In this new—dare I say, recurring—Aria blog series, we’ll take a look at the week’s news in monetization, recurring revenue, subscription and usage-based services, and billing industry news. We’ll look at successes and failures, mergers and acquisitions, and, when we’re really lucky, the quirkier side of this wonderful business we’re in.
This week, we have awesome news from Adobe, a delicious decision by Mealpass, millions going to Metromile, and an announcement from Aria.
Adobe Reports Record Revenue for Q3 2016
Adobe put the first nail in the coffin of the perpetual software license in 2013 when it announced it would kill Creative Suite and go subscription only with its new product, Creative Cloud. Initially, the design world (and Wall Street) was apoplectic. Most quickly warmed up to the idea of subscription-based usage of cloud software, and just three years later, this model is pretty much the norm.
This week, Adobe has once again proven the success of the subscription-only software model when it announced record profits for Q3 2016. It achieved record quarterly revenue of $1.46 billion, representing year-over-year growth of 20 percent. This was driven by strong Creative Cloud and Document Cloud adoption and by Adobe Marketing Cloud, which achieved record revenue of $404 million. We’re proud to have them as an Aria customer!
Subscribe to Lunch: Mealpass Rebrands as MealPal, Launches in D.C. and Chicago
This week, I personally discovered that you can pretty much get a subscription for anything—including lunch. Even for someone who works in the subscription billing biz, grew up in Silicon Valley, and totally got Dollar Shave Club right when he saw the first super-clever viral video, getting a lunch subscription struck me as a bit weird. Or at least a bit too San Francisco Tech Hipster-y. But the service is only $7 a day, and in an area where lunch costs about as much as a compact car, that’s pretty brilliant.
The news, besides my subscribing to this delicious service, is that Mealpass rebranded itself as MealPal. Excellent move! The new name is way friendlier and sounds less like lunch on a bus. And lucky for D.C.ites and Chicagoans, they announced launches in those two cities, too. You’ll never forget your lunch or pay $19 for a food truck sandwich again!
Metromile Raises $191.5 Million, Acquires Mosaic Insurance
With the advent of transportation as a service (TaaS), ridesharing, carsharing, crowdsourced rides and many other non-buying-a-car-and-driving-it type services, we’re seeing a rapid change in the way we think about driving. Soon, the days of buying your first car from a loud-mouthed and loud-tied dirtbag on a dusty lot will be replaced by signing up for Zipcar and tagging in to your first autonomous Prius. There will be a lot less burnouts and backroad shenanigans, which will be sad, but also a lot less accidents and deaths, which will be kinda cool.
Metromile and other pay-by-the-mile insurance providers see the writing on the wall, and apparently, so do investors. This represents a major shift to customer-centric models that not only give consumers more choice, but personalize services and payment options.
In three successive rounds of funding, Metromile racked up $191.5 million dollars in funding, primarily to buy an insurance carrier called Mosaic Insurance to handle the underwriting of its own policies, as well as to expand its business and continue building its platform.
Aria Systems Announces Aria for Connected Vehicles
In tooting our own horn news, this week Aria announced Aria for Connected Vehicles, a new platform for monetizing connected services for anything that has wheels. With the introduction of Aria for Connected Vehicles, we are very excited to be an integral piece of the fascinating changes that will occur in the transportation landscape in the coming years. We are proud to help power the growth of emergent markets and technologies, and short of space travel, there is hardly anything as captivating as the emergence of this IoT on wheels.