CLAIM #4155 · Adobe Systems Incorporated (ADBE) · 2024Q1 earnings call · Mar 14, 2024 · due Nov 29, 2024
“If we look at the guide and we're on track as it relates to the $1.9 billion, and to hopefully exceed that guide.”
Shantanu Narayen · CEO
How to check this claim
Look at: Annualized recurring revenue (ARR) from new/Digital Media AI-influenced business (Adobe's disclosed AI ARR/bookings metric), fiscal year 2024
It came true if: Fiscal 2024 AI-related ARR/bookings >= $1.9 billion, with exceeding that figure counted as a beat
Where: Company-disclosed AI ARR figures (Adobe Q4/FY2024 earnings call and shareholder letter)
In context
“this macro? Is this execution? Can you just comment on -- and maybe it's none of these things, but can you just comment on what you think you're seeing in the current quarter? Shantanu Narayen: Yeah. Happy to, Brent. And again, I'll reiterate that as it relates to us taking our targets pretty seriously. I mean, when we guided to $1.9 billion for the year, I mean, we had factored in both, as David mentioned, what was likely to happen in the pricing and how that rolls off, as well as the product roadmap, and when AI Assistant and Acrobat would be available, when Express, which is now in beta, would be available. So I think it factored in all of those. I guess if you are looking at it from accomplishment, we look at it and say hey, we did $410 million. I think last year we did $432 million. If we look at the guide and we're on track as it relates to the $1.9 billion, and to hopefully exceed that guide. And so from our perspective, it's playing out. Maybe the other color, Brent, that I would provide is given the desktop products are still in beta, and there we look at value and there we look at utilization. And so I think we gave you some numbers on the $6.5 billion generations that we're seeing, the really positive feedback that we're getting in Acrobat that continue to give us optimism associated with how that is. I think where there's tremendous interest and where if you look at it from an AI monetization, the two places that we're monetizing extremely in line with our expectations. The first is as it relates to the Creative Cloud pricing that we've rolled out. And as you know, the generative packs are included for the most part in how people now buy Creative Cloud, that's rolling out”
Verify independently
SEC filings for ADBE ↗ · Claim quote is verbatim from the 2024Q1 earnings call.