Welcome everyone to Adobe's 2022 financial analyst meeting. I'm Jonathan Vaas, VP of Investor Relations, and I'm gonna say the same thing I just heard everyone on the MAX keynote say, it's so great to see everyone here in person. Even right before the event, I shook hands with four or five people that I've been speaking with for the last three years on video screens, haven't yet met in person. Some of you, I know your voices only. We've spoken on the phone. It's just really great after all that time to finally be gathering here together. Also wanna welcome members of Adobe's board of directors who have joined us here today. We're grateful to have you in the room. Also, lastly, I wanna welcome the folks around the world who are joining and listening to the live webcast. This is my twelfth analyst meeting at Adobe, and it's the first one we've ever done that's been both an in-person event and a live simultaneous webcast. We're really excited to be able to both gather together here today and make sure all those folks have access. I've been reflecting a little bit being that it's been three years since we last met here in this theater in person, just thinking about some of the other analyst meetings we've had over the years. My first year at the company was 2011. I know many of you were at our analyst meeting that year. It was when we announced Creative Cloud. The next one I've been reflecting on a lot was 2019 when we were here in this theater. That was when I first met many of you in person, and we had just announced the Adobe Experience Platform. We're so excited to share more today about how that business has grown since then. I remember lots of questions, lots of folks typing and learning about this new product we had just brought to market 3 years ago. Then the last one I'll share before I move on was 2020. That was my first year leading investor relations for Adobe. The initial analyst meeting was very different than what I had always imagined in my mind's eye. I was the same place I just learned today where Adobe's first ever MAX was, Salt Lake City, Utah. 20 years ago, I learned at the keynote that was the first Adobe MAX. 2 years ago at our analyst meeting, I was at my home in Salt Lake City in the darkest room and the quietest room in the house in the basement, hoping my internet wouldn't go out, hoping my kids wouldn't run in and create a viral moment as we did the analyst meeting. That's my way of saying I'm very, very glad to be here in person with all of you. What did those other meetings have in common? One thing we've talked about a lot over the years is Adobe's addressable market. Last year, we shared the market had grown to being a $205 billion market by 2024. This year, we wanna go a step further, rather than just talking about the TAM, really go into the growth algorithm. That comes from a lot of the questions we've heard from you over the last several months as we've been talking. I'll say more about that in just a moment. First, the disclaimer. All of the presentations today will include forward-looking statements that involve risk and uncertainty. Please see the risk factors in our SEC filings for more information about that. We'll also be sharing GAAP and non-GAAP financial metrics. We have reconciliations between the two that you can find on our investor relations website. In terms of growth rates that we'll be sharing today, you'll see both as reported rates, constant currency rates, as well as adjusted rates, and those account for the extra week that was in Q1 of fiscal 2021 as compared to fiscal 2022. Lastly, you'll see on a number of the presentations 2022 estimated numbers. What we've done there is we've taken Q1 through Q3 actuals and added our Q4 targets to those to come up with that 2022 estimate. Let's take a quick look at the agenda. You can see the order of the speakers here. Right after David's presentation, we'll take a short break. What I really wanted to highlight was just sort of our goals for what I hope we're sharing today and what comes across. Shantanu will start out by sharing vision and strategy for the company. Gloria is gonna share foundations of our success, really highlighting not just our ESG strategy, but a lot of the goals we've set and progress against those goals. David and Anil will share growth drivers, a lot of new information about how we're growing our digital media and digital experience businesses and how we think about growth going forward. You'll see some of those new metrics shared in the presentation materials today, which we're working to get up on our IR website right now. Then lastly, Dan will share our financial strategy, talking about growth drivers on the top line, margin drivers, capital allocation strategy, and ultimately the 2023 preliminary targets. With that, I will hand it over to Adobe's chairman and CEO, Shantanu Narayen. Thank you, Jonathan. Thanks, Jonathan. For those of you joining online as well as, in particular, for those of you joining in person, I'd like to welcome you as well to the FA meeting. I really hope you had an opportunity to see MAX, though. Because when you see MAX and you understand the relationship that we have with our community on the creative side and the incredible innovation that the teams are doing, it just gives you a sense of the impact that Adobe has had on publishing. For me, what I'm really gonna focus on a little bit is sharing with you my perspective of 2022. I'll go a little bit then into the strategic stuff. Certainly, David and Anil are gonna go into it in a lot more detail and maybe share a little bit of my perspective on what's happening in the macroeconomic environment. First, as I think about 2022 and give ourselves our report card on what happened in 2022, I always start with product. When I think about product, Adobe at its core is a product company. We're always focused on anticipating and building products that serve an ever, broader set of customers. Across all of our product lines, we had some pretty incredible innovation that we delivered this year. When you think about creative, really the focus has been a lot more on thinking about what we do as it relates to power and precision, as well as speed and ease, as Scott shared today. Because we have this incredibly broad set of customers. When you think about how we're serving consumers, how we're serving communicators, how we're serving creative professionals, the breadth of what we offer has to adapt itself to serving these set of customers. When I think about our flagship products, and Photoshop and Illustrator and Premiere Pro and After Effects are certainly in that, I think a lot of people have been talking about the narrative of artificial intelligence and what we are doing with AI. We showed, I think, a number of really dramatic improvements as it relates to the AI features that we had in Photoshop. There's a one-click delete. There's a fill tool that now allows you to remove and replace objects in images. That's been really one of the themes. You know, a lot of people are talking about AI. We've been working on it for many years. We have a really good strategy in terms of how we think about all of the people who are using our products, how we collect that data, the models that we have associated with it. AI is certainly something when we think about power and precision and learning from the tens of millions of people who use our product. I think we did some really incredible work in there. The second theme that we've been spending a lot of time on as it relates to our creative products is collaboration. Again, David's gonna touch a lot on what's happening with collaboration. We think about it both in terms of synchronous collaboration as well as asynchronous collaboration. You know, Acrobat has certainly been one of the key flagship products that drove a lot of what happened with asynchronous collaboration. Even in synchronous collaboration and asynchronous, we've been investing a lot. The Share for Review products that you saw today, that's been many years in the making in terms of how do you allow creators or teams of creators to work with an ever-increasing set of stakeholders. Some pretty incredible work that's happened there. Again, on the flagship products, Video has certainly seen a lot of growth. What we did with the first production review approval workflow, we've integrated Frame.io incredibly well. That has quite a bit of stakeholder participation when you create video. The new emerging space of 3D and immersive, and I think that was again accelerated by what happened in the pandemic as people were not there. I think we made some fairly significant moves. You saw a new product again out there today with Substance. I think we have really one of the most comprehensive set of products in there. I think one area that a number of you have, as investors, have been asking us about as it relates to our mission for creativity for all is what's happening as it relates to, you know, targeting consumers and communicators. We certainly already have the largest business in the world as it relates to targeting them. But we're really thrilled about the launch of Adobe Express. It's the new template-based web as well as mobile product for communicators as well as for consumers. You know, for us, the real advantage that we have is we have the brand in order to deliver this to our ever-increasing set of customers. More important, we have the technology. The ability for us to accelerate the pace of what we can do, whether it's in video, whether it's in imaging, whether it's in illustration, artwork, vector, that list goes on. We're really excited about it. We're probably a little late as it relates to dealing with search-based intent and doing it on the web. We're here with Adobe Express, and it's gonna be awesome. It already is an awesome product. When I think about what we are doing on the document side, and we've always talked about accelerating document productivity, we made some fairly significant enhancements on the PDF side as well. First, the file format. The file format continues to be the most ubiquitous file format in the world. We have trillions of PDFs out there. The two things that I'm particularly proud of what we were able to accomplish is first, continuing to make sure that PDF for the mobile era is not just relevant, but it's seamless and it's excellent. We have 150 million, I think, downloads of Adobe Scan, and so allowing PDF creation for the mobile era, we made a significant amount of progress. We made a significant amount of progress on the web as it relates to, you know, the 1 billion searches that happen in terms of people looking for PDF functionality and verbs, making sure that we capture that in Adobe. Third, David's also going to talk a lot about what we are doing with making sure that we take Sign and we take Acrobat, make that a unified offering as well as ensure that we are scaling that across all customer segments. You know, on the Acrobat side, some significant product enhancements that we've done. We've also been talking to you about the API economy and how we can make sure that PDF is available not just as an end product, but also as an API, so that people who want this new responsive PDF that can be viewed on mobile devices or that can be signed, they're using our PDF to automate their inefficient paper-based processes as well as do the customized digital experiences that they want to deliver. Some great progress there. It was interesting that Jonathan talked about the Adobe Experience Platform and the fact that we announced that here. We always believed that every enterprise in the world, as they had to engage with customers, needed this new Real-Time Customer Data Platform. When we think about the number of growing global brands that are using it, whether it's Home Depot or FC Bayern or NFL, U.S. Bank, Nike, you know, we're really pleased with the progress that we've had. Anil's gonna talk about the book of business, which has gone from something like $70 million to $450 million in a couple of years with a clear leader on that. It's not just about this organic innovation where we saw an opportunity and we said, "We're gonna build that next generation customer real-time data platform," it's also the fact that we took all of our existing products and recreated them on top of this new platform. When you think about what we are doing with Customer Journey Analytics or Adobe Journey Optimizer, it's really enabling, whether you're the chief digital officer, the chief revenue officer, the chief marketing officer or the chief information officer, to think about all of the customer touchpoints that you have across multiple channels and make sure that Adobe is the product that's actually powering all of these, digital experiences. You know, we continue to innovate in that space. We've introduced some new media mix modeling right now to think about attribution and marketing as people are clearly spending more and more money, on the marketing front. When you think about the Adobe Digital Index, you know, data is something that's really important to us. I think we have our pulse on what happens because of the trillions of data points that we have in Adobe Analytics. We also look at the things when we think about Adobe's purpose and making sure that we're focusing on what we stand for. Initiatives like the Content Authenticity Initiative are also near and dear to us because we take very seriously the responsibility that we have. Now the fact that there are 800 organizations that are partnering with us to combat misinformation and provide attribution and provenance for creators is something that we're quite proud of. I think all of this innovation, when you think of all of this innovation, it's always great to see, because this is a criteria that enterprises use, that Forrester and Gartner continue to believe that we have, both in terms of the completeness of vision as well as our ability to execute top rankings in these particular spaces. On the right side, culture and purpose, you know, Gloria is gonna talk a lot about that. Everybody talks about the war for talent, but making sure that we can attract, recruit, retain, and grow people has always been, I think, one of the reasons why Adobe has been as successful as we've been. Whether it's Fast Company's best workplace for innovators, Fortune's best workplaces in tech, you know, one that's near and dear to my heart, top employers for college graduates because you wanna hire those scary, smart people who are coming into the company, I think we just continue to be incredibly proud of how we're recognized for being a company that's thoughtful about people and thoughtful about social purpose. Feels good on that front as well. When I talk about numbers, because this is a financial analyst meeting, you know, I think it's important to put that in perspective and remember what we had guided to at the beginning of the year. It was approximately $17.9 billion that we had talked about, and what we had talked about $13.70 approximately on EPS with $1.9 billion in Digital Media ARR. Those are probably the three terms that all of you have paid the most attention to. When you think about what's happened with the macroeconomic environment, what's happened with our decision to cease product sales in Russia or Belarus, what happened with FX and a little bit of that going against us. If you think about what we will accomplish when you factor in those at the Q4 guide, which we reaffirmed today, and you take the Q1 to Q3 actuals, you know, our revenue is approximately $17.6 billion, which is I think phenomenal performance. On the earnings and the EPS, you know, it's ten cents below what we had guided, you know, at the beginning of the year, despite this massive headwind that we've all seen in FX. I feel good about all of that. Certainly, digital media net new ARR at $1.88 billion. We'll talk about, you know, how we look at that moving forward. It feels like, you know, when everybody's talking about the rule of 40 or 50 in software companies, we continue to be in rarefied atmosphere, and I think we're gonna be extremely thoughtful as we move forward in 2023 about thinking about what is the macroeconomic environment and how do we invest to continue to make sure that we're leading platforms, but how much do we invest on the revenue growth and the ratio of revenue growth to EPS. I think we'll talk about that. You know, I'm really proud of what the team was able to accomplish when you think about constant currency, when you're growing Creative Cloud, Document Cloud, and Experience Cloud greater than 15%. You know, it just continues to show that despite the macroeconomic environment, digital will continue to be a tailwind, and I think we're positioned incredibly well. I just continue to believe that we have amazing resilience in our products, and digital is gonna be important. That was about 2022. I know all of you are more interested in what happens. I do have to start by saying, when you think about a company that is going to celebrate its fortieth anniversary this year, and the fact that we're driving record revenues and, you know, record EPS. It really is a company that has demonstrated that we have the ability to look around the corner, we have the ability to invest in key things. You know, some of the most seminal moments, which I touched on again earlier this morning at the MAX conference, I mean, we invented desktop publishing with things like PostScript, which continues to be the leading product today. We've certainly done revolutionizing work in imaging and artistic expression with Photoshop. Photoshop today remains more relevant than ever before. It's now available on all platforms, and it's the underlying engine that we will use to build other products. More recently, creating and leading the digital marketing category, which we did through the Omniture acquisition, and continuing to drive interesting new business models with SaaS and the move to the cloud. You know, we really feel like we have the opportunity, we have the capital, we have the people to continue to focus on inventing the future. I think if there are two that I'll particularly touch on again, the first is everything that we're doing around the Adobe Experience Platform as well as the applications and how, you know, we have this unmatched opportunity to create real-time personalization at scale, and Adobe Express. We're very optimistic about what Adobe Express will do. It's a massive, expansive universe of creators and communicators who wish to create this task-based content. You know, I think core to our DNA is innovation, and we're gonna continue to focus on that. In each of the presentations, you're gonna see a lot of macro trends that we believe are helping drive our business and our tailwinds to the business. I thought I'd touch on a few of them. We've always talked to you about the content life cycle and how we enable people to create, manage, monetize, mobilize, content. I think one of the things that is really changing with that is not just content, but it's content and applications, and the consumption of applications and prototyping and how you think about it, and the designer-developer workflow. We really believe that that's one of the big new area of changes that we have a unique opportunity to participate in. We've touched on collaboration and how that's gonna be even more central to hybrid work, especially as, you know, the new norm is that not everybody is necessarily in the same place at the same time. I've been spending a lot of time with CEOs around the world and with customers all around the world. What really resonates is this personalized engagement as a mandate for all businesses. It doesn't matter whether you're a B2B business or a B2C business, that's a theme that we're hearing a lot more of, and I think we're uniquely positioned to address that particular opportunity. For me, AI and ML, as a product person, I think making sure that we have the right infrastructure, the right data, the right people to think about models and how you invest it, I believe that the state of AI right now, it does not cut across domains, it does not cut across tasks and domains. I believe that we've been very thoughtful about how AI and ML will continue to unleash tremendous ingenuity and actually enable millions of people to come into our platform. I think these massive trends just underscore how now more than ever before, rich and dynamic digital experiences are gonna shape every aspect of our life across every aspect, whether that's education, work, entertainment, or play. Our mission, which we've shared with you, to change the world through digital experiences, is still at the center, we believe of it all. The one area that we feel like we have even more of a unique opportunity to invest in over the next few years is everything associated with imagining and expressing these ideas. 'Cause we believe that every great experience starts with a spark of imagination, you know, and that can be expressed in more ways. Thinking about the front end of that entire creative process is both, we think, a unique new area of investment for us, as well as a good area of growth for us. I touched on the Creative Cloud and apps that we're thinking a lot more about what it means to deliver these applications that are going to be by definition interactive, because every device is gonna have a screen. I think thinking about that. Personalize and power experiences. As you remember, Adobe was really all about the content creation. We think the play between the creation of this content and the delivery of this content is also an incredibly unique thing, not just from a technology perspective, but also from a route-to-market and go-to-market. I think both Anil and David will touch on how with every new product, our ability to monetize that through the enterprise, field organization that we have is also, we think, a big advantage. At the bottom, what you see is that it really extends a huge set of customers. There isn't a person on the planet that we don't think if they have access to digital, that should be a customer of ours. Whether it's students, whether it's consumers, certainly communicators, creative professional, developers, a big new area of focus for us, and small and medium businesses and enterprises. We feel like this is again one of the areas that's going to drive continued growth for us as a company. One of the things that I wanted to touch on again is reaffirming the three strategic pillars that we have for ourselves as a company. Unleashing creativity, we continue to believe that everybody has a story to tell, and enabling them to tell that story, any media type, any device, in a personalized way, just continues to be a massive opportunity for us. On the accelerating document productivity, we think this is actually gonna see a few more tailwinds with what's happening with, you know, hybrid and people not necessarily being at the same point. This is a business, as you saw in our fiscal 2022 results, we had great performance in the Document Cloud, and we continue to believe that that's gonna be a big area of growth for us. Powering digital businesses, which is a product category that we invented. We just feel like that one is also going to be increased growth and acceleration, and Anil will, I think, touch on what it takes to accelerate that particular businesses. I look at it and I feel like most companies would be pleased to have one growth businesses. We're really fortunate to have three successful businesses that are in the sweet spot of where the world needs technology to continue to play a role. I do want to touch a little on acquisition that we announced, and we think that this is a bold move that underscores Adobe's track record of transformation. Figma is this incredibly rare company that has achieved escape velocity as it relates to product design and targeting an area that was an unsolved problem. They also did some incredible pioneering work as it related to delivering multiplayer technology on the web that allows multiple people to collaborate. They have built this incredible business that I think is enabling the entire modern product design process for a wide spectrum of stakeholders, from designers to product managers and designers. Actually, the majority of those customers are not creative people, they're actually people in the workflow, which I think represents a unique adjacency for us to target, whether it's developers or the other stakeholders in the design process. The three key areas for us in terms of how we think, while it's a great company with a lot of momentum, we can actually accelerate their growth strategy. The first is advancing product design. Product design is all about how do you introduce all of the assets. I think later in the presentation, you're gonna see some examples of how even our Frame.io team uses Creative Cloud in conjunction with Figma to continue to make that a faster process. The second is accelerating collaborative creativity on the web. Every one of our products, as we have added the ability to do asynchronous collaboration with Share, we feel like we can also extend that to do synchronous collaboration, and we believe that the Figma platform will help accelerate the delivery of that on the web. Third, I think we look at it and say, right now there's a confluence of what's happening between creativity and productivity. We approach it with this unique lens of creative expression as the most important part. I think we will have the ability to take what Figma has with FigJam, what Adobe has with Adobe Acrobat, what we have with Express, and create a brand-new platform that enables people to be both creative and productive. We think that this will not only serve the hundreds of millions of customers well, but we think it'll dramatically increase both Adobe and Figma's reach as well as addressable market opportunity. It fits well across our strategic elements because it helps us unleash creativity, it helps us on the accelerating document productivity, and at the end of the day, it's all about delivering these personalized experiences. Zooming back out and you know, just focusing at the end on what we believe will drive the next decade of growth before I hand it over to David. For us, we really believe that Adobe has never been in a better position to drive the next decade of growth. We have a proven ability to create and expand categories that transform markets and will drive long-term growth. We continue to deliver revolutionary technology platforms and services that advance the industry leadership and bolster our competitive advantage. In terms of our expansive product portfolio, we think that's unparalleled and allows us to serve an ever-growing user base as well as a stakeholder universe. The ecosystem that we've developed, whether it's the creative community, whether it's developers, whether it's ISVs and partners, I think enables us to deliver more value and expand our footprint. Finally, we continue to believe that we are maintaining an absolutely world-class financial profile that delivers consistent top and bottom-line growth. Jonathan talked about the over $200 billion addressable market opportunity that we had talked about last year. We're well on our way to expanding that with the new innovative products that we're delivering. As we think about FY 2023 and as you think about the targets for FY 2023, what I wanted to just share is that in all my conversations with CEOs around the world, while digital will continue to be a tailwind, I think most people feel like the macroeconomic situation's gonna be a little bit more uncertain in 2023 than it was in 2022, and we factored that into the targets that we are. My conversations with customers are they continue to want to invest in digital, and whether it's the CEO confidence that has clearly come down a little bit, especially as it relates to what's happening with inflation or the war or thinking about, you know, the potential of an economic downturn, we just feel like we're going to manage the company a little bit differently. We're gonna ruthlessly prioritize like we have. In terms of our guidance, we've probably muted our top-line revenue growth a little bit as a result of the macroeconomic environment, but as you can see, our targets reflect real good profitability. I continue to be incredibly excited about the opportunity ahead of us. I believe that our big advantage within the company is our people. With that, I'll pass it to Gloria to talk about the critical role that she plays within the company, both talking about culture and purpose in enabling our success. Gloria? Thanks, Shantanu. Shantanu just shared with you our strategy, where we've been and where we're headed. What I'm here to share with you today is what I believe is the foundation of our success. Now, Adobe's 40-year track record of innovation, transformation, and continuous reinvention doesn't happen by accident. It's grounded in who we are. We were founded on the belief that people are our greatest asset, and when we combine great people, a purpose-driven culture, and a winning strategy, magic happens. Of course, as we enter into this next chapter of growth, we're having to navigate the new reality that all companies are facing. COVID has fundamentally changed the way we work, and we're competing for talent through the Great Resignation and the Great Regret at the same time. Increasingly, companies are viewed by customers, employees, and stakeholders as extensions of their identity, values, and community. During times like these, our values serve as our North Star. Being genuine, innovative, exceptional, and involved, these values come to life through the amazing talent we're able to attract and retain, and extends to how we support our communities, and more broadly, to how we're changing the world through digital experiences. As a global company, we've been able to succeed in the competition for talent because of our incredible brand and exceptional employee experience and our focus on creating an inclusive and diverse environment. Our award-winning reputation and programs like Global College Internships help us attract a strong talent pipeline. Just as importantly, our most recent survey shows that our employees continue to feel highly engaged. We're grateful for our focus on well-being, especially our global days off, and we continue to focus on career growth, including internal mobility. Over the past year, we've been evolving to a hybrid model that we call team flexibility, where employees can divide their work between the office and home about half the time. As of last week, all leaders have rolled out guidelines for their teams, and while it's still early days, we've already seen a significant increase in office energy, and we're actively piloting, testing, and iterating approaches to new ways of working. Now, whether in person or virtual, we're focused on Adobe for all, because we believe when people feel respected and included, they can be more creative, innovative, and successful. When we have diverse teams, we're more reflective of the customers we serve. Our approach is holistic across the employee experience, starting with pipeline development, like our programs focused on partnering with HBCUs and HSIs, on-ramping women mid-career and veterans outreach, to mitigating bias in job specs and interview processes, to coaching and sponsorship for growth and advancement. Our employees also play an active role in employee networks, peer mentoring, leadership circles, and Adobe for all in action circles. We're proud of the progress we've made. We know that having more diverse leaders creates a virtuous cycle of more role models, advancement, and growth. We're especially pleased with our continued year-over-year increases in women in leadership globally and underrepresented minority leaders in the US. For four straight years, we've maintained global gender pay parity, and in the US, we've affirmed pay parity between URMs and non-URMs for the second year in a row. When it comes to community engagement, we believe everyone has a story to tell. From the emerging filmmakers supported by the Sundance Adobe Fellowship to the hundreds of creators we've supported financially through COVID and the war in Ukraine as part of our creative residency, we are helping people around the world tell their stories. Digital literacy has become an imperative, and we're committed to equipping students and teachers with what they need to succeed. To date, we've put Adobe Express into the hands of over 40 million K-12 students around the world, and we're engaging with college students across more than 50 designated Adobe creative campuses. Our employees globally work together to create change in the communities where we live and work. As a company, we have a history of giving that dates back to our founding, and much of our corporate giving is driven by employee input. For example, the Equity and Advancement Initiative grants go to organizations identified by our employee networks. Local offices vote on the causes that they will steer regional grants to, and individuals donate generously of their volunteer hours and personal donations with corporate matching as well. Last year, in total, we gave over $95 million in donations to over 67,000 organizations worldwide. Our community impact also extends to our own operations. We've committed to achieving a zero carbon footprint and are proud of the progress we're making. We've already achieved our 2025 targets for reduction in scope one, scope two, and business travel emissions. With our continued focus on renewable energy across our major sites, including the completion of our all-electric San Jose headquarters early next year, the first of its kind in Silicon Valley, we're not just on track, but we're ahead of our original 2035 renewable electricity goal, and we plan to meet this by 2025. Our greatest reach is with our technology leadership. As one of the world's most innovative software companies, we're committed to advancing the responsible use of technology for the good of our customers, communities, and society. As you've heard today, we founded the Content Authenticity Initiative to take on the problem of deepfakes. CAI tools, now available in Photoshop, allow content creators to identify themselves and the edits that are made to their images, and displays this information so consumers can decide for themselves what content they should trust. CAI coalition has grown tremendously and includes hardware, software, and media companies all working together to bring more trust to media. You also heard a lot about AI at MAX today. We believe AI has the power to amplify human intelligence and creativity, and we're committed to advancing AI ethics in a responsible and inclusive way. We've worked with industry leaders to create and build a trust in AI framework, and all our AI-powered features go through a standardized ethics review process with a diverse cross-functional committee before they are brought to market. Earlier, I talked about our internal sustainability focus, but our greatest impact is through the reach of our products. Our 3D tools that you saw showcased today allow product catalogs and advertising campaigns to be designed and shot virtually, eliminating the environmental cost of materials, manufacturing, and travel. Estimates show that paper-to-digital workflows powered by Adobe Document Cloud eliminate over 2.5 billion pounds of greenhouse gas per year in the U.S. alone. This is a tremendous global impact. Now, what's there not to love about this slide? I started at Adobe more than 25 years ago, now over half of the lifetime of the company, and I have seen how our people, our purpose, and our DNA of transformation have propelled our success over and over again. At Adobe, our mission is to change the world through digital experiences, and we are transforming lives and industries. I'm incredibly proud of the culture that we've built and the impact that we have, and I'm confident that the strong foundation will continue to drive our success in the coming decade. With that, I'm gonna hand it over to David Wadhwani, President of the Digital Media Business Unit. Thanks, Gloria, and hello, everyone. I hope everyone had a good morning. I really hope you had an opportunity, as Shantanu said, to see the MAX keynote. Scott and his team did what they always do, and they put on an amazing show and rolled out so much innovation. One of the things I said this morning was that I was actually at the very first MAX about 20 years ago, and as you can imagine, in that 20-year period, a lot has changed in the industry. One of the things that stayed constant is the power of the community and the relationship we have with them. They're constantly looking to push the envelope on creating things that surprise us and shock us and get our attention, and to do that, they push us forward. This relationship with the community is not just driving product innovation, but it's also driving the business forward. That's why I'm able to stand here 20 years later and talk about a digital media business that's adding an estimated $1.8 billion of net new ARR, and doing that in a context where the DME business as a whole is adding about 16% of revenue growth, Creative Cloud growing at 14%, really on the strength of the core business, while also starting to benefit from some of the outsized growth we're seeing from the emerging businesses like Stock and Frame and Substance and Express. Document Cloud is growing at 26%, and it's really benefiting from this incredible explosion of demand that we see for PDF-related solutions in the market. While we're very excited about 2022, we're even more excited about the years. As Dan likes to say, "We're still early in this process of the digitization of everything." When you think about that and you put it in the context of where Adobe sits in that transformation, we are in a really amazing position. Our flagship application, so Acrobat and Photoshop and Illustrator, Premiere and After Effects, and new offerings like you saw this morning with Substance extending its line to include modeling, really put us at the forefront of digital documents, design, imaging, photo, video, 3D, and we are the standard for how this digital content is created. In addition to that, we're investing significantly in growing opportunities as well, like Sign and Scan and Frame and Stock, and we're driving more value and more efficiency to our existing customers through those motions. When you add in addition to all the products, you look at the global go-to-market motion we have, we have a really effective digital motion for bottoms-up selling thanks to our data-driven operating model which we've talked a lot about with you all. We've added in recent years much more focus on product-led growth so that we're building this efficient digital go-to-market. We also are marrying that with our global footprint for top-down selling across resellers, phones, mid-market, and enterprise. You put all that together, the breadth of the products and the global footprint that we have gives us incredible diversity as we enter what is looking more and more like an uncertain macroeconomic environment. We're gonna talk both about Creative Cloud and Document Cloud today, but since it's MAX, I thought we'd start by talking about Document Cloud and leave the bulk of the time toward the end to get into the creative business and really share a little bit of what's going on there. On the Document Cloud side, we talked about this last year, 2024 TAM estimate is about $32 billion. We see significant tailwinds here because the demand for PDF has never been greater. We have trillions of PDFs in the world today, and as a result, PDF has become the de facto standard for unstructured data and the foundation of document automation. This is no longer just for enterprises. In fact, 85% of small and medium businesses today say that they're investing in tools to drive productivity. This is driving 40% year-over-year growth in PDF-related searches. Think about that. John and Chuck introduced PDF 30 years ago, and in the last year we've seen a 40% growth in PDF-related searches. This is putting us in an incredible position because 75% of small and micro-businesses say they use Reader and Acrobat. We have the surface to convert all of this, and this becomes a massive top of funnel for us. Converting this funnel is a really big focus for Adobe. We cast a very wide net across targeted for PDF-related intent across all our digital channels. We route that traffic to the best desktop, web, or mobile application that services the need of that intent. We drive quick success, and then we introduce a paid offering. Again, we drive usage of that paid offering and success in that paid offering before introducing to new services like Sign or Share for Review. It's a very productive acquisition engagement and upsell motion for us, where we can get more value to the customer at the time and the moment that they need it. Now, this motion is really the foundation of how we think about the strategy for Document Cloud in four pillars. The first, get Reader and Acrobat everywhere on every device. Second, leverage that footprint to get every single individual and small, medium business using our services like Sign and Sharing through bottoms-up motions. Third, drive top-down sales for mid-market and enterprise. Fourth, embed PDF and Sign into every product and workflow using our APIs. Let's walk through each of these. Let's start with advanced Acrobat as a standard across surfaces. Our mission here, as I said, is to get Reader and Acrobat everywhere across every device. We're doing things like investing in Liquid Mode for the best reading experiences on mobile devices. We're modernizing our journeys so that the discoverability of the features that people are looking for is easier. When they use a feature, we enable them to discover the next best action or the next best feature to drive continued engagement. We're optimizing user success and conversion to paid through that product-led growth motion and the data activities that we do to personalize their product experiences. To put some numbers behind this, we have a very broad funnel. There are over 1 billion searches for PDF online. We take all of that intent, we drive it to the right offering. We get over 100 million, or about 100 million people signing up each year across desktop, web, and mobile, and we're converting them from free usage to paid usage, increasingly versus taking them directly to paid offers. What we're seeing now is that product-led growth motions for the Acrobat business represents over 60% of new paid Acrobat subs in this year. It's a really important shift and transition we're doing, and this sets us up to bring more people into the franchise and take time to really move them forward as they're successful and build the business over the long term. Second, we're proliferating service usage with Acrobat integration. An example of what we've done here is that you may remember we had Adobe Sign mid-market solution, and we had Acrobat solutions. Acrobat in the U.S., for example, Acrobat Pro sold for $15 a month, and Sign small medium business solution sold for $25 a month. We took both of those solutions, we combined them into a single Acrobat Pro solution that sells for $20 a month, and this drives both Sign usage, and it drives ARR benefit to us. Anyone using Acrobat Pro can now create and edit and share and sign, and the results are incredibly positive. We now have over 30 million monthly active users for Sign using it in Acrobat. That's translated to over 50% year-over-year growth for Sign in small, medium businesses. Now we're applying that same learning to other services like Share and Scan. We're very excited about this motion that we've been unlocking over the last couple of years starting to take hold. The third area is accelerate Document Cloud adoption through direct sales. This is our traditional go-to-market motion where we have a very broad footprint. The product teams are delivering enterprise and government requirements like FedRAMP support and advanced analytics, and also integrating our capabilities more into Microsoft and Salesforce and Workday and ServiceNow and, of course, the business we have internally with digital experience as well. As a result, year-over-year customer wins continues to grow, including companies like Duke Energy, U.S. Bank, USAA, USG, Department of State, significant organizations where we're getting a very large footprint of that organization. Last, but certainly not least, we're unlocking business workflows through PDF and Sign API integrations. Here, just as a macro comment, 80% of businesses of all sizes are saying they're looking to increase worker productivity. Companies and software vendors want to integrate Adobe's PDF and Sign capabilities using our APIs, and we've integrated them with low-code and no-code environments, including things like UiPath or Microsoft Power Automate, and this is driving real developer demand. We're seeing strong growth in developer sign-ups. Even more interestingly, we're seeing those developers that do sign up using our APIs a lot more. We're seeing outsized growth in actual transactions, which are up 15x year-over-year. In short, we're really excited about the Document Cloud business. Our strategy here of proliferating Reader and Acrobat across every device, integrating services for more bottoms-up motions for individuals and SMBs, marrying that with a top-down for partnerships, mid-market, and enterprise opportunities, and opening up the platform for first and third-party developers is working incredibly well for us. The strategy is working because businesses of all sizes, enterprises all the way down to microbusinesses, are automating their engagements across desktop, web, and mobile. They're turning to PDF as the platform that they want to do this on, and they look at Adobe as the trusted, secure solution provider for this. We're very excited about Document Cloud. Now as we move from there to Creative Cloud, we're also pretty excited about this business because we're living at a time where content, creativity, and design has never been more valued, where content is fueling the global economy, where digital content consumption is absolutely exploding, and where virtually every business needs a digital presence, where businesses and pros need to be more efficient in how they produce content across imaging, video, 3D design, and more, and where individuals and solopreneurs realize that their dreams and their passions are requiring them to stand out digitally on social media. We're living in a time where creativity is the new productivity and creative expression is a 21st-century skill, and that creates a massive tailwind for us. Here too, the opportunity for significant product-led growth motions really exist. We're taking the learnings from what we've done in Acrobat and applying it more and more to what we're doing in the creative world. We've cast a very wide net capturing digital interest in creative expression across creative pros, across communicators and productivity workers and across consumers. We're routing them to the best application driving quick success, and then driving awareness and cross-sell to more applications and/or upsell to frame and stock in some of our services like that. Here's what we see in this market. As we mentioned last year, we're not updating TAMs this year, but we expect this market to have a $63 billion TAM in 2024 based on the back of a massive user base. 68 million creative pros with more opportunities than they've ever had before, but also unprecedented demands on their time. Nearly 1 billion communicators focused on building audiences online and spending more time than they've ever spent actually creating content, and 4 billion consumers who are increasingly sophisticated with digital expression. Now, here's the thing you need to really understand about these users, especially pros and communicators. They're willing to pay for power and precision, and they're willing to pay for speed and ease. They want both. Sometimes they want to create something that is truly differentiated and unique, and sometimes they want to produce content with volume. We're the only supplier of products out there that they can get both of them in one plan. We're really uniquely positioned for that. Here, too, we're focused on 4 primary strategic drivers. First, continue moving our creative categories forward, design, imaging, photo, video, 3D with our core flagship applications. Second, offering more speed and ease with Adobe Express. Third, integrating Adobe Sensei to help users of our flagship applications and Express be more productive and produce better content. And fourth, wrapping all of this with collaboration workflows that help people coordinate their work with co-editors and with stakeholders. Let's start by looking at the power and precision for every creative category. For those of you who missed the keynote this morning, the team has been incredibly busy. Auto styling, precise selection, photo restoration, speech to text, auto color, 3D model capture. The feature list that we went through on stage was impressive, and that was a fraction of what the teams actually shipped this year. We also introduced new products like Substance 3D Modeler that takes our Substance 3D line and makes it a broader set of capabilities that are targeting people that typically do 2D design and bringing them into the 3D world, really catalyzing this opportunity that we see around this. This is driving continued innovation. We now have the highest monthly active use of our core flagship applications. We've seen increased frequency of use per user, and the result across all of our core applications is really an NPS of greater than 50. We feel really good about the focus and the momentum we're seeing in the core business and application as well. Now, as we look at future of design for everyone, this is where I wanna reiterate something Shantanu said. First of all, we are the largest provider of creative software to communicators, many of whom really want the power and precision of our flagship applications. At the same time, Express has definitely broadened the top of funnel because of the way we've approached this, right? We've removed all barriers to adoption. It's free to get started. It doesn't require a desktop download. It's 100% web and mobile. It doesn't have a learning curve. Sign up to publish and have your first success is a matter of minutes. This fundamentally has changed and enabled us to bring new customers into the franchise. The quality of our templates, the size of our Stock library, over 175 million images, the integration of our fonts, over 20,000 fonts, workflows with our flagship applications, these are the things that differentiate us. The team has been super busy since launch. We've now had over 100 releases in the last 10 months. We have a strong NPS. We have terrific customer stats. We're seeing a lot more people coming in and being very successful in a matter of minutes. We have a massive top-of-funnel opportunity with over 250 million monthly active users in our mobile application. We're just getting started here. We have a huge opportunity to drive and convert this space over time. Next, on to Creative Copilot with Adobe Sensei. We've been adding AI-based features to our products for years, and they've saved incalculable amounts of time and helped our creative pros and communicators produce things that they thought were previously impossible. Things like object detection, Neural Filters, Content-Aware Fill, and remove in Photoshop, frame-by-frame object level detection in our video products, and now design recommendations in Adobe Express. It's been amazing to see what people have done with this. I was just checking with someone. We've had over 1 billion of these features actually used at some point over the last few years. So it's just amazing to see the usage and the benefit that this is getting. Here's the thing. The next frontier here is generative technology. For those of you who are not familiar with it, generative AI can conjure up an image from a simple text description. Imagine a world where you can ask Sensei in Photoshop to add an object to a scene simply by describing what you want, or ask Sensei to give you alternative ideas based on what you've already built. Imagine if you can combine GenTech with Lightroom, so you can ask Sensei in Lightroom to transform night into day, to alter a sunny photograph into a beautiful sunset, move shadows by moving the light, or changing the weather. Imagine what you could do in Adobe Express if you could combine generative technology with our massive font library. You'll be able to create completely new and highly stylized fonts on the fly in a way that makes you and your brand stand out. Instead of talking about this, I want everyone to see this and feel this and experience, and pay attention to not just what the AI is able to do, but pay attention to how it's able to do it in our existing products. Let's take a look. We're incredibly excited about combining the power of Photoshop with the new capabilities of generative AI. This is a true force multiplier for creative expression. In the future, you could select an area in Photoshop and generate new layers from a text prompt. From here, you can select multiple variations until you find the perfect one. Neural layers allow you to move these new objects around and regenerate based on the context of the image. Generative AI can also make existing features like Content-Aware Fill even more magical. You can also use the power of image recognition and AI to make variations from a layer or source image, no prompt required. Finally, you can extrapolate amazing new worlds outside your Photoshop canvas without painting. Because you're in Photoshop, you can take your images the last mile with all of your favorite tools. In Lightroom, you can use generative AI to help you edit your photographs in completely new ways. Using AI, you can change your photo from day to night and back again. If you are looking to add the perfect sky, we can give you multiple variations and easily let you replace it. You can even change shadows and other details that would have taken hours to do before. Combining this new technology with the amazing capabilities already in Lightroom, like presets, is a game changer for photographic editing. With new capabilities in the crop tool, you might be able to extend your scene to guarantee you capture that perfect image. We are working with neural effects for text inside of Adobe Express, which allows us to take the power of Adobe Fonts and combine it with the power of generative AI to unlock new creative capabilities. I can select from multiple variations and increase the strength to get more of a generative effect, or reduce the strength to have the AI adhere more closely to the font metrics. Now, I'm going to create different prompts for each piece of text on the screen. You'll notice the text changing as I type out orchid flower petals. Typing on a different prompt, like colorful dripping paint, gives me completely different results. Typing out sake bottles gives me an abstract font effect. The text remains editable, so I can change it and re-render the effect easily. The effects also change based on the color of the font, and changing the underlying font face gives me a completely different result each time. You can clap for that. I know you guys are hard to please, but come on, sake bottle fonts. You know, how many investor days have you gone to with sake bottle fonts? This stuff is incredible. It really is incredible. But it also provides a business opportunity for us that I want you all to sort of take time to internalize. Adding generative technology to our products will make our existing customers more productive. But it will also allow us to make our products approachable to more users because of the way that generative technology gets integrated and the easier ways we can sort of expose these features to folks. It really has the opportunity to expand our core franchise as it stands today. The fourth pillar we wanted to touch on here is collaboration and Share for Review with co-editing workflows. Before jumping into this, there has been some confusion here, so I want to take the time to clear this up for folks. There are two ways people are collaborating today. The first is Share for Review. It's how an individual creative sends content to stakeholders for review and feedback. It's implicitly asynchronous, and it's zero friction for stakeholders as they comment and make comments and assertions on the web. For creators, it's great because they get all of that feedback directly integrated into their Creative Cloud applications. It basically replaces all the confusing and out-of-sync email-based workflows, and is a much more integrated way of gathering stakeholder feedback. The second type of collaboration is really about teams of editors and stakeholders. It's all about accessing a single source of truth in the cloud, where you can have multiple editors and stakeholders working on things synchronously. You can give people different permissions on what they can have access to and what they can do. Share for Review is better for some creators and some use cases, and real-time co-editing is better for other teams of creators and other use cases. We've been working very hard at Adobe around Share for Review. Scott showed a number of things this morning on that. Our acquisition of Figma is significantly gonna accelerate our ability to make real-time co-editing a reality across our core creative applications, and we'll talk about both of these in a minute. As it relates to Share for Review, we started our journey here with the acquisition of Frame.io about a year ago. Since then, we've integrated it into Premiere and After Effects, and integrated Frame stakeholder feedback directly into the timeline of these video applications. It makes it much easier for editors to get feedback and act on that feedback that's coming in from the stakeholders. Frame continues to do incredibly well with stakeholder engagement continuing to increase 16-to-1. For every one editor there is, they're working with 16 reviewers that are participating in that process. Deal sizes are getting larger, and the business continues to grow and accelerate. By the way, the 16-to-1 also creates a top-of-funnel where we can access those 16 users and give them an opportunity to learn about Adobe products that they can participate in and use as well. Today, we announced that we're broadening this capability from video, and we're also enabling Share for Review capabilities in our imaging and design products as well. We're very excited about where this can go. When you add all this up, we have Creative Cloud creating the world's best creative apps with power and precision. We have Adobe Express providing audience expansion with speed and ease. We have Sensei for higher production and less effort for Creative Cloud and Adobe Express. We have Share for Review with huge productivity benefits because it streamlines relationships with shareholders. We're really excited about this innovation that's coming in, and we're really excited about the impact it's having on the business. We also wanted to give you a bit more data, so that you all have a sense of how the business is performing, because this has been a bit of request that we've had from you over the last few quarters. First, our offering tiers have remained relatively steady over the years, where individuals and business plans are driving roughly half of our net new ARR each. This has been consistent and constant for us. The second is we're actively working to grow our footprint with communicators and consumers and maximizing new user acquisition by onboarding them to our introductory offers like Single Apps and Adobe Express. Put another way, we're prioritizing user acquisition and growth and longer term ARR over short-term maximization. As a result, Single App contributions to net new ARR continue to grow. Third, we execute programs to drive upsell to higher value plans or additional services, which represent a meaningful part of our net new ARR. The upsell motion is working, but it's really important to recognize that a significant majority of our growth continues to come from new paid user acquisition. In fact, if we take a look, we added more new paid commercial subscriptions in FY 2022 than ever before. New customer adds continues to be a very important part of our business. Lastly, it's great to see our new emerging products like Frame, Substance, Stock, and Express continuing to produce more and more for us. At the same time, the business is still driven on the strength of the core flagship applications because these new businesses are still early in their journey, and we continue to attract new users to the core flagship applications. To double-click really quickly on the emerging businesses, many of them have come to us through acquisitions. I think we've done a pretty good job accelerating these businesses. If you look at Behance, from the time we acquired it to where it is now, membership growth has gone up 30x. If we look at Adobe Stock, from the time we acquired it to where it is now, the CAGR has been 60%, which is far better than anyone else in the industry. If we look at Substance from the time we acquired the foundations of that to where we are now, we're at 80% CAGR and approaching $100 million in ARR, and we're just getting started here, as you saw this morning. In Frame.io, we're just one year in, but the business is growing, and deal sizes continue to grow as well. We're really putting that same playbook in terms of how we onboard Frame.io into the business as well. In summary, we feel great about the long-term prospects of this business. We're growing Creative Cloud subscriptions across all our segments. Every segment is growing in terms of new subscriber in terms of total subscriptions. We're providing new value to creative pros in Creative Cloud and through new offers like Frame, Substance, and Stock. We're accelerating acquisition of communicators with single apps. We're attracting new audiences with Express and our new freemium model there. Overall, very happy with how the business is going. While we're really excited about our plans, we think that the acquisition of Figma is one of those core transformational opportunities for us. As a reminder, Figma has two core products. The first is FigJam, for brainstorming and ideation, and the second is Figma Design for interactive product design. Both products are nice adjacencies to our TAM. Figma estimates it at about $16 billion of TAM. We wanna show you a bit about Figma 'cause there's been a lot of questions about how Figma works and what it is. One of our own teams, as Shantanu mentioned at the beginning, Frame.io, uses Figma for all of their product design work. We asked the Frame.io team, who are avid Figma customers, users as we talked about, to show you how they use Figma and Creative Cloud to build their latest product onboarding experience. Let's take a look at that video, and then I'll come back, and we'll talk a little bit more about Figma. We recently built a new customer product experience for Frame.io, which took advantage of the different capabilities of FigJam, Figma Design, and Adobe Creative Cloud to bring the interactive website to life. We started in FigJam, a free-form creative space where teams come together to share and outline ideas. We visually sketched the site structure and wireframe basic concepts, which replaced our need to use separate brainstorming tools. Next, we moved into visual design. The Frame.io homepage is highly immersive and relies on gorgeous photography and animation to bring the product experience to life. Figma is where typography, color, layout, images, and videos all come together in the infinite canvas. Creative assets are critical to complete the product design and are created and edited using Adobe's powerful and precise creative tools like Photoshop, Illustrator, and After Effects. For example, this immersive moment was created in Adobe After Effects. We then import the rendered asset into Figma, where it's inserted into the mock-up and assembled with other creative assets. The same goes for photography. Here, for example, the original photo looks like this. We then do screen replacement, color correction, and photo retouching that can only be done in Photoshop. The end result gets imported into Figma and assembled with other assets. We had over a dozen designers working on this project at any given time, all in different locations. Each designer brought a special skill, and we were able to work together on the same Figma document in real time. Because Figma is web-based and multiplayer, the design process stays collaborative throughout, critical in an increasingly distributed world. Once everyone is happy with the design, we moved into the final phase, prototyping. Prototyping is how we make our static screen design concepts interactive. Here is a Figma prototype of the Frame.io homepage. We were able to experience and test our designs more closely to their final form, avoiding expensive mistakes down the road. These prototypes are then shared and signed off on by all stakeholders before we hand it off to developers to start coding the product. Our developers are not only an integral part of our product design process from the beginning, but they also continue using Figma during development. Figma serves as their architectural blueprint with all the measurements and specifications needed to build. That's a quick overview of how we ideated, designed, prototyped, and built a highly interactive product using Figma and Adobe Creative Cloud. A better sense of what Figma is capable of doing, and we thought no one better to talk about that than Dylan Field, Figma's Co-founder and CEO. Dylan, maybe give everyone a quick update on where things are. Thank you, David. Yeah. Hi, everybody. It's great to be here. A huge thank you to the Adobe team for having me. Ten years ago, my co-founder, Evan, and I left Brown University to start Figma. The advancements in a technology called WebGL, which is the ability to use the GPU in your computer in the browser, made it possible for the first time to render high-quality graphics in a browser-based setting. We built Figma to bring the ease and the efficiency of Google Docs to product design. In doing so, we made a big bet on the power of the browser. Building in the browser was a challenge to the identity and the working patterns of many designers around the world. Before Figma, many designers worked in silos. Asking them to take a leap and try this new way of working was, to put it mildly, controversial. Some designers told us that if Figma was the future of design, they were changing careers. As people started to use the product, design in it, collaborate in it, they saw the power of the browser firsthand. It was fun to be in the file at the same time together. It was also faster, and it was more efficient. It made the design process easier for anyone, anywhere to participate. Designers, engineers, product managers, marketers, everyone. Today, two-thirds of the Figma users are non-designers. As we were building Figma, the multi-decade shift from physical economy to a digital economy continued and also accelerated. Design and digital products are now the center of our world and the center of an end-to-end product development process. We're building Figma to serve that full workflow, idea to design to code and production. This is why we launched our second product, FigJam, last year. For the earliest stages of the product development process, we're now working on ways to bring design and code closer together. Figma's vision is to make design accessible to everyone, and I think we barely scratched the surface of that. That's part of why I'm so excited about what we can do together with Adobe and the future of what we can build. Great. Thank you, Dylan. Don't go anywhere. Oh. Dylan and I have spent a lot of time over the last few months, as you can imagine. Just as a reminder, the deal's not closed, so Dylan will not be joining us for Q&A at the end of this. However, I will ask Dylan a few questions just so that you get a sense of some of the things that we've been discussing. First of all, you know, independent of Adobe, you know, you've got a pretty rich roadmap ahead. Congratulations on the success. What's next? Where do you go as part of your core strategy? Thank you. As discussed, two-thirds of our users are non-designers, and a substantial portion of those are developers. As we think about the entire product journey, of starting with ideation, brainstorming, diagramming in FigJam, and going to Figma with design, next step of that is design to code. How do designers and engineers collaborate better? As we focus more on developers, I think you'll see a lot more coming soon there. Yeah, that's a very exciting and obviously a very large opportunity for you. The other thing we talked about and we spent a lot of time thinking through is, as Figma is going after product design and as Adobe has all of these incredible products for the different categories that we serve, what does this world look like, and how can Adobe accelerate product design and the vision for how you remove barriers in a way that you wouldn't have been able to do as a standalone company? Yeah, absolutely. There's so much that's part of the product design process, and we couldn't be more excited to be able to utilize more of Adobe's capabilities and also people. The talent at Adobe is immense, around everything from imaging to vector illustration to video to 3D. You know, the keynote earlier was just absolutely inspiring, and there's so much we can do together to make that product design and development process better. One of the things we got really excited about as we went through this process was about expanding this beyond accelerating what could happen in product design. We also wanted to think a little bit about if we took a step back and you took the technology that we have, as you've seen starting to bring that to the web, and you took the Figma platform for creative co-editing, what could happen together with that. Maybe share a little bit about why we got so excited about that as we were spending time thinking about this deal. Absolutely. I mean, again, those capabilities, imaging, vector, video, 3D and more, not only could be integrated into the Figma platform to address the product design process, but also we can start to unlock those capabilities for creatives as well in doing so in a web-based and collaboration-first way. If we can do that properly, I think we expand the access not only to design, but to creativity. I think there's a lot of vision alignment we have around making design and creativity, accessible to everyone. Yeah. It gives us a really interesting canvas to reimagine what the future of this industry could even look like. Last, but certainly not least, the other thing that Dylan and I spent a lot of time talking about through this process was this idea that creativity is the new productivity, right? We're coming at it from slightly different perspectives. We were doing this with Adobe Express. You started to look at this and start to do that with FigJam. Maybe talk a little bit about FigJam and how these things can come together to really reshape this idea of creativity and productivity. Sure. FigJam is at the start of the process, and as part of that, we're trying to figure out how do we bring as many people as possible into that product design process. Design is really for everyone in the organization now. It's not just for product designers, engineers, product managers, but people that are actually outside those functions as well. We're trying to figure out how do we make it so people can run meetings better with FigJam? How do we make it so that they can facilitate these conversations? As we've done that, we've seen FigJam's footprint grow way outside of the traditional people that are touching that product design life cycle. Now as we look at Figma, we actually see that 5% of the files created in Figma are slides and presentations. We think there's enormous opportunity, like you said earlier, creativity is the new productivity, to try to think about and explore what we can do there together. I couldn't be more excited. Yeah. Thank you, Dylan. Thank you, David. Appreciate it. All right, so we've covered a lot today in this section. Let's take a quick step back. Document Cloud, Creative Cloud, Adobe Express, really an amazing amount of innovation happening here. Large markets, billions of users, $95 billion TAM when you add it all up together. Amazing innovation as we showed this morning and expressed some of the stuff here. We also have very strong fundamentals. I hope some of the data we shared with you today starts to give you a sense of that. We have, you know, incredible growth in terms of new users. We have services being attached as people are using our products. We have emerging products that are starting to express more and more of the opportunity going forward in any given year. Going forward, we continue to invest in our product-led growth motions. What we saw and what we've seen the success with Document Cloud, we're applying that to the Creative Cloud motions now that we have Adobe Express and more web-based capabilities there. We are deepening our integration with our work with Anil's digital experience products and driving that idea of the content supply chain. Things like Adobe Express connected to some of the AEM products can really be game changers for how people want to work together. We're optimizing offerings and journeys across our product offerings, in particular with the creative business. As we've broadened the surface area with Express and other applications, we no longer need to think about pricing and packaging and offering and value doing double duty. The same thing for pros and the same thing for consumers. We have the ability and the opportunity to start to really optimize the value to the individual audiences that are using it. Last, but certainly not least, we're accelerating momentum by really continuing to push and drive on new user acquisition through things like Adobe Express. You put all that together, and we have a pretty darn healthy business with a really interesting opportunity for the decade ahead. You add something like Figma to the mix, and we're in a really transformational moment for Adobe. Thank you for the time. We are going to take a five-minute break. Use the restrooms if you need, or just mingle, and then be back here in five minutes, and we'll continue from there. Thank you. Tonight, I'm gonna have myself a real good time. I feel alive. Don't stop me now. Don't stop me. 'Cause I'm having a good time, having a good time. Shooting through the sky like a tiger defying the laws of gravity. Admiration time passing by like Lady Godiva. I'm gonna go, go. There's no stopping me. I'm burning through the sky, yeah. 200 degrees. That's why they call me Mister Fahrenheit. I'm traveling at the speed of light. I wanna make a supersonic man out of you. Don't stop me now. I'm having such a good time. I'm having a ball. Don't stop. You might call yourselves marketers, data wranglers, digital strategists, technologists, but we are more than that. We're more than buzzwords and checked boxes. We're customer fanatics and relationship builders. We believe that everyone is creative. We just tell our stories with data and customer journeys and results. We walk in our customers' shoes, not just the first mile, but also the last. Because customers aren't just a number. They're people like us, people who aren't just buying products. They're buying experiences. They're buying a car that makes them feel safe, software that makes them feel connected. When done right, people show their love. Maybe too much sometimes. Of course, creating loyalty like this isn't easy. Actually, it's hard. Sometimes we're winners or losers, but always let's-try-this-againers. When it works, the late nights are worth it, especially the moments our customers remember. Let's make those moments matter. Let's ask questions. How can we make this better, more personal? Let's make change faster and be the force that unites us all, not because we're the same, but because we are unique. Let's make unique happen because it all comes down to one moment, the moment they're having right now. Let's make that one count. We are experience makers. There we go. File too big. What? Crazy business as usual. As I held the door. Held the door. What a sight walked in. La, da, da. As two hearts started dancing. A new story begins. Oh, my poor soul starts flying like a cannonball. What goes up must come down. Take my advice and run while you still can. Got my love jump-started. The only one I want is you. 1, 2, 3. Woocha. Woocha! I just love having to check in online, and having to do it again on the mobile app, and having to do it again in person. Are there any other ways that I have to check in? No, but we're working on it. Excuse me. Everyone, if you would go ahead and take your seats, we're gonna pick back up with the show where we left off. Every five-minute break turns into an eight-minute break. It's just how it goes. Okay, next up is Anil Chakravarthy, and he's gonna talk about Adobe's digital experience, business strategy, and growth drivers. Anil. Okay, perfect. Thank you, John. Thank you, Jonathan. Welcome back, everybody, and hello everyone. Good afternoon. I'm here to talk about our digital experience business. Share a little bit with you my excitement about our momentum, our strategy, and the growth opportunity that we have in the digital experience business. Let me dive right in and talk about the momentum we're seeing in the Adobe Experience Cloud business. If you just take a look at the right, annual revenue. In the last three years, we've grown from $2.8 billion in fiscal year 2019, estimated to finish this year just north of $4.4 billion. If you look underneath that, what's driving that growth, it's both deepening our engagement with our current customers as well as acquiring a lot of new customers, and I'll talk about that. Take a look at the growing customer engagement we have. Just a few statistics. If you take a look at the book of business, and that's a metric that we use, it's the annual subscription value. It's a metric we use to understand our share of wallet with our customers. If you take the top 100 customers, for example, the average book of business has nearly doubled from $8 million in FY 2019 to at the end of Q3 this year to $15 million per customer in average book of business. If you take a look at the top 25 customers, almost the same pattern. Again, doubling from nearly $15 million to $29 million. The largest customers that we have are making a huge investment with us, and really we're becoming strategic partners. The combined total contract value of our top 10 customers was $1.1 billion. Across the portfolio, we're seeing excellent expansion as well as retention. The net dollar retention rate for our top 500 customers is 120%. Great examples of the engagement that we are seeing with our customers as well as the overall growth of the business I'll talk more about. It's been great to be back on the road. In addition to a phenomenal conference like this, we've had executive forums. We just hosted a forum in the U.K., and then hosted a couple of sessions here in the U.S. It's great to see customers in person and get back into the rhythm of doing business with them. Some of the trends that we are hearing from them in terms of what the common themes are. First of all, coming through the pandemic, virtually every customer has the basics of digital experience in place, digital marketing, online commerce, things like that. Every customer that we talk to is looking at the next level. How do they personalize those customer experiences across the entire journey, the kind of journey that David talked about when he talked about our data-driven operating model, all the way from discovering a brand to trying the products, using the products, renewing the products, the entire journey. That's what customers are all talking about. How do I personalize this so that I can be more differentiated, and I can have better and deeper relationships with and deeper engagement with our customers? Every customer is struggling with the fragmentation and silos of data and content across their different systems, maybe the work that they're doing with their business partners and their channels, and how to get a unified architecture and how to get a single view that helps them take action in real time. From a business perspective, as we go into the current macro environment, they're still focused on top-line growth. Obviously, everybody's got to keep growing. They're focused on that, but they're also more cost-conscious, and they're looking at how do I look closely at the ROI of these investments? How do I get value out of what I've already invested in? Now I want to make sure that I am carefully scrutinizing the investments that I'm making going forward. The other big thing that we are seeing is as they look at the multiple point providers they have had or they've been looking at in this space of customer experience, digital marketing, they've one, it's leading to fragmentation. Two, they're just concerned about the viability of some of these providers, and so they're looking to a strategic digital partner, a partner like Adobe, who can really help them be the long-term partner of choice. What we're really focused on is being that long-term partner for customer experience management. This is a category that we expanded and reinvented five years ago, and it's proved to be mission-critical across industries. Just to give you a couple of examples, if you look at financial services, almost every bank, they've had great adoption of their digital offerings, of their mobile apps. They're really looking at how do they expand that and make that a core part of their digital transformation and their business transformation as they reduce their reliance on branches, for example, as they want to do more self-service, enable more self-service, deeper engagement with their customers. That's a major area of investment. Healthcare has been a little slow in making these investments, but they are catching up fast, and especially with our products becoming HIPAA ready, they are looking at every healthcare company is looking at end-to-end patient experience, end-to-end member experience, and that's leading to significant investments in Customer Experience Management. Media and entertainment. It's always been one of our strongest verticals, and it's growing rapidly. The growth in digital streaming across sports, for example, fan engagement, deep fan engagement. Shantanu mentioned a couple of examples. I'll talk about Real Madrid in a second. Excellent examples of customer experience management being at the heart of digital transformation. Travel and hospitality, again, historically one of our strongest verticals, coming back strong after COVID. When we look across verticals, B2B, B2C, new business models like direct-to-consumer, that's what makes this a big market. As we mentioned, this is a $110 billion TAM in 2024, and we see a lot of opportunity to continue our growth here. At the heart of our strategy for customer experience management is the Adobe Experience Platform. That is what is powering across these verticals, the next generation of customer experience management. What AEP is, it's a cloud-based platform that in real-time helps any company, B2B, B2C company, for millions of consumers or hundreds of thousands of business buyers, really assemble that single view, that unified profile of their customers, and then helps them act on it. What are some of the key things that really differentiate this? We were one of the first ones to invest in it. We launched it in 2019, as both Shantanu and Jonathan mentioned. We were early to market. We saw around the corner and knew what was coming. Scale. We're now 29 trillion segment evaluations per day, and I'll talk a little bit about what that means. That's the basis of personalization, is how to calculate segments and being able to do that in real time. Our response time in less than 250 milliseconds for most customers. That's super important. Data governance, another critical part, especially when you look at verticals like financial services or healthcare or when you look at international markets like Europe. The use of AI and ML, our Adobe Sensei, to drive next best action, next best offer, predictive insights. These are all critical parts of the Adobe Experience Platform, and bringing all of that together is a very complex engineering feat. That's what we have done, and we're now at scale, and we believe we have clear product and category leadership in this area. You see that in the business results. You know, in 2020 our book of business for Adobe Experience and the three apps that we have constructed natively on this, which is the CDP, the Real-Time Customer Data Platform, the Adobe Journey Optimizer, and the Customer Journey Analytics, that AEP and apps was a $70 million book of business in 2020, and we estimate that exiting this year, it'll be at $450 million and growing. Huge growth driven by the Adobe Experience Platform, and it's had a halo effect across our portfolio. What the AEP enables you to do uniquely is this idea of personalization at scale. We've been doing this across our own Adobe business. What does this really mean? Well, in an ideal world, you want to do one-on-one personalization. Every single consumer, even if you're millions of consumers, you know exactly what you want to per-personalize to them. That's hard to do for most companies. Today, what most companies actually do is they would love to just define fine-grained segments, actionable customer segments that help you create a single view across the across your enterprise. Remember, these could be customers that you don't know anything about initially. When they come in as a prospect, they may just be an identity you really don't know. They've just come to your website. All the way to customers that you know more about, and then they are well deeper into the funnel. Being able to create that single view, being able to drive acquisition in a very efficient manner through digital channels. Once you know who the customer is, once you know what actions they have taken, once you know their sentiment, once you know what stage of the journey they're in, being able to deliver those engaging, personalized campaigns, and then from all of that, deriving insights across the customer journey so that you can improve your segmentation, and you can improve your value, and you can improve the offers that you offer to these customers. That's what personalizations at scale means. We have a lot of experience with ourselves at Adobe at doing this, and now we're bringing that through AEP and the apps on AEP to our customers. Let me give you a couple of examples. U.S. Bank is a great example of this. We have so many good examples to choose from. I picked a couple from the verticals that we just talked about. U.S. Bank is a customer that's been deepening their customer engagement. Again, they've had excellent adoption of their digital properties like their website and their mobile apps. What they're really using Adobe Experience Platform to do is now provide a personalized experience at scale across these consumers by linking that to all of their backend systems as well, so that they know exactly what stage of the journey every customer is in and what next best action or offer they could make them. For example, if they have customers who have products like checking accounts, savings accounts, so on, who is the person they would offer a home equity line of credit to? So that's an example of a personalized segment that they are driving. At the bottom right, you have an example like Real Madrid. Real Madrid, as you all know, is a very popular football club in Europe. They have extremely rabid fans, basically. They're trying to take those fans and make the fan experience a very personalized experience, whether the fans are in the stadium, and they're building a brand-new stadium, massive new stadium that while they're continuing to play in it or online. Some examples of that personalization at scale is you obviously have a personalized schedule for these fans, but when they come into the stadium for food and beverage, for example, or for merchandise, how to make those kinds of personalized offers that really make the fans feel special. That's an example of personalization at scale. When we think about our strategy and how it maps to what Shantanu talked about, we map really well across all three of these areas. We have four key categories of our product lines, data insights and audiences, content and commerce, customer journeys, marketing workflow, and all of these applications are tied into this common platform, the Adobe Experience Platform. All of them tie to one or more of these key areas. As an example, the content supply chain that David mentioned is one of those offerings that cut across these areas. The idea of the content supply chain is today, if you are a brand, the way in which content is produced has changed dramatically. You still have the traditional ways of producing content with in-house creative teams, through agencies and so on. In addition, you have a lot of this new content being generated by third-party content, maybe by your users through TikTok, et cetera, maybe soon through things like this generative AI that David talked about, lots of different ways of producing content. Then the users of content are also exploding. When you're thinking about these personalized campaigns, these are campaigns that go from concept to execution to analysis to new insights within a couple of weeks. You need content to fuel these campaigns because you got to have the right content at the right channel at the right time in order to deliver a personalized campaign. That's the example of what we talk about as the content supply chain. We are really uniquely positioned because we cut across the Creative Cloud, we cut across the Experience Cloud. By bringing that together, we can provide the foundation to deliver these personalized campaigns. At the heart of our strategy, five pillars. First, that laser focus on customer experience management. If you think of some of the competitors we have, right? We are now a $4.4 billion-plus business really focused on innovation in this area. We're competing with companies, some of the larger companies we compete, 17 clouds, trying to automate every business process. They just don't have the focus that we do. That's a big advantage that we have. Second, building this real-time customer experience platform and starting that investment many years ago, five years ago, has given us a unique advantage in the market, clear product and category leadership. As I talk to customers, I actually talked to a customer who went through a full RFP and picked us as the strategic CDP of choice. They told me how they think of the market. I said, "It's a cluttered market. How did you pick us?" They said, "Look, first of all, there's a lot of players in the market who just have a story. They don't even have a real product. And how you can tell is when you look for operational statistics, like I shared with you on how many segment evaluations can be done or how many profiles they have or how many customers they have, they really can't give you many numbers." That's an example, sort of the second stage, people who have a product but don't really have operational maturity. The third stage is really companies in the CDP market who can actually give you business metrics that you can understand, like revenue, for example, or the book of business. There are very few companies who can talk about that. That's why we believe that we're in a very advantageous position in the market in terms of the real-time customer experience platform. We have tied that to all of the applications that we have across these four categories, data insights and audiences, content and commerce, marketing workflow, customer journeys. As a result, all of our categories are growing. Fourth pillar of our strategy is the leverage of the Adobe brand and the global presence. Adobe is our customer zero. That DDOM that David talked about that goes across, you know, discover, try, buy, use, and renew for all of our digital media business, we underpin that through the use of our own digital experience technologies. That gives us a unique advantage to really understand what a business at scale, a digital business at scale operates like, and then we can bring that, the benefit of that experience to all of our other customers. The fifth pillar is this scaled enterprise go-to-market, which we then take to market across Adobe. I run the worldwide field organization, and then we take to our largest customers, both the digital experience products as well as the digital media products. Let me talk a little bit more about our go-to-market strategy. Four key parts of the strategy. First, we are a trusted partner to the C-suite. Shantanu mentioned it's not just the chief marketing officers, it's increasingly the chief digital officers, the chief information officers. We are the trusted partner because they know that we have that laser focus on this category, and we have the experience of taking them to scale. We also do a lot of work with what we call transformational accounts. These are companies that are betting big on digital transformation, on business transformation, have the experience of working with Adobe, and want to have us as the strategic partner for the long term. I'll give you a couple of examples of those. Third key aspect is continuing to grow new logos. In addition to deepening our relationships with customers like we talked about, how to continue our new logo growth, and that comes through customer value realization and expansion of our solutions. Two examples of transformational accounts. This is a well-known telco company. We actually started our relationship in 2016. It was a pretty. If you think of the relationship, Adobe Analytics, Adobe Experience Manager, this was around web analytics, web content management, basic personalization using Adobe Target. This was about a $4.5 million book of business with that customer at that time. Now you think over the last six years, in multiple tranches, we've grown that base so they're using our customer journey products like Adobe Campaign. They added Adobe Experience Platform a couple of years ago, and the apps around the Adobe Experience Platform. More recently, they've adopted experience-driven commerce as well as marketing workflow. Today, our book of business with them annually is over $45 million. Another example, this one from healthcare. As I mentioned, healthcare companies were a little slow to invest, but they're really caught up now, and they are investing aggressively. This is a major healthcare company that in 2019 had the first relationship with us, again, starting with web analytics, content management through Adobe Experience Manager. Then did a major expansion with the entire content suite, and then a second major expansion where they're pretty much using our entire portfolio, going from about $3.7 million annual business to over $48 million annual book of business right now. By the way, this company is also one of the major, biggest customers we have for our Document Cloud as well with Adobe Sign. Gives you a sense of the advantage that we have of working together. Let's talk now about customer growth. If you look at our total customer base for digital experience, we have about 11,500 customers today that we have grown both organically and inorganically over the last 10 years. 10 years ago, we had roughly about 2,000 customers. With organic growth, as well as the customers that we got through the acquisitions of companies like Neolane, Magento, Marketo, and Workfront, we now have this base of 11,500 customers. As I mentioned, we think of them as big account, transformational accounts, industry-led accounts. We're organized by vertical industry. We understand their business problem, and we have named account managers and teams that serve those accounts. Solution-led accounts, which are looking for one of these solution categories. They want to start somewhere, get value out of that, and expand from there. That's how we go to market across these three areas. I talked about a few of these transformational-led accounts. We believe that we have a massive opportunity based on this, on this, to grow this space. If you go to the next chart. There you go. Thank you. If you look at the overall set of these 11,500 customers, only 10% or so of these customers have over four Adobe Digital Experience products. We've already been successful at growing that number. As of the end of Q3 of this year, we're at 26% year-over-year growth on the number of customers who have 4+ Adobe Experience Cloud products. We see a much larger book of business from them when they go to that stage. Our average annual book of business for customers who have over four Adobe Experience Cloud products is $2.5 million. Obviously, not all of the 11,500 customers are going to get to the $2.5 million level, but we think several thousand of our customers can grow to that level. The reason is we have a proven track record of taking customers who adopt one or a couple of solutions or a couple of products from us, helping them realize value, and then that gives them the trust in Adobe and the confidence to grow further. This is a chart going back 10 years, and this is about all the customers that we have other than some of the customers who came to us through acquisitions, because we have clean data going back 10 years. What it shows you is over that ten-year period, a typical pattern is you have a cohort where in the first year, as they're implementing their solutions, at the end of the first full year of expansion, the subscription revenue we get is 1.3 times the first full year of subscription revenue. They're just implementing, they're starting to go up the hockey stick. At the end of five years, we get a 3.7x multiple on the first-year revenue, and when the cohort has been here for a full eight years for us with expansion, we have an 8 times multiple on the subscription revenue compared to the first full year. This is inclusive of attrition. You see how we calculate these numbers. We make sure that we have a healthy track record of growing them. Once they go through adoption, they have the trust in Adobe, and we become a strategic partner for growth. That's what gives us the confidence that we can keep continuing to grow. The last key part of the go-to-market strategy is our expansive ecosystem. Shantanu talked about this. We have great relationships across both independent software vendors who are building on top of our platform. The AEP is an open platform in terms of data, in terms of APIs. As a result, we have over 400 partner integrations right now into AEP. We also have a huge number of system integrator partners, agencies, who work with us, and just for AEP, we have over 100 SI partners today. To wrap up, I'm super excited about this business. We created this market with digital marketing. If you look at with the acquisition of Omniture and what we did after that, we became the leaders in web analytics, web content management, and by 2016, we had grown to a $1.6 billion business. We then saw around the corner and said, "Hey, we can expand this much further. It can go from digital marketing, and we can look at the entire space of Customer Experience Management." By the way, as we did that, digital marketing continued to grow because there's obviously lots of companies who are still adopting those products. That led us to these four key categories we talked about. With the addition of the Adobe Experience Platform and the key native apps that we built on top of the Adobe Experience Platform, we're now at a $4.4 billion business. I believe we are on the cusp of another major growth through personalization at scale. When you think of what we have through the personalization at scale, when you think of all of these digital products that we could potentially have that could further accelerate this journey, when you think of the content supply chain that we're really uniquely qualified to bring to market, I am very excited about what we can potentially do over the next few years. Just to wrap up, we have a lot of momentum in this business. We have a massive growth opportunity, a $110 billion TAM. We have a very clear, differentiated platform-led strategy. We have the product and category leadership to drive it, and we have the path for sustained profitable growth. Thanks for being here, listening to me this afternoon. Let me pull up Dan Durn to talk about our financials. Nice job. Thanks, Anil. It's great to see everyone here in the room today. Before I jump into the presentation, I want to share a few reflections about my first year journey at Adobe. Last year, I talked with you about the digitization of everything, and David mentioned it in his presentation about how digital content and data are going to be the fuel that drives the global economy. The changes we see in technology, the changes we see happening right now, and the changes we see in the next decade or two, they're going to define the rest of the century, much like oil did for the last hundred years. Digital content and data are going to be the fuel of economic growth going forward. Having spent a year at the company, I'm even more convinced of these trends today than I was a year ago, and I believe Adobe is better positioned than any other company to be the digital enabler of the world. Over the last year, I've gained a significant appreciation for the sophistication of the technology that Adobe is delivering and the complexity of the problems that we're solving for our customers. You saw many of them on display earlier this morning if you caught the keynote. We're talking about power, precision, pixel-level perfection, AI, machine learning, real-time CDP, personalization at scale, and the need for integrated solutions to truly deliver on scalability. I'm also excited about a number of areas where I feel like I've got an opportunity to help the company achieve its goals by supporting the execution engine of Adobe, how we execute on our roadmaps, how we implement product-led growth to complement marketing-led growth, how we drive integration and value maximization of acquisitions. Ultimately, I'm excited to have an opportunity to partner with Shantanu and the team to continue the company's market leadership and drive growth in the next decade ahead. Before we look forward, I want to take a minute, take a look at what Adobe has uniquely accomplished over the last decade to achieve the financial profile that the company has today. In 2012, Adobe made a historic transition. It went from a leading box software business to a subscription model, and you see the results today. Prior to the transition, Adobe had less than 10% recurring revenue. Today, it's well over 90%. You look at the impact on operating margins. Shantanu, David, and the team at the time understood the opportunity and the way a recurring model could not only expand the company's addressable market and drive predictability but also drive profitability. It was a bold move at the time, and clearly, the strategy's paid off. What is the result of strong growth, recurring revenue streams, and expanding profitability? In software, we often talk about the Rule of 40, and you can see here how consistently Adobe has exceeded that threshold. In fact, when you think about the sum of our operating margin and revenue growth, we've often achieved 60. Last handful of years show that. We're gonna do that again this year. That's not something many companies in software have done, particularly at this scale. There's a differentiation in the financial model that underpins this company. The result has been a strong increasing flow of operating cash flow, which enables the company to make transformational investments to drive future growth and return capital to investors. Let's look at our financial performance to date, fiscal year 2022. On an adjusted basis, we're on track to grow revenue 15% year-over-year. Our growth, it's driven by strong performance, engagement, retention, and upsell, and we do it across both established businesses as well as a number of emerging high-growth businesses that are in the process of scaling up, such as AEP, Stock, Frame, Substance. Our EPS, driven by the combination of revenue growth and world-class margins, and despite some of the macro externalities from FX and Russia and Ukraine, we continue to be proud of the company's resilience in the current environment, including how we delivered EPS upside to our June annual targets and how we've absorbed significant EPS headwinds from tax. Today, you've heard Shantanu, Gloria, David, Anil talk about the company's profile. From my financial viewpoint, there's several things that I think make Adobe unique and enable the company's resilient performance. It starts with a culture of innovation. It all starts with innovation, which result in leading products and services and category-defining platforms. These products, they span massive market opportunities. They're used by a wide range of customers, from students and individuals to governments to small and medium businesses and the world's largest, most sophisticated enterprise. With this end-to-end suite of products and services, Adobe's better positioned today than we've ever been to serve these markets. The company is incredibly diversified from business models to the product and segment mix to our go-to-market motions. We're also reaching customers in virtually every region around the globe. The culmination of a well-positioned business is a growing RPO balance, which we know represents contractually committed future revenues that are going to produce predictable growth in the years to come. With the strong top-line growth and the efficient business model that sits behind it, we've delivered substantial margin expansion over the last four years. Margins like this, they just don't happen to a company. It's a result of industry and product leadership, operating discipline, focus, and a culture of consistent execution. You can see where Adobe's margin was prior to the pandemic. In our fiscal 2020 and 2021, our margins benefited from cost savings across travel and facilities. In the back half of fiscal 2022, we've returned to business travel, facilities use, and in-person conferences like this week. You can see we're on pace to deliver approximately 5 points of margin expansion over the last 3 years. That margin performance includes delivering significant improvement in the margin of our Digital Experience business. Let's look at the performance of our business units, and let's start with Digital Media. This is one of the most successful value creation stories anywhere in technology, and you can see the way the business continues to deliver consistent growth of annualized recurring revenue. Not surprisingly, it tracks how we've grown our subscriber base over time. Let's look more specifically at the Document Cloud business. Strong ARR growth in the Document Cloud business translates to revenue performance, and what you see is a revenue compound annual growth rate of 25% over the last three years. It all starts with PDF. That is the standard for digital documents in the cloud era. We continue to acquire new users, optimize our product-led growth motion on the web, and expand in SMB and enterprise with integrated services like Acrobat Sign. Our continued success spans all segments and geographic regions. Now looking at Creative Cloud. In Creative Cloud, we've got a comprehensive portfolio of innovative products, and you've seen many of them on display if you caught the keynote this morning. Those products, they not only define the industry, but they set the standard for that industry. We're attracting new users with the rise of the creator economy, and we're using the insights derived from our data-driven operating model and our targeted marketing campaigns that raise awareness, drives traffic to adobe.com, and it increases engagement, retention, and upsell. This is a massive market and continuing growth opportunity for the company. Last but not least, let's look at the Experience Cloud. In Digital Experience, we're driving profitable growth, but we're also redefining the Customer Experience Management segment with our real-time data platform and applications, and they enable our customers to realize that vision of personalization at scale. It's the key unlock to personalization at scale. We're driving strong expansion in our enterprise accounts. We've got a massive opportunity to cross-sell our entire suite of products in the Experience Cloud, and we do that into the current customer base while we're landing new logos, and it creates great momentum around this business. Now I want to talk about how we think about driving growth and shareholder returns in the decade ahead. Last year, I talked about Adobe's path to $30 billion-$45 billion and beyond. Today, we're making those investments to get there with durable, profitable growth. It starts with a TAM of greater than $200 billion and a huge ecosystem of customers and partners that sit behind those solution offerings. We're broadening our appeal to a wider range of customers. We're driving engagement and retention, and we're doing it with value realization and services across all geographies. We're also growing by innovating and investing to enter new categories that further complement and expand the growth trajectory of the business. You see this with Adobe Express, you see this with Adobe Experience Platform, and you're gonna see the future opportunities we have with Figma. Adobe is a special company. In a world where economic growth is gonna be unlocked and fueled by digital content and data, we have an opportunity to not only grow and define, but catalyze the digital economy in a way that few others can. In the near term, how do we think about the revenue growth drivers? In digital media, David talked about Adobe's world-class performance in new customer acquisition, which was built on the back of the data-driven operating model. In addition to marketing-driven growth, we're committed to product-led growth, which starts with frictionless web offerings, and you're seeing that PLG success play out with Acrobat Web, and we're going to use the same data-driven focus to accelerate product-led growth in Adobe Express. I started today talking about Adobe's bold decision to layer in subscription revenue a decade ago. Let me tell you how I think about PLG as a growth driver today for the creative business. Just like subscription revenue a decade ago, we're beginning to layer in a new freemium model with Adobe Express. The next few years, you're going to see the effect of that viral PLG motion contributing in a more meaningful way to revenue, and it's going to add a new muscle to the company for healthy, efficient, viral growth in the years ahead. In addition to PLG, we're scaling our other emerging businesses like Stock, Substance, and Frame. We're growing with all customer segments, all geographies where we operate. In digital experience, Anil and the team, they're building on the momentum we have with our AEP and applications business, with a book of business that's quickly approaching half a billion dollars. The growth we're seeing in that business can be an accelerant to the overall company growth. We're landing with new logos, and we're expanding towards transformational adoption of the full suite of our product solutions, and we're delivering value to our customers with the professional services. As I mentioned earlier, margins just don't happen to a company. They're the result of focus, industry leadership, consistent, sharp product execution, but ultimately, there's trade-offs. There's trade-offs and tension between driving growth and driving profitability and margins. We're going to be balanced in how we think about managing both of those priorities. We're going to have a bias towards growth. That said, if we're not seeing the opportunity in growth, we're gonna lean more into driving margin and profitability at the company. We're also driving margin expansion, which always starts at the top line. We're investing in emerging businesses that will expand profitability as they continue to scale. We're driving profitable future growth with PLG, which is extremely efficient due to the viral nature of that growth. We're going to continue to prudently manage cloud and vendor spend, and we're going to be judicious of how we think about growth in head count and other spend. As I discussed at the outset, foreign exchange continues to be a headwind to margins in the near term. When we take all of this together, we expect about a half a point of margin expansion in fiscal year 2023 from the baseline that we set in the back half of fiscal 2022. A strong capital structure with robust investment-grade credit ratings, it positions us to continue to drive growth and provides financial flexibility, making access to capital affordable for Adobe. We're committed to maintaining that investment-grade debt rating, which positions the company well in a rising rate environment. Our stock repurchase program, it's funded through growth in operating cash flows. You can see how successful we've been in driving down that average shares outstanding over the last four years. Since 2019, we've returned more than $16 billion of cash to shareholders through the share repurchase program. Exiting Q4, we have $6.6 billion remaining on our authorization through the end of 2024. Update on the Figma deal process. Our required regulatory filings, they're proceeding normally. We expect the transaction will close next year. While the transaction's pending, we will be opportunistic regarding share repurchase, and you saw that in the current quarter with our $1.75 billion share repurchase executed. At a minimum, we'll repurchase enough shares to remain dilution neutral, but we'll always look to be opportunistic in this environment. We expect to use accumulated cash as well as debt to finance the cash portion of the deal. We'll monitor the economic environment, optimize the company's long-term capital structure, and we'll have a strong bias with excess cash to return to shareholders through share purchase. We've talked about our investment-grade debt rating. We've talked about the share repurchase track record and the Figma transaction. Now let's take a step back. Let's talk about how we think about capital allocation. Given the tremendous opportunities we see in front of this company, priorities one and two are going to be to invest to drive growth for the company. Most importantly, we're gonna invest to drive organic growth, and you see that with CDP, Real-Time Customer Data Platform. You see it with Acrobat for web. You see it with Adobe Express. We'll also complement that organic growth with inorganic activity from time to time. You see that with Figma, Workfront, Frame.io, Substance 3D, others. Our other capital allocation priority, returning capital to shareholders. As a growth company, we think the most efficient mechanism to return cash to shareholders is through share repurchase. Our goal is going to be to meaningfully reduce the share count over time following the closing of the Figma acquisition. Adobe's free cash flow margins, they're world-class, and we're committed to returning cash to investors. Now, let's turn to the outlook for fiscal 2023. Before we get to the preliminary targets, just a few considerations that give context. Given the continued macro uncertainty and the volatility we're seeing in the FX markets, we're going to be providing ranges for our financial targets. Continued strength in the U.S. dollar, it's expected to result in about a 4% headwind to reported revenue growth rates in fiscal 2023. At the end of this fiscal year, we expect a downward revaluation to our ending ARR balance of approximately $700 million based on anticipated FX rates as we look into next year. We're expecting some increases in our effective tax rates based on current tax policies in the geographies that we operate in. When we factor all of that in, here are Adobe's fiscal 2023 annual targets. For the year, we're targeting total Adobe revenue, $19.1 billion-$19.3 billion. Net new Digital Media ARR, approximately $1.65 billion. Digital Media segment revenue of $13.9 billion-$14.0 billion. Digital Experience segment revenue, $4.925 billion-$5.025 billion. Digital Experience subscription revenue, $4.375 billion-$4.425 billion. Tax rate, approximately 22% on a GAAP basis, 18.5% on a non-GAAP basis. GAAP earnings per share, $10.75-$11.05. non-GAAP earnings per share of $15.15 to $15.45. Here you can see the growth rates at the midpoints of those targets. Total company revenue, 13% in constant currency. To summarize, company's delivering strong financial performance. We're well-positioned to navigate the current macro environment, with a business that's extremely diversified and resilient. We're offering leading products across multiple growing markets. We're investing to win, and as we do that, we're gonna continue to balance growth with world-class profitability and drive capital returns to investors. We'll now run a short video and turn it over to Jonathan for Q&A. Thanks for your time. Do you have my mic on? Check, check. There we go. All right, a little housekeeping as we're just getting settled for Q&A. First of all, I wanted to make sure everyone knows the slide presentation that we've shown here today is available on Adobe's Investor Relations website, so you can download that. There are some additional slides and details on the posted version that we didn't cover in the live presentation, so we don't want you all to get bored on your flights or back in your hotels. There's more for you to consume. In addition to the speakers, we have the other members of our executive team joining us for Q&A. We have Dana Rao, General Counsel and Chief Trust Officer, Ann Lewnes, our Chief Marketing Officer, and Scott Belsky, the MC of MAX, who helped pull off what we're doing today with Ann, and chief product officer for the company. For Q&A, we have a couple mic runners who will be here in the aisles. We do ask that everybody introduce yourself quickly at the beginning and try to limit to one question and not too many compound questions per person, so we can get through as many possible with the time. You all know you're guilty. It's never worked, but why would it. It's never worked, but I'm gonna say it every time. Okay, I just wanna have visual on our mic runners here. We have Jessica and Linda, and we'll go ahead and start with Jay right here in the second row. Good to see you, Jay. Jessica, thank you. Jay Vleeschhouwer. Shantanu Narayen, in your remarks this morning on main stage, you made the observation that for you personally, it's been fascinating to see the evolution of Adobe, and frankly, for me as well. One thing that's been consistent thus far is the product and innovation culture that John and Chuck instilled many, many years ago. The question is, for the next 10 years, given how Adobe's scope has grown, you've got 24 times as many employees as when I started following the company. How do you keep that going for the next decade or more, in terms of innovation and so forth? With regard to Figma, one thing the company has yet to really do, It has to come. I know. Just explain what really is the underlying architectural plumbing that is, I think, the main driver or should be the main driver of the long-term strategic value of this acquisition that will allow you to move more aggressively to the cloud and the web as you've said you've had to do. I mean, to date, unfortunately, I don't think you've really explained what that really is, except some references to multiplayer and so forth. So maybe you could talk about that. At this meeting three years ago, you talked about your ultimate objective of moving to microservices, for example. Does this get you there? That's one question. Well, first, you know, I think I said it, and I just take immense pride from the fact that at our core, we are a product-driven culture. I think delivering innovation and products, and you look at it by any metric, you know, the businesses that we create, Adobe Experience Platform, when you talk about what we've done there, everything that we've done with AI and ML, I feel incredibly proud of what the team's done. We look at it with respect to patents filed. We look at it with respect to, NPS. I think David talked about the NPS on our products, what we've done with Acrobat on the web. I feel great. I give Gloria a lot of credit for how she has helped create and instill this culture of, you know, hiring the right people, promoting the right people. I run engineering council, that's one of the, you know, councils that still exist in the group. That still exists in the company. That doesn't mean that we invent everything and, you know, good ideas. We've also always believed. You talked about John and Chuck. I mean, we've always believed that good ideas come from everywhere. Sometimes, you know, if you look at our history of acquisitions, the history of acquisitions is really all about leveraging what other companies have done. I think all great companies do inorganic acquisitions and organic innovation, and I don't feel that that is something that we should be, you know, anything but proud of because that's really how you drive businesses. I think specifically as it relates to Figma and what we're excited about, and I'll certainly have David and Scott add, I think what Figma did brilliantly, and Dylan talked about that as well, is really overcome multiple obstacles that exist in terms of web being friction-free to allow creativity. We did that on the Document Cloud side. I mean, if you look at Adobe and what we've done on the Acrobat website, we've done a lot of that. This fundamental nature, I think, again, as Dylan said, of if you think about who's really solved the problem of enabling creative collaborative computing on the web, Google did that for office productivity, and Figma has done that for creative productivity. What they've built is this underlying platform that allows both stakeholders, individuals, co-editing, understanding, you know, collisions, what you have to do in a way that's very fundamental and that we think we can help accelerate to bring that. What we focused on was file format compatibility, which is an incredibly hard problem. When we think about what we did on the web and when we did Share for Review, and the fact that you now have a PSD file, which is 30 years of incredible technology working across iPads and mobile devices and desktop, that is no less an engineering feat. We did the same thing with Acrobat. I think we came at it with two very different approaches. Our approach was how do we ensure file format compatibility so that anybody can, wherever inspiration strikes, have access to that technology? That's always what we've been talking about. Expanding that to be truly multiplayer and stakeholder-friendly, that's a different unlock that I think we can really leverage what Figma has been able to do with us. You know, we can't wait, frankly, for this thing to close. That's when we can share a lot more. Till then we are planning. I think people are increasingly while there was questions up front, and there were questions up front, perhaps about the purchase price and questions up front about what that said about our core business. I think increasingly every customer that we're talking to, every enterprise that we're talking to, it's now about the excitement of what you can do together and an awareness and understanding of that. That's the way I would describe it. I could probably literally spend hours on file formats versus object models in the web and what it takes. Yes, you can. There is some- There's a real power to what they've done that I think, you know, we've taken advantage of. In no way, shape, or form does that detract from what our product engineers have done in terms of solving incredibly hard problems. I mean, that AI stuff, you know, you talk about models and what is happening. I don't know whether you realize how incredible that is. I'll give you one more. Liquid Mode in PDF. To take any PDF that was created 30 years ago- To be able to, without any structure, figure out what the model for that is and make that responsible on mobile, that's just an incredible feat. Innovation is alive and well, but inorganic acquisitions, when you can accelerate that's what all great companies do, and that's what we're excited with. I just want to add one quick thing to that since you asked seven questions, I figured we can. One of the key things that we talked about was collaboration is an overused term that gets a little confusing, and you conflate a lot into that. We talked about Share for Review, and we talked about real-time co-editing. What we're doing with our core flagship applications because we're orienting toward the file format compatibility element of that, which is the thing we should be doing there. As we build that out, you're gonna see Photoshop on the web, Illustrator on the web, these things look and feel a lot more like Acrobat for web, which is an extension and an ecosystem built around that core file format. What Dylan and his team have done is, as Shantanu mentioned, created this platform for, you know, a model-based, data model-based way of looking at and having a project. It isn't dependent on a specific file format, and you can create a very rich, collaborative, real-time collaborative co-editing model. These two are. There are times that you use one versus the other. I do want to also. The one thing I want to add to what Shantanu was saying is that the work that we've done around the Share for Review and file-based workflows, included taking our core libraries of Photoshop and Illustrator and Premiere and After Effects and A, webifying them so that they can run in the web, and B, opening them up as APIs. One of the things that we're really excited about is taking, you know, when the deal closes, working with Dylan and team to take those core capabilities, take the core platform that Dylan and team have built, and really reimagine what should the flows be. The technology, the hard technology problems we've solved on the core creative categories, they've solved on the core platform, and then it becomes a question of how we wanna expose it to users and user journeys. Very excited about that. The developers that are engaging with the platform. Yes. bring a whole other level to the ecosystem as well. Good news is David can also talk hours about the same issue. All right. Compound questions get compound answers. Okay, let's go. Linda, let's go down here, next. Jessica, why don't you give the mic to Alex here in the fifth row for the follow-up? Okay. Let's start over here, and then we'll go over here. Hi, it's Keith Bachman from Bank of Montreal. I'm a little disappointed to start out with that I didn't get a water. I wanted to, David, I deserve that. Fully understand. David, I wanted to see if I could direct this to you if I could. In your slide deck, you had an interesting characterization. Tough crowd. Of the $1.4 billion and the upsell versus the new in terms of driving the growth. I was a little bit surprised on the upsell wasn't a bit greater contribution and also pleasantly surprised the new was a key contributor. Could you flesh that out a little bit in terms of what's driving that? Is that sustainable? Since the door was already open to the multi-part question, the second part is, if you think about Figma, though, what does it do to that $1.4 billion and why? What I'm really asking about is there some level of cannibalization on the creative side, but you know, there's some opportunities also on what it loosely characterizes the workflow side. Just talk about what Figma does to that kind of $1.4 billion on the creative side as you look longer term. Thank you. Sure. Yeah. At a high level, first of all, I just wanna go back to the core business that we're talking about in creative. As we mentioned, you know, we've added. We're expecting to end with over $1.4 billion this year. Over the last 3 years, we've added $4.5 billion in net new ARR. The core engine of that business continues to be incredibly strong. As it relates to how we're approaching, you know, opportunities and new acquisition, one of the things that we're very excited about is, Shantanu and Dan both mentioned the creator economy and how that is driving, you know, incredible interest in sort of 21st century digital skills across the entire market, all the way from K through twelve to higher ed to knowledge workers that are starting to look and say, "Well, I need to participate in this ecosystem." As we're doing that, you know, our primary focus on our funnels are really pointed at bringing those users on board. As we bring those users on board, we're driving them and onboarding them into some of our introductory offers. As we do those, they tend to be offers like Single App and Express. With Express, it's both a combination of freemium and also some paid plans. That's going to sort of that's gonna drive a lot of user acquisition, and it's gonna shift the shape of some of the net new ARR as you look at it here. I think that if you unpack that a little bit, that'll drive the predominance of this. In terms of upsell and migration, we're actually very pleased with the way that's working out and how that's a mix of the business. Part of this is a trade-off between these things. You know, at the end of the day, the web and our products are a very broad surface, but they're a finite surface. How we dial, you know, upsell opportunities and migration of our users versus how we dial opportunities to bring more people on board, those are completely in our control, and that's something that we balance very carefully as we look back and forth. Then to your second question about the $1.4 billion, I do wanna kind of reiterate this point that Dylan made earlier, is that, you know, Dylan and what the team has done there, that is an adjacent business to us. We have so many customers, both Shantanu and Dan talked a little bit about this too, which is, you know, our customer response to this acquisition, from enterprises to individual creatives, has been overwhelmingly positive. The reason for that is that they are looking at ways. They, they're using both products, and it's not like one product obviates the need for the other. What we can do to make these better together is fundamentally going to, I think, improve the prospects. I look at this very much as an additive thing, not a replacement. We believe very strongly this is gonna be additive. Hey guys, Alex Zukin from Wolfe Research. Well, I'll make the joke. I guess I'll ask for the coffee. It's actually chai. Otherwise, I would have walked across. I'm gonna ask one question. It's about the guide. The question is, I think a lot of investors would appreciate a little bit greater clarity on both the digital media ARR guide and the DX guide in terms of where are the layers of conservatism. Is it in the changing mix of additions? Is it in the close rates or the conversion rates for the DM business? For the DX business, it actually looks like the guide is more aggressive in terms of an initial guide versus prior years. I, you know, I appreciate the great level of clarity and detail on the slide in terms of the opportunity to upsell within existing accounts, but if it's a more difficult deal environment, particularly for larger deals, particularly in a lot of those verticals that you guys have really good traction in. I guess just help us understand where the conservatism is on that part of the business as well. Maybe I'll take that first, Alex. You know, I think we take these targets very, very seriously, and we hope we are very thoughtful about both what we are seeing in our business as well as, you know, in all our conversations with customers and partners, what we are hearing from that. Big picture, if you look at the guide, I want to clarify and reiterate that apart from the macroeconomic environment, it would have probably been greater across the business. What we are trying to do is factor in what we are seeing. Q4, you know, business looks strong. Clearly, like you, when we talk to CEOs, on the one hand, we hear that CEOs are being a little bit less confident about the future, in terms of where they see their business. On the other hand, we continue to hear that digital is going to be one of the areas of their business that they do not cut because that's the path, as Anil said, first to revenue growth as well as to improving ROI. You know, we look at the business, we look at our pipeline, we look at what we are hearing across each of the segments. We look at the new opportunities that are coming in categories that we're still under-penetrated, as he mentioned, whether it's healthcare, whether it's what's happening with B2B and all of those companies. You know, we'll continue to update you, but you know, we feel like we are the leaders in these particular categories. It's really more the macroeconomic environment where that's the sort of, if there's a swing factor, it has more to do with what the macroeconomic is than either the opportunity or our leading category. So I don't know if that helps, but that's sort of the way we look at it. The other way, you know, I think Dan and I have talked about it with the executive team, is looking at it and saying, there's an interplay, if the market turns out to be much worse or the market environment turns out to be much worse, we are continuing to be ruthless about prioritization, and we will make sure that we look at the expense envelope then and continue to invest in long-range R&D plans, but perhaps, you know, factor in what we would do on the marketing side. Which is why if you look at our EPS guide and what we've done with the EPS guide, I think it's a thoughtful guide, and I just wanted people to also know the interplay between revenue growth and EPS. You know, we're very conscious about that as well. The opportunity is still immense. You know, the trade-off is how do you prioritize the right things and how do you aggressively go after the right things? Okay. Let's go to Karl over here, Linda. Why don't you go, after Karl, to Brad here. Okay. Hi. Great. Karl Keirstead at UBS. Maybe this question is for Dan. Could you unpack the 50 basis points improvement you're embedding in your guidance for next year? Where does that come from? It sounds like you're assuming that FX is a headwind to that, so ex FX, it's 50+. In a tough macro environment, where is that from? How much maybe is the price increase versus other levers? Thank you. Yeah. First of all, I won't get into so much detail that we end up, like, guiding by segment those types of things, but just a bit of the color. The FX continues to be a macro headwind, but I think it dovetails and ties in and building on exactly what Shantanu just said. We understand that there's this tension driving growth and driving profitability. We're in this difficult environment, uncertain environment. We're going to be disciplined in how we think about cost, how we think about driving efficiencies into the supply chain, the vendors, the cloud spend, but also being prudent and judicious on how we think about headcount adds in this environment. We're gonna operate in a disciplined way that preserves upside from a growth opportunity, maximizes growth opportunities in the environment that we're in, do it in a disciplined way that preserves profitability. It's just about making the difficult decisions in the environment we're in to run a disciplined business and drive as much profitability as we can for the company. Maybe when you look at the rhythm of the numbers in terms of hiring will probably be a little bit more prudent than we were in the last couple of years, because, A, we think we have a lot of great talent, and we just wanna make sure that we continue to be monitoring it, in terms of directionally where the headcount will be. It'll probably be less increase than you've seen in prior years. Thanks. Hey, it's Brad Zelnick with Deutsche Bank. I think going into today, organic innovation has been on the minds of investors, and it's great to see, especially at this morning's keynote, Adobe's innovation on full display. Firefly was a feature that got all sorts of oohs and ahhs and applause, but so many others, too many to name. I wanted to drill down into generative design and GenTech in particular. On the one hand, this seems like a significant opportunity for Adobe as well as its, you know, creative constituents across all segments. Can you speak a little bit as to why Adobe is gonna be a winner? How real is the technology that we saw today? Why should we not be concerned that this is, at least to some extent, perhaps cannibalistic of some of your core capabilities? Thanks. Couple thoughts, and I'll start. David, feel free to chime in. First of all, we like to say we've never met a creative professional that wants to take 2 hours to do something that could be done in 2 minutes or 2 seconds. Our customers, the whole notion of product-led growth is ultimately customers being successful more quickly to the point where they start to really use and retain in the product and start to share it. Generative AI is an opportunity for us to get all customers to be more successful more quickly. As we've been talking about the top of the funnel growing and all these new customers, especially those that are not pro yet, for them to be able to come to the funnel and start leveraging this technology to feel successful quickly is absolutely key. The other thing that we're doing is we're saying, okay, you know, we don't. We know that, all these models out there and our models internally can help people generate, an image with a text prompt, and we have that. We want customers to be able to go further. I mean, what we hear from our customers is they don't want some, like, lossy simple JPEG image that's conjured up from a text prompt. They wanna be able to go and say, "All right, this layer I want to use generative AI for, but all these other layers I wanna use my skills for." I think that ultimately what we're gonna see is that creative professionals, you know, have something in their mind's eye, and they wanna make it so. I think as you get more pro, you're gonna find more of that kind of manual creativity, if you will. When people come into the top of the funnel, especially across the kind of the non-pro side of our customer base, they're gonna wanna just, you know, have things happen magically. I mean, you know, having spent so much time now with customers, testing some of the technology that we have in the lab that we're developing, seeing how they wanna use it, the things that they wanna change, it's just I have full conviction that this is going to help people be successful more quickly and also just be a superpower for even the most pros, you know, in our base. Yeah. Brad, let me- Oh, sorry. Let me add a little bit by customer segment, and then certainly feel free to add, David, which is if you think of it by customer segment, let's start at the consumer end of it. The consumer end of it, you're gonna have TikTok-like experiences, where people will be like, "Hey, let me enter in some word. Let me see what it is." There's instant gratification, and you move on. You know, that's where a lot of the state-of-the-art is of generative technology right now, and people talk a lot about that. You know, that's fun, and that's interesting, but that doesn't impact any of our businesses at all. At the other end of the spectrum, when you talk about the creative pro, and Scott was alluding to this. When you look at what the generative technology allows you to do and the resolution associated with that, unless you can bring that into a product like Photoshop, and even for those, the owl picture that you showed, the resolution that exists for that and the ability to make that really high resolution, we have all the ability, both as it relates to the number of users who are using our product and the fact that we have the best models in the world because we have access to the data that actually makes our products even more powerful. It will actually be this innovative virtuous cycle for us that since we have the products, everybody wants to be a plugin to our products, even if you have generative technology, and we will make our products better and better in order to be able to do that. Great on-ramp for us to continue to do it. Then when you think about the communicators and what the communicators are trying to do with this generative technology, clearly a product like Express, and we showed it, that's when they have an idea. They want this on-ramp. It's not going to change their desire to create content. Anything that you can do to actually accelerate their desire to create content is only gonna allow more people into the fold. That's what, to some degree, Adobe Express already does on the web. This serves as a greater amplification for that. I think when you think about it, you have to break apart, you know, which customer segments, who has access to this data, who has access to the technology. as you think about it's like, wow, why isn't that the biggest opportunity available for Adobe, in terms of what we can do to further differentiate our products? Yeah. Just two quick things to add. One, you also asked how real is this technology. Everything you saw is actually working, and we're in the process of figuring out how we want to productize it. But none of that was mock-up. It was all real technology working in Photoshop and Lightroom and Express. The second thing is just to double-click on one thing Shantanu said, it's about the data at the end of the day. The algorithms are actually well solved. It's really about access to the data. So we, you know, we have 20,000+ fonts. You know, we have, you know, 175 million images and growing very quickly. We have, you know, incredible models based on our 3D. If you think about sort of the next opportunity for generative could be around 3D, and we have all that. More than all of that, we have the world's best tools being used every day by the world's best creative pros. Getting the data of what they do and what they do to make something that looks pretty good look amazing, that data is uniquely stored within Adobe. What we can do with that, I think, is like what no one else has access to. Okay. Let's go to Keith here, and then we'll go to Kirk across the aisle. Excellent. Keith Weiss from Morgan Stanley. Thank you guys for hosting the analyst today. This has been great. A question for, I think it's for David and maybe involve Dan as well. When I was looking at sort of the sources of growth and that 1.4 million to a billion. It looks like the individual apps that expanded a lot from the last time you showed us that slide. It was closer to 40%, and my protractor skills show closer to, like, 60% now. I've traditionally thought about that individual app as more consumer focused. One, is that still the right kind of focus or is that broadened now? Like, who's driving that individual app? Two, when we think about the LTV to CAC ratio, if you will, and sort of the longer term profitability to those customers, maybe this is for Dan, is that still as good as your core creative professional? Is there still as much upsell opportunity among those customers, as you have with your core creative professional? Yeah. First of all, you know, in terms of on-ramping people, we really believe very strongly about bringing them into, you know, the product that makes sense for them and then sort of driving them up. I think we can say that for communicators and consumers, that is largely going to be, you know, bringing them in through Express or the Single App. But even sometimes pros, especially, you know, earlier in career pros, will start with a Single App and then work their way up. We certainly see this dynamic where someone that comes in as a videographer is gonna maybe just get a Premiere, and then they say they want to add Photoshop. We see these dynamics playing out. everyone that's coming in through this category, we have the opportunity to upsell. The other thing that's worth noting is that, when we look at the surface of people coming in, we track, of course, very quickly, very carefully LTV, and we track, you know, the retention rates. what we've said in the past, and it continues to hold, despite the fact that we're seeing all these new people coming in at these initial offers, that our core retention rates continue to rise, and they're better than they were pre-pandemic, right? that idea that, you know, people are coming in, they're coming in and they're staying. as we talked about earlier, we are looking for those surgical moments to give them access to more value and more opportunity. Yeah. We do see the upsell opportunity being very significant over time. The best thing we can do is bring hundreds of millions of people into the Adobe ecosystem, standardized on the technology that defines who we are. The best mechanism to upsell people over time is whether or not they're successful. You get people onto the right app, you start the journey in the right way, they engage with the ecosystem, it's a catalyst to them being successful within that ecosystem, and then you've got a lifetime value of that customer as you drive them to other products and opportunities that make sense for them and make them even more successful. It's gonna be a very effective mechanism. It is, and it's gonna continue to be a very effective mechanism for us. I think to Carl's question and yours, we knew when we were giving pies that people would look at, you know, each one of them and wonder, you know, whether that was good news and bad news. I want every one of you to know our bigger goal is to expand all those pies and therefore expand every part of every one of them. Great. Thanks very much. Kirk Materne with Evercore ISI. Thanks for hosting the day. Nice to see you all in person. Every year we've been here in person, it's been a while, but every year at MAX, there's a ton of new innovation that comes out. It feels like the last, you know, couple of events, there's been a real focus on sort of the foundational technologies underpinning all of your different products, whether it's collaboration, workflow, AI. You know, the question's really about how do you think about the monetization of those foundational aspects, right? We only see the pricing aspects and sort of the output, but I'm sure there's things like retention statistics and Keith's question around LTV that you guys have to look at. When you're thinking about baking all this new technology into the stack, how should we think about your views on monetization of that, and how do you get paid back for all that innovation you're putting into the products? Yeah. Great question, and that's exactly how we look at it. You know, we track active use per user, and one of the stats I did share with you all today is that as we've been bringing in more people, and to Keith's question, also bringing in more, you know, early in career creative professionals, but also more communicators and consumers, our active use of our products has actually increased on a regular basis. We see that they're engaged. Why are they engaged? They're engaged because we're doing two things. One is we're driving very significant product innovation in and a lot of these AI capabilities, as we talked about, take away so much of the overhead of what you used to do. More and more people are able to be successful with the products, and so we are able to drive more active use that way. But we're also doing a lot of journey optimization in the products themselves. Scott and team have added Creative Cloud desktop home experience to some of these applications, and that has the potential to draw people back into the applications and try things that they've never tried before. That whole journey element of it continues to be significant. The other piece that we talked a lot about today is Share for Review. One of the most exciting things about Share for Review, and we talked about this in the context of Acrobat, is that the more documents that get shared, the more people that can interact with a Photoshop file or an Illustrator file or an InDesign file on the web, the more they get exposed to Adobe technology, and it creates that viral loop. First and foremost, though, I just wanna be clear, we add the features and the capabilities because they're the right things to do and that our creative pros and our base really gets benefit out of there. You know, based on that, we want to obviously expose them to more so that they can see more value and start to get some of the value out of that innovation. I think some of this technology is laddering up to a better experience for teams as well. Of course, like, the team business is a great business for us. It's, you know, higher ARPU, et cetera. I think some of these multi-year efforts will just build better experiences for teams, which of course expands the base as well. One other quick thing to add is that, you know, we have some of the technology that we're very planful what we put in the product and what we keep out of the product. As an example, Substance is an upsell opportunity and a cross-sell opportunity for folks. Frame.io, similar there. Stock, similar there. We have a lot of different ways to journey users through the discovery of value and also make sure it's good for the business. Okay. We have time for about three more questions. Linda, let's come up here in the outside row. It's hard for me to see folks over there. Then we'll hit Saket, and we'll give Kash the last word. Sorry. Tyler Radke from Citi. Thanks for taking the question. Dan, I wanted to ask you a follow-up just on the margin question. If we think about the 50-plus basis points or so that you're targeting for next year, should we think about that as kind of a good medium to long-term framework in terms of how you're thinking about margin expansion, or are there some one-offs? Just as we think about the closing of Figma, I think in the earnings call you referenced kinda increased investments to accelerate the growth. Should we think about those margin targets and that margin expansion, obviously it's ex-Figma, but should we think about kinda incremental investments post the Figma closing, that would be a headwind to that margin post-deal close? Thank you. Yeah. I think the way to think about this is, and you saw the margin progression over time, and we talked about 5 points over the last 3 years. We talked about 2020 and 2021 benefiting from lower travel and facilities expenses. We talked about the back half of 2022 as being the right kind of baseline as we're getting back to travel, as we're spending time here, together this week with our customers, and you all in this audience, and repopulating campuses. That feels like about the right baseline. Against that opportunity, we'll always evaluate the environment we're operating in, the growth opportunities we have, the long-term trajectory R&D projects, and then the discipline that we have to operate in the current environment. We talked about this year, headcount. It's gonna be a very modest, you know, headcount profile year over year. I don't think you can read too much into any one year, particularly when we're talking about FX being such a strong headwind from an operating profit standpoint. We would've done even better absent that. We'll take it a year at a time. When I take a step back from the current environment and what's driving it and think about long-term margin profile of us as a company, and I firmly believe this, it all starts with leadership. Leadership in our products, leadership in our markets, leadership in our category-defining platforms. As we scale those leadership businesses, we've been on that journey with Creative Cloud and Document Cloud, and you can see the digital experience business driving that leadership into their markets. I would fully expect the margin profile to reflect those leadership positions that define who we are. That's the right way to think about it long term. In the near-term environment, we'll take it a step at a time and optimize the long-term value creation of the company, balancing the discipline we need in the current environment. Great. Saket Kalia from Barclays. Thanks for hosting this. Maybe for Shantanu or David, I'd love to just dig one level deeper into Express. You know, going back to the pie, and of course the pie will be bigger, Shantanu, to your point, but I think it was interesting to see that emerging, which includes Express, is still a small, relatively small part of net new ARR, at least in context of the opportunities we talk about it, right? I imagine that mix will be bigger at future MAXes. I guess the question is, what did you all learn from Adobe Spark that you feel will help accelerate Express becoming a bigger mix? That's an open-ended question. Whether that's from product perspective, whether that's from a DDOM or go-to-market perspective, open-ended, why is Express going to be much bigger than what Spark was, which has been around for a little bit longer? Yeah, I'm happy to share, Scott, too. First, I think we have to remember that Express has been in market for 10 months now. We're very early in the journey with Express. I'll let Scott speak more to the specifics in terms of anything from a product perspective. Really the main thing I would say is that building Express with the foundation being around product-led growth from day one was a critical part of how we've approached it this time, right? What I mean by that is that it's not about the collection of features that you get in market. It's about the collection of features and capabilities that you get in market, but being maniacally focused about the journeys that we take our customers on. Constantly, every day, we talked about, what is it, over 100 releases you guys have done already this year. It's about the constant iteration in the flywheel of looking at the data and optimizing and continuing to drive the right behaviors with customers to make sure that they're more successful out of the gate and then start to drive that forward. It's as big a, you know, in many ways this product. I hope you saw the product this morning and what it's able to do. The focus on performance, the focus on bringing together all of these different capabilities, the focus on enabling it on web and mobile in a single app, in a single surface so that you're not dealing with multiple apps, really gives us the ability to iterate much more quickly and drive that growth. For where it is 10 months in and the usage that we're seeing there and, you know, to the extent it's contributing even 10 months in, we're actually very happy with where things are. The only thing I would just add is that, I mean, Spark Post, which was a product that we ended when we launched Express, and there were some technologies simply around the templates that we leveraged for that. We brought in video editing, image editing. I mean, we did surgery across the organization to bring the right teams and the right technologies together to build this really powerful multimedia creation experience. Of course, you know, bringing content scheduling and all the AI stuff we shared this morning, and the integrations with libraries and the interoperability with Photoshop that's coming and everything else. I mean, it's like, it's hard to even compare. What I did learn, though, from some of the Spark explorations that we had in market earlier, was just how to make sure that we nailed the freemium experience on the web and could sort of fine-tune and iterate and market, you know, for that new audience for us, which was really. These are some important learnings that the team has, you know, certainly taken, but it's, you know, hard to compare the two at this point. I'll give another lens to that question in terms of the answer, Saket, which is, this is a massive priority for us right now. Spark was an important technology investment. It wasn't a massive business priority the way this was. That's point one. Point two is what we have learned from Acrobat and how to drive Acrobat's success, both on the web as well as on the desktop, and to understand how both of them happen, whether it's search engine and what's happening with search engine optimization for traffic. You know, we used to do that for create PDF there. Here, you may do it for remove background. Our expertise in how to drive traffic, I think David gave a whole bunch of numbers. It's world-class. We know how to go drive tremendous traffic in terms of getting that traffic to Express, much like we did with the Acrobat for web. The Acrobat for web was a really important first step for us to make sure that we understood the relative, you know, traffic between our desktop products, because that's a massive engine that we have. That's the second thing that I would say. Third, what we have unleashed in terms of the product and the toil of the, you know, years of effort, this again goes back a little bit to what Jay asked. Every one of our products now has an API that allows, whether it's imaging technology, vector technology, video technology, to be available as an API. The pace and acceleration by which we can add functionality to Express is pretty amazing. I think we have made some fundamental changes, and that's what gives us a lot of confidence. Last but not least, we do this within the company. We use all our products all the time, and I think, you know, just getting the incredible feedback that we've got within the company, we know that we have cracked a lot of things. A lot of confidence associated with that. Okay, the last question right here. Thank you, Jessica. I promise to stick to one question per executive. No, it basically boils down to one thing that I've been thinking through, either David or Shantanu. Shantanu, we lived through the whole creative cycle, and you put it as subscription in the web. Everybody underestimated the TAM, including me, and then here we are, I'd say $11+ billion business. You're jumping into this major strategic acquisition. Alongside this, there are other developments. Everybody's going after the collaborative end market. You have Microsoft through Teams, you got Salesforce through Slack, and Atlassian with Confluence, sorry. That is not the reason you're getting to this market. It's clear that the way David explained it, you're webifying creative. Now, how do you make sure that we're not going after the long tail of $2, $3 ASP, but you really still retain the emphasis of Adobe, that is to go after the high-value creative person, whether it's a developer or designer? How does the monetization of this thing work out? Because if it's only a $16 billion TAM, it's gotta be bigger than that for the price tag that you paid. Help us envision, just as you did back in November 2011, Radio City Music Hall, how you changed the model and here we are. What does the next 10 years look like for Adobe with Figma that individually each of you couldn't accomplish? Thank you. Yeah. Thank you. First of all, you know, I think we go back to our mission statement, which is basically, we want everyone in the world to be able to express themselves creatively. Second thing is that if you look at what's happening, you know, we're seeing this shift in terms of how people think about productivity and how they think about creativity, and creativity is the new productivity. What we mean by that is it's effectively the, it's this ability to create and express yourself digitally in a mixed media world, where you're thinking about not just what you create, but also where you're gonna distribute it. Everyone, just talk to anyone in their, you know, any millennial. If you're in the crowd, you can speak up. Like this is how they want to build the next generation of the content that they want to express themselves with digitally. When you start with that, we really genuinely do believe that, you know, the right strategy over the next 10 years is to have 1 billion or 2 billion users of our products on a monthly active basis. We want to ensure that they are successful, and we wanna drive this product-led growth motion to introduce them to some core value. From there, we want to walk them up to, you know, more power and precision. We've got the funnel in our mind very clear. What Figma does, first of all, you know, again, it's an amazing business. You know, and it's growing very quickly. It's got you know incredible Net Dollar Retention Rate because it proliferates within an organization by bringing more people into it. The more people that are participating in it, the more success that they're having. We do believe that there's an incredible opportunity to grow. You heard Dylan also talk about you know what they've done so far is around you know designers and you know for product design, and they've done some great work around FigJam, but they're gonna be adding more capabilities for developers as well. That continues to grow the business. The other big unlock for us is when we take those capabilities, and we take what we've built over the last few years and webified, as we take that and we ask ourselves the question, "What should those journeys look like for real-time collaboration and capabilities in that world?" We can reimagine workflows for imaging and illustration and video and all of these things on top of the core Figma platform. When you broaden from there and you look at what we're doing with Express, and you look at the fact that he talked about presentation capabilities that they're bringing to the table, and FigJam as an example, and you start thinking about the portfolio from a freemium model for Express to a reimagination of, you know, how we think about creation for our core categories, and then how you also expand to stakeholders and developers, you know, that TAM as a whole just continues to grow. You know, we'll update you all at some point in terms of how we look at this holistically against the $95 billion TAM we've had, but there's plenty of upside to that TAM, and this acquisition really helps unlock that. Maybe a couple of things, Cash, that I'll add to it. I mean, I think when we decided that we were gonna go to the cloud, the fundamental assertion and belief and hypothesis that we had was that we could build a better product, and by partnering with the community, we could innovate at a faster pace. The second fundamental hypothesis with that was that we would dramatically increase the number of people who paid Adobe. As you know, at that point, we had issues with piracy and perhaps people who felt Adobe was unaffordable. We thought that ratio of people who would come into the platform and the ability to innovate would help us. I think, as you know, all fundamental innovations, probably in the short run, they're overhyped a little bit, but if they are truly revolutionary, they're underhyped in the long run. We believe that same kind of excitement exists today when you think about everybody who wants to be a creative and the ability, whether it's imagining those ideas, brainstorming those ideas, and dealing with it, and that entire community, again, as David said, of stakeholders, of designers, of developers, of videographers who can come into the platform is 10x larger than anything that we have today. Our goal is, again, how do we continue to innovate around that product and make sure that we can demonstrate that we have the ability with all of the assets that we have. We haven't talked about Acrobat today and the ability for Acrobat also and FigJam to become this true way in which every worker gets more productive. That's what we're out to go you know demonstrate that we have this vision, that we think it's a much, much, much larger set of customers, and we can fundamentally innovate. If you do that, and you drive value, then the monetization options, you know, certainly have presented themselves. The second, I think, fundamental thing that we've done as part of the company, which is perhaps a little bit less well understood, but I think those pie charts show that, is the different ways in which we are monetizing the products is very different from what it was in the past. Whether you look at it as emerging freemium models, mobile models, you know, and things that we've done, and I think this also gives us way more flexibility to think about different pricing, whether it's in the enterprise, whether it's in teams, and whether it's for individuals who are creators or teams or stakeholders. You know, we think that's gonna be a transformative move, and I think it's one that uniquely positions Adobe for the next decade. We really appreciate all of you coming in here today. I mean, I think the energy that we get from talking to you about what we are excited about, in person is so much better than doing it, you know, on a video screen. I really want to reiterate my thanks for all of you being here. If the person that I also want to thank is Jonathan, because I know he has really approached every one of you and said, "What is a way in which we can show you a lot more data that both highlights the underlying growth in the business as well as the excitement that we have?" Thank you again for coming. I do hope you see the keynote tomorrow. I do hope you see Sneaks tomorrow. For the millennials in the room, at least I understand that there's a band. You know, what's it? Twenty One Pilots. Twenty One Pilots. Please stay for that. Thank you all for coming. Thanks, everyone.