ADBEAdobe Inc.

“Dan, I think, talked about a $250 million book of business for Firefly, that didn't exist a few years ago. As we talk about what's happening with GenStudio, 30% growth, AEP and apps. And I would venture to say, Keith, that we should hopefully see what we had identified as the AI-first sort of book of business. That tripled, but that should be our next billion-dollar business.”

“it's about a $450 million book of business. And maybe just to talk a little bit about that, if you had -- if you take out the stock business like-for-like, instead of the 10.9% growth, it would have been approximately 11.2% growth.”

“According to Adobe Digital Insights, during the 2025 holiday season, traffic to retail sites from LLMs increased nearly 7x, bringing qualified referrals that convert 31% higher and generate 254% more revenue per visit.”

“Firefly ending ARR across Firefly app, Firefly credit packs and Firefly Enterprise exceeded $250 million.”

“Firefly momentum is strong with generative credit consumption growing over 45% quarter-over-quarter. While that growth is broad-based, generations are skewing toward higher-value modalities with video generative actions growing more than 8x year-over-year and audio generative actions doubling year-over-year, reflecting customers moving deeper into AI-assisted creation across the full creative process.”

“In Q1, we surpassed 850 million monthly active users of Acrobat, Creative Cloud, Express and Firefly, achieving 17% year-over-year growth, a clear indication that we have both strong usage and a foundation for monetization.”

“creative freemium MAU crossed 80 million, growing over 50% year-over-year and includes web and mobile versions of Firefly, Express, Premiere, Photoshop and Lightroom.”

“Our new AI-first offerings ending ARR more than tripled year-over-year, reflecting progress against this opportunity with individuals and enterprises alike.”

“Strong customer demand for our agentic web offerings with over 650 customer trials underway for Adobe LLM Optimizer, Sites Optimizer and Brand Concierge.”

“Accelerating momentum for Firefly Services and custom models as part of the GenStudio solution with over 2,500 custom models since launch”

“AI Assistant MAU doubled year-over-year and Express MAU tripled year-over-year. Express is now used in 99% of U.S. Fortune 500 companies.”

“In Q1, globally, we achieved over 30% year-over-year growth in AEP and apps as well as Adobe GenStudio ending ARR.”

“Continued adoption and momentum for AEP AI Assistant with 70% of all AEP customers using the agentic capabilities.”

“Firefly subscription and credit pack ending ARR grew 75% quarter-over-quarter.”

“In total, ARR from AI-first applications more than tripled year-over-year.”

“Firefly Enterprise new customer acquisition grew 50% year-over-year.”

“Acrobat AI Assistant ARR grew approximately 3x year-over-year”

“Firefly Foundry enables the world's largest marketing teams and media companies to build private, deeply tuned AI models trained on their own IP. Unlike generic AI models, Firefly Foundry gives enterprises a commercially safe model that understands and is able to accurately generate their branded assets.”

“In Q1, we experienced a greater-than-anticipated decline in our traditional stand-alone stock book of business. While this is happening faster than expected, our strategy is to provide customers with the choice to use stock or generative AI offerings for creative and marketing workflows.”

“our traditional stock business saw a steeper decline than we expected. This shift is playing out more quickly than we had planned for, and our focus remains on giving customers meaningful choice between stock and generative AI as they build their creative and marketing workflows.”

“In Q1, we have launched Acrobat and Express for ChatGPT, significantly expanding the reach of our creativity and productivity workflows. You can expect to see similar integrations into Copilot, Claude and Gemini as those platforms support integrated application experiences.”

“Adobe Brand Concierge is an AI-first application, enabling businesses to configure and manage agentic AI experiences on their websites and mobile apps to guide consumers from exploration to purchase decisions using immersive and conversational experiences.”

“In Q1, we delivered breakthrough innovations, enabling GenStudio-created assets to flow directly into activation workflows across the Adobe stack and a broad ecosystem of advertising platforms, including Amazon Ads, Google, LinkedIn and Meta.”

“Acrobat AI Assistant provides users conversational experiences that help them comprehend information faster and more accurately with an individual PDF or across documents in the PDF Space.”

“AI remains a tailwind for our enterprise business, enabling us to deliver Creative & Marketing Professionals subscription revenue of $4.39 billion in Q1, growing 11% year-over-year.”

“In Q1, we introduced new AEP agents along with expanded agent orchestrator capabilities now available to all AEP customers via a try-and-buy program.”

“Adobe LLM Optimizer enables enterprises to enhance the discoverability of their websites by LLMs and significantly increase their organic traffic.”

“Illustrator expanded its generative design capabilities with models from OpenAI, Ideogram and Google to support frequent vector workflows.”

“Premiere added AI Object Masks, which quickly became one of the most used AI features in the application.”

“AI usage continues to grow quickly, as measured through record levels of generative credit consumption.”

“Users can generate with over 30 industry-leading models, including Adobe, Google and OpenAI.”

“Partnership in the OpenAI initiative to enable brands to create ads for ChatGPT.”

“Photoshop launched a conversational editing experience in ChatGPT.”

“as we think about the growth algorithm for growth, we're going to see more traffic to adobe.com. We continue to see record traffic levels, traffic continues to grow very nicely. And how we route that traffic to freemium offers is going to be really the evolution that Shantanu is talking about in terms of the change that we should expect to see. And as that traffic goes to these new offers, it's just going to take a little time for them to use the product, to hit the paywalls and then translate out.”

“there are going to be 2 or 3 really large language models that actually succeed. All of these individual models that exist, small model companies in 1 part of a media ecosystem, I just don't see how long term they survive because people aren't interested in just the model, they're interested in the workflow.”

“At Adobe, we are targeting business professionals and consumers and creative and marketing professionals through differentiated AI-infused and AI-first product offerings across various routes to market and different monetization models.”

“We're ruthlessly focused on monthly active users as an indicator of adoption and success for Acrobat and Express, Creative Cloud applications and Adobe Firefly across different surfaces, including desktop, web, mobile and LLM platforms.”

“In addition to Windows, Mac, iOS, Android, Chrome and Edge, we intend to integrate with leading AI platforms such as Anthropic, Google, Microsoft, NVIDIA and OpenAI, providing customers with access, choice and flexibility.”

“Agentic AI will further enable outcome-focused enterprise workflows as customers look beyond speed to elevate creative differentiation, brand governance and personalized experiences across channels.”

“Companies must ensure their brands remain front and center, even as consumers are increasingly discovering new information, engaging with businesses and buying products through LLMs and agents.”

“we now track tokens and token usage within the company, and it's nice to see that token usage increase because that means that our AI products are seeing great value associated with it”

“Firefly Enterprise, the combination of Firefly Services and Firefly Foundry is empowering the world's largest brands to scale content production to unprecedented levels.”

“Driving this momentum were Acrobat and Express, Creative Cloud Pro, overall strength in the CXO enterprise solutions as well as in our AI-first applications.”

“Firefly, an all-in-one creative AI studio, is the right tool for the next generation of creators and creative professionals.”

“Our mission to empower everyone to create represents an even larger opportunity in the AI era.”