of my cold, dead hands.
> ...



There. I've just saved everyone a dozen internet pages.

You can all go back to arguing about lens flange distances.


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## Hector1970 (Jun 19, 2019)

Well done Adobe. They’ve cornered the market and are exploiting it. For photographers 12 months of hard working R&D have delivered a texture slider. 
Great opportunities for their much smaller competitors. There are a lot of potential customers available if a good alternative is available at s good price.


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## privatebydesign (Jun 19, 2019)

I don’t feel ripped off or exploited. I actually think >$8 a month is a very good deal for what I get, constantly updated professional software that does way more than I ever need.

Compared to the other monthly payments I make Adobe is the least expensive and I need LR/PS a darn sight more than I need the finale to GoT!


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## Graphic.Artifacts (Jun 19, 2019)

Anybody else notice a big performance hit in the latest feature upgrade to Lightroom Classic? I like the new texture slider but I've experience a significant slowdown in the develop module. If I start with a high MP file, drop a few gradients, do a few small clones and then apply dehaze, texture and sharpeing I'm now getting significant lag. I might try deleting the app and reinstalling. Optimizing the catalog doesn't seem to help.


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## privatebydesign (Jun 19, 2019)

Graphic.Artifacts said:


> Anybody else notice a big performance hit in the latest feature upgrade to Lightroom Classic? I like the new texture slider but I've experience a significant slowdown in the develop module. If I start with a high MP file, drop a few gradients, do a few small clones and then apply dehaze, texture and sharpeing I'm now getting significant lag. I might try deleting the app and reinstalling. Optimizing the catalog doesn't seem to help.


I haven’t but I am working on a laptop with smart previews stored internally and the original file stored externally and only attached if I need it to be. Basically the only thing I won’t do at 1/4 resolution on a 27” monitor is sharpen.


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## Memirsbrunnr (Jun 19, 2019)

privatebydesign said:


> I haven’t but I am working on a laptop with smart previews stored internally and the original file stored externally and only attached if I need it to be. Basically the only thing I won’t do at 1/4 resolution on a 27” monitor is sharpen.


I haven't but then I have just build myself a new PC with 32 GB ram


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## privatebydesign (Jun 19, 2019)

Memirsbrunnr said:


> I haven't but then I have just build myself a new PC with 32 GB ram


I’ve also got 32GB RAM.


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## Graphic.Artifacts (Jun 19, 2019)

privatebydesign said:


> I haven’t but I am working on a laptop with smart previews stored internally and the original file stored externally and only attached if I need it to be. Basically the only thing I won’t do at 1/4 resolution on a 27” monitor is sharpen.


I always want things to run faster but it really hasn't been a problem until the last update. Lightroom always seems to bog down after a major feature update and then they sort it out with a few minor performance fixes. The hardware is fine as far as I know but I am working at full resolution on a 5K monitor. I don't usually bother with smart previews but maybe I'll try that if re-installing doesn't help. I have some large files that were unworkable until I down-sampled them in photoshop before importing into lightroom. I've never had to do that.


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## maves (Jun 20, 2019)

In a professional environment Adobe plans are priced pretty competitively. Subscriptions mean everyone is running the latest software so collaborations and cross system file sharing is easy. It also helps manage cashflow. Studios who work with freelancers often had to buy full versions every year which could be a big expense when you're multiplying the expense for multiple people, and it was hard of freelancers too who often had to finance the software every year to be able to work or collaborate with particular companies. 

I am moving from Lightroom classic to Lightroom CC because I can edit and access the same image on my phone, iPad, laptop and desktop. Editing Raws on my iPad while travelling is great. I've had multiple times where I've wanted to show a client an image the was on my desktop and I have been able to show them lightroom files from my phone. For what? $20 something dollars per month for PS, LR, LR CC plus other smaller apps with 1TB of storage. That's pretty fucking cool. (Admittedly I still use CS6 for indesign and Illustrator).

I get that it can be difficult for amateurs and hobbyists, but the truth is you're not their target audience. They have lite versions like adobe photoshop/premier elements, lightroom as a stand alone version and the photography plans (which is excellent value compared to the past), but to expect the full package at hobbyist prices is pretty absurd.

Remember when a full license for Adobe CS6 design standard (Photoshop, Illustrator and indesign) was about $1400 and the full suite was $3k? is this the model that people want to go back to?

My primary job is in architecture and programs like Archicad and Revit can cost upwards of $8k and you still have to pay $1000's more to update every year.


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## Khristo (Jun 20, 2019)

Here in Australia I received just yesterday my Photography Plan renewal. Based on what I'd heard recently I expected another round of increase, followed by me cancelling, followed by receiving a reduced offer which I'd accept. 
However the rate seems to have decreased from AUD14.29/mth to AUD12.99 
If anything the xchg rate is probably worse than LY, so I'm a bit surprised. Anyone else from Oz had the same??


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## Chaitanya (Jun 20, 2019)

Memirsbrunnr said:


> Yep in the short run price gauging works, in the long run they will loose me as a hobbyist customer.. It's getting way too expensive, and the moment they decide to increase subscription prices, I will be going to follow the way of Joseph Christina leave them behind and BUY some of the competitive software


I have already shifted to alternative raw editor and organisers.


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## Memirsbrunnr (Jun 20, 2019)

Khristo said:


> Here in Australia I received just yesterday my Photography Plan renewal. Based on what I'd heard recently I expected another round of increase, followed by me cancelling, followed by receiving a reduced offer which I'd accept.
> However the rate seems to have decreased from AUD14.29/mth to AUD12.99
> If anything the xchg rate is probably worse than LY, so I'm a bit surprised. Anyone else from Oz had the same??


I heard they seem to offer different offers to different people


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## YuengLinger (Jun 21, 2019)

Memirsbrunnr said:


> Yep in the short run price gauging works, in the long run they will loose me as a hobbyist customer.. It's getting way too expensive, and the moment they decide to increase subscription prices, I will be going to follow the way of Joseph Christina leave them behind and BUY some of the competitive software


How long have you been a disciple of J. Christina?


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## Memirsbrunnr (Jun 21, 2019)

YuengLinger said:


> How long have you been a disciple of J. Christina?


I am not a disciple of him.. Mainly because he drinks too many girly tea's in his vids ;-)


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## -pekr- (Jun 21, 2019)

Kit. said:


> They did not "try". They added another tier.



I do remember it differently. First they have tested raising the price in general. And because the audience created a lots of stir about it, they just added it as another tier, which, in my book, sounds quite differently.


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## LDS (Jun 21, 2019)

-pekr- said:


> I do remember it differently. First they have tested raising the price in general. And because the audience created a lots of stir about it, they just added it as another tier, which, in my book, sounds quite differently.



That's what A/B testing is for...


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## Kit. (Jun 21, 2019)

-pekr- said:


> I do remember it differently. First they have tested raising the price in general. And because the audience created a lots of stir about it, they just added it as another tier, which, in my book, sounds quite differently.


They might have tried to hide the ~$10/mo "Photoshop, but not 1TB of cloud storage" plan from their front pages in some regions, but they never tried to make it unavailable, and as far as I know they were only raising prices for it where it was imposed by tax and/or currency conversion rate changes.


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## Ian_of_glos (Jun 24, 2019)

privatebydesign said:


> I don’t feel ripped off or exploited. I actually think >$8 a month is a very good deal for what I get, constantly updated professional software that does way more than I ever need.
> 
> Compared to the other monthly payments I make Adobe is the least expensive and I need LR/PS a darn sight more than I need the finale to GoT!


I don't feel ripped off or exploited either because I have not given Adobe even one penny of my money since I upgraded to Lightroom 6 four years ago. It still works perfectly, and Adobe can increase their prices as much as they want as I will never take out a subscription for their software.
No doubt Adobe will not care a jot about the loss of my custom, but sooner or later their greed will lead to their demise.


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## Ozarker (Jun 26, 2019)

Ian_of_glos said:


> I don't feel ripped off or exploited either because I have not given Adobe even one penny of my money since I upgraded to Lightroom 6 four years ago. It still works perfectly, and Adobe can increase their prices as much as they want as I will never take out a subscription for their software.
> No doubt Adobe will not care a jot about the loss of my custom, but sooner or later their greed will lead to their demise.


Yes! Profit = Greed! How un-altruistic of them! $10 a month is just awful!  Happy their employees have jobs and can feed their families, but to actually want to profit? UGH!  That's why I shoot all my clients for free. Profits are evil! (sarcasm)


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## Ian_of_glos (Jun 26, 2019)

CanonFanBoy said:


> Yes! Profit = Greed! How un-altruistic of them! $10 a month is just awful!  Happy their employees have jobs and can feed their families, but to actually want to profit? UGH!  That's why I shoot all my clients for free. Profits are evil! (sarcasm)


There is a big difference between profit and excess profit.


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## Kit. (Jun 26, 2019)

Ian_of_glos said:


> There is a big difference between profit and excess profit.


Yeah. One is a number and the other is a judgement call.


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## Ozarker (Jun 26, 2019)

Ian_of_glos said:


> There is a big difference between profit and excess profit.


Your opinion is excess profit. In other words, you have appointed yourself the moral judge of what is and is not proper. Problem is, you don't get to decide that for others. It seems envy is a prevalent feature in the formation of your world view. One either buys the product or one does not.

But I'll bite: What is Adobe's appropriate profit? Since you seem to be the judge of what is excessive, tell us what the proper profit for Adobe to profit is as a company? How much should Adobe set their sights on that wouldn't be considered greed in your world? Surely you have something in mind. Just remember, people don't have to use Adobe. It is completely voluntary. Could it be that the problem is greed on your end? Not believing you should pay for the labor and skill of others if they should profit more than you arbitrarily think they should?

Adobe provides a living for more than 21,000 persons.


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## Ian_of_glos (Jun 27, 2019)

CanonFanBoy said:


> Your opinion is excess profit. In other words, you have appointed yourself the moral judge of what is and is not proper. Problem is, you don't get to decide that for others. It seems envy is a prevalent feature in the formation of your world view. One either buys the product or one does not.
> 
> But I'll bite: What is Adobe's appropriate profit? Since you seem to be the judge of what is excessive, tell us what the proper profit for Adobe to profit is as a company? How much should Adobe set their sights on that wouldn't be considered greed in your world? Surely you have something in mind. Just remember, people don't have to use Adobe. It is completely voluntary. Could it be that the problem is greed on your end? Not believing you should pay for the labor and skill of others if they should profit more than you arbitrarily think they should?
> 
> Adobe provides a living for more than 21,000 persons.


The title of the post gives us a clue "Adobe reports record Q2 revenue." This has not been due to the release of some exciting new software but it is simply because of a change to the way they license their existing products. There is now no incentive for Adobe to develop new features because their captive audience will just cough up the £10 per month regardless. That is what I mean by excess profits.
However the jchristina videos demonstrate that it is possible to escape from Adobe' clutches and sooner or later more people will realise that. When that happens Adobe's sales will fall and they might just regret what they have done.
It has happened many times before and companies that were once seen as invincible brand leaders are now no longer trading.


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## Ian_of_glos (Jun 27, 2019)

Kit. said:


> Yeah. One is a number and the other is a judgement call.


I think we need to consider the question of sustainability. When one company generates a lot of additional revenue overnight their competitors will rise to the challenge and will something that represents better value for money. When that happens Adobe will start to lose customers and as soon as that becomes a trend their dominant position will be under threat.


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## Kit. (Jun 27, 2019)

Ian_of_glos said:


> I think we need to consider the question of sustainability. When one company generates a lot of additional revenue overnight their competitors will rise to the challenge and will something that represents better value for money.


I think you need to stop confusing revenue with income.


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## Labdoc (Jun 27, 2019)

Graphic.Artifacts said:


> Anybody else notice a big performance hit in the latest feature upgrade to Lightroom Classic? I like the new texture slider but I've experience a significant slowdown in the develop module. If I start with a high MP file, drop a few gradients, do a few small clones and then apply dehaze, texture and sharpeing I'm now getting significant lag. I might try deleting the app and reinstalling. Optimizing the catalog doesn't seem to help.


Yes, with 32 GB ram and 6GB on the video card. I ran the WIN 10 compatibility program and it suggested running in WIN 8 simulation which sped things up dramatically. Leaving it there for now.


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## Ozarker (Jun 27, 2019)

Ian_of_glos said:


> The title of the post gives us a clue "Adobe reports record Q2 revenue." This has not been due to the release of some exciting new software but it is simply because of a change to the way they license their existing products. There is now no incentive for Adobe to develop new features because their captive audience will just cough up the £10 per month regardless. That is what I mean by excess profits.
> However the jchristina videos demonstrate that it is possible to escape from Adobe' clutches and sooner or later more people will realise that. When that happens Adobe's sales will fall and they might just regret what they have done.
> It has happened many times before and companies that were once seen as invincible brand leaders are now no longer trading.


The fact is that Adobe continues to update the product and add new features. I'm not surprised you don't know this since you have cut the umbilical cord.  Those updates come automatically with frequent updates and bug fixes to the software. One doesn't have to pay to upgrade a Suite to get the updates. I remember my first Adobe purchase of Photo Shop. If I recall correctly, it was hundreds of $$$. Upgrades weren't inexpensive either. Revenue and profit are two different things. It seems Adobe's pricing model makes it far easier for people to get the software with very low cost, and get the updates at no additional cost.

Again, your description of being in "Adobe's clutches", "excessive profits" etc. seem overblown if you ask me... as though the corporation is sinister. Do you work for a competitor?

Of course, get and use what you like. For me, $10 a month is very cost effective. Worth every penny.


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## suburbia (Jun 28, 2019)

That reminds me, need to cancel my subscription! The number of updates has been woeful for something I am paying monthly for and basically only use it now and then.


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## Keith_Reeder (Jun 28, 2019)

suburbia said:


> That reminds me, need to cancel my subscription!



But _how?_

Do you not you realise that Adobe *has you in its clutches*?


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## Ian_of_glos (Jun 28, 2019)

CanonFanBoy said:


> The fact is that Adobe continues to update the product and add new features. I'm not surprised you don't know this since you have cut the umbilical cord.  Those updates come automatically with frequent updates and bug fixes to the software. One doesn't have to pay to upgrade a Suite to get the updates. I remember my first Adobe purchase of Photo Shop. If I recall correctly, it was hundreds of $$$. Upgrades weren't inexpensive either. Revenue and profit are two different things. It seems Adobe's pricing model makes it far easier for people to get the software with very low cost, and get the updates at no additional cost.
> 
> Again, your description of being in "Adobe's clutches", "excessive profits" etc. seem overblown if you ask me... as though the corporation is sinister. Do you work for a competitor?
> 
> Of course, get and use what you like. For me, $10 a month is very cost effective. Worth every penny.


No I do not work for a competitor, but I am approaching retirement and so I a do not want to commit to any subscription services until I am sure what my long term income will be. Anyway Lightroom 6 is fine for me and I really don't care if I am missing all the updates. No doubt one day my camera will not be supported any more so at that point I will need to decide what to do.
Ultimately the market will decide whether Adobe offer value for money or not. I just feel that with Adobe making such huge profits they are likely to attract more competitors and their dominant position will then be weakened.
There are plenty of examples of companies that were too big to fail and yet they did fail, often with tragic consequences. Greed has a tendency to blind people to the facts and they choose to ignore the lessons that history teaches us.


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## Kit. (Jun 28, 2019)

Ian_of_glos said:


> I just feel that with Adobe making such huge profits


What "huge profits"?

Adobe's profits are roughly the same as a year ago, and their profit margins have actually decreased.


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## YuengLinger (Jun 28, 2019)

Keith_Reeder said:


> But _how?_
> 
> Do you not you realise that Adobe *has you in its clutches*?


How exactly "in its clutches"? If I were to cancel my subscription right now, with no plans of starting again later, I would still have all the completed work in large format jpg files in a worst case scenario. Furthermore, I could plan ahead, and spend the last month of my subscription preparing the best work from the past five years for further printing in the future...But how much of your past body of work are you planning to rework with PS at this point?

As for work being done right now and in the future, just go with a competitor. *You are fretting about convenience, which Adobe leverages, to be sure, not an existential crisis! *

Regarding the catalog, my current Windows directory structure exactly mirrors my LR catalog. Yes, I'd lose keywords, but I can still easily find images by date. Perhaps keywording would be the most tedious rebuilding exercise, but, to be honest, I don't much keep up with key-wording except for shots that are to be used only as backgrounds or textures. (Does anybody know a way to export the keywords??? That would be sweet for somebody leaving LR.)

And if you argue that no other program works as well as Adobe, then your choice would be to pay up or compromise.


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## Keith_Reeder (Jun 28, 2019)

YuengLinger said:


> How exactly "in its clutches"? If I were to cancel my subscription right now, with no plans of starting again later, I would still have all the completed work in large format jpg files in a worst case scenario. Furthermore, I could plan ahead, and spend the last month of my subscription preparing the best work from the past five years for further printing in the future...But how much of your past body of work are you planning to rework with PS at this point?
> 
> As for work being done right now and in the future, just go with a competitor. *You are fretting about convenience, which Adobe leverages, to be sure, not an existential crisis! *
> 
> ...


You're directing your indignation in the wrong direction. Please make these points to Ian...


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## YuengLinger (Jun 28, 2019)

Keith_Reeder said:


> You're directing your indignation in the wrong direction. Please make these points to Ian...


I guess I missed your sarcasm.


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## Keith_Reeder (Jun 28, 2019)

For the record:

I used Lightroom.

Then I signed up to the Photography package.

Then I stopped, because other software does a better job for me.

_At no point_ was I awoken in the dead of night and hauled away by Adobe hitmen; my children did not report strangers turning up at school asking probing and strangely threatening questions; and the "horse's head in my bed" count has stayed resolutely at or around zero.

I - just like everyone else - am about as much "in adobe's clutches" as I am at risk from Joffrey Baratheon from Game Of Thrones...

In short - it is histrionic bollocks to ascribe such emotive, sinister motives to a company, just because they changed their business model.

Don't like it, by all means: but stop taking it so bliddy _personally..._


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## Keith_Reeder (Jun 28, 2019)

YuengLinger said:


> I guess I missed your sarcasm.


The "Rolleyes" emoji wasn't enough?


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## YuengLinger (Jun 28, 2019)

Keith_Reeder said:


> The "Rolleyes" emoji wasn't enough?


Not the one CR offers...It looked more like you were worried the sky was ready to fall on you.  When I'm sarcastic, I smile!


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## Ian_of_glos (Jul 4, 2019)

Kit. said:


> What "huge profits"?
> 
> Adobe's profits are roughly the same as a year ago, and their profit margins have actually decreased.



Adobe gross profit for the quarter ending May 31, 2019 was *$2.337B*, a *22.09% increase* year-over-year.
Adobe gross profit for the twelve months ending May 31, 2019 was *$8.641B*, a *22.61% increase* year-over-year.
Adobe annual gross profit for 2018 was *$7.835B*, a *24.54% increase* from 2017.
Adobe annual gross profit for 2017 was *$6.291B*, a *24.96% increase* from 2016.
Adobe annual gross profit for 2016 was *$5.035B*, a *24.27% increase* from 2015.


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## Ian_of_glos (Jul 4, 2019)

YuengLinger said:


> How exactly "in its clutches"? If I were to cancel my subscription right now, with no plans of starting again later, I would still have all the completed work in large format jpg files in a worst case scenario. Furthermore, I could plan ahead, and spend the last month of my subscription preparing the best work from the past five years for further printing in the future...But how much of your past body of work are you planning to rework with PS at this point?
> 
> As for work being done right now and in the future, just go with a competitor. *You are fretting about convenience, which Adobe leverages, to be sure, not an existential crisis! *
> 
> ...


Let's say for arguments sake I had taken out a subscription in 2016, and I had been receiving updates ever since. Then, due to my own financial circumstance I decide that I must now cut back and I can no longer afford the subscription, even though it is only £10 per month. I use Lightroom a lot so that is 3 years worth of work I would lose. Yes I have the original RAW and JPEG files but all the updates would be lost. Isn't that why Lightroom backs up its catalogue every week?
However, the more powerful argument is that, since 2016 I have not been paying the £10 per month subscription. So that is now nearly £400 I have available for the wife to spend on something else.


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## Kit. (Jul 4, 2019)

Ian_of_glos said:


> Adobe gross profit


Gross profit, really? For a software company, which has almost no COGS?

You must be joking.


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## Kit. (Jul 4, 2019)

Ian_of_glos said:


> Let's say for arguments sake I had taken out a subscription in 2016, and I had been receiving updates ever since. Then, due to my own financial circumstance I decide that I must now cut back and I can no longer afford the subscription, even though it is only £10 per month. I use Lightroom a lot so that is 3 years worth of work I would lose. Yes I have the original RAW and JPEG files but all the updates would be lost.


Not in my _actual_ experience. When you cancel your Photography plan, you can still use Lightroom as a local catalogue software, you just lose the functionality of ACR.


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## YuengLinger (Jul 4, 2019)

Kit. said:


> Not in my _actual_ experience. When you cancel your Photography plan, you can still use Lightroom as a local catalogue software, you just lose the functionality of ACR.


Not here. Locks me out altogether.


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## Keith_Reeder (Jul 4, 2019)

YuengLinger said:


> Not here. Locks me out altogether.


Just you, then...


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## Keith_Reeder (Jul 4, 2019)

Ian_of_glos said:


> I use Lightroom a lot so that is 3 years worth of work I would lose. Yes I have the original RAW and JPEG files but all the updates would be lost.



How's that an "Adobe" issue? It's true of migrating from _any _solution to _any _other solution.

Besides, most of the competitors to Lightroom have conversion/migration tools. So "in Adobe's clutches" remains complete nonsense.


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