Jonathan Vaas | Associate General Counsel and Vice President, Investor Relations |
Shantanu Narayen | Chairman, President and Chief Executive Officer |
Abhay Parasnis | Chief Technology Officer and Chief Product Officer, Document Cloud |
Scott Belsky | Chief Product Officer and Executive Vice President, Creative Cloud |
Anil Chakravarthy | Executive Vice President and General Manager, Digital Experience Business and Worldwide Field Operations |
Gloria Chen | Chief People Officer and Executive Vice President, Employee Experience |
John Murphy | Executive Vice President and Chief Financial Officer |
Brent Thill | Jefferies |
Brad Zelnick | Credit Suisse |
Mark Moerdler | Bernstein Research |
Alex Zukin | RBC Capital Markets |
Jennifer Lowe | UBS |
Jay Vleeschhouwer | Griffin Securities |
Kirk Materne | Evercore ISI |
Keith Bachman | BMO Capital Markets |
Ken Wong | Guggenheim Securities |
Walter Pritchard | Citigroup |
Derrick Wood | Cowen and Company |
Sterling Auty | JP Morgan |
Stan Zlotsky | Morgan Stanley |
Good morning and thank you for joining us. Welcome to the Adobe Q4 Earnings and 2020 Financial Analyst Meeting. I'm Jonathan Vaas, VP of Investor Relations for Adobe.
You should have a copy of the press release we filed this morning as well as our investor relations datasheet. We've got a great program planned for you today, which is in many ways similar to what we've done in the past, and in a few ways different. XXth at my marks year analyst Adobe. meeting This
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Digital are are approximately we of ARR So, ado, billion. further revenue XX%. of segment of fiscal year-over-year Media revenue Digital Total Net Media for approximately year new targets Digital of $X.XX the XXXX. without Adobe providing approximately Experience here $XX.XX and A revenue year-over-year approximately growth growth XX%. of billion. Digital shares. XX% approximately approximately Share on on of XX%. XX.X% approximately and approximately tax non-GAAP XXX Experience million subscription revenue rate basis approximately earnings of share growth per $X.XX year-over-year GAAP of per share a basis. non-GAAP $XX.XX. a counts earnings of segment GAAP
approximately revenue targeting billion, Digital year-over-year subscription million, growth growth XX%, revenue are of year-over-year of Experience segment XX%, Digital year-over-year new approximately ARR tax net approximately $X.XX revenue XXXX, and XX%, approximately approximately of earnings of of revenue share per a of Experience Digital earnings shares, approximately basis XX.X% basis. rate Share a approximately Media of a $X.XX. approximately million XXX of we with Digital segment non-GAAP non-GAAP XX.X% QX For Media GAAP $XXX of on share accounts GAAP of on approximately per $X.XX and growth
we FY XXXX. terms of performance we're Adobe growth from rates was as back of have and things to scale. as two, home XXXX strong in would growth, the EPS about, followed we in XXXX FY as up, higher tax the assuming we're as proud XXXX. net in about we typical related continue with record a experienced expanding in fiscal new ARR a given in four we at And quarters we XXXX. and something COVID from growth QX a finish a in past strong business expect saw look margin a do. as terms of lap FY market the to have QX in modest QX, and And seasonally in XXXX a Media strong QX as wrap to leader momentum dip more by for working Digital To XXXX, in seasonality, delivering from while FY from as to particularly towards QX the typically and the strong not well expect we is QX effective growth be three we savings sequentially resulting all In spoke grow pandemic, resulting we everybody year summer And last been have quarter,
profit record In and flow. fact, cash
growing growth. for long and And market are customer innovations creation to and top we're opportunity XX with just as we We driving and operate months. we've shared next a the targeting track driving record universe, proven category revenue large have over in line line and $XX over going a term expanding expansion, bottom billion
a Q&A. [Video going and Jonathan then will go to we're the Presentation] Now, off to short video kick
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please Instructions]. ahead. Jefferies, [Operator go Thill Brent of
the looking relative lower just about can in it Thank overview and more percentage today. you're Digital plan there great confidence, year talk in questions in for the is driving great is like business seems some Shantanu, of next seeing that been consider you Digital And quarter then, increased some on little into business? current to you. to Experience, anything thought. many the are Maybe for investor around had the there quarter? And momentum. that some the what Media maybe importantly, momentum upside Anil was Thank a Digital have than Media asking,
to and answer happy questions I'm both give color. you some
when as was know, are well XXXX, back performance. the to at these it ARR, record entire year. I you it half targets look the as the given targets, for the the both which think the And we in $XXX related highest would Media, at strong. you certainly, Digital Media, as were QX our of the QX have new to we relates beginning it had and at when as you that First, targets fiscal you QX Digital when of as incredible And very performance. Digital look just Media, net I performance phenomenal look at is say year, in QX million
we give to to see apps full in pretty growth I And so, upselling think unabated. drivers the acquiring you we our continue just and between driven be tried, customers, the color real from Everything them, individual media digital data operating that And the allows sophisticated. apps. therefore, us model
concerned, far for showed as we had even targets as which to we're the it QX, was in beat, a relative business. that momentum the so, And our
ARR, nothing. So, Digital Media
addressable pleased continue market in total We performance. with and to really the believe our of the expansion
was happened I customer there, to As the the think as QX was what in Digital it companies of employees. safety clearly pandemic, top the continuity what mind as all momentum Experience was, of with and and were dealing QX, relates well,
was As talking everybody out soon way about only that as the as digital pivoted, pandemic. the of
started for were experience And clear the clear so, The That the was they the Experience management look to accelerated a being us. at platform momentum. who really leaders customer conversations in and Adobe that, we're XXXX at believe for we you leader, our we're is really beyond why which and pleased. what our XXXX excited be as look expectations targets. net-net, will accelerating continue about And to
of next question comes Suisse. from Credit Brad Zelnick Our
to a disrespect Mike, XXth but no your think event. year, great I Jonathan, you've delivered
it's and have another And one from So, thank question for John. Shantanu best is yet you for Adobe. from to that. I the clear come that
very you to struggling – growth lose doubt rates of lead, exciting markets you in Shantanu, the optimism For in would what across share Shantanu. which rates board. your reconcile and are very the run I'm expectations suggest the – but expect a expressed by in bit many no participate growth cases current to large, and
entire a How just about apps? And observation curious to should guys. that's we the if conversion think be to the left? much, Thank app just related missing. all levers might that, usage what's it's to opportunity I so So, And And non-genuine of wanted are in Creative John. fair value John, what which deck, the you and to I what here the ask about maybe some highlight Cloud of single suite? Creative slide XXX you for presented Cloud. you think about
I'll start next the do in helping we what that. that leadership has normalcy more hopefully can you only showed appreciate to and And like the we event get pull off said, virtual is back Jonathan with we together year. that
market I we to have about and categories of leaders the how one think as talking that it, each it and relates about. that thinking we're market in in opportunities the we're we're the certainly the
First, it's game, those one zero actually categories. of be to sum continuing a each leader in the while don't we're think we
digital looking how the gaining you're become we're on we side are platform, but share. going actually And customer a of category see the specifically Certainly, experience, you're we it what So, solutions and I in at market creative feeling the experience not, like as it's it don't entire whether end-to-end applications. and think all we've know these insights. true of of to leader, relates to I where done, data around consolidation are said
So, in about our we're prospects one them. each of very excited
believe continue continue gain market that will and number to we to be will one share. We
that's really we ahead of in the look terms opportunity the at way us. it So, that expansion of
we're communicator attract all And as And different digital of home, segments the use Cloud so really and segment seen, do the conversion consumer to to from need and said, definitely customers of in to that the different and single is terms as types of pandemic many work apps, different and to to opportunities and segment. many growing of Creative customers. the create touching particularly platform. we've we apps But solutions so customers got during the our we've
for overall, seen that us ARR monetize to gives of customers in value and there the over continue an us, to of obviously, So, to base growth time. the opportunity fantastic is access
at very away a probably for product. the sizable But be long non-genuine environment a may non using that good have genuine sized that we a time. opportunity. entry point It's haven't chip We customers our price when in single for very we apps
to non-genuine innovations And the are our attracts use solutions most may and we not product that available using that have. our so, even certainly based mobile actually cloud a have that up-to-date as they're it's that people solutions, see realized they with the products way innovative
attract an that of really we more the the franchise. Brad, us, can more address and addressing for of to segments all different important it's So, and in terms people aspect
Bernstein question next Mark our take Moerdler, now Research. will We from
growth. Adobe's your modeling the of written, very a been on Congratulations been the TAM thoughtful indicator good quarter. past. and And you've future TAM measured in in really leading the has as
specifically Any feel most you large would changed? so think the TAM Can that's I more find Creative would what in be TAM big give driving some is confident such Cloud, a a expansion, surprising. you're bit us modeling what's expansion? color for on you appreciated. year-over-year Why color
just addressable while, they sink market us believe unlike what the addressable followed and for kitchen seriously, their our companies know, throw very market. some you take is As you've we who a in
at digital mobile. And me of growth look a so, on let little when TAM, With and touch the media bit vectors. the you some
we Firstly, talked both an real of the the are only how that, that have products space the multiple the until mobile ability the And funnel created. on-ramp. mobile attracting XXX have surface offerings And we that million across has some become terms storage and also new in – also monetizing become options the pretty terms multi we which mobile – has in these of was of we've as we in surfaces. to serves already platform, to about a had IDs impressive customers mobile in this ways one but our services,
So, grow. of continuing drivers one that's to clearly is that the
nature authoring we've the the in addition the that's well, notion applications consumers, and of the of author I doing that the this monetize and us busines that that we seen more think a that. with also of really start seen the content Stock, creative particular of services the as drives more to Certainly, piece part the services also people another paradigm our and where like of pros stakeholders collaboration as collaboration content- allow communicators addressable to deliver the we further all target amount in and these think what feel acceleration to products, is who've of opportunity. well using us content, business
magnitude the respect of the are searches why much web Creative on the some targeted become, side that's that's I doing industry insight and of gave how we've side, and On what the PDF on that into web, kind you to to with us an of Document to gives what have in and the the people Creative. confidence. a of sort that able approach same funnel all brand That's acquisition monetization convert confidence traffic of lot that opportunity. new models a certainly being task-based true And in of we is that all as
to inflection we going I it's digital have And And past of been workflows only to increase is presentation, during regulated this or little that's Stock when slow document or services, the may digital, opportunity as happening of industries, with what's whether point, Sign, prepared you fact who the think, the terms at the left said respect about on so, it's also look enthusiastic – in the no bit use in them. more it. less number people for touched a we and why which there's
for that TAM continues adds why to all the really up to of us. So, build
take next from our of question Zukin now can Alex We RBC.
Experience? think ask in about the wonderful how and business pandemic? both a year, surprised presentation. John, analyst enthusiastic Digital showing coupled from kind of about I to a Congrats think, previous leverage for one-time should you with of the given Where vectors savings on a likely investors are you and Media the quarter to modest what's question, as of pleasantly this at wanted growth headwinds most great dilutive Shantanu, obviously, the T&E margin out acquisition. we and the the some the similar next you're come are I we tailwinds in year,
guess, efficiencies between around and post-COVID how go-to-market durable leverage trade-off on the margins growth? think operating I we should and of So, the about impact the
it's it's From of company. definitely, my the that's And Alex, perspective, across all the the three story businesses. tailwinds
the well. creation didn't notion side, and expansion, as a products. our global talk on this Global of across content our more be, driving types the digitization usage content I more Creative a to But of in of consumption media becomes think tailwind about all business. particular more we as continues is just certainly phenomenon, that
it had we about the remote I Part to biggest and about think to is touch tailwinds sure as work. our business thought Gloria happens. about remote on we making was we happening think the as what and Document how see the we side what work going how that own on reason think of probably relates
automation else? as tailwinds just or see Experience, Digital Digital us Experience. relates to, it transformation. permit in usage of of a more the see as to crisis raised more executive significant both mind now I of now in stand anything a if has I line And every – and the as electronic is is health workflows. level digital that which so, And do business go the and for top right of to going So, to and to documents, to I And what's that think And license business, back I for Document one alluded urgency. anything, the pandemic driver's you're well the is going every and drives John this, think CFO the C which talk
been So, business some not little they're of or And way, digital or it. unfortunately engagement in more, the industries on around going saying, whether the to bit you're that in once vaccines are usual. travel way whether the impacted all okay, other only is the vaccines hospitality have a we're back you're as come,
look don't feel the associated our and headwinds net-net, with they're like really businesses So, I business. at
to We has fairly will environment, be dependent robust. macroeconomic actually continue on the which continued be to
And excited than so, think we're that less more frankly, rather about I our solutions important, prospects. important. And the we become, deliver
company, Alex, think about so growth to been we we time. we're drive growth, we to as we margins when target demonstrate invest time a able I question, are On that, over in margin And we've how growth the expand want to continue able growth. over and more – to think we
our our level still about FY coming think really XXXX. You expanding have but XXXX. pleased against we're margins expect to QX had down operating high, expanding XXXX, original from QX, over FY we And while to this of we operating margin targets still out margin for in do deliver XXXX FY
committed will in and the half to impacted gradual to expect deferred drive XXXX of latter our realize So, over those between be we strike continue we're phased even margin to in to the we be we'd because the investing is benefiting we'll the the the half. FY for to savings. the some year, be for so, we by savings still happens FY that. of going definitely that's related want mention, going continued to invest right to that first And those lapping Not in for reentry savings, expect The first reason balance haircut of revenue COVID much growth But as the half and XXXX. able to later, we're to be from that But expanding acquisition. growth. Workfront
great job. another on again, Congrats,
We take our question UBS. next can now from of Jennifer Lowe
me. for Two
seem just a for and point And app that the app, the time? as and communicators suite But Brad more given why the the expectation get around just discussion landing all the earlier. be as balanced? it is is you single as just color of composition that be for be seeing ones But asking then is attractive XX/XX at John, bit asked maybe color. of could an looking and First, presumption you little continue and and single of ARR on-ramp opposite percentage full single Alex over And a the curious Workfront stays versus lot there. by to momentum grown consumers hasn't ultimately lean into dilutive. could an sales full communicators a mix? I that, consumers, of need in question mentioned motion, if it Or secondly, we app to they'll that more that I'm there,
impacting is baked QX more impact. or full for Thanks. revenue add guide the color any around the either got Workfront? we've QX So, But there into year to what's margin
we're units area them on of remember, grow. to view both ARR the to take the an view it's also better to you which job app. I'll the single convert have is continues way units to and know, look as one in as we ramp at well And the But platform, the a Jennifer, And the the the you view. as apps. we single better acquire where, them. the them full doing able as But into That's being app. that
is what lower. So, I ARPU app a think that bit recognize pricing have the you just is to little and single
And chart different it. look through look clearly, you will that we in that's at units of of associated the the show picture so, it the what's terms pie look revenue the apps. or And single happening same ARR showed, when a that with proportion higher look,
and a that's Suite, platform how that, that know Creative do the way new the that to so, to And back drive model we in. customers to attract all
app model, us. your single around answer for actually the working the it's full that's and So, apps to and question
full it's terms purchase just accounting in closed, have don't yet. the of acquisition, Jennifer, we completed Workfront, Workfront so the
ability as our fairly haircut are And We can with targeting we're FY invest you targets, significant operating our shows as for in and But our And full-year these margin deferred slight kind dilution. leverage over be to and growth, XXX. in expand model, to that as earnings. is a our margins typical revenue our result, of still there'll the see a expecting just continue expansion still acquisitions. significant
can of Griffin next Jay now We take our from Vleeschhouwer question Securities.
the noted to R&D or then anniversary And of term like? can the so, foundational it's acquisition. of think that long the impact investing and what Workfront are that long-term for value foundational evident say, that year year, services application acquisition for you pretty if is, in has therefore, do you closing this for the this and happens of the be have the also secondly, of Adobe the you referred XXth the terms Macromedia on And so in summit, technologies week it And there Abhay lasting technologies you this. and acquisition. in be or implications the And recurring question, value value the what to week of theme the And this XX half-life, Shantanu, the or or Adobe has a spending been today more the from have company. think shorter? a lasting DX might been to the perhaps particularly critical company of do that intelligence
more ahead disclose Sign services Looking might specifically material? I'm that asking what those from in the become newer from incumbents contribution the over ones aside be? they something as have over Stock, new might more services next and you do number those the you discrete of years, are think about of you really that time And mind. begin the to
also both. back in sort means processes the it spend, ability is it I take December an journey amount look services, deliver always only, be web understood moments. GoLive to the as amount as December me and to you Workfront, of and have of acquisition drive just relates for the of as clearly in my because And not efficiency this component about expression, even which can not point with proven talked let internal – That associated campaign and XXXX. And to to us that the for while. what it's seminal one workflows of seriously, more on those was campaign. technology at also velocity, of a itself, well, But has think embarked about of we done the first the had acquisition but I one when of we we've about the of it's say, of with XXXX, content out, privilege Jay, did the the when these Macromedia going the we've we've the was it anniversary acquisitions. – what creation
and about very we're it which people the why about Workfront the is work campaigns not these platform, about it does get excited with us. when and technology it's it, out create to management the and associated and it's want this personalize but so, global, also ability what And for just much
think written the we focused correctly perhaps most side, opportunity. a the of well little a accelerant just I do that measurement opportunity focusing spent relates that on are with have, content marketing significant defocused management, also what number think the monetization they company, happens and – can pointing on fact while broader time focusing bit to And creation, and or I as integrate I our the in that have And use a we be Creative about can as creation, Cloud. a Workfront conjunction desire Experience and entire that Creative to as as Cloud, continue to to you've think who customers the significant think we is people to the on well. on it more this as what we with Cloud content
and whether of actually for you was whether that us it Macromedia, one talked look and Anil Day opportunities glue content marketing the it significant that seminal slides we terms in application. the when you actually it's is, Workfront which created was really ties the products, So, deck in where glue, is at all together, these that together of how platforms Software our have why tying describes when now of the about
that that, more be across into entire workflow. addition point, your to of significant we like think to in each the more increasing feel I integration campaign our a solutions. capabilities could So, And of marketing enabler really providing people really
our creative I business to our breadth the document and what services, your offering. associated second of our point is is think actually with both phenomenal about business
some this to questions. the I of is related think
say, from color? we services the offerings, hey, little how mobile offerings, offerings, single and give combination Stock investors we mobile part And have scales, understand us the offerings. as material full the need reason to I how have Sign color have have more was business That's we why We apps can a John I we think of freemium have have of given. the giving on bit you and offerings,
So I we seeing the continue think how can provide around and know answer Cloud, underlying we're question the Cloud will the to figure incredible it's we that of out the to more I insight, what's both but Document momentum business. it. Behance that joined there's Scott significant And it's associated close the and XXXX. of business entire is eighth fueling been to in anniversary that And what's also with when very, I've very depth us which our amount reminded of Creative
Scott, the But So, well. as for thanks have good question, Jay. it's onboard to you
We question Materne from Kirk can ISI. Evercore next of now our take
just was don't purchase Experience those as of that starting from three of maybe probably I write-down. particular, the pillars one that throughout you is the all the you if And XXXX where know of you calendar business I each assume fair curious that should of of I next And realize and us big two, there, see assume I fair journey. Thanks. on to you're the data, first your number from gave the pillars kind there in of acquisition, we Shantanu, I just quarter. customer rest bit $XX are full-year just revenue, particularly for you positioned of to kind excited want into wondering those terms – on thoughts that those assume But it's then, or given them? for head about the year. just year. opportunities but the for point John, the million double assume I or revenue and ramp Workfront would just area a it's in that Cloud on in can scale give little on customer content there, a click
least my between of at products the distinguish one phenomenal. I ask the Manager never seen the Experience products I question we've them. is didn't highlight that the in around that Kirk, whenever I me been ones has cloud as that get favorite momentum asked can the would I Adobe don't which answer, Maybe that you because portfolio, questions version, is – really
really And seen some so, good we've success.
agility. how everybody again thinking As we they improve about content, is their moved,
so, for we've was a BXC we're represents in seeing a how And that Because didn't have a that pandemic. it. amount create commerce content commerce, opportunity site the online enable integrated whether can or demand which and it, content the BXB, of and seeing ability in you the to think for tremendous I it's fact just every a and company transact fair business headwinds the large
continue to is coming commerce, seeing big So, the talk of of with content and a insights driver our I'll believe data underpinnings this associated that one within profile. is what one business the data back it. are to experience the the it and with be of And second about continue is we and now where all we unified platform, a in reported part associated of and
seen in areas QX it. really that can they significant I they deliver of profile, also how and momentum QX. how that So, want one in People we've to create know think can is the that
So, that, if prioritize are of growth though, Kirk. out we two three like I'd were three, they them the say opportunities, all it probably of
Absolutely.
The to our Workfront pans for on haircut. of course, first year or are deferred depending on the that we estimates out the a $XX what two have for modeled targeting million kind out purchase in we the correct. based be, on quarter, You're of accounting revenue
will But, But quarter. really we expecting it we upon when later again, million. million So, ramp. dependent purchase between the finalize this and $XXX are $XXX accounting
on we certainly, the alluded accretive of profile Workfront expectations John expect that, the and picture for they acquisition, business. terms do the in all would And that of big be company to, growth the with things to to that of our opportunity net the Kirk, where is accounting what that
and what reported, relative to is I just So, to John be our looking on what how want we're we're as make plan, internally will growth mentioned, accounting the sure the separate we towards side. driving at
Keith BMO. now And we take from Bachman question can our next of
ask I'll a directly to question is One from me. Shantanu you. consistent
the numbers again, continues at growth. you're higher to XX% growth, terms Cloud ARR between Document up the the very of TAM in and Document As than growth ARR which is strong Cloud the put XXXX and of opportunity, guiding XXXX far
for Very So, by Thanks think pros it, so the call next actually then, And and my accelerate? second TAM? growth I potential about can interesting. rank consumers, just should to or you we the I'll users the the rate and helpful model the much. that current think growth the the disclosure mid-XXs the be Does a growth conclusion would you order, to that the including growth, what rate much of our run and pretty to ask creative being driven speak, surrounding wanted question. the Creative see dollar the of Thanks communicators ARR as significant very Cloud, just over Where very years? of TAM. couple suggest
I there there. think questions two were in
ARR. it products Document are our the relates both get to as is within ensuring within adopted remember first happening the are think products one – of the what's adopted, and what I being we the Creative as document we are Cloud where the that Acrobat part document of what Cloud huge also Cloud. a report the reported Creative in part Document But and Cloud
as collaborative of So, the large. adoption segment ways, is in in creative that in the well both, in seeing is because workflow what also documents is a extremely PDF as the medium see we for we're many as reflected growth that
continued of opportunities. that going that certainly, we're investment to acceleration fueling that think a in of from business I business it of and confidence gives lot But think grow I to make in that really large the the two our growth being the continuously able we've us So focus perspective. as document seen and business
large a the I always think question, space, we the Jennifer's ARR, new it's are creation, I mobile is versus segments, to answers. appeals a as customer numbers in it communicators it could seeing at you halo. as potentially which with as the have the on imaging, been part big what look to think seeing with And consumer the associated certainly, maybe like a we're side, the of ID what primarily different which the much category related ARR consumers,
because in largest the creative terms pros. And to But in three acquisition, the many opportunity price so, we in consumers, well of of different then as then the in customer are communicators, segments. particular the in those drive new probably customer all cases, numbers across into as, upsell points, continues to be way ARR
So, creative phenomenal K-XX seeing it's but next that educational in whether entire that fact things the to that's that's had actually may how I year, done depth differentiated and I each people be we've the be DDON for by different, institution, professionals, we And business way where enough in what to we it's simple one offerings should different of sustainable and And this by look so cases, breadth where a But in generation at know education. Education I such mention. m of also the talked it. the to a that and license order a really Again, example, offering. small. it. of about, is have us to these know personalize I've able an makes we do many or that it's license and you a a n that multiplied think for the geography. Maybe want ARR
thing that as the those hopefully, think nice that cuts of a all gives little bit of now a is to them. across each of segments. about we product how color you have we So, folio But
take our Wong Ken now Guggenheim from question can Securities. We of next
put the me. just slides –future is million customers went impressive. which for average wanted I on you $X from XXX from guys there up where one the the expansion the touch $X to very million, top ARR Just with to
list see top what kind far base. more how wondering million of million could adopt the from possibly CDP. And XXX you Just you your think customer have kind also, a full type headroom uplift with to $X you customer do then $X similar of maybe as down that your
many product, I think in for what on as well the he think one calls on really done is responsibility accounts, of he I Ken, things, the is, as entire has the taken impressive Anil on has that has which focused ways, the transformational go-to-market.
getting really a customers we number that customers. transformational focus an this headroom demonstrated analysis showed has that of had, think good a I go-to-market with associated it's we there's significant creating were traction accounts this on with that massive our and while with
to that And show is. again, associated products. I Experience each was think the second better is demonstrating honestly, good with And I ROI that, and of Verizon think, Anil, example also our example of we're what a ROI on the at far touched the the the fact articulate Cloud. how the part
analytics the you commercial like well the strategic as things into well the add shop and That's the have do cloud as these for as continue the any that there's can one-stop commerce large web. appropriate AEM to to the become want customers, the it the there's way, just to getting a fact what on asked and relates a provisioned service and or it's to refer focus what's Magento as transacting that who to service relates take not you the integrating Experience think for really that as actually for as and makes in ROI a as So, value, to it's massive beachhead. it limited we accounts, Cloud campaigns, or set into say, on us you the doesn't that on that it we websites commerce depth shape we and your that and base, Workfront, enterprises customers, ability Web easily question was service create maybe presence, take transformational around mean with continue solution the easily these just opportunity. enables But it, of form ARR. could or of apply deliver recipe that I to it transformational be business breadth think mid-market to as it going driving a to that new accounts. small medium back to Rather, and And ramp again, customer drive significant we very is to to
So, people one-stop on-ramp. aspirations clearly, are a to quick enable to the have and
can Pritchard our Walter from Citi. We now question of take next
coming mobile the that. two Abhay. from John, disclosure one year? questions. the XX%? franchise follow-up. for trying other coming you other fiscal little the to XXXX. from? different. XX% a XX% of one for prior I apps and John just Can have about think subscribers were that in One And frame bit Cloud in new then, slides, I to of they have Where's past the clarify you the the Are the talked was individual I'm I Creative
a places. having They're for huge coming created we IDs talked on-ramp as mobile, been couple And Certainly, different on us. a before, about is new many from so mobile. we've Adobe
that We perpetual, the also is part other well. have as of
those So, of in definitely strong performance across QX. both
on, still Could you effort And you then talked tangible API strong, products? Sign, and that embark where he's of expect revenue impact And Abhay, about for competitors is if of sort your quite around talk leveraging in just productize building one there as around that access that. opening APIs. I know to about for more on some – you're you based see you that of up the
across Document covered, at level, we but a play, and and all been the of across business always Document where both macro I ISVs our has bit, you Cloud solutions applications. little a a know, and ecosystem businesses, a into vibrant line PDF in about it's shared of Shantanu in lot as Cloud, industry especially strategy I very talked connected think for us verticals,
applications with now And attached APIs But There our connecting have ecosystems Workday, of opening ServiceNow of so, and three starting are ISVs, and also into applications are and then players. like do their up are and kind directly joint is are we kinds motion large APIs what we we Microsoft, working there. to where platforms, Magento. we ecosystem. developer kind developers ecosystems of it's know, like and around we have tail opening signatures, DX developers. broader the connect AEM, that of PDF enterprise our And for are And on to business, products up even up as APIs whether it our who to of opening long large our Magento you
around thing would where play, The applications large Microsoft, ISVs long into they of is our AI. and inline I and services we and like it partnerships and their more APIs reach kind I'll say, say, to ServiceNow, announced developer for last Workday a embedding integrating, tail market. also, then taking So, shared that are have and we broad
developers and also The of our ISVs, our differentiated. platform exposing and other unique piece intelligence Sensei around services applications the and those also opening strategy very API beyond for which is are up
So, other of component that's the that.
from of take Wood next now Cowen and question Derrick We Company. can our
kind personas leverage that more. to and of the Cloud step. and John, on Digital on doing to Two who out market more popular that has margin questions side maybe Shantanu, of down one start be the how lean restructuring catalyst there's from are then a lot just me. of And on on and the about seems business, side, kind I'd is what a doubling curious are market maybe for the you some out been of COVID driven communicators Ad into there guys like of Experience
can better talk look and operating revenue some two? the the like out more guys are of leverage maybe next as other. both we Sounds of things gross you margin the AEPs leverage to doing about or just year drive But over on and you
start. me Let
associated a that believe graphics background referred happening As the creative in knowledge printed to They to just most with to Web of it the able being are people are what we And interactive social material is this want doing appreciate or people communicators, tasks wanting those is actions tasks relates to and to fundamentally to that just from as presented we what that post around what with think past for do. fulfill certain to communicators material more what search we do and the picture, workers don't engine rich. it piece every fully they to to maybe also everything want on refer the perhaps for remove were respect I because with want the media. benefits the
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is of certainly rapidly of see it the that So, Lightroom Spark. the in driver But accelerating. big I virtually applications. that's place that category-leading We communicator in want people share is as see every with their where to piece think other see our the communication also of has. Video a what images. video we usage We across
So, hopefully, organic coming of of where demand that from. gives communicator examples you a the couple is
that actually we them there with can And that acceleration. relation coupled a with [ph] we great our bit. there Derek, demand expect opportunity. the acquired you've further the at experience, TAM, little we had in Workfront looking is And have we solution. But stumbled a capabilities, as for to before And accelerate that even digital know then, know back. we we Workfront, actually seen, And such acceleration.
because revenue we company a way the cloud by we're Digital operating Experience digital SaaS business. it. the And experience healthy So, out the there's Experience said, business way Digital make ad as we're that wanted of that operating a moving leverage the definitely it business should we realigned in the differently, segment sure bit to view we
there. aspirations for very strong We margins have
healthy companies rule If their margins, you think the SaaS growing about of XX.
So, we're that. definitely about excited
that in other we're but it resonating ability solutions to not Workfront, invest, is now, to our need Digital even hiring, then take as we in We way sales aligned The capacity constrained. R&D, we're with not they're the in we're can customers. opportunity, accelerate only within going more. the Experience just thing opportunity continue particularly all doing to because this to and of advantage definitely And also capture we've we course, the of said, with
and brief wrap Operator, take up. two more then questions let's we'll do a you. Thank
Auty our question take next Sterling Morgan. now of can JP We from
all the all Shantanu, still phases digital might homegrown Kubernetes-enabled, gross fully through how with integrated you into investment how Adobe to ranging way well, left Experience all platform? the the margins you forward? and to evolution characterize, would Are complete? where in products that advertising, are from a solutions in the marketing, of Marketo, as the Omniture, original impact entire you And Is moving the stack that there deliver? cloud-delivered taking area,
have start innovation by we've me tremendous off when Sterling, we made us, of the opportunity first of ahead let progress. saying kind
what Adobe able the of to platform be Omniture journey, it do it's we to So, was functionality you Adobe new but the momentous being all experience data. the integrated of because all a milestone, delivery and into this Adobe the of whether have, whether platform customer campaign functionality, able that the Experience delivered Sterling, to to not just refer as was to we functionality analytics, insight started get
much innovation list do products. decades all do And would on of done. degree have made later. are we've drive creative here people solutions And with what never we in ask that products we a what you these platform, the the being XX me, so, I ago. And the these able it's into ever – can some To of dwarfs how we years had that remember to progress common
think what do It we're think cloud. the given years I have to a to position, nobody So, this fantastic Experience about last over runs every has platform on that engineering enterprise about think has. and the it, as I the rewire to integrated platform else few I in efforts
done that. companies their whether a with regulatory private seen IBM, also Microsoft made run all on with and like that the for of I VMware think and the reasons, ability cloud, to with us where interest The on progress with other to IBM success what partner or hybrid in and cloud there's we've clearly people, around we've it's network, it's made these announcement you've we've had progress for on want run and on cloud Microsoft Azure, to certainly with aware. that we reasons it
for the at you're we is architectural So, it constantly architecting confident the way I'm thing. new look But architectures. really about
ML constantly You're work in more doing providing and more insights. and and AI
business process, at now, rethinking rethinking to of our that going success, computer in to early innovating stage which offerings, that actually do. the their if in operate what that the about delivering And ways believe digital insight Because think still Some not I way technology, and in and there's that you movement but breadth reporting doing. for with have has it we headroom can space. every funnel of moved it. the how their is depth to each we've the companies just one of of most we're is, having mature that driven we're these value how our an we the significant tremendous and architecture, pioneers such analysis around we're we've terms and the have think that's of But DDOM of a one we're added company in in been the keep we
now And overall opportunity. so, we think growth as of an it right
We saw, the as that in strategic business. we margin think decisions you around have how made, about particular
as so, be I that what should But continue expand business. about extending excited you that investor immense to fact opportunity we is margins think the this And lead. most in will investing our in see an we're and
way And it. that's we so, think I about think the
sales of John for think despite You look investing margin to capacity, at company. in again, I company the expansion in Workfront, investing despite the overall will despite accelerate and margins we you the entire we're alluded that saying this, showing growth,
drive know how which growth top margin. line impressive bottom we an do line So, to at is growth and this,
So, least at about think it. that's how I
from Keith with question final Morgan Weiss our take now We'll Stanley.
there we from should we question move guys end. how is from fairly equilibrium progression the we to at earlier, the for that categories? Keith. pie team that sitting XXXX into see a normalized those If continuous Stan within quick the reach This think Cloud can shift forward? from asked about a of following starting more two ARR XXXX, see chart our moving And Will beyond, and And up very Or there's we from in look are push Jennifer progression a to pronounced on questions individual? individual. up you the we then to as that the more Creative follow-up. just in Zlotsky and maybe put actually we Two of XXXX the shift
and growing we're thing is I total what main think the it customers. value foremost, with see addressable will market, to that market our have the should and the is, Well, this the relates pie expect And is what you to think as about you expanding. first expansion, you associated
and point think at a a the the reemphasize predictor, offering. at convert some again, in that thing that, then state, will the drive closer steady was XX/XX. which be into But may I it to is is into individual we that prior of business, entire lot I
it. that's so, And
would picture, I big second on exact And question and both growth focus two. of happy them the feel more well, well. the of at to growing really like Stan. those We so, And pie, as answer mix your they're the look I'm between
think and Cloud? overall new the about out Experience the and What behind revenue Obviously, the print segment. component. Advertising very your Thank a seeing part And segment? Publishing you. it's small how dedicated this pull rejiggering into the the digging reporting But segments from and create and you in slightly publishing are why segment of your advertising increasingly of business? Just we scenes should the
different the trying give were that's part I key we of think and to do how running What into it. insight businesses was we more a you color were and
and it Cloud, getting see were of of that company. segment in being take a of play And the print revenue. category. difficulty] lot you profitability what about high investors a as the talked is was, you to pure seeing. difficulty] clear genesis of see but we that a [technical much the do business transaction you as a there's category We bookings [technical what based part the is Experience Advertising that a between the which wasn't what Digital of revenue should alignment on reported the on think as growth a well, know, continues lot I It's out business,
the ecosystem. of you've has revenue driven As down as been thriving a proactively consulting a the percentage have as seen, we services
There the purely growth that opportunities partners we advertising continue for would who the we're a with we the deliver it. fact largest can think really take be like because are growth strategic large have some that's focused think the of revenue in And I I But not as us. that to opportunity it's alignment cloud solution. on signal based subscription a opportunities. a differentiated where about we how will
a as and on we with communicated really so, And that how transitioned I'm we pleased we're that making sure focused company to how do it. actually we customers.
And software we be component believe want believe businesses, that that that's a of that all and so, line drives a service with focus on drives consistent that margin, as believe we company. the we this as growth, of to we top that where our
today that technology an feel was passion significant the ahead That, and virtual we my software, last to, providing. share was we From competitive And foremost depth amazing that again, of and I for our ubiquity was format. XXXX given we have dedicated the tremendous provides believe base question, the employees is all joining first the frankly, market hope in of year. us a really that advantage. platforms, opportunity that that want you the our really customer this the that global the and and value for perspective, us, envy the industry. have, you I the really of customer delivering what brand, in real the the thank we're mission, We the
expect that to I And momentum of We beyond. best ahead our in years are XXXX certainly and believe the continue us.
you the me let continuing holiday story have really wish number momentum and all the look season. also new to year. to healthy, the of safe And we that As we a said, in share forward you a
hand So, back with Jonathan. thank And over that, us. it joining for I'll you to
today. on Shantanu. phone the the And to for again us on joining everyone Thanks, and thanks webcast
also This us again. that I the safe there. Shantanu speaking in look QX at virtual mentioned you earlier, we'll out We this As that to of Happy in the hope have next forward for holidays concludes call pleased I person do an joined you seeing But to sure event. And to to many event. March. soon. we're fall you Stay I'm opportunity everyone. will the be really very