Slide 1: Adobe Q2 FY2021 Earnings Call Introduction
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Adobe Q2 FY2021 Earnings Call June 17, 2021 Introduction Jonathan Vaas | VP, Investor Relations JONATHAN VAAS Good afternoon and thank you for joining us. With me on the call today are Shantanu Narayen, Adobe’s President and CEO, and John Murphy, Ex
Slide 2: Financial Disclaimer
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Financial Disclaimer Some of the information discussed in this presentation, including our financial targets and product plans, is based on information as of today, June 17, 2021, and contains forward-looking statements that involve risk, uncertaint
Slide 3: Q2 FY2021 Results
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Q2 FY2021 Results Shantanu Narayen | President & CEO SHANTANU NARAYEN Thanks, Jonathan. Adobe had another outstanding quarter as the shift to a digital-first world continues to accelerate. From students to creative professionals to small businesses
Slide 4: Digital Media and Creative Cloud results
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 earnings per share for the quarter was $2.32 and non-GAAP earnings per share was $3.03. Digital Media In our Digital Media business, we drove strong revenue growth in Q2 in both Creative Cloud and Document Cloud, achieving $2.79 billion in revenue,
Slide 5: Q2 highlights: Creative Cloud product innovations
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Q2 highlights include: • New product innovations, including updates to Lightroom, Photoshop and Illustrator that deliver enhanced creation and collaboration capabilities and greater speed and performance; next week, we will unveil new innovations fo
Slide 6: Adobe Document Cloud
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Adobe Document Cloud • Net new Document Cloud ARR of $113 million and revenue of $469 million • New product innovations, including new features in Liquid Mode, Scan and Sign • Strength in Acrobat across all routes to market and offerings • Accelerat
Slide 7: Document Cloud demand and key customer wins
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 • Accelerated demand for Sign, with new Sign customers doubling year over year and an increasing share of Acrobat users leveraging Sign capabilities; • Explosive growth in Acrobat Web services, driven by significant improvements in SEO for a new set
Slide 8: Adobe Experience Cloud
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Adobe Experience Cloud • Digital Experience revenue was $938 million in Q2 with subscription revenue of $817 million • Adobe Summit in April drove 20 million views • Strength in core offerings, including explosive bookings growth for Adobe Experienc
Slide 9: Adobe Summit product announcements
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 unprecedented 20 million views of Summit content from individuals around the globe, underscoring the significant interest and demand for customer experience management. Highlights of product announcements include: • Adobe Journey Optimizer, which he
Slide 10: Summary
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Software Suites, achieving the top spot each of the five times the report has been published, and leadership in the Gartner Multichannel Marketing Hubs Magic Quadrant for the fourth year in a row; and • Key customer wins with brands like Nike, NatWe
Slide 11: Diversity, equity and inclusion
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 have made in advancing our efforts around diversity, equity and inclusion. We have made strides in our strategy to accelerate the representation, growth and advancement of the Black community. But as Juneteenth approaches later this week, we know we
Slide 12: Q2 FY2021 Results (CFO)
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Q2 FY2021 Results John Murphy | EVP & CFO JOHN MURPHY Thanks, Shantanu. Q2 was an excellent quarter for Adobe, with strong revenue growth, enterprise bookings in Digital Experience and net new ARR in Digital Media, showing how our solutions are reso
Slide 13: Business and financial highlights; Creative Cloud results
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Business and financial highlights included: • GAAP diluted earnings per share of $2.32 and non-GAAP diluted earnings per share of $3.03; • Digital Media revenue of $2.79 billion; • Net new Digital Media ARR of $518 million; • Digital Experience reve
Slide 14: Creative growth drivers; Document Cloud results
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Second quarter Creative growth drivers included: • Strong retention and renewal across all Creative products and customer segments; • New user acquisition, driven by global marketing campaigns utilizing our DDOM insights; • Accelerated recovery in t
Slide 15: Experience Cloud results
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 • Accelerated adoption of our Acrobat Web offering, driving top-of-funnel awareness and conversion to paid subscriptions; • Continued strength with Adobe Sign, which grew ARR greater than 40 percent year over year exiting the quarter; and • Driving
Slide 16: Experience Platform; revenue by geography
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 • Strong bookings for Adobe Experience Platform (“AEP”) and native applications built on AEP—including Real-Time CDP and Customer Journey Analytics—which continue to build momentum; • Recent innovations and partnerships driving awareness and adoptio
Slide 17: Currency impact, tax rate, DSO, RPO and cash
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 From a quarter-over-quarter currency perspective, FX increased revenue by $10 million, both before and after applying the net impacts from hedging. From a year-over-year currency perspective, FX increased revenue by $94 million. Net of impacts from
Slide 18: Q3 FY2021 Financial Targets
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Q3 FY2021 Financial Targets | June 17, 2021 Total Adobe revenue ~$3.88 billion Digital Media segment revenue ~22% Y/Y growth Digital Media ARR ~$440 million of net new ARR Digital Experience segment revenue ~21% Y/Y growth Digital Experience subscri
Slide 19: Summary and Q&A
Adobe Q2 FY2021 Earnings Call Script June 17, 2021 Summary With the momentum we are seeing across creativity, digital documents and customer experience management, we are on track for another record year with a strong first half already in the books. Few companies of our scale can boast 20 percent p