David Wadhwani
President, Digital Media Business at Adobe
Thanks, Shantanu, and hello everyone. Adobe products have always been the solution of choice for the world's creators, whether they're designers, photographers, filmmakers or illustrators. Today, the explosion of the creator economy is enabling even more individuals, solopreneurs and small business owners to express themselves in creative ways, whether it's a hobby, a side hustle or a full time job. Every creator and business is re-imagining how they build their brand and engage their audiences in a digital-first world, underscoring the rapidly growing demand for content and creativity.
Adobe Creative Cloud offers the most comprehensive portfolio of products and services across every creative category, including imaging, photography, design, video and 3D and immersive. We continue to invest across our core flagship products, including a heavy dose of new AI features. As demand for content increases, content creators are looking to Adobe to help them work together efficiently. We're responding by integrating collaboration capabilities directly into our flagship applications that enable creative teams to collaborate with each other and with stakeholders.
As communicators have become a growing part of our Creative Cloud customer base, we've expanded our offering to include Adobe Express, our new template-based easy to use web and mobile product. Express creates an opportunity to serve a broader base of communicators who need lightweight task-based tools to create everything from social media posts, logos and flyers for their small businesses to party invitations and posters for their personal needs. Real estate entrepreneur, Chrishell Stause is a great example of a social media influencer who is leveraging Adobe Express to transform how she markets her properties and engages her followers. She is one of millions of users promoting their products and services with Adobe Express.
In Q2, we achieved net new Creative Cloud ARR of $357 million and revenue of $2.61 billion, which grew 14% year-over-year. Q2 highlights include continued innovation in the imaging category. This quarter we launched powerful new capabilities in Photoshop, including Photo Restoration Neural Filter that detects and restores damaged photos in seconds. Neural Filters are one of Photoshop's most used AI-powered features. They have now been used by millions of users and applied to hundreds of millions of images. We're also delivering enhancements to Photoshop on the web, including new editing features, support for mobile browsers and integrated learning content.
Video production also continues to explode and Premiere Pro remains a leader in video creation, editing and now collaboration with Frame.io. The new integration between Frame and Premiere Pro and After Effects is streamlining review and collaboration workflows across stakeholders. Frame had another strong quarter with new customer wins, including Epic Games and NBC Universal, which are using it to manage their video content supply chain, something that Anil will talk more about in a few minutes.
We're also seeing the emergence of new categories like 3D, as customer demand for metaverse-ready content continues to increase. Substance 3D had its strongest Q2 ever, as customers like HUGO BOSS, Mattel and Unity rely on it to deliver immersive experiences across fashion, gaming and e-commerce. We continue to rapidly innovate in this space, including delivering native Apple hardware support for Painter, Designer and Sampler, enabling creators to work faster than ever before. The Substance team also delivered a new SDK for developers who want to integrate 3D capabilities into their applications.
And finally, we're excited about the momentum we're seeing for Adobe Express, with millions of monthly active users and strong growth in traffic and new users in Q2. We continue to bring the magic of Photoshop imaging, Premier video and Acrobat PDF capabilities like background removal, QR code generation, video resizing and PDF editing to Express. And we released our new Content Scheduler feature, thanks to our recent acquisition of ContentCal, allowing creators to quickly create, preview, schedule and publish social media content.
We're also excited to kick off our Express Your Brand partnership with Meta, which will enable over 200 million businesses to grow their online presence using Adobe Express. And our product-led growth strategy allows us to use millions of data points to continuously test, learn and optimize the entire Express experience from search to export. Adobe Express recently received the Editor's Choice Award on the App Store recognizing top apps for design, functionality, and performance. We're very excited about the strong demand for Creative Cloud offerings globally, driven by acquisition, engagement and retention from our data-driven operating model across individuals, SMBs and enterprises. Key enterprise customer wins include Activision, Bertelsmann, Hasbro, Honda Motor, Daimler AG, NCSOFT, Services Australia, State of California and WPP.
In our Document Cloud business, digital document workflows are automating manual paper processes across our personal and professional lives. Whether it's a legal contract, invoice or school permission slip, we now need to scan, edit, share and sign from anywhere. Adobe Document Cloud offers the most comprehensive intuitive tools for document productivity across every device and platform. In education, the University of East London is adopting Document Cloud to manage workflows for enrolling 17,000 students from 135 countries. In financial services, TSB Bank is transforming the online banking experience by enabling customers to quickly and securely complete common tasks like loan applications that could previously only be done in branches.
In Q2, we achieved net new Document Cloud ARR of $107 million and record revenue of $595 million, which grew 28% year-over-year. Q2 highlights include strong growth in monthly active users across desktop, mobile and web. The rising volume of search traffic for Acrobat verbs remains a productive funnel to Acrobat Web, which surpassed 50 million monthly active users in Q2, more than doubling year-over-year. Mobile app momentum remains strong with billions of PDFs opened in Acrobat Mobile and hundreds of millions of cumulative Adobe Scan installs.
Acrobat and Adobe Sign integration continues to drive strong demand for Adobe Sign, as users increasingly send PDFs for signature directly from the Unified Acrobat Experience. Acrobat and Adobe Express integrations now give hundreds of millions of Acrobat users the ability to embed customized templates and make their PDFs visually stunning. And Acrobat and Sign APIs are thriving, as customers increasingly customize, integrate and automate Document Services.
We are thrilled with the momentum we see in the Acrobat ecosystem and our business performance across routes to market and customer segments, including key enterprise customer wins with Automatic Data Processing, Duke Energy, Quanta Services and US Bank. We continue to see strong demand for our products in the second half of FY '22. We'll continue to win in the Digital Media business through product innovation across Creative Cloud and Document Cloud, which are targeting a broad growing base of customers. Our tremendous scale, consistent marketing investments, proven data-driven operating model and new product-led growth initiatives are accelerating our momentum across our new and established businesses.
I'll now pass it to Anil.
