Adobe Q2 FY2022 Earnings Call Script

June 16, 2022

JONATHAN VAAS

Good afternoon and thank you for joining us. With me on the call today are Shantanu Narayen, Adobe's Chairman and CEO, David Wadhwani, President of Digital Media, Anil Chakravarthy, President of Digital Experience, and Dan Durn, Executive Vice President and CFO.

On this call, which is being recorded, we will discuss Adobe's second quarter fiscal year 2022 financial results. You can find our Q2 press release, as well as PDFs of our prepared remarks and financial results, on Adobe's Investor Relations website.

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Adobe Q2 FY2022 Earnings Call Script

June 16, 2022

The information discussed on this call, including our financial targets and product plans, is as of today, June 16, and contains forward-looking statements that involve risk, uncertainty and assumptions. Actual results may differ materially from those set forth in these statements. For a discussion of these risks, you should review the factors discussed in today's press release and in Adobe's SEC filings.

On this call we will discuss GAAP and non-GAAP financial measures. Our reported results include GAAP growth rates as well as adjusted growth rates in constant currency. During this presentation, Adobe's executives will refer to constant currency growth rates unless otherwise stated. Reconciliations between the two are available in our earnings release and on Adobe's Investor Relations website.

I will now turn the call over to Shantanu.

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Adobe Q2 FY2022 Earnings Call Script

June 16, 2022

SHANTANU NARAYEN

Thanks, Jonathan. Good afternoon and thank you for joining us.

Adobe had a strong Q2, driven by the secular shift to digital that is transforming how we live, work and play.

In Q2, we achieved a record $4.39 billion in revenue, representing 15 percent year-over-year growth. GAAP earnings per share for the quarter was $2.49 and non-GAAP earnings per share was $3.35.

In our Digital Media business, we drove strong growth in both Creative Cloud and Document Cloud, achieving $3.20 billion in revenue. Net new Digital Media Annualized Recurring Revenue or "ARR" was

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Adobe Q2 FY2022 Earnings Call Script

June 16, 2022

$464 million, and total Digital Media ARR exiting Q2 grew to $12.95 billion.

In our Experience Cloud business, we achieved $1.10 billion in revenue, and subscription revenue was $961 million for the quarter.

The digital economy runs on Adobe's tools and platforms. Customers, from individuals and small businesses to the largest enterprises are using our products to unleash their creativity, accelerate document productivity and deliver personalized customer experiences. Digital experiences-from apps on our devices, to digital documents we consume, edit and sign, to personalized online shopping experiences-are made possible by Adobe. Our mission to enable the world's digital experiences has never been more relevant and we remain focused on executing our long-term growth initiatives. We are delivering mission-critical products that serve an ever-increasing base of customers and we have a track record of strong growth and profitability. In my conversations with customers around the world, it is clear that digital is playing a pivotal role in powering the economy and enabling the world to keep moving forward.

I will now turn it over to David to share more about our momentum in the Digital Media business.

David.

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Adobe Q2 FY2022 Earnings Call Script

June 16, 2022

DAVID WADHWANI

Thanks, Shantanu. And hello everyone.

Digital Media: Creative Cloud

Adobe products have always been the solution of choice for the world's creators, whether they're designers, photographers, filmmakers or illustrators. Today, the explosion of the creator economy is enabling even more individuals, solopreneurs and small business owners to express themselves in creative ways, whether it's a hobby, a side hustle or a full-time job. Every creator and business is reimagining how they build their brand and engage their audiences in a digital-first world,

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Adobe Inc. published this content on 16 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 June 2022 20:12:03 UTC.