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DATE
Thursday, June 12, 2025 at 5 p.m. ET
CALL PARTICIPANTS
Chairman, President, and Chief Executive Officer — Shantanu Narayen
President, Digital Media Business — David Wadhwani
President, Digital Experience Business and Worldwide Field Operations — Anil Chakravarthy
Executive Vice President and Chief Financial Officer — Dan Durn
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TAKEAWAYS
Total Revenue: $5.87 billion in revenue for Q2 FY2025, up 11% year-over-year, as reported and in constant currency.
GAAP EPS: $3.94 GAAP earnings per share for Q2 FY2025; Non-GAAP EPS: $5.06 non-GAAP earnings per share for Q2 FY2025, representing 13% year-over-year growth.
Digital Media Revenue: $4.35 billion for Q2 FY2025, Digital Media revenue grew 11% year-over-year as reported.
Digital Media Ending ARR: $18.09 billion Digital Media ARR for Q2 FY2025, up 12.1% year-over-year for Digital Media ending ARR.
Digital Experience Revenue: $1.46 billion revenue for Q2 FY2025
Digital Experience Subscription Revenue: $1.33 billion subscription revenue for Q2 FY2025, up 11% year-over-year.
Cash Flow from Operations: $2.19 billion in cash flows from operations for Q2 FY2025, a record for the second quarter.
Remaining Performance Obligations: $19.69 billion for Q2 FY2025
Monthly Active Users (MAU): Over 700 million monthly active users across product categories as of the end of the quarter, with over 25% year-over-year MAU growth for Acrobat and Express combined.
Express Capabilities Adoption in Acrobat: Express capabilities adoption in Acrobat grew approximately 3x quarter over quarter and ~11x year-over-year.
Subscription Revenue by Group: Business Professionals and Consumers — $1.6 billion in subscription revenue for the business professionals and consumers group in Q2 FY2025, 15% year-over-year growth for the business professionals and consumers group subscription revenue. Creative and Marketing Professionals — $4.02 billion in subscription revenue for the creative and marketing professionals group in Q2 FY2025, 10% year-over-year growth.
Generative AI Usage: Total generations across Firefly and Creative Cloud topped 24 billion as of quarter end.
Firefly App: paid subscriptions nearly doubled sequentially.
Partner Integrations: Express add-ons with partners (Google Ads, Vimeo, Bitly) grew over 25% quarter-over-quarter.
Q3 Guidance: Total revenue expected at $5.875 billion–$5.925 billion for Q3 FY2025; GAAP EPS $4–$4.5 for Q3 FY2025; non-GAAP EPS $5.01–$5.2 for Q3 FY2025; Digital Media revenue $4.37 billion–$4.4 billion.
Full-Year FY2025 Outlook Raised: Total revenue now $23.5 billion–$23.6 billion for FY2025; Digital Media revenue $17.45 billion–$17.5 billion for FY2025; Digital Media ending ARR growth targeted at 11% for FY2025.
AI Book of Business: Management reported AI-influenced ARR in the billions, and tracking above $250 million target for AI Direct ARR by end of FY2025.
SUMMARY
Adobe (ADBE 0.20%) delivered record revenue in the reported period and raised full-year guidance on key metrics, citing ongoing strong adoption of AI-powered and creative solutions. Management detailed rising demand and accelerated monetization across key segments, emphasizing progress in user growth, product integration, and enterprise adoption. Expanded offerings, heightened partner activity, and notable momentum in both customer acquisition and retention.
Wadhwani stated, “Traffic to the Firefly app grew over 30% quarter over quarter.”
Firefly’s paid subscription base nearly doubled quarter over quarter, while time Adobe subscribers to Firefly grew over 30% quarter over quarter.
Chakravarthy highlighted that “Gen Studio for performance marketing” posted over 45% sequential growth.
Multiple executives reported strong demand for AI-powered solutions, with Firefly services and custom models experienced 4x year-over-year ARR growth.
Management confirmed rollout of Creative Cloud Pro and Firefly app subscriptions, pricing new Firefly tiers at $10, $20, and $200 per month, respectively, to drive segment expansion.
Recent global customer wins cited included Cisco, County of Los Angeles, the National Football League, and the Premier League.
Industry partnerships expanded, with major platforms including Meta, Google, and additional ad channels integrating Adobe’s Gen Studio.
Durn confirmed a $3.5 billion share repurchase in Q2 FY2025, with $10.9 billion of buyback authorization remaining as of quarter end.
Subscription revenue for combined creative and marketing professionals accelerated to a 10.1% year-over-year growth rate.
INDUSTRY GLOSSARY
ARR (Annualized Recurring Revenue): The annualized value of active subscription contracts at the end of a reporting period, reflecting the company’s subscription business momentum.
MAU (Monthly Active Users): The number of unique users engaging with a product or service in a given month, a key metric for user adoption and engagement.
PLG (Product-Led Growth): A go-to-market approach that drives customer acquisition, expansion, and retention through direct product usage rather than traditional sales-led tactics.
CRPO (Current Remaining Performance Obligations): The portion of remaining performance obligations expected to be recognized as revenue within the next 12 months.
Firefly: Adobe’s AI-powered application and foundational models for creative ideation, image/video generation, and content production across design workflows.
Gen Studio: An integrated platform enabling content planning, creation, management, and campaign activation using generative AI for marketing and creative teams.
Creative Cloud Pro: Adobe’s higher-value subscription bundle offering expanded AI and creative features, including access to Firefly, positioned above standard Creative Cloud packages.
Express: Adobe’s web and mobile application featuring AI-assisted design tools aimed at business professionals and content creators for rapid design and publishing.
AEP (Adobe Experience Platform): Adobe’s data and customer journey orchestration backbone for experience management, segmentation, and campaign optimization at scale.
Full Conference Call Transcript
Shantanu Narayen: Thanks, Steve. Good afternoon, and thank you for joining us. Adobe delivered another strong quarter achieving record revenue of $5.87 billion, representing 11% year-over-year growth. GAAP earnings per share for the quarter was $3.94 and non-GAAP earnings per share was $5.06, representing 13% year-over-year growth. At our Investor Meeting in March, we outlined our growth strategy for the company centered on delivering transformative innovation for diverse customer audiences, business professionals, consumers, creators, creative professionals, and marketing professionals. The creative opportunity is expanding across audiences with AI as an accelerant. It is opening the content floodgates, tapping into everyone’s imagination, and massively expanding the number of creative assets being created, edited, integrated, and delivered.
There are billions of business professionals and consumers in the world who want to be both creative and efficient to accomplish their objectives. They see AI and conversational interfaces as a more productive way to accelerate creative storytelling and to quickly synthesize information across multiple documents. They’re looking for quick and easy tools that are available on every computing surface and an easy on-ramp that allows them to trial products and subscribe based on the value derived. As the need for creative expression continues to grow exponentially, creativity and productivity are merging. AI can make them more creative and productive in their business context.
Adobe pioneered creative storytelling through groundbreaking applications like Photoshop and Illustrator and digital document sharing with the introduction of PDF and Acrobat. Our strategy is to bring productivity and creativity to life for billions of users across a variety of surfaces. Acrobat AI Assistant is redefining how people extract value from digital documents, unlocking new levels of productivity by cutting time to insights through conversational interfaces. Adobe Express is using AI to enable consumers to quickly design and publish engaging content through conversational AI in an easy-to-use, all-in-one application. Our unique value proposition is integrating these solutions to facilitate a smoother creation-to-consumption process through mobile apps, web browsers, and desktop offerings.
Adobe’s monthly active users across these categories now exceed over 700 million users. In the Creative and Marketing Professionals group, creative professionals need best-of-breed applications that enable them to bring their ideas to life across media types, including imaging, design, video, photography, illustration, animation, 3D, and more. These offerings need to extend across all surfaces and facilitate seamless collaboration with multiple stakeholders. The next generation of creators is looking for powerful on-ramps through web and mobile platforms. Ideation through AI is an emerging category that will be made more powerful through support for multiple creative models.
Adobe is delivering a comprehensive creative platform that extends from ideation through creation to mass production and delivery to address this content supply chain opportunity. At the heart of this creative AI revolution is Adobe Firefly, an on-ramp to creative expression that augments the power of Creative Cloud desktop applications. The Firefly app is a new destination for AI-assisted content ideation, creation, and production with Adobe’s comprehensive family of commercially safe Firefly creative models and an expansive ecosystem of third-party models. Firefly empowers creative professionals to generate images, video, audio, and vectors from a single place, with unmatched creative control, iterate on their creations through Adobe’s creative apps, and seamlessly deliver them into production.
Our support for third-party models, including from Google, OpenAI, and Black Forest Labs, gives creators the flexibility to choose the AI that works best for them, with Firefly upholding our standards for IP safety and transparency. We rolled out new Firefly offerings globally, and we’ll be delivering more innovation over the next few months. Paired with Creative Cloud apps, the Firefly app empowers creative professionals with enhanced precision and performance, ready to support them whenever and wherever inspiration strikes. The Firefly app is attracting new users to the Adobe franchise, with time subscribers growing 30% quarter over quarter.
