The Digital Media segment saw revenue increase to $3.91 billion, an 11% increase compared to $3.51 billion in the same quarter last year, driven by strong growth in both Creative Cloud and Document Cloud.

The Digital Experience segment revenue increased to $1.33 billion, a 9% increase compared to $1.22 billion in the same quarter last year, driven by increased subscription revenue.

The company is focused on delivering product innovation and driving adoption and usage of AI-powered solutions, as evidenced by the introduction of Acrobat AI Assistant and AI features in Creative Cloud apps.

The company continues to utilize a data-driven operating model to raise awareness of products, drive new customer acquisition, engagement and retention, and optimize customer journeys.

The company is focused on growing recurring and predictable revenue streams through subscription-based offerings, with a shift away from perpetual licensing.

The company continues to invest in research and development and sales and marketing to support long-term growth initiatives.

The company acknowledges exposure to risks from the evolving macroeconomic environment, including global inflation, interest rates, and geopolitical pressures.

The company acknowledges the evolving AI regulatory environment may increase research and development costs and liability related to AI use.

The company acknowledges the risk of security incidents, data breaches, and other cyber incidents which may harm reputation and materially affect the business.

The company acknowledges that the markets for its products, services and solutions are rapidly evolving and intensely competitive.

The company expects to face more competition as AI continues to be integrated into the markets in which it competes, including from companies offering text-to-image generative AI technology.

The company's future success depends on its continued ability to effectively appeal to businesses and consumers, and new industry standards and evolving distribution models may create downward pressure on pricing and gross margins.

The cost of revenue increased to $598 million, a 5% increase compared to $572 million in the same quarter last year, primarily due to increases in hosting services and data center costs.

Operating expenses increased to $2.83 billion, an 8% increase compared to $2.62 billion in the same quarter last year, driven by increased investments in research and development and sales and marketing.

The company is focused on managing costs and improving efficiency across its operations, including through the use of a data-driven operating model.

The company continues to invest in research and development, including the recruiting and hiring of software developers, to remain competitive in the marketplace.

The company is focused on putting the power of AI in the hands of creators and is doing so in ways that it believes are responsible.

The company introduced Acrobat AI Assistant, a new generative AI-powered product designed to deliver insights and enhance productivity through interactive document experiences.

The company continues to repurchase shares to return value to stockholders and minimize dilution from stock issuances, with $4.5 billion in prepayments made under accelerated share repurchase agreements during the six months ended May 31, 2024.

The company issued $2 billion of senior notes in April 2024, with proceeds used for general corporate purposes.

The company may use cash reserves to strategically acquire companies, products or technologies that are complementary to its business.

The filing does not contain specific information regarding environmental, social or governance initiatives.

The company acknowledges exposure to risks from the evolving macroeconomic environment, including global inflation, interest rates, and geopolitical pressures.

The company acknowledges the evolving regulatory landscape, including AI regulation and data privacy laws, may increase costs and liability.

The company acknowledges that the markets for its products, services and solutions are rapidly evolving and intensely competitive.