Slide 1: Adobe Financial Analyst Meeting
Adobe Financial Analyst Meeting December 16, 2021 Artwork by Davy Evans / UK
Slide 2: Welcome
Welcome Jonathan Vaas | VP, Investor Relations December 16, 2021 Artwork by Davy Evans / UK
Slide 3: Speakers and sections
Speaker Name Section Shantanu Narayen Welcome Ann Lewnes Vision & Strategy Anil Chakravarthy Digital Experience Opportunity David Wadhwani Digital Media Opportunity Dan Durn Financial Results and Growth Strategy Shantanu Narayen Adobe Opportunity Live Q&A © 2021 Adobe. All Rights Reserved. Adobe Con
Slide 4: Financial Disclaimer
Financial Disclaimer This presentation contains forward-looking statements that are based on our management’s current beliefs and assumptions, which involve certain factors, risks and uncertainties. Forward-looking statements in this presentation include those related to business momentum, market tr
Slide 5: Welcome
Welcome Shantanu Narayen | Chairman & CEO December 16, 2021 Artwork by Davy Evans / UK
Slide 6: 2021 Accomplishments
2021 Accomplishments Innovation Leadership Purpose © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 7: Outstanding FY 2021 financial results
Outstanding FY 2021 financial results FY21 Original Targets1 FY21 Actual Results Total Adobe revenue ~$15.15 billion2 $15.79 billion +$635 million Digital Media annualized recurring revenue ARR (net new) ~$1.75 billion $1.98 billion +$230 million Digital Media segment revenue ~19% Y/Y growth 25% Y/Y
Slide 8: Driving the next decade of growth
Driving the next decade of growth Creating & leading Expanding Delivering Innovating Scaling partner categories customer base technology platforms business models ecosystem Awaiting imagery © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 9: Vision & Strategy
Vision & Strategy Ann Lewnes | CMO & EVP, Corporate Strategy & Development December 16, 2021 Artwork by Davy Evans / UK
Slide 10: We live in a digital world
We live in a digital world Empowering individuals Transforming business Connecting communities • A digital world at your fingertips • E-Commerce explosion • Emergence of creator economy • Seamless access across all surfaces • Personalized experiences expected • New level of collaboration • Democrati
Slide 11: © 2021 Adobe. All Rights Reserved. Adobe Confidential.
© 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 12: Adobe's strategy
Adobe’s strategy Unleashing Accelerating Powering creativity document productivity digital businesses Adobe Creative Cloud Adobe Document Cloud Adobe Experience Cloud © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 13: Market landscape: content fuels the global economy
Market landscape: content fuels the global economy Digital content consumption exploding Every business is a digital business Content velocity drives digital engagement Social content & monetization underpins the creator economy Creativity is a 21st century educational imperative 3D, immersive & met
Slide 14: Creative Cloud strategy: unleashing creativity for all
Creative Cloud strategy: unleashing creativity for all Empower the world with Advance every creative Enable seamless Inspire and empower the Democratize 3D & content-first, task-based category across desktop, collaboration across community through sharing immersive content creation creativity web &
Slide 15: 2024 Creative Cloud Total Addressable Market
2024 Creative Cloud Total Addressable Market 2023 Creative Cloud TAM 2024 Creative Cloud TAM ~$41B ~$63B ~$25B ~$31B ~$7B Creative Professionals Communicators Consumers • Continued momentum in creative job growth • Explosive growth in creator economy • Addressing needs of photo and • Increasing valu
Slide 16: Market landscape: digital documents core to future of work
Market landscape: digital documents core to future of work PDF is the format for unstructured data AI & ML enabling document intelligence PDF related search terms exploding Productivity enabled through mobile & web Businesses are modernizing document workflows APIs enable custom workflow development
Slide 17: Document Cloud strategy
Document Cloud strategy Deliver task-based Proliferate e-signatures by Drive Acrobat innovation Unlock business Leverage diversified Adobe document verbs to satisfy integrating into Acrobat with Liquid Mode & Sensei- workflows through PDF and partner GTM motions explosive organic demand across all s
Slide 18: 2024 Document Cloud Total Addressable Market
2024 Document Cloud Total Addressable Market 2023 Document Cloud TAM 2024 Document Cloud TAM ~$21B ~$32B ~$10B ~$8B ~$14B Knowledge Workers Communicators Document Services & APIs • High frequency & industry-specific use cases • Expanding use of PDF for business, • Document workflows and process auto
Slide 19: Customer Experience Management trends
Customer Experience Management trends Every business is a Direct customer Data as a Power of cloud Customer-centric digital business relationships core asset scale and AI/ML convergence © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 20: Adobe Experience Cloud strategy
Adobe Experience Cloud strategy Real-time customer Integrated, AI-enabled Unified marketing Strategic partner for B2B Expansive experience platform applications & services workflow & B2C transformation ecosystem © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 21: 2024 Experience Cloud total addressable market
2024 Experience Cloud total addressable market 2023 Experience Cloud TAM 2024 Experience Cloud TAM ~$85B ~$110B ~$33B ~$49B ~$18B ~$10B Data Insights & Audiences Content & Commerce Customer Journeys Marketing Workflow • Single view of customer • Omni-channel content velocity • Real-time customer • M
Slide 22: Adobe's total addressable market
Adobe’s total addressable market ~$205B 2024 total addressable market Creating & Expanding Delivering Innovating Scaling leading categories customer base technology platforms business models partner ecosystem Source: Adobe, December 2021 © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 23: Driving the next decade of growth
Driving the next decade of growth Creating & leading Expanding Delivering Innovating Scaling partner categories customer base technology platforms business models ecosystem Awaiting imagery © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 24: Experience Cloud Strategy
Experience Cloud Strategy Anil Chakravarthy | President, Digital Experience December 16, 2021 Artwork by Elise Swopes / USA
Slide 25: Q4 FY 2021 Highlights
Q4 FY 2021 Highlights $1.01B $886M >50% 23% Y/Y growth 27% Y/Y growth Y/Y growth *Q4 subscription bookings represent net annual subscription value © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 26: Customer Experience Management trends
Customer Experience Management trends Every business is a Direct customer Data as a Power of cloud Customer-centric digital business relationships core asset scale and AI/ML convergence © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 27: Adobe Experience Platform: unlocking growth & innovation
– 153 Partner Extensions – 99 Adobe Experience Platform: unlocking growth & innovation Total: 236 AEP integrations 300% Scale FY21 Adobe Experience Platform number of >21.5T <250ms ~165B customers Y/Y growth Segment evaluations Response time Edge Network calls (per day) at 99.5% (per day) >$100M Eco
Slide 28: Adobe leadership recognition
Adobe leadership recognition Digital B2B Marketing Enterprise Digital Multichannel B2C Digital Retail Commerce B2C Experience Automation Digital Marketing Marketing Marketing Web Content Personalization Commerce Platform Commerce Platforms Platforms Commerce Software Suites Analytics Hubs Management
Slide 29: Adobe as Customer Zero: driving business transformation
Adobe as Customer Zero: driving business transformation Derive insights to drive Define customer Create single view of Drive acquisition through Deliver engaging, customer satisfaction segments the customer digital channels personalized campaigns and lifetime value Adobe Adobe Adobe Adobe Adobe Adob
Slide 30: Customer case study: Major League Baseball
Customer case study: Major League Baseball • Reimagining fan engagement experiences at home, on-the-go and in the ballpark • Delivering personalization in real-time to reach the next generation of fans • Unifying first-party data to power seamless customer journeys, fuel acquisition and improve rete
Slide 31: Customer case study: Henkel
Customer case study: Henkel • Transforming customer and consumer engagement through real-time, omni- channel experiences, powered by Adobe Experience Cloud • Unifying customer and consumer profiles across D2C, B2C and B2B to deliver personalized interactions at scale • Expanding e-commerce offering,
Slide 32: Adobe Experience Cloud: mission critical across industries
Adobe Experience Cloud: mission critical across industries Healthcare & life Manufacturing/ Media & Travel & Financial services Retail sciences CPG & energy entertainment hospitality Digital- and End-to-end Direct-to- Digital Personalized mobile-first digital patient consumer streaming and commerce
Slide 33: Experience Cloud business momentum
Experience Cloud business momentum Growing customer engagement Annual revenue FY 2018 FY 2021 $4.0B ~$1.3M ~$2.3M 66% $3.5B Average ARR of Average ARR of growth in accounts top 1000 customers top 1000 customers with >$1M in ARR (FY 2018-FY 2021) $3.0B ~$5M ~$10M >90% of top 100 customers $2.5B Avera
Slide 34: Customer Experience Management imperative
Customer Experience Management imperative © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 35: Key challenges to achieving personalization at scale
Key challenges to achieving personalization at scale Siloed customer Content volume Disjointed customer Legacy planning and data and velocity experiences execution processes Behavioral, transactional and Campaigns to serve diverse, Customer journeys remain Traditional creative and campaign commercia
Slide 36: Adobe Experience Cloud strategy
Adobe Experience Cloud strategy Real-time customer Integrated, AI-enabled Unified marketing Strategic partner for B2B Expansive experience platform applications & services workflow & B2C transformation ecosystem © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 37: Adobe Experience Cloud solution categories
Adobe Experience Cloud solution categories Data Insights & Audiences Content & Commerce Customer Journeys Marketing Workflow System of intelligence providing insight Content management and commerce Real-time, omni-channel customer Marketing system of record for and dashboards across omni-channel sol
Slide 38: Adobe Experience Cloud
Adobe Experience Cloud CLOUD Adobe Experience Cloud Marketing CATEGORIES Data Insights & Audiences Content & Commerce Customer Journeys Workflow Adobe Adobe Adobe Adobe Adobe Adobe Adobe Customer Adobe Adobe Adobe Adobe APPLICATIONS Real-Time Audience Experience Journey Marketo Analytics Journey Com
Slide 39: Next generation Adobe Experience Platform
Next generation Adobe Experience Platform Unified Experiences • Enables delivery of personalized, real-time, omni- Video/TV Desktop Mobile Social Web Email Kiosk IoT channel customer experiences at cloud scale Adobe Experience Platform • Architected to accelerate innovation of new Adobe Real-time Cu
Slide 40: Adobe Experience Cloud: Data Insights & Audiences
Adobe Experience Cloud: Data Insights & Audiences Adobe Analytics + Adobe Highlights Innovation roadmap Customer Journey Analytics • Internet scale behavioral dataset: ~23T data • Real-time executive level run-and-operate Experience insights & intelligence transactions per year dashboards and insigh
Slide 41: Adobe Experience Cloud: Content & Commerce
Adobe Experience Cloud: Content & Commerce Adobe Experience Manager Highlights Innovation roadmap Content management for multi- • Strong adoption of UI-based and headless capabilities • Content personalization and performance channel, personalized experiences • >150% Y/Y growth of Adobe Experience M
Slide 42: Adobe Experience Cloud: Customer Journeys
Adobe Experience Cloud: Customer Journeys Adobe Campaign & Highlights Innovation roadmap Adobe Journey Optimizer • Deep integrations with analytics, content & customer • Converging outbound (email, mobile push) together Personalized, omni-channel data management with inbound (web, mobile app) engage
Slide 43: Adobe Experience Cloud: Marketing Workflow
Adobe Experience Cloud: Marketing Workflow Adobe Workfront Highlights Innovation roadmap Marketing system of record • Deep integrations with Adobe Experience Manager • Embedded workflows across Adobe Clouds with allowing teams to connect, and Adobe Marketo Engage native integrations collaborate and
Slide 44: Adobe Experience Cloud GTM strategy
Adobe Experience Cloud GTM strategy New logo growth Customer value Trusted partner Transformational High-impact digital realization and to C-Suite accounts engagement solution expansion Verticals | Geographies | Partners © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 45: Expansive ecosystem of >4,000 partners
Expansive ecosystem of >4,000 partners ISVs / tech partners System integrators / agencies Source: Adobe, December 2021 © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 46: 2024 Experience Cloud total addressable market
2024 Experience Cloud total addressable market 2023 Experience Cloud TAM 2024 Experience Cloud TAM ~$85B ~$110B ~$33B ~$49B ~$18B ~$10B Data Insights & Audiences Content & Commerce Customer Journeys Marketing Workflow • Single view of customer • Omni-channel content velocity • Real-time customer • M
Slide 47: Experience Cloud growth drivers
Experience Cloud growth drivers Data Insights & Audiences Content & Commerce Customer Journeys Marketing Workflow Adobe Experience Platform Digital acceleration · Personalization at scale · B2B · B2C · B2B2C · Direct-to-consumer Content velocity · Commerce and merchant services · Real-time customer
Slide 48: Digital Media Opportunity
Digital Media Opportunity David Wadhwani | President, Digital Media December 16, 2021 Artwork by Momomi Sato / Japan
Slide 49: Q4 FY 2021 Digital Media highlights
Q4 FY 2021 Digital Media highlights Segment Revenue Creative Cloud Document Cloud Revenue Revenue $3.01B $2.48B $532M 21% Y/Y growth 19% Y/Y growth 29% Y/Y growth $571M $430M $141M New new Digital Media ARR Net new Creative ARR New new Document Cloud ARR © 2021 Adobe. All Rights Reserved. Adobe Conf
Slide 50: Digital Media strategy
Digital Media strategy Driving acquisition, engagement and retention © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 51: Creative Cloud
Creative Cloud © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 52: Market landscape: content fuels the global economy
Market landscape: content fuels the global economy Digital content consumption exploding Every business is a digital business Content velocity drives digital engagement Social content & monetization underpins the creator economy Creativity is a 21st century educational imperative 3D, immersive & met
Slide 53: Content is powering the creator economy
Content is powering the creator economy Big today Growing fast Adobe leadership >1B Social media accounts actively posting content >4.4M New US businesses created in 2020, >600M Non-CPro Free and paid MAU across mobile, and building audience1 highest on record4 web or desktop apps for CC and DC >90M
Slide 54: Everyone's a content creator
Everyone’s a content creator Students Creative professionals Marketers Small businesses Communicators Social content creators © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 55: Creative Cloud business momentum
Creative Cloud business momentum >100% >100% >50% Y/Y growth of Substance ARR Y/Y Growth of Stock Y/Y MAU growth for (3D & Immersive) downloads in enterprise Frame.io >70% >55% >300M Individual subscribers new CC mobile ARR growth in last 12 Total CC app downloads to CC franchise 1 months: Lightroom
Slide 56: Comprehensive offering across desktop, mobile & web
Comprehensive offering across desktop, mobile & web Apps Multi-Surface Apps Creative Cloud Photoshop Photoshop Illustrator Premiere Aero Acrobat Photoshop Illustrator Express Lightroom Rush (web) (web) Desktop Apps Premiere After Effects Photoshop Animate Audition Character Prelude Media Pro Lightro
Slide 57: Creative Cloud: audiences & products
Creative Cloud: audiences & products Desktop Apps Compositing in Photoshop Creative Cloud Creative professionals Remove background Masking in video Shared Services APIs: Imaging, design & video Communicators Instagram Story Mobile Apps Content: Adobe Stock, Adobe Stakeholder review Fonts, Templates
Slide 58: Creative Cloud strategy: unleashing creativity for all
Creative Cloud strategy: unleashing creativity for all Empower the world with Advance every creative Enable seamless Inspire and empower the Democratize 3D & content-first, task-based category across desktop, collaboration across community through sharing immersive content creation creativity web &
Slide 59: Creative Cloud strategy: unleashing creativity for all
Creative Cloud strategy: unleashing creativity for all Empower the world with Advance every creative Enable seamless Inspire and empower the Democratize 3D & content-first, task-based category across desktop, collaboration across community through sharing immersive content creation creativity web &
Slide 60: Empower the world with content-first, task-based creativity
Empower the world with content-first, task-based creativity Introducing Creative Cloud Express Fulfill creative need with Accelerate success with Leverage Adobe Sensei and Enable content creators easy task-based mobile & Adobe’s unparalleled the world’s best creative to engage their audience web sol
Slide 61: Scaling Creative Cloud Express
Empower the world with content-first, task-based creativity Scaling Creative Cloud Express Pricing Product-led growth Broad adoption • Freemium model • DDOM based acquisition • Leverage existing footprint across • Monthly subscription access to • Web & mobile user onboarding education, reseller and
Slide 62: Creative Cloud strategy: unleashing creativity for all
Creative Cloud strategy: unleashing creativity for all Empower the world with Advance every creative Enable seamless Inspire and empower the Democratize 3D & content-first, task-based category across desktop, collaboration across community through sharing immersive content creation creativity web &
Slide 63: Advance every creative category across desktop, web & mobile
Advance every creative category across desktop, web & mobile Continue to invest in Adobe magic across flagship applications • Accelerate imaging, video & design workflows through Adobe Sensei • Drive immersive experiences with Premiere, Substance 3D & Aero • Connect designers and stakeholders with X
Slide 64: Democratize 3D & immersive content creation
Democratize 3D & immersive content creation Build approachable 3D tools that can reshape markets • Introduce designers to new mediums like 3D, video • Create, capture & paint in 3D with industry’s most comprehensive solution: Substance 3D Stager, Painter, Sampler & Designer • Increase business agili
Slide 65: Enable seamless collaboration across all stakeholders
Enable seamless collaboration across all stakeholders Expand access to stakeholders and make creative professionals more productive • Adoption of Creative Cloud shared libraries for brand consistency • Role-based stakeholder “share for review” with Frame.io, Photoshop web and Illustrator web • Stock
Slide 66: Inspire & empower the community through sharing & monetization
Inspire & empower the community through sharing & monetization Drive acquisition, engagement and retention through a vibrant creative community • Growth of livestreaming with Adobe Live boosts viral app discovery and inspiration • Upskilling through in-app learning and community • Behance is the pro
Slide 67: Creative Cloud: audiences & products
Creative Cloud: audiences & products Desktop Apps Compositing in Photoshop Creative Cloud Creative professionals Remove background Masking in video Shared Services APIs: Imaging, design & video Communicators Instagram Story Mobile Apps Content: Adobe Stock, Adobe Stakeholder review Fonts, Templates
Slide 68: Creative Cloud: activating an expanding customer universe
Creative Cloud: activating an expanding customer universe Total Potential Users in 2024 Creative Pros ~4B • Seeking power and precision in creative tooling Consumers • Increasingly engaging across multiple media types and surfaces Hobbyists, Enthusiasts, K-12, • Highly collaborative, especially in n
Slide 69: 2024 Creative Cloud Total Addressable Market
2024 Creative Cloud Total Addressable Market 2023 Creative Cloud TAM 2024 Creative Cloud TAM ~$41B ~$63B ~$25B ~$31B ~$7B Creative Professionals Communicators Consumers • Continued momentum in creative job growth • Explosive growth in creator economy • Addressing needs of photo and • Increasing valu
Slide 70: Creative Cloud growth drivers
Creative Cloud growth drivers Growth in creative jobs · Rise of the Creator Economy · Increase in consumer photo & video Focus on 21st century skills in education · Increasing demand for 3D & immersive · Consistently high new user demand Data-driven operating model · Digital journey optimization · P
Slide 71: Document Cloud
Document Cloud © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 72: Market landscape: digital documents core to future of work
Market landscape: digital documents core to future of work PDF is the format for unstructured data AI & ML enabling document intelligence PDF related search terms exploding Productivity enabled through mobile & web Businesses are modernizing document workflows APIs enable custom workflow development
Slide 73: Document Cloud business momentum
Document Cloud business momentum >100% >85% >100M Y/Y growth of Web Y/Y growth of Adobe Sign New free & paid sign Monthly Active Users transactions in Acrobat ups in last 12 months >150M >400M Installs of Acrobat extension Liquid Mode files processed for Google Chrome in last 12 months >2.5B >320B T
Slide 74: Document Cloud strategy
Document Cloud strategy Deliver task-based Proliferate e-signatures by Drive Acrobat innovation Unlock business Leverage diversified Adobe document verbs to satisfy integrating into Acrobat with Liquid Mode & Sensei- workflows through PDF and partner GTM motions explosive organic demand across all s
Slide 75: Deliver task-based document verbs to satisfy explosive organic demand
Deliver task-based document verbs to satisfy explosive organic demand Capitalize on the global demand Adobe has created for PDF actions on web and mobile • 21 PDF frictionless verbs, growing share of voice for 80M+ monthly PDF searches1 • Innovative Acrobat browser functionality laid foundation for
Slide 76: Proliferate e-signatures by integrating into Acrobat across all surfaces
Proliferate e-signatures by integrating into Acrobat across all surfaces Bring e-signatures to where agreements live to accelerate business automation and productivity • Users want single integrated solution to create documents, sign them and collect signatures • Driving rapid adoption of Adobe Sign
Slide 77: Drive Acrobat innovation with Liquid Mode & Sensei-powered intelligence
Drive Acrobat innovation with Liquid Mode & Sensei-powered intelligence Unlock data and deliver transformative reading experiences with AI & ML • Mobile viewing: Sensei-powered Liquid Mode is becoming default experience • Document productivity: Industry- leading PDF search & form field detection • U
Slide 78: Unlock business workflows through PDF & Adobe Sign APIs
Unlock business workflows through PDF & Adobe Sign APIs Underpin growth in document workflows and automation with PDF • Imperative for businesses to improve efficiency, employee, and customer experience by automating manual, repetitive workflows • PDF, Adobe Sign APIs enable developers to easily acc
Slide 79: Leverage diversified Adobe & partner GTM motions to reach all segments
Leverage diversified Adobe & partner GTM motions to reach all segments Grow Acrobat via every route to market • Freemium Reader model continues to drive Acrobat growth • Adobe.com optimized for SMB and individuals • Adobe Scan, Acrobat web & mobile drive new user adoption • Microsoft and Google part
Slide 80: Accelerating document productivity through Acrobat
Accelerating document productivity through Acrobat PDF web services Apps Document services through APIs ISVs, SIs, Enterprise & Developers Desktop Convert to PDF JPG to PDF Word to PDF PDF to Word API Access to Embeddable Acrobat Viewer PPT to PDF PDF to PPT Acrobat Acrobat Acrobat Reader DC Pro DC
Slide 81: Document Cloud: audiences & products
Document Cloud: audiences & products Desktop Apps Acrobat Sign Acrobat Adobe Acrobat with Sign Acrobat Reader Acrobat Standard Acrobat Pro Knowledge Download Reader workers Mobile Apps Adobe PDF & e-sign APIs Sign a PDF Acrobat Reader Adobe Sign Adobe Scan Shared Services </ Create PDF from URL > Co
Slide 82: Document Cloud: activating a broader universe
Document Cloud: activating a broader universe Acrobat ecosystem Trillions • Essential value for remote and hybrid work of PDFs • Easy onboarding through mobile and web quick actions • Integrated collaboration and e-signature workflows ~3B • Broader opportunity through enterprise & global focus Reade
Slide 83: 2024 Document Cloud Total Addressable Market
2024 Document Cloud Total Addressable Market 2023 Document Cloud TAM 2024 Document Cloud TAM ~$21B ~$32B ~$10B ~$8B ~$14B Knowledge Workers Communicators Document Services & APIs • High frequency & industry-specific use cases • Expanding use of PDF for business, • Document workflows and process auto
Slide 84: Adobe Document Cloud growth drivers
Adobe Document Cloud growth drivers Importance of remote & hybrid work · Growing number of small businesses · Transition from paper to digital Increasing number of PDF related searches · Frictionless onboarding with web & mobile apps Modernization of business workflows · Velocity of e-signature usag
Slide 85: Digital Media summary
Digital Media summary • Content creation exploding with rise of creator economy • High-impact content essential for business • Collaboration an imperative for creatives • Web and mobile surfaces essential to content creation • E-signatures going mainstream with Acrobat integration • Developer adopti
Slide 86: Financial Summary & Growth Strategy
Financial Summary & Growth Strategy Dan Durn | EVP & CFO December 16, 2021 Artwork by Davy Evans / UK
Slide 87: Q4 and Fiscal 2021 Financial Summary
Q4 and Fiscal 2021 Financial Summary Artwork by Davy Evans / UK
Slide 88: Q4 FY 2021 financial results
Q4 FY 2021 financial results Total Adobe revenue $4.11 billion (20% Y/Y growth) Digital Media ARR $571 million of net new ARR Digital Media segment revenue $3.01 billion (21% Y/Y growth) Digital Experience segment revenue $1.01 billion (23% Y/Y growth) Digital Experience subscription revenue $886 mi
Slide 89: Q4 FY 2021 financial highlights & commentary
Q4 FY 2021 financial highlights & commentary Adobe Creative Cloud Adobe Document Cloud Adobe Experience Cloud • $2.48B revenue (19% Y/Y growth) • $532M revenue (29% Y/Y growth) • $1.01B revenue (23% Y/Y growth) • Added $430M of net new ARR • Record $141M of net new ARR • $886M subscription revenue •
Slide 90: Q4 FY 2021 results
Q4 FY 2021 results • From a quarter-over-quarter currency perspective, EMEA FX decreased revenue by $19 million. Net of 27% impacts from hedging, currency decrease to Americas 57% revenue was $7 million. • From a year-over-year currency perspective, FX increased revenue by $37 million. Net of impact
Slide 91: Outstanding FY 2021 financial results
Outstanding FY 2021 financial results FY21 Original Targets1 FY21 Actual Results Total Adobe revenue ~$15.15 billion2 $15.79 billion +$635 million Digital Media annualized recurring revenue ARR (net new) ~$1.75 billion $1.98 billion +$230 million Digital Media segment revenue ~19% Y/Y growth 25% Y/Y
Slide 92: Adobe is a unique investment opportunity
Adobe is a unique investment opportunity Massive markets Outstanding financial Products and platforms that Driving next decade performance create and lead industries of growth Add graphics of portfolio of products/customer logos © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 93: The digitization of everything
Adobe’s massive opportunity The digitization of everything Strong innovation People-first Scaled ecosystem & Category-defining Expanding engine culture network effects products & platforms customer base Adobe’s Foundation © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 94: Adobe is a unique investment opportunity
Adobe is a unique investment opportunity Massive market Outstanding financial Products and platforms that Driving next decade opportunities performance create and lead industries of growth Add graphics of portfolio of products/customer logos © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 95: Delivering strong revenue growth
Delivering strong revenue growth • Proven track record of delivering sustainable growth at scale GR 20,000 e + 24% CA venu • Total revenue grew ~75% since ri ption re 18,000 Subsc $15.79B 16,000 FY 2018 $12.87B 14,0 00 • +20% CAGR for total revenue for $11.17B 12,000 FY 2018 – FY 2021 Revenue $9.03B
Slide 96: Diverse sources of revenue
Diverse sources of revenue FY 2021 Business Segments Routes to Market Geographic Footprint CC DC DX P&A Digital Channel Enterprise Americas International Source: Adobe, December 2021 Digital includes Adobe.com and app stores © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 97: Operating model drives profitable growth
Operating model drives profitable growth $16B $15.79B • Disciplined execution and investment rigor enables balance of $12.87B long-term investment while driving $12B $11.17B profitability Operating Margin % $9.03B • FY 2018 through FY 2021 include integrations of strategic Revenue $8B 46.0% 42.9% ac
Slide 98: Productivity momentum
Productivity momentum Revenue per employee: 13% CAGR • Topline growth combined with expanding productivity, driven $16B $15.79B by investing in employees and Revenue per Employee ($Millions) empowering them to do their $12.87B best work $12B $11.17B • Strong returns on headcount Revenue $9.03B $8B i
Slide 99: Growing book of business
Growing book of business Remaining performance obligations • RPO reflects contractually committed future revenues, $15B $13.99B driving predictable growth $13B • RPO growth accelerated to 23% $11.34B $11B Y/Y exiting FY 2021 on the $9.82B strength of enterprise bookings $9B $8.10B Revenue • Individu
Slide 100: Profitable growth generates record operating cash flows
Profitable growth generates record operating cash flows • First $2+ billion operating cash flows (OCF) quarter in $8B Q4 FY 2021 GR $7.23B CA $7B +22% • Generated record OCF of $7.23 billion in FY 2021 $6B $5.73B $5B Operating Cash Flows $4.42B $4.03B $4B $3B $2B $1B FY2018 FY2019 FY2020 FY2021 Sour
Slide 101: Strong capital structure
Strong capital structure FY 2021 ending liquidity position Disciplined financial management Strong liquidity position A2 • • Robust cash flows $5.8B in cash and short-term investments • $1.0B in undrawn credit facility Investment-grade rating • $4.1B in debt with balanced maturity profile1 A+ • • We
Slide 102: Disciplined capital allocation
Disciplined capital allocation Capital returns Organic innovation Strategic acquisitions to shareholders Frame.io Workfront Adobe Experience Platform © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 103: Returning cash to shareholders
Returning cash to shareholders Stock repurchase program • ~$12 billion used for share repurchase since FY 2018 $5B 510 $15B repurchase authority extends Cash Used For Share Repurchase ($Billions) • Average Shares Outstanding (Millions) through the end of fiscal 2024 $4B • $13.1 billion remaining $3B
Slide 104: Adobe is a unique investment opportunity
Adobe is a unique investment opportunity Massive market Outstanding financial Products and platforms that Driving next decade opportunities performance create and lead industries of growth Add graphics of portfolio of products/customer logos © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 105: Creative Cloud business momentum: ARR & Revenue
Creative Cloud business momentum ARR & Revenue $12B 12,000 • Sustained ARR and revenue growth, driven by: $10.30B CAG R • Innovative, comprehensive and 20% $10B AR R+ 10,000 industry-defining portfolio of $8.72B $9.55B products $8B $7.31B 8,000 • Marketing campaigns to generate $7.74B awareness and
Slide 106: Creative Cloud business momentum: single app vs. all apps
Creative Cloud business momentum ARR: single app vs. all apps FY 2018 FY 2021 • Most comprehensive offering across every design category and surface Single Apps • Single apps and mobile apps are a proven onramp for new customer Single Apps acquisition and monetization • Growth driven across all offe
Slide 107: Creative Cloud business momentum: ARR by offering
Creative Cloud business momentum ARR by offering FY 2018 FY 2021 • Tailored offerings for each customer segment, including individuals, small ETLA businesses, education and ETLA Individual enterprises Individual • Enterprises have option to purchase either Team or ETLA offering • ARR growth strong a
Slide 108: Document Cloud business momentum: ARR & Revenue
Document Cloud business momentum ARR & Revenue $2.5B 3,000 • Sustained revenue and ARR growth GR $1.97B 2,500 driven by: CA +34% $2.0B ARR • New user acquisition $1.93B $1.50B 2,000 • Strong growth of Acrobat on $1.5B Adobe.com across geos, web Revenue $1.22B $1.46B and mobile 1,500 ARR $0.98B $1.09
Slide 109: Document Cloud business momentum: revenue mix
Document Cloud business momentum Revenue mix FY 2018 FY 2021 • Subscription revenue has more than doubled in three years, Perpetual & driving segment growth and mix Services shift toward recurring revenue Perpetual & ~$0.2B • Subscription revenue growth Services fueled by ETLA adoption and individua
Slide 110: Digital Media business momentum
Digital Media business momentum ARR $12B ~$10.3B $10B $8B $6B ARR $4B $2B ~$1.9B $B Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Document Cloud Creative Cloud Source: Adobe, December 2021 © 2021 Adobe. All Rights Reserved. Adobe Conf
Slide 111: Experience Cloud business momentum
Experience Cloud business momentum Growing customer engagement Annual revenue FY 2018 FY 2021 $4.0B ~$1.3M ~$2.3M 66% $3.5B Average ARR of Average ARR of growth in accounts top 1000 customers top 1000 customers with >$1M in ARR (FY 2018-FY 2021) $3.0B ~$5M ~$10M >90% of top 100 customers $2.5B Avera
Slide 112: Digital Experience business momentum
Digital Experience business momentum Subscription revenue & revenue • Focus on driving subscription revenue growth $4B $3.87B AGR • Growth across subscription %C ue +28 $3.38B offerings: Data Insights & Reven sc ripti on $3.13B Audiences, Content & Commerce, Sub Customer Journey Management Subscript
Slide 113: Digital Experience business momentum: revenue mix
Digital Experience business momentum Revenue mix FY 2018 FY 2021 • Adobe Experience Cloud revenue has grown ~87% in the last three years Perpetual & OEM • Subscription revenue CAGR of Services & Other approximately ~28% since FY 2018 Perpetual & OEM ~$0.5B • Continuing strategy of leveraging Service
Slide 114: Experience Cloud: subscription revenue by category
Experience Cloud business momentum Subscription revenue by category FY 2018 FY 2021 • Data Insights & Audiences, Content & Commerce, Customer Journey Management, and Marketing Marketing Workflow are large, growing Customer Customer Workflow Data Insights categories, fundamental to CXM Journey Data I
Slide 115: Adobe is a unique investment opportunity
Adobe is a unique investment opportunity Massive market Outstanding financial Products and platforms that Driving next decade opportunities performance create and lead industries of growth Add graphics of portfolio of products/customer logos © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 116: Driving the next decade of growth
Driving the next decade of growth Future investments New categories Usage expansion and upsell Innovative portfolio of market-leading New customer products and services acquisition Geographic Massive expansion addressable market Broad Strong customer engagement ecosystem and retention © 2021 Adobe.
Slide 117: FY 2022 considerations
FY 2022 considerations Foreign currency impact Operating expenses Fiscal calendar Tax • Strengthening US Dollar results in • Travel and facilities spending • FY 2022 is a 52-week fiscal year, as • Increased effective tax rates headwind to revenue growth rates expected to ramp throughout year compare
Slide 118: FY 2022 annual targets
FY 2022 annual targets December 16, 2021 Total Adobe revenue1 ~$17.90 billion Digital Media ARR2 ~$1.90 billion of net new ARR Digital Media segment revenue ~14 % ~17 % (Adjusted3) Digital Experience segment revenue ~14 % ~17 % (Adjusted3) Digital Experience subscription revenue ~16 % ~19 % (Adjuste
Slide 119: Q1 FY 2022 targets
Q1 FY 2022 targets December 16, 2021 Total Adobe revenue1 ~$4.23 billion Digital Media ARR2 ~$400 million of net new ARR Digital Media segment revenue ~8 % ~17 % (Adjusted3) Digital Experience segment revenue ~11 % ~18 % (Adjusted3) Digital Experience subscription revenue ~13 % ~20 % (Adjusted3) Tax
Slide 120: Delivering for our shareholders
Delivering for our shareholders Proven track record FY 2018 – FY 2021 +75% growth +92% growth +104% growth Revenue Subscription revenue Operating income ~$21B ~$12B ~270% Generated Returned to Stock Price Return Operating Cash Flows1 shareholders through buybacks1 Source: Adobe, December 2021 1Cumul
Slide 121: Adobe Opportunity
Adobe Opportunity Shantanu Narayen | Chairman & CEO December 16, 2021 Artwork by Davy Evans / UK
Slide 122: Digital transforming work, learning & entertainment
Digital transforming work, learning & entertainment Explosive growth of creator economy Democratization of creativity Work & education now hybrid Cloud & real-time collaboration Document workflow automation Digital business mandate Personalized experiences expected E-commerce explosion AI & machine
Slide 123: © 2021 Adobe. All Rights Reserved. Adobe Confidential.
© 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 124: Adobe's purpose
Adobe’s purpose Adobe for All Adobe for All Technology to Transform Creativity for All © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 125: Adobe's strategy
Adobe’s strategy Unleashing Accelerating Powering creativity document productivity digital businesses Adobe Creative Cloud Adobe Document Cloud Adobe Experience Cloud © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 126: Adobe's total addressable market
Adobe’s total addressable market ~$205B 2024 Total addressable market Creating & Expanding Delivering Innovating Scaling leading categories customer base technology platforms business models partner ecosystem Source: Adobe, December 2021 © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 127: Driving the next decade of growth
Driving the next decade of growth Creating & leading Expanding Delivering Innovating Scaling partner categories customer base technology platforms business models ecosystem Awaiting imagery © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 128: Driving the next decade of growth
Driving the next decade of growth Creating & leading Expanding Delivering Innovating Scaling partner categories customer base technology platforms business models ecosystem Awaiting imagery Engaged global employee base © 2021 Adobe. All Rights Reserved. Adobe Confidential.
Slide 129: Thank you
Thank you Artwork by Davy Evans / UK
Slide 130: Q&A
Q&A Artwork by Davy Evans / UK
Slide 131: Adobe Financial Analyst Meeting
Adobe Financial Analyst Meeting December 16, 2021 Artwork by Davy Evans / UK
Slide 132: Non-GAAP reconciliation
Non-GAAP reconciliation Reconciliation of GAAP to non-GAAP operating margin FY 2018 GAAP Operating Margin 31.5 % Stock-based and deferred compensation 6.8 % Amortization of intangibles 1.8 % Non-GAAP Operating Margin 40.1 % © 2021 Adobe. All Rights Reserved. Adobe Confidential.