Adobe Inc. (NASDAQ:ADBE) Q3 2019 Earnings Conference Call - Final Transcript

Sep 17, 2019 • 05:00 pm ET

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Adobe Inc. (NASDAQ:ADBE) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
Shantanu Narayen

our strategy with the Adobe Experience Platform is that we want to actually augment the analytics capability, the Audience Manager capability with what we are doing with these new services as well as the real-time CDP in the market. We're really excited about the multiple installations that we have as well as the interest globally. You know you can argue we were maybe a tad aggressive Keith, about the timing adoption, but this phase shift that we've seen in no way diminishes the magnitude of the opportunity or my belief in the lead that we have. And so as I think about the business, as we think about the targets, we are leading in this particular category we saw as I said some delays in the bookings, but that has in no way changed our excitement and optimism about the business. hopefully that helps to give you some color associated with each of the businesses.

The last thing I would say is that we talked about Marketo specifically, and there I would say our natural inclination was to perhaps focus our aspirations on the enterprise business, serve our existing customers that's going well. Mid-market continues to be a huge growth opportunity. We have the leading product in that space and much like we drove growth in the Magento business, our focus will now be the same on Magento as well as Marketo. And so we've created a unified organization it's going to drive a line demand generation, customer support. We have the right individuals in the field, it's organized the right way. So I'm excited about that as well. I know I was a little long, but I thought I'd just give you color associated with all of those businesses and again the Adobe Experience Platform that is really our platform that deals with future of what we are doing around analytic services, what we are doing around campaigns services. And so when bookings are light you certainly see some impact on consulting as well.

Executive
John Murphy

And Keith this tends to your question on investments. You know they've been factored into the targets that we issued for Q4. And as you can see in those targets, we continue to expand our operating margin as we had expected through the year, as we said the second half would accelerate expansion. So the investments are embedded in those targets. And as Shantanu said, we're focused on really driving the mid-market motion like we did with Magento.

Analyst
Keith Weiss

Excellent. Thank you guys.

Operator
Operator

Next we'll hear from Kirk Materne with Evercore ISI.

Analyst
Kirk Materne

Thanks very much. Maybe I'll flip over to the Digital Media side of the business, which also had a really strong quarter. Shantanu, maybe [Indecipherable] stood out to me was actually some of the subs growth in the emerging markets. And can you just provide a little bit more detail on that sort of -- how do you feel like you're monetizing those opportunities? How that's coming along? And maybe just talk a little