Adobe: Creative Cloud Renewal Rate Over 80%, Tops Expectations

ProDesignTools

Charting strong growth since its initial release and receiving near-five-star ratings from customers, Adobe’s new all-in-one Creative Cloud offering has also been benefiting from high renewal rates from current and returning customers, the company divulged during a recent business presentation…

This is the first time that Adobe has publicly disclosed this information. In response to the audience question, “What statistics can you share with us on Creative Cloud renewal trends?” CFO Mark Garrett said:

"So back in 2011 when we announced this transition, we had modeled 80% retention – which we thought was conservative – and that’s planning out to be true, meaning our retention is better than 80%. We haven’t disclosed exact numbers yet, but the reten­tion is well within the constraints of the model that we set and the guidance that we set. So we’re really pleased with that."

Garrett continued:

"Obviously there are two pieces to that – there are people that are renewing who came in at full price, and then there are people who came in at a promotional price that goes up at your first anniversary. And with both of those we’re seeing renewal rates well within the model that we set." read more...