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Using Tables A and B calculate: a.Value/month over the first six years (ignore discounting) for perpetual license and subscription. Table A Revenue Comparison of Perpetual

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Using Tables A and B calculate:

a.Value/month over the first six years (ignore discounting) for perpetual license and subscription.

image text in transcribedimage text in transcribed
Table A Revenue Comparison of Perpetual License versus Subscription Model Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Customers Perpetual License Model Existing Customer Upgrade every year $399 $399 $399 $399 $399 $399 25% Upgrade every major release $649 $649 $649 45% Upgrade every other release $949 $475 15% New Customers Upgrade every year $1,899 $399 $399 $399 $399 $399 10% Upgrade every 3"d release $1,899 5% Subscription Model Individuals ($49.99/month) $540 $459 $395 $343 $302 $269 60% Teams ($69.99/month) $756 $643 $553 $481 $423 $377 40%Table B Creative Cloud Metrics 02 12 Q3 12 Q4 12 Q1 13 Subscribers at the end of the quarter 100,000 194,000 326,000 479,000 % choosing annual (vs. month-to-month) 79 88 90 92 % choosing full CC (vs. standalone product(s)) 66 79 81 81 ARR ($ million) 43 90 153 233 Source: Company data

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