Slide 1: Steve Day introduction
STEVE DAY Good afternoon and thank you for joining us. With me on the call today are Shantanu Narayen, Adobe’s Chair and CEO, David Wadhwani, President of Digital Media, Anil Chakravarthy, President of Digital Experience, and Dan Durn, Executive Vice President and CFO. Page 1 of 26
Slide 2: Call disclaimer and forward-looking statements
On this call, which is being recorded, we will discuss Adobe’s second quarter fiscal year 2025 financial results. You can find our press release, as well as PDFs of our prepared remarks and financial results, on Adobe’s Investor Relations website. The information discussed on this call, including ou
Slide 3: Shantanu Narayen: record Q2 revenue
SHANTANU NARAYEN Thanks, Steve. Good afternoon and thank you for joining us. Adobe delivered another strong quarter, achieving record revenue of $5.87 billion, representing 11 percent year-over-year growth. GAAP earnings per share for the quarter was $3.94, and non-GAAP earnings per share was $5.06,
Slide 4: Growth strategy and AI creative opportunity
At our Investor Meeting in March, we outlined our growth strategy for the company centered on delivering transformative innovation for diverse customer audiences: business professionals, consumers, creators, creative professionals and marketing professionals. The creative opportunity is expanding ac
Slide 5: Monthly active users and creative platform
smoother creation to consumption process through mobile apps, web browsers and desktop offerings. Adobe’s monthly active users (MAU) across these categories now exceed over 700 million users. In the Creative and Marketing Professionals Group, Creative Professionals need best of breed applications th
Slide 6: GenStudio, Firefly Services and marketing platform
commercially safe models and purpose-built agents tailored to address the inefficiencies of the content supply chain. Marketing practitioners, Chief Marketing Officers (CMO’s) and Chief Digital Officers (CDO’s), need solutions that enable them to acquire, engage and delight customers across a variet
Slide 7: David Wadhwani: Digital Media results
DAVID WADHWANI Thanks, Shantanu. Hello everyone. In Q2, Digital Media achieved revenue of $4.35 billion, which grew 12 percent year over year. We exited the quarter with $18.09 billion of Digital Media ARR, growing ending ARR 12.1 percent year over year. Page 7 of 26
Slide 8: Digital Media: Business Professionals & Consumers
DIGITAL MEDIA: BUSINESS PROFESSIONALS & CONSUMERS We continue to see strong performance across our Business Professionals and Consumers Group, where users are increasingly turning to Adobe for products that combine creativity and productivity. Virtually every business professional and consumer stand
Slide 9: Business Professionals and Consumers growth
capabilities within Acrobat. Subscription revenue for the Business Professionals and Consumers Group grew 15 percent year over year. We’re rapidly acquiring the next generation of business professionals and consumers across individuals, small and medium business and enterprises. With students, we’re
Slide 10: Digital Media: Creative & Marketing Professionals
DIGITAL MEDIA: CREATIVE & MARKETING PROFESSIONALS We’re also seeing the rising importance of creative content across Creative and Marketing Professionals. Demand for creative capabilities across mediums, including imaging, design, photography, video, illustration and 3D, is on the rise as individual
Slide 11: Firefly models and new subscription plans
with Runway, Ideogram, Fal.ai, Luma and Pika coming soon. With the release of the Firefly Boards public beta earlier this quarter, creators can now ideate and collaborate when generating content with Firefly and our third-party models. To monetize this incredible innovation, we have introduced a com
Slide 12: Positioned to lead AI in creativity
Adobe is uniquely positioned to lead the way in applying AI to amplify creativity across the full continuum of content creation. We’re excited about the momentum we’re seeing in both flagship apps and new offerings across our Business Professionals and Consumers and Creative and Marketing Profession
Slide 13: Anil Chakravarthy: Experience Cloud results
ANIL CHAKRAVARTHY Thanks, David. Hello everyone. Experience Cloud had a strong Q2, achieving revenue of $1.46 billion for the quarter. Subscription revenue in the quarter was $1.33 billion, representing 11 percent year-over-year growth and making us the largest provider in our category. Page 13 of 2
Slide 14: Digital Experience: Creative & Marketing Professionals
DIGITAL EXPERIENCE: CREATIVE & MARKETING PROFESSIONALS Content creation is the fuel driving personalized experiences at scale. Adobe is the only company unifying the entire workflow from creation and production, workflow and planning, asset management, delivery and activation through to reporting an
Slide 15: Adobe Experience Platform and AI agents
Adobe Experience Platform and native applications are central to delivering unified, personalized customer experiences. With the introduction of AEP AI Assistant, we’ve extended the platform’s value by enabling teams across the business to interact with data through natural language—streamlining ing
Slide 16: Analyst recognition and customer wins
• Industry analyst recognition including being named a Leader in the Forrester Wave for Collaborative Work Management for the third consecutive time, IDC Marketscape for Worldwide Connected TV Advertising Platforms and the Gartner Magic Quadrant for Content Marketing Platforms, with GenStudio soluti
Slide 17: Dan Durn: Q2 FY2025 performance
DAN DURN Thanks, Anil. Today, I will start by summarizing Adobe’s performance in Q2 fiscal 2025, highlighting growth drivers across our businesses, and I’ll finish with financial targets. Q2 FY2025 Performance In Q2, Adobe achieved revenue of $5.87 billion, which represents 11 percent year-over-year
Slide 18: Second quarter business and financial highlights
Second quarter business and financial highlights included: • Digital Media revenue of $4.35 billion; • Digital Media ending ARR of $18.09 billion, growing 12.1 percent year over year; • Digital Experience revenue of $1.46 billion; • Cash flows from operations of $2.19 billion which is a record for Q
Slide 19: Digital Media growth drivers
• Strong acquisition, usage and monetization of our AI offerings, including Acrobat AI Assistant, Acrobat Premium and Express; • Accelerating adoption of Express creative functionality through Acrobat driving approximately 11X year-over-year growth of monthly active users due to increasing customer
Slide 20: Digital Experience
Digital Experience Turning to our Digital Experience segment, in Q2 we achieved revenue of $1.46 billion, which represents 10 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.33 billion, growing 11 percent year over year as reported a
Slide 21: Customer group subscription revenue
Adobe’s success is being driven by innovation in service of both “Business Professionals and Consumers” and “Creative and Marketing Professionals”. For the Business Professionals and Consumers Group, subscription revenue was $1.60 billion, which represents 15 percent year-over-year growth as reporte
Slide 22: Income Statement and Balance Sheet
Income Statement and Balance Sheet Turning to the income statement and balance sheet, Adobe’s effective tax rate in Q2 was 19.5 percent on a GAAP basis and 18.5 percent on a non-GAAP basis. RPO exiting the quarter was $19.69 billion, growing 10 percent year over year, or 11 percent in constant curre
Slide 23: Targets
Targets Let me now turn to our financial targets, which assume current macroeconomic conditions. For Q3 FY25 we are targeting: • Total Adobe revenue of $5.875 to $5.925 billion; • Digital Media segment revenue of $4.37 to $4.40 billion; • Digital Experience segment revenue of $1.45 to $1.47 billion;
Slide 24: FY25 targets and summary
For FY25, we are now targeting: • Total Adobe revenue of $23.50 to $23.60 billion; • Digital Media segment revenue of $17.45 to $17.50 billion; • Digital Media ending ARR book of business growth of 11.0 percent year over year; • Digital Experience segment revenue of $5.80 to $5.90 billion; • Digital
Slide 25: Closing remarks and questions
SHANTANU NARAYEN Thanks, Dan. Our strong Q2 performance highlights our momentum and how we’re leveraging AI to drive exponential value in the creative economy. As a result of our strategy and execution, we're confident in our ability to deliver value to existing customers and attract new users. I’m
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