Adobe (ADBE) 18 Jun 212021 Q2 Earnings call transcript

Good day, everyone, and welcome to the Second Quarter Fiscal Year ‘21 Adobe Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Jonathan Vaas, VP of Investor Relations. Please go ahead, sir.

Good afternoon, and thank you for joining us. call John Shantanu and Murphy, the and Adobe's CFO. on and CEO; Executive me today Narayen, are President With Vice President year On second will we XXXX fiscal this financial discuss results. call, quarter Adobe's crossed should you ago. of release, one a By the now, approximately have wire the copy press which hour financial We've also and posted Investor Adobe's our of on PDFs Relations remarks prepared results website.

based want call, on from these statements. of in the product in this including Before June financial contains some plans, as XX, we and differ forth information forward-looking involve information that Actual is get of today, statements materially to emphasize results may set started, risk, and our I assumptions. targets and those discussed uncertainty that

disclosure to is XX-days. webcast as two press are and as webcast in and in issued of be the release today, discussion I discuss call SEC we Reconciliations Adobe’s participants reproduced otherwise the Adobe’s we may between written available now the be the that without are Relations website. will should prior a being For for An archive being playback these permission. audio statements will conference live risks, of release webcast also and well of On financial the made audio Adobe.com re-recorded, or on recorded Call The measures. Shantanu. advised this over call GAAP you and will for Investor approximately is purposes. available this not call the or distributed turn filings. non-GAAP on call Adobe’s earnings forward-looking review our the

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Index, the Digital enables is new bookings customer underserved Executive in Mobile XX% and $X.X partnerships mark evaluations to to GlaxoSmithKline, of partnership is Lightroom and to Sign which In app for workforce $XXX provide Highlights Across globe and medium-sized greater desktop with Experience Digital to of Wells for strong offerings, our growth spending President Chief and that we applications, store XX% FedEx momentum, save customer strong Adobe to and over held increase XX a am In next our reach across business explosive revenue an marketing for doubling year-over-year footprint projected U.S. million Summit, QX, a Experience growth. continued ever

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in including a Hubs spot Nike, industry Marketing being and and T-Mobile. all Continued for the fourth Gartner with Multichannel in recognition And across segments, key Marketing report analyst for has the Wave management like NTT been wins leader row. Enterprise published in brands experience Magic five the leadership customer year Software each Quadrant Docomo NatWest, customer achieving the times Suites, a the named of the Forrester top

are results business. tremendous We across our proud and the of momentum

for plan regions times. recover flexible different post-pandemic world, we remain As as we different will a at

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thank and most our dedication what the to asset, the advancing Adobe leveraging in-person was of special, to makes innovation injustice. year pandemic, for equity employees violence our I by racial around committed our of are We that but efforts people. a of the culture, to in interactions we want only have all digital inclusion. by harness creativity, I resilience and not proud our and best during diversity, by important their am driven made marked and progress and

we in strides our community. Black much left the week, the accelerate and representation, growth know so made have do. to approaches later as But to of advancement have Juneteenth we We strategy this

Geschke. spotlighting in efforts Pride employee an and celebrate represent honoring Adobe. our diverse supporting June, are John and Geschke, and to in our longstanding Chuck instilled Warnock These Month commitment work, communities inside base we on communities and mark Chuck both As Adobe’s outside left our impact we making the in LGBTQ+ of we QX, Adobe, industry we and co-founders, the and live lost us. co-founder In principle an our technology Chuck a the indelible beloved where world.

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utilize awareness in was QX net increasingly Shantanu. data-driven new model our Cloud with With Experience amounts DDOM, strong Digital Digital showing Experience Thanks, revenue an all customer optimize our operating digital traffic to products. our how acquire world. an quarter customers driving to with own are and solutions Adobe.com bookings customers in enterprise journeys, our types technology Adobe, or increasing we continue raise resonating of of for to of excellent to and ARR in growth, Media, new

We continue product for and sales growth also headcount to invest in marketing, innovation. while increasing drive in QX to

$XX.XX billion, growth. As operations the record growth $XXX during of we billion; $XX.XX and billion; revenue in we stock included: year-over-year $X.XX result, XX% XX% our Media revenue we achieved In earnings $X.XX of share financial and and from earnings of represents $X.XX a quarter; revenue of billion represents of QX new diluted year-over-year Digital billion, in flows cash of achieved million; Creative Media net Experience per X.X $X.XX achieved and Digital ARR. new growth, $X.XX; $XXX exited share net the diluted of year-over-year Media non-GAAP million Business QX, ARR $XXX XX% approximately which of of per Adobe million; added highlights repurchasing which the billion Digital quarter. Digital Digital ARR. of of shares revenue RPO $X.XX of with GAAP Creative We segment, quarter million and exiting Media revenue our

recovery in through terms renewal; retention we which revenue Cloud of Stock all in insights; year-over-year included: represents and and SMB segment net Adobe enterprise Cloud peers achieved Document net ARR million and in growth; of Teams the industry quarter. individuals app business, momentum in segment, offering; outpace driving Creative account drivers $XXX of XX% applications. quarter with DDOM marketing ARR and with expansion store driven segments; new new and our which Second mobile utilizing $XXX user million, by Creative generating our across our of subscriptions our customer for education iPad Creative Document success driven Cloud sales institutions; growth, products with at licensing, the Adobe campaigns the revenue added in global strong continues both by growth and to acquisition, renewal accelerated new

Document licensing, across and Cloud the our subscriptions success greater accounts. for Acrobat broad and Accelerated offering demand growth our seat quarter; expansion with than exiting subscriptions; Acrobat segment; Teams the subscription quarter awareness all conversion conversion driving Sign, Second continued adoption of improved in unit Web with licensing grew geos; enterprise increasing driving year-over-year offering, of in drivers ARR SMB to strong on top-of-funnel which Adobe.com. included: paid strength Adobe enterprise across XX%

QX our we Digital growth. XX% Digital $XXX Experience subscription million, representing in $XXX revenue which million, year-over-year to Experience growth. represents revenue achieved was year-over-year segment, Turning of XX%

On across Adobe or to revenue we throughout Deal the quarter, closing Summit, in success strategic customer management QX. heels and the experience earlier customer of deals sustained generating with solutions. contributing performance pipeline portfolio closing of in our several the transactions our QX large had in was CXM quarter, volume

solutions; our an our success solution system create as Analytics, Commerce offerings value continued offering, realize we to work employees from customers workflow We segment, with with continue digital combining and best-in-class macroeconomic all T&E customer geographies; see in performance of with as transformational, in are our the of site broad marketing record; sizes to CDP on Savings Experience awareness for Customer from Digital which in and multi-solution the commercial quarter by: and strengthening renewal innovations and driven Business industry-leading strong investing Platform was Workfront momentum; home. transformation. Campaign a driving are enterprises continue including recovery, during enterprise CXM of recent Experience and rates. expansion and and Journey our up bookings across including adoption native Real-Time momentum signing to continuing and and applications of partnerships AEP, engagements build built Adobe operations Analytics, the or AEP,

rate year-over-year and and business From year-over-year We to expectations during From the effective currency in a perspective, the was million. quarter-over-quarter before are increased and quarter. of the QX. of basis, a was our after perspective, non-GAAP employees million. Net we with investing as XX.X% GAAP net FX revenue FX hedging. increased travel facilities revenue from by a $XX future QX a $XX impacts to basis both the hedging, tax on reimagine return currency Adobe’s increase applying revenue million, XX% our $XX and on of many line in from by work, for offices in impacts our currency

to was year-ago Deferred Revenue and XX-days licensing quarter Our the exiting trade growing year-over-year. DSO was to exiting billion by last $X.XX during quarter. XX-days, the which compares billion, year-over-year XX% the in benefitting XX-days strong RPO quarter, enterprise quarter. from $XX.XX grew QX, XX%

revenue exiting cost cash record Our in million remaining a approximately approximately Media and growth QX approximately quarter XX% share the on new of year-over-year; seasonality shares; $X.XX million. approximately subscription non-GAAP basis; in growth was $XX of Cash short-term granted investment billion. of billion count $X.XX earnings and Total August. approximately XXXX. of repurchased segment at Digital year-over-year; billion; targets growth tax $XX.X following QX revenue from revenue months XX% of approximately in share XXX Digital currently per The non-GAAP May return have XX% $X. million; $XXX factor were billion. QX of Adobe of flows on ARR million of which $X.XX; Experience conditions We operations summer Experience approximately Digital authority, billion X.X in rate GAAP ending basis segment associated and of $XXX XX% current a million approximately We revenue was of December expected a XX% with approximately net $XXX year-over-year; of position and Media and July and shares a $X.XX per of granted digital GAAP was earnings macroeconomic of share the approximately in XXXX, June,

typical performance, are the strength. momentum our and to continue, We first-half expect pleased with we QX with

model our year XX% scale are growth, built creativity, customer we experience turn profitability. revenue digital can to long-term across Few the a operating to boast half call track management, we will of seeing margins I strong operator questions. books. with and already world-class With recurring-revenue in the for documents companies record first for another and growth plus the over are and take momentum the now a on your

to Keith you. Instructions] First Morgan go Weiss Thank [Operator from Stanley. we'll

Your line open. is

for question guys taking you, really Thank the and nice quarter.

Digital a dig It's actually quarter bit. net in a comp remarkable were quarter. growth accelerated bit that broadening most little you base business, into pretty could of I where fold. where Media into and that and sort you're this you of growing? little a who customers about there's quite are difficult guys that large a broader momentum coming a worried new of momentum, within it's talk scope which about the in think and of building Can seeing hoping are that lot was investors the I success is is a obvious And already in kind well ARR enabling the building you that

Thanks, Keith.

really as operating to of engagement. As ARR us attribution quarter. associated you all through data-driven allows from And have aspects model way quarter customer incredible it we all the funnel is a which saw the marketing and the through with discover, know, usage our deal throughout actually done said, we great as great Digital with And the you well. was this linearity Media that

as are significant also relates had who onto In are of portion is base. a we coming platform, the we define terms that mentioned, strong on customers way other to new offering. the the very Keith of a XD&I. Specialists and new the Acrobat, as customer mobile communicators it a hand

spectrum. But are photography everybody so offerings last Acrobat. Acrobat say to the is seeing year. as all And targeting and prepared know, good also most we're revival small business. business think talked segment last to Teams And also some consumers about the was across from would communicators, is professionals, the the I'd adoption And the really we say creative really remarks, then I of our we I impacted in thing of and the medium video as

Keith. really with So, pleased it,

businesses and you geographies of offerings, saw services in strength as product across we across good new said, some QX. across and the So

one QX, sequentially. new about for is sneak And can it. net if Got I guide the John on guide the ARR in into down XX%

seasonally. I in you in or more QX of broader one-time or that be will we that think QX, looking seasonal sort than than of anything QX? seasonality, see of aware there Is decline in terms bigger of either items, should should something explains we for if into we be kind normal or than out there's

Yeah. Thanks, QX. QX, When for we've guide the ARR largest at Keith. look I for the it's done into guide

we about didn't last As strange year year, being typically quarters, last we of talked the couple and saw was because kind down. locked of of right, seasonality pandemic a we the really everybody see

past. starting are that we're things As that to we to kind up, of return the a open some saw anticipating in seasonality of

And into ARR highest so QX. But the really in we guide. we've guide factored can ever actually excited that we're that the target

performance is still So we momentum the overall, the business. and in great see can

Outstanding, great guys. job,

you. Thank

Next we'll Zukin Alex to go from Wolfe Research.

open. is line Your

Hey, question. guys, thanks for taking the

the of side business. So I'll the take other

revenue strong. the indicator, from whether perspective? Digital Experience was was and RPO, And you you again, how here that about Digital Experience and was the every it whether some growth of since subscription On the I on a quarter, we maybe should think saw what it Can mean, changed pandemic, what's pipelines? revenue the side. from the business to talk

with about across CEOs pandemic, through been be and out, is solutions we've Alex, an to think to going strong starting it interest investment quarter. talking single that point you Experience As And right recognize the the with have Digital in conversations our to a the And belief, the when pay. have they way how I are people only to customers I vertical is digital. is that that every investment engage that was

is perspective, digital think that that macro I it's and and customer digital on. within want as something center money transformation, experience they to management transformation a first, spend clear from So front

or building thing platform. on those BXC, we're new touched and The you second both I experience. the BXB clearly a John other against have I ability experience Journey deliver Customer is, the you're on to top you're whether and And the customers, are would now that, services with because Analytics execution of resonating the say have to whether right our that personalized

think and I the fact I the summit, an was certainly the would I ability accelerant and delivering, is engage innovation say we're thing that customers, to we for that the So these the think with had second business. that

say that these thing from we're third I would to very making. ecosystem customers investment is value ecosystem of the the the quickly The that and derive the ability ensure

converting helps terms think terms revenue, enterprises. of of of in in also I helps to the but bookings it that growing with both book business

would I of So, all to them. speak three

execution business, think think our customer look at seeing if the close terms continue revenue over need. we in that strong. in growth of I you revenue we're against the product be that business subscription right to XX% as that well, meets growth, XX% targets that have And, the I we in to clearly company optimistic a that has been

our What's quarter, driving of quick right for On flow, ahead second anything what's estimates way? free we're flow flows? collections or margin the free on not through here Is guiding just that cash the as the John. one that? strong updating the well squeezing as in thinking and just year, maybe deals? the to just larger for And cash simple at business growth cash of net ways new to obviously, And think but the through look the of guidance,

Yeah, that. for really sure. DSO sure. of Yeah, dropped we certainly like pleased to timing our some We were saw, had significantly pretty as you numbers And quarter-to-quarter. deliver payments,

dispersions well. of it, all that timing some as well have as we that large as as really some contributed panels [ph] as can, well the So of when timing to

performance -- really just for great it's the overall company. So

you'll lot a and operating company capability where bit a of And shift a the the leverage cash right are we of generating the sometimes in see certainly little the now. quarter-to-quarter, but we're given model of

Got it. Thank guys. you

You bet.

go from Kalia Saket to And next Barclays. we'll

Your open. line is

subscriptions in you Hi, more in mix back for talk perhaps? you see change single specifically? professionals, the gotten difference any business. taking work, app as here. my the anecdotally to did apps Can product question just mix, guys, including you guess, go Creative versus Shantanu, thanks to any maybe of users to for all I Creative about potential back

say really is I all business. the think know, the business, great the Saket, single businesses. would for saw as we drive I you app of initial funnel a across strength that to us

so the And then, app. to all to then, to as, funnel single probably it as a the continue the think apps drive of adoption to is see single quarter. business use that we the the from as And it relates we And revenue new apps. perspective, in half a

new I really point Creative say difference for So ARR derive a between we both QX continue apps of I and our customers Cloud the we where the see think believe there a certainly, that more we view, attracting wouldn't revenue and us customers. value trend just for of to long-term. was all drive dramatic from And is QX, then

Very helpful. it. Got Thanks, guys.

you. Thank

to Next, Citi. Radke we'll Tyler go from

Your open. line is

for I you side wanted question. the Experience of ask Hey, thanks Digital business. the to my about taking

business? And growth expecting targets reacceleration you see reacceleration rest of quarter understand year? think of how in week where showed you the assumption quarter, kind that and if you'd on your help out that of rate aspirational you, play of for in I extra last it a of of where the the for depending that your nice Could Workfront us on to then, kind to throughout the normalized you're pace kind the longer-term like just business.

question Well, talking I start is, where the Tyler, for answering about talking big about TAM, we TAM that would business. first that I off keep how by the entire way by is the think

the commercial dollar to market bands, strength accounts And have had. what of it's of built plus really optimistic look kind well and to corporate seeing to to because we've segmentation DX transformational in have, you those that we market, sort delever it's that's $XX just the earlier when convert revenue look And all we're perspective, billion different from largest the and industry, how business, at that, the the the be of services about TAM think tend so, And, done business. it. continue at experience very focus with that unique market. ability about on that the across the new deal strategic really have we my platform if the particular the businesses. as to We we of I a across question, we the but to ability we to upsell markets, you into more, And of have bookings them previous as all as on mentioned and

to enterprise first-half comment on And, in see, and our to QX when And seasonally about entire should of to you target strong. expecting DX for and the we're John's exceed expect close sort QX typically so, the clearly be for QX, that strongest performance again, be for you software. the happens in track the at guide our look year,

I if months? inflationary raised just haven't know, of just wanted ask sensitive question, the and just But obviously another think sneak broadly, during three Great. And last could over obviously price a in you that you you're just to you I in pandemic. while, how as I curious the around evolved your things and reopening an some around environment, Thank regarding there, you. concerns of conversations prices pretty

parts is really offerings. what of exciting Cloud really We're is that's the Document doing and different different your that about our acquisition, driver business. across that that the new business the we're geographies. Tyler entire about two perspective, business, across it's Creative doing those assuming From And question been of customer most that is, the Cloud

think inflationary or whether I the economy an value that that to to it's deriving provide customers, believe matter doesn't we're for tremendous our not, it value continue we we customers.

the us. focus. That's and and of to, more way customers that a conversations Adobe innovation new we this massive roadmap so price TAM at around have and the at a so ahead product really And look the than attracting happen point, are trying around optimization,

you. Thank

And from next Brent we'll go Jefferies. Thill to

is line open. Your

SI more on that you're there some the on implementation if to roof. running through what are you're I'm their Shantanu, of side, into seeing offset that words SI utilization partners? many that in capacity Is your point? experience have Hi, a that? you the are, constrained rates been commenting data curious business, the seeing board from of of partners their that across the constraints random the Are digital

and have content done, say, it's would for solutions of us training. for on it's is the ecosystem data our around and what's I whether the with and around expertise, that stuff commerce, there's us workflow it's Brent them to that new demand help we've exciting demand a the on that whether clearly insights, lot whether

of war feel the overall, and I a the support for continue capacity But business. way. them some it’s that's result periodically you'll little in a good them like see for think as think we to I any And constrained bit help will they're think, sign a more net-net talent. of I

with been side, we the some product that that our provision, value. we to to continue associated seeing On sure are easier easier front. use, sentiment get going really it on to good customer work make And to make to we've easier

as relates SI to So hopefully, it's our isolated to incident it relates an ability it. get the and market the interest overall But true certainly solution. that the it ability to that's as and in partners

So true. I is think that certainly part

John, for just on second-half Quick margins. follow-up the

are over how to I a in in from all time, reopen, quarterly not? given time you this margin. this? the high a about your world are things come quarter and little you reinvest about have or out away things point mean, As thinking back the bit opening Do

Yeah, QX as QX, Thanks, that across I up. the and really hiring drive execute slightly we we We're investing R&D. we're business as come and in definitely the mean, about, invest, Brent. Yeah. against we're huge in we definitely to three marketing TAMs it we open in down talked have businesses. all variable will continuing think sales and to

it'll capture that up, well. back things certainly, us pick get have capitalize expenses as phased to able we'll in opening more will we up approach and for are as start business QX QX. those be that travel world, in momentum invest will But through But it. sure the as with people, we online, So momentum make see come certainly, that business and reentry we to to we the on

we look categories mobile the and add, results with we're associated the And the invest XD&I offerings and you're when Brent, CDP and to the at offerings, your key seeing that. just we about Real-Time to also Sign, associated and specialist some question services, it, continuing of remarked in, new about our mean, Mobile Stock, maybe that I'll associated I with

expense. And growth so, customers invest it about we're that to again, we're seen mean, I on continue in really new behooves us seeing. excited to to sales really continue which the to as But attract be the the John we will judiciously, as marketing net-net, said, and always platform, to marketing have

margin Shantanu our expansion Yeah, went were. you and targets even year-over-year Thanks. just going original see to mean above I about what think are to

from And go Goldman to Rangan next we'll Sachs. Kash

Your is open. line

Hi, thank it seven, Creative you and big is very transition, $XX years much. be go into topic the the to Congratulations I can back business just that just to the Adobe as Creative team to as XX% mean, I continues and me. the to billion, XXX spectacular eight results. growing Shantanu, fascinate to TAM, want nearly XX%.

you the on have great. the think be up? that to unfold the should could there might to and than largest layers of Media a any you back expect as on on shaping Digital you modifications video subtext Creative larger much. once market, oriented the involvement even could as TAM address also the business, And you business business? that you? David coming remember of thoughts enhancements Creative that And original what board? with And And any you what thoughts see might As I refinements video that Congrats. be expectations? Creative as photo if with would see any said your Thank the so is front strategy surprised for it be we video Now have also unfolds that how is we finding David's you

a been part one love so far when question, say Thanks, Kash, you the Kash. all of question. But have And way I I putting three we in think…

one. take can any You

all questions. It's okay. mean, good I they're

And the creativity. and how we announced much pandemic think of consumer, content opportunities Cloud order we've in of it's Khan the when from in TAM. photography sure I Stock all think just and you a to or we've we from and And has about with you associated think make just about continuing whether you right. Creative creativity a in something, content Cloud, what gone the at a We Sign. partnership a you're the talked it's it $XX age how design all have and Kash never first Creative home, TAM plus so with creation a it's billion how productive. being And, and communicators, that doing business content services expand consumed I as as the terminal is know, the I interacting we're roof. But clearly I more as at or And stems think golden to Netflix, to transitioned retail customer, about on been focused the screen with we design the added continue terms all to have creation. Academy And very seamless store, with you, mean, for through exciting important, that

that's it. say and business we personalize design in the think driving content So it, as as love people I well a to be And want to to career.

themselves also international started commerce we've that's first about piracy, I International So dealing solutions, velocity we're there. say thing but medium with the our those creating would markets. solutions, marketplace for are a companies management critical with and originally TAM, small across content how is continue seeing. And, we the expansion, it that certainly to business our on as talked focus with content

TAM. clearly think tailwinds ever all for I increasing those are the So

it And Next. billion certainly our when the when we about from at talked have we it billion think to we'll meeting. increased Next we $XX update I that $XX FA

excited. I'm I think, really as to it relates David,

my he to of view, the sure somebody around having with Sign make whether have the are doing also we kind associated expanding that large footprint, all his enterprise Abhay Cloud addressed, one these the by side, we continuing what of continue to a opportunity is it's we get with Document bench of side and offerings. on the Scott it's to that the each the great and mean, when to that itself have work on I with, opportunity kind caliber have. mobile of we that business we the product from unicorns of said, David them when was And of it's As to have our the on significant Cloud in recruit And Creative excite tremendous partner them role able I I played think Cloud. introduction David, opportunity looking these here. and just we for the to whether sees I'm I point And back, Creative speaks the were business. that think a he of within fact to

well, So David hopefully, question around the answers that as Kash.

much. so you Thank Brilliant.

Next to Sterling Auty JP from we'll go Morgan.

Your line open. is

headed. on. of Yeah, sure to proud of roadmap I product company I'm be the comments kind side, see curious about Experience very spot it's I'm and the the thought Chuck of thanks. terms Hi, guys. Shantanu, on where your were the he'd coming that in directionally of performance improvements and how currently? resonating milestones should couple new could further customers year, with growth the And any looking there you and that changes quarters? we made that that for, business innovation key improve been over the those be in have last are Digital

A appreciate Chuck. that Thanks each you written of know one Sterling. with of number impact to I for your me, when felt interacted also you comments I the have which on you Chuck,

So, really have appreciated all comments. those of I

to we're I customer relates the it really experience As think management the Sterling, questions, early in innings.

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is I we that really, do. really, what that of of us in all can of think ahead terms

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That Thank makes sense. you.

One last thing, maybe BXB. on that is the

they the industry, that banking, the retail, ability and drive digital. travel the Sterling, The matter in. this they think understand doing, they talk move innovation business, to going and doesn't happening, I what you're where to yeah, always you're for leads now which business about we've -- about hospitality, BXB understand a to visit you're think to people to about but if not digital. this business a and mean, also in it from most is, go I and BXC is them you're it’s is talk pharma revenue doctors, company able understand

think So front. I particular on there's that just so much

Thank you.

Securities. America Brad have Bank we next, of And Sills from

is line Your open.

wanted my on taking congratulations Oh, a great. on reopening. question Thanks, just question. a nice I ask guys, to quarter And here. for

towards, think Digital going you your an thoughts that? on look businesses? also look on to Digital have a and the in you. Or, do as towards impact you we think? Experience It's Media you Thank that's do Europe, accelerant, U.S. what North and reopening America what are As and

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you much, Thank so Shantanu.

you. Thank

Jay have Securities. And Griffin next Vleeschhouwer we from

is line Your open.

some targeted Good to number that multiple that the referred future refer commerce to years. summit, evening, it for important you Adobe out API working on? was build them could and as things seem other Firefly you including, year. payments what there on And the your of to from creative have service services, quote to example, very this on since your perhaps and didn't Thank for you're next you were Shantanu, very was globally you is would you're you. directly, mentioned comment stack, cloud internal a conference likely merchant your some clear And additionally, of interesting ATM lastly, some over project of and the initiatives references for implications then strategy, working those, including

had answer the in And recovery openings. referred you those perhaps from you ‘war in in pretty to your own case, question could of for the of So talent.’ your to a follow-up, an some about? things conference talk V-shaped for are terms then job interesting earlier you've And

quarter. as John, in unusually to think of non-acquisition same added in about increase the pace you for You talk your Maybe whether you QX. people continue at you could large number a an could should or headcount

Thanks for the question, Jay.

you two long on you but can that the ones wax for As at I about time, me let know, a touch product did. stuff eloquent least

cloud-based to related as need about, how to do you which content anybody get intent you're offering. you product you management, a I wishes straightforward, need self-provision think get it business, to and transition small who to campaign, is if company content a the very up if the And large you or website, is be it cloud-based to trying localized, to need a a think able to to a and you running, it get need do you're commerce. do medium

leader fact but And this we've we the content cloud-based solution to the which to for this content in now addition the directly. can got so mentioned, people that that is provision that, management so in have the as actually embed easy APIs our category, you APIs management,

saw excited that very we're it We So mentioned quarter adoption. about last significant that.

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provision be don't they products mean, but really I their the and to They Anil a I excited. seamlessly don't is so side, business, have and underappreciated ability think now team where really are net-net, and maybe of for of are Other provision stuff, we're the initiatives. how to to And number focus. about DX of to an so, talk companies outlined these product And think integrated. to going on to continue practitioners we the have I do have Jay and up this area it. easy, able a set lot that's the

a some other with dealing of dealing about, dealing of a shipping, yet. it. very with done is are companies of think, we've as certainly, talked PayPal actually recently, the what think is about job building are to second like with liberty do But I services interesting well-positioned to merchant we've monetize to that of we're that More not question you're talk a really underway, can number FedEx. your one, interesting value absolutely with about, ideas talked as lot mean, well which there that right out. which both right, has, good Magento where a I we deliver ecosystem at initiatives such payments, capital, I we're very we've that working

certainly headcount to positions larger open, recruiting the a just I of the mean to But have against. Jay, be opportunity. And we're committed investing that we're on capture to number able we to commentary, actively

sales So to we're to performance. continue with in in going going our to as we're hire marketing leverage to really headcount and as ability invest well variable for continue to innovation drive

time the the think given don't pull business. this is momentum back in I So, the to

John. Thanks, Shantanu. Thanks,

Jay. Thanks,

Bank next go of from And to we'll Keith Montreal. Bachman

Your line is open.

thanks. many Hi,

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a that understand here, during So areas Cloud the grown then I'm Experience B, A, potential was growth business? numbers some impacted have Experience think you Gartner back. more harder COVID the Because Cloud the snap there parts other XX%. than be comes whether about think when trying with you of out in And to might

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want So say to I went do that that well.

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you, Thank Okay. Shantanu.

you. Thank

take more Operator, We'll please. question, we're the coming of top one up on the hour.

you. Thank

comes Our Gregg last from Moskowitz Mizuho. question from

line open. is Your

just would accelerated that an recovery Document the enterprise obviously then you Great. would returned Thank up SMB, bookings pre-pandemic growth XX% impressive. primarily than to? you with have for you the quarter taking John levels? another Cloud questions. you more for say quickly really What upside year-over-year, in Shantanu, following attribute And that to

Cloud, how as question I automate saying, again, isn't first is mean, relates Document it not do think to that we help hey, paper-based processes. there your inefficient around a I business

Cloud are of the think and a proposition done our combination format, it's somebody business trying I for employees, of the team documents mean, has the as authorization to pharma. the retail, to job. who necessity the market We of value. automating and you I again, new modern the that or saying, in an relied and go or expense. fundamental use all and for or documents. a healthcare create solution, know Cloud need with of of deal for don't here's travel to PDF embedded Sign, or and go of deliver government hospitality And tool think solutions, of And trying because travel has somebody get file that, kinds say, a value to what previously currency vaccines of Document essential And of and these for we're you're, you're the modern only saying, would into Experience productivity good or or I have availability to may era We knowledge services, so what solution. I customers on here's also we have larger with regulated say, proposition industries, value Acrobat, here's electronic workers, an the payments, doing forms paper if case whether financial the become

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saw really kind reach continue level we've to world as that Yeah, for the And SMB to talking kind the of here to of which year. opportunity for in there's last Gregg. QX, Thanks, the continue about that well couple open as been Shantanu. quarters, now severely at the the of of and gradual Thanks, improve. so of retention, pandemic Great. begins in up when sure last U.S., hit pre-pandemic of least recovery rest was we conversion, segment, and the that hit just the tons

Very helpful. Thank you.

bet. You

for you us. thank And joining all

be from QX invest. at QX. one XX% the nice I've to a for have, critical. our not it's in world growing areas if the businesses line, to having to bottom quarter. top-line I you wanting about, targets that the exceed explosive to super business, earlier, we're this pleased our so parts think of where We was of normalcy, our plus We're the seasonality way our that's impressive, that value if many as And new our and business. you at value with some strong shareholders. on digital It lot because the our to as outstanding in should think another rarefied first-half an from driving with a our of really returning for outstanding But terms material of that expectation get for talked do seasonally sure just people have with in customers at a how people a therefore, it. company, asked my we performance where to year going bookings belief associated street was incredible finish. is good of performance, breadth as with look because an definitely tailwind And strong QX, question really us finish, have that beginning only going driving if be become a puts growth we in we demonstrates strong of our expect, slight And the perspective, we're really of performance And We're of lot digital look three and a for are is atmosphere. have in making targets for flow, always bookings, I'm a sense we is portfolio revenue year. of driving I as impressively growing not the the it's of cash the the result all, value the become driving said, and just

With for that, back you great and us have joining Jonathan. summer. thank So, today I'll a to pass it

thank and call. This everyone for joining. you concludes Shantanu, Thanks, the now

does our today. for for call conclude And you Thank that your participation.

You disconnect. may now