Dive Brief:
- Adobe expects demand for digital CX tools to grow rapidly in the coming years, and it will invest in expanding its Adobe Experience Cloud solution suite to match, executives said during a Q4 2023 earnings call Wednesday.
- Adobe’s Digital Experience segment took in nearly $1.3 billion in revenue during the quarter, contributing significantly to Adobe’s first $5 billion-plus quarter, according to an earnings release. Digital Experience revenue was up 10% year-over-year, with subscription revenue specifically up 12%.
- The vendor aims to maintain this momentum with accelerated investments in AI assistants, a reimagined experience for Experience Cloud applications and new generative AI-powered solutions, according to Anil Chakravarthy, president of digital experience business at Adobe.
Dive Insight:
Companies across the B2B and B2C landscape are focusing on building better online experiences, according to Chakravarthy. Adobe is tapping into this demand to fuel its growth with next-generation enhancements to its Experience Cloud.
“Digital remains a massive tailwind as content demand and consumption continues to grow and businesses of all sizes are focused on transforming their customer experiences,” said CEO Shantanu Narayen during the earnings call. “Adobe is incredibly well positioned to lead and capitalize on this opportunity.”
Conversations with some of Adobe’s largest customers, including Marriott, Verizon and Sony, have confirmed that C-level executives are planning to “prioritize experience-led growth as a critical business imperative, despite ongoing budget scrutiny,” Chakravarthy said.
“We are really excited about this massive multiyear opportunity,” he said. “If we look at any of our enterprise customers around the world, everybody recognizes the long-term imperative of transforming their customer experiences.”
Generative AI will be one of Adobe’s key investments, according to Chakravarthy. The company plans to introduce an AI assistant that will boost productivity and offer a conversational, simplified interface.
Chakravarthy also referenced the new Adobe Experience Manager Sites tool, which includes generative AI-powered insights designed to aid personalization, as an example of the AI-powered updates the company has planned for its broader product portfolio.
“Generative AI accelerates our pace of innovation across the Experience Cloud portfolio, enabling us to build on our capabilities to deliver personalized digital experiences,” Chakravarthy said.
