Adobe FY1Q25财报：Adobe AI战略与业务转型之路

ALL RIGHT, WELCOME TO THE DEEP DIVE.

ALL RIGHT, WELCOME TO THE DEEP DIVE.

TODAY WE ARE DIVING INTO.

TODAY WE ARE DIVING INTO.

Adobe, you know Adobe, yeah, and really specifically looking at this idea of potential business headwinds, right?

Adobe, you know Adobe, yeah, and really specifically looking at this idea of potential business headwinds, right?

Because you sent over their Q one twenty twenty five earnings call transcript, yeah, and I read through it, and you know on the surface, at least from the headline numbers, yeah, things are looking pretty good for Adobe.

Because you sent over their Q one twenty twenty five earnings call transcript, yeah, and I read through it, and you know on the surface, at least from the headline numbers, yeah, things are looking pretty good for Adobe.

right?

right?

Yeah, they had a record first quarter.

Yeah, they had a record first quarter.

I mean it was huge, five point seven one billion dollars in revenue.

I mean it was huge, five point seven one billion dollars in revenue.

Wow, which was.

Wow, which was.

Like eleven percent year over year growth, earnings per share beat expectations.

Like eleven percent year over year growth, earnings per share beat expectations.

They even reaffirmed their fiscal year twenty twenty five targets.

They even reaffirmed their fiscal year twenty twenty five targets.

Yeah.

Yeah.

So like at a glance, things are good, you know?

So like at a glance, things are good, you know?

Yeah.

Yeah.

But then like as we start to dig into the actual earnings call and like specifically around this whole AI thing and how they're going to monetize AI or are they monetizing AI?

But then like as we start to dig into the actual earnings call and like specifically around this whole AI thing and how they're going to monetize AI or are they monetizing AI?

Right.

Right.

That's where we're going to go on this deep dive.

That's where we're going to go on this deep dive.

Yeah, I think that's the real interesting part here because everyone, you know, I mean, everyone's talking about AI.

Yeah, I think that's the real interesting part here because everyone, you know, I mean, everyone's talking about AI.

AI.

AI.

Yeah.

Yeah.

And how are these companies actually going to make money from it?

And how are these companies actually going to make money from it?

Right.

Right.

And so far, it seems like at least for Adobe, it's still a bit of a question mark.

And so far, it seems like at least for Adobe, it's still a bit of a question mark.

Yeah, and one of the analysts I think kind of like went right at it, right?

Yeah, and one of the analysts I think kind of like went right at it, right?

They like straight up asked when the heck is your AI stuff gonna like show up in your revenue, right?

They like straight up asked when the heck is your AI stuff gonna like show up in your revenue, right?

Yeah, and like hey, your AI book of business, because that's what they call it, is low single digit percentage of total revenue, right?

Yeah, and like hey, your AI book of business, because that's what they call it, is low single digit percentage of total revenue, right?

Like what's going on here?

Like what's going on here?

And like you've been talking about AI for a while now, so it's the deal.

And like you've been talking about AI for a while now, so it's the deal.

Yeah, exactly.

Yeah, exactly.

And Shantanu, you know the CEO, yeah, he kind of like went into this whole three part AI journey, right?

And Shantanu, you know the CEO, yeah, he kind of like went into this whole three part AI journey, right?

Which you know makes sense.

Which you know makes sense.

It's like first innovation, right?

It's like first innovation, right?

Just like.

Just like.

COMING UP WITH THE NEW STUFF, AND THEN TRACKING THE USAGE, SEEING HOW PEOPLE ARE USING IT, WHAT VALUE YOU KNOW THAT WHOLE THING, AND THEN OF COURSE MONETIZATION.

COMING UP WITH THE NEW STUFF, AND THEN TRACKING THE USAGE, SEEING HOW PEOPLE ARE USING IT, WHAT VALUE YOU KNOW THAT WHOLE THING, AND THEN OF COURSE MONETIZATION.

LIKE HOW ARE YOU ACTUALLY GOING TO GET PEOPLE TO PAY FOR THIS STUFF?

LIKE HOW ARE YOU ACTUALLY GOING TO GET PEOPLE TO PAY FOR THIS STUFF?

YEAH.

YEAH.

And so he's basically saying, we're, you know, we're doing well on all three.

And so he's basically saying, we're, you know, we're doing well on all three.

Yeah.

Yeah.

But then the interesting part is he kind of slipped in this little tidbit that a lot of their AI monetization is actually already happening.

But then the interesting part is he kind of slipped in this little tidbit that a lot of their AI monetization is actually already happening.

Yeah.

Yeah.

In their existing subscriptions.

In their existing subscriptions.

In their existing, yeah.

In their existing, yeah.

Like, you know.

Like, you know.

Creative Cloud, Document Cloud, that makes you know all those.

Creative Cloud, Document Cloud, that makes you know all those.

It's like, you know, because they're saying that these new AI features are attracting and retaining users.

It's like, you know, because they're saying that these new AI features are attracting and retaining users.

Yeah, they're saying that, you know, people are upgrading to higher value SKUs because of the AI stuff.

Yeah, they're saying that, you know, people are upgrading to higher value SKUs because of the AI stuff.

Yeah, it's like a value add.

Yeah, it's like a value add.

Yeah, it's a value add.

Yeah, it's a value add.

So like if you're a subscriber, you're in a way already part of their whole AI monetization thing.

So like if you're a subscriber, you're in a way already part of their whole AI monetization thing.

Yeah, yeah, you're kind of funding the AI development.

Yeah, yeah, you're kind of funding the AI development.

Funding it, yeah, yeah, exactly.

Funding it, yeah, yeah, exactly.

I mean, it's like it's kind of a clever way to look at it.

I mean, it's like it's kind of a clever way to look at it.

It is, yeah.

It is, yeah.

But then they also had these, you know, the new standalone AI products, right?

But then they also had these, you know, the new standalone AI products, right?

So they're like, you know, we've got Acrobat AI Assistant, we've got that, you know, Firefly app and the services that go along with that.

So they're like, you know, we've got Acrobat AI Assistant, we've got that, you know, Firefly app and the services that go along with that.

Right.

Right.

And then of course their Gen Studio.

And then of course their Gen Studio.

Yeah, which, you know, that's a pretty big platform.

Yeah, which, you know, that's a pretty big platform.

Yeah, and they're saying that all of these together, yeah, like contributed over one hundred twenty five million dollars.

Yeah, and they're saying that all of these together, yeah, like contributed over one hundred twenty five million dollars.

In their book of business, yeah, as they were exiting Q one, and they're expecting it to like double by the end of the year.

In their book of business, yeah, as they were exiting Q one, and they're expecting it to like double by the end of the year.

Wow!

Wow!

But again, like $125 million, not chump change.

But again, like $125 million, not chump change.

No, no, it's a lot of money.

No, no, it's a lot of money.

but relative to their overall revenue, yeah, it's still pretty small.

but relative to their overall revenue, yeah, it's still pretty small.

Yeah, it's pretty small.

Yeah, it's pretty small.

but you know, I mean.

but you know, I mean.

it's early days.

it's early days.

It's early, yeah, and they specifically said that that's just for those new standalone offerings.

It's early, yeah, and they specifically said that that's just for those new standalone offerings.

Yeah, that's not including the existing subscriptions, right?

Yeah, that's not including the existing subscriptions, right?

Yeah, or the value add that they're getting from AI there.

Yeah, or the value add that they're getting from AI there.

So the Firefly app, you know, they keep talking about this and how it's web-based, right?

So the Firefly app, you know, they keep talking about this and how it's web-based, right?

It has video and ideation capabilities, and like they even talked about potentially integrating it with like Photoshop and Express Web.

It has video and ideation capabilities, and like they even talked about potentially integrating it with like Photoshop and Express Web.

Yeah, which would be huge.

Yeah, which would be huge.

It'd be huge, yeah.

It'd be huge, yeah.

Yeah, that feels like that's where the... That's where the money's at, I think, in the future.

Yeah, that feels like that's where the... That's where the money's at, I think, in the future.

right?

right?

I think so, yeah.

I think so, yeah.

And they're, they're also launched or they've launched, yeah, different subscription tiers within Firefly, right?

And they're, they're also launched or they've launched, yeah, different subscription tiers within Firefly, right?

So you know, you've got your standard, your pro, your premium, yeah.

So you know, you've got your standard, your pro, your premium, yeah.

So again, it's like, it's almost like a separate business within Adobe.

So again, it's like, it's almost like a separate business within Adobe.

That's a whole ecosystem of AI.

That's a whole ecosystem of AI.

right?

right?

Yeah, it's a little ecosystem.

Yeah, it's a little ecosystem.

Yeah, it's not just like a feature, it's like a whole product line.

Yeah, it's not just like a feature, it's like a whole product line.

Exactly.

Exactly.

But then the other kind of interesting thing that came out of this earnings call, yeah, is like how they're reporting their revenue now, right?

But then the other kind of interesting thing that came out of this earnings call, yeah, is like how they're reporting their revenue now, right?

Yeah, they've kind of like moved away from the old school, like creative cloud versus document cloud, right?

Yeah, they've kind of like moved away from the old school, like creative cloud versus document cloud, right?

AND NOW THEY'RE DOING IT BY LIKE BUSINESS PROFESSIONALS AND CONSUMERS, OKAY?

AND NOW THEY'RE DOING IT BY LIKE BUSINESS PROFESSIONALS AND CONSUMERS, OKAY?

VERSUS UM CREATIVE AND MARKETING PROFESSIONALS.

VERSUS UM CREATIVE AND MARKETING PROFESSIONALS.

YEAH, IT'S INTERESTING.

YEAH, IT'S INTERESTING.

AND LIKE YEAH, WHAT'S INTERESTING THERE IS YEAH, THE BUSINESS PROFESSIONALS AND CONSUMERS GROUP ACTUALLY HAD WAY STRONGER GROWTH.

AND LIKE YEAH, WHAT'S INTERESTING THERE IS YEAH, THE BUSINESS PROFESSIONALS AND CONSUMERS GROUP ACTUALLY HAD WAY STRONGER GROWTH.

YEAH, THEY DID LIKE FIFTEEN PERCENT.

YEAH, THEY DID LIKE FIFTEEN PERCENT.

FIFTEEN PERCENT YEAR OVER YEAR.

FIFTEEN PERCENT YEAR OVER YEAR.

YEAR OVER YEAR, VERSUS THE CREATIVE AND MARKETING PROFESSIONALS, WHICH WAS ONLY AT TEN PERCENT.

YEAR OVER YEAR, VERSUS THE CREATIVE AND MARKETING PROFESSIONALS, WHICH WAS ONLY AT TEN PERCENT.

Yeah, and like an analyst actually called this out, right?

Yeah, and like an analyst actually called this out, right?

Yeah, they were like, you know, hey, does this mean that like the business and consumer products have like faster sales cycles?

Yeah, they were like, you know, hey, does this mean that like the business and consumer products have like faster sales cycles?

Is it like easier to get people to adopt that stuff?

Is it like easier to get people to adopt that stuff?

Is there something about those products that's maybe a little more, you know, approachable for AI or something like that?

Is there something about those products that's maybe a little more, you know, approachable for AI or something like that?

And you know, Shantana was like, well, you got to remember the creative and marketing professional growth.

And you know, Shantana was like, well, you got to remember the creative and marketing professional growth.

Yeah.

Yeah.

It's like that includes Gen Studio, right?

It's like that includes Gen Studio, right?

Which by the way, they're saying is a one billion dollars book of business.

Which by the way, they're saying is a one billion dollars book of business.

Wow.

Wow.

And then it also includes AEP, right?

And then it also includes AEP, right?

And like their apps, which is also another billion.

And like their apps, which is also another billion.

Yeah.

Yeah.

So he's basically saying like, yeah, you got to, you got to remember that those are huge businesses.

So he's basically saying like, yeah, you got to, you got to remember that those are huge businesses.

Yeah.

Yeah.

Huge.

Huge.

And they're addressing like this whole content supply chain.

And they're addressing like this whole content supply chain.

The entire content supply chain.

The entire content supply chain.

Right.

Right.

And he's like.

And he's like.

That's a big untapped opportunity, right?

That's a big untapped opportunity, right?

So he's basically saying, don't worry, that growth rate is going to, it's going to catch up.

So he's basically saying, don't worry, that growth rate is going to, it's going to catch up.

Yeah, as Firefly subscriptions ramp up and as Gen Studio, you know, adoption gets going.

Yeah, as Firefly subscriptions ramp up and as Gen Studio, you know, adoption gets going.

Yeah, more people adopt it.

Yeah, more people adopt it.

Yeah.

Yeah.

And then, you know, that kind of segways into like, yeah, why the heck are they changing how they're categorizing revenue.

And then, you know, that kind of segways into like, yeah, why the heck are they changing how they're categorizing revenue.

right?

right?

Yeah, it's a big change.

Yeah, it's a big change.

Like, why move away from Creative Cloud, Document Cloud?

Like, why move away from Creative Cloud, Document Cloud?

Yeah.

Yeah.

is this just like... Like, is there something deeper there?

is this just like... Like, is there something deeper there?

Some accounting trickery, or is there something more strategic going on?

Some accounting trickery, or is there something more strategic going on?

Yeah, well, you know, they're saying, yeah, it's because of this whole like cross cloud offering thing, right?

Yeah, well, you know, they're saying, yeah, it's because of this whole like cross cloud offering thing, right?

Right.

Right.

They're really focusing on integrated solutions for different customer groups.

They're really focusing on integrated solutions for different customer groups.

This whole one Adobe thing.

This whole one Adobe thing.

right?

right?

One Adobe, yeah.

One Adobe, yeah.

They keep talking about.

They keep talking about.

and it's like.

and it's like.

you know the old way of doing it just didn't really reflect how people are using their products and how they're selling them.

you know the old way of doing it just didn't really reflect how people are using their products and how they're selling them.

right?

right?

Because especially with things like gen studio, right?

Because especially with things like gen studio, right?

Studio which is combining like you know creative cloud express, firefly services and experience cloud, right?

Studio which is combining like you know creative cloud express, firefly services and experience cloud, right?

It's like it's all mixed in together.

It's like it's all mixed in together.

Yeah.

Yeah.

Like how do you even, how do you even separate it out?

Like how do you even, how do you even separate it out?

Yeah.

Yeah.

you can't really.

you can't really.

You can't.

You can't.

So Gen Studios, like that's like the poster child for this whole one and over thing.

So Gen Studios, like that's like the poster child for this whole one and over thing.

Exactly.

Exactly.

It's like this integrated platform that's supposed to do everything.

It's like this integrated platform that's supposed to do everything.

It's supposed to do everything.

It's supposed to do everything.

Yeah.

Yeah.

But they're saying, yeah, the new way of categorizing it's going to give us better insight into how their strategy is actually playing out, right?

But they're saying, yeah, the new way of categorizing it's going to give us better insight into how their strategy is actually playing out, right?

Yeah, especially around this idea of like the intersection of productivity and creativity, and then creativity and marketing.

Yeah, especially around this idea of like the intersection of productivity and creativity, and then creativity and marketing.

And then they even said it's going to address like feedback that's getting about Acrobat being like in both of the old cloud categories.

And then they even said it's going to address like feedback that's getting about Acrobat being like in both of the old cloud categories.

Yeah, which was always confusing.

Yeah, which was always confusing.

It was confusing.

It was confusing.

Like where does Acrobat actually fit?

Like where does Acrobat actually fit?

So it's like, yeah, it's like they're cleaning up their structure, their reporting structure, but it also kind of feels like they're.

So it's like, yeah, it's like they're cleaning up their structure, their reporting structure, but it also kind of feels like they're.

They're really trying to highlight this whole like one Adobe thing.

They're really trying to highlight this whole like one Adobe thing.

Yeah, this idea that everything is integrated.

Yeah, this idea that everything is integrated.

Everything's integrated.

Everything's integrated.

Yeah.

Yeah.

Yeah.

Yeah.

And that's like, that's their big AI play.

And that's like, that's their big AI play.

Yeah.

Yeah.

Right.

Right.

Yeah, it seems like it's like instead of having these separate AI features, they're like, no, our whole platform is going to be AI powered.

Yeah, it seems like it's like instead of having these separate AI features, they're like, no, our whole platform is going to be AI powered.

Yeah.

Yeah.

And that, you know, that feeds into the demand that they're seeing.

And that, you know, that feeds into the demand that they're seeing.

Right.

Right.

From enterprises.

From enterprises.

Right.

Right.

The enterprise.

The enterprise.

Yeah.

Yeah.

Huge, huge.

Huge, huge.

right.

right.

Yeah.

Yeah.

They're talking about Firefly services and custom models.

They're talking about Firefly services and custom models.

Yeah.

Yeah.

And how these big companies want to use that stuff to scale their content production.

And how these big companies want to use that stuff to scale their content production.

Yeah, to get like on brand content.

Yeah, to get like on brand content.

Yeah.

Yeah.

Doubt.

Doubt.

Yeah.

Yeah.

And they give some examples, right?

And they give some examples, right?

Yeah, like Deloitte Digital.

Yeah, like Deloitte Digital.

IBM, yeah.

IBM, yeah.

Mattel, Mattel, yeah, Tapestry, Tapestry, yeah, Tapestry is doing a really interesting thing where they're implementing like a digital twin workflow.

Mattel, Mattel, yeah, Tapestry, Tapestry, yeah, Tapestry is doing a really interesting thing where they're implementing like a digital twin workflow.

Oh wow, using custom models and Firefly.

Oh wow, using custom models and Firefly.

That's so cool, yeah.

That's so cool, yeah.

So it's like they're using AI to create like digital versions of their products, yeah, and then they can test different things and see how they perform in the digital world before they actually manufacture them.

So it's like they're using AI to create like digital versions of their products, yeah, and then they can test different things and see how they perform in the digital world before they actually manufacture them.

That's, that's amazing.

That's, that's amazing.

It's crazy.

It's crazy.

Yeah, and then Jen Studio for performance marketing.

Yeah, and then Jen Studio for performance marketing.

Yeah, that's also gaining traction.

Yeah, that's also gaining traction.

Like they're supporting all these different ad platforms now.

Like they're supporting all these different ad platforms now.

Right, yeah, Google, Meta, yeah, all the big ones, all the big ones.

Right, yeah, Google, Meta, yeah, all the big ones, all the big ones.

And then they're partnering with like agencies and stuff.

And then they're partnering with like agencies and stuff.

Yeah, they're really trying to push that platform.

Yeah, they're really trying to push that platform.

pushing it hard.

pushing it hard.

Yeah, so it's like, yeah, it's like they're kind of hedging their bets a little bit, a little bit.

Yeah, so it's like, yeah, it's like they're kind of hedging their bets a little bit, a little bit.

Yeah, it's like they're still integrating AI into their existing products, right?

Yeah, it's like they're still integrating AI into their existing products, right?

But they're also like, yeah, really pushing these new standalone AI products.

But they're also like, yeah, really pushing these new standalone AI products.

And then they're also like, yeah, going hard after the enterprise.

And then they're also like, yeah, going hard after the enterprise.

Yeah, it's almost like a three pronged approach.

Yeah, it's almost like a three pronged approach.

Yeah, it is.

Yeah, it is.

Yeah.

Yeah.

And you know, they're saying that like the adoption rates, yeah, are strong for the AI features in their existing products.

And you know, they're saying that like the adoption rates, yeah, are strong for the AI features in their existing products.

Right.

Right.

Like thirty five percent of Photoshop's monthly active users are using the generative AI stuff.

Like thirty five percent of Photoshop's monthly active users are using the generative AI stuff.

That's pretty impressive.

That's pretty impressive.

Yeah, and Lightroom is at thirty percent.

Yeah, and Lightroom is at thirty percent.

Yeah, that's not bad.

Yeah, that's not bad.

Not bad.

Not bad.

Especially for a company like Adobe, which is, you know, kind of known for its like legacy products.

Especially for a company like Adobe, which is, you know, kind of known for its like legacy products.

Yeah, the old, you know.

Yeah, the old, you know.

the old guard.

the old guard.

The old guard, yeah.

The old guard, yeah.

But then.

But then.

you know firefly people have generated over 20 billion assets with that wow that's crazy yeah and like their video model which they launched in february yeah that's that's apparently killing.

you know firefly people have generated over 20 billion assets with that wow that's crazy yeah and like their video model which they launched in february yeah that's that's apparently killing.

it yeah it's doing really well i mean they're saying that 90 percent of paid firefly app users are generating videos.

it yeah it's doing really well i mean they're saying that 90 percent of paid firefly app users are generating videos.

So they're, they're really using that video feature.

So they're, they're really using that video feature.

which is not surprising.

which is not surprising.

I mean.

I mean.

video is huge, video is huge.

video is huge, video is huge.

yeah.

yeah.

And Adobe is, you know, they're kind of the leader, yeah, in the video editing space.

And Adobe is, you know, they're kind of the leader, yeah, in the video editing space.

in the video editing.

in the video editing.

yeah.

yeah.

So it makes sense that they're pushing AI in that area as well.

So it makes sense that they're pushing AI in that area as well.

But they're also, they're also introducing new AI features into like Premiere Pro and After Effects, yeah.

But they're also, they're also introducing new AI features into like Premiere Pro and After Effects, yeah.

We talked about like this media intelligence thing in Premiere Pro, yeah, that's pretty cool where you can.

We talked about like this media intelligence thing in Premiere Pro, yeah, that's pretty cool where you can.

Like find footage more quickly using natural language queries.

Like find footage more quickly using natural language queries.

Yeah, yeah, so you can just like type in what you're looking for.

Yeah, yeah, so you can just like type in what you're looking for.

Yeah, it's like find me all the shots of like a sunset on a beach, you know that kind of thing.

Yeah, it's like find me all the shots of like a sunset on a beach, you know that kind of thing.

Yeah, and then automated caption translation.

Yeah, and then automated caption translation.

Yeah.

Yeah.

that's huge for you know for video editors.

that's huge for you know for video editors.

Yeah, for workflows, yeah, huge for workflows, yeah.

Yeah, for workflows, yeah, huge for workflows, yeah.

So okay, so they're doing a lot of stuff.

So okay, so they're doing a lot of stuff.

Yeah, they're doing a ton.

Yeah, they're doing a ton.

but like let's go back to the original point.

but like let's go back to the original point.

Yeah, like are there actually headwinds?

Yeah, like are there actually headwinds?

Right, are there reasons to be concerned?

Right, are there reasons to be concerned?

Like is there something deeper here?

Like is there something deeper here?

Yeah, that that we should be like.

Yeah, that that we should be like.

that we should be worried about.

that we should be worried about.

worried about.

worried about.

Yeah, because like on the surface, yeah.

Yeah, because like on the surface, yeah.

things are looking good.

things are looking good.

They are, yeah.

They are, yeah.

I mean revenue is growing.

I mean revenue is growing.

revenue is growing, but like that explicit revenue from the new AI products.

revenue is growing, but like that explicit revenue from the new AI products.

yeah, it's still pretty small.

yeah, it's still pretty small.

It's small compared to their total revenue.

It's small compared to their total revenue.

Yeah, it's like.

Yeah, it's like.

you know, and there's, there's a lot of pressure for these new offerings to really scale up.

you know, and there's, there's a lot of pressure for these new offerings to really scale up.

To scale, yeah, like they have to, they have to become material to their revenue.

To scale, yeah, like they have to, they have to become material to their revenue.

Yeah, or else, you know, investors are going to start asking questions like, hey.

Yeah, or else, you know, investors are going to start asking questions like, hey.

what's going on here?

what's going on here?

Yeah, like where's the, where's the return on investment?

Yeah, like where's the, where's the return on investment?

Exactly.

Exactly.

And then like the whole thing about, yeah, you know, the business and consumer segment going faster.

And then like the whole thing about, yeah, you know, the business and consumer segment going faster.

Yeah.

Yeah.

That might be a sign, right?

That might be a sign, right?

It could be, yeah.

It could be, yeah.

That the AI features, yeah, they're being adopted more quickly for like general productivity stuff, right?

That the AI features, yeah, they're being adopted more quickly for like general productivity stuff, right?

Rather than like these more complex creative workflows.

Rather than like these more complex creative workflows.

which you know, it makes sense.

which you know, it makes sense.

I mean, if you're, if you're a business user, yeah, and you can use AI to like automate some of your tasks, yeah, or to make things more efficient, right?

I mean, if you're, if you're a business user, yeah, and you can use AI to like automate some of your tasks, yeah, or to make things more efficient, right?

You're going to jump on that.

You're going to jump on that.

Yeah, because you're looking for like immediate return on investment.

Yeah, because you're looking for like immediate return on investment.

Yeah, exactly.

Yeah, exactly.

Whereas if you're a creative professional, right?

Whereas if you're a creative professional, right?

You know, your workflows are a lot more complex.

You know, your workflows are a lot more complex.

Complex.

Complex.

yeah.

yeah.

It's not as easy to just plug in AI and see immediate results.

It's not as easy to just plug in AI and see immediate results.

Right?

Right?

It's like it's a more nuanced integration.

It's like it's a more nuanced integration.

Exactly.

Exactly.

And then, you know, and then the revenue categorization thing.

And then, you know, and then the revenue categorization thing.

Yeah, you know, while they're saying it's all about transparency.

Yeah, you know, while they're saying it's all about transparency.

It's all about this one Adobe strategy, like couldn't it also be that they're trying to mask like slower growth?

It's all about this one Adobe strategy, like couldn't it also be that they're trying to mask like slower growth?

Yeah.

Yeah.

potentially in their flagship products.

potentially in their flagship products.

I MEAN, IT'S POSSIBLE, YEAH, IT'S POSSIBLE.

I MEAN, IT'S POSSIBLE, YEAH, IT'S POSSIBLE.

IT'S HARD TO SAY FOR SURE, YEAH, BUT IT'S SOMETHING TO KEEP AN EYE ON.

IT'S HARD TO SAY FOR SURE, YEAH, BUT IT'S SOMETHING TO KEEP AN EYE ON.

IT'S SOMETHING TO WATCH, YEAH, FOR SURE.

IT'S SOMETHING TO WATCH, YEAH, FOR SURE.

AND THEN LIKE THE LAST KIND OF YOU KNOW, YEAH, POTENTIAL HEADWIND IS, YEAH, YOU KNOW, WHILE THEY'RE TALKING ABOUT ALL THIS ENTERPRISE ADOPTION, YEAH, THE EARNINGS CALL DOESN'T REALLY ADDRESS, RIGHT?

AND THEN LIKE THE LAST KIND OF YOU KNOW, YEAH, POTENTIAL HEADWIND IS, YEAH, YOU KNOW, WHILE THEY'RE TALKING ABOUT ALL THIS ENTERPRISE ADOPTION, YEAH, THE EARNINGS CALL DOESN'T REALLY ADDRESS, RIGHT?

THE COMPETITIVE LANDSCAPE.

THE COMPETITIVE LANDSCAPE.

YEAH, YEAH, IT'S KIND OF SILENT ON THAT.

YEAH, YEAH, IT'S KIND OF SILENT ON THAT.

LIKE WHAT ABOUT ALL THESE NEW.

LIKE WHAT ABOUT ALL THESE NEW.

AI native, right?

AI native, right?

Creative tools that are popping up, that are popping up, yeah, left and right.

Creative tools that are popping up, that are popping up, yeah, left and right.

How are they going to compete with that?

How are they going to compete with that?

Yeah, like is Firefly going to be enough to fend off these, these new, you know, AI startups?

Yeah, like is Firefly going to be enough to fend off these, these new, you know, AI startups?

Because those startups, they're just focused on AI exactly.

Because those startups, they're just focused on AI exactly.

They're laser focused, laser focused.

They're laser focused, laser focused.

Yeah, they're not trying to do everything.

Yeah, they're not trying to do everything.

They're just trying to do AI really well.

They're just trying to do AI really well.

Right?

Right?

So it's like.

So it's like.

you know, this earnings call, it gives us a lot to think about, right?

you know, this earnings call, it gives us a lot to think about, right?

It's like Adobe's clearly moving in the right direction.

It's like Adobe's clearly moving in the right direction.

They're innovating, they're integrating AI, but there's still a lot of questions.

They're innovating, they're integrating AI, but there's still a lot of questions.

Yeah, a lot of unanswered questions.

Yeah, a lot of unanswered questions.

Unanswered questions.

Unanswered questions.

Yes, like how quickly can they scale these new products?

Yes, like how quickly can they scale these new products?

Can they actually make these AI features sticky?

Can they actually make these AI features sticky?

Yeah.

Yeah.

sticky.

sticky.

Like, you know, can they get people to really use them and rely on them?

Like, you know, can they get people to really use them and rely on them?

And then how are they going to compete with all these new AI-focused startups?

And then how are they going to compete with all these new AI-focused startups?

Yeah.

Yeah.

And it's like as AI keeps evolving, yeah, you know, is this strategy enough?

And it's like as AI keeps evolving, yeah, you know, is this strategy enough?

Yeah, is integrating AI into these existing products, yeah, going to be enough to keep them on top?

Yeah, is integrating AI into these existing products, yeah, going to be enough to keep them on top?

Yeah, or are we going to see like, yeah, entirely new AI native platforms emerge?

Yeah, or are we going to see like, yeah, entirely new AI native platforms emerge?

Native platforms, yeah.

Native platforms, yeah.

that just completely change the game.

that just completely change the game.

They just blow everything out of the water, yeah.

They just blow everything out of the water, yeah.

It's a good question.

It's a good question.

Yeah, something to think about.

Yeah, something to think about.

Something to think about.

Something to think about.