Analysis

Our goal is to build the new creative cloud.

We believe the creative process has three key components: Asset Management ("Storage"), Collaboration Tools ("Collaboration"), and Creative Workflow ("Creative"). To evaluate the scope of this market opportunity we used two different tactics:

1. Top → Bottom
   • Sum of Parts
   • Sensitivity Analysis
2. Bottom → Top
   • Revenue Build
   • Proxy Analysis

Top → Bottom

We broke the three components of our businesses into major and minor component parts. Minor component parts can be viewed as a subset of the major addressable market. If these parts are equally weighted, our total addressable market would be +$80.5B.

Sum of Parts

Sensitivity Analysis

We believe in our ability to provide a venture-scale outcome even if we are solely considered a Digital Asset Management system ("DAM").

• Within DAM, SMEs are expected to grow at the highest CAGR. This is because small enterprises face a greater resource crunch than larger enterprises and require better methods for cost optimizations.
• Our internal research and competitor analysis has found that >70% of new deals in the DAM industry are greenfield (new entrants to category). Our product-led motion will allow us to rapidly acquire market share against the direct sales processes of our peers.
• Proliferation of content and increased focus on digital marketing are the driving forces for growth. Estimates suggest software will replace +50% of marketing jobs by 2024.

We have high confidence that we could penetrate 1.75% of the total DAM market ($5.66B by 2022) with our existing product to achieve +$100M in ARR.

Percent of our TAM that comes from DAM vs. other 5 categories (Y axis) against the total penetration we realize in the market (X axis). Highlighted in Yellow is our ARR ($M) if we only targeted the DAM comps and owned 1.75% of the market. Conclusion: There are many different scenarios that lead us toward +$100M in ARR.

Bottom → Top

We will not launch a dedicated enterprise sales approach until 2022. We believe our revenue mix will converge between Plus and Pro and nearly half of total paid customers will remain "Small." Automated features will support account growth and account management will focus on converting Pro accounts to Enterprise.

Revenue Build

Proxy Analysis

In 2017 there were 25M business accounts on Instagram and 800M MAUs. From 2016-2018 Instagram achieved an MAU CAGR of 29%. Today, 20% of Instagram accounts are based in the US, and 4.7% of US business have 20+ employees. Assuming 1) Instagram business accounts grow linearly with MAUs, 2) the mix of business accounts that are US-based is the same as the mix of total accounts that are US based, and 3) the mix of company sizes for US-based business accounts reflects the mix of company sizes in the US, by FY 2020:

• 52M business accounts on Instagram
• 488,800 US-based business accounts for companies with 20+ employees

If we need 32,283 accounts in order to get to $100M in ARR.

• We need 0.06% of total business accounts
• We need 6.6% of business accounts for US-based companies with 20+ employees