Adobe Inc. (ADBE) Earnings Call Transcript & Summary

Welcome, everyone, to Adobe MAX and our Investor Meeting for Fall 2023. Great to see so many folks here in the room. Welcome also to all the folks joining on the webcast as well as the senior Adobe employees who are here, most of the members of our Board of Directors. We have a really exciting event planned, and I'm excited to jump right into it. What we're going to do today is different than I think any investor meeting Adobe has done, at least in my tenure. Rather than the financial update that we've given in the past, this event is all about innovation. So I know there are many of you out there that love the pie charts and brought your protractors. You won't be needing those. You can keep those tucked away. And we're going to dive in and give a bunch of previews not just about the innovations that we shared this morning at MAX and things that we've delivered in 2023, but forward-looking innovations and previews of where we're going. Before we jump in, I want to talk really quickly about what we did in this room last year. As we were preparing for this, I went back and I rewatched the event from last year. And in the middle of the presentation, there was a 2-minute video, pretty low-key, and it was a preview on some of the things that we were working in our technology labs in the creative business. And when you go back and watch the video now, you realize what you saw was early iterations of Generative Fill in Photoshop, Generative Expand, Firefly, Text Effects and Express. And it's amazing to think that in the year that passed from then to now, these features went from early incubation to global releases in our products, and they've been used billions of times. The reason I start there is, today, we have a lot more to showcase than a 2-minute, low-key video. So when you think about the impact going forward, frankly, it's the sort of thing that makes you want to be at a company like Adobe. I'm really excited for where we're going. Before I jump into the agenda, just quickly on the legal disclaimer. There are a lot of forward-looking statements we'll be making that are subject to risk and uncertainty. Please do review the legal disclaimer language as well as the risk factors in our 10-K and other SEC filings. Also, you're going to see a lot of previews of products that are currently in development that are not yet released. Consider any statement around the availability of those products to be a forward-looking statement that would be subject to change as well. Let's take a look at the agenda. So just to underscore how important innovation is right now to Adobe, you're going to hear from Adobe's entire executive team. So the innovation agenda permeates everything we're doing, our products and how we're working internally. So Shantanu is going to kick it off just talking about Adobe's innovation engine. Scott then will talk about how our innovations are reshaping the digital world around us with his own take on what all of this means for the future. David and Anil then will put this in the context of our digital media and digital experience businesses, and they'll share a bunch of video that shows some of those technologies that are coming. Dana then is going to talk about how Adobe is doing all of this innovation responsibly and how we're even engaged in the global conversation with regulators around how to think about the impact that all of these technologies have in the world. Gloria then is going to talk about innovation inside of Adobe, how we're building it, but also how we're innovating and changing the way we work. And then Dan, at the end, will talk about how all of this wrapped together drives our growth agenda forward. Then we'll have Q&A at the end. In the middle of the program, between David and Anil, we will have a quick break, and then we'll roll a few fun videos as folks are coming in after the break to kick off the back half of the presentation. And with that, I will kick it off to Shantanu.

I must confess, this is a little new for financial analyst meetings where people clap. I mean we're normally accustomed to not having people clap. So it's perfectly fine at the end of the presentations, if we just pass it on to the next person. But thanks, Jonathan. And I'd also like to add my welcome to everybody here at MAX. I did want to acknowledge that we have a number of folks from our Board of Directors as well here joining us today, as well as members of the senior executive team, in addition to all of the presenters. And I'd like to start by reflecting that while I've been here for 25 years, it is the first meeting that our beloved Co-Founder, John Warnock, is not with us anymore. As you know, he passed away a few months ago. John was just this incredible technology visionary. He was a mentor of mine. And what I do know is that in my last conversation with him as we were talking about AI, he could not have been more proud of what Adobe was doing and the potential of what it is. So I certainly -- and a lot of us miss John. This focus is all about innovation. So for the rest of the time that I have, I'm going to talk about innovation across all of our 3 clouds. And it's a particular emphasis on AI. So as you hear all of the speakers, if you don't hear some of the things that you were normally accustomed to us talking about on products, it's because we decided to take a particular focus on AI and talk a lot about AI. And Jonathan said this a little bit. But when you look at the kinds of innovation that we have delivered over the last year, I think the pace of innovation at Adobe has just accelerated. And the customer response to that has been unbelievably positive. And the advances that we're delivering, whether it's Creative Cloud, Document Cloud or Experience Cloud, I think they're enabling us big picture to just attract a much larger set of customers and we're providing way more value to existing customers. So as we think about it from a financial perspective, it's clearly how do we get more users into the fold; and for each user, how do we deliver value and therefore, get more revenue per user. So that big picture is what we are doing. On the creative side, since we will be spending time on AI, what people may take for granted is all of the new things that we had talked about a few years ago, the advances that we needed to do in collaboration, what we were doing in our flagship applications with things like speech and text-based editing in Premiere Pro, the new 3D workspace that we have, what we've done with Lightroom Mobile, which just continues to gain massive adoption especially as we've added video and the capability for you to also look at video on your phone and integrate that into Lightroom. Adobe Express. I know we've been talking about Adobe Express for a while. We completely rewrote that from scratch. It's a brand-new platform, with the intention to really serve this constituency where we talk about it as Creativity for All. And Adobe Express actually is built on the tremendous technology platform that we have, whether it's Photoshop, Illustrator, Premiere, all of that technology. You saw some parts of it as you can take an Illustrator or a Photoshop-native file and bring that in. But I think the team that's done that has done an amazing job of delivering this new platform while continuing to ensure compatibility with what people were doing with the old version of Express. Clearly, the news today is going to be about Firefly. And I think it was really important to us when we started to think about AI, that we had to invest in our own generative models because we said to ourselves, we're not going to outsource what is core to our business. And when you think about imaging or video or illustration or animation or 3D or vectors, it was really clear to us that we were going to spend the time and effort to build our models as well as integrate them in the interfaces. And I'll talk a lot more about that. And the fact that we've had 3 billion generations with Firefly in just a few months, I think it's just a reflection of how we've addressed a need in the marketplace. What's even more exciting for us is actually the amount of Firefly generations that are happening within our interfaces. And I think it just reflects for companies like us if we can enable our interfaces that people are accustomed to, there is an advantage to when people use our products and incumbency in this, assuming we innovate at the right place, I think it helps us more than any other company in this space. So that's one of the things that I wanted to touch on. Today, we announced that Firefly for enterprise is now open for business. In other words, we can have companies if they want to take our core imaging model and they want to customize it or they want to tune it in order to make sure that it's commercially safe for every marketer and that company to use, that's available. And so the idea there is to ensure that whether you're a creative team or you're a marketing team, for every campaign, you can scale content creation like never before. So what we are doing with Firefly for enterprise is also there. Anil and David, I know, will touch on how this actually expands to the offering that we have with enterprise customers. We continue to work on collaboration, everything that we're doing around assets and application surfaces and workflows. Frame.io, I think we touched on that again earlier this morning where Frame.io can be used for collaboration not just for video, but for other media types. So just across Creative Cloud, end-to-end. From Express, all the way to the most sophisticated power and precision applications that we have, massive innovation. On the Document Cloud side, this notion that we've been talking about, Acrobat everywhere, the verbs, how do we ensure distribution for everything that we're doing with Acrobat, integrating Acrobat and Sign, ensuring that it's integrated also into other things like Microsoft Teams and other third-party applications. I think the team has done an amazing job. Without sneaking all of it, David is going to be showing you some really cool new technology of how we are integrating AI into Acrobat later on. But this entire new Acrobat ecosystem with a complete new UI and redesign, the adoption that we're seeing for new features and how it becomes even more of an indispensable application on the desktop, we're really pleased. And as you know, with our numbers, Acrobat continues to perform exceedingly well as a business. The other thing that we've done is how do we make sure that the different products that we have -- so today, what you can actually do is between Express and Acrobat, there's massive integration. And what we think is that anybody who wants to create this document, even if you have a PDF that was sent to you, you can now integrate that and get that into Express and do a lot with it. So just making sure that we're both leveraging and taking advantage of the various platforms that we have, I'm really pleased with how we're executing on that front as well. And then on the Experience platform side, I think we've touched on a few years ago how as a result of all of the products that we had, it was really important for us to build this real-time customer data platform where customers zero for that, but just ensuring because we had grown through organic innovation and inorganic acquisition, we needed this underlying infrastructure to ensure that all our products work well together and we provided more value. And that's really working out. Experience platform is seeing massive velocity in the business. And in addition to that, we've actually been rewriting things like the Adobe Journey Optimizer, what we're doing with customer journey analytics. So that success has been good to see. But we've also taken the core real-time CDP that was built, perhaps, for retail and financial services and said, how can we make sure that it's leveraged across other verticals like health care? And so the fact that it's HIPAA-ready, and you can create this truly 360-degree understanding of customers in a regulated industry like health care is something that we're proud of. But in addition to real-time CDP and the complete rearchitecture of all of our products, we also launched brand-new products. So whether it's Adobe Product Analytics, we've talked about PLG and how we use PLG. Product analytics was a space where we didn't have our own offering. We decided to build that from scratch. That's out there now so that you can combine what you can do on the web as well as with the product to create complete analytics, as well as the Adobe Mix Modeler. So at the front of the funnel as people are spending money and they want to understand the attribution of their marketing spend. So just again, tremendous innovation around the Experience Cloud side, both with individual new products that we can then scale through solution selling, but also an integration into the entire platform so that we can continue to drive transformational deals. So some really great progress in that. And all of this comes together between the 3 clouds through this comprehensive content supply chain that we've been talking to you about. And so that helps content creation and delivery across all of the different constituencies that we serve. And that's been exciting to see because whether you're Publicis or WPP or Havas, all of these companies are now recognizing that they need to have something like GenStudio of this content supply chain implemented both for them as well as all of the content that they as agencies are producing, but also create custom versions of that for every single enterprise that they're serving. So some really great work that we've done around Adobe GenStudio and Adobe Experience platform and frankly, the combination of that with the Creative Cloud. And we all do this with the sense of how do we assume responsibility in the industry. I'm really pleased to see how successful, and Dana drove this, the content authenticity initiative, which we have content credentials. Think of it as a nutritional label. We're certainly ahead of what's happening right now, and Dana is going to touch on all the governments and how they are talking about how companies need to do that. We're so way ahead of that. We have content credentials in our applications. And I think there are almost 2,000 companies that have now signed up for the content authenticity initiatives. So taking responsibility for the fact that we create the content is again something that I'm proud of. And last but certainly not least, we recognize that partnering with the ecosystem that's out there, the major players. And so what I tried to do here was just highlight a couple of them. What we've done with Microsoft, who has been a partner of ours for many years as it relates to our products being available on Azure, what we are doing around the extension of Acrobat and Microsoft Edge, which is getting hundreds of millions of potential users for us. That adds to what we've already done with Chrome and Acrobat. So I think the team successfully said this PDF is such an important standard for all documents in the world. And the fidelity with which that needs to be delivered needs to be an Adobe-level fidelity. It had started to get fragmented. But as a result of the work that the teams have done, PDF right now, whether it's in Chrome, whether it's in Edge, whether it's in Adobe Reader is all the Adobe PDF. So really proud of the work that we've done there. Firefly, certainly, with Google and Bard. We've partnered with them so that it's integrated into that. And Amazon recently announced that they, as a result of some of the demand that they're also seeing for the Adobe Experience platform, wanted us to partner with them to get AEP on AWS. And so we announced that we were going to be delivering AEP on AWS. So this is not just about the innovation that Adobe is doing within the company. It's also about innovation that we're doing with the third-party ecosystem, which frankly leverages the investment that we're making. And clearly, all of that, while we are not going to talk too much about financials here, we're on track for a great fiscal '23. We significantly overachieved our initial net new ARR and EPS targets that we had announced. We're on track for our first $5 billion quarter, which is a significant milestone for us. And from my point, when we think about what's happening in Q4, we're on track for a great quarter. But as I take a step back and I think about what has fueled this growth for Adobe, you tend to think of it in terms of all of these tectonic shifts that have happened in technology. And each of these shifts actually builds on each other. And the growth, when you do this right, is exponential growth. And so whether it was the Internet era or what we are now in the AI era, done right, each one of these provides a bigger potential for us to leverage on. And as you think about what Adobe's innovation has been in each of these areas, in the Internet area, we clearly focused on making sure that we had power and precision with all of our desktop applications. And we revolutionized everything to do with imaging, video, artistic expression, pioneering electronic documents. That was fueled by what was happening both with the power of the desktop as well as the fact that these documents were now going to be shared. As you think about what we did with e-commerce and the Experience Cloud, making sure that everybody had a web infrastructure, that was again tied to make sure that we take advantage of that. On mobile, there were 2 key things for us. We always have this vision that mobile is not just a place where people are going to consume, but we want them to create. Mobile, we believe that being tethered to a computer when you want to create is the wrong thing. And so we enable all of that to happen with mobile. But the other thing that happened with mobile that I think is helping us in the AI era was the fact that all of the data therefore had to move to the cloud. And when you have all of this data in the cloud, that enables us to train our models in a responsible way. So I think my point is that with each one of these eras when 3D&I or immersive or video happens, it actually expands our available addressable opportunity. And I think we've taken real advantage of that. And so you look at any one of these disciplines that we've had, I think we have absolutely unique ways to expand on that. And I think when you think about each one of these eras as well, it's actually provided us with new opportunity to grow the number of customers. What we did when we had to move to the cloud with our own subscription business actually drove the complete evolution of the Experience Cloud. And as we continue to think about what we need to do there, it's fueling it. I've been Interim CMO for the last few months because -- and retired, and I'm having a blast. And what I realized as part of that is I actually have the ability to now understand all of this content that's being created and how we are providing all of these customer insights around marketing and product and providing this comprehensive view. So we really look at this and say that every single one of these eras has added to our opportunity. But I take a step back and I think all of these is probably dwarfed relative to what the opportunity is now in the AI era. And our leadership in AI when we had features like Vanishing Point or content Aware Fill, people always said, that's magic. How did you do that? And we created a lot of that with Adobe Sensei. And we've been infusing intelligence into all of our products. We've been saying how do we make sure we get, as I said, all of this data on the cloud so we can help train our models on it? But now I think we're bringing that together in a pace and a level of innovation that I don't think any other company at our scale is doing. And so I think that really represents a massive opportunity for us. And I'll touch a little bit more on the architecture and how this enables us to scale. So this continues to be the canvas on which we think about our opportunity. It's a similar slide to what I had last year. But I think it's hard to think of any other company that serves the span of customers that we have, from K-12 students, from consumers, marketers, creative pros, developers, right now with all the work that we're doing around API, small and medium businesses as well as the largest enterprises in the world. As we thought about AI and as we thought about what we had to do in AI, I think the initial work that we did as a team about saying, are we understanding in a deep context, the 3 building blocks, what are we doing with data, what are we doing around the models and what are we doing around the apps and interfaces, I think is the reason why you're seeing the success that Adobe has already seen. And I think this slide does a good job of that. On data. On data, the first thing that we said was that we need to ensure that we're designing this to be commercially safe. I mean we serve the creative community. If we don't recognize the IP associated with all of the content that people are creating, then people are not going to trust us. And so the challenge that we had to the team was, how do we ensure with the data that we have, we make sure that it's designed to be commercially safe and that we power these data platforms to also be able to be customized. I think it's in the second area that we were very clear upfront that we're not going to outsource the foundation models that we need. Because if we don't have access to the foundation models, in documents, in imaging, in illustration, the pace at which we can innovate, we would be dependent on somebody else. And I will say that the team has completely blown us away. We just released Image Model 2 a few months after we had Image Model 1. And I think you're going to continue to see that pace of innovation again across all of the data types that we have. And so I think really taking advantage of the data that we have in all of the models. The same thing has happened in documents what we did with Liquid Mode when we said a document that was produced decades ago, we will use AI to understand the structure and we will use that to make it responsive on a mobile device, I think is fueling the next set of innovation that you'll see from David in terms of how we can really understand PDFs, not just the PDF that you have open but the PDF you have on your desktop, the PDF you have in your knowledge enterprise as well as out there on the Internet. And so the same thing we did in DX, which is we have trillions of transactions. Are we taking advantage of those trillions of transactions to make sure that when we provide next best actions or we are providing the ability to enable personalization at scale, are we going to be significantly superior to any other solution? But I think both of those pale in comparison to the incredible pioneering work that we did in the apps and interfaces. The fact that we have Generative Color, Generative Fill, Generative Expand, Text to Template and all of the other innovation that we've seen, really reflects that each of our product teams also said, this is not just about the foundation model or the AI team building a foundation model, this is about how we can take advantage of it to best serve our customers. And the fact is, while we've said that there's over 3 billion of these generations, the vast, vast, vast majority of those generations are happening in our products because that's where people see the value. And I think that's going to continue to be a massive differentiation. So as we think of the stack, we've innovated across all 3 areas. We've innovated around how we get data, how we do these models, how we do these apps and interfaces, and we're just getting started. The other thing that we've done across all of these because I know one of the questions is what does this mean in terms of cost, what does this mean in terms of if we are creating customized models for enterprises, how do we make sure it's available? We partner. We partnered really well with the large language model providers where we don't have to build a model. We're going to leverage models that exist, but whether it's companies like NVIDIA or Microsoft or Apple or Amazon and how we think about hybrid models where you can outsource some of this processing on to either your mobile device on desktop. We're also well on that journey to making sure that we can partner with them to both provide the performance as well as the cost benefit associated with creating these things. So really some incredible work that we've done. Every year, when I sort of start, I try to think about, are there 2 or 3 areas where I want to spend my time as it relates to product innovation? I've always taken pride in the fact that I'm a product guy at heart. And there are probably 3 areas where I spend most of my time. The first one, as we've said, is AI, and we've shared a lot of that. But the other 2 that I think we've spent a lot of time as a collective management team is what we call Adobe on Adobe and what we are doing around the Adobe Experience platform to make sure that, that is significantly ahead of anybody else and what we did around this entire content supply chain. So we had this good problem about this rich product road map that we had. And we were creating -- we said how do we create enough marketing campaigns, enough content, how do we personalize this, how do we get this distributed in all geographies? And so we came together as a collective team to say, we need to make sure that the 4 building blocks that you see on this, how people are creating that? What's the initial brief whether it was the Photoshop Can campaign or whether it's the Acrobat's Got It campaign and how that's reflected in Germany versus how that's reflected in Japan? How do we think about that entire process? What's the brief? How does somebody create that brief? How do we then create all of the content? How do we put that in a marketing hub? How do we make sure that we can activate it in real time with Adobe Campaign or Adobe Journey Optimizer? And the result is what you see here. This is the studio -- GenStudio solution that we just announced. And I'm convinced that we're years ahead of where anybody else is in terms of bringing all of this together in a unified solution. And with the help of so many folks in this room, I think we created the best solution that there is to ensure that everything, from content creation, all the way out to delivery and activation, can be done in a matter of days. Scott talked earlier, and I think he may touch on how he calls macro marketing versus agile marketing. But the solution has the benefit of if you want to get up and running really quickly, you can do that. But if you want to make sure that it scales across all of the content that you're creating, and most importantly, that you understand the analytics and reporting of it, all of that's built in. So I feel really good about that. I feel really good about our own adoption. And I think Dan may touch a little on this on how we're using AEP to drive our own business. I think it was a few years ago in this meeting where I first unveiled this notion of data-driven operating model and how we believe that the data-driven operating model will drive more consistency, more predictability. I'm really convinced that GenStudio will also represent that kind of opportunity for us. So I think in summary, when we think about the AI era, we really believe that AI and specifically, I guess, gen AI, where there's a lot of interest, represents a completely new technical frontier for us. It's an accelerant and it's an accelerant, not unlike some of those other eras that have happened in the past, but it's one that builds on all of those. It has the power to become a copilot. It has the power to make our products more accessible, more productive. It has the power to enable us to have way more offerings that serve every customer, from an individual all the way to the large enterprise. And that's something that each of the speakers are going to talk a little bit about. And so our mission remains the same. For many years, you've heard us talk about changing the world through digital experiences. I think we modified that a little bit right now in this era of hyper personalization to talk about changing the world through personalized digital experiences. But I think we're uniquely set up. We have just an incredible leadership team. We're able to attract, as Gloria will tell you, the best talent in the world. It is a war for talent, but we're attracting the best. We're retaining the best because people see that the impact of their products and their innovation is experienced by millions, if not billions of people. And so fiscal '23, just to end, has been an outstanding year from an innovation perspective, which I think sets us up for the next decade to come. We have tremendous momentum in the business. I expect Q4 to be another really strong quarter at this part. It continues to be -- business is strong. And with that, I'll turn it over to Scott to really touch a little bit, as Chief Strategy Officer, on how he's setting up even more of an expansive vision for us as a company. Scott?

Thanks, Shantanu. So it's good to see you all. After 5 years as Chief Product Officer, it's been a fun year in my new role, overseeing strategy design and emerging products. And I'd love to share some perspective on some seismic shifts in the world of creativity and marketing and the opportunity for Adobe. So let's start with this new and thrilling world that we're living in right now. As humans, we've always craved stories and been engaged by creativity. But this new era enables all sorts of new experiences that ultimately raise the bar that we all have for feeling delighted and for feeling surprised. And we've also entered an era where we increasingly expect to be known by the brands in our lives. As Shantanu was saying, that's why we're so focused on personalized digital experiences going forward. And at Adobe, AI is a transformational technology that makes a lot of this possible. Of course, AI is driving trends in many industries and for many other companies that you cover, talk about it. But in many categories and scenarios, the uses of AI are really still just experiments. They're intriguing, but maybe not quite ready for prime time. And one reason is hallucination. That continues to plague many of the use cases of LLMs. But when it comes to creativity, hallucination happens to be a feature, not a bug. The user actually wants variety. They want to see the full surface area of possibility. And creativity is one of the very few areas in which AI is already having a massive practical impact on people's day-to-day work. And we're starting to see a similar impact in the world of digital experiences, where AI will enable truly personalized experiences at scale. So I'd like to talk today about some of the ways that we see this new age of creativity and personalized digital experiences changing the world. And let's just start by taking a look at some of the major shifts for the future of creativity. And the first is that we're shifting from an era where we always needed to find someone with special skills to tell our story to being able to actually tell our own story. And thanks to generative AI and easy to use tools like creative -- like Adobe Express, this is becoming accessible to everyone. We're shifting from an era in which creative pros stuck to their specialty, illustration or video, et cetera, to one in which they are only constrained by their imagination. This new wave of creative tools enables creators to actually cross mediums with ease. And as you may have seen in today's Express demo, we're trying to build products that enable us to hop in, again, more easily. And the shift from siloed creativity to a far more collaborative process continues with our multiyear efforts to take products like Photoshop and Illustrator to the web and develop capabilities like Share for Review and Frame.io, we are breaking down barriers and making it much easier for creatives to work with all of the stakeholders of creativity around them. Another shift I am particularly excited about is how AI turbocharges creative exploration. When you ask creative pros what's holding them back, you always hear an answer that goes back to one word: time. And more time allows more cycles, more discovery cycles of solutions and ultimately yields better results. And that's one of the things that this technology enables for creative pros. Finally, we are entering an era where anyone can participate in creativity. We've long talked about Creative Cloud's mission of Creativity for All. And in this new era, we're actually able to achieve our mission more than ever before. So innovation is also profoundly changing the world of digital experiences, and there are several shifts worth pointing out here as well. First, we're moving from an era of generalized experiences where we're all sort of strangers to experiences that are highly personalized, where marketing and content will be built specifically for you and your interest. Second, we're shifting from an era in which you search to an era in which you converse and ask questions. And when you need to make information -- when you need information to make a decision within any digital experience, you're really just going to converse with an AI agent that will provide answers and even suggestions you didn't even think of. We're also shifting from an era where you have had to endure the learning curve of every application to a world where our apps will actually meet us where we are. And this shift will profoundly increase the types of stakeholders that can use enterprise tools. And as a result, the discipline of marketing itself will become more democratized and less bureaucratic. In the age of social media and telling stories at the speed of social, we're just reacting to whatever the latest meme is of the day, marketing is becoming more agile and far more inclusive of many other stakeholders that are going to help brands think and act in real time. And finally, we are shifting from a world of endlessly waiting for data analysis to a world where AI will actually optimize the experiences we're delivering in real time. So I've always believed that the most impactful technology for humanity actually restores some of the sensations of the early days that we long for, but with more scale and efficiency. And I think one of those sensations is the feeling of being known. I mean if you think about it, for hundreds of thousands of years, people enjoyed a small town feel where the butcher knew your favorite cut, where the restaurateur remembered your favorite drink or meal and welcomed you by name. And then, of course, the Industrial Revolution happened and the rise of digital experiences, and we altogether lost this. But one of the greatest opportunities for companies of all kinds is to actually personalize the digital experience for every customer and make every customer feel known. I mean, for example, every shopping experience is going to become personal. When you go to a site for shoes or maybe some immersive reality experience where you're trying on shoes, the experience is going to be personalized for you. It's going to know your gender, your shoe size and what to recommend based on past preferences. Every marketing experience is going to be catered to you. Did you recently buy a shirt and maybe you're ready for the same shirt in green? Whether you're revisiting a website or getting a marketing e-mail, the communication will know the context and address you accordingly. Third, our documents are going to start talking to us. If you think about it, there's just so much collective knowledge trapped in millions and millions of documents simply because the information is hard to find. And so rather than read and struggle, we'll just converse with our documents and our documents are really going to be come alive for us. And in the coming years, the content that we consume, entertainment, gaming, immersive environments, are going to know our interest in our history and provide content that will really engage us. And finally, as we've discussed, applications are going to meet us where we are. All of these motions will be fueled by the combination of data and AI. And -- but the human element is obviously still very essential. And as we all know, there's a fine line between feeling known and feeling spite upon. And so the best brands are going to use this technology to personalize experiences as a way to really build a relationship with their customer. So we are at this beginning of a fundamental platform shift that Shantanu described earlier and it's worth discussing some of the implications of this. From the Internet era through the mobile era and then into the social era, one constant has been that a new platform spawned the demand for more content and for better content and digital experiences. And in the Internet era, every organization and many individuals, they all wanted their own website. In the mobile era, we had to reimagine all those contents on the Internet for the mobile experience. And then the social era enabled anyone to share and consume content, which massively increase demand. So we believe that the generative era will be no different. And we certainly see a step function demand for content coming in the years to come. I mean that is localized and personalized for each of us, that is mesmerizing and made for many mediums and that is customized for some of the new experiences that are more immersive on the horizon. This insatiable demand for content and the drive to create even more content to stand out and even better content will result in more creative opportunity. Now this is consistent with job growth in previous platform shifts, whether it be engineers becoming increasingly more efficient over the last few decades, the advent of no-code web builders in the early 2000s, the rise of social and user-generated videos over the last 2 decades. Through all of these changes, the need for more engineers, more web developers and video pros, these needs only grow. And the results actually from our own customer surveys are also encouraging. We're starting to really connect with our customers. We're trying to ask them what all this means for them, what they're perceiving. And right now, about 8 and 10 creative pros believe gen AI will have a positive impact on their careers by helping them create more and better content. It goes back to finding that better solution through some of the power of these tools. This new era will also result in hundreds of millions, if not billions, of communicators and consumers coming into the fold to take on new creative passions and responsibilities. 65% of communicator and consumer audience that we've surveyed believe gen AI will increase the quantity of content they create and a growing number are already starting to tinker and experiment with these tools. So let's talk about the opportunity for Adobe. We are in a unique position because our tools power creative departments, marketing organizations and knowledge workers throughout the world. And that means we do have this unique opportunity. So what does this look like? Well, first, more than ever before, people and brands are going to stand out through creative expression. Everyone's going to want to seek to deliver that better and better experience. Everyone is going to want to be participating in creating this content. Creativity is going to become more accessible to everyone as AI-powered and web-based tools boost creative confidence. I always like to say that peak creative confidence for many of us was probably at 5 years old when everything we did got put in the refrigerator. And then we realized soon that other people had skills and there were critics out there. It's really exciting, right, to restore creative confidence. I'm sure many of your graphs in your reports are going to look even more beautiful in the years to come. I mean that with love. Creative pros get more time in AI-powered surface area of discovery as the experience bar goes up. So for -- we talked about what this means for everyone else. But for creative pros, they're just going to have to stand out even more and more and more. They're going to have to use tools that help them push the possibilities of their category, and AI is certainly a key part of that. The future of experiences across e-commerce, entertainment, education, marketing are going to become hyper-personalized. And again, we have a unique opportunity to deliver on that given everything that's under the hood at Adobe. Marketing is going to evolve from a centralized discipline to a very kind of multi-stakeholder activity with many personas sharing stories at the speed of social. And as Shantanu said, this is something we're trying to push and experiment with at Adobe, and we believe every company is going to be acting this way, the macro marketing efforts and the agile real-time marketing efforts that many more people participate in. And as the world craves more story, process and meaning, human ingenuity and emotion are going to be what continue to move us. Let us not forget, right, as every brand floods the zone with content, we're going to actually seek better content with meaning. Like that's ultimately the creativity that is effective, the creativity that moves us and that's why we're building all of our products and the integrations of these technologies into our products with the human at the center. So all of these trends point to the growing importance and ubiquity of creative expression in the ways that marketing will be transformed. In our leadership in both areas means Adobe will be at the forefront of these trends. Now creative pros and marketers have always worked together within enterprises. That's not new. But the ways they work and tools they've used have always been very separate. And AI is going to change this. It will tie together the worlds of creativity, documents and digital experiences and really start to break down the barriers that have kept a lot of these folks in enterprises working in separate silos. AI really is this thread that brings our products together in extraordinary ways. Okay. So you've seen a version of this slide in Shantanu's presentation, but just to delve a little more deep in this. And actually in this room, we have some of the leaders of our AI efforts. We've built a world-class team that wants to be pioneering in these particular categories and spaces. First, apps and interfaces. Nothing beats the benefits of AI at the exact moment and in the context that you actually need it. And one stat illustrates this very well. The Generative Fill feature is available both in the Firefly web app where it's a stand-alone capability and in Photoshop where it's integrated into the overall editing workflow. And lots of people use Generative Fill in Firefly. Usage is nearly 9x higher in Photoshop. Why? It's just so natural. It's so naturally integrated into the flow. And in that vein, we're also developing APIs so that our enterprise customers can integrate Firefly capabilities directly into their unique workflows and apps and create at scale. We're also super excited about the potential of an AI-powered conversational interface in our products. I mean imagine being able to simply tell Photoshop or a product like Workfront what you want to do, and it actually walks you through it. This is going to lower the learning curve and help far more types of customers really succeed in our products. Finally, our early integrations of Firefly with an Adobe Experience Manager demonstrate how AI brings creative and marketing workflows together. And these are just a few of the many similar integrations underway. So now let's talk quickly about models. So we made the decision to build our own category-specific models, leveraging both our expertise in each category and our vast collection of licensed content in Adobe Stock. And we also heard from customers, especially enterprise, that they wanted commercially safe models, and we took great care to train our models accordingly. Now when we first released Firefly, people would use words like Spider-Man in their prompts, and then they'd be disappointed that they didn't get the Spider-Man they expected. They got a big spider that was like a man. But our enterprise customers realize right away that, that is also a feature, not a bug. It means that customers can be confident that a Firefly image won't include another company's IP. And that's where we're able to -- that's why we're able to indemnify assets generated with Firefly for enterprise customers. We've also been rolling out new models for different needs and will allow customers to develop custom models with their own content, which is going to be especially exciting for a lot of our customers. Early beta customers are actually raving about this idea of like a kind of a private-tuned model around a character or a style particular to their brand. And so that's something you should see more of soon. And this is going to be essential, absolutely essential for brands in the world of marketing going forward. As for the data layer, we've talked about how important Adobe Stock content has been for training our model, but another mass of data that's just as important is everything we know about how people create, how they make and consume documents and how digital experiences are created, deployed and measured. We're also helping many of the world's largest brands manage their customer profiles and we will help them leverage this data to deliver more personalized digital experiences. So if you put together all of the elements we've discussed, here's the big picture. We have the hyperpersonalization of digital experiences driving a demand for far more and more and more content. Creative pros and their colleagues supply that content but they need the aid of AI to create all these variations and also ensure that it's higher quality content. And then that data and AI informs and optimizes what companies produce throughout the cycle. And so what you see here is that Adobe is operating a one-of-a-kind flywheel that will unleash a new era of digital experiences. And the components of this flywheel are decades in the making. And our strategy is to unify our clouds and workflows, and it's really driven by our customers' needs in the era ahead based on all these shifts. So when you consider the impact of all this innovation, the opportunity for Adobe becomes very, very clear. We are lowering the floor and we are raising the ceiling. I mean let's face it. There's always been a floor of minimum skills that people need to use our products. But now anyone can create an image, a vector or a template just by describing what they want. And with AI powering a more intuitive and conversational interface across our products, the learning curve for all of Adobe's apps will gradually dissipate. We are lowering the floor to bring billions of people into the fold and enable far more types of users within an organization to participate and get value from our products. And all of this innovation undoubtedly raises the ceiling. As we've said, AI will enable more exploration and higher quality experiences. And this will be essential because as every brand creates more content, we will only be moved by experiences that are original and innovative and fun. Okay. So before I hand things over to David, let's just take a quick step back and imagine a little bit of what the future holds for us. And I don't have time to go through all these, I'll just pick a few random ones here. But first, I mean, individual artists will transcend the boundaries between media types and create unprecedented experiences. I mean when you see what's possible with customers making many variations of whatever is in their mind's eye, picking the best one, making variations of that, going off on these stylistic adventures, presenting them through immersive mediums, exploring, applying textures and materials, I mean it's just absolutely mind-boggling what sorts of experiences we're going to see in the years to come from the artists of the world. Let's talk about personal AI agents. I mean this is going to be wild, right? Agents are going to know our preferences. They're going to know what kind of seat you like on an airplane, how we write our e-mails, what topics we're interested in learning about. Like a hyper competent personal assistance, it's going to help you shop and arrange travel and they're going to provide these sort of luxurious one-to-one experiences that were previously reserved for a select few at all of the brands that we frequent every day. I think that's pretty exciting as well. And rich immersive experiences are going to become the norm. And this is going to totally transform commerce and entertainment as we know them. I mean just think about whatever the glass is or future devices that we wear and experience life with, we're going to have a whole new dimension of information over our everyday lives. We're going to go to the mall in our living rooms, right? We're going to have an entertainment that not only surrounds you but actually involves you and knows you. So just a few examples to make the case that the future is super exciting. And it's only, of course, though, as good as the creativity that brings it to life. So with that, I thank you for your attention, and I'll turn things over to David, but also let's take a quick look at some of the highlights from MAX that we just announced. Thanks. [Presentation]

Great. Thank you, Scott, for that. So first of all, I hope you -- I hope many of you were able to make it to the MAX keynote this morning. But that gives you a little bit of a preview of the things that we announced. It really was an amazing MAX. This is -- I've been at Adobe now for 21 years on and off. And I've been to many of these MAXs. And I don't recall any time that we've had this much innovation come out. In terms of the models, we announced 3 new models today: the Image 2 Model, the Vector Model and the Design Model. We natively integrated all of those into Photoshop and Illustrator and Lightroom and After Effects, Adobe Express, and we released a slew of new features that are based on those models, like Generative Fill, Generative Expand, Generative Match, which lets you sort of have your own expression of your own content actually show up in what was generated. Text to Image, which you know we've always had, but Text to Vector, Text to Template, for subjects for icons, for scenes, Lens Blur, text-based editing. I could go on and on, but I don't have that much time. It really was a jampacked set of announcements this time around. So before we get into some of the details, I wanted to take a step back and just to remind people that the digital media business is really made up of 2 things. And of course, it's the Document Cloud and Creative Cloud. And we're going to spend a lot of time and creativity since it's MAX, but I did want to start with the Document Cloud business because both businesses, as Shantanu alluded to earlier, are really going to benefit from this AI tailwind. Now we're going to start with Document Cloud. And remember that the core elements of this business are Reader, Acrobat and the set of services that are sort of connected to all of this. So let's go ahead and take a look. What's really shaping this market, especially as it relates to AI, is a few things. First of all, knowledge workers are feeling increasingly overwhelmed by information. So much so, in fact, that they're spending a day a week looking at -- looking for and finding and sharing information that they've already seen in the past. And that inefficiency that's showing up every single day is a huge impact to their productivity. And they're all turning to and looking for what are the right technological solutions to help address this. They know they can't reduce the flow of information, so how do they tame it and how do they actually organize around it? And so we're really focused on 3 core ways to help them with this. The first is around the insight, right? Time to knowledge is what matters when you get information, how do you take someone from this idea that you linearly read a document to a conversation with the document or with the document's author. That's the core starting point for everything we're going to be doing with AI as it's associated with PDF and Acrobat. Second is that we see a lot of people not just reading Acrobat, but actually creating from Acrobat. So how do we go from them doing their creation process largely as a regurgitation and a formatting exercise to really focus on synthesis? What you've read is the beginning of a new idea. How do we help you take that step into the new idea and create something that's ready for presentation? And third is collaboration. How many times have you sent a PDF, you get 50 different feedback from like 20 different people, and you have to then go through this rationalization of all that commentary back into the document. What if we could automate that process for you, aggregate all that feedback and actually suggest what the changes should be in the document. That will save an enormous amount of time. And so if we look at this, let's step through each of these. I'm going to tell you why we're uniquely situated to address this in a pretty incredible way. So starting with PDF as a foundation. PDF is a de facto standard for unstructured data. We've talked about this in the past. Legal documents, marketing and sales materials, customer communications. There are over 100 billion PDFs that are viewed in Acrobat and Reader every year, and over 0.5 billion monthly active users of Acrobat and Reader. So it's a very natural place for us to integrate a conversational experience. That surface is where people are coming to consume information. And if we can integrate a conversational experience for a single document or maybe a single document as it relates to the corpus of documents you have in an enterprise, that's a profound shift in terms of how people think about the role of Acrobat going forward. The second thing is also we're well positioned for document creation because a lot of people think about Acrobat as a consumption vehicle, but really 16 billion documents are actually edited and created in Acrobat every single year as well. So the opportunity here is to take the conversations you're having, look at the content that you're looking at and synthesize that into a new draft. Assist the users or assist all of you with the copy editing, right, with the design and the layout associated with it, so your white papers will look a little prettier than they are right now and generate multiple formats. Do you want to generate it as a white paper? Do you want to generate it as a presentation? Do you want to generate it as an e-mail to a particular audience? So that foundation of how we create documents, people are also doing that in Acrobat. So it represents a great surface for us to capture that intent and drive more value. And lastly, we're seeing this incredible surge with document link sharing from Acrobat. People are already -- we saw a 75% increase year-over-year in terms of how many people shared -- the number of documents that are being shared from Acrobat. And as we look at this, we have the ability to analyze all the comments that are being made as part of that review process, and then automatically suggests the changes for how you would actually integrate that commentary back into Acrobat. Now what I'm describing here is not some faraway fantasy. Jonathan started by saying last year, we actually shared some videos that felt like faraway fantasies and we've delivered that plus so much more in the last year. The innovation engine around all of these things is really as high as I've ever seen it at Adobe. We already have some of this in a private beta at Adobe, we're using it as well. We have thousands of users using it every week. And we expect to see some of this go public later this year. So to give you a little bit of a sense of what I'm talking about, I'll show you the vision and a lot of this, like I said, especially earlier part of it around the insight, are things that we're already using today. Let's take a look. [Presentation]

I see at least one of you that's going to buy this thing. So I see Alex is ready for it, too. So okay, you got some in the back as well. But you're on Board, Frank, I don't know if that counts. But it does count. But in all seriousness, the thing that we've seen internally is how many people are already using this and the excitement around it. And what's great about this from my perspective, there are really 2 core things you should take away. First, is it's more value to our existing paid customers, right? The conversational experience, the time to insight, the content creation, collaboration, what this is really doing is it's elevating PDF from an unstructured document type to an actionable repository in all of our customers' environments. And that's a huge shift in terms of how Anil and I can actually partner as we take this to market. The second thing is, and I think this is just as important, is the new users that we can expose this to. We have 500 million monthly active users, like I said. We have a platform to introduce them to conversational experiences for the very first time, simply by integrating some of those conversational experiences not just into Acrobat, but also into Reader. And that gives us a much broader canvas for monetizing this, right? We can add these capabilities into Reader across desktop, mobile and web. We can get a broad distribution of all this. We can then convert those Reader users, as always, into Acrobat Standard and Pro, which will come with credit packs included that you can do more with or we can sell those Reader users just more credit packs that they can use on top of it to generate and ask more conversation. So it's the first time that we're going to have a new way of monetizing the $500 million monthly active users on Reader beyond an upgrade into Standard and Pro. So we're very excited about what this means. And then separately, one of the areas, again, as we go to the enterprise, we see an opportunity to continue to drive the same motion we've been driving around higher penetration of paid seats and enterprise. And we think Reader, plus conversational experiences, is going to be a very big opportunity for us there as well. So that's Document Cloud. And as I said, you can start -- you will hopefully start to actually use some of these capabilities later this year when we go public. So I can't wait to hear what you think of it. So now switching over to the creative side for a minute. Here, we see a world where there are billions of people who are connecting and engaging digitally, where there are hundreds of millions of people that are classified as communicators as we've discussed in the past: creator economy folks, marketers, knowledge workers, education. We think that they all see this opportunity and they need the ability to digitally express themselves. They understand that. They're starting to do a lot more of that. And we see a world, as Scott mentioned earlier, and Shantanu talked about it as well, of insatiable content creation needs, right? It's already doubled. Creative content creation has already doubled in the last 2 years. We think that's only going to increase and accelerate as Anil will talk about in terms of the desire and the need for more personalized content becomes more and more than norm. And we're really well set up for this in a way that we've not been historically, and we're set up at the right time, right? First, we have frictionless onboarding. We've talked about this for a while. We now have Firefly web app. We have Adobe Express. We have Photoshop in the web. We have Illustrator in the web as we announced this morning as well. So the ability to come online and start using our products is easier than it's ever been. The friction has been removed. The second is our core flagship applications are continuing to do very well, especially as we're integrating many of those things you saw earlier with generative AI into it, and Firefly, Photoshop and Illustrator, Premiere, After Effects, Lightroom and our All Apps plans and our individual teams and enterprise, they're well set up because now they're not only able to do more and be more powerful in terms of what the value they give you, they're clearly helping people sort of raise the ceiling, as Scott said. But even there, the floor is being lowered because if you can come in and you combine that contextual bar with generative AI and Firefly, there's so much more, someone coming into Photoshop, as an example, can create in the first 5 minutes, which then starts their engagement with the company in a very different way. We have integrated services like libraries, which keep them sort of connected to the content they're creating. And then we have value-added services like Stock and Frame and Substance that we can start to migrate them up to as they use the products more. And of course, generative studio, which, again, Anil will talk more about. And all of this, in my mind, is really where AI comes in as a major tailwind for us, right? It is increasing our top of funnel; it's improving our onboarding across all of our products; for our users that are new users actually, increasing their creative confidence; and for enterprises, it's really much more measurable ROI in terms of the amount of time and the amount of content people can create in a shorter span of time. So we're very excited about where this -- this opportunity as it's shaping up. So then how do we leverage this opportunity? We've talked about 4 key areas here, the foundation models for creative expression. We've talked about native integration of all these capabilities of Firefly directly into our Creative Cloud applications, so that Firefly combined with our Creative Cloud applications give you greater speed and power and precision, pixel-level precision, than you would have anywhere else with generative AI. We have new applications that are built from the ground up to be AI-first creation apps, both Express and Firefly fall into that bucket. And we have business solutions now for content production and automation. And we'll talk about all 4 of these in a little bit more detail. And again, for each of these, I'll show you a demo of where we are. But let's go ahead and start with the multiple models that we've been building. Again, we have had an image model for -- since March as a beta. As we talked about, over 3 billion images already generated there. Today, we introduced a vector model. I don't know if you were there, but I think a lot of Illustrator users might have passed out and -- with excitement. And I see the Firefly team sitting very calmly, so I'm assuming that the servers are holding up. And we announced a design model so that you can start to create highly personalized templates that you can then express -- that you can then go and edit in Express very quickly. We also had a major update to our imaging model with Image 2 Model that gives you unprecedented control, the ability to sort of match your style that you have, the ability to really drive control through the language and the prompt in terms of what you get, higher resolution, higher quality of image, so much richer imaging model than we've had before. And this is just getting started because there's so much more opportunity for us here. And as you -- as we ended the day, I also gave everyone a sense of where we're going with new models, Firefly video model and a Firefly audio and 3D model. So put it all together and there will be no one that will have as full and as rich a model set as we do for creative content with the same level of control and integration capabilities that we have. And the fact that these models actually start building on each other. The work we do in the video model actually makes the imaging model better and vice versa. So with that, let's take a look at where we're going next. [Presentation]

So last year, we showed you sake bottle fonts. This time we're showing you muskrats with hats. I don't know why you go to any other company meetings. But everything you saw there, again, everything you saw there are actual things that are working in our labs and our development teams are working on. So again, just as we showed you last year, there's some amazing things up there. This is not just someday maybe, these are -- this is real working models and technology that we have. Now the second area is around native integration with our Creative Cloud applications, right? We've already talked about Generative Fill, Generative Expand, Generative Match and these kind of things in Photoshop, Illustrator, Premiere, Lightroom. It saves us a lot of time when we're using those features. In fact, a lot of what you saw at MAX today was generated with Firefly in our applications. The teams were able to generate a lot more content much more quickly. And they tell us, it's saving a lot of time. And you can see this in the numbers. Actually, this morning, talked about the fact that Firefly and Generative Fill in Photoshop has been adopted faster than any other feature that we've ever launched. And the reason for that is it works incredibly well. It's easy to find and easy to discover and it fundamentally changes what our customers can do with the tools. But the other thing that's also exciting to see is their intent, right? One of the things Scott talked about 8 out of 10 creative pros are getting excited about generative and feels like it can really help their careers. Why can it help their careers? It can help their careers because if I'm an imaging person that's really focused on vectors, now I can get into imaging and I can get into video and all these other disciplines. It really broadens the palette that anyone can think of themselves as part of a broader creative community. And as we go forward here, you can expect to see a lot more control and guidance provided to the users so that they can really take what's in their mind and create it with generative. And so let's take a look at that. [Presentation]

There's a lot of murmuring going on with that last video. Yes. You can imagine the productivity that's going to have for creative professionals. I wish I had that when I was doing family photos when my kids were little. But it really has, I think, an enormous impact in terms of productivity and in terms of what people can create because, again, I'll keep coming back to this. When Anil talks about personalization at scale, these are the kind of things that are going to fundamentally change how enterprises are able to engage with their customers across multiple regions. Third is the addition of all of these things beyond our core creative flagship applications. We're very excited about both Firefly and Express. I'm going to start with Firefly then talk about Express. One of the things that we've talked about is that these really represent great expansion opportunities in terms of the top of funnel, right? 9 out of 10 Firefly users are not Adobe subscribers. That gives you a sense of like how much these things are resonating with a base of people that we weren't able to resonate before. 25% and all of this stuff has also driven a 25% increase in terms of traffic to Adobe year-over-year. So we're very excited about how this positions us and what we can do to reach audiences that we've never been able to reach in the past. And Firefly is great because it's a playground for anyone that wants to come in and try generative AI. And the more serious they get, the more we use -- they use it, we're going to journey them over to Express, which, by the way, also is benefiting from all the work that we've deployed here. Express grew 20% quarter-over-quarter monthly active users, right? We just launched Express, and we immediately saw this incredible ramp because of the new architecture, the performance, the speed and all of the generative work that's been put in there. And the other thing that we've always talked about, but it was great to see, was this massive jump in terms of Creative Cloud users that are also using Express. You heard Scott this morning, if you were at the show, talk about how Express is not just for the masses, but it's also a great value to Creative Cloud subscribers. And that's going to drive more engagement and more collaboration between those Creative Cloud subscribers that are creative professionals and their marketing organizations. So both Firefly and Express are going to take an AI-first approach to everything we do for creation going forward. So let's take a look at that. [Presentation]

And one of the things that was so smooth there, it's easy to lose, that was an image. That was not a layered document. So you take a picture and you want to take that ice cream cone with the hand and you want to move it to the left, an image, you just click on it because we have this new object-based editing system. It recognizes the objects in a flat photo and then lets you move that wherever you want and fills in everything behind that automatically. It's really -- it's mind-blowing when you start playing with it. My favorite demo is you've got 4 people standing together, you move one of them, and it was like everyone was shot individually and put into that frame. It's -- that will come out -- and when it does, I strongly suggest you play with it. It's a remarkable, remarkable game changer for the everyone, not just the creative professional, but for everyone that I think is going to be taking photography seriously. So last but not least, I wanted to also talk a little bit about how all of this starts to fit into GenStudio, which again, Anil will talk about our efforts around bringing all this to business. What we're doing here is that we're already using this at Adobe, right? We're using it to scale enterprise content production. As I talked about, a lot of the imagery from MAX was built this way. We're using it to increase the velocity of localized content, of regional variants, of personalized campaigns. And the reason we can do that is that we now have the ability to extend our core Firefly model with custom extensions that map to our brand and our value. So what we were able to do was take a campaign for MAX, look at what style we wanted to, we were able to extend and train Firefly to our MAX campaign, and then we were able to generate a whole lot of variance on that in a way that we've never been able to do before and it had a huge impact in terms of our own productivity. So let's take a look at how that works in the enterprise. [Presentation]

And these capabilities are now open for business, and we have our first set of enterprise customers that have been coming on and leveraging all of these. So I hope what's very clear to all of you is that the pace of innovation at Adobe in this new era of AI, as Shantanu talked about, has been accelerating and, frankly, continues to accelerate. We have already delivered incredible models, Creative Cloud integration, Firefly and Express integrations and these enterprise capabilities, but we have so much more planned with new models, more controls that are capable through our models, richer integration with our applications and more and more controllability and automation capability intended for the enterprise. And all of this, when you take a step back, all of this is giving more value to people who already use our products, more power and precision, faster speed to success, lower cost of creation, but it's also helping us reach out with new -- to new audiences with frictionless onboarding capabilities and really thoughtful journeys that bring them in, let them use the right capabilities as part of a freemium plan and then journey them up. And so this gives us a lot of vectors to monetize the opportunities ahead of us. So we talked about generative credits. This is a new foundation for monetization. Anyone, whether you're in a paid plan or a free plan, will be able to generate a certain number of things. And after that, you have to buy more generative credits to continue to use those capabilities. These are, as I said, integrated into both free and paid plans. We continue to see a lot of strength in our core because of this incredible innovation engine that we're driving into there. And we're seeing increased relevance of both the product and the opportunity and the market for new users to come on board, including when we talk about the enterprise with GenStudio. And so you'll see us now, as you think about the digital media business, really think about this funnel being filled out. We talked about this 2 years ago. We hinted further at it last year. We're stretching our lineup because we have so many more capabilities and offers than we've ever had before. And everything we've been doing with our data-driven operating model continues to be the foundation of how we decision and drive the traffic. But as we talked about the last couple of years, we've also been investing very heavily in driving our teams around this product-led growth motion. And we're seeing a lot of maturation of that come into play as well. So we're going to onboard new users with a freemium model for Firefly Express and Reader. We're going to journey them to paid Express plans and insights -- paid insights plans within Reader. We're going to journey them up to Creative Cloud for engagement and deeper retention as they use these capabilities more. And we're, of course, then going to partner with Anil on generative studio. And so with that, I'm going to take a break, but this is really bringing this back together with everything we're doing on our side, does have this flywheel connection to what Anil is going to talk about after break. So I don't know, Jonathan, if you want to say a few words before we break?

Sure. Thanks, David. We're going to break for about 10 minutes just to give everybody a chance to stretch your legs or check out Firefly and generate some panda bear astronauts or dancing meerkats. You'll know we're about to come back when we start to play a few fun marketing Adobe videos. We'll see you then. [Presentation]

All right. Welcome back, everyone. I have to say that was a decent job of getting back to your seats in time. Before we jump back in, something I wanted to mention at the outset and forgot to, we posted a copy of all of the slides that we're presenting here today to the investment -- the Investor Relations website. So if you go there right on the main site, you can download the PDF if you want to follow along, or if you're just wondering, what was that -- what did that say again and you wanted to refer to it. You can find it on the website. And with that, I'm going to pass it over to Anil.

Perfect. Thank you, Jonathan. Welcome back, everybody, and hello. Great to see you all here at MAX, and I look forward to talking more about the Digital Experience business. When you think about generative AI, when you think about every aspect of Digital Experience, you've seen the content, it's not just the content, it's the data, it's the audiences, it's the journey, it's the offers. Every aspect of Digital Experience is being transformed with generative AI. And Adobe, we are uniquely positioned to lead this transformation. When you look at our strengths, our momentum in the Creative Cloud, in Experience Cloud and coming together, as Scott talked about, you'll see -- I will talk a lot about the breakthrough innovations we've already done in the Experience Cloud across our portfolio of the products, the platform, and Gen AI is accelerating that pace of innovation. So what I wanted to do today was just start with the context of the Experience Cloud. We are the leader in customer experience management. I just wanted to give you all ground view, the quick overview of our portfolio across the 4 categories of products that we have running on a common platform. Talk a little bit about the momentum, and the innovations in each of these categories before I talk specifically about generative AI, and what we're doing in that -- in applying generative AI to the Experience Cloud, and how we're bringing together this GenStudio that both Shantanu and David talked about. So 4 key categories that we're in, Content and Commerce. This is our Adobe Experience Manager category, where we're the leader in Content and Commerce. Data insights and audiences, where we help customers understand the entire breadth of their customer data and give the single view of the customer. Customer journeys, both for B2B and B2C, and to put all of these profiles into action and drive that activation, as well as marketing planning and workflow to bring it all together. All running on a common real-time cloud scale platform, which is the Adobe Experience Platform. So to talk about Content and Commerce a little bit. Adobe Experience Manager is the industry standard, the leader for content management. And a few years ago, we launched Adobe Experience Manager, a cloud service for global scale resiliency, and that's really scaled now, up to 1,000 customers right now. And the investments that we have made in AI have really paid off. When you look at our Experience Manager assets, which is where our customers store their images, video, other content assets, we have, through AI, metadata that's automatically inferred, and that leads to smart search of images. You'll see it in the video, the demo that I'll show you a little bit. We're bringing the same kind of AI together now in commerce as well, so that you have personalized commerce by integrating Adobe Commerce with the Adobe Experience Platform to be able to drive personalized experience-driven commerce. If you look at our second category, which is around data insights and audiences, Adobe Analytics is one of our flagship apps here, continues to be industry best in class. And you think of the top 10 televised events, the online presence of those events are typically all run through Adobe Analytics. And based on the Adobe Analytics, we've now expanded that to Customer Journey Analytics, looking not just at web data, but across all channels, including mobile, including all their apps, and giving a single view of the insight from the customer journey. Real-Time CDP is another key offering in this area, massive scale deployed widely now. On a given day, we have 17 trillion segment evaluations per day coming out of Real-Time CDP far higher than anything we've seen in the industry. And we have had a number of innovations in Real-Time CDP to expand that presence. Segment match, as an example, that allows a company and their business partners, for example, a retail chain and their distribution partners or a consumer products company and their partners to securely share data in a manner that is governed by a data privacy and global data residency requirements. And we announced a new offering, Adobe Product Analytics, which Shantanu mentioned, which went -- again, a product that we built internally for Adobe. Adobe is our best customer. It's our customer zero. We built it internally. And then we announced it at summit earlier in the year, went [ GA ] in July. We're really excited about that. And the customer AI model, again, to deliver our propensity scores, something that we build for Adobe. In fact, just for Adobe's own digital business, we generate over 1 billion predictive scores per day. And now again, we have taken that and made that available across our customer base. Third key area is around customer journeys, activating this. And here, again, both the traditional channels, like e-mail continuing to go strong, but we'll combine that with real-time one-to-one, N equals 1, or one-to-one personalization by having a single interface for marketers to manage those customer profiles so that they can have both traditional channels like e-mail as well as one-to-one personalization through mobile or in-app or other channels. We've also been driving omnichannel experimentation through the Adobe Journey Optimizer. So this is helping personalization across all customer touch points. We have a lot of customers doing it across both physical and digital touch points. For example, if a sports franchise doing it in stadium as well as doing it online. Retail, doing it in store as well as doing it in via digital channels, being able to have a single interface to do that kind of omnichannel experimentation. And we're very strong, continue to be strong, not just in B2C, but also in B2B, where B2B brands are able to do both account-based as well as individual based, so that they can map the individuals into the accounts and drive personalization and account-based marketing. These are some of the innovations that we've introduced recently. In the fourth key category, our marketing planning and workflow, Scott talked about how this era of personalized marketing, well, this agile marketing is really taking off. But it's super important to have an interface for our marketers so that you can make sense of all of it, and you have a system of record for all of the campaigns that are going on. That's what we introduced in Workfront, being used widely. And from a planning perspective, the Adobe Mix Modeler is another product that we introduced. It was built for internal use. Again, Adobe was customer zero for that. We have taken that now to the market, very, very positive reception because customer acquisition is changing, lots of new channels, every company that's looking at shifting their spend from traditional marketing to digital marketing. There are lots of channels that they want to be able -- that they can actually invest in. They want to be able to make sure that they have the right mix across their paid media, they earn media, their own media, and they want to know how to invest that money for the best returns, and that's what Adobe Mix Modeler does. So giving you some sense of the innovations and the momentum across the applications and all of those run on the Adobe Experience platform. And it's been 5 years since we started investing in the platform. We're clearly now the leader in the industry across all key dimensions. On scale, for example, if you look at -- I mentioned the 17 trillion segment evaluations per day for Real-Time CDP, which runs on our Experience Platform. What we also have, at this point, over 250 billion Edge network calls. Real-time is a key dimension. Nobody wants to wait, and we are now down to 100 milliseconds, less than 100 milliseconds in terms of performance, again, leadership in that area. Another key aspect of scale is the expansion that we made. Shantanu mentioned about AWS. We've run on Azure, Amazon across the 40-plus business units or standardizing on Adobe Experience Platform and native apps for personalization. And as part of that, we are going to run AEP on AWS as well. And trust and governance continue to be extraordinarily important, both here and in international markets. And we made a lot of investments. From the get-go, AEP was architected to make sure that we respected the data privacy and the data governance requirements of enterprises. The customer's data is the customer data. We don't monetize the data directly. We sell them apps and the platform to do that. But in addition, we have invested for specific verticals. For example, for the healthcare vertical, for HIPAA with Healthcare Shield, for Privacy Shield for data governance and making sure that customers across the world, whether they're using GDPR, whether they have to conform the GDPR or other requirements, Dana will talk about that a little bit. This is the platform to be able to do that globally. So that gives you a sense of the momentum and the innovations, even before generative AI. Let me now segue and talk about specifically the generative AI, and how we are bringing that together in the world of Digital Experience. We believe, like Scott and David both talked about, we are uniquely positioned to do this. We all have the best real-time platform in the world to deliver these personalized digital experience and scale, and the innovations through generative AI are going to take that level of personalization to the next level. So 3 things you can expect in the Digital Experience -- I mean, Digital Experience when it comes to generative AI. First category, an AI Assistant, which really enhances the productivity and makes it available for a lot more users across the Experience Cloud apps. Second category is, most of our Experience Cloud apps, we are reimagining those apps. And I'll talk about that Adobe Experience Manager, which we relaunched today, the launch of the new release, completely rebuilt using new technologies, like Edge delivery and generative AI. And the third category is entirely new solutions built for the age of generative AI, like Adobe GenStudio. So those are the 3 categories where generative AI is reshaping Experience Cloud. First, the Adobe -- first the AI Assistant across the Experience Cloud apps. This is a conversational interface that really makes our apps accessible to any user across marketing or customer experience. Historically, our apps require somebody who is actually technically proficient, somebody usually in the more tech group or in the marketing operations group, they were the kinds of people who use tools like Adobe Analytics, for example. With the AI Assistant, anybody can use it. In fact, with analytics, we have -- through the AI Assistant, we have a feature called Ask Analytics, where in natural language, you can ask your query, and it will actually come back with the results for you. Or you can take an existing dashboard or charts, and it will take those insights that have been generated by AI. You can say, describe this for me, and it will generate captions, or a summary, based with generative AI, making the Adobe Analytics accessible to anybody across marketing. And this is something that we see now spreading across our entire portfolio of products. And that's what drives this next generation of agile marketing that Scott talked about. So that's the first category is building these generative AI-enabled assistant across all of our existing apps. And I talked about analytics, but we see this across the portfolio, whether it's in campaign, or it's in Marketo or in Adobe Target as well. The second category is to reimagine and relaunch the Adobe Experience Manager as a first app, and we'll do this across other apps as well. Experience Manager is the industry standard for running websites and other content management. What we've done is take the new technologies like Edge delivery services, where we were able to understand what the impact will be on the end user who's coming to the website. Typically, that's measured through things like lighthouse scores. And many websites in the world today have a lighthouse score on a scale of 100, they'll be in the 20 to 30 range. What we do is we enable, through Adobe Experience Manager, an automatic improvement in the lighthouse scores. We make sure that they're in the 90s to 100 as they get published through the innovations that were built into the Adobe Experience Manager. Another example is the optimization of the content, which is where generative AI is built in, making sure that we can take the content that is developed by the content authors in whatever tools they're used to, like Google Docs or Word Docs, but make sure that the site content, the site layout design is optimized for the end user. These are some of the things that we've done in Adobe Experience Manager. We believe that this will continue to extend our leadership. In fact, Gartner just ranked us again as the leader in this category, and this will continue our leadership in the category. Third key area is to build new solutions entirely based on generative AI. And both David and Shantanu talked about Adobe GenStudio, and we're super excited about that. We believe that this will supercharge the entire content supply chain with the power of generative AI, the entire process from content ideation, all the way through activation. And the main concept here is to create a central content hub. A content hub that's available for everybody in the organization. And then they can search for content that already exists. If they find the right content, that's great, if not, they have tools like Express and Firefly, where they can start with what they have, start with the smart search, and it results in the right content at the right time, leading to this kind of personalization at scale, leading to the kind of agile marketing that we've talked about. We wanted to actually show you this in action. We've already deployed this with Adobe, and one of the campaigns that we've been running with this is the Photoshop campaign, that everyone can Photoshop campaign. So we'll show you a quick video that shows how the GenStudio has been deployed and used within Adobe. Please roll the video. [Presentation]

From a go-to-market perspective -- we'll wait for the slide to come up. From a go-to market perspective, we are really strongly positioned. As many of you know, we have 1 team that takes Adobe to market for the top enterprises in the world across our entire portfolio, both the Digital Media and the Digital Experience portfolio. We, today, see a tremendous C-level interest, at board level as well as C-level interest in generative AI. They're coming to Adobe and saying, how do I apply generative AI. And content supply chain in GenStudio is the perfect fit there. Virtually everybody we talked to is struggling with marketing agility, for example, and being able to have the right content at the right time for these campaigns or the cost of running these campaigns, or the inability to have lots of people across the organization develop their own content, their own on-brand content and deploy it in campaigns. And GenStudio addresses that perfectly. We're benefiting from the viral adoption of Adobe Firefly and Express as enterprise -- as people in enterprise use it. They're bringing it up and say, hey, we should really standardize on this and go big on it. And by bringing together as an integrated solution, we have accelerated the deployment and time to value so we can stand up the content hub in a matter of weeks and let them get going. And the customer extension that you saw, that branch-specific customization is a major differentiator for us. And you see the level of interest. We have both strategic partners, like the typical system integrators, as well as the agencies, in fact, released with[indiscernible], we just put it out today. We have a lot of interest from their size and the agencies to partner with us to transform the content supply chain. So the AI opportunity for us is huge. Similar to what other speakers covered, we believe that this will, first of all, increase the transformational value of personalization at scale of content supply chain, of what we're doing for customer acquisition. It will accelerate the business value and transform core business processes. At the same time, these technologies will really help us expand the enterprise user base so that anybody in marketing, customer experience can become proficient and use our products. And that is, it will increase seat expansion. We'll also increase the business value for us. When it comes to monetization across these 3 categories, this is what we're doing. In the AI Assistant, which is built into our products, we want to encourage adoption. So we have actually put it into the upper tiers of our packages into the prime and ultimate tiers because we want customers starting to use these products and to using the AI Assistant, and then that gives us the opportunity to upsell. It gives us the opportunity to drive seat expansion. So we wanted to get it out there. In terms of our core apps that we have reimagined using generative AI, that is automatically helping us add more value, and therefore drive higher pricing for like the new imagined -- reimagined apps, like Adobe Experience Manager. And the Adobe GenStudio, which is a hot offering right now, it scales based on both the number of users as well as the usage through generative credits. So let me wrap there. I'm really excited about the potential of generative AI. I believe that we are uniquely positioned, bringing the Experience Cloud and the Creative Cloud together, and it gives us an opportunity to transform every aspect of digital experiences and take it to the next level. Thank you. And with that, let me bring up Dana.

Thank you. All right, that was so fast, Anil. I just -- I didn't know what to do there. I don't -- David, I wanted a Lo-Fi rave video for our responsible innovation. I think one of those downbeat ones that you got to play 6 or 7 of [ that didn't go ]. So you may ask yourself there'll be general counsel, why is the lawyer speaking to you. And that's because it's been a really exciting and transformational time with the way AI sort of reinventing everything. And even on the responsible side, the legal side, we've had to make up the rules of the road as the road is being built. And it's a pretty exciting time for me and my team, and it's special to be here. We have -- I have 8 titles. I want to make sure my right title is there. So Chief Trust Officer is one of my titles. And that's an underlying theme for the framework under which we think about responsible innovation, and you'll see that as you go through it. It's really important for us to build that trust with our customers, community, and we talk about how it delivers business value. But this isn't something that we've just started to do. We've had the -- as one example, a decade-long partnership with National Center for Missing and Exploited Children, helping them find missing children, and we do that by using Photoshop. We've helped them use Photoshop to age old photos and help find missing children this way. Last year alone, they were able to find 20,000 children. That is an example of how we've had this. Yes. How we've always had this focus on trying to build the world's greatest innovation and also be responsible and do the right thing for our society and the community. We've made pledges in the past about not selling our customer data, you heard Anil talk about that. That's just not how we think about monetizing our customers. We've made that pledge and it really fits with our ethics of transparency and respecting our customers' data practices, and we made that pledge and still lives up to this day. And this kind of commitment is good for us in the short term because it's right thing to do. It's good in the long term because governments eventually regulate in these spaces. And when they finally do, like the California did in the CPRA, and they have rules regarding do not sell, we're already compliant when that happens. So as I mentioned, we believe -- by the way, look, I have a slide that has something on top and bottom. Just putting that out there. It's harder for me to think of one, but I have one. So we think about trust as being critical in the digital world, where everything you have is intangible, and the way you build relationships with your enterprises is the through the trusting that they're taken care of your data and security. And we did a survey just out there to see what people felt. And 67% of the people said, data issues like data breaches or privacy missteps will cause them to stop buying from their companies. 73%, they're worried about whether digital content is trustworthy. And we did a survey about what the most important factor is, from why you buy things online digitally, and 37%, the highest rank factor was whether or not they trust the company that they're buying from. So these data practices, these security practices, they really matter to the customers. And you have to work at building those trusts, and the companies that can build trust with these customers are the companies that are going to succeed. And the data practices that matter to our customers, matter to governments. You can see this global picture of regulation all over the world, whether it's the DPDP in India, or the law, the PIPL in China, or the, as I mentioned, the California's law, the very famous GDPR in Europe. There are data and privacy laws and security laws everywhere. And for us, in this organization, the trust organization that we've called ourselves, we really want to bring the ability to understand the law, invest in the technologies that help us comply with the law, and shake the law whenever possible to do the right thing for consumers and businesses. And that's our commitment. When we see all these laws come up. We built technology to do that. We have a GDPR, API that helps enterprise customers delete data very easily. You heard Anil talk about the privacy and security shield that we built right into AEP, so enterprise customers can do their own data governance. And it's so cool to be in an organization like mine, where you're not only protecting Adobe, but you're also building technology that goes into market and helps the customers protect their own end users. And then in our security organization, we have an award-winning security technology called the Common Controls Framework. This is a way that allows us to nimbly adapt to changing security laws. As you see, popping up all over the place, just adjust to the new parts of the law, that lets us help our customers comply as fast as possible. A couple of examples where we recently achieved the ability for [ dot ] cloud to achieve compliance with Japan's ISMAP certification, just achieved compliance with Australia's IRAP security compliance standard. These are the kinds of things you can do that allow us to make sure that our products are being delivered throughout the world in the right way and on time. But the rapid rise of AI is getting everyone's focused. That's all the purple things. And they're really focused on things like bias and harm, they're focused on intellectual property issues, they're focused on misinformation. And everyone is looking at this thing. EU is furthest along, as you would expect, and they have a draft act called the AI Act. We were just talking to the lead negotiator last week actually, and they think this will pass in the spring. This is a comprehensive AI regulation bill that will cover every way that you build and make AI. The White House has talked about voluntary commitments. We were just at the White House a few weeks ago, again, talking to them about their concerns of balancing United States' need to be a leader in innovation, but also build AI in the right way. We were happy to sign on to the voluntary commitments because it reflected a lot of the practices that we're already doing at Adobe. In the U.K., they are about to pass. I think the bills were with the Prime Minister right now, U.K. Online Safety Act, that has language in there that provided by Adobe on transparency of digital content. That's going to become law. We've talked to Singapore about their new framework for thinking about bias and testing. We've met with all of the most senior people in India, they talk about transparency of content. So we've gone all over the world. And it's critical for all companies at this time when the rules of the road are not clear, to engage with the governments, help them understand this technology, help them pass laws and regulations that are good for the public, but also practical for businesses to implement. So with a myriad of issues facing AI, we focus on 3 areas that matter to our products and our customers and our communities. Not hyperpersonalization. I just want to throw that out there. I just heard that a lot. May I just address for a second. I don't know that I'd want hyperpersonalization. When I was 8 years old, I never returned a library book on time. And I amassed a lot of fines, and I was recognized at the door and not allowed to borrow any books. So anonymous, there's 1 vote for less personalization. So harmful bias and discrimination is one of the places we focused on first. As you guys have now, for sure, AI is trained on data, learns from data, it generalizes concepts from data. That's how it does all the amazing things you see, the nonintuitive of [ tasks ] you see it do. But it also absorbs all the biases that are in the data. It learns from all of the mistakes, all the data that is being produced is being produced by humans. Humans have biases, AI learns its biases. You see the biases and how the AI act in. So you do not put in the safeguards required, you can have an AI that does something that damages your reputation or harms our consumers. And you can see that in different spaces, really, whether it's finance or employment or health care, the buyers can actually make this -- the AI can make decisions that are biased, really impacts substantial human rights. When we just talk about how to design our own AI ethics framework 4 years ago, when we built it, we really decided to think about high-risk areas and low-risk areas for this reason. You know, there are some times where AI can really have that impact. But there are a lot of times where AI is really going to have no real impact on people's rights, substantial human rights. And so when we think about that, we said, let's create an AI impact assessment, that every engineer is building AI features can fill out, describe the impact that AI may have. If there's low impact, we ship it out the door, get that innovation out as fast as possible because we understand what it is, and that's really important. But if it's a higher risk area, we have a diverse AI Ethics Review Board that reviews the technology, provide suggestions to the product team, talks about test data sets and model retraining and content moderation as ways to help make sure the AI that we're building meets our standards and values. And one of the great things about Adobe is that we don't really have to do much lecturing on the topic. Our engineers, some of whom are here today, they really want to do the right thing. They're already trying to do the right thing. So we just give them feedback, and they're often running, trying to make sure the AI meets the standards that we all want. And when we think about the overall aspect of how AI is going to be built, we require when we ship products to have a feedback mechanism built right into it. And the reason we do that is because we know the way AI is trained. It's always going to make mistakes. It's not perfect. It's like a brain that makes decisions. You can't anticipate everything it does. So you want a feedback mechanism. Right there with the community, they can tell us, "Hey, this thing didn't work, wasn't what we expected." We can learn from that, we can do better. And that's our commitment, right? Our commitment to transparency, our commitment to our people that it's not going to be perfect all the time, but we're always going to try to make it better. A second area that we wanted to lean into as Adobe, because we feel like we have a unique advantage here, a new insight is on content creation with through AI, which you've heard a lot about, and our relationship with our creative customers. And so you definitely need a lot of data in order to make your AI accurate. The more data you have, the more accurate your AI, and the more data you have, the less biased your AI will be. But creators don't want all of that data to come at their own expense. And brands are worried about AI, causing them to infringe on someone else's intellectual property. So you've heard a lot about how we've designed this Firefly to be commercially safe. And that means we trained it on Adobe Stock. We trained it on other licensed content. We trained it on works in the public domain because we knew how to make all of that safe. And that's allowed us to offer that industry-leading indemnity to our enterprise customers because we know how we built this because we built this from the ground up. And so they can feel good about the way we created this technology. We also review all of our data sets for [ provenance ]. We know every single asset that's going into Firefly. We had to invent a whole new governance framework to do that because we know down the road, the laws are going to require you to know how your model was trained, and we want to be ready for when that gets passed. And this has business results. And indemnity is one thing. Anyone can offer an indemnity. But our competitive advantages here is that our enterprises have confidence in how we built it. And they don't want to be suited in the first place. So knowing that Firefly is built the right way is as important as you have in the indemnity that gives them that guarantee. But we took this one step further when we thought about the consequences of AI in the creator space. We understand, and our artist creative community has told us, they're worried that AI trained on their work could create work that competes with them. They don't feel that's fair. So what to do about that? Well, we've thought a lot about copyrighting, where a copyright could help you here. And we felt that this kind of style copying probably wasn't going to be covered by existing copyright law. So when we testified in front of the Senate Judiciary Committee, in July, we introduced the concept we called the FAIR Act, a Federal Anti-Impersonation Right. And what we are suggesting for the community is to give creators a right to enforce against people who intentionally impersonate their work for commercial gain. It would be a new right that gives them that ability to ensure that they aren't getting economically harmed by the consequences of AI being implemented against them. We're excited to have this position, and we're talking to the government, we talked to the White House about this. There's a lot of energy behind creating these rights and protecting these creators, and we're proud to be part of that solution. The last topic is misinformation. So we know that the misuse of generative AI could lead to a loss of trust in digital content. All the content we consume is digital. And we need a way to trust what we see in here online. When everything out there could be a deep fake, you're going to trust nothing anymore. And so how do we give you a way to believe what's true. Now we know misinformation is not an Adobe problem to solve. But given who we are, it was a solution that we felt we should lead. So 4 years ago, we started the Content Authenticity Initiative, and you've heard Shantanu mentioned this. It's a global coalition of nearly 2,000 members now, with our chip makers like NVIDIA and ARM and Qualcomm, camera manufacturers like Sony, Nikon and Leica, AI developers and software developers, obviously, Adobe, Microsoft, Stability, news outlets, so many of the news organizations have joined Wall Street Journal, New York Times, AP Reuters, BBC, they've all joined together because they want to see how we can establish transparency in the digital content that we see so people have that way to believe what is real. They can tell how are we going to help people tell fact from fiction. So they've come together, and we developed this technology called Content Credentials. And what this is, is like a nutrition label for your content. It has the metadata. You can see an example here on the image. And it tells you who made it, when it was made, where it was made, and what edits were made to it along the way. And this example here, you can see, it's the moon landing, you can see Firefly added to UFO. When you see the Content Credentials, you can see, produced by NASA, it's the moon landing, July 20, 1969. And it tells you the AI asset that was used -- added to it. So you can see, just by looking at this metadata tag, what happened to this image, and there was some AI added to it. But you can also see that the moon landing image is real, for all you moon landing truthers out there. This is a free open standard working -- developed widespread adoption, and we're really excited to have this in place so we can all understand what is going on in our digital lives. Now bringing this all together, you heard Anil talk a lot about GenStudio. So this is -- I thought we'd take this as an example of how all of the responsible innovation efforts that we have put together can come together to help us ship a product like this. And it's important for me to talk about things like shipping product, and bottom line, or I don't get to be on the stage. So this really helps our bottom line when we add responsible innovation to our product portfolio. So the investment we made in developing our foundation models from the ground up enables us to offer something that's designed to be commercially safe. We have the AI Ethics testing. This is enterprises now, it's gone through that testing. It has the content moderation, has the devising that they want to see before they take this into their enterprises. We had provided the indemnification to the enterprises as part of the GenStudio. So when they get this content, they know we stand behind it. And of course, it has the -- our leading privacy and security technology to make sure that when they get this technology, it respects their customers' preferences and it's secure. So you bring all of that together, and it helps us add a ton of value to the products that we are shipping. We've seen this approach generate positive policy outcomes, and we've seen it generate positive goodwill from our community. We know this approach, responsible innovation builds trust, and it's good for our brand, and our business, and our bottom line. With that, I'll give it to Gloria.

Thanks, Dana. I don't know how to follow that at. All right. Well, as Shantanu said earlier, we are in the midst of a tectonic shift in technology. And as Chief People Officer and as the former Chief Strategy Officer, it's an incredible time to be thinking about the implications of this shift, for our strategy, our innovation agenda and for our most important asset, our people. At Adobe, we steer through fast-changing turbulent times with our values as our North Star. And when it comes to AI and innovation, we are all about creating the future. Words like we're looking around the corner. We don't wait for the future, we create it. And we have the courage to disrupt the market and ourselves. These words apply not only to our strategy and amazing innovation that we're delivering for our customers. It also applies to every function and every individual in terms of how we're creating the future of work. Firefly, you've heard a lot about it today. It's a great story of innovation, but it's also a great story about teams at Adobe transforming how we create experiences and develop products. To start from the beginning, we have to look at the incredible foundation of technology, innovation and initiative that came before. Decades of investment in core graphics and imaging technology, Adobe Sensei and AI capabilities and deep insights into how creators create and how marketers, advertisers and companies use content. Processes designed for responsible AI, as Dana just described, and a strong ecosystem. Content creators and contributors with Adobe Stock, industry partners aligned around the Content Authenticity Initiative, and real-time analytical capabilities with leading brands around the world. The ingredients to Adobe's full-stack AI strategy, the apps and interfaces, the models and the data were already in formation. And then in January of this year, in the midst of building Firefly capabilities into our products, we decided to get the technology into the hands of our users sooner in the form of the Firefly web app. So we pivoted, and we set a new goal to the Firefly team to launch firefly.adobe.com in less than 2 months. A cross-functional team came together and to meet this unprecedented time frame, they combined agile methodologies with the assistance of Gen AI. Research and development teams were able to stand up a working website in record time with Gen AI coding tools. Engineers got to work as if they each have a team of virtual coding assistance. The dev team and the design teams were able to ideate, design and iterate new user experiences rapidly with Gen AI tools and they use Firefly to speed up the creation of new icons and images used throughout the user experience. And of course, our AI Ethics review process enabled us to quickly identify and address any harm and bias in the images that Firefly generated. But when our global employees provided feedback during our internal data, the product team then used LLM chat tools to take that feedback and create rules to address even more categories to retrain Firefly to further reduce harm and bias. With Firefly, we went from idea to delivery in 60 days because not only was the foundation there, we also transformed how we worked. So it has certainly been a tremendously pivotal time. As you've seen from all of the announcements and previews today, we have an exciting and accelerated road map ahead. The use of Gen AI is proliferating across teams and extending into testing automation, reliability monitoring and the product design build feedback cycle has shrunk from months to weeks, and in some cases, to even 24-hour cycles. And to give you a sense of the pace of change in this entire space, one engineering leader told me that he used to read 3 Gen AI research papers a week to stay on top of what was happening. And now, it's grown to 10 papers a day. And the only way he can keep up with this volume and speed is using AI-powered features in Adobe Acrobat. I think it goes without saying that at Adobe, we believe in the power of Gen AI to augment human creativity, not replace it. And while using tools and AI to power our business is not new, Gen AI has sparked our collective imagination. And we have chosen to embrace and not ban Gen AI, so that we can continue to cultivate our culture of innovation. We've created a cross-functional working group to promote, govern and support employee efforts. We're encouraging hackathons even within the HR and finance organizations, and we are creating secure sandboxes for teams to experiment safely and responsibly with test data. We're educating employees on the complex issues around Gen AI and helping teams learn from each other's experiments. And whether we're using Adobe or other tools, we're exploring both micro innovations and big idea solutions alike. While I already gave you a glimpse into how our product development process is transforming, we are tapping into the power of AI across all functions. In marketing and customer experience, of course, we are using the full breadth of Adobe on Adobe with GenStudio, from Firefly, GenStudio, all through, all of the features that Anil talked about with Experience Cloud, to deliver personalized digital experiences and creative content to B2C and B2B customers of all sizes around the world. And across our business operations, there are many use cases for AI-assisted work. Summarizing contracts, generating business review presentations from data, checking for bias in recruiting and interviewing, and streamlining customer and employee support to name a few. And as individuals, whether it's with Firefly or Acrobat, Photoshop or Express or the growing number of Gen AI-assisted tools and systems, if there is a need to create, draft, summarize, analyze or answer, there's an opportunity to use Gen AI to gain that time so that we can focus on higher-order problem solving and creativity. So the value to the business, shortening the time from inspiration to impact. Innovation is at the core of who we are. And from our products, to our people, we are creating the future. We're unleashing creativity. We're empowering our employees. We're creating an environment where we're able to attract great talent. And we're using Gen AI to unleash creativity for all to unlock knowledge and productivity and deliver personalized experiences at scale. We are changing the world through personalized digital experiences, and there's never been a greater time to be at Adobe. And with that, I'm going to hand it over to Dan.

Thanks, Gloria. It's great to see everyone here today. You can feel the energy around how Adobe is innovating for the future. Now that you've seen the robust innovation road maps across all of our businesses, I want to talk about how that innovation is unlocking market opportunity, how we're bringing these amazing technologies to life, and doing it in a way with world-class margins. Ultimately, I want to connect the product innovation to revenue growth. Today, with Adobe Firefly, it is easy to create an image as it is to type, and we talked about the hundreds of millions of monthly active users that are already on the Adobe ecosystem. And from a market opportunity perspective, these new technologies, these new capabilities, they position us to capture billions of potential users in the years ahead. Every person on the planet has a story to tell. Adobe's tools like Firefly, Express, they empower individuals to tell their stories, to bring those stories to life in a way that was never possible before. And I want to go back to David's funnel that he showed earlier, but I want to do it with my lens on the product innovations that we've brought to market. We're expanding the company's growth opportunity. We're reaching out to new customers and delivering more value to them. And we've expanded the top of Adobe's funnel with new innovations like Firefly and Adobe Express, and we're broadening our reach as we push upward to new audiences. At the bottom, we're pushing deeper into the funnel. We're unleashing new innovations that deliver transformative value to our customers. Capabilities like custom AI models, personalization at scale with our Adobe Experience platform, automating the content supply chain with Gen Studio. It enables our enterprise customers to go deeper than ever before. And across our product lineup, we're meeting our customers where they are. We're enabling new journeys that provide quick ROI and deepening the engagement with value-added services across our creative document and experienced clouds. Taken as a whole, our innovation and our global go-to-market reach, it results in this massive, diversified funnel across product categories, customer segments and geographies. The opportunity for us at Adobe, it's never been greater. Innovations across the business are also catalyzing demand. We're connecting the content creation process with activation and delivery, and we're doing it with AI and data. As personalization at scale becomes a market imperative, it's going to catalyze a continued explosion of content, and as marketers drive closer and closer to targeting a segment size of [ N of 1, ] that personalization, that's the holy grail of digital marketing. And the result, results in a flywheel that drives customer demand and adoption across our entire portfolio. And bringing these technologies to life, it requires meaningful investments. So I'm going to talk about how we're making these significant investments and delivering profitable growth. I've always said, for us at Adobe, it's an [ and ] statement. We are going to invest to grow, and we're going to do it in a profitable way. For us, it's about growth and profitability. And as I think about bringing these innovative technologies to life in an efficient and scalable way, I see 6 critical elements that are core to the strategy and are foundational to the financial results that we're delivering. We start with a multi-cloud architecture. And through partnerships with cloud providers like Azure, AWS, NVIDIA, we're able to innovate and deliver compute capabilities at scale without investing in our own data centers and our multi-cloud approach, it gives Adobe optionality. And then you look at our global reach and you augment it with our broad partner ecosystem. It enables us to build and deliver our technologies at a massive global scale. Connecting the cloud, AI and solutions like Express, Gen Studio, they're bringing together our clouds, and they're unlocking that flywheel of customer demand across our businesses. And we're bringing documents and creativity together. We're accelerating content demand with personalization, and we're paving efficient routes for customer expansion and cross-sell. Next, let's take prioritization and optimization together. We're making meaningful investments in cloud services and AI. And we're doing it in a disciplined way. We are ruthlessly prioritizing across the portfolio. We are focusing our investments on those opportunities that are moving the needle for the company. And we're innovating to build our own AI models and those models they're optimized to reduce the compute costs of inferencing and training. And as we invest in these cloud capabilities, we develop a broader, more frictionless top of the funnel, while driving structural improvements in customer engagement and retention. And as a result of PLG, we're driving more productivity and marketing efficiency into the business. In our Digital Experience business, we're driving cloud optimization initiatives and operating margin expansion as we continue to grow and scale that business. As these inflections take hold, we expect to deliver stable, consistent operating margins through this investment cycle. We're oriented towards growth and we're going to invest in growth. We're going to do it in a profitable way. Last but not least, as Gloria discussed, we're using generative AI capabilities inside of Adobe to drive greater productivity so that our teams can save time, focus on strategic work, ultimately make more impact at the company. And I want to double-click on the connection between investing in our cloud services, services like Express, Acrobat Web, Photoshop Web, and Adobe Experience Platform and the health of our business. And inside of Adobe, we always start with what the data demonstrates. What is the data telling us? And when you look at engagement metrics like this, the way I describe it, a cloud of your business is a healthier business. And we see this engagement dynamic at work in our DME business, and you see it across both Creative and Document Cloud customers. And when we look at our DX business, our AEP and real-time data platform, it's delivering massive scale at lightning fast response times, and it's demonstrating the product differentiation and the customer value that results from these cloud investments. Engagement, value realization, scale, this is why we invest in these web-based offerings. And it's why these offerings are better positioning us for continued growth in the years ahead. So let's talk about Adobe's unique recipe for growth. This recipe, it's underpinned by DDOM, our data-driven operating model. It's underpinned by PLG, our product-led growth motion, and it's underpinned by driving personalization at scale. So let's jump in and unpack it a little bit. It all starts -- our top line performance all starts with Adobe's growth algorithm, which you know is built on 3 pillars: our first pillar, this is the foundation of our growth, has been, continues to be. The foundation of our growth is bringing new users into the Adobe ecosystem. And with data-driven marketing and freemium offerings, we bring these users into the ecosystem and make them successful at their first point of engagement with the Adobe ecosystem. Our second pillar, this is where we take customers who are already on the Adobe ecosystem and take them on cross-sell and upsell journeys to deliver greater value to them and drive deeper engagement into the Adobe ecosystem. Our third pillar, pricing philosophy. It's based on customer value, and we have a bias towards pervasive adoption and use of our products around the world, just like we did with PDF, and what we're doing today with technologies like Firefly and Express. And as we've more finally segmented the customer base across all of our offerings, we can more closely tie the pricing approach to the value we ultimately deliver to those customers. And I want to look at how this growth formula underpinned by DDOM has driven profitable growth at a massive scale for the company. DDOM, this is how we refer to Adobe's approach of using our own enterprise technologies. And when we bring together the power of real-time data and personalization, we can optimize every single step of a customer's journey and engagement with the company, from discovery and trials to purchasing and renewals. And this data-driven approach, it's allowed us to deeply understand our customers' behavior, and that understanding is driven by experimentation and optimization, which ultimately leads to growth. And we've used DDOM to efficiently drive growth and transform our digital media business. Since launching this data-driven operating model, we've significantly expanded the product offerings. We've defined new categories, and we've driven business model shifts. We've also evolved to grow -- we've also involved DDOM to grow our digital experience business. And we've expanded marketing into customer experience management, new categories driving real-time personalization at scale and more seamlessly integrating with the digital media offerings. When you net all of this out, the financial implications of this, over this time period, we've grown revenue almost 5x, while we've consistently expanded operating margins as we've scaled the business. And that's not something very many companies on the planet have been able to do. And while driving these world-class results, it's important to recognize, we're investing in bringing new technologies and new offerings to life. We're investing for the future. And these investments, they're the foundation upon which future growth is built. I also want to talk about product-led growth. This growth motion, this is something Adobe pioneered with PDF and Reader. And you see how we've expanded that playbook in recent years to Acrobat Web. And now we're doing -- we're driving PLG with our new offerings like Firefly and Express. Product-led growth. It's about meeting customers where they are, understanding their intent with empathy, making them successful with 0 friction and then driving deeper engagement of Adobe's products on the web. And it starts with driving traffic, which is growing at scale for us, and we're reaching a substantial number of new users. And these users are coming back to engage deeper with our new offerings, driving growth in our now across the ecosystem. Product engagement, that's at the heart of how PLG execution drives growth for the company. And then the power of combining DDOM and PLG, it's about attracting and engaging new customers. That's at the center of how we grow the company. And it's resulted in growth in paid subscriptions, moving the needle on retention based on deeper engagement with customers. Ultimately, it's all about growing ARR at a massive scale, which you see when you look at our 2023 financial results. That is the strength and power of Adobe's financial model. In our DX business, we're using our DDOM playbook and real-time data platform to deliver true personalization at scale. And it starts with solution selling to enterprises, bringing new logos into the Adobe ecosystem, and then expanding on those customer investments with upsells and cross-sells, leading enterprises to transformational outcomes on our platform. Ultimately, the result for customers, higher ROI investments. For Adobe, durable recurring subscription revenue growth at scale. We have tremendous momentum driven by our product leadership in this business. But the best is yet to come, as we drive awareness and adoption across enterprises. And Shantanu said it well at the outset. Every major technology shift has resulted in greater opportunity for Adobe. And the opportunity we see as we look into the generative AI inflection is no different. And as a result of the amazing innovations you've clearly seen today, we're expanding the company's market opportunity and we're paving the way to achieve our financial goals of driving the $30 billion of revenue and beyond and doing it in a durable, scalable manner. We're raising the ceiling on what's possible. We're delivering more value, and we're deepening our customers' engagement with the magic that defines the Adobe ecosystem, and we're lowering the floor, we're democratizing access to our technology to bring billions of customers into the fold. Said it before, I'll say it again. I could not be more excited about Adobe's future. Opportunities in front of us, they've never been greater. And this company -- this company has been at the heart of catalyzing some of the major technology trends that have shaped the digital economy. We're better positioned today than we've ever been, to shape the future of digital content, documents, data and personalized digital experiences. We're going to deliver transformational value. We're going to deliver it for customers, and we're going to deliver it for investors. As Shantanu said, 2023, it's been an outstanding year for Adobe, both for innovation and financial results. Q4, that's going to be another great quarter for us. With that, I'll invite Jonathan back up, and we'll kick off the Q&A. Thank you.

All right. Thanks, Dan. Okay. We're going to have a quick game of musical chairs here, get the executive team up to the front of the room, and then we have some time for Q&A. In terms of process, and we'll wait until they all get settled here. In terms of process, we have 2 mic runners, one in each aisle. And do try to keep the question simple. I remember last year, some compound questions that had every member of the executive team trying to jump in and answer. And let's not ask Shantanu for any more 2023 highlights. So that might be the only question we get to. All right. We're just about settled. Let's start.

I don't want to highlight that I missed. No, I'm just kidding. Clearly, today's focus was primarily to talk about Adobe's innovation and our path. We just have to say that the same innovation that Adobe is doing, Figma continues to execute on its innovation agenda. The reason we didn't touch on that today was more about our internal innovation than any issue associated with that. We're excited about it. We continue to think that Adobe plus Figma will be able to do a lot, and the regulatory process is still underway. So I just wanted to make sure I got that out before we talked about Adobe.

Perfect. Okay. Let's start, Jessica, right here with Mark, who's the second in from the aisle.

Mark Murphy with JPMorgan. Really an amazing keynote out there today. The energy was quite palpable. I wanted to ask you, David, at the very end, you kind of touched on the Firefly Image 2 model. And those images look like a big improvement compared to last year. These images are pretty stunning. Can you talk about what was required under the hood in that model? Maybe just touch on -- are these images more detailed and superior to mid-journey stability, Adobe 3, et cetera, at this point? And just, even if it's just kind of a one-liner, is there more CapEx required to support the Image 2 model or not?

Yes. Thanks for the question, and thank you for coming this morning. It really was amazing the energy that we saw from the audience and, frankly, online to hundreds of thousands of people online as well. I'm looking at the Firefly team over there and making sure I get the answer right. I'm sure they'll correct me. Look, at the end of the day, we -- the Image 2 model is an all-new architecture. Really built from the ground up, that does exactly what you said. It brings in a lot more detail, Scott and I were just looking at someone that was posting an image that they had generated, and they were talking about how you could zoom in and literally see the pores on this person's face that they had created. It's just the level of precision, the level of detail is absolutely phenomenal. The way we get there is through a massive architectural change. The way we get there is through more data that we've been able to sort of get access to and ingest and drive the training on. And yes, there are -- you do spend more processing time generating some of these higher-level images, especially with where it's at 4x, but at the very same time, 4x resolution. But at the very same time, the team has a dedicated focus on driving down the cost. And so there's a lot of optimization going on, not only they're generating these models that can create better output, but they're also doing a lot of the optimization of those models that prune the size of the model that ends up generating things at a much better pace. So those 2 points around pushing the envelope in terms of where we go, while also driving down costs is going to be critical. Also, just one more thing, just to sort of broaden that question is that we have a third lever as well, which is the generative AI credits that we have put out there. As we introduce these right now, everything you generate, cost one credit. But if we decide we want to do something like video, as we've talked about doing or we decide we want to do something with a much higher resolution and it is going to cost more to make, we can also make sure that, that ultimately doesn't necessarily get cost one generative credit, but perhaps cost multiple generative credits to balance the cost and the value with our customers.

Maybe, Mark, I'll just add a couple of things to that. I mean, first, big picture, we're not going to, in any way, shape or form, be reluctant to invest in creating the best models. So I want to make sure you understand that we're going to create the best models that will show up more, I guess, as what happens on the operating line, rather than what happens as COGS. So just the way we think about that business because that's the training business upfront. In terms of how we price it, we're certainly pricing it for adoption right now. And as a company of our scale, we have the advantage, as David said, of both being able to spend the money to train the best models and get rapid adoption at this point. But big picture, as Dan said as well, from our perspective, at our scale, we just continue to think this will drive top line growth and it will be profitable. And I think it'll actually further separate Adobe from the other companies. And then the last thing I'll say is that the integration and the interfaces is where actually the magic happens. You asked some questions about some of the other providers of that. Frankly, if you're using Photoshop, you can import any one of those as well into Photoshop and get benefit from using it within Photoshop. So in some sense, we also leverage the entire industry. And that's the way we think about it. And a lot of people are using those other systems. They use it to prototype and then they bring it back into Photoshop and say, "Okay, now that I have to deliver it." So I think we're actually covered across all of those dimensions in a very unique way.

Let's go to Alex here on the aisle.

Alex Zukin here with Wolfe Research. The concept of stretching the funnel in kind of both directions was really interesting. And I want to explore what that means from a seat growth perspective. Because Adobe, by our calculations, somewhere over 30 million paying seats today. But the pace of seat adds seemingly uptick meaningfully, a lot of the statistics you posted would support that. How do we think, over the next few years, about the new pace of seat growth for the model versus maybe ARPU expansion?

Yes. So Alex, we've talked about this in the past. I believe it was 1.5 years ago or so that Jonathan and I came out and we did a tour in New York. And at the time, we talked about the fact that we want to broaden our line of offerings. This is what you're seeing now is the culmination of a lot of that work and ongoing work associated with that to reach the broadest audience, right? We started by talking about 5 billion people have connected Internet devices and access, that's who we want to reach. Shantanu has always talked about this idea of creativity for all. We genuinely mean it. That's the aspiration. Now as we do that, our #1 priority is around new user acquisition. We talked about this even last year, before we had all of these capabilities in hand. It's always about new user acquisition. That is what's going to drive the business, not just this quarter or next quarter, but that's what's going to set us up for the decade or multiple decades ahead. And so that's the mindset. In that end -- to that end, you saw the stat around Firefly, 90% are not Adobe subscribers today. So we are successfully reaching many of those customers. And my top priority with DDOM and product-led growth is to get them in that funnel, get them using our products and then over time, start to migrate them to a paid plan. I think the goal right now is everyone is excited about what this means, and it's a land grab. And I want to be grabbing as broader a surface area, bring people and make them successful, the rest will take care of itself.

One thing I would just add is that we didn't talk about it today, but when you're in Express, we also have the opportunity to open in Photoshop or open in Illustrator. And so we're actually -- we know that a lot of customers, previously might fell out of the funnel because they couldn't figure out one of these desktop products. Now they can come in and have something like Express or Photoshop Illustrator on the web, and then easily kind of graduate as they want to kind of take something further, which I think is a key part of the strategy as well.

And maybe the last thing I'll say, Alex, is relative to the number of subscribers that we have, over a multiyear period, you're absolutely right. We should have an order of magnitude of more paying subscribers. And with the breadth of our ARPU offerings, there'll be -- there'll be a variety. And that's, I think, why David showed the entire funnel of what it is. But at the top, between Express, Firefly and Acrobat, order of magnitude increase in what we call paying subscribers.

All right. Let's go to the original JV here.

Jay Vleeschhouwer. It was a very interesting reference that Gloria made to a cross-functional working group, and with respect to your product development, how are you thinking about balancing the roll of or need for common technologies, which we've done well over the last couple of decades versus the proliferation of more and more models that are more domain-specific and avoid the risk of excess siloing as part of your product development? And then secondly, Gen Studio is really interesting. The combination of integrations over the years. Is it a singular example of that kind of packaging? Or would you expect, as David alluded to last year, to more and more new kinds of packaging?

Maybe Anil, you can first talk about Gen Studio, and then we can talk about the different models as well and how we think about that.

Yes. I mean, Gen Studio is actually -- we see the opportunity. It's very transformative, similar to where the Adobe Experience platform came from. Shantanu talked a little bit about the idea for the Adobe Experience platform, all the different apps and surfaces. There is a need for a common data layer. And that idea, it needed to be real-time, it needed to be cloud scale, and evolve to now include not just the Adobe Experience platform and the apps that we got built over time. We're taking a very similar approach to Gen Studio. We have a lot of great assets in both the Experience Cloud and the Creative Cloud, including, for example, Workfront and Adobe Experience Manager on the Experience Cloud side. Creative Cloud Express, Firefly on the Creative Cloud side. Bringing it together, but what we are focused on is the integrated solution. How do you make that entire flow as easy as possible, so that it really gets democratize, brings in a lot more users. In terms of the core technologies, I think there are some that are no-brainers. Obviously, Firefly's a no-brainer. Express as an interface to all marketers is a no-brainer. But as we go further, we'll invest in -- I think that speed of innovation is critical to us and making sure that we are approaching it outside in, to provide that experience. And that's how we're making the decisions on the common technologies.

Yes. And we've done a lot to evolve the product organization and the team over the last few years. First of all, to your point on core technology, I believe our CEO used to run the core technology group when he came in. So it's near indeed. All looked out.