Adobe personalized digital experiences. four decades innovations transformed institutions governments media. products services solutions manage deliver digital experiences. diverse user base consumers communicators professionals developers students businesses enterprises. creators artificial. products services unleash creativity accelerate productivity power businesses.


deliver products services solutions empower customers content digital experience. investments two areas


Digital Media. products services solutions teams businesses enterprises create publish promote content productivity. Adobe Creative Cloud Document Cloud Express Firefly Photoshop Illustrator Lightroom Premiere Pro Acrobat Sign tools creative professionals communicators consumers. core decades evolved expanded Digital Media model flexible solutions creative potential.


. platform products services solutions Adobe Experience Cloud monetize experiences commerce. customers marketers advertisers agencies publishers merchandisers merchants web analysts data scientists developers executives. Adobe Experience Platform data profiles personalized experiences.


offer products services solutions Digital Media Experience. Adobe GenStudio Digital Media


Digital Experience Creative Adobe Experience Cloud simplify content supply chain AI automation. compete Digital Media Experience change world personalized digital experiences relevant invest digital transformation.


business segments Media Experience Advertising.


segments management financial view. growth opportunities legacy products services solutions third segment Publishing Advertising.


overview markets strategic opportunities 2024 segments. Part II Item 7 Financial Condition Results Note 2 Consolidated Financial Statements segment information.


digital world content documents global economy productivity design creativity relevant market opportunity Adobe digital media. Everyone story needs products services. AI technologies opportunity demand production content. shift creative professionals processes productivity new fields barriers creativity. creativity team sport redefining productivity collaboration critical success. Adobe driving innovation trends democratize creativity collaboration.


flagship Digital Media Adobe Creative Cloud subscription creative products cloud services platforms. creativity Creative Cloud addresses needs content creators knowledge workers marketers educators communicators consumers. customers rely products content creation photo editing design video mobile gaming development. choose speed Adobe Express web mobile app flagship Creative Cloud apps. grow advancing creative category expanding content creativity Adobe Express collaboration inspiring creative community sharing monetization expanding user base AI Express AI apps.


Digital Media segment includes Adobe Document Cloud services PDF technology Acrobat Sign apps digital document workflows. opportunity accelerate document productivity transform. Trillions PDF documents created role. hundreds millions engage PDF daily legal financial services publishing


Acrobat Reader customers apps document services Cloud.


goal Digital Media leading platform creativity digital document solutions products services design deliver content. data engagement product-led growth content interact documents frictionless efficient needs increase value.


redefining creative process Creative Cloud. empowering novice creators communicators professionals create edit schedule share content Adobe Express Photoshop Premiere Pro Acrobat. collaboration. Premiere Pro After Effects Illustrator InDesign. expanding Creative Cloud Adobe Firefly Photoshop. infusing AI creative apps new models images vector AI-powered video features Photoshop Illustrator Premiere Pro. building foundation models. Firefly safe AI Ethics. 2023 innovations Adobe Firefly models Text-Based Editing Premiere Pro Generative Fill Expand Photoshop Recolor Illustrator Text to Image Effects Adobe Express.


pursuing inspire connect creative community Create Change series residency program tutorials Behance. offer creative products services libraries Stock Fonts mobile apps Creative Cloud Libraries. Digital Media Products Services Solutions.


Creative Cloud business product-led growth strategy friction positive experiences adoption usage conversion expansion loyalty. pricing strategy migrate higher-value attract subscribe. data-driven model Adobe Experience Cloud solutions customer awareness engagement licensing products. Adobe. com central destination customers renew Creative Cloud subscriptions. subscribe twenty Creative Cloud products single subscription collections. offer free premium levels apps Firefly targeted packages suites Photography Plan. generative AI capabilities value potential customer base engagement retention Generative. collaboration features Photoshop web Frame. io expand stakeholders review copywriting social media marketing. channel partners target mid-size creative customers Creative Cloud for Teams. sales force relationships customers adoption Creative Cloud for Enterprise. strategy Creative Cloud increase revenue attract new grow recurring revenue stream.


Adobe Document Cloud revenue growth customer base product-led growth strategy PDF experience improve Acrobat functionality expand digital actions. innovation Adobe Sensei AI machine learning. unlocking business workflows PDF Acrobat accelerating Document Cloud digital sales-to-market industries. 50 million


PDF harness attract users Document Cloud services Acrobat web create edit convert sign compress PDFs. data-driven model subscription pricing small businesses enterprises government institutions. corporate volume licensing programs increase reach marketing Acrobat education financial services telecommunications government expanding emerging markets. strategic partnerships distribution enterprise business.


Document Cloud customers expect processes seamless expanding Document Cloud capabilities. Acrobat Reader mobile AI “Liquid Mode” PDFs screens. Acrobat web quick results. Adobe Scan mobile devices documents PDFs. Acrobat Sign green alternative documents automate processes workflows integrated Acrobat. Adobe Sensei capabilities Acrobat Scan Sign migrate paper personalized digital experiences growing revenue.


Consumers buy experiences demand personalized digital experiences relevant engaging seamless secure channels. Business customers expectations companies engaging experiences. AI automation personalization brands stand creative expression future experiences personalized. Delivering personalized experience requires data insights content channels. opportunity provide solutions real-time personalization content supply chain streamlined process ideation deployment measurement optimization. Marketing evolving multi-practitioner-functional return on investment transformation.


Adobe Experience Cloud digital businesses personalized experiences solutions. Addressing challenges customer experience management opportunity help businesses invest solutions.


goal leading provider cloud digital experiences transformation. Adobe Experience Cloud apps services manage journeys personalized experiences intelligence. Adobe Experience Platform solutions. descriptions Products Services Solutions.


Adobe Experience Cloud solutions pillars insights audiences. products Analytics Customer Journey Analytics Product Analytics Real-time Customer Data Platform deliver data tailored experiences. commerce. content multi commerce experiences. journeys. manage personalize journeys Marketo Engage Campaign Target Journey Optimizer. planning workflow. products measure optimize marketing investments Mix Modeler plan manage collaborate execute workflows Workfront.


goal deploy capabilities enterprises generate engaging experiences creators creativity scale production marketing recommendations personalized customer journeys. innovations Adobe Sensei AI personalized digital experiences. offers domain-specific AI services attribution insights customer journey management lead management sentiment analysis one-click personalization anomaly detection. building generative AI Manager. increase value create competitive differentiation.


Adobe Experience Cloud open platform ecosystem Platform. transforms data into customer profiles. updated real time AI insights experiences across channels. open architecture scalability products apps industry ecosystem.


Adobe Experience Cloud engagement growth product differentiation experience B2B B2C enterprise mid-market. growth go-to-market approach C-suite partnerships transformational accounts acquisition value realization solution expansion. direct sales force ecosystem partners marketing agencies systems integrators software vendors. strategic partnerships companies market reach. investments scale size growth revenue Digital Experience segment 2024.


Publishing Advertising segment products eLearning publishing web conferencing web app high-end printing Adobe Advertising. Graphics professionals publishers quality reliability efficiency printing Adobe PostScript PDF functionality. high printing digital software Adobe PostScript PDF standards.


Adobe Advertising end-to-end digital video display search channels screens.


generate revenue legacy licensing equipment manufacturers software printers Advertising usage offerings.


participate evolving competitive global environment competitors vary. recognize hundreds competitors. markets products standards distribution models technology innovation introductions short life cycles. future success enhance products services introduce new customer needs information security extend technologies apps anticipate standards business models changes.


summary competitive environment business segments. Part 1 Item 1A risks competition.


Digital Media segment competition companies point offerings free products websites downloadable apps. evolving market competition AI companies hardware camera manufacturers open-source web-authoring tools-first apps native tools media platforms stock content document creation storage collaboration signing providers system developers media.


competitive factors include product features functionalities tools apps workflows intuitiveness visual appeal interfaces cost benefits flexibility accessibility platforms educating create AI models digital media secure data handling storage protocols.


attract customers products services standalone tools Creative Cloud Document Cloud. Creative Cloud features functionality AI models ease use reliability value performance. Adobe Firefly generative AI integrated safe commercial use. Adobe Express creative technologies content creation collaboration sharing projects. Document Cloud PDF offerings features functionalities business brand.


Digital Experience segment competes markets growing evolving intense competition. Adobe Experience Cloud solutions face competition from companies software product companies entering Software-as-a-Service solutions internally-developed apps.


competitive factors include performance security scalability flexibility reliability strategic relationships integration apps intuitiveness appeal interfaces cost-effective benefits flexibility-level customer service training governance usability-time data reporting from portals search engines deploy globally integration customization AI models.


compete enterprise low-cost alternatives strong feature set breadth offerings Adobe Experience Cloud focus global multi-brand companies AI intuitive user experience multi-screen data-channel apps-based content creation digital experience personalization optimization.


Publishing Advertising segment competition large Extensible Markup Language. web conferencing software. features ease-use customization integration hardware platforms service price. quality features complementarity Creative Cloud Document Cloud Digital Experience strong brand.


Creative Cloud subscription photography design video social media platforms geographies. Subscribers cloud storage sync collaborate share work files assets.


Creative Cloud plans include Firefly Adobe Express AI features Photoshop Illustrator Premiere Pro. include Generative Credits AI. apps more available Cloud Substance 3D sold. Creative Cloud Apps subscription includes Acrobat PDFs available standalone Adobe. com. apps available point product subscription.


Photoshop advanced imaging design app editing effects tools photos. available desktop iPad web. Features 2023 Generative Fill Expand text prompts create add remove replace images without Photoshop. Lightroom cloud photo service edit organize store share photos desktop tablet mobile web. Lens Blur Denoise noise People Masking facial hair clothing. Photography Plan limited cloud-based photographers Photoshop Lightroom Classic.


Adobe Illustrator vector graphics app desktop iPad designers graphics illustrations web video. Features 2023 Generative Recolor color palettes. Adobe Fresco illustration app free premium largest vector raster brushes Live Brushes Adobe Sensei natural painting drawing experience.


Premiere Pro nonlinear filmmakers TV editors YouTubers videographers. import media 8K virtual reality edit native without transcoding. Automated tools color audio 360/VR. Text-Based Editing.


After Effects motion graphics effects animators designers compositors titles effects animations. AI Roto Brush cut objects. Premiere Pro Photoshop Illustrator Audition third party.


InDesign design layout print digital media. create publish content books eBooks digital magazines posters PDFs print online tablet. integration Photoshop Illustrator Acrobat Stock InCopy Experience Manager share content fonts. digital publishing apps.


Adobe Express creativity app AI-first capabilities video marketing social content. design videos images resumes PDFs animation Instagram TikTok social. guided tools one-click solutions drag drop collaboration templates fonts Stock photo collection plan schedule preview publish content. Firefly images text effects 100 languages commercially safe. free premium features. Cloud subscribers access edit Photoshop Illustrator add linked files.


Firefly creative AI models web app expression. images text effects design templates vector graphics text description. include Image Model Vector Design Model design templates. supports 100 languages. for Enterprise businesses intellectual property indemnification AI-generated content. features available Photoshop Illustrator Express Stock. free limited Generative Credits


. limit reached buy Credits Firefly.


Adobe Firefly generates commercially safe trained on licensed public domain. asset includes Content Credentials generative AI trust transparency. Credentials verifiable digital asset’s name creation date tools edits.


Adobe Stock designers access royalty-free photos vectors illustrations videos templates audio 3D assets projects. built apps Photoshop Illustrator InDesign Express search add. free paid licensed apps. multi-asset subscription.


. cloud creative collaboration platform streamlines real-time upload review approval frame-accurate commenting annotations support still images design files PDFs. integrated with Premiere Pro After Effects frame comments. Camera to Cloud footage. review still image cameras.


Substance 3D desktop apps Stager Painter Sampler Designer Modeler. Customers build assemble 3D scenes Stager Painter texture Sampler digitize enrich. Assets 3D materials library import 3D textures generate texture variations. Modeler available desktop VR headsets interprets input model workshop gestures switch VR desktop.


Behance social community creators work live-stream Creative Cloud apps. Adobe Portfolio website Behance.


Document Cloud digital document signature workflows desktop mobile third apps productivity. create review approve sign track documents store cloud access. includes Acrobat Sign Scan apps services productivity apps processes systems.


apps Acrobat. Standard convert edit protect PDFs. Pro full convert edit e-signature protection PDF features. plans teams enterprises. Acrobat Sign. Document Cloud Acrobat Acrobat Sign APIs integrations. Acrobat Reader Scan free.


Adobe Document Cloud Acrobat PDF solution tools convert edit share sign PDFs platforms. enables workflows commenting editing sharing tools integration Acrobat Sign. Share button sharing. Chrome Edge extensions tools without browser. standalone Creative Cloud All Apps subscription.


Acrobat Reader viewing annotating printing PDF features create edit export combine share collaborate “Liquid Mode” Sensei reformats mobile. Users access edit save changes files Adobe Document Cloud-party.


Adobe Scan mobile devices scanning. captures documents transforms PDFs Document Cloud sharing. Optical character recognition editable PDF files.


cloud e-signature Acrobat Sign allows send document signature. mobile apps e-sign documents send track responses instant signatures. integrates enterprise systems APIs Adobe Experience Manager Forms Advanced Workflows.


Adobe Experience Cloud products services solutions experience cloud platform service support open ecosystem. Adobe Sensei AI machine learning data recommendations tasks decisions. Sensei GenAI AI journeys.


Experience Cloud Adobe Platform Data Insights Content Commerce Journeys Marketing Planning.


Adobe Experience Platform customer collect activate data profiles. standardizes data provides cloud infrastructure real-time updates AI insights scalability. offers Query Service Data Science Workspace deeper insights. leverage best practices AI business real decisions actions processes. activate AI insights Cloud apps.


Data Insights Audiences solutions data insights share data analyses teams use AI machine learning personalization. description products Insights.


Adobe Analytics helps interactions into insights. Driven AI machine learning collects organizes structures data real-time insights problems opportunities drive conversion experiences. improve marketing spend. Analysis Workspace drag-and-drop interface craft analysis add visualizations curate dataset share schedule projects.


Product Analytics self-serve data cross-channel data Customer Journey Analytics. marketing customer experience personalized experiences single source data metrics. Experience Platform Adobe Journey Optimizer Real-Time Customer Data Platform real-time audiences activation.


Customer Journey Analytics Adobe Experience Platform analytics tools brands explore visualize customer journey channels AI insights journeys.


Adobe’s Real-Time Customer Data Platform app real-time personalization enterprise customers data profiles B2C B2B marketers experiences across channels. Adobe Experience customer profiles decision making-personalized experiences. open extensible architecture integration data sources activation touchpoints continuous data refreshes.


Content Commerce solutions manage optimize web mobile app shopping experiences mid-market enterprise. description products Commerce.


Experience Manager asset management content document solution. Sites content scalable cloud-native personalized experiences. Assets-native asset management personalized experiences. Forms cloud-native scalable personalized customer onboarding enrollment publish forms documents.


Experience Manager Screens digital signage Developer App Builder tools services extend Experience Manager infrastructure apply parameters UI.


Adobe Commerce customizable end-to-end e-commerce platform experience physical digital goods


predictive shopping B2C direct-consumer. open-source ecosystem third-party extensions Adobe Commerce shoppable experiences data analysis automated workflows integrations scalable extensible.


Customer Journeys solutions enable manage cross-channel campaigns experiences personalize content deliver optimized experiences measure engagement stage. description products Journeys.


Adobe Marketo Engage experience B2B cross-channel planning engagement measurement platform. lead nurturing account profiling sales app integrations apps Adobe Experience Cloud. engagement marketing sales priority accounts.


Adobe Campaign B2C-channel. consumer journey data personalized experiences channels determined behaviors preferences. AI email management multidimensional targeting in-app messaging reports.


Adobe Target AI machine learning personalization engine test target optimize content channels. omnichannel experiences A/B multivariate tests automation touchpoints.


Adobe Journey Optimizer scalable app Experience Platform brands personalized journeys app. brands manage engagement campaigns personalized content real-time profiles data-driven insights cloud-native scalability API extensibility app. customers trigger journeys insights map journeys. performance real time data Experience Platform analysis.


Workfront management app plan execute workflows. Creative Cloud Adobe Experience Manager Assets scale content production.


Adobe Mix Modeler self Sensei measure plan marketing investments. machine learning insights-channel impact marketing investments


. understanding impact enables marketers measure adjust campaigns.


offer enterprise digital media products services solutions. corporate website adobe.


market products services enterprise consumers. license users app stores website. offer products SaaS services term subscription pay-per-use. 2023 subscriptions Generative Credits Firefly. market distribute products sales channels retailers software developers stores systems integrators software vendors value resellers equipment hardware.


offices Armenia Hong Kong India Japan Mexico Moldova Singapore South Africa Korea Spain Taiwan Thailand Kingdom.


sell products software subscription purchase access specific period recent version. license perpetual versions maintenance support upgrades support updates enhancements.


provide consulting management technical support learning segments enterprises businesses professionals consumers. success value portfolio maximize return cloud solutions licensed products.


global team designing implementing solutions largest customers. customer-focused methodology refined best practices solutions industries segments. customers products solutions engage digital strategies multi-solution integrations running platforms. accelerate time to value maximize return investment.


Adobe’s strategy partner ecosystem Adobe solutions global marketplace. Adobe Global Services provides deliverables Solution Partner Program. systems integrators agencies partners tools Adobe technology implementing running customer platforms. customers benefit from Adobe technology customer context.


Adobe Customer Solutions provides Success Managers understand business needs adoption product objectives maximize return. engage best practices knowledge success strategies


engagements marketers brands. performance outcomes.


Adobe provides maintenance support services subscription products perpetual license customers annual fee maintenance programs. support help upgrades enhancements maintenance period one to three years.


product support regional global centers outsourced vendors. Customers seek channels phone chat web social media email access. technical expertise products.


consumers Getting Started adoption. vary. enterprise customers personalized Premium Services global support centers managers risk mitigation on-site support business-critical deployments.


offer support partners organizations. tools software kits information services.


Adobe Customer Solutions offers learning enablement services teams products Digital Experience Media. portfolio includes free online-service learning. Digital Learning Services fee-based learning programs classroom virtual on training certifications professionals.


offerings custom learning services enterprise customers. Solution-specific skills assessments tailor learning priorities.


investments companies. financial returns strategic purposes increase knowledge technological developments expand opportunities Adobe products services.


speed innovation software industry investment research development cutting-edge technologies new products services. Adobe Research team ideas technologies future. investing in research development strengthen products services expand offerings Creative Cloud Document Cloud Experience Cloud AI machine learning deep learning tools features content understanding recommendations personalization.


research acquire products technology purchasing stock assets. licensed purchased intellectual property ownership rights programs license transfer agreements


pay license fee royalties dollar amount percentage revenue.


protect intellectual property patents copyrights trademarks secrets laws confidentiality contractual provisions. international patents applications products. essential businesses. registered. trademarks service marks domain names copyrights.


license desktop software mobile apps duplication disclosure transfer. cloud products services access use. customers license SaaS Managed Services enterprise licensing terms.


efforts proprietary technology intellectual property rights unauthorized parties copy. Policing unauthorized use difficult. subscription-based business model focus cloud-based computing improve pirating.


culture creativity innovation performance success. investing global workforce diversity inclusion fair-competitive pay benefits wellbeing growth development. December 1 2023 employed 29,945 50% United States 50% international locations. attrition rate 7. 4%. work stoppages employee relations good. listening program decisions risks. 2023 80% participated engagement survey.


Digital transformation COVID-19 changed leaning digital-first workflows tools resources. believe value trust relationships collaboration innovation. evolved hybrid model divide work office home. pilot test iterate new employee experience.


visit website Human Capital programs.


fair competitive compensation benefits wellbeing. compensation programs base pay short long. equity awards stock connections long-term success. wellbeing benefit programs physical emotional financial community. health welfare insurance time-off leave global wellbeing days retirement financial support. emotional mental wellbeing Employee Assistance Program interactive apps. wellness reimbursement $600 lifestyle coaching global wellbeing speaker series ergonomic programs support wellbeing. financial education wellness coaches goals. community


onsite events Employee Networks share.


employees career development. Global Talent Development team leaders career growth development. on-demand content platforms. Adobe’s Learning Fund $11,000 university short-term learning.


committed talent sharing career development agility Adobe. post roles provide resources job search. forums managers employees career contributions.


Adobe for All diversity equity inclusion. creative innovative successful. December 1, 2023 women 35. 3% employees underrepresented minorities 11. 6%. S. employees.


three-pillar strategy grow diversity workforce fiscal 2023 hiring retention promotion diverse workforce. invested partnerships events underrepresented communities. partnerships Historically Black Colleges Universities Hispanic-Serving Institutions. nontraditional backgrounds opportunities technology design careers Adobe Digital Academy Assembly. inclusive environment. annual Adobe for All event change. expanded family-friendly benefits employee resource groups learning environment Action Circles program. align diversity equity inclusion commitments products partnerships suppliers. diversity CEO Action for Diversity Inclusion Valuable 500 Ascend 5-Point Action Agenda ParityPledge. expanded Equity Advancement Initiative non-profit organizations Supplier Diversity Program majority-owned underrepresented groups.


diversity inclusion strategy metrics programs./diversity.


website. com. Annual Report 10-K Quarterly Reports 10-Q Current Reports 8-K amendments Sections 13 15 Securities Exchange Act 1934 available Investor Relations website. adobe. com SEC. contents not Annual Report 10-K.


announce financial website. adobe. SEC filings press releases calls webcasts.


website social media communicate investors public products services solutions comply disclosure obligations Regulation FD. website material information. encourage investors review information website social media channels.


executive officers January 16 2024 Shantanu Narayen. joined Adobe 1998 Vice President General Manager. 1999 Senior Vice President 2001, Executive Vice President Marketing. 2005,. President Chief Operating Officer December 2007, Chief Executive Officer. 2017 Chair Board. B. S. Electronics Engineering Osmania University M. S. Computer Science Bowling Green State University. Haas School Business University California Berkeley. Daniel Durn Financial. Adobe October 2021. Senior Vice President Chief Financial Officer Applied Materials. semiconductor August 2017 October 2021. Vice President Chief NXP Semiconductors. Chief Financial Officer Vice President GlobalFoundries Managing Director Head Mergers Acquisitions Mubadala Technology Fund. Vice President Mergers Goldman Sachs Company.Durn MBA Finance Columbia Business School U. S. Naval Academy B. S. Control Systems Engineering. Navy six years lieutenant. Anil Chakravarthy Digital Experience. President Digital Experience. joined 2020 Executive Vice President General Manager Worldwide Field Operations 2020. Chief Executive Officer Informatica August 2015 Executive Vice President Chief Product Officer September 2013 2015. Symantec cybersecurity Executive Vice President Information Security 2013. Director Product Management VeriSign. manager McKinsey Company. board Ansys. Silicon Valley Leadership Group 2021. Bachelor Technology Computer Science Engineering Institute Varanasi M. S. Ph. D. Massachusetts Institute Technology. David Wadhwani Digital Media. President Digital. June 2021. Venture Partner Greylock Partners October 2019.2015 2019 President CEO AppDynamics. Adobe Senior Vice President General Manager Digital Media 2005 Macromedia. Vice President Developer Products. bachelor’s computer science Brown University advisory board. advises early stage growth companies Gem Software. StoryCorps Fine Arts Museums San Francisco. December 2017 March 2023 Chief Product Officer Executive Vice President Creative Cloud. venture investor Benchmark 2016 2017. mobile strategy Creative Cloud 2012 2016, Behance. co-founded 2006 Chief Executive Officer 6 years. advisor investor Pinterest. Uber Technologies. Warby Parker. board Globality. board Cornell University Entrepreneurship Program board Smithsonian CooperHewitt National Design Museum. bachelor’s Cornell MBA Harvard Business School. People Officer Executive Vice President Employee Experience.Chen joined Adobe 1997 Chief People Officer Executive Vice President. 20 years sales customer service strategic planning. 2009,. appointed Vice President Chief Staff. 2018 promoted Senior Vice President November 2019 Executive Vice President January 2020 promoted Chief Officer. engagement manager McKinsey Company. BS electrical engineering Washington M. S. electrical engineering Carnegie Mellon MBA Harvard Business School. Dana Rao Vice President. joined Adobe April 2012 Vice President Intellectual Property Litigation patent trademark copyright 2018. Microsoft Corporation 11 years Associate General Counsel Intellectual. patent attorney Fenwick West. B. S. Electrical Engineering Villanova University George Washington University. Garfield Vice President. Vice President Finance Cloudflare. November 2017.Senior Vice President Chief Accounting Symantec March 2014 October 2017. Brightstar Senior Vice President January 2013 February 2014. Director Finance Advanced Micro Devices August 2010 December 2012. LoudCloud Ernst and Young. board member Adobe Foundation. Business Economics University California Santa Barbara.


results could differ from statements. discuss factors differences. occurrence could affect operations performance financial condition. factors affect more than one category not in order significance grouped by categories.


unsuccessful innovating rapid changes operating results.


operate in evolving markets expect innovation. introduce enhance products services solutions retain attract. Developing new products complex profitable investments technologies speculative not yield benefits. success products depends on factors timely development distribution marketing market acceptance compatibility with standards platforms technologies customer needs technological change technologies differentiation. fail anticipate trends resources business. generative artificial intelligence technologies marketing content disrupt industries business fail invest adapt. released new products Adobe Firefly enhancing incorporating AI products no assurance evolution AI Creative Cloud Document Experience Cloud. adapt meet needs business financial results harmed.


AI generative harm liability adverse financial results.


Social ethical issues AI generative AI reputational harm liability costs. incorporating AI technologies. AI development deployment content labeling governance ineffective acceptance harm unexpected outcomes.


AI regulation nascent stages development. evolving regulatory environment increase research costs liability inconsistencies legal frameworks. responsible approach AI no guarantee future AI regulations impact development practices monetization strategies indemnity protections compliance requirements regulatory action competitive harm legal


. new competition regulation AI requirements business financial results.


Uncertainty AI use generative AI investment frameworks proprietary datasets machine learning models approaches content creators costly. Developing testing deploying AI systems increase cost computing costs. costs impact margins AI without customers adopt. consumer reception monetization pathways uncertain strategies business financial results. New AI disrupt workforce needs negative publicity affect demand products business.


realize benefits disrupt business divert attention.


Investments acquisitions risks uncertainties business.risks uncertainties include •inability achieve financial strategic goals •difficulty integrating operations technologies products services solutions culture personnel acquired business •disruption distraction management personnel •challenges investment regulatory approval conditions limit benefits •entry markets minimal experience competitors stronger •inability retain personnel customers distributors vendors business partners •delay in purchasing decisions uncertainty higher costs to integrate business laws regulations additional compensation divest products services solutions amortize costs inability tax benefits •increased collection times elevated delinquency bad debt write-offs •difficulty maintaining controls procedures policies transition integration inability financial reporting security vulnerabilities in products •exposure to litigation claims risk additional debt interest expense leverage issuance equity securitiesownership earnings identify problems liabilities challenges diligence.


ability acquire businesses investments integrate impaired by adverse economic events trade tensions increased global scrutiny. countries United Europe Asia-Pacific considering stringent restrictions for transactions. Governments restrictions impact business financial results. if complete acquisition achieve financial goals realize benefits incur additional costs impact business results.


participate evolving competitive markets results suffer.


markets for products services solutions evolving competitive. expect competition. competitors range from to small specialized companies. competitors may develop products similar acceptance product development marketing adopt aggressive pricing policies. potential customers select products competitors. future success depends on consumers. New industry standards evolving distribution models limited barriers short product life cycles price global market conditions new products competitors pressure on pricing gross margins affect renewal upsell cross-sell rates customers. expect more competition AI. competitors may incorporate AI adoption affect business financial results. markets for standalone AI offerings competitive evolving. increasing competition from text-to-image generative AI technology. If reduced sales business. additional information risks see “Competition” Part I, Item 1 report.


reputation brands damaged business results.


reputation brands important business financial results. Maintaining enhancing brands substantial investments. reputation brands new products expectations new technologies backlash customers regulatory actions business practices failure commitments environmental social governance ethical political issues public scrutiny user privacy data data security breaches compliance failures approach AI. brands affected by products services solutions AI content misleading deceptive opinion illicit ends failure respond. result controversy claims defamation rights publicity illegal content property infringement harmful content misinformation bias misappropriation data privacy third-party AI personal injury torts. fail respond objectionable content users lose confidence brands. Entry markets weaker protection changes legal systems impact brands. fail maintain enhance brands incur excessive expenses business financial results.


interruptions failures products expose liability damage reputation harm financial results.


business online store. com Creative Cloud Document Cloud Experience Cloud solutions relies on hardware services hosted managed by us third-party providers disruption. redundancy for systems critical applications in disaster recovery planning not account all eventualities. If third-party service provider affected unavailable deliver products services solutions. Failure systems could disrupt business reputational harm notifications customers users future business. migrate data third-party environments. If transition interruptions impair delivery costs liabilities results reputation business.


possible hardware software failures could data loss information inaccuracies meet service levels comply notification requirements contractual obligations. ability collect report data delayed by factors access internet failure network software security breaches variability visitor traffic. deliver data reports real-time due to spikes activity failures network software. If fail plan infrastructure capacity needs rapid demand capacity service outages performance issues impact customers. strain on infrastructure capacity to regulatory notification requirements violations service financial liabilities customer dissatisfaction business. supply inaccurate information interruptions reputation lose customers liable for damages losses.


Security access data cyber harm reputation affect business.


products services solutions collect third-party. technologies networks cyberattacks viruses ransomware fraud worms social engineering denial-of-service malicious software insider threats cybersecurity incidents unauthorized access disclosure use loss destruction sensitive data.


Cybersecurity incidents caused human error malicious third parties sophisticated organizations nation-states state-sponsored organizations. risks elevated geopolitical tensions Russia-Ukraine war. unauthorized parties overcome security measures systems software defects design manufacture bugs vulnerabilities. malicious third parties induce employees disclose sensitive information via spamming phishing risk heightened hybrid model environment. Malicious actors engage fraudulent activities credentials stolen credit cards failure pay services terms service. combat fraudulent activities impacts revenue. unauthorized parties gain physical access infiltrate information systems


access products services content data. loss unauthorized access viruses worms ransomware malware harm litigation notification requirements.


devote resources security vulnerabilities engineering products enhancing security reliability code hardening penetration tests deploying updates reviewing security controls auditing products security training workforce improving incident response process. no security measures protection. costs prevent eliminate cybersecurity reduce operating margins. efforts third parties unsuccessful business interruptions cessation service loss customers.


security products services solutions critical. impossible to predict impact cybersecurity. Breaches security measures accidental loss disclosure unauthorized dissemination of proprietary sensitive data potential expose risk loss misuse. security vulnerabilities incidents result in claims liability fines costly notice requirements governmental inquiry oversight loss customer confidence harm business damage brand reputation. customers adopt security measures software suffer cybersecurity attack unrelated. breach reputational harm economic operational consequences implement safeguards future breaches.


maintain insurance technology liability. risks increase expand integrate products store data. delayed sales lower margins lost customers cyberattacks burdensome security measures failure affect financial results stock price reputation.


unable develop manage third-party relationships sales suppliers revenue business affected.


contract software distributors third parties products services solutions none responsible for net revenue. managing distribution channels sales partners complex global process. agreement terminated delay replacement results. face legal risk reputational harm export control violations workplace conditions anti-competitive behavior.


partner distribution channels effective lose sales customers revenue. rely on third-party distribution platforms subject to changes pricing terms privacy practices policies discretion platform provider. adverse changes affect financial results. channels not market favor other companies.


sell products services solutions direct sales force. Risks include hiring retaining motivating training. business if sales expansion generate efficiencies revenue. loss of sales employees relationships future accounts.


rely on third-party providers products services business operations operate systems cloud infrastructure data center facilities encryption authentication company email. third parties negatively affected relationships renew agreements expenses increase experience service interruptions. disruption damage failure systems interruptions harm business. interruptions cause issue credits penalties claims terminate subscriptions contracts affect attrition rates new customers financial results. business reputation harmed if believe services unreliable.


face risks multinational economic conditions harm financial.


revenue operations outside United States. multinational corporation subject risks economic conditions control forecasting results investments difficult interest economic labor conditions instability security concerns economic sanctions trade disputes armed conflicts wars laws. foreign financial accounting reporting burdens legislative regulatory requirements antitrust competition regulations free flow data local infrastructure difficulties managing staffing international operations liability delays loss sales trade restrictions sanctions export controls developing products multiple languages fraudulent business practices.


third parties international operations subject to risks. global economic conditions in insolvency inability credit delay obligations. third parties service providers suppliers distributors critical services products technologies business reputation harmed. customers’ spending rate demand affected by risks. If global sales reduced delayed canceled revenue may decline.


disruption financial markets banking partners cash management capital market transactions derivative programs. impact pay cash.


December 1, 2023 investment portfolio corporate debt money funds deposits. Treasury. credit liquidity market interest rate risks economic downturns impairment charges financial condition.


unable recruit retain personnel business harmed hybrid work model.


future success depends on service senior management skilled personnel. senior management acquired specialized knowledge skills loss harm succession plans. efforts attract retain skilled employees restrictions travel work visas. technology industry competition cybersecurity AI backgrounds demand-edge skill sets competitive hybrid remote arrangements. challenge attract retain security personnel. higher compensation costs management skilled personnel improved productivity sales. hybrid work environment operational workplace culture challenges objectives.


hire exceptional knowledge lower costs increases efficiency reduces expenditures. globalization competition talent increased impact increase compensation expenses.


enterprise offerings cycles increase costs unpredictable.


target large enterprise customers Adobe Experience Cloud Enterprise Term License Agreements face increased costs longer sales cycles greater competition less predictability. evaluation process longer involved educating. robust proposals extended-of-concept evaluation cycles extensive contract negotiations. customers demand complex configurations additional integration services features. Adverse macroeconomic conditions delays purchasing decisions. devote greater sales support increases costs time without assurance. devote more services resources costs assurance. sales cycles multi-phased complex unpredictable. revenue affected longer sales cycles extended collection cycles deferral revenue alternative licensing arrangements. enterprise sales pattern uneven higher sales final weeks.


subject risks laws harm business.


global company laws regulations customs internationally. trade compliance import export anti-boycott economic sanctions embargoes data consumer protection records management user-generated content privacy data residency corporate governance antitrust competition complaints anti-corruption gift policies conflicts of interest securities trade. application unclear. subject U. Foreign Corrupt Practices Act anti-corruption-bribery laws practices. employees contractors agents partners vendors policies. laws. Compliance costs changes reduced revenue profitability. Non-compliance fines damages criminal sanctions prohibitions damage reputation.


50% employees outside. exposed changes. jurisdictions wage hour labor standards data privacy unemployment tax compensation citizenship payroll taxes operating costs.


focus privacy expanding laws impact business liability.


subject to global data protection privacy security laws regulations codes business units data processing activities sensitive confidential personal information. laws inconsistent across jurisdictions interpretations. Government officials regulators privacy advocates class action attorneys personal data. interpretations business. General Data Protection Regulation shifting requirements differences uncertain enforcement priorities. Personal Information Protection Law China laws California Consumer Privacy Act Colorado Privacy Act Virginia Consumer Data Protection Act industry codes create privacy security compliance obligations expand potential liability. U. S. Securities and Exchange Commission’s Rules Cybersecurity Risk required disclosures cybersecurity incidents Form 8-K Form 10-K. incident disclosures costly negative publicity loss customer confidence diversion governmental investigations.


invested in readiness comply with requirements laws regulations codes interpretation affect reach prospective customers respond to requests access correction deletion implement business models address disclosure requirements. laws impact innovation business technologies AI machine learning demand onerous obligations in contracts. practices privacy data protection cybersecurity criticism lawsuits investigations claims proceedings regulators industry disrupt business reputation liability fines punitive measures prohibition sales restrictive judicial orders disgorgement data. collect store information customers comply obligations laws reputational harm.


Transferring personal information across borders complex legal requirements enforcement jurisdictions. European data transfers outside Area regulated litigated. mechanisms Standard Contractual Clauses EU - US Data Privacy Framework legal challenge decisions Court Justice European. suitability Standard Contractual Clauses data transfer challenge United States European Union - US Data Privacy Framework legal challenges. monitor transfer mechanisms outside European Economic Area adjust practices. judicial questions regulatory interpretations validity transfers Standard Contractual Clauses obligations potential sanctions fines non-compliance. countries China Australia New Zealand Brazil Hong Kong Japan requirements for cross-border transfers


localization personal data country. countries restrictive regulations data transfers permit data origin impact business financial condition results operations.


intellectual property portfolio rights source infringement unauthorized copying disclosure.


patents trademarks trade secrets copyrights intellectual property valuable. Infringement lost revenues reduce value. protect federal state common law rights administrative procedures contractual restrictions. protecting preventing unauthorized use difficult. combat software piracy lose revenue illegal use. parties may copy sell counterfeit. operating results. apply for patents United States foreign countries not always protection. patents may invalidated circumvented. challenges detecting patent infringement generative AI difficult to protect. generative AI source code rely on copyright. laws foreign countries protection. could fail. unauthorized disclosure source code lose trade secret protection. loss third parties customers affect revenue margins. If against unauthorized copying misappropriation business could.


subject litigation regulatory inquiries intellectual property infringement adverse business financial cash flows.


subject to legal proceedings claims regulatory inquiries additional arise. proceedings time consuming litigation damage consent decrees injunctive relief costs practices negative publicity management time diversion resources harm business results.


we subject to claims negotiations litigation third-party intellectual property rights including patent rights. disputes costly disruptive attention management personnel. Third-party disputes patent entities could liabilities royalty licensing arrangements unfavorable prevent products services injunctions sales disruptions operations satisfy indemnification commitments license. incurred may costs acquiring third-party intellectual property rights products contractual obligations. could harm business.


not prevailed every lawsuit. see “Legal Part II Item 8 Note 16 Consolidated Financial Statements.


tax rules regulations affect rates.


U. S. -based multinational company tax jurisdictions. judgment provision income taxes deferred tax assets. Tax laws States other countries jurisdictions change new interpretations business. countries European Commission


organizations Organization for Economic Cooperation Development made unprecedented assertions taxation proposed new laws contrary rules.


Changes in operating landscape laws tax rules affect tax rates business structure operations financial results. future tax rates affected by changes tax income profits valuation deferred tax assets liabilities tax rules unexpected negative changes business market conditions reduce tax benefits. increase tax rate profitability.


subject to examination income tax returns by domestic foreign tax authorities. assess outcomes provision reserved for adjustments. tax estimates reasonable assurance final determination financial position results.


government entities risks process.


provide products services solutions domestic foreign government entities risks challenges budgeting fluctuations spending cuts shutdowns competitive lengthy bidding process political influence complex procurement regulations requirements. incur-front time costs without assurance contract. regulated subject audits investigations violations termination penalties administrative sanctions fines suspension business harm reputation financial results. investments future sales government sectors security authorizations certifications. processes complex lengthy delayed. requirements change authorizations affect revised requirements.


change subscriptions renewals reporting period financial results suffer reflected revenue subscription term.


offerings subscription-based agreements. recognize revenue over terms 1 to 36 months. subscription revenue agreements previous quarters. Lower sales subscriptions reduced demand attrition rate not reflected in results future. subscription model difficult to increase revenue through additional sales revenue new customers recognized over subscription term. renewal rates may decline factors satisfaction features reliability prices security size customer base regulatory legal requirements composition base reductions spending levels activity. If or terms less favorable revenue may decline. impact revenue not reflected in financial results may affect future. If assumptions about revenue incorrect results may vary.


subject currency exchange rates hedge exposure.


operating results global. Geopolitical economic events war trade disputes sanctions


market volatility uncertainty caused currencies fluctuate. annualized recurring revenue currency rates may vary from actual revenue accounting principles United.


mitigate foreign currency exchange risks hedging trade-offs risk opportunity expense. review hedging program make adjustments. hedging offset adverse financial impact unfavorable foreign currency exchange rates financial condition business performance.


goodwill assets impaired record charge earnings.


test goodwill impairment annually. review intangible assets when carrying value declines stock price market capitalization reduced cash flow slower growth rates. record charge earnings statements impairment impacting results.


debt affect financial results.


December 1, 2023 $3. 65 billion senior unsecured notes $3 billion commercial paper program no. $1. 5 billion senior unsecured revolving credit agreement $3. 5 billion delayed draw term loan undrawn. December 1 2023 delayed loan agreement terminated. financial results cash vulnerability conditions future financing capital expenditures acquisitions service repay indebtedness.


senior unsecured notes commercial paper program revolving credit agreement compliance covenants. beyond control. breach waiver noteholders lenders outstanding debt due payable.


changes impact value liquidity debt equity securities costs refinancing. if credit ratings downgraded negative action interest rate revolving credit agreement could increase. Downgrades restrict financing affect terms.


Catastrophic events climate change business financial.


business on network apps websites. disruption data centers operations earthquake disasters power shutoff telecommunications failure epidemic pandemic attack interruptions damage loss intellectual property data security breaches loss. headquarters research development data centers operations San Francisco Bay Salt Lake Valley near earthquake faults. catastrophic event


data centers critical activities prevent operations products services solutions affect. catastrophic event region decrease demand. Climate catastrophic events increasing. regulations reporting requirements market dynamics stakeholder expectations environmental impacts impact business financial condition results.


epidemic COVID-19 effect operating results. financial condition factors outside control material impact businesses productivity customers employees suppliers partners. global pandemic risks Part I, Item 1A report.


price investment lose.


stock price volatile. factors Part I Item 1A beyond control affect changes estimates expectations revenue margins earnings revenue performance metrics investor analyst valuation models unearned revenue performance obligations revenue impact growth rates products technological advancements strategic alliances transactions stock repurchases loss large customers inability retain sales management team recruitment departure personnel results competitive landscape developments industry economic political market conditions events litigation regulatory actions.


market technology stocks experienced extreme fluctuations stock price unrelated financial performance. Volatility increased susceptibility to securities class action litigation costs attention resources affect business.


headquarters San Jose California. 7 million square feet office space. own San Jose properties research development sales marketing. lease properties States data centers.


lease Europe Middle East Africa Asia-Pacific research development sales marketing administrative. largest Bangalore Noida offices. 7 million. 5 million square feet.


fiscal 2023 hybrid model. facilities owned leased good suitable business.


Note 18 Statements lease obligations.


material Note 16 Consolidated Financial Statements incorporated.


EQUITY STOCKHOLDER EQUITY SECURITIES


common stock traded Nasdaq.


records transfer agent 905 holders common stock January 5, 2024. shares held brokers institutions estimate total.


anticipate cash dividends.


summary stock repurchases three months December 1 2023. Note 14 Consolidated Financial Statements stock repurchase programs. Shares Repurchased Price Paid Per Share Announced Plans Dollar Value Plans millions average price share repurchase 2 29, 2023 repurchased. 30 27, 2023. 28 — December 1, 2023.


December 2020 repurchase $15 billion stock 2024.


September 2023 stock repurchase prepayment $1 billion. December $354 million prepayment remained.


DISCUSSION FINANCIAL RESULTS


Consolidated Financial Statements Notes. financial condition 2022 Item 7 Annual Report 10-K 2 2022 filed SEC January 2023.


preparing Consolidated Financial Statements GAAP rules SEC assumptions judgments estimates assets liabilities revenue expenses disclosures. base historical experience factors. results differ. evaluate assumptions. discuss accounting policies estimates Audit Committee Board Directors.


believe assumptions judgments estimates revenue income taxes Consolidated Financial Statements. key based complex rules critical accounting policies. Historically assumptions judgments estimates differed results.


contracts include multiple goods services. offerings include on-premise software licenses cloud services. Determining services distinct judgment. concluded licenses cloud services in Creative Cloud Document Cloud not distinct revenue each recognized over subscription period. promise to Creative Cloud Document Cloud customers complete end-to-end creative design workflow solution across devices teams. promise solution integrates cloud-based on-premise-device features functionalities utility workflow efficiencies software cloud services.


Cloud features integral Creative Document Cloud include Creative Cloud Libraries access work settings preferences assets mobile shared reviews editing automatic rendering design multiple mediums Sensei artificial machine learning photo-editing content-awareness natural language processing optical character recognition document tagging.


asset liability method. expense recognized payable current. deferred tax assets liabilities recognized future tax consequences financial reporting tax operating loss tax credit carryforwards. judgment provision. valuation allowance reduce deferred tax assets realization.


assumptions judgments estimates current provision income taxes interpretation laws outcomes future examinations. established reserves potential exposures tax challenged. assess outcomes examinations adequacy provision reserves.


examinations different recorded affect provision taxes effective tax rate period.


Note 1 Consolidated Financial Statements accounting pronouncements.


fiscal 2023 demand Digital Media Experience innovative product roadmap. growth initiatives software subscription revenue.


Digital Media leader Creative Cloud desktop tools mobile apps services designing publishing content 3D experiences. Adobe Express web mobile app edit customize content. 2023 Adobe Firefly images text effects. Cloud Photoshop Express. cross-product integration updates enhancements cloud services storage syncing machine learning artificial marketplace social community features Stock Behance app creation enterprise deployments team collaboration affordable pricing.


offer Creative Cloud students teams enterprises. expect revenue growth attracting users features products Adobe Express Firefly delivering features technologies share review generative AI. built marketplace subscribers delivery purchase stock content. strategy Creative Cloud increase revenue attract new customers grow recurring revenue.


strategies awareness purchase subscriptions Creative Cloud. strategies include increasing value desktop mobile apps targeted promotions offers. shift Cloud subscriptions Enterprise Term License Agreements revenue perpetual licensing immaterial business.


market leader Document Cloud Adobe Acrobat mobile apps cloud document services create collaborate review approve sign track documents platform. includes Acrobat Sign Scan. subscription perpetual licenses Creative Cloud All Apps subscription.


Creative Document Cloud data-driven Adobe Experience Cloud awareness acquisition engagement retention optimize journeys product-led growth.


Annualized Recurring Revenue key performance metric Digital Media segment. independently revenue deferred revenue performance obligations. adjust ARR exchange rate changes. ARR results


fiscal year currency rates beginning held constant. calculate ARR


Cloud Subscriptions ETLA Contract


Cloud Annual Subscriptions ETLA Contract


ARR 2023 $12. 37 billion $10. 98 billion. Cloud $2. 81 billion $2. 28 billion. Digital Media ARR $15. 17 billion $13. 26 billion. ARR $15. 33 billion $160 million higher.


. Creative revenue $11. 52 billion. 46 billion 10% growth. Document Cloud $2. 70 billion. 38 billion 13%. Digital Media $14. 22 billion $12. 84 billion 11% user.


market leader Digital Experience segment. Adobe Experience Cloud apps services manage journeys personalized experiences deliver intelligence. Adobe Experience Platform solutions.


Adobe Experience Cloud solutions pillars insights audiences. products Analytics Customer Journey Analytics Product Analytics Real-time Customer Data Platform deliver data tailored experiences. commerce. content multi commerce experiences. journeys. manage personalize journeys Marketo Engage Campaign Target Journey Optimizer. planning workflow. products measure optimize marketing investments Mix Modeler plan manage collaborate execute workflows Workfront.


marketing revenue marketers users Digital Experience include advertisers campaign managers publishers data analysts content managers social marketers marketing executives information management technology executives. Adobe products. combining creativity science manage measure monetize content.


direct sales force Digital Experience solutions ecosystem partners marketing agencies systems integrators software vendors. investments scale financial results reflect experience-led growth strategy.


Digital Experience $4. 89 billion. 42 billion 11%. subscription revenue $4. 33 billion. 88 billion.


corporation global risks macroeconomic inflationary interest rates foreign currency economic slowdowns recessions geopolitical pressures trade regulations. monitor impacts business results. foreign currency exchange rate fluctuations revenue earnings 2023 2024.


revenue earnings predictable subscription-based business model implications macroeconomic events business financial position uncertain. “Risk Part I Item 1A impact macroeconomic.


Digital Media $15. 17 billion. billion. 26 billion. revenue $11. 52 billion. billion billion. Document Cloud revenue $2. 70 billion $316 million. Experience revenue $4. 89 billion million. obligations $17. 22 billion $2. billion. 19 billion. revenue $2. 35 billion $189 million. 17 expenses $10. 41 billion. billion. 34 billion. income $5. 43 billion million. 76 billion. flows $7. 30 billion decreased $536 million 7%. billion.


Revenue fiscal 2021 extra week first quarter due 52/53 week calendar 53-week 2023 2022 52-week. millions 2023-2022 Subscription#18,284,388,573 Percentage revenue Product Percentage revenue Services Percentage revenue#19,409#17,606#15,785


subscription revenue fees subscription service support Creative Cloud Adobe Experience Cloud Document Cloud services. recognize revenue agreements commencement service. revenue offerings performance benefit consumption recognized usage basis.


segments Digital Media Experience Publishing Advertising. Subscription revenue 2023 2022 2021 millions Digital Media,838,385 Digital Experience Publishing Advertising Total subscription revenue,284,388,573


product revenue fees on-premise software fixed usage original equipment manufacturer royalty agreements. recognize product revenue software available criteria met.


services revenue fees consulting training maintenance support on-premise licenses advertising. sell consulting contracts time-materials fixed-fee. revenues recognized performed performance. Training revenues services performed. maintenance support desktop upgrades technical support recognized term. Transaction advertising revenue recognized performance obligations.


fiscal 2023 categorized products segments teams businesses enterprises create publish promote content productivity documents content. customers professionals photographers video editors designers


developers communicators students marketers workers consumers. platform products services experiences analytics commerce. customers marketers advertisers agencies publishers merchandisers web analysts data scientists developers executives. eLearning publishing web conferencing web app high printing Adobe Advertising.


millions 2023-2022 Digital Media#14,216,842,520 Percentage revenue Digital Experience,867 Percentage revenue Publishing Advertising Percentage revenue revenue#19,409#17,606,785


Revenue Digital Media 2023 2022 2021 millions 2023-2022 Creative Cloud,459 Document Cloud Total Digital Media revenue,216,842,520


Digital Media increased $1. 37 billion 2023 2022 Creative Document Cloud subscription demand digital engagement migrating higher offset foreign currency fluctuations.


Digital Experience increased $471 million 2023 2022 additions offset fluctuations.


millions 2023-2022 Americas#11,654,251#8,996 Percentage total revenue EMEA,252 revenue APAC Percentage revenue revenue#19,409#17,606#15,785


revenue 2023 increased regions compared 2022. fluctuations revenue attributable factors.


revenue 2023 impacts foreign currency mitigated hedging program. Dollar strengthened against EMEA APAC currencies decreased revenue. $371 million. impacts offset gains cash flow program $41 million.


Note 2 Financial Statements revenue.


millions 2023-2022 Subscription$#1,822#1,646,374 Percentage revenue Product Percentage revenue Services% Percentage revenue cost revenue$#2,354,165#1,865


subscription revenue hosting data center network infrastructure. compensation royalty fees software amortization intangible assets.


subscription revenue 2023 Hosting data center costs Loss Royalty Amortization intangibles


subscription revenue 2023 loss litigation.


product revenue third-party royalties localization manufacturing.


compensation contracted costs consulting training hosting data center.


services revenue increased 2023 2022 compensation costs offset fees.


millions 2023-2022 Research development#3,473#2,987#2,540% Percentage total revenue Sales marketing,321 revenue General administrative revenue Amortization intangibles revenue operating expenses#10,405#9,343#8,118


Research development expenses compensation software hosting data center facilities computer equipment software.


expenses 2023-2022 Incentive compensation cash stock benefits Hosting data center costs insignificant


research development recruiting hiring software developers critical related offerings. focus long-term opportunities end markets subscription service offerings apps tools.


Sales marketing expenses compensation contract acquisition commissions travel facilities supply personnel. revenue advertising trade shows public relations market development programs.


Sales marketing expenses 2023 compensation benefits Incentive cash stock insignificant items


expenses compensation travel facilities finance resources legal executive personnel. legal accounting fees bad debts computer equipment software charitable contributions insurance.


expenses 2023-2022 Professional fees compensation benefits Incentive compensation cash stock insignificant items


consulting fees 2023 2022 costs acquisition Figma.


millions Change 2023-2022 Interest expense Percentage total revenue Investment gains net Percentage revenue Other income net Percentage revenue non income#149(90)(97)


Percentage.


debt instruments. senior payable February August 1.


Investment unrealized deferred compensation plan.


interest cash equivalents income investments. gains losses foreign exchange gains losses.


income increased 2023 2022 interest income rates cash balances.


millions 2023-2022 income taxes,371 Percentage total revenue Effective tax rate


tax rate decreased 2023 due net tax benefit non-U. S. operations.


tax rate 2023 lower. 21% benefits. research tax credit non-U. operations offset state.


recognize deferred tax assets likely evidence. maintain valuation allowance reduce realizable. total valuation allowance $405 million December 1, 2023 state credits.


U. multinational company jurisdictions. tax law subjects earnings foreign subsidiaries. allows exemption distributions.


global tax policy domestic bodies consider introduce changes multinationals Adobe. account finalized enactment.


2023 U. S. Tax Act required capitalize amortize research development costs. adverse impact offset benefit foreign-derived intangible income deduction.


Note 10 Financial Statements taxes.


liabilities unrecognized tax benefits $501 $321 million $289 million 2023 2022 2021. $356 $203 million $199 million tax rates.


December 1 2023 2 2022 accrued interest penalties-term income taxes.


timing resolution income tax examinations uncertain tax payments audit settlement process. cause fluctuations tax assets liabilities. next 12 months audits conclude statutes limitations expire. resolution unrecognized tax benefits decrease $60 million next 12 months.


future tax rates affected by changes tax income earned profits valuation deferred tax assets liabilities tax rules unexpected changes business market conditions reduce tax benefits.


tax laws United States other countries jurisdictions change new laws interpretations. countries bodies European Commission economic organizations Organization for Economic Cooperation and Development unprecedented assertions about taxation proposed new laws contrary to rules. Changes landscape tax could affect tax rates business structure operations financial results.


subject to examination income tax returns by domestic foreign authorities. assess outcomes provision adjustments. record interest penalties unrecognized tax benefits income tax expense. tax estimates reasonable assurance final determination financial position.


source cash revenue. uses business expenses payroll taxes marketing hosting stock repurchase program. sources maturities sales short investments. acquisitions notes purchases property taxes equity.


Statements Cash Flows. 1 2 2022 Cash equivalents,141,236 Short investments Working capital Stockholders’ equity,051


cash flows 2023 2022 2021 millions cash operating,302,230 investing activities(3,537) financing,182)(6,825),301 Effect foreign currency rates cash equivalents change cash#2,905


2023 net cash $7. 30 billion income adjusted non-cash items. 2023 U. S. Tax Act capitalize amortize research development costs. income taxes cash flows. prepaid expenses timing billings. offset deferred revenue Digital Media Experience.


2023 cash $776 million maturities sales capital expenditures.


2023 cash $5. 18 billion due common stock repurchases taxes repayment 2023 Notes. offset treasury stock employee stock purchase plan. Repurchase.


cash equivalents balances fluctuate 2024.


Cash operations risks Part I Item 1A. business plan revenue existing cash equivalents investment balances anticipated cash flows credit facility working capital requirements next twelve months foreseeable future.


cash portfolio December 1, 2023 corporate debt money funds time deposits. Treasury. firms cash.


continue investing activities investments purchases hardware sales marketing support facilities expansion. cash reserves repurchase stock acquire companies complementary business.


September 15, 2022 merger Figma. $20 billion half cash half stock. December 17, 2023 termination agreement. December paid termination fee $1 billion cash.


January 2023 delayed credit agreement senior unsecured term loan $3. 5 billion funding purchase fees acquisition Figma. December 1 2023 no outstanding borrowings. terminated.


$1. 5 billion unsecured revolving credit agreement lenders loans through June 30, 2027. additional $500 million maximum $2 billion. December 1, 2023 no outstanding borrowings $1. 5 billion credit line available borrowing. cash dividends default. cash dividends.


September 2023 established commercial paper program unsecured $3 billion maturities 397 days. proceeds purposes working capital expenditures acquisitions stock repurchases refinancing. December 1, 2023 no borrowings.


$3. 65 billion senior notes. December 1 2023 value $3. 63 billion maximum interest $321 million. Interest payable semi-annually February 1 August 1. financial covenants. Note 17.


purchase obligations goods services. December 1, 2023 non-cancellable $4. 93 billion contracts third-party hosting data center services. increased obligations $2. 3 billion December 2028. Note 16 Financial Statements.


lease facilities data centers 2032. December 1, 2023 obligations $484 million. Note 18 lease obligations.


2023 U. S. Tax Act capitalize amortize research development costs. adverse impact rates taxes offset foreign-derived income deduction.


stock repurchase program minimize dilution repurchase market agreements parties. December 2020 Board repurchase $15 billion common stock 2024.


2023 repurchased 11. 5 million shares 7. $429. 65 4. million $348. 46 accelerated.


fourth quarter 2023 prepayment $1 billion. December 1, 2023 $354 million prepayment remained.


1, 2023 accelerated share repurchase institution prepayment $2 billion 2. 5 million shares 75% prepayment. $2 billion $150 million 2020 authority.


Equity Matters Purchases Equity Part II Item 5 stock repurchases quarter December 2023 Note 14 repurchase.


provide indemnifications varying scope to customers channel partners against intellectual property infringement products subject to claims. costs not significant unable estimate maximum impact future results.


permitted Delaware law agreements indemnify officers directors for events serving. indemnification covers events lifetime. maximum future payments unlimited director insurance coverage reduces exposure recover future amounts paid.


market instruments non-trading.


outside transact business. Dollars currencies exchange rates. exchange option forward contracts hedge currency revenue expenses. hedge foreign currency assets liabilities forward contracts risk earnings exchange rates.


foreign currency 2023 2022 2021 millions Euro,487,209 Japanese Yen,127,456 British Pounds Australian Dollars


December 1, 2023 foreign exchange contracts $3. 83 billion $1. 52 billion Euros $773 million Indian Rupees $634 million Pounds $409 million Japanese Yen $350 million Australian Dollars $135 million currencies. contracts expire November 2024. credit losses settlement. collateral security agreements.


sensitivity analysis performed foreign exchange derivatives December 1, 2023. measures market value 10% shift exchange rates U. Dollar. Black-Scholes option pricing model. 10% increase. Dollar hedged asset instruments $142 million. 10% decrease. $1 million.


use foreign exchange contracts hedge local currency expenses hedge. revenue offsets expenses. long-term exposures earnings non. Dollar subsidiaries. December 1, 2023 December 2 2022 $1. 03 billion $770 million. hedge.


use exchange contracts speculative trading hedge currency rates. review hedging program assess need financial instruments hedge.


use foreign exchange options contracts hedge revenue Euros British Pounds Japanese Yen Australian Dollars expenses Indian Rupees. risk earnings exchange rates. contracts maturities twelve months. revenue expenses not speculative.


record changes cash flow hedges revenue expenses income Balance Sheets forecasted transaction. earnings reclassify gain loss revenue


expenses. transaction reclassify gain loss cash flow hedge income revenue expenses. fiscal year December 1, 2023 no net gains losses revenue expenses hedges transactions.


derivatives foreign currency contracts assets liabilities non-functional risk earnings exchange rates. contracts fair value recorded Consolidated Statements Income. reduce impact exchange rate assets liabilities. December 1, 2023 derivatives maturities 180 days or less.


Note 6 Statements instruments.


December 1, 2023 debt securities short-term investments $701 million. interest rates affect market value. sensitivity analysis-term portfolio hypothetical changes yield curve. 150 point increase interest $6 million decrease value. 150 decrease $6 million increase.


December 1, 2023 $3. 65 billion senior notes fixed rates financial risk. $3. 63 billion fair value $3. 39 billion.


Note 17 Financial Statements senior.


. Balance Sheets Income Comprehensive Income Stockholders Equity Cash Flows


Santa Clara California PCAOB 185


financial statement schedules omitted required information not applicable Consolidated Financial Statements Notes.


1 2023 2 2022 Cash,141,236 investments Trade receivables $16 $23,224 Prepaid expenses assets,084 Property equipment lease Goodwill,805 intangibles Deferred income taxes assets,779,165 LIABILITIES EQUITY Trade payables Accrued expenses Deferred revenue Income taxes lease,251 Long liabilities Deferred revenue taxes lease,261 Commitments contingencies Stockholders’ equity Preferred stock. 2 shares Common stock.900 authorized 601 issued 455 outstanding-capital,586 earnings,346,319 income Treasury stock 139 shares,843) equity,051 liabilities equity,779,165


Notes Statements.


Ended 1 2023 2 2022 3 2021 Revenue Subscription,284,388,573 Product Services Total revenue,409,606,785 Cost Subscription,374 Product Services,165 Gross profit,055,441 Operating expenses Research development,987 Sales marketing,351,321 General administrative Amortization intangibles operating expenses,405,343 income Non income Interest expense Investment gains income non income Income before taxes Provision taxes,371 Net income,428 income share.. Shares compute diluted income


Ended 1 2023 2 2022 3 2021 Net income,428 income net taxes-sale securities Unrealized gains losses(39) Reclassification Net increase Derivatives hedging instruments Unrealized gains losses Reclassification Net increase Foreign currency translation adjustments income net taxes income net taxes#5,436,600#4,843


Stock Paid Capital Earnings Income Stock Balances November 27, 2020,357,264 Net income comprehensive income net taxes Re-issuance treasury stock compensation plans Repurchases common stock,950 Equity awards Stock-based compensation Value shares deferred compensation plan Balances December 3, 2021,428#23,905,399) Net income comprehensive income net taxes Re-issuance treasury stock compensation plans(342) Repurchases common stock,550) Stock-based compensation shares compensation plan Balances December 2 2022#9,868#28,319(23,843),051 Net income,428 income taxes Re-issuance treasury stock compensation plans Repurchases common stock(4,414) Stock-based compensation shares deferred compensation plan Balances December 1, 2023#11,586#33,346#16,518


Ended 1 2023 2022 3 2021 Cash flows Net income,428 Adjustments Depreciation amortization accretion Stock compensation Reduction operating lease assets Deferred income taxes Unrealized losses investments non-cash items Changes operating assets liabilities Trade receivables Prepaid expenses Trade payables Accrued expenses liabilities Income taxes Deferred revenue Net cash,230 Cash flows activities Purchases short-term Proceeds Acquisitions Purchases property equipment long-term investments Proceeds salesNet cash investing(3,537) financing Repurchases common stock,400,550,950 re treasury stock Taxes equity awards Repayment debt financing activities cash,182)(6,825),301 foreign currency exchange equivalents(51) Net change cash equivalents,905,236,844 end year,141,236,844 Supplemental disclosures Cash income taxes refunds interest


Adobe personalized digital experiences. four decades innovations transformed institutions governments media. products services solutions manage deliver. diverse user base consumers communicators professionals developers students businesses enterprises. creators artificial. products services unleash creativity accelerate productivity power businesses. operations Americas Europe Middle East Africa Asia-Pacific.


Consolidated Financial Statements include Adobe subsidiaries intercompany accounts transactions. prepared accounting principles rules Securities Exchange Commission.


preparing Consolidated Financial Statements GAAP rules SEC estimates judgments amounts. Estimates sales allowances debts stock compensation value assets liabilities income taxes. results differ estimates.


fiscal year 52 53-week ends Friday November 30. results 2021 extra week 52/53 week calendar 2023 2022 52-week.


revenue cloud subscriptions offerings licenses maintenance plans consulting services training support. arrangements promises.


Revenue recognized contract between us customer transfer control promised products services consideration. enter contracts combinations products services separate obligations Document single performance obligation. Revenue recognized net allowances returns taxes remitted to governmental authorities.


enter revenue arrangements products services solutions. arrangements cancellation rights options renew licenses funds Adobe products.


hosted services allow access software without. Cloud-hosted sold fee-per-subscription consumption usage.


recognize revenue over contractual service term 1 to 36 months hosted services priced transactions delivery consumption over continuing end. Over-usage fees transactions billed contract terms included transaction price. Fees based transactions invoicing aligned performance benefit consumption accounted “as-invoiced” expedient. Revenue subscriptions fee per period recognized term customer receives consumes.


cloud-enabled services integrated with on-premise software Document components distinct revenue recognized over subscription period.


subscription support plans performance obligations. Revenue recognized contractual terms classified subscription revenue.


Licenses on-premise software purchased fixed original equipment manufacturer royalty agreements. Revenue non-cloud licenses without cancellation renewal options recognized classified product revenue Consolidated Statements Income. on-premise term cancellation renewal maintenance support subscription revenue.


services revenue fees consulting training maintenance support on-premise licenses advertising. sell consulting contracts time-materials fixed-fee. revenues recognized performed performance. Training services performed. maintenance support desktop upgrades enhancements technical support recognized over term. transaction-based advertising fees impressions invoicing performance benefit consumption accounted “as-invoiced”.


contracts include multiple goods services. offerings include on-premise software licenses cloud services. Determining services distinct judgment. concluded licenses cloud services in Creative Cloud Document Cloud not distinct revenue each recognized over subscription period. promise to Creative Cloud Document Cloud customers complete end-to-end creative design workflow solution across devices teams. promise solution integrates cloud-based on-premise-device features functionalities utility workflow efficiencies software cloud services.


Cloud features integral Creative Document Cloud include Creative Cloud Libraries access work settings preferences assets mobile shared reviews editing automatic rendering design multiple mediums Sensei artificial machine learning photo-editing content-awareness natural language processing optical character recognition document tagging.


Standalone selling price established maximizing observable inputs historical prices obligations go-to-market model geography. products multiple values depending channel. not observable. maximize use observable inputs pricing practices performance obligations selling models.


Capitalized costs contract amortized expected benefit 5 years. evaluated factors contract length renewals customer life useful lives. benefit less than one year expense incurred expedient. evaluate changes assumptions data.


revenue arrangements include third-party goods services resale fulfillment advertising evaluate principal report revenues gross or agent net. consider control specified goods services before transferred customer evaluating party responsible promise discretion establishing price terms conditions.


offer rights return rebates price protection policies resellers customers. estimate record reserves transaction price. Returns rebates offsets estimated contract assessed information.


maintain revenue reserves for rebates rights return price adjustments. Distributors return previous quarter. end lives new. offer rebates distributors resellers end-user customers. Transaction price reduced performance objectives volume.


quarterly revenue reserved calculated historical trends data. reserves historical data historical reserve rate. apply rate current revenue future returns. provide specific reserve portfolio-level requirements. estimate affected product sell-through product plans factors.


subscription contracts non-cancellable limited customers cancel prior notice term terminate agreements without penalty. customer cancels not entitled to refund for prior services. Contracts termination rights without penalty accounted committed period.


optional purchases material rights. usage-based license agreements reporting after fiscal period. estimate accrue license revenue. base estimates factors sales seasonality business information. estimate variable consideration sales-based royalty agreements exception revenue.


record property equipment cost depreciation amortization. lives 3 20 years computers 5 furniture 15 improvements 35 years buildings. Leasehold improvements amortized lease term life.


determine arrangement lease at contract inception. lease arrangements data center arrangements judgment required lease. judgment involves identified asset distinct or right to capacity asset not distinct. asset judgment right direct use.


finance leases. Operating leases recorded Consolidated Balance Sheets. Right-of-use assets lease liabilities measured lease commencement date value remaining lease payments discount rate. incremental borrowing rate discount interest. December 1, 2023 leases 8 years options extend 14 years terminate 1 year. Optional periods extend included. one land lease expires 2091. Operating lease expense recognized straight-line lease term. lease non-lease components common area maintenance single lease data center leases.


accounting leases term 12 months recorded balance sheet expense recognized term.


Goodwill assigned to reporting units acquisition. review goodwill impairment annually second quarter fiscal year fair value below carrying amount. impairment test qualitative assessment macroeconomic conditions industry market cost factors financial performance management strategy customers net assets stock price. If fair values greater than carrying amounts quantitative goodwill impairment test not performed.


qualitative assessment quantitative analysis evaluate goodwill impairment fair value reporting units carrying value. equal weighting market approach


future cash flows. cash flow assumptions revenue costs factors.


completed annual goodwill impairment test second quarter fiscal 2023. determined fair value exceeds carrying amounts. no indication impairment quantitative goodwill impairment test not performed. events changes another year.


amortize intangible assets finite lives review impairment. monitor events long-lived recoverable. assess recoverability carrying value future cash flows. cash flows less than carrying amount recognize impairment loss excess carrying amount over fair value. intangible impairment charges periods.


intangible assets amortized estimated lives 3 to 14 years. Amortization economic benefits straight-line. weighted lives Customer contracts relationships Purchased technology Trademarks Other


asset liability method. expense recognized payable current. deferred tax assets liabilities recognized future tax consequences financial reporting tax operating loss tax credit carryforwards. judgment provision. valuation allowance reduce deferred tax assets realization.


assumptions judgments estimates current provision income taxes laws outcomes examinations. established reserves exposures challenged. assess outcomes examinations adequacy provision. policy record interest penalties unrecognized tax benefits expense.


net taxes against financial statements. taxes not revenue.


Prepayments repurchases stock treasury stock shares delivered excluded net income share.


account treasury stock cost method. re-issued higher difference recorded additional paid-in-capital Balance Sheets. lower difference recorded additional paid-in-capital gains offset losses. no stock gains losses recorded reduction retained earnings.


. 2022 2021 $970 million. billion $865 million.


translate assets liabilities foreign subsidiaries rates. revenue expenses monthly rates. include translation adjustments stockholders’ equity.


transact. Dollars currencies. foreign exchange hedge currency revenue expenses Euros British Pounds Japanese Australian Dollars Indian Rupees. hedge foreign currency assets liabilities contracts risk exchange rates.


recognize derivative instruments assets liabilities Balance Sheets measure fair value. Gains losses value accounted use. Contracts adjusted value earnings.


Gains losses foreign exchange contracts recorded income Consolidated Statements Income. Foreign exchange contracts Treasury lock agreements cash flow hedges recorded net tax income until forecasted transaction. affects earnings reclassify gain loss revenue expense Treasury hedge revenue interest expense.


credit risk investments repurchase foreign currency contracts trade receivables.


investment portfolio securities diversified types industries issuers. cash investments managed by financial institutions. limits credit exposure credit risk.


netting credit risk net settlement counterparty. collateral security agreements counterparties


exchange cash collateral value thresholds.


Credit risk receivables limited to OEMs dealers distributors hardware SaaS offerings. credit review for new distributors dealers OEMs. perform credit evaluations require letters credit guarantees. credit limit based on risk country risk not contingent on resale collection payments. contracts with agencies sequential liability until payment received. evaluate credit-worthiness. license software SaaS services pay not revenue contract. revenue until termination completion services.


November 2023 Financial Accounting Standards Board issued Update. 2023-07 Segment Reporting expands enhanced expenses. 2025 2026. Early adoption. evaluating impact financial statement disclosures.


no recent pronouncements adopted guidance fiscal 2023 us.


report segment information approach. internal reporting performance source reportable segments.


Chief Executive Officer reviews revenue gross margin segments review operating expenses. identify allocate assets by segments.


business segments create publish promote content productivity. customers professionals designers developers communicators creators students marketers workers consumers. platform products create manage execute monetize optimize experiences analytics to commerce. customers marketers advertisers agencies publishers merchandisers merchants web analysts data scientists developers executives. products eLearning technical document publishing web conferencing web app development high printing Adobe Advertising.


segment revenue results 2023 2022 2021 millions Fiscal Revenue,216,409 Cost revenue Gross profit,551,290,055 Gross profit percentage revenue Fiscal Revenue,842,606 Cost revenue,165 Gross profit,281,920,441 Gross profit percentage revenue Fiscal Revenue,520,867,785 Cost revenue Gross profit,091#2,546 Gross profit percentage revenue


categorize revenue geographic customer. Revenue 2023 2022 2021 millions Americas United States,460,217,194 Americas,654,251 EMEA,252 APAC,762 Revenue,409,606,785


Digital Media 2023 2022 2021 millions Creative Cloud,459 Document Cloud Digital Media revenue,216,842,520


Subscription revenue 2023 2022 2021 Digital Media,838,385 Digital Experience Publishing Advertising revenue,284,388,573


receivable recorded unconditional right invoice before payment. revenue recognition invoicing. obligations payment before license. receivables unbilled related license revenue invoicing. December 1, 2023 $2. 22 billion unbilled receivables $80 million. December 2, 2022 $2. 07 billion unbilled receivables $93 million.


maintain allowance doubtful accounts uncollectible trade receivables based reserves. experience credit-worthiness conditions future. allowance $16 million $23 million December 1, 2023 2 2022.


contract asset recognized conditional right consideration transfer control. subscription service contracts transaction price billings. prepaid expenses Consolidated Balance Sheets. asset balances impairment experience credit-worthiness conditions. impairments 2023 2022. assets $141 million $97 million December 1, 2023 2 2022.


Deferred revenue billings subscription services non-cancellable funds deposits. recognized transfer control. invoiced installments revenue recognized subscription period. balance influenced invoice duration timing size business linearity. total contract value non-cancellable subscription agreements.


Payment terms conditions vary contract type include payment within 30 to 60 days. revenue recognition from invoicing contracts include significant financing. purpose invoicing simplified purchasing not receive financing. potential financing fees insignificant.


December 1, 2023 deferred revenue $5. 95 billion $115 million refundable deposits. Refundable deposits cancellation right products. Arrangements enterprise customers non-cancellable funds renew licenses purchase Adobe products. Non-cancellable funds 5% deferred revenue.


December 2, 2022 deferred revenue $5. 41 billion. increases payments transfer control offset decreases revenue recognized. December 1, 2023 $5. 24 billion revenue recognized.


Transaction price obligations represents contracted revenue recognized deferred unbilled amounts. influenced by timing renewals contract term. expedients exclude billed optional purchases sales royalties consumed estimated amounts variable consideration.


obligations $17. 22 billion December 1, 2023. Non-cancellable-refundable funds agreements 5% obligations. 69% obligations 12 months remainder.


recognize asset incremental costs contract longer year. determined sales incentive programs meet.


costs capitalized sales commissions. fringe benefits payroll taxes costs contracts payments.


costs contract amortized 5 years. sales marketing expense Consolidated Statements Income. 2023 2022 2021 amortized $254 $238 $212 million sales expense. impairment losses.


contract costs $656 million $629 million 2023 2022 $422 million $406 million long-term Balance. remaining current expenses assets.


liabilities returns reserves rebates credits. expenses Consolidated Balance Sheets. $111 $106 million December 2023 2022.


no customers 10% revenue over 10% receivables.


September 15 2022 merger Figma. $20 billion half cash stock.


December 17, 2023 agreement Figma merger. December 2023 paid termination fee $1 billion operating expenses 2024.


October 7, 2021. cloud video platform $1. 24 billion cash. financial results. included Consolidated Financial Statements. Digital Media segment.


table purchase price assets net liabilities estimated values October 7 2021. Life Purchased technology research development/A Trademarks Customer contracts relationships assets Net liabilities/A Goodwill/A purchase price


Capitalized purchased technology indefinite lived research.


Non-deductible.


December 7, 2020 Workfront workflow platform $1. 52 billion. financial results included Consolidated Financial Statements. Digital Experience.


table purchase price allocation assets net liabilities values December 7 2020. contracts relationships Purchased technology Backlog Trademarks assets Net liabilities assumed/A Goodwill/A purchase price


Cash equivalents liquid securities maturities three months purchase. investments “available-for-sale. carry fair value prices. Unrealized gains non-credit losses included income Consolidated Balance Sheets. credit-related losses recorded income allowance losses. Gains losses determined method recognized Statements Income.


Cash equivalents investments December 1 2023 Cost Gains Losses Value assets Cash equivalents Money market funds Time deposits equivalents income securities Asset-backed securities Corporate debt. securities. Treasury securities short-term investments cash equivalents short-term investments


Cash equivalents investments December 2 2022 Cost Gains Losses Value assets Corporate debt securities Money market funds Time deposits equivalents income securities Asset-backed securities Corporate debt securities Foreign government securities Municipal securities. Treasury short-term investments cash equivalents short investments


Note 5 financial instruments.


table summarizes estimated short-term debt securities maturities December 1, 2023 millions year two years three years