What is the breakeven point (BEP)?
2012 2011 2010 2009 2008 Average Difference Operations Revenue 5 4,403,677 $ 4,216,258 $ 3,800,000 $ 2,945,853 $ 3,579,889 $ 3,789,135 Gross Profit $ 3,919,895 $ 3,778,385 $ 3,396,498 $ 2,649,121 $ 3,217,259 $ 3,392,232 -10% Income before income taxes 1,118,794 $ 1,035,230 $ 943,151 $ 701,520 $ 1,078,508 $ 975,441 -71% Net income 832,775 S 832,847 S 774,680 $ 386,508 $ 871,814 $ 739,725 -24% Financial Position Cash, cash equivalents and short-term investments $ 3,538,353 $ 2,911,692 $ 2,468,015 $1,904,473 $ 2,019,202 $ 2,568,347 Working capital S 3,059,608 $ 2,520,672 $ 2,147,962 $ 1,629,071 $1,972,504 $ 2,265,963 Total assets 9,974,523 $ 8,991,183 $ 8,141,148 $ 7,282,237 $5,821,598 $ 8,042,138 Debt and capital lease obligations, non current 1,496,938 $ 1,505,096 $ 1,513,662 $ 1,000,000 $ 350,000 $ 1,173,139 Stockholders' equity S 6,665,182 $ 5,783,113 $ 5,192,387 $ 4,890,568 $ 4,410,354 $ 5,388,321 Additional data Worldwide employees 11,144 9,925 9,117 8,660 7,544Table 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.Exhibit 3b Adobe's Revenue by Type FY10-FY12 (in $ millions, except for percentages) % Change % Change Fiscal 2012 Fiscal 2011 Fiscal 2010 2012-2011 2011-2010 Product $3,342.8 $3,416.5 $3, 159.2 (2)% 8% Percentage of total revenue 76% 81% 83% Subscription 673.2 458.6 386.8 47% 19% Percentage of total revenue 15% 11% 10% Services and support 387.7 341.2 254.0 14% 34% Percentage of total revenue 9% 8% 7% Total revenue $4,403.7 $4,216.3 $3,800.0 4% 11% Exhibit 3c Adobe's Revenue by Business Unit FY10-FY12 (in $ millions, except for percentages) % Change % Change Fiscal 2012 Fiscal 2011 Fiscal 2010 2012-2011 2011-2010 Digital Media $ 3,128.5 $ 3,088.6 $ 2,834.4 1% 9% Percentage of total revenue 71% 73% 75% Digital Marketing 1,058.4 909.4 739.4 16% 23% Percentage of total revenue 24% 22% 19% Print and Publishing 216.8 218.3 226.2 (1)% (3)% Percentage of total revenue 5% 5% 6% Total revenue $4,403.7 $4,216.3 $3,800.0 4% 11%
