Adobe Inc. (NASDAQ:ADBE) Q1 2023 Earnings Call Transcript

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And the third is really around the evolution with FigJam, bringing that into the core for productivity use cases. So, taking FigJam and integrating it more deeply with things like Acrobat and starting to just recognize that creativity is starting to be the foundation of how new productivity applications need to present themselves. And that whole motion of enabling productivity workers to express themselves creatively is where the market is going with the rise of the creator economy. And so we see €“ we just see a ton of opportunities to integrate the products. We can’t €“ we are limited in what we can talk to them about in a moment. But what I can say is everyone from Adobe employees to Figma employees, to our customers, can’t wait for this to close so we can actually get moving on all this.

Saket Kalia: Very helpful. Thanks guys.

Jonathan Vaas: Operator, we are just about at the top of the hour. We will take one more question, please.

Operator: Thank you. We will take our next question from the line of Brent Thill with Jefferies. Please go ahead.

Brent Thill: Shantanu, on the DX business, I am just curious if you could just give us an overview of what you are seeing there. Are you still seeing the big deals? Are you seeing a smaller number of €“ higher number of smaller transactions, anything? Can you just talk through the pipeline? Just general kind of set up, what you are seeing in terms of the overall DX business and how customers are behaving?

Shantanu Narayen: Happy to, Brent, and I hope we get to see you next week at Summit because then you willalso get to meet a whole bunch of customers. I think €“ and Anil, certainly feel free to add. I mean I think we saw some really good transformational deals. I think both Dan and Anil referred to that. And so companies that are looking at Adobe to help them with their entire end-to-end customer experience management, good strength there, Brent. I mean those tend to be ones that we have worked with for many years and some that are really looking at it as a strategic. So, I would say that segment, the pipeline associated with people who are looking for a comprehensive and integrated CXM solution is pretty large. I think as it relates to what we call the solution-led segment as well, which is people who may have our analytic solutions and want content solutions or those who have both of those and want journey optimizer or customer journey analytics or certainly the commerce solutions, that’s another part of the business where we are making sure that we can up-sell.

I know Anil typically at every FA meeting gives you stats and metrics on how we are making progress. So, that is one. Given we have the customer relationship and we have the customer engagement, and we have customer success managers, I think continuing to penetrate a customer account, that’s where also we see pipeline. And that’s a pipeline that’s driven, frankly, by us. I think in terms of the geographies, we continue to see strength in North America. I think when you think about EMEA, that remains an area of strength. There are some areas in Asia, some countries in Asia. So, our job there, really, Brent, has been how do you drive a large pipeline, understanding that there is going to be different companies that look at this differently in specific quarter, but we are focused on the addressable market.

Anil, I don’t know if you have other stuff to add.

Anil Chakravarthy: I think the only thing I would say is I think the themes that we are going to hit on at Summit, personalization at scale, content supply chain, even for customers who are starting with a single product, they like that vision because they know that, that is what is key to driving the digital growth and driving profitable growth. So, even if they are starting with one and focusing on value realization, they have their eye on a longer term roadmap, and that benefits our relationship with them.

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