And that’s what we are enabling them and personalization in real time at scale. So, this is a significantly large opportunity. And what we believe is that as we go through this time, single product companies are going to come under a lot of scrutiny. So, while we definitely see deals getting scrutinized and going up to higher levels for approval, we also see that customers really want to invest in a market leader like us for their investments, it’s going to last the next 10, 15 years to — for the digital investment. So pleased with where we are.
Shantanu Narayen: Maybe Anil, I’ll just add a couple of things to what you said. I mean the first is that value realization has been top of mind for a lot of these customers. And so, I think if you look at the business as well, the services part, it’s very clear that people want to implement it. And what I think is unique about Adobe’s offerings in this particular space is that we help both with the customer engagement and frankly, the top of funnel as well as we help with productivity and cost. And so, it doesn’t matter which side of that equation you are as, as an enterprise, I think both of them find that the Adobe Experience Cloud as well as, frankly, what we are doing with Sign actually help them on both fronts. And so we’re pleased associated with that, and we have good visibility.
I want to complement Anil and his team on the execution against the pipeline and transformational deals also, I think, just reflect the overarching interest that people have in making sure digital continues to be an imperative. And so, we’re not going to be immune to the macroeconomic, but I like our differentiated solution and our execution.
Operator: And our next question comes from Brent Thill with Jefferies. Please go ahead.
Brent Thill: Thanks. Dan, in terms of your guide, are you implying the environment gets worse or stays the same. And for Shantanu, can you just talk about the next 6 to 9 months as we potentially go into a tougher economic headwind, how you’re reshaping and rethinking your go-to-market or any steps that you can take to ensure you can cut through what is coming in.
Dan Durn: Yes. So, from a guide standpoint, we spent a lot of time talking about the environment we’re in during FA day. Against that backdrop, you can see the momentum of the business. You can see the execution against the opportunities. What I really like about the way we’re positioned in the market. There’s a diversification of the company. It’s end markets, it’s product segments, it’s business models, it gives us a resilience in the environment that we’re in, and we see that in the momentum we’re carrying into next year. There’s really no change to the view of the environment that we’re in, and you see that reflected in the targets that we set for 2023. So, we feel good about the way we’re executing against a complicated macro environment, and we’ll continue to stay focused on adding value to our customers, but there’s a diversification and a resilience to who we are and a mission criticality of what we sell to our customers.
And then you could see that in the comment that Shantanu made. You can see us impacting the company’s top line. You can see us impacting the productivity with which they serve their customers, and that puts us in a pretty unique position.
Shantanu Narayen: And Brent, as it relates to your second question, I’ll unpack that in maybe two ways. First is we’re really pleased with what we did and even when the pandemic first started about prioritizing what was really critical for us. And I think the prioritization exercise when you’re really focused on your top imperatives, that’s really helped bring clarity and alignment within the company that I don’t think should be undersold in terms of how effective that has been for execution. As it relates to the next 6 or 9 months and you think about the three routes to market, digital continues to be an area of strength. I mean, I know through our Adobe Digital Index we talk about what we are seeing in terms of people continuing to engage with the customers — companies that they want to transact with electronically.
And so, on the digital side, we will just continue to make sure we focus on acquiring the customers. David spoke to some of the effective campaigns. Clearly, we understand the attribution of that. And we just have to remain vigilant on making sure that we’re attracting the customers on the new platforms where they exist. And for retention, which is a key issue as well, just how they continue to get value from the offerings that they have. The partner ecosystem, whether that’s for the small and medium business or whether that’s for what we are doing with the SI and VAR community on Digital Experience, just continuing to enable them, continuing to engage with them. I think that’s a part. Clearly, the small and medium business did see a rebound after what they went through last year, which was a really bad situation.
So I think we have to remain vigilant on that. And I think on the direct sales part, as we look at our pipeline, December, despite the fact that it’s our first month of our quarter, we will continue to focus on execution against that to take advantage of whatever budget flush exists in companies. And then, as you start to come to what happens in Japan in February as it’s the end of their fiscal year, continuing to focus on Europe. Brent, Europe was actually one of the highlights for us in the quarter. I think Adobe Experience platform has done well. And so, we remain cautious clearly about the macroeconomic, but I think we have visibility into making sure that we can continue to execute, Brent.
Operator: We’ll go ahead and move on to our next question from Keith Bachman with BMO. Please go ahead.
Keith Bachman: Hi. Thank you very much. And apologize in advance for some background noise. Shantanu and David, I wanted to direct this to you, if I could. The ARR net new in the quarter was very good, particularly relative to expectations. If we look back over a little longer period of time though than the quarter, growth has slowed in net new ARR, even if it’s assuming of flattening out. And what I didn’t — what we didn’t really get — I think as much as we would have liked at the Analyst Day was, what do you think the key drivers of the net new ARR and creative have been or total ARR, if you want? And what are the key things that you’re focused on before Figma that would cause an improvement in AR growth? I assume that one has been perhaps Adobe Express as a more compelling entry point.
Is there anything else that you can call out as some things that you believe that Adobe is focused on like really some issues in the past that you think are going to be resolved and therefore before Figma but improve despite the macro or help growth in the creative side? Many thanks.
