Much of our future success depends on the continued service, availability and performance of our senior management. These individuals havemanagement and highly skilled personnel across all levels of our organization. Our senior management has acquired specialized knowledge and skills with respect to Adobe. Theour business, and the loss of any of these individuals could harm our business, especially if we haveare not been successful in developing adequate succession plans. Our business is also dependent on our ability to retain, hire and motivate talented, highly skilled personnel across all levels of our organization. Our efforts to attract, develop, integrate and retain highly skilled employees with appropriate qualifications may be compounded by intensified restrictions on travel, (including during the COVID-19 pandemic), immigration or the availability of work visas. Experienced personnel in the informationThe technology industry are in high demandis often subject to substantial and continuous competition for their talents is intensetalent, particularly with cybersecurity and AI backgrounds, and demand for cutting-edge or unique skill sets can be highly competitive, both of which are heightened with the increased availability of hybrid or remote working arrangements. We face an increasingly difficult challenge to attract and retain highly qualified security personnel to assist us in many areas where our employees are located.combating security threats. We may experience higher compensation costs to retain and recruit senior management and experiencedhighly skilled personnel that may not be offset by improved productivity or increased sales. If we are unableOur hybrid work environment may also present operational and workplace culture challenges, which could negatively affect our ability to continue to successfully attractexecute against our business objectives and retain key personnel, our business may be harmed.and recruit personnel.

We continue to hire personnel in countries where exceptional technical knowledge and other expertise are offered at lower costs, which increases the efficiency of our global workforce structure and reduces our personnel relatedpersonnel-related expenditures. Nonetheless, as globalization continues, competition for these employeestalent in thesethose countries has increased, which may impact our ability to retain these employees and increase our expenses resulting from competitive compensation. Wecompensation-related expenses.

As we continue to expandtarget large enterprise customers for certain of our international operationsofferings, including Adobe Experience Cloud in our Digital Experience business and internationalour Enterprise Term License Agreements in our Digital Media business, we may face increased costs, longer sales cycles, greater competition and marketing activities, which wouldless predictability in completing our sales. For our enterprise customers, the evaluation process may be longer and more involved, and require significant management attentionus to invest more in educating our customers about our products, services and resources.solutions, particularly because the decision to use our products, services and solutions is often an enterprise-wide decision. We may be unablerequired to scalesubmit more robust proposals, participate in extended proof-of-concept evaluation cycles and engage in more extensive contract negotiations. In addition, our infrastructure effectively or as quickly asenterprise customers often demand more complex configurations and additional integration services and product features. Adverse macroeconomic conditions have caused, and may cause in the future, delays in our competitors inenterprise customers’ purchasing decisions. Due to these markets, andfactors, we often must devote greater sales support to certain enterprise customers, which increases our revenue may not increase to offset these expected increases in costs and operating expenses, causingtime required to complete a sale, without assurance that potential customers will ultimately purchase our resultssolutions. We also may be required to suffer.

We are a global company subject to varied and complex laws, regulations and customs, both domestically and internationally. These laws and regulations relate to a number of aspects of our business, including trade protection,compliance, import and export control, anti-boycott, economic sanctions and embargoes, data and transaction processing security, payment card industry data security standards, consumer protection, records management, user-generated content hosted on websites we operate, privacy practices, data residency, corporate governance, anti-trustantitrust and competition, employee and third-party complaints, anti-corruption, gift policies, conflicts of interest, securities regulations and other regulatory requirements affecting trade and investment. The application of these laws and regulations to our business is often unclear and may at times conflict. For example, we are subject to the U.S. Foreign Corrupt Practices Act and other anti-corruption and anti-bribery laws, but in manyother foreign countries, particularly in those with developing economies, it is common to engage in business practices that arewould be prohibited by U.S. regulations applicable to us, including the Foreign Corrupt Practices Act.under such acts. We cannot provide assurance that our employees, contractors, agents, and business partners and vendors will not take actions in violation of our internal policies, U.S. laws or U.S.other applicable international laws. Compliance with these laws and regulations may involve significant costs or require changes in our business practices that result in reduced revenue and profitability. Non-compliance could also result in fines, damages, criminal sanctions against us, our officers or our employees, prohibitions on the conduct of our business and damage to our reputation. In response to the COVID-19 pandemic, federal, state, local and foreign governmental authorities have imposed, and may continue to impose, protocols and restrictions intended to contain the spread

In addition, approximately 48%50% of our employees are located outside the United States. Accordingly, we are exposed to changes in laws governing our employee relationships in various U.S. and foreign jurisdictions, including laws and regulations regarding wage and hour requirements, fair labor standards, employee data privacy, unemployment tax rates, workers’ compensation rates, citizenship requirements and payroll and other taxes, which likely would have a direct impact on our operating costs.

As a global company, Adobe isWe are subject to global data protection, privacy and security laws, regulations and codes of conduct that applyrelate to our various business units.units and data processing activities, which may include sensitive, confidential, and personal information. These laws, regulations and regulations may becodes are inconsistent across jurisdictions and are subject to evolving and differing (sometimes conflicting) interpretations. Government officials and regulators, privacy advocates and class action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data. This increased scrutiny maycan result in new and shifting interpretations of existing laws, thereby further impacting Adobe’sour business. Globally, new and emerging laws, such asFor example, the General Data Protection Regulation (“GDPR”) in the European Economic Area, and the NetworkUnited Kingdom continues to be interpreted by European and UK courts in novel ways leading to shifting requirements, country specific differences in application and uncertain enforcement priorities. More recently enacted laws, such as the Personal Information Systems Directive (“NISD”)Protection Law in Europe,China, and new and emerging state laws in the U.S.United States on privacy, data and related technologies, such as the California Consumer Privacy Act, and the recently passed California Privacy Rights Act, the Colorado Privacy Act and the Virginia Consumer Data Protection Act, as well as industry self-regulatory codes and regulatory requirements, create new privacy and security compliance obligations and expand the scope of potential liability, either jointly or severally with our customers and suppliers. As a security example, pursuant to the U.S. Securities and Exchange Commission’s Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure we are required to make certain disclosures related to material cybersecurity incidents and the reasonably likely impact of such an incident on Form 8-K and will be required to make certain other cybersecurity disclosures on Form 10-K. Determining whether a cybersecurity incident is notifiable or reportable may not be straightforward and any such mandatory disclosures could be costly and lead to negative publicity, loss of customer confidence in the effectiveness of our security measures, diversion of management’s attention and governmental investigations.

While we have invested in readiness to comply with applicable requirements, these newthe dynamic and emergingevolving nature of these laws, regulations and codes, as well as their interpretation by regulators and courts, may affect our ability (and our enterprise customers’ ability) to reach current and prospective customers, to respond to both enterprise and individual customer requests under the laws (such as individual rights of access, correction and deletion of their personal information), and to implement our business models effectively.effectively and to adequately address disclosure requirements. These new laws, regulations and codes may also impact our innovation and business drivers in developing new and emerging technologies (e.g., artificial intelligence(for example, AI and machine learning). These requirements, among others, and may impact demand for our offerings and force us to bear the burden of more onerous obligations in our contracts. Any perceptionPerception of our practices, products, services or servicessolutions, even if unfounded, as a violation of individual privacy, data protection rights may subjector cybersecurity requirements, subjects us to public criticism, class action lawsuits, reputational harm, or investigations, or claims and other proceedings by regulators, industry groups or other third parties, all of which could disrupt or adversely impact our business and reputation and expose us to increased liability.liability, fines and other punitive measures including prohibition on sales of our products, services or solutions, restrictive judicial orders and disgorgement of data. Additionally, we collect and store

Transferring personal information across international borders is complex and subject to legal and regulatory requirements as well as active litigation and enforcement in a number of jurisdictions around the world, each of which could have an adverse impact toon our ability to process and transfer personal data as part of our business operations. For example, European data transfers outside the European Economic Area are highly regulated and litigated. The mechanisms that we and many other companies rely upon for European data transfers (e.g.,(for example, Standard Contractual Clauses and the EU - US Data Privacy Shield and Model Clauses)Framework) are the subject of recentlegal challenge, regulatory interpretation and judicial decisions by the Court of Justice of the European Union. The suitability of Standard Contractual Clauses for data transfer in some scenarios has recently been the subject of legal challenge, and while the United States and the European Union resulting inreached agreement on the invalidation ofEU - US Data Privacy Shield.Framework, there are legal challenges to that data transfer mechanism as well. We arecontinue to closely monitoring the impact of the Privacy Shield invalidation and othermonitor for developments related to the remaining valid transfer mechanisms available for transferring personal data outside the European UnionEconomic Area (including the EU - US Data Privacy Framework) and other countries that have similar trans-border data flow requirements and adjustingadjust our practices accordingly. The invalidation of Privacy Shieldopen judicial questions and the open questionsregulatory interpretations related to the validity of Modeltransfers using Standard Contractual Clauses have resulted in some changes in the obligations required to provide our services in the European Union and could expose us to potential sanctions and fines for non-compliance. Several other countries, including China, Australia, New Zealand, Brazil, Hong Kong and Japan, have also established specific legal requirements for cross-border transfers of personal information. Otherinformation and certain countries such as India, are consideringhave also established specific legal requirements for data

Our intellectual property portfolio is a valuable asset. Infringement or misappropriation of our patents, trademarks, trade secrets, copyrights and other intellectual property rightsare valuable assets to us. Infringement or misappropriation of such intellectual property could result in lost revenues and ultimately reduce their value. PreventingWe protect our intellectual property by relying on federal, state and common law rights in the United States and internationally, as well as a variety of administrative procedures and contractual restrictions. Despite our efforts, protecting our intellectual property rights and preventing unauthorized use or infringement of our intellectual property rights isare inherently difficult. WeFor instance, we actively combat software piracy, as we enforce our intellectual property rights, but we nonethelesscontinue to lose significant revenue due to illegal use of our software. If piracy activities continue at historical levels or increase, theyThird parties may further harmillegally copy and sell counterfeit versions of our business.products. To the extent counterfeit installations and sales replace otherwise legitimate ones, our operating results could be adversely affected. We apply for patents in the U.S.United States and internationallyin foreign countries, but we are not always successful in obtaining patent protection or in obtaining such protection timely to meet our business needs. Our patents may be invalidated or circumvented. Moreover, due to challenges in detecting patent infringement pertaining to generative AI technologies, it may be more difficult to protect our newly created technologygenerative AI and related innovations with patents. Additionally, if we are unableuse generative AI in the creation of our source code, we may not be able to obtain patent protection forrely on copyright to protect such intellectual property. Further, the technology described in our pending patent, or if the patent is not obtained timely, this could result in revenue loss, adverse effects on operations and harm to our business. We offer our products and services inlaws of some foreign countries and we may seek intellectual property protection from those foreign legal systems. Some of those foreign countries maydo not have as robust or comprehensiveprovide the same level of intellectual property protection as U.S. laws and schemes as those offered in the U.S. In some foreign countries, the mechanismscourts and could fail to enforceadequately protect our intellectual property rights may be inadequate to protect our technology, which could harm our business.

We are subject to various legal proceedings (including class action lawsuits), claims and regulatory inquiries that our confidential informationare not yet resolved and trade secretsadditional claims, enforcement actions and inquiries may arise in the future. Any proceedings, actions, claims or inquiries initiated by or against us, whether successful or not, may be disclosedtime consuming; result in costly litigation, damage awards, consent decrees, injunctive relief or published withoutincreased costs of business; require us to change our authorization,business practices or products; result in negative publicity; require significant amounts of management time; result in the diversion of significant operational resources, or otherwise harm our business and in these situations, enforcing our rights may be difficult or costly.financial results.

We may incur substantial costs defending against third parties alleging thatAdditionally, we infringe their proprietary rights.

Changes in our foreign earnings for the current fiscal year were earned by our Irish subsidiaries. The U.S. Tax Cuts and Jobs Act (“U.S. Tax Act”), enacted into law on December 22, 2017, changed existing U.S.operating landscape, such as changes in laws or interpretations of tax law applicable to us and included certain international provisions effective for us starting in fiscal 2019. Among other considerations, the applicability and impact of these new tax provisions, and of other international tax law changesrules, could adversely affect our effective income tax rate and cash flows in years beyond fiscal 2020. See the section titled “Provision for (Benefit from) Income Taxes” within Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Moreover, we are subject to the continual examination of our income tax returns by the U.S. Internal Revenue Service and other domestic and foreign tax authorities. These tax examinations are expected to focus on our intercompany transfer pricing practices, application of tax rules and other matters. We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from these examinations. WeWhile we believe our tax estimates are reasonable, we cannot provide assurance that the final determination of any of these examinations will not have an adverse effect on our operatingfinancial position and results and financial position.of operations.

We provide products, services and services,solutions, directly and indirectly, to a variety of domestic and foreign government entities, both domesticallywhich introduces certain risks and internationally. Risks associated with licensing and selling products and services to government entities include more extended sales and collection cycles,challenges not present in private commercial agreements, including varying governmental budgeting processes, fluctuations due to government spending cuts and shutdowns, highly competitive and lengthy bidding process that may be subject to political influence and adherence to complex procurement regulations and other government-specific contractual requirements. We incur significant up-front time and costs without any assurance that we will win a contract. Operating within a highly regulated industry, we have been and may in the future be subject to audits and investigations relating to our government contracts and any violations could result in termination of contracts and various civil and criminal penalties and administrative sanctions, including

Our offerings are typically subscription-based, pursuant to product and hurt their creditworthiness (e.g., international travel bans impacting customers in the travel and hospitality industries). As a result, current or potential customers may be unable to fund software purchases, which could cause them to delay, decrease or cancel purchases of our products and services. Uncertainty about the effects of current and future economic and political conditions on us, our customers, suppliers and partners makes it difficult for us to forecast operating results and to make decisions about future investments. If economic growth in countries where we do business slows, customers may delay or reduce technology purchases, advertising spending or marketing spending, and we have already experienced and may continue to experience the impact of a global decline in advertising spend as the pandemic continues to unfold. This could result in reductions in sales of our products and services, more extended sales cycles, slower adoption of new technologies and increased price competition. Among our customers are government entities, including the U.S. federal government, and our revenue could decline if spending cuts impact the government’s ability to purchase our products and services. Deterioration in economic conditions in any of the countries in which we do business could also cause slower or impaired collections on accounts receivable, which may adversely impact our liquidity and financial condition.

Our operating results and performance metrics are subject to fluctuations in foreign currency exchange rates due to the global scope of our business. GlobalGeopolitical and economic events, including war, trade disputes, economic sanctions and

We attempt to mitigate a portion of these foreign currency exchange risks to our operating results through foreign currency hedging based on our judgment of the appropriate trade-offs among risk, opportunity and expense. We regularly review our hedging program to partially hedge our exposure to foreign currency fluctuations and make adjustments as necessary.that we believe are appropriate. Our hedging activities have not, and may not in the future, offset more than a portion of the adverse financial impact, including on our actual revenue recognized, resulting from unfavorable movement in foreign currency exchange rates, which could adversely affect our financial condition, business performance or results of operations.

GAAP requires us toWe test goodwill for goodwill impairment at least annually. In addition, weWe review our goodwill and amortizable intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our goodwill or amortizable intangible assets may not be recoverable, includeincluding declines in stock price, market capitalization or reduced future cash flows,flow estimates and slower growth rates in our industry. Depending on the results of our review, we couldmay be required to record a significant charge to earnings in our consolidated financial statements during the period in which any impairment of our goodwill or amortizable intangible assets werewas determined, negatively impacting our results of operations.

We have $4.15As of December 1, 2023, we had $3.65 billion in senior unsecured notes outstanding and a $1$3 billion commercial paper program with no amounts outstanding. We also had a $1.5 billion senior unsecured revolving credit agreement and $3.5 billion delayed draw term loan agreement, both of which is currentlywere undrawn. Subsequent to December 1, 2023, the delayed draw term loan agreement was terminated. This debt or future additional indebtedness may adversely affect our financial condition and future financial results by, among other things:

Our senior unsecured notes, commercial paper program and senior unsecuredrevolving credit agreement imposesimpose restrictions on us and require us to maintain compliance with specified covenants. Our ability to comply with these covenants may be affected by events beyond our control. If we breach any of the covenants and do not obtain a waiver from the noteholders or lenders, then, subject to applicable cure periods, any outstanding debt may be declared immediately due and payable.

In addition, changes by any rating agency to our credit rating may negatively impact the value and liquidity of both our debt and equity securities, as well as the potential costs associated with a refinancing of our debt. Under certain circumstances, if our credit ratings are downgraded or other negative action is taken, the interest rate payable by us under our revolving credit facilityagreement could increase. Downgrades in our credit ratings could also affect the terms of any such financing and restrict our ability to obtain additional financing in the future.future and affect the terms of any such financing.

Our investment portfoliobusiness relies on our network infrastructure and enterprise apps, internal technology systems and websites. A disruption, infiltration or failure of our systems, data centers or operations, or those of our third-party service providers due to a major earthquake, other natural disasters, including climate-related events (such as drought, water security, heat waves, cold waves, wildfires and poor air quality), power shutoff or loss, telecommunications failure, epidemic, pandemic, war, terrorist attack or other catastrophic event, could cause interruptions to our systems and business operations, damage to critical infrastructure, loss of intellectual property, data security breaches and data loss. Our corporate headquarters, significant research and development activity, certain of our data centers and other critical business operations are in the San Francisco Bay Area and the Salt Lake Valley Area, both of which are near major earthquake faults. A catastrophic event, particularly one that may become impaired by deterioration

The occurrence of an epidemic or a pandemic, such as the COVID-19 pandemic, has had and may continue to have an adverse effect on our operating results. The extent to which epidemics and pandemics impact our financial markets.condition or results of operations will depend on many factors outside of our control and whether there is a material impact on the businesses or productivity of our customers, employees, suppliers and other partners. A global pandemic may also intensify the other risks described in this Part I, Item 1A of this report.

In addition, the market mutual funds, municipal securitiesfor technology stocks or the stock market in general has experienced, and time deposits. We follow an established investment policy and set of guidelines to monitor and help mitigate our exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits our exposure to any one issuer, as well as our maximum exposure to various asset classes.

In preparing our Consolidated Financial Statements in accordance with GAAP and pursuant to the rules and regulations of the SEC, we make assumptions, judgments and estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. We evaluate our assumptions, judgments and estimates on a regular basis. We also discuss our critical accounting policies and estimates with the Audit Committee of the Board of Directors.

We believe that the assumptions, judgments and estimates involved in the accounting for revenue recognition business combinations and income taxes have the greatest potential impact on our Consolidated Financial Statements. These areas are key components of our results of operations and are based on complex rules requiring us to make judgments and estimates, and consequently, we consider these to be our critical accounting policies. Historically, our assumptions, judgments and estimates relative to our critical accounting policies have not differed materially from actual results.

Our contracts with customers may include multiple goods and services. For example, some of our offerings include both on-premise and/or on-device software licenses and cloud services. Determining whether the software licenses and the cloud services are distinct from each other, and therefore performance obligations to be accounted for separately, or not distinct from each other, and therefore part of a single performance obligation, may require significant judgment. We have concluded that the on-premise/on-device software licenses and cloud services provided in our Creative Cloud and Document Cloud subscription offerings are not distinct from each other such that revenue from each offering should be recognized ratably over the subscription period for which the cloud services are provided. In reaching this conclusion, we considered the nature of our promise to Creative Cloud and Document Cloud customers, which is to provide a complete end-to-end creative design or document workflow solution that operates seamlessly across multiple devices and teams. We fulfill this promise by providing access to a solution that integrates cloud-based and on-premise/on-device features that, together through their integration, provide functionalities, utility and workflow efficiencies that could not be obtained from either the on-premise/on-device software or cloud services on their own.

Cloud-based features that are integral to our Creative Cloud and Document Cloud offerings and that work together with the on-premise/on-device software include, but are not limited to: Creative Cloud Libraries, which enable customers to access their work, settings, preferences and other assets seamlessly across desktop and mobile devices and collaborate across teams in

We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating lossesloss and tax credit carryforwards. Management must make assumptions, judgments and estimates to determineSignificant judgment is required in determining our current provision for income taxes and also our deferred tax assets andor liabilities. We record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not.

Our assumptions, judgments and estimates relative to the current provision for income taxes take into account current tax laws, our interpretation and application of current tax laws and possible outcomes of current and future auditsexaminations conducted by foreigndomestic and domesticforeign tax authorities. We have established reserves for income taxes to address potential exposures involving tax positions that could be challenged by tax authorities. In addition, we are subject to the continual examination of our income tax returns by the U.S. Internal Revenue Service and other domestic and foreign tax authorities. These tax examinations are expected to focus on our intercompany transfer pricing practices, application of tax rules, and other matters. We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from such examinations. We believe such estimates to be reasonable; however, we cannot provide assuranceassociated reserves. To the extent that the final determination of any of these examinations will not have a significant impact on the amounts provided for income taxes in our Consolidated Financial Statements.

For our fiscal 2020,2023, we experienced strong demand across our Digital Media and Digital Experience offerings, consistent with the continued execution ofdriven by our innovative product roadmap. As we execute on our long-term plans with respect to this segment. In our Digital Experience segment,growth initiatives and deliver product innovation, we have continued to experience growth in software-based subscription revenue across our portfolio of offerings.

In our Digital Media segment, we are a market leader with Creative Cloud, our subscription-based offering which provides desktop tools, mobile apps and cloud-based services for designing, creating and publishing rich content and immersive content.3D experiences. Creative Cloud includes Adobe Express, a web and mobile app designed to enable a broad spectrum of users, including novice content creators, communicators and creative professionals, to create, edit and customize content quickly and easily with content-first, task-based solutions. In September 2023, we released Adobe Firefly, a group of creative generative AI models designed to generate high quality images and text effects. Adobe Firefly-powered generative AI features are also available across Creative Cloud apps including Adobe Photoshop and Adobe Express. Creative Cloud delivers value with deep, cross-product integration, frequent product updates and feature enhancements, cloud-enabled services including storage and syncing of files across users’ machines,devices, machine learning and artificial intelligence, access to marketplace, social and community-based features with our Adobe Stock and Behance services, app creation capabilities, tools which assist with enterprise deployments and team collaboration, and affordable pricing for cost-sensitive customers.

We offer Creative Cloud for individuals, students, teams and enterprises. We expect Creative Cloud will drive sustained long-term revenue growth through a continued expansion of our customer base by acquiringattracting new users as a result of low cost of entry and delivery of additionalwith new features and valueproducts like Adobe Express and Adobe Firefly that make creative tools accessible to Creative Cloud, as well as keepingfirst-time creators and communicators, and delivering new features and technologies to existing customers current onwith our latest release.releases such as share for review and generative AI capabilities. We have also built out a marketplace for Creative Cloud subscribers to enable the delivery and purchase of stock content in our Adobe Stock service. Overall, our strategy with Creative Cloud is designed to enable us to increase our revenue with existing users, continue to attract more new customers, and grow our recurring and predictable revenue stream that is recognized ratably.

We continue to implement strategies that willare designed to accelerate awareness, consideration and purchase of subscriptions to our Creative Cloud offerings. These strategies include increasing the value Creative Cloud users receive, such as offering new and enhanced desktop, web and mobile applications,apps, as well as targeted promotions and offers that attract past customers and potential users to try outexperience and ultimately subscribe to Creative Cloud. Because of the shift towards Creative Cloud subscriptions and Enterprise Term License Agreements (“ETLAs”), revenue from perpetual licensing of our Creative products has been immaterial to our business.

We are also a market leader with our Document Cloud offerings built around our Adobe Acrobat family of products, including Adobe Acrobat Reader DC, andwith a set of integrated mobile apps and cloud-based document services including Adobe Scanwhich enable users to create, collaborate, review, approve, sign and Adobe Sign. Acrobat provides reliable creation and exchange of electronictrack documents regardless of platform or application source type. Document Cloud, which we believe enhances the way people manage critical documents at home, in the office and across devices, includes Adobe Acrobat, DCAdobe Acrobat Sign and Adobe Sign, and a set of integrated services enabling users to create, review, approve, sign and track documents whether on a desktop or mobile device.Scan. Adobe Acrobat DC is offered both through subscription and perpetual licenses.licenses, and is also included in our Creative Cloud All Apps subscription offering.

Annualized Recurring Revenue (“ARR”) is currently the key performance metric our management uses to assess the health and trajectory of our overall Digital Media segment. ARR should be viewed independently of revenue, deferred revenue unbilled backlog and remaining performance obligationobligations as ARR is a performance metric and is not intended to be combined with any of these items. We adjust our reported ARR on an annual basis to reflect any material exchange ratesrate changes. Our reported ARR results in the

Creative ARR exiting fiscal 20202023 was $8.72$12.37 billion, up from $7.25$10.98 billion at the end of fiscal 2019.2022. Document Cloud ARR exiting fiscal 20202023 was $1.46$2.81 billion, up from $1.08$2.28 billion at the end of fiscal 2019.2022. Total Digital Media ARR grew to $10.18$15.17 billion at the end of fiscal 2020,2023, up from $8.33$13.26 billion at the end of fiscal 2019.2022. Revaluing our ending ARR for fiscal 20202023 using currency rates determined at the beginning of fiscal 2021,2024, our Digital Media ARR at the end of fiscal 20202023 would be $10.26$15.33 billion or approximately $77$160 million higher than the ARR reported above.

Our success in driving growth in ARR has positively affected our revenue growth. Creative revenue in fiscal 20202023 was $7.74$11.52 billion, up from $6.48$10.46 billion in fiscal 20192022 and representing 19%10% year-over-year growth. Document Cloud revenue in fiscal 20202023 was $1.50$2.70 billion, up from $1.22$2.38 billion in fiscal 20192022 and representing 22%13% year-over-year revenue growth and reflecting an increase in demand driven by the shift to remote work as well as our continued efforts to transition Document Cloud to a subscription-based model.growth. Total Digital Media segment revenue grew to $9.23$14.22 billion in fiscal 2020,2023, up from $7.71$12.84 billion in fiscal 20192022 and representing 20%11% year-over-year growth. These increases weregrowth driven by strong net new user growth, including those resulting from the current work-from-home environment reflecting expanded digital engagement.growth.

We are a market leader in the fast-growing category addressed by our Digital Experience segment. The Adobe Experience Cloud applications,apps and services and platform are designed to manage customer journeys, enable shoppablepersonalized experiences at scale and deliver intelligence for businesses of any size in any industry. Our differentiation and competitive advantage isare strengthened by our ability to use the Adobe Experience Platform to connectintegrate our comprehensive set of solutions.

Adobe Experience Cloud is focused on deliveringdelivers solutions for our enterprise customers across the following strategic growth pillars:

In addition to chief marketing officers, chief revenue officers and digital marketers, users of our Digital Experience solutions include advertisers, campaign managers, publishers, data analysts, content managers, social marketers, marketing executives and information management and technology executives. These customers often are involved in workflows that utilizeintegrate other Adobe products, such as our Digital Media offerings. By combining the creativity of our Digital Media business

We utilize a direct sales force to market and license our Digital Experience solutions, as well as an extensive ecosystem of partners, including marketing agencies, systems integrators and independent software vendors that help license and deploy our solutions to their customers. We have made significant investments to broaden the scale and size of all of these routes to market, and our recent financial results reflect the success of these investments.investments and our experience-led growth strategy.

Digital Experience revenue for all fiscal years presented has been updated to reflect the Advertising Cloud segment move. Digital Experience revenue was $3.13$4.89 billion in fiscal 2020,2023, up from $2.80$4.42 billion in fiscal 20192022 which represents 12%11% year-over-year growth. Driving this increasegrowth was the increase in subscription revenue, across our offerings which grew to $2.66$4.33 billion in fiscal 20202023 from $2.28$3.88 billion in fiscal 2019,2022, representing 17%12% year-over-year growth.

In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (COVID-19) to be a pandemic. This pandemic has had widespread, rapidly-evolving and unpredictable impacts on global societies, economies, financial markets and business practices. Federal and state governments have implemented measures in an effort to contain the virus, including physical distancing, travel restrictions, border closures, limitations on public gatherings, work from home, supply chain logistical changes and closure of non-essential businesses. Our focus remains on promoting employee health and safety, serving our customers and ensuring business continuity. As a result,corporation with an extensive global footprint, we have taken actionare subject to risks and exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations. We continuously monitor the direct our teams to work from home, suspend travel and replace in-person events such as Adobe Summit and MAX, with digital events through July 2021.

Revenue for fiscal 2021 benefited from operations of $5.73 billion during fiscal 2020 increased by $1.31 billion, or 30%, from $4.42 billion during fiscal 2019 primarily due to higher net income adjusted foran extra week in the net effect of non-cash items.