Adobe (ADBE) 13 Jun 242024 Q2 Earnings call transcript

Good day, and welcome to the Q2 FY '24 Adobe Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jonathan Vaas, VP of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us. Dan call Wadhwani, Shantanu Anil which President of results. Experience; the and Adobe's Chakravarthy, is on President fiscal Digital David Vice year will CEO; of and second being me recorded, today this discuss Narayen, are Chair President and we With CFO. On Executive Adobe's call, quarter Durn, Digital financial Media; XXXX

from website. our The release is set prepared in our XX, discussed and can press as Adobe's assumptions. that well those statements Investor PDFs targets on find risks, contains and call, Relations and remarks forth as this Actual uncertainty, of information financial on materially statements. June financial including and these results You may as results forward-looking involve of our today, plans, product differ

this information earnings please on SEC risks, and Adobe's non-GAAP measures. call, those will more financial review we release For today's discuss and GAAP filings. On

growth results constant reported as include GAAP rates as well Our rates. currency

to rates Relations to website. Adobe's now in and Investor executives Adobe's During reconciliations stated. the call on turn our earnings currency available unless constant will I this are Non-GAAP Shantanu. otherwise release presentation, refer over growth will

was us. Good representing growth. share revenue thank and Jonathan. for had $X.XX, growth. quarter was XX% you the achieving earnings for Thanks, outstanding share an XX% GAAP non-GAAP quarter, of joining per representing afternoon, billion, per $X.XX Adobe year-over-year earnings and $X.XX, year-over-year

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partner customers deliver agencies later with advisory engaging agencies implementation our look system Lions product of have major We services to and vibrant this portfolio. integrators enabled the and Cannes month. across at ecosystem to Festival forward We our and

growth Our category-leading subscription pipeline, and for the half, Dan. us second tremendous the scale strong we will I it revenue target position in and to robust our are solutions, to now raising drive year. pass

which billion, I'll strong In customer and Cloud. Cloud, constant by incredibly across with in execution and the growth XX% Creative top currency, Thanks, fiscal discipline, the clouds. This talented Adobe Anil. while quarter, across X models, to across Adobe with $X.XX When accelerating make market of products, our QX, performance Today, Cloud, Document world-class start achieved that summarizing delivered in the we're Adobe's year-over-year profitability of you Adobe's QX geographies. industry-leading delivering record market-leading financial diversification our company this I'll business have XXXX, business revenue drivers combined businesses, and In from growth resilient. or employees, and and highlighting growth the all Experience of segments, ingredients innovations stems with pace line XX% targets. across represents strength financial performance our strong finish

Document apps, the the strong both ETLA the pleased we team strength year-over-year QX new of as growth with solutions, currency. added our growth quarter reported billion; revenue for record and SMBs, strong commercial QX. QX single the to in our and growth and revenue demand subscription Express million in QX in subscriptions subscriptions particular quarter. In which currency. offering $XXX all up Digital currency. as $X.XX XX% $XXX in imaging, new a in Creative a and ARR, for XX% which the in PDF of ARR Cloud Document ARR, million stock; digital include by and RPO and exited including XX% year-over-year Creative for XX% constant SMBs drivers adobe.com flows represents included: the adoption. We're currency. business which QX. which demand; higher markets; Document achieved Second We growth of GAAP year-over-year of of revenue We quarter with Adobe non-GAAP of for sold our strength was billion, MAU; enterprise performance geographies; the workflows. We during first financial with offerings; year, net Experience $X.XX strength free-to-paid million, of particular across Media as our Business business customer Acrobat Cloud AI the of $X.XX on Digital Creative ARR interest conversion; and and quarter. highlights to monetizing revenue earnings per $XXX represents adopting earnings from data as Cloud engagement billion; customer Cloud renewals through achieved from which emerging photography, multiple billion Assistant of achieved importance added acquisition digital growing half through product constant We for or $XXX with customer source year-over-year research higher-value, subscription Digital diluted million; Edge $XX.XX well acquisition driving Media with both included: customers new Express unit demonstrating migrate of our of QX from releases and per continued channel; Media through partnerships, and in and unstructured of in XX% share that Chrome segments user $X.XX Firefly channel; billion, the net plans fueled All of growth or constant in Digital in Digital in strength drivers great XX% usage and from Acrobat entitlements; new design, of Creative constant adobe.com, increasing of new accelerating operations Creative Reader Apps as are as growth in subscriptions start usage well units Media engagement quarter $X.XX of of the our new our and Creative net $XX.XX and share enterprise strong growth, $X.XX; Web resulting a segment and billion driving Mobile strong team as $X.XX Cloud revenue billion; diluted business segment, ARPU of represents cash exiting included: in with

momentum deliver ARR expect raising and As Creative into the we we're are our look back we year. Media of Digital fiscal half, carrying net QX in at target and new the year-over-year QX for growth ARR net the to new

from QX Turning currency. Digital growth X% achieved year-over-year billion, growing $X.XX drivers subscription businesses Experience accelerated AEM to adoption with billion, and growing growth in in with strength market native accounts; content as as across we solutions revenue XX% audiences of the our customer subscription categories; data subscription leadership constant chain included: insights challenges. journey represents reported QX, year-over-year to reported revenue revenue year-over-year; our strength Experience Workfront currency. solve from segment. Digital In revenue subscription XX% AEP transformational additional Experience of and and and applications, revenue Digital and and their and $X.XX was which supply constant looking

prioritization investing quarter XX% quarter. balance non-GAAP basis, RPO QX, grew growth as Adobe Turning was disciplined margin our exiting The a $XX.XX factoring while tax AI expectations which the with by quarter. for XX% in when rate headwind. to the non-GAAP was exiting currency XX% a QX. gross GAAP to deliver or in and in In a QX delivered year-over-year continues and resulted of income and was revenue Current basis XX.X% XX% company on in the reported sheet. in investments, billion, RPO non-GAAP strength driven world-class XX% on margins groundbreaking effective statement line X-point Adobe's capabilities. of on year-over-year growing and GAAP in operating basis. our a growth EPS This the

a into and billion $XX.X March the billion ending have in $X.XX currently QX flows and authorization quarter remaining billion at investment we QX, repurchase from of $X.X billion. the the In of $X.XX was agreement, cash and we cash granted billion, Our were short-term XXXX. operations in share end position $XX entered

to into momentum half in across business, when the dollar QX compared current updated remaining expected our QX. XXXX December, annual targets, original targets provide and well outlook current back as 'XX in targets finish as expectations an factoring macroeconomic strong U.S. FX set well conditions now stronger FY with we year the as in our as seasonal will our to the our We strong year fiscal as the of

QX, Media Experience total billion approximately billion; ARR of Digital of segment $X.XX billion; revenue of new to $X.XXX million; $X.XXX revenue $X.XX revenue we're Media segment to For billion; Digital $X.XX $XXX to of billion targeting: Digital $X.XX Experience Adobe $X.XX a net and Digital to non-GAAP on $X.XX rate subscription earnings revenue basis; of to to billion tax of XX% GAAP a $X.XX. and approximately on of of $X.XX; per $X.XX $X.XX basis XX.X% share non-GAAP billion; GAAP earnings per billion share

to total billion; XXXX, billion; share half $XX to Experience revenue fiscal through win first rate of over results ability approximately catalyze Shantanu, top $XX.XX of $X.XX to revenue earnings our trends GAAP targeting: and to given in revenue $XX.XX $XX; confident business. to and velocity segment summary, a share of non-GAAP billion; company's product tax GAAP Digital new to performance, next billion of market revenue basis to billion $XX.XX us subscription $X.XXX we billion business, Media to our you. I'm XX.X% billion; deliver of we to For bottom decade. Experience position that Digital per the diversity strong $XX.XX Digital billion; financial segment Adobe's see basis; now us of conditions. ARR first performance the half of are Media year the unique, the I'm the and of with us of transformative approximately per billion Adobe in our non-GAAP of innovation, $XX.XX make back pleased will in extremely to XX.X% Digital $X.XXX line on earnings $XX.XX. In leadership, on discipline enabling dynamic $X.XXX $X.XXX and momentum our of and a net long-term

Adobe customers I communities. for Thanks, greatest supporting of the one our relentless their to remains the industry, and and to in dedication work to our Dan. thank places want employees

invest bring We college to the to new and including interns grads best in continue Adobe. to hiring, brightest talent and

of Adobe to the Companies Best-led was List Demand grow. services U.S. recognized the Companies and Companies quarter, products to XX Glassdoor's for Work Best XXX among Community-minded For, the and Most category-defining continues our Civic This in Fortune's

Our and market momentum and and beyond. half Thank on business building and forward we to tailwinds you, take are questions. the our strong, fundamentals now we second will look in

[Operator will Mark Instructions] Moerdler from Bernstein. Our come with first question

strong growth net versus on and that versus give like to especially Creative net on Adobe a ARR. contribution consumption, the drivers more color near term, little quantifying? give or give new term Congratulations us Can and ask the the in Stock saw sense the you from a ARR ARR of Cloud. like quarter that on new that seat what's to ordering I'd what's what And going would sense of even a to can medium specifically we things us rank number? upsell really the you that Anything of us be in driving helpful understanding credits, number. AI very in Digital

can your actually to well think applications what's Dan a we're start users. both delivering. the as point, And as, onboard had let to way me is continues and To making our then affordable, And the quarter, driving big David higher-value frankly, the we really be certainly, add. strong more Sure, and quarter. easy I innovation that Mark, picture, AI

are business. the the driver a to users of that growth New still big see we in continue

Creative Document to Photoshop the are Cloud what in lot I people On Cloud, the doing a do Lightroom. on we're of of that the the side, that say And and products. the both and and would on Firefly has seen migrating fact with things we've to that with higher-value AI imaging introduction Assistant

talked Dan remarks, the different the happening in also about with prepared of segments. think each I what's certainly

quarter. SMB So actually the a segment continues had have a to Enterprise strong quarter. strong

saw actually Mark, board, the in strength across business. So the we

with And Research. Zukin from question our next Wolfe will Alex come

to similar how how in sort much of guide. side of terms wanted portfolio half I kind business, and us Creative SMB result. side gen Creative demand GenStudio? it you in well on incredible business? as enterprise that on And Cloud Digital see Studio both an Media, [indiscernible] of in the the the the maybe the just on to how does Congratulations it you're Help Mark's just kind in the just quarter of in question, AI as pick back planning did for more ask understand of of and up the help to the of progression

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Firefly customer we On started We've Firefly models, some the in services. see released services. to wins

say say So interest that the we're how can but into using that that's to and of adoption, are we the for as us, ahead they I these in well QX of the custom as to in access grow expect models custom as data it APIs. they're QX. and variations, models, and continue to ingest creating as would models our well really early customers their terms that's as

for the relates whether that's and to think and And of AI-first for why that's the AI-first well and value what Assistant. And the but are reimagining we as leapfrogging of a Photoshop, are of workflows. we what there, about both it really driving becoming do gen whether can creatives but When in are opportunity more who prospects application Express is again for able the providing last productive an sort being usage to think interfaces about I'll do And in AI now we're tasks like in is Generative existing seen for that because it's in David as it's really amount Acrobat us, what's new technologies as add, I increasingly and customers not particular all applications. excited value, least, to I we being products we in people existing Illustrator. the doing has come that the doing application. space, AI for what an say And significant have say, really Fill would biggest us faster, Express, complete there. by their way derive able

that's also so And to a good off start.

a playground, is to a AI lot bring Yes. position year that Alex, 'XX the what pretty of just to this special add the we've is it was FY to but in we little production. about how And the of need said, it was a that. industry-wide as And a talked lot year that into to and bit Shantanu we're relates in

Acrobat at Shantanu's of for services time active in produce Express launched right, launched, for into point, launched. this Firefly content scale. was the for Firefly enterprises to updates lot Business Lightroom. releases Firefly Mobile introduced Express Assistant, Photoshop. to first quarter, a We AI So

-- So was core there ton innovation our of around you can a core applications as of see, generative AI. in our

play we've You at It with put at this that very look and workflow. Summit, it to word part our AI ability Max we're create we your getting but out some at did broadly. actually starts of of activations done London that the together as and use not just to with and

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SMB And a And that well, maybe on had to continued we product well. route also in in if strong our it did you doing continued. X look from really teams to at adobe.com. last market, to thing, had Digital as quarter do QX talked the it Alex. as We about Sequentially, also, a very interest well what relates enterprise

to growth. further strength and think as the Digital's driving would So sequentially, I I SMB point

That's And helpful. macro. then the super just on maybe X

year. it that macro the a like Just the rest of we terms that in Just vertical-dependent? and really you're of seeing given in on performance purview, comment give you're seeing to the Is weaknesses your the areas on the any on we that's maybe pockets as the how again, should story you're Clearly solid think in enterprise. of kind commenting guys' demand the look of there SMB environment? what is about

a I than set have. of products from way our from And that again, all products to think macro think the and Adobe differentiated other company the mission-critical. enterprises, more how individual is differentiates consumers perspective, we any how diverse I what are

at so Alex, And actually all converting the awareness the about monetization. the this into to continuing we're execution it's and and go, focus on business will and scale, pipeline cycles interest come and the AI of but execution. And

continuing on execute to And that. ruthlessly just against so we focused be will

really different perspective. to report on nothing from macroeconomic So environment the our

Keep you're doing doing, what guys.

with And Barclays. Saket come from question our next Kalia will

sort there we Firefly echo theme out helps Shantanu of and rates? would products, Firefly particularly and there and way a Premier But example be level clearly interfaces, it route layers go to size, quarter. I like both -- qualitatively? flagship the started about a the tough retention interesting X higher of of like this the it's for the Generative drive the know like to increased sort in think things Photoshop. in to just for that's are Maybe Maybe so bit think X And from how on that engagement coming you've it And clearly any way flagships even little Fill to that call monetize David. opportunity think really is monetization you Or that your call about to right? An congrats I many or story. potential deeper, just right, expanding you, There thought that I Illustrator. is have other you other but the

core the is to a continued been the adoption focus about are and you it's on user it's to our we've monetize has primary right? mind. And the different beginning, Yes, that there about for generative can to point, thing -- very the on ways And guys And great our your has talked reasons. And AI from this. question. be many yes, multiple for that proliferation, we our primary thing primary mind

about always embedded in new said, everything algorithms usage always So think seeing it's adoption tools, new the higher is lot of a users, want that the the in as at our is Shantanu value have market. in the of it First starting of you context have foremost, So market. Express users to our with, right? first with make in And that we to doing Express, existing right? ARPU, We're starts we and we more users, Express generative sure we're getting growth AI then right? head, in about and as

and Adobe more ability retention. always of Firefly attach successful infusing Bar that to talk and Creative with would in want through flow Context coming AI the it Similarly, The a that's product-led right? And products people been this for AI though, of Assistant, out into to the makes helping, success checkout new offering generative it of in something embed engagement host user for that through the to this helps then, As growth up is combined from high having really message and is both of want. for add easy all the same get doing, we're the way just and it happening, look, introduction course, buy in ways. that's there a with marketing a at for in our everything just purchase effect called the core the particular, fries going you in as whole work users the someone's more about some with into to well, of the the more plans. say, as and then of sort in when rate, completeness which value we've a our Express moment with to gate we be like Acrobat way conversion higher great it's flow, to the I AI I and retention. And of onboarding

because in going plans Cloud far, we But that higher-priced we So include Firefly. migrating is are the they mechanisms there are the different see. to the to people by fact like Creative strongest that a lot of seeing be

get to these we so well. users just as And more value to want

talked and I did MAX greatest London generation, And and to the in of we're amount in actually, was we new it. the We Saket, releasing. X May. functionality about up talking generations billion great some of at think I think of generations, in terms about job think the I a Photoshop,

more more the the as our the usage integrate really is we functionality clearly adoption So that driving retention. into interfaces, this as is momentum well

comes from Our next question Thill with Brent Jefferies.

drill and that success the mentioned seeing seeing. of of you Can Express, into out quarter? you you're the some other on you're maybe David, metrics accomplishments Express this

Yes.

buzz event lot this really web. fact week, on Express Adobe is the introduced earlier ago, had just of but right? we the the we an coming it's A a months there's for innovation Express off in at here on Express starters, of tear, all-new a For based the that few

for This an Express introduced quarter, introduced for Express all-new we mobile. Business. We

last by quarter, for generation we've but building growing look about, into We the script has more flow Express. And or combination deeply cumulative the mobile quarter-over-quarter, also year. effects, quickly. XX%. that which is character talked in very doubled generative AI year-over-year, And see. features, over is particular, Express talked about or over it's an the if imaging exports, on of integrating now than MAU metrics deeply to for been grown design led fill has We earlier throughout have, set in more as incredible at MAU whether you has the fantastic animation, to that more just generations text

step momentum understand take good brand-new a opportunity of in if to that think feeling taken what now right? journeys. get on here. us Adobe. And a the the our really hasn't mobile you going market go-to-market, on gas I back, we mobile Express So happened time to a important right? the store. sort of the been up we're seeing. But are back step to at operating You that it's in our And It about is forward take vision. we're here, platform, now and know We've with a is is it thing through model. do on and do can that combination built now AI web what of we the in -- That's we data-driven for in what and same the all we it's brand-new will are can that standard platform to lays that doing do unleash But pour expertise and and Digital place We the And Adobe.com And for conversational terms groundwork this be that can us we really leap the little ramping think vision app I overnight. and of an anyone create Express will can have. era. inputs. a come be the

workflows. been We we have into Cloud in at know well. You capable product-led as growth Acrobat also, Experience Anil, into workflows Cloud into Editor. And embedded it embedding embedded our our terms we've of with now what Workflows obviously we're Creative Express showed motions. We've as it Summit

our inside addition In to we're sales all that, now force the of to small/medium businesses. unleashing target

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Gregg Moskowitz And Mizuho. the next with from question comes

And I'll add my congratulations.

of Creative numbers had Q your really about growth times And the you Q year? thinking certainly the unit equation I'm the you to would these healthy Based the business, expect anyway, are wondering if continue. of you on over how P QX. that in For assume balance side I that

these it lot we've Yes. of and they them mean, able is people, steady as and being then drumbeat into I retain. the they use the think successfully talked -- the innovation hooks of product attention more been onboarding of I good of that. feel product. And of bring putting about, this it really A features, more about workflow. whole that And AI that and the the to AI getting out of quickly what we there quality and sort again, mix because the we really

we're said, Express, new momentum races member yes, -- growth retention. to when So we're user user the the we're acquisition in you new very and our we add focus. continues and to feel again, existing And with on everything be good like doing primary I the about off

of with also then the to relates free model acquisition trial people in conversion. through and you're coming we Express, it as have And customer Gregg, aware, certainly and as I mean,

So interest. we seeing are as interest in to the Express, level significant it relates particular,

out you called including also in driving your new that's drive helping think doing Apps as you can the if so, continue from And since All that different something Creative that website, earlier, Shantanu, to anything behavior? subscriptions And strength is Digital well? you are

sort modesty of the sort people Adobe driving the continues to long sort driving new an world-class we're that referred that Home is do now increasingly to would lot I our time of say would to aware been job. DDOM. amazing But way of a products. David of I I say, at now. for a of team, we've get the think, And

the it's products, sort part mobile which better where think at focus are, as leads the us. of we've traffic as digital search Express, journeys, these traditional understanding mobile got the and that, and say increasing Lightroom I better whether us. And we're of would getting well I an so or And area to for for more certainly, whether it's terms mobile that's way

the mean, mean, Adobe team great. prepared So commerce I have I and that's think get functionality, people, need really think board. segments also remarks, we across the that beautiful the I'd the the understands I strength all the for And in cloud we they in markets. to about at it's Dan think But that been I AI has strong us. growth access what of talked the for to part can about is emerging that market since those emerging I particular AI segments how attract are also the highlight,

And Keith on moving to with Weiss Morgan Stanley.

an see and steeper a on guys little where QX, in in new that It raise in solid gives have not Mark QX maybe decline saw to type declined the I'm in QX. little it in And on if particular we than Creative declined again, confidence results asked, really net QX. to focus in the year-on-year many able was return the Cloud ARR. a to growth what wanted in uneven Moerdler not you companies mistaken, what a congratulations And bit been and a of question very I to in environment beat bit software set on environment. this of

in to going in are QX you those in to wrong and and those going line the drivers is the the maybe So on direction see actually what confidence trend metrics growth heading right particular that We're QX? in that, that give drivers has that guys some the now? detail direction been actually head

half, are really prior for stories. you Yes. first and the up the Cloud complexities half us. This based the more of comparisons the are we we're marks half excited complexity that frankly, now it first with importantly, areas Cloud. Document very shared And year-over-year momentum I sets had. But think your Creative the one how in year-over-year both about to of second Keith. us Thanks, point, we've momentum that behind and on is the pricing the the Both across of

implied a back is million performance, of $XXX what into momentum this and printed giving CC the clear, that half. implies we have the us guide both the in otherwise, good it's be that strong -- and to would just it lot Sorry, the So over obviously time growth DC right? going came

and is Now the X here gives and by a really little context things, you. just try more I'll bit driven momentum hopefully to share

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it, continue product that set, emerging see earlier, throughout to in including, as we as start the Shantanu -- holistically more more using drive mentioned people markets. We we

which So has upside that strength seeing are us. potential certainly and very a been and obviously good us, usage markets, bright for for that is lot we emerging in something spot and of a represents

In well. for has going existing been terms customers, the migration very as of well us

cycles kind And to momentum new upgrade capabilities [ in certainly, to Cloud are higher-value in because seeing moving e-mail. offerings, is sharing people ] enterprises the a highest what then more in Enterprise not up Creative the more of create They the because which starting are it, well. And too. collaborative X the versions we're as the see Cloud, access higher-priced, plans just they of that to Firefly segment just this features beyond generation. of to have moving nice beyond get We're we forget even call via enterprise where Creative So let's people more capabilities.

early, that of in lot a driving and still automation we're content Firefly with effectively services. something While production accounts is these

new of and times growth mix we systems. P about, offerings that user have is plus automation value for that are with that now the which Q V market we So formula new talked driving that in also these migration, existing users,

is answer. That great a

have Sills with of Brad Bank America. And a from we question

Would to key we in and to to perhaps credit the that a expect should be other there? generative capabilities key you're some the see seeing, like start see that pricing engagement a coming launching across you're going the levels you I ask you've as credit Is with a It like embedding pricing. assessment? look here. the catalyst that that your fair wanted all to question around your that made to component the start Firefly services to ramp we video seems flagship products generative in? Or component to shortly should to progress

When higher-value with sure the think video, plans about think what making that the we've and I to of by thing the imaging have we've Brad. we capability. people paid generative right, done done you're about right amount think don't

going plans of we generative, that's video, video those right. different To I do to it to take by point, think see your as to into we will, actually necessity, they're got balance have move that for and, limits And the so the vector thinking subscribe. But there, therefore, to for constantly and trialist who people not imaging run actually they're the have free generative the needs, and about between to capability expect required because users, work plans generation. account into amount

is as output. right just and absolutely a the exports, their Reader by we and for at are you say I you're clearly, know, really done. what successfully talked get that. And Brad is need it. The can Assistant. describe driven is people how it's for you of I mean, who clarify to slightly side, is, is So would I X looking to that want and and thing a accelerating other they upsell means they get who doing framework that's say, to David an it, anybody able we the got last AI key they what like, certainly And are on AI measure facilitating about done, the has When document, which have to people sort what Express AI have a Acrobat different is, model is to would a of of things and as want being which think about sort that how final

highest-value Assistant, you when Pro products, Plus Pro Acrobat many brand-new so and of a Assistant. to see you're you the Standard to in, user the how people can have we've upsell between Pro Assistant. to coming pleased the And been of acquisition you're AI migrating the If adoption a Plus Pro, are if

you of we it hopefully, differently color product. about some that gives how So think by

question And Deutsche Zelnick take with a from we'll Bank. Brad

perhaps you to that Can next you it's you. cloud hear on to how left I'm expand And DX to I and to AEP congrats ask a want on all accelerating for don't AI there? migrations? the the particular, in is And how Anil, of track $X Anil billion-dollar important journey AEP Assistant good billion? so out going see the become journey drivers to Adobe. feel business get to are And do you question.

Brad. you, Appreciate it. Thank

Assistant, for about any which scale, think you you have it space. audiences, it's Officers our doing And around example, Marketing the together. I Officers us and As especially a really and use to When We're AI use largest know, those for things. require and things result. today with require to it's you growing and these a put the around, Chief ability we're is customer built are mean, than the important keep engineering. around personalization that audiences for the platform We're has as making audiences as platform. in these area experience the Chief management priority they They that #X data deploy been for provider Digital Experience momentum. When this really generating well. that on and it's the cases a of helped hugely customers focused cases. think AEP peers, couple easier really AEP faster us, And of of One, some running Digital are we CIOs campaigns

for work to marketing it to teams able it be together. to to easier AEP more Assistant The cases. much So themselves and require a AI making marketers and they able lot use be do IT deploy is

consumption help more more see of growth we that us and towards as business. number -- helping of billion-dollar in users, drive grow help usage, help there's and of we it will drive it number the So profiles, terms

the hear, work, great to Great guys. keep and up

Thanks. the and top X at last questions Operator, we're almost of up. the wrap then take We'll hour.

Kash from Sachs. Goldman take We'll question with a Rangan

You guys that could different you have X very X separate is earnings the have businesses X even because large. calls smallest

AI, all Shantanu, So able want. that to to be yes, super ask I'll not it swing sorry, keep have may I forth. back I'm But it sure I questions the and level, Shantanu. Generative and just plenty. seems we Dave, high Anil,

I'm good endless do feels quarter on you stand very evolution, Just disappointing. seem But so early sometimes, path, where in with magical sometimes, it Adobe the possibilities with its every sometimes this is Will it's that software be investors? executing So creative we AI so that react end the see its everything? far-fetched, the creative well. of that Could to a do get question on how own people that the in from will don't strong throwing generative we process? do need folks, That little it but sounds you campaign, have on that would put out Maybe other side, other Experience there as marketing Cloud just create generative you marketing proposition. Same AI the not it flipped the category views. out maybe sure business? does hand, it I'm category of compression. Or growth doesn't. create

on the long-term at but to debate be seems question, that for super here, the that from big stock least a So sorry high-level perspective.

Yes, Kash.

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to And about. X to just build maybe talking what to on thing Kash, that, add Shantanu was

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for us. you joining So thank

Thanks, everyone. call. This concludes the

day. and for We thank conference. do today's an participation, conclude does excellent have your This you