00:00 Speaker A
The stock is up today, Eneal, but it’s down about 20% this year. And I I think you know, Eneal, there are just plenty of investors who are concerned, Eneal, and maybe even skeptical. They think, you know what, Adobe might not be an AI winner. It may turn out that you are going to be disrupted by AI ultimately. And I I guess the key question I’m driving at an is, you know, what is Adobe’s real value add here in this era of AI? In an era when we know just a lot more folks are increasingly going to use these free gen AI models to create content.
00:34 Aneel
Yeah, the way we think of the where the market is, you know, software is going through a major transformation from software as a service to agentic software powered by AI. As you know, Adobe went through a similar transformation several years ago where we led it going from onprem software to software as a service and we obviously navigated that transformation extremely successfully. We believe that we’re going to do the same thing now with the gentic software. When you think of what customers actually need, they want the apps that they are very familiar with, they’re getting a lot of value from. They want those apps to become better with AI, like Photoshop uh integrated with chat GPT for example that we announced yesterday, being able to bring those kinds of AI capabilities right into the tools and the and the software apps that they are so familiar with and that they get so much value from. That is I believe the uh unique advantage that Adobe has. And so as we think of how this plays out, I mean, you know, look, since uh even all of this AI was announced just over the last year, we just uh reported record results and we grew our annual recurring revenue over 11%. We’re guiding to over 10% growth for next year. So we believe that from a customer perspective, the answer is already very clear. They want both. They want both software and AI together in the same context of where they’re actually using these apps and uh ultimately the market will will come to see that value as well.