Adobe Inc.

Good day, and welcome to the Q1 FY 2022 Adobe Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Jonathan Voss. Please go ahead, sir.

Good afternoon, and thank you for joining us. With me on the call today are Shantanu Narayan, Adobe's Chairman and CEO, David Woodwani, President of Digital Media, Anil Chakravarty, President of Digital Experience, and Dan Dern, Executive Vice President and CFO. On this call, which is being recorded, we will discuss Adobe's first quarter fiscal year 2022 financial results. You can find our Q1 press release as well as PDFs of our prepared remarks and financial results on Adobe's Investor Relations website. The information discussed on this call, including our financial targets and product plans, is as of today, March 22nd, and contains forward-looking statements that involve risk, uncertainty, and assumptions. Actual results may differ materially from those set forth in these statements. For a discussion of these risks, you should review the factors discussed in today's press release and in Adobe's SEC filings. On this call, we will discuss GAAP and non-GAAP financial measures. Our reported results include GAAP growth rates as well as adjusted growth rates in constant currency that account for an extra week in the year-ago quarter. During this presentation, Adobe's executives will refer to adjusted growth rates unless otherwise stated. Reconciliations between the two are available in our earnings release and on Adobe's investor relations website. I will now turn the call over to Shantanu.

Thanks, Jonathan. Good afternoon, and thank you for joining us. Before I discuss our Q1 results, I want to acknowledge the horrifying and heartbreaking crisis in Ukraine. The pain and suffering of millions of innocent civilians is incredibly tragic, and our thoughts and prayers are with the Ukrainian people. Adobe joins the global community in taking a stand by stopping all new sales of our products and services in Russia. The Adobe Foundation has made grants to aid humanitarian relief efforts. I'm proud of how our teams have come together and continue to successfully manage our business throughout the most challenging of times, while focusing on delighting customers in the long-term growth initiatives for the company. Adobe has always had a strong purpose-driven culture, and that has never been more evident than it is today. Adobe's mission to change the world through digital experiences is more critical than ever before. Everywhere we look, whether it is in entertainment, education, or the enterprise, content is fueling the global economy. The democratization of creativity, emergence of new ways to work and learn from anywhere, and the business mandate for personalized customer experiences underscore the immense opportunities we have as a company. Our strategy to unleash creativity for all, accelerate document productivity, and power digital businesses is working. Our innovation engine is delivering category-leading products, services, and platforms across Creative Cloud, Document Cloud, and Experience Cloud. Adobe had a strong Q1. We achieved a record $4.26 billion in revenue, representing 17% year-over-year growth on an adjusted basis. Gap earnings per share for the quarter were $2.66, and non-gap earnings per share was 337. In our digital media business, we drove strong growth in both Creative Cloud and Document Cloud, achieving 3.11 billion in revenue. Net new digital media annualized recurring revenue, or ARR, was 418 million, and total digital media ARR exiting Q1 grew to 12.57 billion. In our experience cloud business, we built on our Q4 momentum, achieving 1.06 billion in revenue, and subscription revenue was 932 million for the quarter. I'm pleased to have David Wadhwani, President Digital Media, and Anil Chakravarti, President Digital Experience, on this call to share more about our momentum in the digital media and digital experience businesses, respectively.