Welcome, everybody, to Adobe Summit 2025 Investor Meeting. I'm Steve Day, Interim Head of Investor Relations here at Adobe. Thank you all for coming. It's great to see such a large turnout from our investment community here in the room. I'd also like to thank and welcome everybody who's joining us globally on the webcast. Thank you for joining. Finally, I'd like to extend a warm welcome to our board members that are joining us in the room today, as well as to Gloria Chen and Laura Blasch, who's joining us as well as the other members of our executive team in the audience today. Before we start, some housekeeping. The statements that we'll be making today do involve forward-looking statements that involve risk, uncertainty, and assumptions. Our actual results could materially differ from those set forth in these statements.
Please refer to our SEC filings, as well as the Q1 earnings press release, which has more information and the risk factors that you'll find as part of our periodic filings. The non-GAAP disclosures and reconciliations you'll find at the end of the presentation will be posted to the IR website today. Okay, let's take a quick look at today's agenda. Shantanu will kick us off with an update on Adobe's strategy. David will follow that and go into detail on the strategy for the business professional and consumer and the creative professionals and creators' businesses. Anil will uncover strategy for the creative and marketing business before Dan sort of brings us home with Adobe's growth agenda. After the presentations, Shantanu, Dan, David, and Anil will join us up here on stage for Q&A.
Before we get started, though, just let me take a moment to remind you of some of what you heard from us on the earnings call last week. Strong Q1 results, beating the high end of our target ranges for all metrics, as well as generating almost $2.5 billion in cash from operations and buying back 7 million shares. Here is Adobe's Q2 targets as a reminder. Finally, we reaffirmed our full-year targets for FY2025. Before I hand over to Shantanu, here is a view of the new customer groups disclosure that we also shared last week. This is a good visual to remind you of how we are looking at our business in the new customer groups. Business professionals and consumers comprise the full Acrobat business for both the Document Cloud and the Creative Cloud, as well as Adobe Express.
Creative and marketing professionals comprise the remainder of Creative Cloud and the Experience Cloud. You're going to hear a lot more about this today. Okay, let's get into it. Please join me in welcoming Shantanu up on the stage. Thank you.
Thanks. We normally do not get an applause at a financial analyst meeting, and I am absolutely fine with that. Thank you again. I really would like to welcome everybody who has joined us here at Summit and on the live stream. I hope you had an opportunity to actually see the keynote and the tremendous innovation that we are going to be delivering. If you have not, I do encourage you to see the replays. As Steve mentioned, the real focus for today is to actually continue to expand on what we previewed in the earnings, as well as talk about our customer-focused strategy in the era of AI. Before I start, one of the things I have actually been doing is talking to a number of you, both on the buy side and on the sell side, to understand what is top of mind.
As we planned for this meeting, what are the things that you really wanted to make sure that we focused on? Let me play back a lot of the reflections that I heard in conversations with a number of you. The first one is you really wanted to get a lot more visibility into how the creative business has evolved. We will spend a lot of time on the creative business, how that has expanded, the different customer groups that exist, what are the leading indicators by customer groups, how are we thinking about innovation, what is the role of AI. That is certainly an area that we hope to add a lot more about what our go-forward strategy is. The second one was all about AI monetization. Give us some more color on AI monetization. How are you monetizing it? What is the influenced AI revenue?
What's the direct AI revenue? How are you thinking about it? That's another area that you'll hear all of us touch on. Competition. A number of you did want us to make sure that we talked about competition, what's happening, whether it's with different customer groups, maybe the low end, as you've reflected upon that. Certainly, that's another area that we'll continue to touch on. I think a fourth theme that a number of you talked about was give us more visibility into what's happening in the enterprise. How do we think about the offset that might happen as enterprises are investing more in content? What's the relationship between what you're doing, selling creative in the enterprise, versus how that plays out as it relates to the adoption of technology? There were some questions around seats.
That is, I think, one of the other areas that we are talking about. The area where perhaps I got a little bit more mixed feedback from both the buy side and the sell side. Certainly, there were a number of you who were like, "Hey, can you give us a little bit more visibility and transparency?" We have tried to do that. There were a number of you who were like, "You're giving us way too much data." A number of the people are potentially losing sight of the forest from the trees. We are trying to balance all of that, but we will get into it. Certainly, we will talk a lot more about the questions as well.
I think what's really important for everybody to make sure that you take away is how we think really positively about what we're doing for the customer groups. The requirements for the customer groups, the products for the customer groups, the leading indicators for the customer groups, and how we're innovating in the customer groups is very different. You'll hear us touch a lot more about what that means, by customer group, what's the product, what's the leading indicator, how do we think about distribution. We think that's, frankly, a much better way for you to both unpack the creative business as well as think about what's happening between creativity and productivity and creativity and marketing. That's an area that we're going to spend a lot more time. We look forward to answering other questions that you have at the end of today's presentation.
Let me start off by saying, as I think about the opportunity that exists for Adobe ahead of us and the amount of innovation that we're doing, whether it's the addressable market, whether it's the brand that we have, whether it's the products that we're delivering, I could not be more excited about Adobe's future than I am today. As we think about getting started, let me reiterate the mission that we have for ourselves as a company. We continue to believe that changing the world through personalized digital experiences is more relevant and offers more opportunity than ever before. As a company, we're really focused on making sure that we unleash creativity across every facet of digital experiences with ideation, how people imagine and express these ideas, what's the creation and content that they're doing, and increasingly how they're orchestrating it.
A number of you have asked us to share more about how we see agents. Hopefully, you heard what Anil did and the introduction of what we are doing with the Agentic AI platform as part of the Adobe AI platform. I think making sure that we can deliver that personalization of content and orchestrate it across every channel and understand how it's actually being working is another key part of how we think about our mission going forward. We shared this slide as a preview during our earnings, but I think it's a really important way to take a step back and think about how creativity has both exploded and how it's evolved over the last decades. When you think about creativity, I think a number of us talk about what it means in terms of creative outputs. Where is all this creativity going?
Is it going in the design of a web application? Is it going in the design of a website? Is it going towards gaming, entertainment, and what the media is? What is happening as it relates to business communication? As we think about the evolution of creativity, it's really important for us to understand what customers are using this for in terms of what the creative output is intended to do, whether that's an industry that's being created or whether it's how that content will eventually be used and how it's effective. The other way in which creativity has certainly exploded is the number of different categories that have emerged. When I started at the company, most people used to talk about just print publishing.
As you think about how the web got added, mobile got added, new categories like AR and VR got added, product design, UI/UX, the reality is the creative categories have also exploded. We believe that we are still the only company across this entire spectrum of creative outputs and creative categories that has the most comprehensive technology platform, brand, as well as offering. It is certainly true that in some of these creative categories, Adobe does not play a role. We still think that's okay because unless the category is a category that we believe is big enough and one in which we win, we still want to make sure that the assets that people use in those creative categories can come into whatever creative output they want to do. That's one thing.
As you ask us about where we are, for example, in product design, we can talk to you about where we do play a significant role and where we do not. The other area where I think this has significantly evolved is in the customer groups, as we touched on again. When you think about the customer groups where this has emerged, there are three big categories of customer groups that we wanted to talk to you about. The first, and again, the absolute core of what Adobe focuses on, are the creative professionals and the next generation creators. It is those folks who want to use creativity for a living that represents the core of the customer base that we address.
The reality is that the innovation that we continue to deliver for that core creative and the next generation creators, which is a rapidly expanding market, Adobe is still the only company that provides a comprehensive offering, as I said, across web, mobile, and desktop. How we've infused AI in that has really been outstanding. That's the core creative professional and the next generation creators. Increasingly, a lot of this content that's being created is going into the marketing use case. You heard that today at Summit when we talk about GenStudio and how that's going.
The increased usage of content within the marketing community, within agencies, within enterprises is what we are also uniquely positioned to win in because we're the only company that both creates this content as well as addresses the lifecycle of that entire content with marketing professionals and marketing technology. It is the combination of creative pros and marketing. That's the reason why we're grouping that as one customer group and reflecting what our strategy is across both of those. The other key customer group that we want to talk about is what we do with business professionals and consumers. With business professionals and consumers, and I'll touch on this later, that is where these are billions of consumers all around the world. They have some form of business communication, some form of education communication, some form of individual creativity that they want to engage with.
In order to serve them, we have to address them with a different offering at a different price point. That is, again, the reason why when we think about these customer groups, we have separated them in terms of how we think about the go-forward. Each one of these opportunities, and David will touch on this, is an incredibly large opportunity, but they have different requirements, and we are investing in how we innovate for them in a different way. That is a big part of how we will talk about how we are seeing progress across each one of these opportunities. If you reflect then how Adobe has grown over the last decade, we have grown by serving a much broader set of customers. We have served them with really three clouds.
We've served them with the Creative Cloud, which has always been the go-to suite for products for creative professionals. We've expanded the usage of that also to business professionals, marketers, and consumers. Document Cloud actually started off with serving the needs of both creators, which is why Acrobat was within that particular cloud, but Knowledge Workers. That's also been used to serve the broader customer base for documents. DX started off with just marketers and over time expanded to serve everyone that's involved in creating, deploying, and managing digital experiences. The intent behind the next three slides is actually to show you the evolution. While it has resulted in substantial growth, we also want to reflect how we think we need to evolve it moving forward to make sure that we capitalize on the growth opportunity ahead of us.
The first way we have certainly grown is by defining category, defining clouds. The second way in which we have grown, if I can go back to the previous slide, actually, sorry, the previous slide, is the offerings, yes, is by expanding the product offerings. A big part of the success that Adobe has had is by making sure that these offerings have also expanded. When you think of Creative Cloud, the success that we have driven from Creative Cloud is through a variety of offerings. Individual apps. Individual apps tends to be an on-ramp for anybody who has a creative aspiration. CC all apps tends to be a way in which we serve the entire creative community.
New services and offerings, whether it's stock or Frame.io for collaboration, more recently Firefly, is ways in which we are increasing the kinds of products that we deliver for the Creative Cloud. The same thing plays out in both Document Cloud as well as Experience Cloud. In Document Cloud, we started off certainly with Reader, a freemium model that enabled anybody to view PDFs and then started to monetize that through various Acrobat offerings. We did the same thing recently with Acrobat AI Assistant. On Experience Cloud, we started off first with the combination of web content manager and analytics, where it was content space, but then we expanded into the data space with what we did with the Adobe Experience Platform and then into the journey space with products like Adobe Journey Optimizer. We are bringing all of these together with GenStudio.
That was through the product offerings. Then we expanded our business significantly by routes to market. If you think about the routes to market that Adobe has today, we believe that is a tremendous asset. Through adobe.com and app stores, we have served billions of users. Through the Creative Cloud, we have also been selling through inside sales as well as resellers. That is a significant portion of our business as well. Finally, enterprise sales and SIs, which is a more recent evolution of the business, we have built an absolutely world-class enterprise sales group as well as a partner ecosystem that enables us to go to market and serve these customers well.
It has really been a combination of grouping the products within a cloud, by expanding each of the offerings within the cloud, by expanding the routes to market that we have grown this business the way we have over the last few years. In fact, we take pride in the fact that Adobe has completely shaped the creative landscape as we know it today. As we think about how this is going to change in the era of AI, and this was again a slide that we provided in the preview of our earnings, we wanted to make sure you appreciate how we believe each of these categories is going to change and how we win across each one of them.
When you think about business professionals and consumers, the reality is that they want ease of use across web and mobile, and they want to start to experience all these products through a freemium model. They're all looking for quick and easy AI-first category-defining creative applications to help them stand out. I think this market exploded through the use of what were called templates at that time, but we believe that that will be completely disrupted again, and it'll move to being an AI-first application where you can have a conversational interface in order to have the kind of creative expression that you want. Secondly, we believe that this will merge with productivity. There will be no communication that goes out where you're not going to combine creativity and productivity.
We really believe that Adobe is best positioned in this market with the combination of what we have with Express and what we have with Acrobat in order to serve that business professional and consumers. Again, as I said, I think there are billions of people in that particular category. When you think about creative pros and what creative pros need, first and foremost, they need power and precision. They need to be able to take anything that's an imagination in their mind and create the exact output that meets that concept that they have. They want the flexibility and power of being able to do this on mobile devices. They want the power and flexibility of doing this on the web, but they want eventually the power and precision that they expect because they are doing this for a living.
We think we're uniquely positioned to meet that market and win in that market first as a result of our flagship desktop applications. We have, without a doubt, the best applications in this particular category. By introducing web and mobile offerings, and David will touch on this again, we want to make sure that we take the power of our desktop applications and put them in the palm of their hand. By introducing new Firefly subscriptions and services, we're also entering the entire new category of ideation and making sure that support for multiple models, whether that's multiple models that third parties are creating or whether they're custom models, it's the combination of the flagship applications on the desktop, web and mobile offerings, Adobe's own Firefly offering, as well as support for third-party models that makes this a category that Adobe is uniquely positioned to win.
When you think about marketing professionals and what they want to do, the reality is they just want to create an unprecedented volume of content. The amount of content that they are creating and the speed at which they need to create it and automate it is just dramatically exploding. You heard a lot about that this morning. Marketers are looking for agility. They're looking for self-service. They're looking for the ability to actually create these campaigns, to ideate on the campaigns. They want the workflow between marketers, IT professionals, agencies to be seamless. The reason we think Adobe is uniquely positioned is that GenStudio is the only product that can bring together creation and production, workflow, asset management, activation and delivery, as well as analytics and insight.
If, as we believe, the entire battle will be fought on not just the content creation and the automation, but the delivery of that content and the understanding of the analytics, that is what we believe will further accelerate with AI and what, again, we're uniquely positioned to do. As it relates to how this accelerates, we really need to make sure which channel is most appropriate for addressing the needs of each of these markets. Again, with business professionals and consumers, a significant portion of that will be through app stores. It'll be through a freemium business model. A significant portion of that also goes into the enterprise. For creative professionals and creators, this is flagship applications. It's applications on the web, and it's a new Firefly set of subscriptions. The marketing professionals is all through the enterprise.
That's hopefully a little bit more insight into how we think about how AI accelerates the opportunity. Here, again, this is a real focus on how we will go to market with these customers in mind. As we think about the next decade of growth, we will focus our products, our offerings to address the needs of these three massive customer audiences and helping them succeed. What I wanted to do was just, in a single statement or a sentence, tell you what exactly our vision is across each one of these three segments. If you look at the business professionals and consumers, the real goal for Adobe is to make sure we have AI-powered, quick and easy apps that help people to stand out through productivity and creativity.
For creative professionals and creators, it's power and precision to bring any one of their creative vision to life across any media type, across any surface. For marketing professionals, the whole idea is to deliver what we call customer experience orchestration to create, deliver, and optimize these personalized digital experiences. With that backdrop, if you look at what Adobe's business is today and our routes to market, let's share some facts. As all of you know, we have approximately $20 billion right now in subscription revenue. This just represents the subscription revenue for the company. Some of these other statistics, we have approximately 750 million people who are our digital media monthly average users. I know we've shared in the past that we have approximately 650 million on Acrobat. If you think about the 100 million, the 100 million are people who use our creative products.
Now, these do not include, in many cases, what is actually being used both within the enterprise because those tend to be named user deployments as well as in education. There is some overlap between those. When you think about what's happening in web and mobile as an early indicator, over 50% of the MAU is now web and mobile as a percentage. We are clearly meeting the customers where they need to be. We have approximately 22,000 customers. This is, again, across the DME business and the DX business as we report it today. One really exciting thing for us is that we are seeing over 100% year-over-year growth of joint creative and marketing deals. The one Adobe story to deal with the entire content lifecycle is certainly being successful for us.
What the two circles show is both by our route to market, how much of that is going digital and channel versus the enterprise, and how much of it is going in the additional disclosure that we provided on creative and marketing professionals and business professionals and consumers. For those of you who have protractors and other devices, these are to scale, I'm pretty sure. Let me switch gears a little bit and talk about our AI strategy because, as I said upfront, that's a big question that a lot of people want to know how we intend to differentiate ourselves. We've always believed that Adobe's AI strategy is really differentiated because we operate across all these four layers of the stack. On the data, we were the only company that licensed data that was used in all the creation of our models.
For Firefly, it continues to be a significant differentiation for us that not only can we, since these were designed to be commercially safe, indemnify our users, but we can also create custom models where we can ingest every customer's data and create a custom model for themselves. On the data, I think we did a really good job of harnessing these data assets and unlocking first-party data. On the models, it was absolutely critical for Adobe to make sure that we invested in creating these own models because we believe that controllability of the models at the end of the day is the only way in which you can deliver industry-leading applications. David will touch on that. We've released the new video model. We have image model, vector model, voice model.
We're certainly working on another significant other set, as well as in the PDF area because we have our PDF models that were used for what we did with Liquid Mode so that you can have independent resolution on mobile devices. We'll touch more on models. Agents, agents orchestration. As we think about agents and as we think about what agents need to do, at the end of the day, they need to come together to achieve a business outcome. We've already started to deliver some of these agents, and the agents can be used to talk to other agents or, in fact, on the marketing side, also work with users to accomplish whatever the business task is.
At the end of the day, the way we monetize all of this is by deeply integrating all of this stack into existing products and solutions, as well as launching new apps and services. Let's talk a little bit about the entire AI platform and how we think about it. At the core, we have our Firefly models for creative. We have PDF models for everything that we're doing with PDF. We've also created a number of customer experience models that Anil can touch on. All of these are tied together with third-party models, if you want, through a common API that our products use. In addition to that, we are now creating the set of creative document and experience customer experience agents so that we can actually deliver that functionality. We will also partner.
We will partner strategically with third-party models, whether it's Amazon, Google, which is Veo and Imagen, Microsoft, Runway, Black Forest, and put them within our applications. We will monetize that by actually charging the customer for the usage of that within our applications and interfaces. Hopefully, you get a perspective of how we're doing all of our AI across the stack. With respect to monetization, I wanted to share with you. At the earnings call, we talked about what our new AI-first products were, and people asked for some additional disclosures. The new AI products only refer to products that were created in the last couple of years. As you could see, that was a $0 billion business at the start of fiscal 2024.
When you think about Acrobat AI Assistant, Firefly app, Firefly Services, and GenStudio, that is the number that we provided that we believe will be greater than 250 million, and it was 125 million. We are off to a great start. These are brand new AI products. What we also wanted to share with you is how we believe we are not only infusing innovation into our existing portfolio, but we are monetizing it better than we believe most companies. What we wanted to do was talk a little bit about the AI-influenced ARR as well. Let me touch on four areas. You will see later, I think, in Dan's deck, where he talks about the number of subscribers that we have. For those of you who will measure it, that will be a little north of 45 million.
As I said, that does not include education and named accounts. The way we think about influence revenue is in four different ways. First, for DX, when you sell higher price tiers, that is what we consider influence revenue. That DX book of business that is actually in the upper tiers is in the $3.5 billion number. When we think about Acrobat and the people who are buying Acrobat AI Assistant and therefore are also using Acrobat as part of either a Creative Cloud or a Document Cloud offering, we attribute AI also in helping grow that particular revenue. A third one is we look and measure what is the change in attrition and retention for people who are using our products. Therefore, how is the usage of AI within our products actually driving more usage and therefore less churn?
The fourth way in which we think about what's happening with the existing portfolio is we do have higher price premium offerings. As you know, we have put generations in some higher-priced offerings. We look at the higher-priced offerings and we attribute what part of that can be applicable to AI. It is the combination of those that is actually greater than $3.5 billion, as we said, ending ARR exiting fiscal 2024. The other piece of good news for us, as we look at the trends in this particular business, is that's actually growing faster than our business. We clearly expect and imagine that we're going to be infusing AI in all of us.
If you ask me how you think this business evolves over time, I would say every dollar of revenue, we want that to be a dollar of revenue that has an AI implication on it because that's the way we do it. I know since there were a lot of questions about how we thought about AI monetization, we just wanted to at least share on the left side what we are doing as it relates to the higher premium offerings, whether that's in DX or in Creative Cloud, whether it's the impact on usage and therefore the impact on churn, what's happening as it relates to attribution or when people are buying both Acrobat as well as one of these standalone products like Acrobat AI Assistant. Hopefully, that gives you some additional disclosure on how we think about how we are monetizing AI. Okay.
If I were to summarize all of this, when I think about our strategy, business professionals and consumers, creative professionals and next-generation creators, and marketing professionals are clearly the customer groups that we're focused on. For business professionals and consumers, delivering those AI-powered easy apps through a freemium model, leveraging the monthly average users that we have as a combination of Acrobat and Express is clearly the way we believe Adobe will win. On the creative professionals and creators, it's all about power, precision, Firefly, ensuring that we have the best models, ensuring that we support the third-party models. It's a growing category. We're clearly the leader in this space, and we want to just continue to expand on our leadership. With marketing, combining what we can do with creative content and marketing professionals, we're the only company that actually ties together the entire content lifecycle.
We believe GenStudio, again, is an extremely separated and differentiated product for us to be able to do that. How we win then? Product innovation, we have to continue to drive and lead categories in creativity, productivity, and marketing. We have the scale differentiated route to market, whether it is for SMBs, whether it is Adobe.com and direct, whether it is for the enterprises. I continue to believe that in the creative community globally, we have this exceptional brand as well as a global reach. I am extremely confident of Adobe's continued execution against this strategy. I am extremely confident that we will drive creativity and productivity, that we will continue to innovate against the creative core customer base that has been the center of what Adobe has focused on for decades.
We will continue to expand it in the marketing use case for enterprises, which again represents a massive opportunity for us. I believe Adobe's best days are ahead of us. We continue to have aspirations to make sure that we grow the company double digits, and we continue to grow EPS greater than that. With that, David and Anil will go into greater detail on each of the three audiences. Dan will come back to talk about financials, and I'll come back to take questions. David?
All right. Okay. As Shantanu talked about, creativity has been going through an evolution over the last many years. It used to be the domain of a limited set of creative professionals that controlled and created the world's best content.
Today, it's really more of the foundation of how we all communicate, whether you're a business professional creating visual presentations, whether you're a creative pro doing everything you can to keep up with a bunch of the post-production demand that's on your plate, whether you're a marketer trying to engage with people on social with social posts. This has led to a lot of evolution of the landscape. Obviously, it's increased the opportunity and the opportunity set, but it's also brought in a lot of new entrants into the ecosystem. Most of them serve niche opportunities. Some of them, like Canva, are reaching a much broader base of businesses, business professionals, and consumers than most prior entrants had done it. Now, at the same time, the opportunity here is to reach billions of users, not hundreds of millions of users.
We believe that Adobe is obviously uniquely set up to do that because of the benefits of what we have in our total landscape and the opportunities we have to bring products and capabilities together in new ways to really service the needs of these individual audiences. That is really what Shantanu teed up and how we've been sort of talking about these new audience groups. To maximize the opportunity here, we also needed to evolve how we think about our products and how we deliver the products. We've been stretching the lineup, and this is something I've talked to many of you about over the last couple of years, but we've been stretching the lineup to really reach a broader opportunity than we've ever had before. We've done that for existing Creative Cloud and Document Cloud apps by focusing on adding more value.
The Creative Cloud apps now have Firefly integrated into the applications. We talked about the fact that we've now seen over 20 billion generations from these. We also have a new standalone Firefly application that's available, and that is starting to really drive more and more usage of those generative credits that we announced a year and a half ago. In fact, in the last year, we've seen generative credit consumption go up by 2.5x already. This creates a lot of headroom for us with this core base of customers that we've always serviced with more opportunities for tiering for things like Creative Cloud with Firefly and Document Cloud with AI Assistant. Lots of opportunities to continue to serve and grow that core base and increase tiering and opportunity for ARPU with our existing customer base.
We have always also been focused on attracting more new users into the franchise. We have been doing that by accelerating what we are doing with web and mobile. In particular, we are excited about the resonance of what we are doing. We have seen mobile traffic in the last year grow over 60% to Adobe.com, as an example. We are delivering and reaching those audiences by delivering a new set and family of web and mobile applications. Things like Acrobat Web and Mobile, Lightroom on Web and Mobile, Express on Web and Mobile. Last month, we introduced Photoshop on Web and Mobile and Firefly on Web and Mobile. We are very excited about this lineup and family that we have to meet the demand of this next generation of creative professionals and business users.
As Shantanu mentioned, that's translating to really strong MAU for us, with web and mobile now making up more than 50% of the total monthly active users that we have. While we're seeing this incredible growth, we're also starting to see great usage, and we're at the early stages of converting that usage and free usage into conversion and monetization. As you continue down that path, the other thing we talked about was that we wanted to stretch this lineup behind the traditional way you look at the digital media business with P times Q. We knew that enterprises, and especially with all the work that we have done in Anil's organization going into these enterprises, we knew that enterprises have been facing an incredible need to drive more automation into their ecosystem, especially when it comes to content creation.
New solutions like Firefly Services and custom models are off to a great start. They were joined by GenStudio for performance marketing in October of last year. We've now, with our customers, trained over 1,400 custom models. It gives you a sense of the fact that customers are using Firefly Services with their own proprietary data sets. If you take a look at Firefly Services deals that we've done under $1 million, what we refer to as the run rate, the deals that we land and that we can expand, on average, those are landing at about $250,000, which is a good indicator that we are definitely past the P times Q and really more focused on how much value and how much content you are trying to generate with expand opportunities as people use and generate more content.
Beyond those numbers, it's also important to note that we do have transformational deals where a number of customers have gotten into Firefly Services in a very large way, and we're doing transformational deals of multiple millions of dollars with these. It gives you a sense of the run rate business, and it gives you a sense that these deals and these businesses can all scale to millions and millions of dollars per account. We are very excited about how we've evolved that lineup and how we've created the opportunity to map the lineup, the products, the pricing, and the packaging to those new customer groups that Shantanu talked about. All of this is possible because at the end of the day, underlying everything we're doing is a creative platform built inside this AI platform from Adobe that Shantanu was talking about.
This core platform and these capabilities of creativity that's embedded in them are all relevant as it comes to the business professionals and consumers, as it relates to creative professionals and creators, as it relates to marketing professionals. I want to walk you through in a little bit more detail what the creative AI platform is inside that broader AI platform for Adobe. At the foundation, and I think we've talked about this, but this is important for people to understand that the foundation, it's the data, how it's sourced. Everything we do, we have full access rights to. Everything we do is commercially safe.
I will tell you, this makes a huge difference, huge difference when we're talking to enterprise customers because they know that they can safely use it not just for ideation purposes, but they can use everything created in these ecosystems directly in production. The second thing on top of that we've been doing has been very busy with first-party models. We've built models for imaging, vector, design, video, voice, sound effects, 3D. These are all coming out. Translation models, these are all in market or about to be in market very soon. They're also the foundation of how all of our core capabilities show up in our creative applications, our DX applications, and our Document Cloud applications. In addition to that, one of the things we also want to do is we want to bring third-party models into the ecosystem.
Today, we just announced that we are working with, and we've officially signed agreements with Google for their video and imaging models, Flux, Runway, and Fall AI. There is a whole host of more that we're going to be bringing in. No matter what model you're looking for, you should come and do it as part of Adobe because you get all of these models in addition to getting the Adobe models that are commercially safe and that are toolable and that are sort of integrated in addition to all of the tooling on top of it. There is really no reason to go anywhere but Adobe and sort of create this opportunity for people to come and use and leverage all of this creative innovation happening in the entire market through an Adobe platform. On top of that, we've enabled custom model development.
I mentioned already 1,400 custom models have been trained. On top of that, we're really focused on creative controls, things like being able to identify the style, the structure, the scene composition, the prompt coherence of what you type in is what you should get out. That foundation of layer sits on top of everything here. More and more, and you'll see more of this today, we're investing in agentic capabilities. In the context of creativity, that means understanding layout, that means understanding style, that means understanding motion and composition, and then, of course, wrapping those agents with orchestrators so that you can do recommendations across these, or you can do actions to change an image or change a video across all of these.
am very excited about the foundation that is being built here and how that then relates into everything I am going to talk about when it comes to business professionals and consumers, creative professionals and creators. Also, all of this capability goes into everything Anil is going to talk about later today around marketers as well. All right. Let's start with business professionals and consumers. There are billions of them. That is a good thing. We are very excited that we have the opportunity to reach so many of them. As I have talked about, there are sales reps making presentations, there are teachers creating lessons, there are students doing homework, and they are all turning to PDF as a standard for how they interchange these document formats. They need a faster way to keep up with all the content that is coming to them and at them.
They all recognize that communication is becoming increasingly visual at the same time. It is not just about being able to consume these documents, but it is also about being able to create documents more quickly and create them in a visual way that actually stands out. Instead of me talking about what these folks do, we had our studio team go out and talk to folks about both the consumption needs that they have and the creation needs and recognize that they are all the same individuals in business professionals and consumers, but they need both. Let's take a listen.
Every moment that I am not actively productive, I am losing money. Wherever we can save minutes allows us to do the things that we are supposed to be doing. With all the information that is being thrown at us nowadays, I know that the gold is in there.
Being able to use tools to summarize or help me comprehend the real gold in those documents really saves my time. Creating a custom user guide for a client that's pared down used to take a week. Now we can have AI tell us what we need to be focusing on within a few minutes. Having something like AI Assistant where I can hit one button and it will break down complex legalese for me into a really short summary is a complete game changer. We use PDF documents a lot, and I can ask directly to generate a lesson based on that worksheet or based on that material that I'm going to be teaching to my students. There is a huge competition when it comes to content creation, and that's where oftentimes branding comes into play. It doesn't matter who on our team is creating something.
They can import all of our brand elements seamlessly in a single click. You might be creating your document in Acrobat, being able to access some of the tools from Express, make everything that you produce look polished, professional, and consistent. Content is around us in every aspect of our business. I want something that's going to look visually compelling and resonates with our customers. You have a starting point. You're not just looking at a blank screen, which can immobilize people when it comes to the creative process. It really does come down to making sure the materials that I'm giving my students to learn with are engaging. What I absolutely love about these tools is that they are all accessible on mobile. I can show my clients, get approval right then and there, or even play off an idea.
Someone sending you any kind of contract, being able to get that on your phone and e-sign it is awesome. Students are not just using AI as the answer. They are using AI to heighten their answer and to ultimately dive into the project with a much more creative lens. The idea of being able to mix two platforms like Acrobat and Express is really cool because AI tools in Acrobat make me a better business person. The AI tools that exist in Express make me a better designer and an artist. I think it just continues to unlock more potential out of us.
A lot of what they talked about in the video really breaks down into two core elements: faster time to insights with conversational consumption and fast and easy ways to create visual content.
Adobe is incredibly well positioned to go after this on the conversational consumption side, given that we already have 650 million monthly active users, over 3 trillion PDFs worldwide, and we have 400 billion PDFs open in Acrobat every given year. That is why we are so excited about Acrobat AI Assistant. Our early success here has been great to see. We have conversational experiences. We are seeing real growth in the usage, and we are getting a lot of growth in volume and sort of virality as a result of all this. Here is the thing: there is an enormous amount of visual documents that are opened each year in Acrobat too.
There are tens of billions of moments where people in any given year open a document like marketing content or like a sales pitch or like a presentation or infographics or cover pages, and they're looking to actually participate and edit those kinds of documents and those capabilities. That's really what's given us this strong level of interest, integrating Express more deeply into Acrobat and Acrobat AI Assistant workflows to meet the demands of the visual content that that group is looking for.
With that as the backdrop, our strategy for business professionals and consumers is to continue the proliferation of Acrobat across desktop, web, mobile, and voice, double down on the strong start we've already seen with Acrobat AI Assistant and the conversational experiences, establish Express as the de facto standard for visual communication, and deeply integrate Acrobat and Express to create an end-to-end solution for business professionals and consumers all the way from consumption all the way through creation. That foundation really brings all the strengths of Adobe into one core motion to go and reach that audience. Let's walk through each of these really quickly. Let's start with Acrobat proliferation. Again, we talk about the 650 million monthly active users that we have. The great thing here is it continues to grow. This is about a 23% increase year over year in terms of MAU.
The strongest growth is coming from web and mobile. We start to see, again, this next generation of professionals and consumers using these capabilities. You'll see us continue to invest very heavily in Acrobat partnerships like Microsoft Edge and Google with Chrome, Gmail, G Drive, and a whole host of product partnerships because we believe that foundation of proliferation is key. You'll also start to see us atomize AI Assistant into third-party ecosystems because third-party ecosystems are flush with PDFs and an opportunity for them to integrate generative AI capabilities and conversational experiences directly into those applications. We continue to really broaden this portfolio as we go forward. Now, speaking of AI Assistant, it's been a game changer. We've talked about exactly how it's doing, but let's give a little bit more color here. It lets people have conversations with multiple documents.
Where we've really shined is around the accuracy of our answers, the verifiability or the citations of those answers. That has made the effectiveness of AI Assistant highly differentiated from everything else out there. Users are getting insights and completing tasks four times faster than they would when they were not using AI Assistant. With that as a backdrop and the momentum we are starting to see there with the growth in terms of year over year usage and quarter over quarter usage, we are excited to take the next step forward to start to introduce agentic and collaborative capabilities. Let's take a look at how this is going to make itself into Acrobat and AI Assistant in the months ahead.
Workspaces in Acrobat lets you glean insights from multiple files, collaborate with clients and stakeholders, and deploy a custom agent for your customers to interact with.
To create a new workspace, simply add your content: industry reports, presentations, docs, transcripts, web links. You can add them all to your new workspace. Next, AI Assistant draws deeper and faster insights from your files and presents them in a new workspace with key themes, tables, and actions. You can deploy a custom agent and assign it a personality like a tutor, research assistant, or editor, or you can customize it. In this case, we'll ask it to serve as your research assistant. You can ask it to suggest growth opportunities as you prepare for a client meeting. The customized agent provides recommendations along with clickable citations, and it uses reasoning to suggest areas of further investigation. Once it has provided you with the information you need, you have the option of editing and sharing the notes it generates.
For enhanced collaboration, the entire workspace can be shared by customizing the agent, delivering a personalized experience to members of your team. Your collaborators can now easily engage and ask questions to AI Assistant, enabling everyone to achieve your goals together and to work faster. With workspaces, Acrobat is now an AI-powered productivity solution that helps you turn insights into action and collaborate easily.
This is one of those legacy moments we'll talk more about for Acrobat as it goes through yet another evolution with these conversational experiences. When it comes to AI-powered visual creation, we're really excited about the momentum that we're seeing with Express. We mentioned and we've talked a little bit about the great momentum that we're seeing with businesses. We saw year-over-year acceleration with businesses of all sizes.
In fact, we onboarded almost 6,000 businesses last quarter, which we are very excited about because that continues to accelerate and we see more people come on board. It is really a foundation of that global go-to-market that we have, deep integration across Acrobat and the CC applications and GenStudio that really stands out. We even have a lot of enterprises now doubling down on their content supply chain with Express as well. We talked this morning about how Red Hat was able to, using Express as part of their content supply chain, actually double the number of campaigns that they were launching at any given time. It has been great to see the business success.
We're also seeing success at the younger portion of the market in K-12 and higher education, where we now have 85% growth with students who have access to Express going forward. This is just as we're starting to ramp all of the broad-based marketing and awareness campaigns around Express that you know Adobe does incredibly well. This has led to over a billion projects created to date in Express. We're excited about the agentic workflows that we're also going to be adding here that takes our customers beyond what we think of as the last era of creativity with templates and into a new AI-forward era of creativity going forward for the masses. Let's take a look at what we're doing with agents in Express.
Express is your AI-first content creation app, enabling billions of users to create content that stands out.
With new generative workflows and streamlined editors, you can generate images, videos, designs, presentations, virtual avatars, and more. You're not confined to static templates. With the power of a multimodal AI Assistant, just type or say what you want and boost your creative superpowers in seconds. Powerful photo editing features are built directly into Express. Auto-enhance your photo to get the lighting perfect, instantly remove distractions, easily resize and reframe. You can apply filters and make enhancements in seconds powered by Photoshop. With generative AI selection, Express automatically detects and selects objects instantly. You can resize, refine, and stylize with no manual work needed. It's also easy to apply animation in Express. You can add playful physics-based motion and instantly transform static graphics into dynamic content to engage your audience. You can also create an entire video starting from a script or story.
When you paste in your script, Express automatically generates scenes, places assets, and builds out a complete video timeline. With AI Assistant, you can enter a prompt and have custom designs built for you instead of limiting yourself to static templates. You have the option of resizing your design into multiple formats in seconds. By entering in another prompt, video and motion agents quickly turn the hero image into a dynamic video complete with animations. Your content is ready to share to all of your channels.
You see there is a lot of Adobe history in that AI platform that we were talking about that we can leverage and bring directly into these interfaces through agentic experiences that every business professional and every consumer can use.
One of the things that we're most excited about is that the biggest opportunity here is when you take this incredible innovation that's in Express, the incredible innovation with AI in Acrobat, and you bring them together. It's clear that users are telling us that they want to use these applications together all the way from consumption to creation. We've been enabling that over the last year in two ways. One is by embedding Express in Acrobat, and two is by increasing the number of workflows that you can go from Acrobat directly into Express. As you can see from the stat, this is really starting to play out because this is what the audience wants. We've seen a 10x growth year over year in terms of Express MAU coming from Acrobat.
This is an area we're going to be really hitting hard in the course of this year. Let's see how all this comes together, and you'll start to see how natural these two products are when you bring them together. Let's watch this video.
You can use Acrobat and Express together to glean insights and turn them into visual experiences. Enhance the design of your PDFs directly in Acrobat, powered by Express. Add a cover page, edit images, generate charts or graphs, and stylize your entire document easily. You can create a workspace by adding your content and asking AI Assistant to craft an outline and use Express to bring it to life as a presentation. You're able to choose a style. Acrobat and Express generate a first draft. Next, you can easily edit images, change the background, update charts, and adjust layouts.
You have the option of using an avatar to transform your presentation into a dynamic experience tailored with a unique voiceover. Once you're through editing, you can share your new presentation with your client. The avatar narrates the presentation for them. Together, Express and Acrobat empower you to glean actionable insights and create compelling visual experiences in minutes.
What is particularly interesting about that convergence is that, again, can you imagine a business professional or a student or a consumer that wouldn't benefit from that end-to-end workflow? In many ways, this is really the journey we've been on for decades, right? Because we started PDF and Acrobat focused on document exchange. Then we evolved it to add editing and sharing and commenting. Eventually, we started enabling it across web, mobile, and desktop.
In many ways, that's what's led to the trillions of PDFs that have been created and why Acrobat has become the de facto standard for consumption. The next chapter is incredibly clear in all our minds. It's really the convergence of Acrobat and Express that will provide users with an end-to-end solution all the way from consumption to visual creation because, as we started the conversation with, visual creation is a foundation of how we all engage today. That's really what Acrobat is. It's a proliferation platform for bringing people more productivity and converging in this context, creativity and productivity. In short, we're confident with our strategy around business professionals and consumers. We're going to do this by driving consumption in Acrobat and building on the momentum we already see in AI Assistant.
We're going to introduce workspaces and more customizable agents and collaboration to continue to drive and proliferate the usage of AI Assistant. We're going to drive visual creation in Express and move beyond templates with AI generations and designs. We're going to give users what they're asking for, which is a combined experience to do everything they need in one platform from consumption all the way to creation. We're confident also in terms of how we monetize this and the billions of users that are going to be using this because more users are coming through the freemium funnels that we have with Acrobat, Acrobat AI Assistant, and Express. We're going to provide more value through tiered offerings that bring in these capabilities to professionals that need more of these capabilities and expand ARPU.
In the enterprise, we're going to be doing much more solutions for collaborative workspaces that can really be used to solve communication issues and opportunities within enterprises. Very excited about where we're going with business professionals and consumers. Let me turn for a minute and talk about creative professionals and creators before I hand it off to Anil. This audience, as you know, has been a cornerstone for us, and it's really been part of our mission at Adobe around creativity for all for decades. It includes graphic designers and photographers and videographers, social media influencers, gig workers, and anyone who wants to create pixel-perfect output to advance their company's needs or their personal needs. They all understand that content is fueling the global economy. Creative professionals are hoping that AI can help them keep up with the demand that's coming in.
Next-generation creators are hoping AI can help them stand out. Creative professionals and marketing pros are hoping that they can automate parts of their production processes in a way that they can actually scale and achieve that idea and that aspiration of personalization at scale. Let's hear directly from them in terms of the things that are on their mind.
There is an increasing amount of pressure put on creatives to produce more and more kinds of content, different aspect ratios, different lengths, different types of media. There is a really big need for tools that really support all of those different asks. There is such a huge demand for speed nowadays with creatives and just churning out work. I would not be able to create and produce as confidently, as elevated as I do without Adobe's products. I use AI to help brainstorm and generate ideas.
I find it super helpful for illustrating and starting from scratch. Of course, you do not know how to draw a bear in a camping chair, and you cannot find references for that online. I used Text to Vector to generate some bears. I, of course, turned it into my own style, added my own textures and color. Being able to use generative fill to remove distractions, it saves me a ton of time, and it just leaves a lot of room to be creative. I think when it comes to AI, it is like as much as everything else that I use in my day-to-day life, I would compare it to if I was using a calculator. You need to know what you need from it to achieve your final goal. It is really critical to have AI baked in and native with the tool.
It requires a lot of specificity and a lot of control, and we're able to get there with these tools. I love when it generates crazy, funky things, and you get these amazing surprises, and it just makes your work more unique and fun. Having access to the tools on my mobile device encourages you to create more quickly, but without sacrificing quality. To flesh out your ideas on your phone in a moment's notice and then to be able to work on that later on desktop is just super convenient. I don't have to wait until I get home to edit a bunch of images. I can actually already make some color corrections, retouch images while I'm on the flight or while I'm waiting for a train. It's obviously amazing to have an all-in-one platform.
Being able to use commercially safe AI and have complete control over it, building out layers within that photo gives me confidence in knowing that I can use this AI, whether it's for clients or going out into the world. Because I know that there is a quick solution, I'm so much more likely to use the tools and up-level the images. It almost makes me believe like I can do more, which you kind of need, you know?
We have so much opportunity. This has been our bread and butter. We have so much opportunity to really help this group in particular, including bringing all of those AI platform capabilities that we talked about directly into their tools. This is going to let us drive obviously deeper and richer integration of GenAI into our core CC applications.
It's going to let us build the most complete AI-first creative creativity solutions with Firefly application. It's going to let us attract new creators with freemium web and mobile applications. It's going to enable us to develop creative production capabilities like Firefly Services and GenStudio that really power the foundation of content and creativity within enterprise environments as well. That is our core of what we're trying to do. Now, we're going to do this. We will start by building the most complete set of creative models with Firefly. We talked about that already. They're going to be toolable. In fact, they already are toolable. They're commercially safe. They're highly customizable. We have our core models: imaging, video, voice, vector, sound effects, and 3D.
As I mentioned today, we also announced these partnerships with third-party models that are going to increasingly make their way into all of our capabilities in our platform. We are very excited about this. Shantanu mentioned that, but I do want to make sure I land the point that as we onboard third-party models, those models will effectively get monetized by getting on our rate card. The cost of using a third-party model will be transparent to our users. The more they use Adobe models, the more they use third-party models, the more they mix all of these things. It just starts driving that flywheel of generative credit demand that we have been talking about for a couple of years. We are very excited about where that could lead us. Of course, all of this innovation ultimately makes it into our CC applications.
We talked about the fact that we have over 20 billion images generated to date. We have, and this is an interesting thing to see, is how impactful generative AI is. 75% of Photoshop MAU have used Firefly. You start to see how broad-based AI has become in the creative community as well. We've seen a 2.5x increase year over year when it comes to generative credits consumed. Now, as we start to add more, we've already seen this with the introduction of video models and voice models and third-party models. We should start to see this flywheel of generative credit consumption continuing to move more and more quickly. All of this ultimately contributes to higher retention of our existing base.
We see people who use AI staying in our products longer and also provides an opportunity to increase ARPU with new tiers and premium offers. We're just getting started. If you look at the last couple of years and you look at the innovation that we have as we've integrated in the tool, it's still accelerating in many ways. The next frontier for us, in addition to continuing to drive what we're doing with AI and Firefly in the applications, is really starting to embed more agentic capabilities in our CC applications as well. Let's take a look at what's shipping again in the next few months.
Now, with powerful agents built directly into Photoshop, professionals can stay focused on what matters most. Photoshop agents and new imaging technology learn your specific style to help guide you to pro edits faster.
The style agent gives professional-level aesthetic feedback based on criteria of your choosing. Agents recommend variations to support your creative goals, whether the goal is a bold look or a calming feel. An agent summarizes the color qualities of your image, and you can easily browse and choose thematic variations. In this case, the agent recommends boosting blues and adding subtle background blur to enhance the castle's grandeur. Advancements in AI have enabled Adobe's interfaces to update in real time, guiding the creative process, suggesting the next best action, and allowing users to fine-tune the results. Photoshop's actions agent analyzes the content and qualities of the image, providing smart and contextual recommendations. Agents provide previews of potential edits right on your canvas. You can also apply complex edits with just a single click. Photoshop offers thousands of options that instantly open new avenues of creativity.
Agents' supercharged actions put you in the driver's seat to create powerful semantic edits that are totally unique to you and your workflow. With new generative AI editing tools, you can save hours or even days of work. Tell Photoshop the action you'd like to take and watch it happen. We're also building new AI tools into Premiere Pro for precise editing. With the first-of-its-kind generative extend tool powered by Adobe Firefly, you can seamlessly add new generated 4K frames for perfectly timed edits. You can hold on an emotional character reaction, extend sound effects, and cover transitions. With AI-powered media intelligence, Premiere Pro automatically recognizes the visual content of your clips in seconds. For instance, with descriptive natural language, you can quickly search visuals to find all the wide shots of a red canoe in the water at sunset.
Whether you're working in Photoshop, Premiere, or another Creative Cloud app, you have more power and precision than ever before.
The other thing these agentic capabilities do is remember they're all built on that core Adobe AI platform. It means we can not only surface them in our core creative tools, but we can also surface them in Express and Acrobat. We can also surface them directly in GenStudio. There is a lot of power that's being unlocked through all of this. Now, while we talk a lot about the generative capabilities in our CC applications, I do want to remind folks that there are a lot of non-generative AI capabilities that creative professionals also need. What you see on the slide are the things we've shipped over the last year. Red represents generative AI. Everything else is not generative AI.
As we think about generative AI, let's just remember there's a foundation of skill and capability that we have at the company that is continuing to chug along and really create highly differentiated opportunities for all of these folks in the creative professional space as well. In addition to integrating all of this work into our CC applications, GenAI also represents an opportunity for ideation and early production. We recently launched the Firefly app with an incredibly comprehensive set of generative capabilities from images to videos to vectors to voice. The reaction has been incredibly positive with high engagement on the video model and active use in the community. We've seen a lot of activity and excitement, and we have so much more coming in the next few months. We have Adobe Max London planned for next month.
Definitely check that out, where you'll start to see more and more capabilities. What I wanted to show and highlight here is it's very easy for all of you to look at and say, "Look, I've got a model for imaging. I've got a model for video. I've got a model for design." The power of this stuff really is when you have all of those in one platform where you can actually orchestrate across all of these. Now pay attention to this next clip, which is the capabilities we're working on. Again, in the next few months, you will see all of this come to market. The core aspect here is, as we're embracing these capabilities, look at how you can use these models together to go from one image to a video and from a video to design. Take a look.
Adobe Firefly is the most comprehensive generative AI app. It supports multiple media types, multiple generation modes, and a broad set of models, including our own Firefly models and non-Adobe third-party models. With generative capabilities ranging from image and video to audio, 3D, and vector, we're giving creative pros even more control. You can use a rough sketch and references to generate and edit crisp, high-quality images. Camera controls and keyframes enable you to both generate and edit video sequences. You'll have the flexibility to choose between generating content with Firefly models or third-party options, so you can decide for yourself which model best fits your specific project or workflow. As always, the content you generate is tagged with content credentials to protect your rights. No matter which model you use, we won't train AI on your content. It's easy to train a commercially safe custom model using Firefly.
Simply give Firefly a set of images. It will analyze the content, learn its style, giving you tailored results that are relevant and precise. Using the new multiplayer creative ideation tool, you can explore endless artistic directions and possibilities. You can use words and images as inputs. You are no longer limited to text prompt accuracy. Additionally, you can remix and combine images and styles, extract specific elements, and reuse them to create new content to arrive at the best idea and get on the same page with your creative team and clients, or send to other Adobe tools. Firefly goes beyond core generation capabilities and offers a host of generative features, including voice generation, sound effects generation, avatar generation, translation services and lip syncing, and video resizing. Firefly is available with multiple plans with the option of easily upgrading within the application.
Adobe Firefly is transforming creative ideation, collaboration, and brainstorming. With support for multiple models and multiple media types, it's the most complete creative AI platform in the i ndustry.
That was Shantanu's idea, by the way, to add the purchase screen. He thought you guys might be interested in that. I hope you watch the rest of the demo, too. The core idea here is, again, when you have the ability to start with a sketch, then generate an image, then take that image and use it as a series of keyframes to generate a video, and then take that video and turn it into a 3D ecosystem, all in one platform, that's the power of what we've been doing. I think often you look at an individual model and you compare it to another individual model.
This ecosystem and this orchestration is really where the game is going to be, especially as we embrace and embed more third-party models directly in this ecosystem, too. It becomes the one place you can come to do all of that control, regardless of the models you're using. Now, what gets me even more excited than that is that you have to also take a step back and say it's not only about generative. It's about generative in the broader flow. As we've been doing more and more around web and mobile and building together an entire ecosystem of web and mobile offerings that start with freemium, you can then start to imagine with Photoshop and Lightroom and Express and Firefly with video coming soon, how you start to really blur these worlds of generative and precision.
With that as the foundation, let's take a look at how all of these applications kind of work together. These are all applications that are in market, and we're building these bridges in a way that I think we are uniquely capable of doing. This is the Adobe secr et sauce. Let's take a look.
The next generation love to create on their mobile devices and in their browser. Adobe is building the most complete creative mobile and web ecosystem with apps including Lightroom, Photoshop, Express, and Firefly. You can upload a photo and apply a preset to get the mood just right. Adjust the emphasis of sky, plants, water, and other natural areas with Scene Balance and reorient a landscape photo into portrait.
Simply drag the handles on the bounding box to set your desired canvas size to fill the empty space, matching your original image's style and details. The object selection tool automatically detects objects or regions in your image, such as people, sky, water, or mountains. When you hover over the sky, it is highlighted with a color overlay. You can automatically select the sky with a click, isolating it from all the other objects and replace it. Type in a prompt to describe what you want to create. Firefly analyzes your image to generate a new sky that matches the lighting, color, perspective, and shadows of your original image. You can explore the variations that Firefly generates and choose one that suits your needs best. Now you are ready to generate a video.
In seconds, your image can be transformed into a time-lapse video using a simple prompt and setting your image as a frame. You can then send the video to Express, where you can build it into a complete, polished social post. In Express, you can explore AI-generated designs or start from scratch with your generated video file. In the video editor, it's easy to add text and graphics. With a single click, you can apply professional and expressive animations. You can also fine-tune your video, adjusting the timing of each element with precision to meet your vision. To complete your scene, add an audio track and sync it to your video for an even more impressive output. When you're done, share your video instantly to your social channels.
With Adobe's mobile and web apps, you have a complete set of creative tools, whether you're working on your phone or in your browser.
That is really the power of how all of these things eventually come together, and really the power of web and mobile. In many ways, with the fact that we now have such a broad ecosystem of web and mobile applications, the migration and movement of assets and capabilities from one to the other becomes a lot easier than it's been in the past. We are very excited about how all those flows can stitch together from a picture you take to an animated multimedia social post in a matter of minutes. I do not think anything like that has been done before. I think our integrated ecosystem is going to make that seamless and easy for everyone to do. All right.
Now, last but certainly not least, one of the things that we talked about this morning, and for those of you who had a chance to see it, was really how all of this content creation and production can be scaled in a way that enterprises can benefit from it as well. We talked about Firefly Services and GenStudio as part of the underpinning for that. Firefly Services is able to automate a lot of the tedious, time-consuming, expensive tasks that are happening in organizations. We talked about the fact that it has seen great uptake. We talked about the fact that we see these run-rate deals that are landing at about $250,000, and the fact that we have some companies that have come in with transformational investments and are spending millions of dollars on this as we go forward.
What we see is a lot of value and ROI here that's incredibly clear. We talked about how we are seeing companies reduce production times by 70%, especially for those variations and those scaled assets. That sets us up incredibly well, I think, for the year ahead. I'm not going to spend too much time on that because Anil is going to get into the details of this. Hopefully you get a sense of really where we're going, not just with the business profession, but also now with Creative Pro and creators as well, and how well established we are with Firefly and everything that we're doing as the foundation here, how we're bringing in third-party models.
I also do want to sort of end with a little bit of, I don't know, visual candy, because the next generation of Firefly models that are coming out are going to blow your mind. If you think about we are about to release, or we'll soon release, Image 4, we released our video model last month. We're about to release the next version of our video model already because we're able to do parallel development. Take a look at how our customers are saying that they're evolving their practices to embed Firefly in how they work every single day.
Adobe Firefly is an absolute game changer for creatives like me. Firefly has really become an extension of my imagination. I've used Firefly for years now, and it has sped up my workflow massively.
As a creator, I use AI all the time to generate images, to generate videos, just to be more efficient in my own content creation process. Firefly feels like AI built for creatives by creatives. I feel like I work in a completely different job today compared to five years ago. If I'm being fully transparent, it's a job that I have been enjoying so much more. You know what I love about Firefly? I love that it's just there. It's built into Photoshop and a lot of the other Adobe tools that I'm already using in my workflow. I think my first touchpoint was in Photoshop with Generative Fill, and I can't tell you how many times I've used it since. GenFill and similar tools have changed my entire workflow. With GenExtend, I can expand my ideas literally.
I no longer have to sketch out a still storyboard. I can use text prompts to generate a moving treatment for a commercial in seconds. It has elevated my creative work, and honestly, I think it's cemented itself as part of the creatives' toolkit. They keep coming out with so many unique features and models, and they are just blowing past the competition at the moment. I'm so excited to see what they come out with in the future. Once you try it, and once it clicks, you're probably not going to want to go back.
All right, to net all that out, the CC apps are going to continue to get better and better with GenAI, including agentic workflows. The Firefly app is going to become the one-stop shop for creative generative capabilities as we integrate more and more third-party models.
As you see Firefly continue to get better and we create these incredible cross-media orchestration layers, our growing family of web and mobile apps is going to be the most complete, most integrated set of capabilities across generative and across precision. The Firefly Services and GenStudio is off to a great start with strong and measurable ROI. We feel really good about where we're going and why we win. When it comes to monetization, we're going to drive new user acquisition with the family of freemium web and mobile applications. We're already starting to see that increase happening in terms of traffic, and we're starting to go through the process of conversion and monetization, just like we have over the last decades with Acrobat.
We're delivering new value and premium tiers by integrating more generative capabilities into our CC applications and building Firefly applications and integrating that eventually into our CC applications through more tiering. We're growing the one Adobe opportunities that we see in enterprises that brings all of this together. With all of that, if you think about those two opportunity sets, that's a lot. Let me summarize. We see the market shift as creating a huge opportunity for creativity across business professionals and consumers, creative professionals and creators, and marketers like Anil will talk about. There's going to be more content being created, and that drives more users that we can attract, that drives more value that we can provide existing users, and more value we can provide enterprises.
Our product strategy and our global go-to-market footprint gives us a lot of confidence, and we're already starting to see the momentum across the growth drivers as mobile traffic continues to spike for Adobe, as generative credits are starting to show that growth, and as value pricing is starting to ramp with Firefly Services. Thank you for the time. Anil, over to you.
Awesome. Thank you, David. Thank you all for attending our summit. It's been a great show. Over 12,000 customers and partners in attendance. We have both over today and tomorrow. Today we had James Quincey in conversation with Shantanu talking about creativity and marketing and AI. Tomorrow we have Jamie Dimon and a number of other customer speakers. We are really excited about the response we've been getting from our community. We have had a tremendous amount of product announcements in innovation.
David covered a number of those. I will talk about some in the rest of my talk as well. It is across the board. It is really about bringing together the creativity and marketing together into the area of content supply chain, which we are doing with GenStudio, into all of the things that we are doing with unified customer experience across customer data and journeys, and essentially being able to provide a complete solution for marketing professionals to take advantage of this era of AI. Shantanu talked about the evolution of the creative opportunity. For me, what is really exciting from an enterprise and from a marketing perspective is when you think of the creative and marketing and AI coming together, that is a virtuous cycle.
If you think of all of our tools being used to drive marketing campaigns, the customer data, the insights that our enterprise customers get from those tools, now all of that data and insights are used in the creative tools to create more compelling content, more personalized content. That content then feeds into the next set of marketing campaigns and tools. That is how you get personalized campaigns that you can have across the entire customer life cycle, whether it's in customer acquisition, whether it's for engagement, for retention, for loyalty. That is the virtuous cycle that Adobe alone, we have such a unique position to drive that virtuous cycle because we're combining creativity and marketing. Where AI comes in is being able to do that more personalized content. As Coca-Cola talked about this morning, when you think of personalized content, now you can personalize it specific to an individual.
How you do it in the context of the campaigns that you're running is extremely important. That's where the judgment and the marketing strategy comes in. The ability to do that with creativity and marketing and AI is a great virtuous cycle that I think Adobe is uniquely positioned to drive. If you look at the overall market opportunity across creativity and marketing, and we serve thousands of enterprises, both the creative professionals and the marketing professionals, today, if you think of what the overarching demand is, it's about delivering personalized, connected across different channels, different touchpoints, and compelling digital experiences across all these different channels. That's easier said than done. In most companies, if you look at just the marketing technology they have, they have tons of applications, lots of fragmentation, lots of manual work, lots of ad hoc processes that they need to bring together.
Now you think of what they need to do to connect that all with the content creation tools and with the AI to take advantage of generative AI. It's a tall order for most companies if they don't have a solution that really cuts across what they're trying to do and helps them deliver those kinds of personalized experiences at scale. They are doing this in an environment where there's tremendous pressure on marketing spend. The unique value that we provide at Adobe is we have the scale, we have the portfolio that really cuts across the creativity and the marketing worlds. We really can cut across what we call the personalization at scale.
We are able to do that by helping them take cost out in this environment because they can consolidate some of those smaller players that they have or custom systems that they have built. The investments that they make in Adobe pay for themselves just through the cost reductions. All the advantage that they get on top of what they are getting in terms of better ROI is really obviously the reason that they want to invest with us. Let's take a look at the video to hear about this just in the voice of the customers themselves.
Every brand needs performance all the time. Marketers being asked to do more with less is going to continuously evolve and be part of the conversation, I think. We really need tools to help us actually get there faster.
Creativity is the most important part of the process, and I would say more broadly, storytelling itself. Technologies like AI and generative AI in particular make it possible for us to present it in a way that solves a real consumer problem. AI has changed the ballgame for marketers. The power of these platforms allows us to bring that proprietary view, that single view of our customers. One of the core challenges has been the ability to unify all the systems together: the marketer, the creator, IT, the technology. As we become more data-focused, more tech-enabled, it becomes more and more important to stitch it all together. The unification of all of these different tools enables us to actually meet those customer demands with the scale and the velocity that they expect.
The number one thing I think any brand leader would say, the importance of brands, is that they are authentic. Custom models give us that leveling of brand consistency and then also brand relevance. Using AI and reaping the benefits of the volume and the velocity, it cannot come at the expense of authenticity and trust. We're not putting anything out in the world that we don't feel comfortable around its source. Clients are demanding that we have commercially safe models. Adobe's approach in the marketplace around generative AI techniques, that's critically important to everything we do that goes to market. We need to deliver our brand as omnichannel, but not repetitive. We have to create derivative assets, but they can't be copy-paste. In large enterprises like mine, it has never been possible to get everyone universally trained on the brand ethos as it stands today.
Insights, strategy, and analytics all drive our creative, especially our creative optimization. The better we are at that, the more effective our advertising messaging is, and the more effectively we build long-term relationships with our consumers. Adobe's actually bringing that end-to-end process together. That sets the vision for what AI should really be doing in the future. Adobe is one of our most trusted creative partners. The fact that they have embraced not just artificial intelligence, but also generative AI with real provenance and embedded right in the tools we use has made them a no-brainer partner for us to be better at connecting with our consumers.
Over the last couple of years, the creative opportunity has been driving our enterprise growth. We actually see it in two places.
One, on the left side, you see the Creative Cloud ending enterprise ARR, which was $2.2 billion for us at the end of last year. Within the Experience Cloud subscription revenue, that same creative opportunity, that content opportunity has been a disproportionate driver of our growth with a CAGR of 16%. Out of the $4.9 billion that you see in digital experience, Experience Cloud revenue, content was a 16% grower and driving a significant portion of that growth. What we've been able to do with the creative opportunity that we have is to really drive new category creation. We started with digital marketing, as Shantanu talked about, with the acquisition of Omniture. We expanded that to customer experience management when we realized that digital marketing and the customer experience were converging.
We drove that by enabling our customers to have the platform, the Adobe Experience Platform, to drive content and data and journeys to deliver personalized experiences. The next level is the orchestration of these customer experiences, including the content supply chain to continue to drive content with generative AI. It is the unified customer experience and bring together the benefit of this agentic and generative AI technology. That is the future of the next category of digital experience and Creative Cloud together. What is this customer experience orchestration? We believe that it really enables enterprises to combine creativity, marketing, and agentic AI to deliver personalized, conversational digital experiences, compelling digital experiences in real time because they have to be able to do it across any channel, any touchpoint, and to be able to do it at global scale. There are very few companies who can pull this together.
This is what's going to differentiate every brand, whether they're a B2C brand or a B2B brand, in terms of their customer experience. Adobe is uniquely positioned to bring this together. How we think of it, when you think of this customer experience orchestration, this is how we think of how customers can orchestrate to deliver these personalized experiences at scale. They have to bring the content, the data, the customer data, and the customer journeys together. The content supply chain through Adobe GenStudio is what helps them deliver that content. The unified customer experience built on the Adobe Experience Platform brings together the customer data and the journeys and is closely integrated with the content. All of that runs on what we just announced, which is the AEP Agent Orchestrator, which we have built natively on the Adobe Experience Platform.
It has the ability to orchestrate across all the tools that we provide, as well as third-party tools and third-party ecosystems. Let me dive into content supply chain and Adobe GenStudio. Shantanu talked about the opportunity, and David talked about the aspects of the content supply chain all the way from content creation and production, workflow and collaboration, through having a single asset management, being able to deliver and activate that across multiple channels, and being able to use the analytics and the insights to better deliver the content. This is something that enterprise customers are really asking us to do because today they have a patchwork of applications and systems, ad hoc processes, working across their own teams, across agency partners, maybe freelancers. It's a process that is highly inefficient and not fast enough for them.
We have the ability to transform the content supply chain by making it more efficient for them, more agile, and be able to take the power of generative AI to make it personalized and compelling in terms of the content that they deliver. That is the GenStudio solution that we talked about, built natively on the Adobe AI platform. It is an end-to-end AI-powered solution that brings together our best-in-class portfolio across creativity and marketing to power the content supply chain. What is in the GenStudio application? Five key building blocks that you see on the top, and we cover all of them with the portfolio of applications that we have across Adobe. We are building new modules for specific use cases for performance marketing, which is one of the big use cases that we see in a lot of companies.
We built GenStudio for performance marketing, and we released it at Max, and it is doing extraordinarily well. We are in the process of releasing new modules for GenStudio for creative production and for new use cases, potentially around social, retail media networks, connected TV, and so on, all running on a common GenStudio foundation and powered by the Adobe AI platform. The Firefly models that David talked about, customer experience models that we have built within AEP, as well as third-party models that we are working with. The benefit of doing this for us is it really cuts across the entire solution that enterprises are looking for.
What we are able to do is, for example, if they need fewer seats in terms of the creative applications to deliver the content, they will actually need a lot more of the new technology that we have built around, built on agentic AI or on the generative AI models. By bringing together the entire solution, we can provide value-based pricing, and we can provide value-based solutions to enterprise customers. The AI platform, the Adobe AI platform, is at the heart of GenStudio. We today announced a set of 10 purpose-built agents. Three of those agents are part of the Adobe GenStudio: the content production agent, the workflow optimization agent, and the site optimization agent. We have already seen huge traction in the generative AI capabilities that we have released over the course of the last 12 months.
Within Adobe Experience Manager, which is our web content management flagship tool, we released something called Generative Variations, which is our add-on last year. Quarter over quarter, we've seen a 40% growth in the number of interactions, which means the number of web pages that are generated using AI, generative AI, and a 20% growth in the increase in the number of customers quarter over quarter. We see momentum for GenStudio across the ecosystem. We think of the ecosystem as obviously the customers, the enterprise customers, the brands that are using these products, so whether it's someone like Starbucks, for example, where we're powering the rebranding that they are doing that you have seen at the Super Bowl, customers like Coca-Cola, obviously, like that James talked about this morning. We're also working really closely with agency partners and SIs around the world.
They see the need to transform the content supply chain. They see some of the gaps that exist today, and they are equally motivated to transform the content supply chain. On the marketing and advertising side, there is tremendous interest to work with us, whether it's Meta or Google or LinkedIn or TikTok or Snap or others. We help create more content. More content means more ads. More ads obviously means more revenue for them. They are extremely motivated to work closely with us to drive Adobe GenStudio. I've talked about the content supply chain to power personalization at scale. Now let me turn to the other parts, which are the customer data and journeys, because those are equally important. As I mentioned earlier, it's the ability to bring all three together that really positions us uniquely.
Within that unified customer experience, we've again seen a tremendous amount of growth over the last few years because we had the vision to invest in the Adobe Experience Platform starting in 2018. We released it in 2019, and it was a platform that was really well designed to be cloud-scale, to provide a real-time view of, to provide real-time activations and interactions. It provided a complete view of the customer through the unified profiles. As a result, we are the leading customer data platform in the market, and AEP is the leading data platform to support marketing journeys and customer experience. Again, we are innovating a lot to incorporate generative AI and agentic technologies in an open and extensible manner to power AEP and apps.
Today, as part of what we announced this morning, we have seven purpose-built agents that we announced as part of the Adobe Experience Platform Agent Orchestrator. These are all built and powered by the Adobe AI platform. We gave an example this morning of the audience agent. The audience agent, for example, computing audiences is an arduous task, is a very manual task in most companies. If you say, "I want an audience, for example, with this demographic who has exhibited this kind of behavior, who have responded to these types of offers," getting that data alone is a very manual problem in most companies. Through this agentic technology, we now make it automatic for customers. We integrate that with our content tools so that you can build purpose-built content, compelling content for those specific audiences.
Again, with the Adobe Experience Platform, we released the AEP AI Assistant built on GenAI last year, and we've seen tremendous take-up because these make these kind of sophisticated tools very easy for marketers to use. We've seen a 30% quarter-over-quarter growth in number of customers and a 50% quarter-over-quarter growth in the number of interactions through the AEP AI Assistant. We have tremendous industry leadership at scale through the Adobe Experience Platform and the native apps. To give you a few examples, we have 43 billion customer profiles managed. One of the things that Shantanu always reminds us is there's only 7 billion people on the planet. How do you have 43 billion profiles? That's because every customer's data is their own. We have them in specific instances, and we don't intermingle data. We don't sell anybody's data. We're not a data broker.
That is how we have the 43 billion profiles. We also have 76 billion profile activations, which means generating audiences and taking marketing activations on those profiles on a daily basis, 76 billion daily activations. All of that happening in real time, typically a less than 100-millisecond response so that if you go on somebody's website or if you open a mobile app, you get an instant personalized experience through the Adobe Experience Platform. That leadership has helped us with the growth, 50% growth in AEP and apps subscription revenue year over year and a 30% growth in the number of customers we have on AEP and apps year over year. Again, tremendous momentum across the ecosystem.
One of the key messages I want to leave you with is, as we think of these agentic AI technologies, all of the work that we are doing, it's really important to orchestrate across an ecosystem. The enterprise customers that we work with, the likes of Coca-Cola or Starbucks or Marriott or Nike or others, they don't have just one vendor, obviously. They have complex architectures that they have invested in and built over time, including their own applications and third-party applications. It is really important for them that a partner like Adobe really is able to plug into what they have and helps them take advantage of generative AI capabilities in the new agentic technologies. That's why we work with all the leading independent software vendors, all the leading agencies and SIs to make that happen.
This morning, when we talked about the AEP Agent Orchestrator, we highlighted partnerships with Microsoft and ServiceNow and SAP as we launched the AEP Agent Orchestrator. When you think of these customers, it gives us a tremendous install base and a tremendous footprint and a great set of trusted relationships to really bring the full power of Adobe to them. When we think of the enterprise go-to-market, we really actually think of it across all of Adobe. When you think of all of our clouds, we bring them to our largest enterprise customers through one go-to-market motion. We're a trusted partner at the C-level, typically the CMOs, the chief customer officers, the CIOs, as well as to the CEO and CFO. We have over 250 accounts with $5 million of ARR of the 22,000 accounts that we talked about, that we mentioned earlier.
We've had over 100% growth year over year in joint deals of creativity and marketing. That is driven by the market demand where CMOs and CEOs see the need for delivering these personalized experiences at scale and see the need to bring the content and the data and the journeys together. We have a lot of room to grow. We've already showed that we have over 1,500 customers with five plus of our products across the Creative Cloud and the Experience Cloud. We have a lot of room to grow in the 20,000 base, and we'll keep expanding that through international expansion and greenfield and other motions. The partner ecosystem is critical for us.
I mean, you will see if you go to the show floor today, all the leading partners, they're building their own solutions or solution capabilities to complement what we have and bring it to different verticals, bring it to different geographies, bring it to different use cases. We are really thrilled to work with such an expansive partner ecosystem. We have presence across all the major verticals because we focus on that next-gen use case. For example, in financial services, it's the digital and mobile banking and self-service use cases. In media and entertainment, it's digital streaming and fan engagement. In travel and hospitality, where the new offering that we just announced called Brand Concierge is really taking off, it's because they're focused on customer engagement and loyalty. Through a solution like the Brand Concierge, they can provide that personalized one-on-one experience to everybody in their customer base.
A couple of examples that I wanted to highlight from that list that we've had this one Adobe motion, which has resulted in a lot of go-to-market success for us. A global restaurant chain where it was a total contract value of over $150 million. What they're really focused on is in increasing loyalty by driving deeper digital engagement along with people coming into their restaurants and making sure that they can connect those journeys and then acquire new high-value customers, especially through social. We provided a unified platform for them across the content supply chain with GenStudio, as well as the unified customer experience with AEP and apps, bringing together a solution to help them drive that. A major financial services company again last year, this was over $50 million of total contract value.
They are focused on customer acquisition, acquisition of new cardholders, and then an increasing share of wallet once they have the cardholders, making sure that an increasing share of wallet goes through their cards. They wanted to standardize. They had a lot of tech debt, especially in their customer experience and marketing applications, and they wanted to standardize on one unified customer experience platform. A global agency partner that we worked with really doubled down on Firefly Services and our entire GenAI offerings. They wanted to standardize and accelerate content production. For them, there are two things that they were solving for. Because they've grown through acquisitions, they have a number of sub-agencies. They wanted to have a standardized workflow across their sub-agencies. They also want to have a seamless workflow with the enterprise, with the brands that they serve.
That makes it easier for them to deliver the work they do, but also to become the agency partner of choice with those brands. We are helping them with both of those use cases. Let me wrap up by talking about how we win. We think that the combination of creativity and marketing and AI that we are bringing is really unique in the market. Every chief marketing officer, every chief customer officer really wants this. The CFOs and CIOs also want it because it helps them rationalize their tech stack and helps them use generative AI and agentic AI in a set of use cases that are really critical for them. The CEOs are really interested in this because it helps them drive that next generation of customer experience and helps them differentiate their brands.
We have a set of unique capabilities and differentiators from the entire comprehensive portfolio we have for customer experience orchestration to the umbrella GenStudio solution that we have for creativity and marketing coming together that we have across all of our clouds, the personalization at scale that we're able to deliver and drive with AEP and apps, which is powered by the Adobe AI platform, and the one Adobe enterprise go-to-market presence and motion that we have to deliver all of these capabilities. That's my wrap, and let me bring up Dan Durn.
Thanks, Anil. Hello, everyone. I want to bring the finance lens to what Shantanu, David, and Anil teed up from a strategy perspective. As you look at Adobe's growth trajectory, we have a pervasive ecosystem. We're operating at scale. Our engine of innovation, it's operating at a faster pace today than it's ever been.
We're driving 95% subscription revenues, which is nearly double from a decade ago, all while growing revenue by a factor of five. Few companies have built this level of SaaS predictability. In short, we're incredibly well positioned to capitalize on the massive AI opportunity on the horizon, arguably the best positioned. Adobe's industry-leading clouds have grown through strong product leadership and groundbreaking innovation. We've got a proven track record of executing our growth algorithm to drive results: new users, cross-sell/upsell, and pricing. We're doing it at scale. Our innovations are driving strong momentum across each business, and we can see it in user growth and value uplift in the stats. As customer needs blur across the businesses, that momentum is going to accelerate as we address that massive opportunity that sits at the intersection of creativity and productivity and the intersection of creativity and marketing.
You can see the digital media momentum continues to be strong. Paid subscriptions, they're up 10% year over year and nearly 40% over the last three years. It's a great showcase of the growth algorithm in action. New subscriptions continue to be the predominant driver of growth for the business. The evolution of the creative opportunity, it's propelled Adobe's growth for years, and it's going to continue to drive growth in the years ahead. Creativity, it's become pervasive. Pervasive across roles, pervasive across industries, pervasive across communication. As you heard from Shantanu, Anil, David, our growth agenda, it's focused on three audiences: business professionals and consumers, creative professionals and creators, marketing professionals.
I want to share additional insights on how we're thinking about the business to provide a clear view of our execution against our growth strategy and also highlight the shifts we see in both customer needs and buying patterns. For business professionals and consumers, we're unlocking value at the intersection of creativity and productivity as visual content plays an increasingly vital role in digital communications. We're delivering quick and easy AI-first consumption and creation capabilities that this audience needs. You see it in the innovation that we're driving in Acrobat, and you see it in the innovation that we're driving in Express. The Express opportunity, it's increasingly connected to and monetized through Acrobat. Our freemium products, they facilitate a frictionless onboarding. Our scaled distribution, it enables us to reach billions across desktop, web, mobile. AI, it's driving a profound shift in creativity and marketing.
It is bringing these once distinct functions in the enterprise closer together. Our AI-powered solutions, they are increasingly generating the need for an integrated content lifecycle. It gives us the opportunity to monetize content creation and production in new ways that are customer value or outcome-based. One Adobe deals, they are increasingly creating value for our customers. It is the best way for us to drive growth in the years ahead. In addition, our unified enterprise go-to-market motion enables enhanced scale and efficiency for us at Adobe. When we take routes to market and sales motions into consideration, we approach creative professionals and creators in a similar way to marketing professionals, especially in an enterprise context. It makes sense to combine and report these two audiences as a single customer group.
To recap at a high level, reporting insights, financial performance across our two customer groups, it's going to provide a clear view of Adobe's execution against our growth strategy and reflect the shifts we see in customer behavior. Business professionals and consumers who just want to get a task done, we're bringing scaled distribution and creative power to bear at the intersection of creativity and productivity. For creative professionals and creators and marketing professionals who these tools are their livelihood, our solutions enable a more effective and efficient integrated content lifecycle and one that drives a creative business outcome for our customers. Each group leverages creativity differently. One at the intersection of creativity and productivity, another at the intersection of creativity and marketing. The power of Adobe's platform, the power of Adobe's AI platform, it unlocks value for customers at each of these two intersections.
When you take a look at the business, a few things stand out. Creative and marketing professionals, they're the majority of the business. When you look at both of these customer groups by route to market, you see the healthy mix of enterprise and digital in channel. We operate at scale, greater than $20 billion of subscription revenue. We've got 750 million monthly active users in digital media, with more than half of that in web and mobile, 22,000 enterprise customers. Let's double-click. Let's take a look at business professionals and consumers. The opportunity, it's massive. We're growing 15% year over year. We're pleased with the business momentum. You can see it in now growth. You can see it in usage, and you can see it in engagement. We leverage our digital and channel routes to market to make customers successful through frictionless experiences.
This is the power of a freemium model and product-led growth. We're acquiring new users by, one, proliferating Acrobat and Express across every surface; two, executing the Acrobat playbook to scale Express; and three, international and enterprise expansion. In addition to proliferation, it's also about increasing customer value. We're accelerating time to insights. We're boosting productivity. We're empowering business professionals to communicate more effectively by unlocking the combined power of Acrobat and Express. Acrobat, it's got a proven track record. Frictionless experiences have turned acquisition into engagement. As a result, 650 million monthly active users. The impact of combining frictionless customer acquisition with viral product-led motion, the impact's phenomenal. Now we're running the same playbook with Acrobat AI Assistant and Express. Moving on to creative marketing and professionals, where we also have a massive opportunity, driving 10% year-over-year growth, and we're just getting started.
We're seeing strength with creative and marketing professionals, and you can see it in usage and engagement. Customers, they're generating over 1 billion Firefly assets every month. The magic happens in our applications that our customers know and love, embedded into the creative workflows that define their day-to-day. We're driving growth in our seat-space business by, one, expanding creative applications like Photoshop, Lightroom to web and mobile, establishing the Firefly app as the most comprehensive destination for AI-driven ideation and creation. Three, supporting third-party models. Four, infusing Firefly across the creative apps and continue to align pricing with the value we're delivering to our customers. Lastly, driving international expansion. In the enterprise, you can see we're building momentum with our cross-cloud solutions. We saw 100% growth in joint creativity and marketing deals.
These one Adobe deals harness the power of creativity and marketing to more efficiently deliver personalized digital experiences. We know how to deliver enterprise scale. We have been a trusted partner in the C-suite for decades. We have a large customer base and a growing partner network. Explosion of content has been a key driver of our enterprise success. We empower marketers to effectively deliver personalization by better understanding content performance. We do it at scale. We have more than 22,000 enterprise customers. 1,500 of them use more than five products. We have a massive upsell and cross-sell opportunity. Taking a step back, AI monetization. Our innovation is infused across the breadth of our products, and it is influencing billions of ARR. You can see the impact. New users, more usage, better retention, more value.
That is only going to continue as AI becomes an increasing driver of Adobe's growth. The impact is also reflected in new AI-first products. They have contributed greater than $125 million book of business exiting Q1, and we expect to double that in the next three quarters. Adobe's expertise across creativity, productivity, customer experiences, combined with our industry-leading AI platform, scaled go-to-market motions, and our exceptional brand, makes for a winning combination. Our differentiated offerings unlock creativity and productivity for business professionals and consumers. Our unique approach to serving creative and marketing professionals delivers end-to-end solutions that redefine the content lifecycle. Our innovation strategy is underpinned by a world-class financial profile, strong margins, strong cash flows, strong capital allocation with EPS outgrowing revenue. The company is performing well. We are making good progress against our $25 billion share purchase authorization.
We have a strong point of view around the future growth of the company. We are going to continue to be consistent and opportunistic with our capital allocation. Given what I see today, we are likely to exhaust that four-year authorization in only three years. As we reflect on Adobe's journey, the momentum we are building is propelling us towards unprecedented opportunities in the years ahead. We are redefining what is possible in the global digital economy. Our foundation is strong. The path forward is clear. Bring groundbreaking solutions to life for our customers and execute with excellence. Adobe's future is brighter than ever. With that, we will get the team up, and we will go to Q&A. Thank you.
I will remember who I am. Thank you. Do you have one in? Do you have one in? Oh, do you have one in? Okay. All right. Thank you. All right.
We'll get into the Q&A now. I think we've got time for about half an hour of Q&A, so we'll just see how we go. I'll pick on a few of you folks that have got your hands up, and we'll pass the mics around to you. Let's just sort of bring it around to this sort of chap here with the beard. His arm was up first. I don't know your name. Sorry. If you don't mind just introducing yourself when you have questions.
Absolutely. Yeah, I'm the man with the beard from KeyBanc Capital Markets. Yeah, Jackson Ader. Good to see everybody. A couple of questions on AI monetization. Shantanu, I guess if you think about where we are at $125 million and kind of the standalone direct, you started with nothing a year ago or whatever, 15 months ago.
Where did you expect the standalone AI to be maybe at this point? I have a quick follow-up.
We're actually really pleased with the performance. Again, just to make sure, those are just brand new products. If you take an independent startup that starts off and builds a business from zero to 125 to 250, I think most people would say that's a pretty phenomenal performance. I think you're going to continue to see Firefly services. I would say GenStudio, they've been doing really well. In the enterprise stuff, we always have aspirations within the company, but I would say in general, we're pretty pleased. Again, on the other part, let me again touch on that.
When you talk about $3.5 billion approximately in influence revenue, again, just so we take the number of Creative Cloud people, we take what % of them are using GenAI. You can attribute what value AI is providing to them. Enterprise, I may not have touched on that. In the enterprise, we have multiple offerings in the enterprise. Think of it as CC, ETLAs, enterprise term license agreements. In those enterprise term license agreements, when we move them from one version to another version, where that version, the only difference is in AI and Firefly capabilities, that's in that $3.5 billion. I may not have touched on that earlier. That was the sort of second part. Express, we put in the creative part, AI generated. You can argue, is that new? Is that influence? That's why I'm going back into that.
If you add all of that stuff together, and then again, as we said, the DX book of business and what we are doing with Acrobat. Really pleased. I mean, I don't know of other companies that are actually providing the kind of transparency that we are in terms of large companies and showing how it's influenced it. The pricing. I mean, at some point, David also alluded to this, that when we have these higher-tier pricing, it's all because of the value of the AI functionality.
Do you think you see or envision, I guess, a future with more partnerships on third-party models?
Could you see a future where Adobe just says, you know what, like Firefly is going to have maybe a more narrow use case, and we're going to expand the AI, the third-party models, and let the third-party AI-specific companies really do a lot of the innovation, and Firefly takes kind of a different route?
I'll start, and then maybe David can add. First, we are not going to outsource what is our core IP. I mean, that's the part to control what is happening. People talk about what's happening just with these video models or imaging models. To make that magic happen in Photoshop or generative extends in Premiere, we didn't talk about sort of the adoption of Lightroom and what's happening with generative remove in Lightroom. All that happens because we know how to control these models. We also do recognize that models will have a personality.
When models have a personality, in the ideation part of that, if you want to say, hey, let me try out a different model, great. You can try that out, and supporting that is important. In the enterprise case, we're already doing it because we have enterprise custom models. We're going to continue to invest in the core IP for us, which is the models, the agents, as well as the interfaces. Supporting these other third-party models only benefits the customer, which benefits us because it continues to make people use our interfaces. That is true also in DX, where we're going to be doing that.
Yeah, and we've always been, and this is why I made such an emphasis on the orchestration and the workflows across these different media types and the toolability of the models in this context.
We've always enabled people to work across these boundaries. We've also always had a belief that we want to give our customers ultimate choice. If they want to use A versus B, we want to let them make that decision. We are also setting up an ecosystem where whatever happens, Adobe can win. If something amazing happens with a breakthrough in a model, we want to make sure our customers get that, and we want to make sure they get it through our tools, and we want to be the first to enable toolability. To Shantanu's point, though, there is a very big difference between creating a model that produces something beautiful and creating a model that's toolable.
We spend an inordinate amount of time making sure our models are toolable and are going to act with the personality that takes the desire of the individual, as opposed to many models which have their own personalities that are so strong, they actually fight the creative in terms of what they want to produce. It's a mix of these things. The last thing I will sort of always go back and emphasize, we continue to see a very strong demand from customers, especially enterprises, in terms of how the models are trained and the provenance of the data that goes into it. We will be the one-stop shop. If anyone wants any innovation that's happening in generative AI, come to Adobe. You'll have that choice.
Perfect.
Maybe I'll just add 30 seconds more on this, which is how do I think these models are going to emerge? You are going to have some large language models. The behemoth companies are going to have their large language models, but they're not going to focus, I mean, on their path to AGI. Creativity is maybe a sidestep along the way. It's not the focus of that. We're working with every one of them as well, but they are focused on a much larger problem that they have to solve, where the ability for them to do the models for the kind of stuff that we do is not going to be their primary focus. To your point, you have a whole bunch of other small models.
It'll be really interesting to see three years from now, five years from now, how many of them actually have the financial wherewithal to succeed and use VC money to keep investing in these models. We'll find out. I think to David's point, we benefit either way.
Ok ay, that's great. Jay, let's go to you.
We don't have an AI methodology to pick who.
Thank you, Jay Vleeschhouwer . What you spoke of today, this morning and just now this afternoon, in terms of the multiple product integrations within and across the segments, is, I would agree, the culmination of something you've been enabling and investing in for over a decade. The technology logic is clear. The use case or use cases logic is clear, going all the way back to DPS as a first instance.
The execution question, however, is at what point do you think you may have perhaps over-complexified the portfolio such that you need to start thinking about new forms of packaging, like GenStudio, but other things to accomplish packaging? Relatedly, what more do you need to do in terms of your own internal sales orchestration, the word du jour, in terms of improving your go-to-market across all the various clouds and products and so forth?
I actually think, Jay, that this simplifies it. Let me walk through why I think it actually simplifies the core offering. We all knew that the core Creative Cloud was serving many different customers with the same price point, whether it was business professionals and consumers, what we used to call communicators, how an enterprise buys it, and how the core creative professional, whom we keep saying, buys these products.
It was one product that we had to sort of fit to many different. I think if you walk away with the clear message that for business professionals and consumers, it's Acrobat and Express. That's the core value and the core priority for that customer. For a creative pro or a next-generation creative pro, it's a CC app and it's Firefly. For the enterprise, it's GenStudio and AEP and apps, and solving the content supply chain. Actually, I think from our perspective, it enables us to be really clear. Where do you want distribution? Where do you want MAU? Where do you want the ability to have a freemium model? Is that your great leading indicator? In the past, these were all a little bit more mixed as a result of the product serving multiple constituencies.
Even with models, going back to that, on the business, professional, and consumer, people really do not care about what the model is. They just want the thing to work. I actually think this simplifies it. I know it is a transition, much like the other transition that we did, Jay, but I think as you extend this, every enterprise customer, what do they want? They want GenStudio. They want GenStudio and apps. Yes, there may be a bill of materials. Every creative pro, we want them to have Firefly and CC. I actually thi nk it simplifies this in Acrobat and Express.
The only thing I would add is it is a really important question and just one that we spend a lot of time making sure that we do not let it overcomplicate.
The important thing to note as you look at the portfolio and you see the things that we have, there are the core strategic endpoints that Shantanu talked about. There is value in having a proliferation of things that are onboarding vehicles. At the end of the day, as Shantanu said, each segment has two core things. Other apps and other things that we develop are really all about casting as broad a net as we can to bring people along in the journey.
Brad.
Thanks so much. Brad Sills, Bank of America. Great session today. A lot of great innovation on display today. Questions on top of funnel, 650 million monthly active users for document Acrobat and 100 million for creative. It almost seems like, given the size of the consumer end market, those two should be flipped.
The question is re ally, what would it take to get the creative to that level of scale? Is there something structurally different about that end market versus the enterprise document end market?
Yeah, thank you. Yeah, happy to take that. The one that we're actually very excited about, we talked about how we're starting to see demand in mobile growing 60% year over year. Really, the way to think about it is that what we did with Acrobat five, six, seven years ago was really embracing web and mobile very actively, very aggressively. That is paying dividends now. If you look at the growth of Acrobat MAU as a whole, we're seeing a disproportionate amount of that growth actually coming in web and mobile, as you can imagine.
We've also said in the past, we were slower than we would have liked to bring web and mobile to the creative world and our suite of applications. We now have that. We have Express. We have Photoshop web and mobile. We have Express web and mobile. We have Firefly web and mobile. We talked about a video web and mobile coming soon. That ecosystem is now getting all of the benefits and the learnings that we had from our data-driven operating model that we talked about before. Now we're starting to see that in the creative ecosystem. We are seeing that growth. We also, to Shantanu's point, by integrating these things more effectively for the audience, we get a lot more leverage from the success of one in ensuring that those audiences have access to and visibility into other things that are of value to them.
I think that there's a lot of upside in this as a whole.
Brad, I think we were trying to be transparent on the two separate ones. We're sitting here a year from now successfully. We'll say, guess what? They're using both. It's the same MAU. That's clearly the goal.
Let's stay with Brad.
Thanks for sticking on the Brad theme. This is Brad Zelnick, Deutsche Bank. I don't think people realize what a flex it was, Jay's reference to DPS. Yes. Jay, many people in the room probably wouldn't understand.
You're impressed.
Thanks again for having us. As always, great day. I wanted to ask more about the $30 billion revenue target and how we get there. I understand there's always going to be periods of investment, disruption, proliferation versus monetization.
What would it take for us to see a reacceleration in the business, number one? Then number two, as we think about the two broad segments across, and I'm still learning and getting this right because it's only a week old, but business and consumers versus creative and marketing pros, how should we think about the mix of the two broad segments and getting there?
I'll start and then maybe you can add. I mean, Brad, indirectly you're saying, hey, give me a multi-year growth rate so that I can do the math from where I am right now on my $20 billion subscription to where we need to go. That part, I get.
I look at it, and if I look at 2024, firstly, I mean, clearly, I think as you look at 2024 record digital media ARR, that would be the half full. The half empty, you would say, is the, wow, on the book of business, is that deceleration, correct? That is sort of if I had to factor that both in, that is the way I would look at it. I think we said, if you look at the high end of our targets this year in terms of what the range is, it is double-digit growth. We said we want to aspire. You can do the math. We are not going to give multi-year targets as it relates to that. We look at both. We did the TAMs last year. We are not TAM-constrained by any stretch of the imagination, which is why we did not update it right now.
I would say perhaps the last couple of years, getting the seeding strategy for the business professionals and consumers, which is how do you get with Express and Acrobat that ingrained so that you can start to accelerate that business. We feel good about that. Now is the time to execute against the monetization on that with the MAU, as well as continue to seed. On the enterprise side, between this creativity and marketing, how do you just continue to demonstrate that we are unique and separate? Our aspirations are clear. I know I'm not giving you a, hey, here's our three-year target and how we look at it. We're not TAM-constrained in any way, shape, or form.
We will acknowledge that maybe there was this element of we did not articulate the seeding of what was going on in terms of the lower end and the freemium. By giving you that numbers, hopefully that gives you the confidence that, hey, they are focused on the right things by the customer group to accomplish the continued success that we have. That is the way we think about it.
Just to build on that, just to touch, what causes that inflection?
I think what we just went through today, what you saw out on the main stage, building the foundation of that future growth, opening the aperture at the top of the funnel, seeding the strategy, bringing a structurally larger user base to bear on a consumer product like Express on the web and mobile ecosystem, as you think about deepening value in the funnel, as we talked about what's going on with GenStudio, that end-to-end content flow that simultaneously drives top-line progression and bottom-line efficiencies for our customers. That foundation is going into place now. We've got to execute against that. The pieces of that are going in real time. I get really excited about what I see as I look forward.
Let's go to Saket here at the front.
Hi, Saket at Barclays. Echo my thanks for holding this session.
Maybe just to continue on that line of questioning around, Shantanu, what I thought was the most important comment just around that aspiration of continuing double-digit growth and the other part of that, which is faster EPS growth. Maybe just to build on it, if we zoom in just on the digital media part of the business, maybe for you, David, this is not a mathematical question necessarily, but how do you think about the balance of that double-digit growth between price and volume over sort of a multi-year period? Because we have said that price or value, I should say, is one of the levers. The other part of that question, Dan, maybe for you is growing EPS faster than revenue growth is great to see. How much of that do you kind of think about coming from margin versus, again, being opportunistic with the stock?
Yeah, great question. Our growth algorithm is, I think, fairly transparent. First, as Dan mentioned, the majority of our growth comes from new users. That is the engine of growth. That is what drives the business. I suspect that will be driving the business for many, many years to come. In addition to that, we also recognize that the value, and we have talked about this in the past, Saket, actually, I have talked to many of you in the past. Historically, we had a single offer that was doing double duty. The value of a product like Photoshop to a creative professional is fundamentally different than the value of a product like Photoshop to a hobbyist.
By stretching the lineup, as we've been talking about and really getting to the fruition of all that work over the last two years, we now start to be able to create levels and tiering that can really maximize both user growth all the way down to free users, certainly getting that conversion methodology going. As Shantanu said, I think we're very happy with how we've seeded more new free users in the funnel. Now it's about the work that we did with Acrobat over the last five to ten years, getting that conversion machine going. It's something we know how to do, but we're in the process of doing that.
When it comes to pricing, that's really where I think the opportunity continues to be with the advent of the generative credit capabilities and with the new capabilities we have around new AI capabilities that is really targeted at the pro. You heard that video where all the pros were starting to say, hey, look, I work completely differently in these tools than I used to work a few years ago. That fundamental shift is continuing to happen. We're seeing the growth in generative credits going. We also learned something from the work we did with Acrobat AI Assistant. When we first launched these generative credits, we gave all the features for free as part of the core capabilities. We started to charge if you needed more credits. With Acrobat, we did something different.
We tiered based on usage, but we also tiered based on the features that were available. Like AI Assistant, you had to pay for as an add-on capability. You will start to see both of those things coming to the core Creative Cloud applications in the years ahead. Actually, certainly we have a lot of opportunity in the near term too. You will start to see the tiering. I think pricing is going to be a core part of the growth algorithm. I think the other thing is going to be new users. The third thing, and I do not want to lose this, is the work we are doing with Firefly Services and GenStudio. You will see volume and generations for enterprises and output-based pricing also be a bigger part of the growth algorithm.
Saket, make no mistake, growth is the top priority imperative for the company.
The one other thing I'll say after earnings, I know all of you folks said, hey, can you give us business professional and consumer as well as creative and marketing professional subscription revenue and go back all the way? Hopefully you caught those slides. We went back four quarters and sort of giving that forward. You will see as you look at the subscription revenue growth versus the overall company revenue growth, certainly the subscription revenue growth is faster. I mean, that's the other indication that you should give when you look at all the rest of the revenue that sort of represents that number. Directionally, is this headed in the right direction? I just thought I'd highlight that as well.
Yeah, and then from an EPS standpoint, you rightfully point out the two levers at play. You've got margins and you've got capital allocation.
As I think about capital allocation, we'll orient towards growing the business, strong flexible balance sheet. We've got a long history of returning excess cash to shareholders. That's going to be a component. We're almost $11 billion in the prior four quarters of share purchase, $3.25 billion in the most recent quarter. You can see, in addition to being consistent, when opportunities present themselves, you'll see us step in and take a point of view on what we think the long-term intrinsic value of the company is. We're going to continue to do that. It all starts with being disciplined, focusing on the things that matter, drive strong margins and cash flow to feed that. From a margin standpoint, that philosophy is alive and well.
We talked about this investment cycle to support all of the tremendous innovation that you see unfolding and embedded into the product portfolio. We talked about a mid-40s operating margin through that investment cycle. I think it was two years ago at the Analyst Day, we talked about that. Mid-40s. We've been doing a little better than that in the recent environment. We feel good about our execution against that target. Once we're through this investment cycle, I've got a strong point of view. The scale benefits of a structurally larger company need to benefit shareholders. You'll start to see margin accretion off those levels once through the investment cycle. Both will be contributing factors to that EPS that outgrows revenue in a consistent way.
I would also say I think you focus so much on customer-based innovation here.
The work that Gloria and Dan and others do in the company to make sure that we're using AI to put the cost in the right place, that's also an incredible effort. If you're telling every customer you're going to benefit from what AI is, we're certainly wanting to be customer zero in that. That effort also is definitely underway.
Keith. Hey, thank you guys for taking the question.
Keith Weiss from Morgan Stanley. David, you talked about future innovations are going to knock our socks off. I would argue that the current innovations are pretty damn good. A lot of what you guys are doing is pretty amazing. We're hearing it from customers. We're hearing it from partners.
I think that makes the $3.5 billion disclosure probably more appropriate than the $125, because it really encapsulates what you're putting into the solution portfolio, what comes into GenStudio, which isn't that new. It's just bringing a lot of stuff together or stuff like generative fill and whatnot. Two questions on the back of that. Within that $3.5 billion, particularly if we look at 2024, price increases were a big part of that. Just to level set expectations, as we get into the back half of the year, we anniversary some of those price increases. Is there enough momentum in the generative AI? Is there enough momentum in the new stuff to overcome that headwind from pricing or sort of the tough comp from pricing, number one? Number two, how do you think more broadly about pricing?
Is there more room to sort of pull the lever on pricing, particularly now that you have the segmentation that you could really raise prices against the high-end customers and really protect your base at the low end?
Yeah, that's exactly the strategy. I think just to sort of double down on this idea of the stretch lineup, again, I know we've talked about this for a couple of years. It's taken a while to get here where we have the lineup that we have. It gives us a lot of flexibility going forward in terms of price-to-value mix. Within our base, we see a really broad set of people adopting Firefly. We also see a distribution of how they're adopting Firefly. We understand the impact and value that it has to different parts of our segmentation.
It gives us a lot of flexibility and freedom now to start to tier even Creative Cloud in ways that offer different capabilities. For example, videos are incredibly generative credit consumptive. If there are video professionals that are using video capabilities, in fact, you saw the slide that showed really what the different pricing plans were. We have a $199 price point per month out there for video pros that want to generate content without having to ever think about it or worry about it. We know that we have the opportunity and we know that the value that our users are getting in different tiers are very much benefiting from the ability to provide those tiers.
You will start to see us, we have, I said this, I'll say it again, we have a lot of headroom given the value that we have already shipped and the value we're shipping to continue to create new price tiers that are consistent with the value we're providing.
Keith, I mean, your question as well as David's answer was on the value. If you look at the business today and you look at the business momentum, the core creative pro and commercial subscriptions for core creative pro is a strength for the business. On the business, professional and consumer, the MAU increase is a strength for the business. In the enterprise, the creative and marketing is a strength for the business.
I know you're saying, hey, what happens when all, but I didn't want you to walk away saying the core commercial subscribers and new acquisitions is not there. To your point and David's point, with the value add, the ability to further price it with different tiers is better than it's ever been before. That's part of the reason why Firefly is so exciting for us.
Kash. Come on.
I had to go somewhere between Zelnick and Zukin. I just liked saying that. In fact, I was working on Express and I almost made a post about Zelnick and Zukin. I thought it was just cool. Maybe I'll get it one day. Thanks for hosting us.
We can help you make it.
Yeah, creative. You got to try to be creative. The high-end enterprise strategy, you're rock solid. You've got the Experience Cloud. You've got AI.
It looks like it's going to work really well, at least from what I can tell. I think what we've not really talked about in great detail is the low end of the creative market, where the perception and the risk exposure that Adobe has is greater than on the high end in the enterprise. Those cycles move a little quicker than the enterprise cycles. Rarely has a technology company gotten a good handle on the enterprise market and the consumer market. Yet we're at this point where AI could be the great leveler. It could cause you to be successful in both markets. It looks like just in the evolution, these markets are very, very becoming more and more different from each other. How do we get the assurance based on your assurance that you have what it takes to be equally adept?
Is it AI that's the great leveler that brings that low end of the market back to the position that you would like to be in? Or is there something else? Because the pricing and packaging and the tiering is a set of techniques that Adobe has adopted very successfully. It feels to me that that is not what it is all about just. There is something more innovative, potentially disruptive, lower price points, functionally different things that are happening in the low end of the market. How do you get a handle on it? Thank you so much.
Yeah, I mean, I think one of the things I should just rephrase the question. Okay. As, hey, tell us more about the business, professional, and consumer. In that particular segment, what's your sort of core strategy? Sorry. That's good. Very nicer than. Yeah. I interpreted that, yes.
I think two things, Cash, to really sort of internalize first. First is that it is, you're right, pricing, packaging, these things matter. There is a core strength that we have that we're going to continue to lean on, to use your words, in the lower end of the market, which is the data-driven operating model. I've said this a few times, I get a particularly good price on everything that Anil sells. We are not lacking for technology to really enable everything from tracking the journey to building more personalized content to activating more on social to doing all the work to bring that top of funnel and convert that top of funnel with all the analytics and those capabilities. That is a core strength of the business, has always been.
You wouldn't build a well over $10 billion B2C kind of business flow if you didn't have that core competency. Then on top of that, the thing that we now have that we haven't had historically, and this is a little bit of the point you're making in terms of maybe some of the things we missed, we didn't have the portfolio, freemium portfolio of web and mobile that we have today. In fact, we didn't even have that portfolio a year ago in the broad scheme of things. We had it in pockets. One big pocket was Acrobat. And we're seeing that massive benefit from that. Not only do we have the technology, but we have the history of actually actively driving that kind of broad-based proliferation. Now we have the products. Now we're going to layer that in.
There are two areas that we do that. One is, as Shantanu said, business, professional, and consumer, 650 million monthly active users. You can imagine that's a lot more people that use our products in any given moment. 400 billion actions of opening a document every given year. You can imagine that's an amazing insertion point that we can use to introduce them to creativity and productivity and the convergence of that. Also, as we look at it with the rise of conversational, conversational goes very fluidly from tell me something about this document to create an output I can share. All of that really fundamentally changes the ability. We have the core competency. We have the history of doing it. Now we have the products that we can mix into the mix.
We have one other success story that we do not talk about as much, which is Lightroom. In addition to Acrobat, when we were like, hey, we need this on the surface and the web and mobile and freemium, that has seen incredible success.
I think the assertion that I would make is that who understands the creative and productive community better? If in an AI-first world, that is going to change who has the technology, the distribution, and the applications to win in that market.
That is going to get further change from, I would say, the template-driven approach. That is where we like our chances.
Alex.
Hey, guys. Alex Zukin from Wolfe Research. I do not know if I can follow Cash's question quite so eloquently. I want to shove you maybe double down on that notion that you are talking about aspirational kind of double-digit growth.
Specifically around GenStudio and the digital experience portfolio, what is the aspirational growth there? Because it seems like with the amount of innovation that you guys have been delivering really for the past few years, but also unlocking a seemingly massive consumption opportunity and API opportunity with all the models and the tooling of the models, which I thought was a really great point. If you break down from the subsegments what the aspirational opportunity differential is around that growth, what is it? Should the experience business grow faster than the media business for a prolonged period of time? Because now we're at that we're beyond the seeding stage and we're kind of into the monetization phase. Help lay that out to us.
Because while the glass half may be empty, the question about the competitive narrative and the high and the low end is at least pertinent in the media side, it seems like in the other part of the business, you guys should be dominating.
I think the accelerations and then Anil should definitely add. I mean, I think the accelerants in those businesses were phases. To your point, I think the excitement around the third phase is greater than the other two. Let me tell you what I mean by that. I think first phase was everything about just digital marketing. How do you get people to do a website?
If you go back, ironically, and you look at the deck that Gloria prepared in 2009 when we talked about getting the content lifecycle, it was all about saying the content lifecycle, if we can connect the creative expression with the distribution and activation, that's going to be an unstoppable kind of thing. That was phase one. We grew that well. I think phase two was investing in this Adobe Experience Platform. Because if you do not have that Adobe Experience Platform, the 40 billion profiles, people do not understand how they are going to take all of that content personalization and make that happen. I think both of those were really fundamental building blocks. It takes time when you build these platforms that will stand the test of time.
I think to your point, AI is the accelerant that should make the need for that and the demand for that greater than it's ever been before. Because, I mean, James Quincey on Coke, he said, I would like the ability for my 2 billion drinks that I do every day to have a personalized piece of content on that. We're as excited about both of those coming together right now and AI being sort of that enabler to accelerate that business. Exactly to your point, we have to go execute against that opportunity. I think it's all really come together with a compelling strategy. GenStudio for performance marketing, I was a little bit of the product manager, as Anil would say, on that. I'm so passionate about that because it actually finally brings together all these building blocks.
You can provision and run GenStudio for performance marketing in a few hours. You can actually upload your campaign. You can provision it. You can run it in Meta and all that. I think that accelerant enterprise sales does not have the accelerant unless you also have that viral need. I would say we have the viral need right now, not only obvious, but enabled in terms of provisioning. Otherwise, enterprise sales, to your point, I mean, you know this, tends to be the everybody wants the big deals. We are like, no, we want, in addition to that, the incredible viral adoption. Let somebody use GenStudio in a minute. If they can create that Firefly model and do content production in a minute, that is the sort of flywheel that we think we have. I think AI has accelerated that.
That is why we're excited about these things coming together. To your point, the enterprise STAM should be larger. The value proposition should be clearer. The family of products that Anil talked about again, we came out with GenStudio for performance marketing to help with your ad spend. We came up with content production to help with your variants. We're coming up with social and the other things on the roadmap that he talked about. That is a family where the acceleration of product innovation on that should also be faster than it's ever been before.
Brent.
Thanks. Brent Thill with Jefferies. Anil, just when you look at that attach of customers that have over five products, I think it's like 7%. It's tiny. What is the unlock there? What helps? I have a quick one for Dan.
Just building on what Shantanu just said.
One of the big things that we're seeing now is there is one is the virality, exactly as we're getting GenStudio and other tools into the likes of AT&T and Lenovo and others. The other big thing that's happening is a recognition at the C level, the CMO, the CIO, saying, hey, this needs to be an enterprise platform. Just like every other enterprise category, whether it's ERP or HCM or every other category. It first started with a whole bunch of small companies. There was a lot of VC investment in VaRTech and so on and so forth. CMOs and people below the CMO made a lot of investments and so on. At some point in any enterprise category, there's enough scale and there's enough importance to the enterprise that the companies take a step back up.
At the C level, they say, this needs to be one platform so that we can actually get the efficiency as well as we can get a clear platform to build on. Now with us, we talk about we're an $8 billion enterprise business right now. We have the scale. We have the innovation and the market presence. I believe that's what's going to give us that acceleration.
Just on capital allocation, everyone appreciates the buyback. I mean, you've been in an M&A drought for four years. I think Frame.io was 2021. Many have said, hey, are you going to play a role in consolidating AI, helping out?
Right, you realize that.
Musk acquires a video AI company yesterday. What are your thoughts? Do you have any stronger conviction Google just stepped forward with a $30 billion deal today?
What are your thoughts on that? Do you want to take it?
We are constantly looking, Brent. If there are categories where we look at it, I mean, I would actually say a big picture, the stuff that we are doing in the creators, next generation creators, and what we are doing around business professional, I feel really good about our organic portfolio. There will be stuff around the edges that we might add associated with this technology. It feels really good in terms of the core technology that we have. I think on the marketing side, and then I will have Anil and Dan perhaps add, there are other categories that are adjacent. Again, we ask ourselves the question of, hey, can we accelerate with our organic growth faster? Because we, in general, like that.
What other AI stuff is out there that we feel like can accelerate beyond us? We haven't seen that much. I mean, when we look at even what we have roadmapped on the agentic stuff, yes, we will look. We want to continue to look. I mean, it's a way that we've driven growth. I actually feel really good about the stuff that we have right now to organically drive growth as well. That is the way I would do it. No, I think that's well said.
One of the impediments over the last couple of years, and it will not be a surprise to people in this room, when you think about the portfolio of private companies out there that are likely to never get public, the valuation expectations on those portfolio of companies tends to limit the surface area of companies that you can explore with. As I think the market begins to reset what that equilibrium is around valuation, I think there is an opportunity in those areas where it is accretive to the strategy of the company. We want to accelerate a leadership position. You now can potentially have a larger surface area of companies to engage with. There is a market context as well to this that is evolving as well.
Maybe I should have clarified as well, just Brent. I did not know whether you were talking about the scale, right?
There's some. In other words, OK. OK. We have an appetite across all businesses. Again, I didn't know what scale you were talking about as it related to that question. I probably answered it with the sort of lens of scale that we had done in the past that we had tried to do as opposed to the ones that we were really excited about in both businesses, where they are a bunch, to your point. I don't think those are going to be sustainable businesses as standalone companies.
All right, I think we've got time for one more question. I'll give it to Mark.
Thank you. Mark Murphy with JPMorgan. David, I can't help but notice you're speaking to credit consumption much more positively than I recall in the recent past.
It just makes me wonder, what are you seeing with the Firefly video model in this GA phase? Should we assume from your comments that these users, I think you said 90% of them are using it, are they burning through the credits faster than they were with the Firefly image model? I think they're getting 2,000 credits on the standard plan. If they are, where should we extrapolate this going forward? I think that would be happening with five-second videos. It's not a very long video. It's not full resolution. Can you maybe just let us know what are you seeing there? Is this going to open the door for plans? I think you have a $10 plan. You have a $30 a month plan. Is there something coming that can really surprise us on the video consumption? Yeah.
Yeah, it's a great question. By the way, we have a 10, a 30, and we've introduced a 200. We obviously are looking at different tiers to the point of the conversation we had earlier around with Creative Cloud too. The foundation of the energy and the excitement in this really comes from the fact that the model proliferation is getting much more ready for creative production. When you are generating an image, you can generate a number of images. You can do generative fill in Photoshop. There's a certain inherent value to that generation that's very different when you get into video production. Let me give you a few examples. First of all, generating a video. We saw that you can generate a five-second clip. Now, are you generating that at 1080p, 720p, 540p, or are you generating at 4K?
We have 4K capabilities coming out. Even image generation, right? We have work going on with an ultra model. Because at some point, to get precise photorealistic human and organic composition, you need those models to be bigger, and you need them to work harder for you. That is not going to be the same number of creations. With video, are you trying to generate a five-second video, or are you trying to drag in a script and generate the entire script? How do you start to really imagine orchestrating a 30-second ad spot that is built 100% with generative capabilities? Those kinds of things are really turning the flywheel. This morning also, we showed, and I am really excited about this in Firefly Services, we showed the ability to reform and reframe videos.
One of the most expensive parts of the content supply chain is to take a video, and now you have to recut it for these different aspect ratios and frame sizes. Oh, and by the way, you've got voice. You've got video, and you want to translate the voice but keep the audio track and the music playing. You have these Mogarts, these basically animated overlays of text that come in and graphics that come in. How do you resize all of that stuff? Generative AI and what we do now in Firefly Services does all that for you, but it's more consumptive in terms of credits. As these mature and as we hit this inflection point of all of these models coming in, we see a lot more consumption happening.
We're at the early stages of th is, but we're very excited about what it could mean for us.
Since it's the last question, I wanted to again express my thanks before I handed it over to Steve for all of you who came today. We appreciate the engagement. I know I speak for all of Adobe when we say we're incredibly, incredibly excited about the innovation roadmap, the opportunity ahead of us. I'm extremely proud of how the team has embraced AI, delivered this incredible innovation that you've seen today, and continue to absolutely delight the customer groups that we serve. Thank you. With that, I'll hand it back to you, Steve.
Yes, thank you, everybody, for coming. That concludes the event. We hope you enjoy the rest of Summit for those that are staying. Thank you.