The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP019: Adobe (ADBE): Designing a Creative Empire w/ Shawn O’Malley & Daniel Mahncke
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May 11, 2025 Shawn O’Malley and Daniel Mahncke dive into the fascinating world of Adobe, the creative software giant that started in a garage. They discuss how Adobe evolved its business model to focus on subscriptions while tackling the challenges from emerging competitors like Canva and Figma. The conversation highlights Adobe's strategic implementation of AI and its commitment to attracting new talent in design. With insights into Adobe's financial performance, Mahncke also shares thoughts on the company's long-term growth potential amidst market skepticism.
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Adobe's Humble Garage Origins
- Adobe started in a garage, naming itself after Adobe Creek behind John Warnock's house.
- The iconic Adobe 'A' logo was designed by Warnock's wife, a graphic designer.
Apple's Role in Adobe's Rise
- Apple's early investment and licensing deal with Adobe legitimized Adobe and sparked desktop publishing.
- This partnering helped Apple offer superior font and graphic resizing without harming document quality.
Adobe's SaaS Shift Success
- Adobe transformed from good to great by shifting to a subscription model in 2013.
- This SaaS model stabilized revenue, reduced piracy, and improved user experience with continuous updates.