CLAIM #4111 · Adobe Systems Incorporated (ADBE) · 2023Q3 earnings call · Sep 14, 2023 · due Sep 14, 2026
“the renewal timing will probably take about three years, given the multi-year contracts that we have in place.”
David Wadhwani · President of Digital Media
How to check this claim
Look at: Time for enterprise customer base to fully renew onto new pricing (full realization of pricing change impact across enterprise contracts)
It came true if: Full enterprise renewal cycle completes approximately 3 years from statement date, i.e., by fiscal Q3/Q4 2026, as reflected in Digital Media ARR growth commentary
Where: Management commentary on quarterly earnings calls (Digital Media ARR discussion) through fiscal 2026
In context
“ributors, we think that will be really meaningful. We also expect that -- as we do this and drive new users, we expect to see a lot of new users come into the free plans. And that's going to take a little time to ramp. We'll bring them into the Adobe family, get them using the products, and ramp them to greater value over time. So, first and foremost, proliferation on new users. The second thing is going to be on the book of business. And here, we're -- basically, the pricing changes. Just as a reminder, they have a rolling impact. We're going to start them late in Q4. And we're going to start it in certain geos only. And then, we're going to have a measured rollout in new countries over the course of the next couple of years. And then certainly also as it relates to enterprise customers, the renewal timing will probably take about three years, given the multi-year contracts that we have in place. So, net-net, we see this truly as a seminal moment for how we're going to grow the business, but it's going to take a few years to play out, and we're really excited about sort of what this means for bringing new customers into the franchise. Shantanu Narayen: And maybe Kash, just to then tie that all together, in terms of the numbers that we've given for Digital Media ARR, because you asked the question from the beginning of the year, remember, I think we guided to $1.65 billion, if you look at what it is even with our Q4 guide that I think $200 million more than that, $1.86 billion or something to that effect. And since we guided in Q3, for Q3 and Q4, $100 million. So, we continue to be really confident and we're excited about the roadmap. Operator: And our next question will come from”
Verify independently
SEC filings for ADBE ↗ · Claim quote is verbatim from the 2023Q3 earnings call.