Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Sales of CC single apps, including a strong quarter for Imaging and photography offerings |
| We are thrilled with the momentum we're seeing in the Creative business following a year of unprecedented innovation |
| Q4 was our first-ever $5 billion quarter, a new record for the company |
| And as we said, this is again new growth business and it will be a multi-year pricing benefit for us as we think about the uplift that we have |
| I mean, for us, we look at FY '23, and we're really proud what we were able to accomplish across all spectrums topline revenue, RPO and driving book of business, Creative Cloud, Document Cloud, and Experience Cloud and profitability, and we think '24 is going to be exactly more of the same, which is continuing to drive great innovation, great product growth, great profitability |
| Q4 was the culmination of another record year for Adobe, achieving $19.41 billion in revenue, which represents 13% annual growth |
| So really exciting |
| Our strong performance reflects the mission-critical role our products play in a digital-first world, incredible product innovation and exceptional execution |
| I mean, certainly, really thrilled with what a phenomenal year we had across all aspects of the business, whether it was the $5 billion quarter, $5 billion book of business now in DX exiting, and certainly Digital Media ARR performance |
| Adobe's mission of changing the world through personalized digital experiences and our delivery of foundational technology platforms, set us up for the next decade of growth |
| And so to your point on the execution front, we have delivered some great innovative products |
| We believe that every massive technology shift offers generational opportunities to deliver new products and solutions to an ever-expanding set of customers |
| Our fiscal '24 financial targets reflect our confidence in continuing to drive strong topline growth and world-class profitability |
| We have delivered against this strategy and I'm pleased that a number of our groundbreaking innovations, including our Firefly models and integrations across Creative Cloud, Liquid Mode and integrations across Document Cloud and AI services in our real-time Customer Data Platform and integrations in Experience Cloud, are now seeing tremendous usage by customers |
| We remain excited about the strategic opportunity with Figma, to jointly advance product design, accelerate collaborative creativity on the web, and redefine the future of creativity and productivity |
| Every quarter won't be that large, but the backdrop around that dynamic for the company given the setup we see, it should be another strong year for RPO throughout the year |
| In Q4, we achieved net new Digital Media ARR of $569 million and revenue of $3.72 billion, which grew 14% year-over-year, fueled by innovation in both our Creative and Document businesses |
| Thanks to our innovative roadmap expanding global customer base, strong brand, and the best employees in the world |
| Adobe is incredibly well-positioned to lead and capitalize on this opportunity |
| We were again named to the Dow Jones Sustainability Index, Glassdoor listed Adobe is one of the best places to work and Interbrand ranked us in the top 20 Best Global Brands as the rising brand for the eighth year in a row |
| So I feel really good |
| In addition to our financial accomplishments, we are proud to once again be recognized for our industry leadership |
| Q4 was a record quarter for Creative Cloud, achieving $3 billion in revenue, which grew 14% year-over-year |
| Business highlights include strong digital traffic, resulting from product innovation, social engagement, and our continued product-led growth efforts which drove record new commercial subscriptions in the quarter |
| I mean, I would say, we take our guide very seriously, the other way of looking at it, Kash, is its highest annual guide ever in terms of what the guide we've issued, it's the highest Q1 guide ever and we want to go again, execute against this large opportunity and have another record year |
| So, we're feeling good, the momentum is certainly there in the business |
| We expect our cash tax rate to improve sequentially in FY '24 by 2 percentage points as the amortization of previously capitalized R&D increases our deductions next year for tax purposes, benefiting our operating cash flows next year |
| On Document Cloud, really strong results |
| Adobe Premiere Pro advances include a significant performance improvement in the timeline for faster and smoother editing, new color preferences, and improved tone mapping |
| So, let me start off by saying that, I think at our Investor Meeting, we told you that we would expect a strong quarter, I think you would acknowledge, we posted some really strong numbers and the momentum continues |
| Statement |
|---|
| I think that's the surprise for investors -- a negative surprise for investors that we're trying to figure out, was there something dragging the Creative Cloud side of the equation this year, or a tough comp from last year, or something that explains why the price increases in all the positive momentum and innovation out of Adobe MAX isn't translating into net new ARR growth for Creative Cloud, in particular |
| I think there's still a little concern from the Street in terms of why you're guiding, where you're guiding relative to where the Street was at |
| Creative Cloud, where we actually saw price increase and we have all the excitement in Firefly that was actually down on a year-on-year basis |
| With that said, definitely we're seeing macroeconomic impact, just like other enterprise software companies are |
| First, let me clarify, there is nothing as it relates to the economic indicators that we saw anything that would give us cause for concern |
| And as a result, there is definitely some scrutiny and caution there |
| And this is the first time since 2018, we've seen Creative Cloud net new ARR below $400 million |
| And maybe just a slight headwind versus what we were seeing a year ago |
| And fourth, if you really want to have sort of sharpen your pencil, the pricing impact on ARR in '24 is actually lower than the pricing impact was in '23 to Creative Cloud |
| By the time we got to Q4, you saw that spread compress, as I look forward into FY '24, it's more of a neutral footing to maybe a slight headwind |
| Dan Durn And then just one thing to add, Brent, If we were here a year ago, the expectations going into the year where FX was going to be a pretty decent headwind to the performance, you see that in the way we've reported our results and then compare it to a constant-currency basis |
| We strongly disagree with these findings and are responding to the respective regulators |
| You need to consider that FY '22 had two pricing actions, that accrued to Creative Cloud that are much lower now in Q4 FY '23 |
| So, nothing that we see on the horizon would tell us either from the economic or competition, that we're not poised to have another great year and profitability as well, I mean, look at the numbers that we posted both in terms of Q4, as well as for fiscal '24 and that is that does not in any way mean that we're not going to invest in all of the cloud and the foundation models |
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