Adobe Inc. facts for kids
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Trade name
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Adobe |
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Formerly
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Adobe Systems Incorporated (1982–2018) |
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| Industry | Software |
| Founded | December 1982 Mountain View, California, U.S. |
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| Headquarters | Adobe World Headquarters,
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U.S.
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Area served
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Worldwide |
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Key people
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| Services | SaaS |
| Revenue |  US$21.51 billion (2024) |
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Operating income
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US$6.741 billion (2024) |
| US$5.560 billion (2024) |
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| Total assets | US$30.23 billion (2024) |
| Total equity |  US$14.11 billion (2024) |
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Number of employees
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30,709 (2024) |
| Footnotes / references Financials as of November 29, 2024[update]. |
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Adobe Inc. is a big American computer software company. It is based in San Jose, California. Adobe makes many different computer programs. These programs help people create things like websites, photos, videos, and animations.
Adobe is famous for software used in graphic design, photography, and video editing. Some of its most well-known products include Adobe Photoshop for editing images and Adobe Illustrator for creating drawings. They also created Adobe Acrobat Reader and the Portable Document Format (PDF), which is a common way to share documents.
Adobe used to sell its programs in a package called Adobe Creative Suite. Now, most of its products are available through a subscription service called Adobe Creative Cloud. This means you pay a regular fee to use the software. Adobe also makes software for digital marketing.
The company was started in December 1982 by John Warnock and Charles Geschke. They left another company, Xerox PARC, to create their own software. In 1985, Apple Computer used Adobe's PostScript technology in its printers. This helped start the "desktop publishing" revolution, making it easier for people to design and print documents from their computers.
As of 2022, Adobe had over 26,000 employees around the world. They have offices in many U.S. cities and in India. Adobe is a very important company in the design and creative software world.
History of Adobe Software
Starting with PostScript (1982–1993)
Adobe began in John Warnock's garage. The company's name, Adobe, comes from Adobe Creek in Los Altos, California. This creek ran behind Warnock's house. The creek was named after "adobe," a type of clay used to make bricks. Adobe's logo, a stylish "A," was designed by John Warnock's wife, Marva Warnock.
In 1982, Steve Jobs tried to buy Adobe for $5 million, but the founders said no. They later agreed to sell him a part of the company. Jobs paid a lot of money and also paid in advance for a five-year license to use PostScript. This deal helped Adobe become profitable in its very first year, which was a big achievement for a Silicon Valley company.
Warnock and Geschke decided to focus on creating special printing software. They developed the Adobe PostScript page description language. PostScript became the first international standard for computer printing. It could describe how letters looked in many languages. By 1987, PostScript was the standard for printers. Over 400 software programs used it, and 19 printer companies had agreements to use it.
Adobe also created digital fonts. These were special designs for letters and numbers. Apple later made its own competing font standard called TrueType.
Creative Software Begins (1986–1996)
In the mid-1980s, Adobe started making software for everyday computer users. One of their first programs was Adobe Illustrator. This program was for drawing using "vectors," which are like mathematical lines and shapes. Illustrator helped make PostScript-enabled laser printers very popular.
Over the next few years, Adobe developed or bought many important programs. They got Adobe Photoshop from John and Thomas Knoll. Photoshop is famous for editing photos. They also acquired Adobe FrameMaker and Adobe After Effects. After Effects is used for visual effects in videos. Adobe also developed Adobe Premiere Pro, a video editing program. Adobe joined the NASDAQ stock market in August 1986.
PDFs and File Formats (1993–1999)
In 1993, Adobe introduced the Portable Document Format, or PDF. They also released Adobe Acrobat and Reader software to view PDFs. John Warnock created the PDF to make a digital document format that could be easily shared. It could show text, images, and fonts.
Adobe kept the PDF format private until 2008. Then, it became an international standard. This meant anyone could use it freely. When Adobe bought Aldus, they also gained control of the TIFF file format, which is used for images.
Creative Suite and Macromedia (2000–2009)
The 2000s brought many changes for Adobe. In 2003, Adobe bought a sound editing program called Cool Edit Pro and renamed it Adobe Audition. Also in 2003, Adobe launched the first Adobe Creative Suite. This was a package that bundled many of their creative programs together. It included InDesign, Illustrator, Photoshop, and more.
In 2005, Adobe made a big purchase: they bought Macromedia for $3.4 billion. This added many popular programs to Adobe's collection. These included Adobe Dreamweaver for web design and Adobe Flash for multimedia content.
In 2008, Adobe released Adobe Media Player. They also stopped developing their older web design software, GoLive, and focused on Dreamweaver. On June 1, Adobe launched Acrobat.com, which offered online tools for working together. Creative Suite 4 came out in October 2008.
In late 2008 and 2009, Adobe had to lay off some employees due to a weak economy. In 2009, Adobe bought Omniture, an online marketing and web analytics company. Its products became part of the Adobe Marketing Cloud.
Changes and Challenges (2010–2014)
The early 2010s saw disagreements between Adobe and Apple. Apple decided not to support Adobe Flash on its iPhones and iPads. Apple's CEO, Steve Jobs, said Flash was not reliable or secure enough. Adobe then announced in 2011 that they would stop developing Flash for mobile devices. They decided to focus on HTML5 instead.
In 2011, Adobe also bought Nitobi Software, which made a tool called PhoneGap for creating mobile apps. Adobe later gave PhoneGap's code to the Apache Foundation.
In 2013, Adobe faced a major security problem. Parts of the source code for their software were stolen and put online. Also, information from many Adobe customers was accessed. In 2012, about 40 million payment card details were affected by a hack at Adobe.
A lawsuit was filed against Adobe and other companies in Silicon Valley. The lawsuit claimed that these companies had unfairly limited how much their employees could earn. In 2014, Adobe and the other companies agreed to pay $324.5 million to settle the lawsuit.
Adobe Creative Cloud (Since 2011)
In 2011, Adobe introduced Adobe Creative Cloud. This was a new way to get their creative software. Instead of buying a program once, users paid a yearly subscription fee. This was different from the old way, where you bought a license that lasted forever. The initial cost for the Creative Suite could be very high.
When Creative Cloud was first announced, some people liked the idea of a subscription. However, many users were unhappy about the change. They felt the new subscription model would be too expensive for individuals and small businesses. By 2013, Adobe decided that Creative Suite 6 would be the last version sold with a one-time payment. After that, a Creative Cloud subscription would be the only way to get the newest versions of programs like Photoshop and Illustrator.
Even though many users were unhappy, Adobe gained 500,000 Creative Cloud subscribers in its first year. The switch to subscriptions did not stop software piracy, though. Cracked versions of Adobe Photoshop CC 2013 were found online very quickly after its release.
More Acquisitions and Figma (2018–2023)
From 2018 to 2023, Adobe bought more companies to improve its Creative Cloud and Adobe Experience Cloud services. These purchases included Magento Commerce for e-commerce, Marketo for marketing, and Workfront for marketing collaboration. In 2021, Adobe also added payment services to its e-commerce platforms.
In September 2022, Adobe announced its biggest purchase ever: they planned to buy Figma for $20 billion. Figma is a design tool that competes with Adobe XD. However, governments in the U.S. and Europe were concerned. They worried that if Adobe owned Figma, it would have too much control over the design software market. Adobe already had a very large share of this market. In December 2023, Adobe and Figma decided to cancel the merger because of these concerns. Adobe paid Figma a $1 billion fee for the canceled deal.
Recent Events (2024–present)
In June 2024, the U.S. Federal Trade Commission (FTC) and the U.S. Department of Justice filed a lawsuit against Adobe. They claimed that Adobe's subscription model had hidden termination fees and pushed customers into more expensive plans.
Also in June 2024, Adobe updated its terms of service. This happened after users were worried that Adobe might use their work to train its Artificial Intelligence (AI) models. Adobe then clarified that it would not use user data to train its AI or claim users' work as its own.
Adobe Products
Adobe offers many software programs, online services, and file formats. Here are some of them:
| Name | Icon | Type |
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| Photoshop |  |
For editing photos and creating images |
| Photoshop Elements |  |
A simpler photo editor for hobbyists |
| Illustrator |  |
For creating drawings and designs using vectors |
| Acrobat DC |  |
For viewing, creating, and editing PDF documents |
| FrameMaker |  |
For creating complex documents |
| XD |  |
For designing websites and mobile apps |
| InDesign |  |
For designing layouts for print and digital publications |
| InCopy | .svg){kind=icon} |
A word processor for editing text in InDesign layouts |
| Lightroom |  |
For processing and organizing raw photos |
| Express |  |
A design tool for web and mobile applications |
| Name | Icon | Type |
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| Dreamweaver |  |
For building websites |
| Flash |  |
A platform for multimedia content (no longer supported on mobile) |
| Name | Icon | Type |
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| Premiere Pro |  |
For professional video editing |
| Premiere Elements |  |
A simpler video editor for hobbyists |
| Audition | .svg){kind=icon} |
For editing audio |
| After Effects |  |
For creating visual effects and motion graphics |
| Character Animator | .svg){kind=icon} |
For animating characters using motion capture |
| Prelude | .svg){kind=icon} |
For organizing and logging video footage |
| Animate | .svg){kind=icon} |
For creating computer animations |
| Name | Icon | Type |
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| Captivate |  |
For creating online learning courses |
| Presenter Video Express |  |
For recording and editing screen videos |
| Connect | .svg){kind=icon} |
For online meetings and video calls |
| Name | Icon | Type |
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| ColdFusion |  |
A platform for quickly building web applications |
| Content Server |  |
For managing digital rights for e-books |
| LiveCycle |  |
Software for business processes |
| Name | Icon | Type |
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| Aero | .svg){kind=icon} |
For creating and sharing augmented reality experiences |
| Dimension |  |
For creating 3D scenes and designs |
| Substance 3D |  |
A set of tools for creating 3D models and textures. |
Formats
Adobe has created or supported several important file formats. These include the Portable Document Format (PDF), its older version PostScript, ActionScript, Shockwave Flash (SWF), Flash Video (FLV), and Filmstrip (.flm).
Web-hosted services
Adobe also offers online services. These include Adobe Color, Photoshop Express, Acrobat.com, Behance, and Adobe Express.
Adobe Stock
Adobe Stock is a service where you can find and license high-quality images and videos. It has over 57 million royalty-free images and videos. Adobe bought Fotolia, another stock content marketplace, in 2015. Fotolia was later integrated into Adobe Stock.
Adobe Experience Platform
This is a set of products for managing content, development, and customer relationships. It uses Adobe's "Sensei" artificial intelligence (AI) and machine learning technology. It was introduced in March 2019.
Concerns and Criticisms
Pricing Concerns
Adobe has received criticism for its pricing. Sometimes, the prices for its software were much higher in countries outside the U.S. For example, the Creative Suite 3 Master Collection was £1,000 more expensive for European customers. Many users signed a petition to protest these "unfair prices." In 2009, Adobe even increased prices in the UK, even though the British pound was weaker.
Some people have also listed Adobe Reader and Flash as "most hated programs."
Security Issues
Hackers have sometimes found weaknesses in Adobe programs, like Adobe Reader and Flash Player. These weaknesses could allow unauthorized access to computers. Security researchers have pointed out that Adobe products have had many security vulnerabilities.
Adobe was also criticized for collecting user data through its Creative Suite 3 software. Adobe explained what the software did and admitted they "could and should do a better job" with security. When a security flaw was found in Photoshop CS5, Adobe first said they would not fix it unless users paid for an upgrade. After many complaints, Adobe decided to provide the fix for free.
Adobe has also been criticized for including unwanted software with its updates, like third-party browser toolbars.
Customer Data Breach
In October 2013, Adobe announced that some customer data had been stolen in a security breach. Initially, they said 2.9 million customers were affected. Later, Adobe admitted that 38 million active users had their IDs and encrypted passwords accessed. The company did not clearly state if all personal information, like email and physical addresses, was encrypted.
A large file containing 152 million usernames and passwords from Adobe was later posted online. A password security firm noted that Adobe did not use the best methods to protect these passwords. Another security firm showed that Adobe used a weak encryption method, making it easier for hackers to get information.
Many of the affected credit cards were linked to the Creative Cloud subscription service. Adobe offered free credit monitoring to affected U.S. customers. Computer experts warned that because hackers got copies of Adobe's software source code, they could find and use other weaknesses. This breach was called "one of the worst in US history" by one security researcher.
Fair Competition Concerns
In 1994, Adobe bought Aldus Corp., which sold a competing software called FreeHand. FreeHand was a direct competitor to Adobe Illustrator. The Federal Trade Commission (FTC) stepped in and made Adobe sell FreeHand back to another company. They also banned Adobe from buying FreeHand or similar programs for 10 years.
Later, Macromedia bought the company that owned FreeHand. When Adobe bought Macromedia in 2005, it stopped developing FreeHand in 2007. This made FreeHand outdated. With FreeHand and Illustrator, Adobe controlled the main programs for professional illustration on Macintosh computers.
In 2011, a group of FreeHand designers filed a lawsuit against Adobe. They claimed Adobe had acted unfairly to eliminate FreeHand instead of competing fairly. The lawsuit was eventually settled. Many in the FreeHand community believe Adobe should make the product open-source if they won't update it themselves.
Cancellation Fees
In April 2021, Adobe received many complaints on social media about its cancellation fees. A customer shared that they were charged a $291.45 fee for canceling their Adobe Creative Cloud subscription. Many other users also shared their high cancellation fees. This led some people to suggest using pirated Adobe products or cheaper alternatives.
In June 2024, the U.S. Department of Justice and the FTC filed a lawsuit against Adobe. They claimed that Adobe's subscription and cancellation policies were misleading. The lawsuit stated that Adobe used small text and complex links to hide early termination fees. These fees could be 50% of the remaining contract value if users canceled early in the first year. Customers trying to cancel often faced difficulties, like dropped calls or being transferred many times. Some customers were even billed by Adobe after they thought they had successfully canceled.
2024 Terms of Service Update
On June 5, 2024, Adobe updated its terms of service for Photoshop. The new terms said that Adobe "may access your content through both manual and automated methods, such as for content review." This caused a lot of concern among Adobe users. They worried that their work, even if it was private or under a non-disclosure agreement (NDA), might be used to train Adobe's generative AI.
Adobe responded the next day to clarify. They stated that they would not use user data to train generative AI or claim users' work as their own. However, they did not fully address the part about viewing work under an NDA.
See also
In Spanish: Adobe (empresa) para niños
- Adobe MAX
- Digital rights management (DRM)
- List of acquisitions by Adobe
- United States v. Elcom Ltd.
Images for kids
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Logo of Adobe Systems, 2017–2024
