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Adobe Inc. — Adobe Summit 2024 Investor meeting (company IR deck)
Adobe Inc. (ADBE) · 61 slides · Filed Oct 31, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All ADBE deck slides
Slide 1 — Adobe Investor Meeting
Adobe Investor Meeting March 26, 2024
Slide 2 — Welcome
Welcome Jonathan Vaas VP, Investor Relations
Slide 3 — Safe harbor statement and disclaimers
© 2024 Adobe. All rights reserved. Adobe Confidential. Safe harbor statement and disclaimers In addition to historical information, this presentation and accompanying oral commentary (the “Materials”) contains “forward-looking statements” within the meaning of applicable securities law, including statements related to our product development plans and new or enhanced offerings; our business, innovation and artificial intelligence (“AI”) momentum; our market and AI opportunity and future growth; financial and monetization strategy; market and AI trends; strategic investments; current macroeconomic conditions; fluctuations in foreign currency exchange rates; revenue; operating margin; operating efficiencies; annualized recurring revenue; tax rate on a GAAP and non-GAAP basis; earnings per share on a GAAP and non-GAAP basis; our stock repurchases; share count; industry positioning; and customer acquisition and retention. In addition, when used in the Materials, the words “will,” “expects,” “could,” “would,” “may,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “targets,” “estimates,” “looks for,” “looks to,” “continues” and similar expressions, as well as statements regarding our focus for the future, are generally intended to identify forward- looking statements. Each of the forward-looking statements we make in the Materials involves risks, uncertainties and assumptions based on information available to us as of the date of this presentation. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially and adversely from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; issues relating to development and use of AI; failure to realize the anticipated benefits of investments or acquisitions; failure to compete effectively; damage to our reputation or brands; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic conditions; failure to recruit and retain key personnel; complex sales cycles; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; litigation, regulatory inquiries and intellectual property infringement claims; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates; impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other risk factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe’s most recently filed Quarterly Reports on Form 10-Q. The risks described in the Materials and in Adobe’s filings with the U.S. Securities and Exchange Commission should be carefully reviewed. Adobe assumes no obligation to, and does not currently intend to, update the forward-looking statements. The Materials contain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP financial measures, and information regarding the use of non-GAAP financial measures, are available in the Appendix to these slides and on www.adobe.com/ADBE. The Materials also contain statistical data, estimates and forecasts that are based on independent, third-party industry publications or other publicly available information, as well as other information based on Adobe’s internal sources. This information may be based on many assumptions and limitations, and you are cautioned not to give undue weight to such information. Adobe has not independently verified the accuracy or completeness of the data contained in the industry publications and other publicly available information, and usage of such information does not mean or imply Adobe has adopted such information. The information in the Materials on new or future products, capabilities, offerings or functionality (the “Availability”) is intended to outline our general product direction and should not be relied upon in making a purchasing decision. The Availability is for informational purposes only and shall not be incorporated into any contract. The Availability is not a commitment, promise, or legal obligation to deliver any future products, capabilities, offerings or functionalities. The development, release, and timing of any of the Availability described in the Materials remain at our sole discretion and may differ from what is presented in the Materials. Additional fees may be charged for any products, capabilities, offerings and/or functionality. Numbers in the Materials may be rounded for presentation purposes.
Slide 4 — Agenda
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. Shantanu Narayen Strategy update Dan Durn Financial update Live Q&A Agenda
Slide 5 — Strategy update
Strategy update Shantanu Narayen Chair & CEO
Slide 6 — 11,000+
© 2024 Adobe. All rights reserved. Adobe Confidential. 11,000+ In-person 59% 5,000+ employees 2,600+ 64% $1B+ in revenue Attendees Customers Partners Adobe Unveils the Future of Customer Experience Management (CXM) in the Age of Generative AI Adobe Accelerates Data-Driven Personalization at Scale with Adobe Experience Platform Innovations Adobe Announces Generative AI Solutions to Jumpstart Content Supply Chain for Enterprises Adobe Leverages AI to Advance Personalized Customer Journeys Through Real-Time Experimentation Adobe Introduces Firefly Services and Custom Models to Accelerate Enterprise Content Creation and Production Announcements Source: Adobe, March 2024
Slide 7 — $5.18B
© 2024 Adobe. All rights reserved. Adobe Confidential. Q1 FY2024 results Powering digital businesses Unleashing creativity Accelerating document productivity Reconciliations between GAAP and non-GAAP results are included in the Appendix. $5.18B in revenue 11% Y/Y growth 12% Y/Y growth in constant currency $1.36 GAAP EPS $4.48 Non-GAAP EPS
Slide 8 — Adobe FY2024 financial targets
© 2024 Adobe. All rights reserved. Adobe Confidential. Total Revenue $21.30 billion to $21.50 billion Digital Media ARR ~$1.90 billion of net new ARR Digital Media segment revenue $15.75 billion to $15.85 billion Digital Experience segment revenue $5.275 billion to $5.375 billion Digital Experience subscription revenue $4.75 billion to $4.80 billion Tax rate GAAP: ~20.5% Non-GAAP: ~18.5% Earnings per share1 GAAP: $11.26 to $11.66 Non-GAAP: $17.60 to $18.00 1 Targets assume diluted share count of ~454 million for fiscal year 2024 The information discussed on this slide contains forward looking statements that involve risk and uncertainty. Actual results may differ materially. For a discussion of these risks and uncertainties, you should review Adobe’s SEC filings. Reconciliations between GAAP and non-GAAP financial targets are included in the Appendix. Adobe FY2024 financial targets March 26, 2024
Slide 9 — Adobe’s innovation shaping every era
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. AI era Social era Mobile era Internet era Adobe’s innovation shaping every era Web Mobile eCommerce Cloud 3D&I AI Social Video
Slide 10 — Adobe’s ecosystem approach to AI innovation
© 2024 Adobe. All rights reserved. Adobe Confidential. Deeply integrate into our industry-leading apps and workflows Adobe’s ecosystem approach to AI innovation Responsibly harness & use data Build category-leading foundation models & partner strategically Data Models Apps & interfaces Adobe GenStudio in Early Access Adobe Photoshop Adobe GenStudio Adobe Premiere Pro Adobe Firefly Adobe Express Adobe Acrobat Pro Liquid Mode in Acrobat Adobe Firefly Generative Experience Models
Slide 11 — AI innovation we’ve delivered in the past year
© 2024 Adobe. All rights reserved. Adobe Confidential. AI innovation we’ve delivered in the past year Adobe Firefly Creative Cloud (Photoshop, Illustrator & Premiere) Adobe Express Adobe Firefly Services AI Assistant in Acrobat & Reader AEM Sites with GenAI Adobe GenStudio Adobe Experience Platform AI Assistant AI Assistant in Acrobat & Reader, Adobe GenStudio and Adobe Experience Platform AI Assistant in Early Access. Firefly Services in Limited Release
Slide 12 — Monetizing generative AI innovation
© 2024 Adobe. All rights reserved. Adobe Confidential. Monetizing generative AI innovation New user growth New offerings and services Firefly (web app) Adobe Express GenStudio Firefly Services Creative Cloud Generative Credits Increased product value and engagement Experience Cloud AI Services AI Assistant for Acrobat … Acrobat, Reader & Scan AI Assistant for Reader Creative Cloud AI Assistant for Acrobat and Reader and Adobe GenStudio in Early Access. Firefly Services in Limited Release
Slide 13 — Asset
© 2024 Adobe. All rights reserved. Adobe Confidential. Asset Management AI enabling cloud convergence & supercharging personalized digital experiences Workflow & Planning Creation & Production Reporting & Insights Delivery & Activation
Slide 14 — ~$293B
© 2024 Adobe. All rights reserved. Adobe Confidential. FOR BUSINESS & LEGAL REVIEW Changing the world through personalized digital experiences ~$293B 2027 Total Addressable Market ~$205B 2024 Total Addressable Market Accelerating growth in the AI era Calculations performed by Adobe based on third-party research reports
Slide 15 — Financial update
Financial update Dan Durn Chief Financial Officer & EVP, Finance, Technology Services & Operations
Slide 16 — Diverse business models and sources of revenue, across geographies
© 2024 Adobe. All rights reserved. Adobe Confidential. Diverse business models and sources of revenue, across geographies 1 Adobe’s reportable segments are Digital Media (which includes Creative Cloud and Document Cloud), Digital Experience, and Publishing & Advertising Source: Adobe, December 2023 Subscription • SaaS • Services • Consumption • Marketplace • Freemium • Community FY2023 Business segments1 Creative Cloud Document Cloud Digital Experience Publishing & Advertising Geographic footprint Americas EMEA Asia Routes to market Digital Channel Enterprise Students • Consumers • Communicators • Creative Professionals • Developers • SMBs • Enterprises
Slide 17 — Best-in-class subscription revenue model
© 2024 Adobe. All rights reserved. Adobe Confidential. Best-in-class subscription revenue model $4.1B $4.1B $4.8B $5.9B $7.3B $9.0B $11.2B $12.9B $15.8B $17.6B $19.4B $21.4B1 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024E Subscription Non-subscription During FY2020, we reclassified revenue from our Advertising Cloud offerings from subscription to non-subscription. Financial information beginning in FY2018 has been updated to reflect this reclassification. 1 FY2024 estimates based on Adobe’s total revenue targets at midpoint, issued December 13, 2023 and affirmed on March 26, 2024. Source: Adobe, March 2024
Slide 18 — World-class margins and profits
© 2024 Adobe. All rights reserved. Adobe Confidential. World-class margins and profits 0% 50% FY2013 FY2015 FY2017 FY2019 FY2021 FY2023 GAAP operating margin Non-GAAP operating margin GAAP earnings per share Non-GAAP earnings per share 0% 50% FY2013 FY2015 FY2017 FY2019 FY2021 FY2023 Reconciliations between GAAP and non-GAAP results are included in the Appendix. Source: Adobe, December 2023 $0 $20 FY2013 FY2015 FY2017 FY2019 FY2021 FY2023 $0 $20 FY2013 FY2015 FY2017 FY2019 FY2021 FY2023
Slide 19 — Growing recurring book of business
© 2024 Adobe. All rights reserved. Adobe Confidential. Growing recurring book of business Remaining performance obligations Source: Adobe, December 2023 $11.3B $14.0B $15.2B $17.2B FY2020 FY2021 FY2022 FY2023 Current Non-Current Total
Slide 20 — Digital Media
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. Digital Media opportunity
Slide 21 — Digital Media business momentum
© 2024 Adobe. All rights reserved. Adobe Confidential. Digital Media business momentum Digital Media ending ARR and ending subscriptions $10.7B $11.2B $11.7B $12.2B $12.6B $12.9B $13.4B $14.0B $13.7B $14.1B $14.6B $15.2B $15.8B 20M 50M $0B $16B Q1 FY2021 Q2 FY2021 Q3 FY2021 Q4 FY2021 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Total ending paid subscriptions2 Ending ARR1 Document Cloud Creative Cloud Total ending paid subscriptions 1 FY2021 ending Annualized Recurring Revenue (ARR) at December 2020 currency rates, FY2022 ending ARR at December 2021 currency rates, FY2023 ending ARR at December 2022 currency rates & FY2024 ending ARR at December 2023 currency rates. As a result of the 2022 Russia-Ukraine war, subsequent to Q1 FY2022, ARR balances were reduced by amounts representing the entirety of Adobe's ARR in Russia, Belarus and Ukraine. Q1 FY2022 ending ARR is presented above at amounts prior to this reduction. 2 Total ending paid subscriptions, excluding EDU & Enterprise Source: Adobe, March 2024
Slide 22 — Document Cloud
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. Document Cloud opportunity
Slide 23 — What to expect in Document Cloud: insight, creation and collaboration
© 2024 Adobe. All rights reserved. Adobe Confidential. Document collaboration: AI-supported review process Document creation: AI-powered authoring, editing and formatting Document insight: AI-assisted conversational experiences What to expect in Document Cloud: insight, creation and collaboration
Slide 24 — Document Cloud
© 2024 Adobe. All rights reserved. Adobe Confidential. The AI opportunity for Document Cloud Conversational insight, assisted creation and streamlined collaboration for paid users • Integrated conversational AI Assistant for Acrobat • Accelerate document insights • Streamline consumption, creation & collaboration • Elevate PDF to a knowledge repository AI Assistant in Acrobat Reader provides new opportunities to monetize free MAU • AI Assistant integrated into free Reader • Provide AI onramp for hundreds of millions of users • Available across desktop, web and mobile Document Cloud AI Assistant in Acrobat Desktop/Web is in Early Access. AI Assistant in Acrobat Mobile is Coming Soon
Slide 25 — AI innovation drives new monetization opportunities
© 2024 Adobe. All rights reserved. Adobe Confidential. Individuals to enterprises AI innovation drives new monetization opportunities Monetization of consumption, creation, and collaboration with paid generative AI plans across Reader and Acrobat on all surfaces Access to AI Assistant brings more power to PDF across Reader and Acrobat offerings Enterprise APIs and controls, paid generative AI offer and increased value in Acrobat drive higher penetration in enterprises AI Assistant in Acrobat and Reader in Early Access
Slide 26 — AI Assistant innovation
© 2024 Adobe. All rights reserved. Adobe Confidential. AI Assistant innovation • A new way to get to what matters. Significantly benefits users by transforming their productivity and workflows • Builds upon third party LLMs and AI and ML models in Acrobat Liquid Mode • Intelligent citations: Adobe’s custom attribution engine can easily verify the source of AI Assistant’s answers Unlocking new value from the information inside the approximately 3 trillion PDFs1 in the world. 1 Adobe, March 2024 AI Assistant in Acrobat and Reader in Early Access
Slide 27 — PLG & viral growth loops drive audience expansion
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. PLG & viral growth loops drive audience expansion Conversion • Freemium features • Paywall testing • AI Assistant Engagement • Collaboration • Review & Comment • eSignatures Users • Multi surface • Multi channel • Freemium PLG means Product Led Growth. AI Assistant in Acrobat and Reader in Early Access
Slide 28 — >70%
© 2024 Adobe. All rights reserved. Adobe Confidential. Acquisition Viral growth Business outcome >70% Y/Y increase in monthly active users (MAU)1 >200% Y/Y increase in users sharing documents via link-sharing2 >65% Y/Y increase in new paid subscriptions from the web funnel3 Acrobat on the web: PLG results 1 Y/Y growth in Acrobat on the web MAU, Q1FY24 2 Average monthly unique MAU sharing documents for view & review, Q1FY24 3 Paid subscriptions sourced from all Acrobat on the web surfaces, FY2023
Slide 29 — 94%
© 2024 Adobe. All rights reserved. Adobe Confidential. Document Cloud revenue mix FY2023 Digital Channel $2.7B Source: Adobe, December 2023 Enterprise Subscription Perpetual & Services $2.7B By revenue type By RTM 94% Subscription Revenue
Slide 30 — ~$47B
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. 2027 Document Cloud TAM ~$25B Knowledge Workers • High propensity use cases • Advanced Gen AI, including collaboration • Increased organizational penetration • Expanded opportunity for creation & creative use • e-Signature for SMBs and Enterprises ~$22B Communicators • Broader web & mobile use cases • Generative AI Reader consumption use • Expanded opportunity for creation & creative use • e-Signature for general use 2027 Document Cloud total addressable market 2024 Document Cloud TAM ~$47B ~$32B Calculations performed by Adobe based on third-party research reports
Slide 31 — Creative Cloud
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. Creative Cloud opportunity
Slide 32 — What to expect in Creative Cloud: unleashing a new era of creativity
© 2024 Adobe. All rights reserved. Adobe Confidential. What to expect in Creative Cloud: unleashing a new era of creativity AI-first creative apps with Adobe Express and Firefly web app Generative AI natively built into Creative Cloud flagship apps Adobe Firefly foundation models built for all media types Adobe Firefly Services and GenStudio for personalization and automation at scale Firefly Services in Limited Release. GenStudio in Early Access
Slide 33 — Creative Cloud
© 2024 Adobe. All rights reserved. Adobe Confidential. The AI opportunity for Creative Cloud Supercharge content creation • Enrich ideation and exploration across media types • Deliver the power and precision professionals need • Accelerate previously costly production workflows • Streamline stakeholder collaboration • Drive content personalization at scale Fast and fun creative expression • Remove onboarding friction with AI-first creation apps • Empower students and creators to promote ideas • Enable marketers to work at the speed of social • Encourage consumers to express themselves Creative Cloud
Slide 34 — AI innovation drives new monetization opportunities
© 2024 Adobe. All rights reserved. Adobe Confidential. Subscriptions and consumption AI innovation drives new monetization opportunities Adobe Express and Firefly web app • Expand new user adoption through freemium offerings • Drive free to paid conversion with usage limits on generative AI capabilities • Offer new revenue stream with Generative Credits Creative Cloud apps & services • Increase value in flagship apps • Expand customer base / seats through improved onboarding and user success • Further increase engagement / retention • Offer new revenue stream with Generative Credits Adobe Creation and Production for Businesses • Drive Custom Model adoption • Drive adoption of Firefly Services for automation • New GenStudio solution • Enable workflows across Creative Cloud, Express, GenStudio and partners Firefly Services in Limited Release. GenStudio in Early Access
Slide 35 — >50%
© 2024 Adobe. All rights reserved. Adobe Confidential. AI momentum 1 Adobe, March 2024 2 Average monthly social interactions from May 2023 to January 2024 as compared to December 2022 to April 2023 3 Photoshop single-app gross new units Q3-Q4 FY23 compared to Q3-Q4 FY22 4 Y/Y growth in cumulative exports from Adobe Express, exiting Q1 FY24 5 Since launch on 3/7/24 through 3/18/24 Adobe Firefly >50% Increase in average monthly social interactions following the public beta release of Generative Fill in Photoshop2 >30% Y/Y increase in gross new Photoshop subscriptions3 Adobe Photoshop >6.5B Images generated since March 20231 Adobe Express >40% Mobile beta users who have used a GenAI feature5 >100% Y/Y growth in exports from Adobe Express4
Slide 36 — $12.4B
© 2024 Adobe. All rights reserved. Adobe Confidential. Creative Cloud ending ARR mix By offering Single app vs. all apps Source: Adobe, December 2023 Individual Team ETLA ETLA Team Individual $12.4B Single Apps All Apps Single Apps All Apps $12.4B FY2023
Slide 37 — Innovation roadmap
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. Innovation roadmap Firefly Image Model dynamic high energy dragon Firefly Vector Model a cute kawaii tiger Firefly Design Model a dance party post Video 3D Audio Generative Fill
Slide 38 — Introduction to Firefly Services
© 2024 Adobe. All rights reserved. Adobe Confidential. Asset Management Introduction to Firefly Services AEM Sites Campaign Journey Optimizer Delivery & Activation Marketo Target Workflow & Planning Frame.io Workfront Creation & Production CCE V4 Firefly Custom Models Express (w/Firefly) Frame.io Firefly Services (APIs) AEM Assets Reporting & Insights Customer Journey Analytics Firefly Services in Limited Release. Custom Models for Firefly Services Coming Soon
Slide 39 — ~$91B
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. • Increasing value in CC flagships through GenAI features and collaboration • Expanding reach with more approachable AI-enabled and web-based creative tools • New content generation solutions for enterprises & pros to deliver personalization at scale (custom models, APIs) • Content automation • AI-first creative apps enabling more people to participate in creative expression • Growth in content creation among students, marketers and small businesses • Continued expansion of the creator economy • New revenue streams with Generative Credits 2027 Creative Cloud TAM 2027 Creative Cloud total addressable market 2024 Creative Cloud TAM ~$44B Professional Creativity ~$47B Communicators & Consumers ~$91B ~$63B Calculations performed by Adobe based on third-party research reports
Slide 40 — Digital Media AI monetization
© 2024 Adobe. All rights reserved. Adobe Confidential. Digital Media AI monetization Line Optimization (Base Plans) Usage Levels (Generative Credit Plans) Enterprise Usage Based Pricing Generative Credit Plans Creative Cloud Base Plans AI Assistant for Acrobat and Reader Adobe Express Professional Creativity Communicators & Consumers Knowledge Workers & Communicators Firefly Services Firefly Custom Models Enterprise Services GenStudio Value Quantity Price Firefly (web app) AI Assistant for Acrobat and Reader & GenStudio in Early Access. Firefly Services in Limited Release. Custom Models for Firefly Services Coming Soon
Slide 41 — Product engagement: pushing the curve to the right with AI
© 2024 Adobe. All rights reserved. Adobe Confidential. Product engagement: pushing the curve to the right with AI Baseline GenAI-powered Shifting ‘the curve’ with Generative AI by attracting new users, and increasing the frequency and depth of usage Distribution curve graphic for illustrative purposes only Frequency & depth of usage Users
Slide 42 — Digital Experience
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. Digital Experience opportunity
Slide 43 — What to expect in Experience Cloud:
© 2024 Adobe. All rights reserved. Adobe Confidential. New generative AI-based solutions to revolutionize digital experiences starting with Adobe GenStudio Reimagining Experience Cloud apps leveraging generative AI AI Assistant enhancing productivity across Experience Cloud apps What to expect in Experience Cloud: delivering the future of digital experiences GenStudio in Early Access
Slide 44 — Experience Cloud
© 2024 Adobe. All rights reserved. Adobe Confidential. The AI opportunity for Experience Cloud Accelerate business value • Simplify content creation-to-activation process • Drive efficiency through embedded generative AI offerings and automated workflows • Shorten time to plan and deploy new use cases Expand enterprise user base • Enable any user to rapidly become proficient through conversational interfaces • Expand beyond marketing to include new functional areas • Democratize insights across the enterprise Experience Cloud
Slide 45 — AI innovation drives new monetization opportunities
© 2024 Adobe. All rights reserved. Adobe Confidential. AI innovation drives new monetization opportunities AI Assistant enhancing productivity across Experience Cloud apps • Drive upsell through availability of value-add features in higher value tiers • Create incremental adoption opportunities through seat expansion Reimagining Experience Cloud apps leveraging generative AI • Deliver added value for new and renewing customers • Enable list price uplift New generative AI-based solutions to revolutionize digital experiences starting with Adobe GenStudio • Offer scaled pricing based on number of seats and usage Subscriptions and consumption GenStudio In Early Access. AI Assistant across Experience Cloud apps In Development
Slide 46 — 117%
© 2024 Adobe. All rights reserved. Adobe Confidential. Adobe Experience Cloud business momentum FY20-FY23 Growth FY2023 117% Net dollar retention rate of Top 1000 customers2 ~$19M Average BoB1 of top 100 customers ~2.0x Growth multiple of top 100 customers 1 Book of Business (BoB) includes annualized subscription value of SaaS, managed service, term, and subscription services offerings 2 Net dollar retention reflects the annual growth rate of ARR for Top 1000 Digital Experience customers inclusive of any attrition, as of FY2023 3 Reflects Total Contract Value for top 10 customers at end of Q4 FY2023 Source: Adobe, December 2023 & March 2024 for AEP + apps BoB ~1.8x Growth multiple of top 1000 customers +52% growth in accounts with >$1M in BoB1 (FY2020 – FY2023) ~$4M Average BoB1 of top 1000 customers ~2.2x Growth multiple of top 25 customers ~$40M Average BoB1 of top 25 customers ~$1.6B Combined TCV of top 10 customers3 Value-driven customer expansion Annual revenue $3.1B $3.9B $4.4B $4.9B FY2020 FY2021 FY2022 FY2023 >$800M AEP + apps BoB exiting Q1FY24
Slide 47 — 1.2x
© 2024 Adobe. All rights reserved. Adobe Confidential. GTM: proven track record of solution adoption and expansion 1 Multiples use first full year revenue as baseline in each cohort (e.g., FY2021 cohort compares FY2023 revenue to FY2022) 2 Cohort analysis based on Subscription Revenue for all current Digital Experience customers who were added from FY2012 through FY2023, other than customers acquired as a result of M&A since 2018 Source: Adobe, March 2024 Average Subscription expansion multiple1,2 1.2x 1.9x 4.5x Expansion years1 1 3 7 FY 2012 FY 2023 10.6x 10
Slide 48 — $4.9B
© 2024 Adobe. All rights reserved. Adobe Confidential. Digital Experience revenue mix Source: Adobe, December 2023 FY2023 Revenue mix Subscription revenue by category Subscription Services & Other $4.9B $4.3B Data Insights & Audiences Content, Commerce, & Marketing Workflow Customer Journey Management
Slide 49 — ~$155B
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. 2027 Experience Cloud total addressable market Calculations performed by Adobe based on third-party research reports. 2024 Experience Cloud TAM 2027 Experience Cloud TAM • Content Supply Chain • GenAI-first content creation • Marketing System of Record • Integrated marketing workflows • Agile marketing and creative collaboration • Personalized commerce services • Single view of customer fuels Personalization at Scale • First-party data collaboration • Omni-channel customer analytics • Data governance • Product Analytics • Real-time customer journey orchestration • Intelligent offer decisioning • Audience based and 1:1 • Experimentation and decisioning • B2B & B2C • Web + mobile ~$49B Data Insights & Audiences ~$155B ~$110B ~$77B Content, Commerce & Workflows ~$29B Customer Journeys
Slide 50 — The digital experience flywheel
© 2024 Adobe. All rights reserved. Adobe Confidential. Variation & personalization The digital experience flywheel Data & AI Analysis & optimization Students • Consumers • Communicators • Creative Professionals • Developers • SMBs • Enterprises Digital experiences Creativity & productivity
Slide 51 — Financial strategy
Financial strategy
Slide 52 — Financial strategy
© 2024 Adobe. All rights reserved. Adobe Confidential. © 2024 Adobe. All rights reserved. Adobe Confidential. Financial strategy • Invest in the business and maximize growth • Further enhance value through inorganic opportunities • Offset dilution and consistently return capital via share repurchase • Strong cash flow generation and liquidity • Net debt neutral balance sheet • Strong investment grade credit rating Efficient Capital Allocation Robust Capital Structure Grow Revenue and EPS Disciplined Financial Management
Slide 53 — $25B
© 2024 Adobe. All rights reserved. Adobe Confidential. Strong, consistent capital returns $.6B $5.5B $26.2B 508M 498M 459M 440M 530M $0B $27B FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Weighted average diluted shares Cash paid for share repurchases Cumulative cash paid for share repurchases Weighted average diluted shares Source: Adobe, March 2024 Meaningful share count reduction over the last decade, over $26 billion of shares repurchased Prior four year repurchase authorization fully utilized over three years New repurchase authority announced through March 2028 $25B
Slide 54 — ~$293B
© 2024 Adobe. All rights reserved. Adobe Confidential. Expanding Adobe's opportunity: the path to $30B and beyond New multi-surface consumer offerings Value-added services and generative AI augment flagship offerings Comprehensive, multi-cloud, integrated solutions for enterprise Accelerating time-to-value to take customers deeper Firefly Services Experience Platform + apps GenStudio Broadening our reach to new audiences Firefly Acrobat Adobe Express Tens of millions SMBs4 >1.5B Monthly A.com visits3 ~3T PDFs in the world2 Tens of thousands Enterprises4 >5B Web-connected people1 1 Statista, Number of internet and social media users worldwide, January 2024 2 Adobe, February 2024 3 Adobe, monthly average, October 2023 through February 2024 4 Internal estimate based on third party data, 2023; SMB means small and medium business TAM calculations performed by Adobe based on third-party research reports. GenStudio in Early Access. Firefly Services in Limited Release 2027 Adobe TAM ~$293B
Slide 55 — Appendix
Appendix
Slide 56 — Non-GAAP reconciliation
© 2024 Adobe. All rights reserved. Adobe Confidential. Non-GAAP reconciliation Reconciliation of GAAP to non-GAAP operating margin FY2013 FY2014 FY2015 FY2016 FY2017 GAAP operating margin 10.4 % 10.0 % 18.8 % 25.5 % 29.7 % Stock-based and deferred compensation 8.2 8.1 7.0 6.0 6.3 Restructuring and other related charges 0.7 0.5 - - - Amortization of purchased intangibles & technology license arrangements 3.8 3.0 3.3 2.3 2.0 Loss contingency (reversal) - 0.2 (0.2) - - Non-GAAP operating margin 23.1 % 21.8 % 28.9 % 33.8 % 38.0 % Source: Adobe, December 2023
Slide 57 — Non-GAAP reconciliation
© 2024 Adobe. All rights reserved. Adobe Confidential. Non-GAAP reconciliation Reconciliation of GAAP to non-GAAP operating margin (continued) FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 GAAP operating margin 31.5 % 29.2 % 32.9 % 36.8 % 34.6 % 34.3 % Stock-based and deferred compensation 6.8 7.1 7.2 7.0 8.1 8.9 Amortization of intangibles 1.8 3.6 2.8 2.2 2.3 1.9 Acquisition-related expenses (*) - - - - 0.1 0.6 Loss contingency (**) - - - - - 0.2 Non-GAAP operating margin 40.1 % 39.9 % 42.9 % 46.0 % 45.1 % 45.9 % Source: Adobe, December 2023 (*) Associated with the Figma transaction, and includes deal costs, certain professional fees and the termination fee (**) Associated with an IP litigation matter
Slide 58 — Non-GAAP reconciliation
© 2024 Adobe. All rights reserved. Adobe Confidential. Non-GAAP reconciliation Reconciliation of GAAP to non-GAAP earnings per share FY2013 FY2014 FY2015 FY2016 FY2017 GAAP diluted earnings per share $ 0.56 $ 0.53 $ 1.24 $ 2.32 $ 3.38 Stock-based and deferred compensation 0.65 0.65 0.67 0.70 0.92 Restructuring and other related charges 0.05 0.04 - - - Amortization of purchased intangibles & technology license arrangements 0.30 0.24 0.30 0.27 0.29 Non-operating income (expense) 0.01 - (0.04) - (0.02) Loss contingency (reversal) - 0.02 (0.02) - - Income tax adjustments (0.23) (0.15) (0.07) (0.28) (0.26) Non-GAAP diluted earnings per share $ 1.34 $ 1.33 $ 2.08 $ 3.01 $ 4.31 Source: Adobe, December 2023
Slide 59 — Non-GAAP reconciliation
© 2024 Adobe. All rights reserved. Adobe Confidential. Non-GAAP reconciliation Reconciliation of GAAP to non-GAAP earnings per share (continued) FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Q1 FY24 GAAP diluted earnings per share $ 5.20 $ 6.00 $ 10.83 $ 10.02 $ 10.10 $ 11.82 $ 1.36 Stock-based and deferred compensation 1.23 1.62 1.90 2.30 3.02 3.78 1.03 Amortization of intangibles 0.35 0.80 0.74 0.73 0.85 0.81 0.18 Acquisition-related expenses (*) - - - - 0.05 0.25 2.21 Loss contingency (**) - - - - - 0.10 - Investment losses (gains), net (0.01) (0.10) (0.03) (0.03) 0.04 (0.03) (0.04) Income tax adjustments (0.01) (0.45) (3.34) (0.54) (0.35) (0.66) (0.26) Non-GAAP diluted earnings per share $ 6.76 $ 7.87 $ 10.10 $ 12.48 $ 13.71 $ 16.07 $ 4.48 Source: Adobe, March 2024 (*) Associated with the Figma transaction, and includes deal costs, certain professional fees and the termination fee (**) Associated with an IP litigation matter
Slide 60 — Non-GAAP reconciliation
© 2024 Adobe. All rights reserved. Adobe Confidential. Non-GAAP reconciliation Reconciliation of GAAP to non-GAAP FY2024 financial targets Diluted earnings per share FY2024 Target - Low FY2024 Target - High GAAP diluted earnings per share $ 11.26 $ 11.66 Stock-based and deferred compensation 4.33 4.33 Amortization of intangibles 0.73 0.73 Acquisition-related expenses (*) 0.13 0.13 Acquisition termination fee (*) 2.19 2.19 Income tax adjustments (1.04) (1.04) Non-GAAP diluted earnings per share $ 17.60 $ 18.00 Source: Adobe, March 2024 (*) Associated with the Figma transaction. “Acquisition-related expenses” includes deal costs and certain professional fees. Earnings per share targets assume diluted share count of ~454 million for fiscal year 2024 Effective income tax rate FY2024 Target GAAP effective income tax rate 20.5 % Stock-based and deferred compensation (1.3) Amortization of intangibles (0.2) Acquisition termination fee (*) (2.5) Income tax adjustments 2.0 Non-GAAP effective income tax rate 18.5 %
Slide 61 — Use of Non-GAAP Financial Information
© 2024 Adobe. All rights reserved. Adobe Confidential. These Materials contain non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles (“GAAP”), including non-GAAP operating margin, non-GAAP diluted earnings per share, non-GAAP tax rate and constant currency revenue growth rates. These non-GAAP financial measures are not an alternative for measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Adobe believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s financial results as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s financial results in conjunction with the corresponding GAAP measures; therefore, the Company qualifies the use of non-GAAP financial information in a statement when non-GAAP information is presented. Non-GAAP operating margin, non-GAAP diluted earnings per share and non-GAAP tax rate may exclude items including (but not limited to): stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, income tax adjustments, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Constant currency revenue growth rates are calculated by converting non-United States Dollar revenue using comparative period exchange rates and determining the change from prior period reported revenue, adjusted for any hedging effects. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate our operating results and future prospects in the same manner as management. Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP and non-GAAP measures, as well as the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure. Use of Non-GAAP Financial Information