Adobe Inc. (NASDAQ:ADBE) Q2 2019 Earnings Conference Call Transcript
Jun 18, 2019 • 05:00 pm ET
Thank you. (Operator Instructions) We'll take our first question from Brent Thill with Jefferies. Please go ahead.
Thanks. Good afternoon. Shan, just on Magento and Marketo, just curious if you could give us your updated thoughts on the integration? How you're doing in the field? And some of the customer traction on both those acquisitions, that would be helpful? Thank you.
Sure, Brent. Both of them are actually big picture going really well. We have, as you saw, started to integrate the products, the delivery of the Adobe Commerce Cloud that was based on Magento Commerce. We announced some good partnerships there as well as it relates to what we're doing with Amazon to allow multiple small and medium businesses to be able to deliver their storefronts based on this combined technology. We did some good work as it related to integration between the Adobe Experience Manager as well as the Adobe Commerce Cloud, so you can now have in a single digital foundation the ability to do web content management, analytics, as well as commerce. So product integration with Magento is going well.
I think on the market -- go-to-market efforts, the enterprise motion that we have, which is clearly a strength of Adobe, we are putting the Magento solutions through that enterprise go-to-market motion, we've also done a good job, I think, of integrating the mid-market, small and medium business, whatever you want to call it of Magento and Marketo, because the combination of both of them give us a little bit more heft in the marketplace.
And on Marketo as well, I mean, it's clearly a fabulous SaaS platform for engagement as it relates to B2B marketing, the focus there has been on both integration with Adobe Analytics as well as making sure that the combination of Campaign and Marketo will be the best B2E, which is what we call sort of the business to everyone engagement platform. So pleased with it, results are good, continued focus and I think that's one of the reasons why we are aligning the organizations more rapidly to make sure that we get the appropriate alignment.
And we'll take our next question from Jennifer Lowe with UBS. Please go ahead.
Great. Thank you. It was nice to see the net new ARR out-performance this quarter. So it sounds like it was a few different things there, but just any more color on what drove the upside would be great. In particular, I know last quarter there were some unusual items in there. I just want to check was there anything unusual this quarter, maybe just around it out as we think about seasonality into Q3, it looks like the guide implies a bit more seasonality than what we saw last year, anything to keep in mind there as well? Thanks.
Yeah. I think big picture, Jennifer, Digital Media, we continue to do really well. We had, as you point out, a great Q2 achieving I think $406 million in net