INTU - Earnings call transcript Q3 2020

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Operator

Good afternoon. My name is Latif and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit’s Third Quarter Fiscal Year 2020 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. Instructions]. [Operator

will President call Watkins? of I Watkins, to turn Vice Intuit’s Investor now that, over the Kim With Relations. Ms.

Kim Watkins

Latif. am welcome XXXX and Clatterbuck, our Sasan Good third Michelle Thanks, fiscal quarter Goodarzi; to and conference with here Intuit��s I CFO. Intuit’s CEO, call. afternoon

that from Intuit’s are we of a Before everyone factors I our results include will that like would remarks start, cause to number materially differ forward-looking expectations. remind could to our statements. There

the in fiscal risks release these other about more learn our for can earlier issued XX-K SEC afternoon, XXXX press this You we our filings. Form and

All intuit.com. the Investor We of any Relations at obligation available no website update to Intuit’s these documents assume forward-looking are page on statement. of

a of non-GAAP basis. Some in presented numbers the these remarks on are

the and numbers release. ends. non-GAAP and be reconciled business have supplemental call our current in growth refer prepared and financial period GAAP our remarks otherwise and associated Unless rates metrics. versus to will to comparable year the website of press period prior rates available after worldwide copy the all information business noted, refer A metrics on growth this comparable today’s the We

to And turn with will call the that, over I Sasan.

Sasan Goodarzi

strategy talking I'll for playbook in in and term context in downturn to highlight our topics context responded put of joining results Thanks, Then trends of our by to and global business. to cover longer how leading outlook start results long-term our pandemic. quarter, sharing our you today. in all thanks I'll performance share to our Kim, for the understand on the with I'm recent going for to and help quarter we've about and customers, us performance. pandemic call a you four today's in COVID-XX our by the employees, the these accelerate our finish of our

of pandemic our response created the to lives. At start our along to crisis onset changed team four have the the daily widespread an drive shelter-in-place enterprise streams. where initiatives uncertainty, Let's pandemic, unprecedented with work with we

This to employees and safe number our continue been has one and will First, our keeping healthy. priority. be

Second, to deliver ensuring and that for effectively our business the we customers. continue run

work-from-home workforce Third, our our transitioned and even we proud where more this workforce employees how fourth, and adapted even communities seamlessly and the person live we of to of customers, supporting grown has partners, sudden I'm the change our of operate. the environment. how commitment our how proud a keeping around uncertainty, our to stronger. world And engaged our XX,XXX face employees’ productive. to and in customers I'm

facing to this innovate inspired The to small and pandemic. during apply challenges consumers businesses difficult help platform and to speed caused problems capabilities by this several have our solve time with teams

a small aid get let relief. result, to examples me of and access consumers As businesses helping how share we're three and

help the the the week required in tax the First, donate with helped we to announcement, to billions partnership not IRS stimulus quickly file in payments time stimulus Americans introduced stimulus We're IRS more to money. their than easily register proud a IRS. offerings and to XX in with return to less disburse our dollars IRS million of expertise three tools get than Americans. free following a to registration These

code. on uses tool into is based complexity of quickly delivering pages easy-to-understand based recommendation. convert the the CARES distill the of This new personalized Aid engineering, experience businesses right of a to Act which is and simplify on we artificial the programs of Second, by launched knowledge same and actionable used an TurboTax it user to tax to Assist hundreds simplify the Intuit the relief intelligence eligibility. Intuit process funding to connecting Assist small Aid

PPP to from Third, million over of loans customers Program small improved Capital. to the $XXX available make QuickBooks business or helped May as of Paycheck XXth, Intuit Protection

approximately team $XX,XXX, simplify developed of this the businesses loans very to We've to small businesses rapidly helped process loan access small help program. loan to an automate The approximately average PPP the approximately a XX,XXX and application and solution technology during access employees offerings new, testament on to help These will unique our ways to the platform our are keeping payroll. to we continue need. of innovative to XXX,XXX capabilities, up time this find customers and with

the part the on and of when beginning great the results. taxpayers the negatively grew tax Through At turning deadline of fiscal momentum the revenue real. continuation the saw of we Now, performance local the and extension half filing shelter-in-place third businesses to same built third directive of mid-March. a XX%. pandemic the of IRS The impacted time, quarter small impact is year, the in we quarter, during first first

As a X% declined the total in quarter. result, revenue our

of season, Group fiscal software July into reflecting the me starting on and do later detail down XX awareness growth. it later deadline is performing timing assisted quarter category XX% to the during decline from notably Based and third leader we're the driving Let Consumer category go quarter. April extension our how the latest in Group. returns more filing data, category XXth tax IRS played revenue are X.X%, as yourself the total with better in tax July the The Consumer than resulting out, the filings millions IRS with of filing tax has the XXth shifted of in The to deadline.

is e-files result. return, data. Through are encouraged and assisted XX.X%. returns to this So down individuals this year X.X% filings Because includes prepared not May data self e-files down are X, we for to comparable a shows required IRS up data e-file not usually X.X% stimulus prior tax with by it total file

the expected due also higher May those the have complex a April and balance the customers data we're with most with of Xth returns Therefore, our majority indicates value during of As keeping file. yet proud two good where track and TurboTax of on our progress of with so last online far season. and share about ARPC the we us the stand months feel

well for are innovation accelerating strategy the and remainder season. our the positioned Our is of We're working.

self-employed segments making fast-growing We're including Latinx, with investments. customers progress on serving and under-penetrated

focused and customers these to on the through given additional for confidence access interact a expert. and lineup has on Live to with TurboTax the increasing pricing an and when of are seeing product customer we're experience, run the to retention experiments season experts with The both us improve future. also extension positive impact the We opportunity conversion

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recent the business. Let me share our in some of trends

the a new within acquisition half customer XX the approximately online ago. points half by second base versus the of quarter customer decelerated X the first versus year existing QuickBooks decreased points During and retention

We Business base Online even have ARPC experienced continue impact. QuickBooks customer an in Small the to grow year fiscal and within offerings to greater XXXX. services expect The

half revenue the running the in Similarly, growing year-over-year after through payroll quarter. of after decreased mid-March, after of XX% second of in during XX% These companies year-over-year Within the payment companies future. higher payroll approximately second payroll the quarter. could during increase an year-over-year example, our grew the flat half was online For the of trends XX% during and mid-March, was charge number number and year-over-year the approximately half lower of offering paid result XX% volume workers workers mid-March, through through flat running year-over-year total of the quarter. the second paid attrition

to Despite near visibility limited XXXX ever and are growth we inspired more prosperity, in term, than achieve reputation our goals.

anyone the and reminder, at points double improve prosperity success rate our rate on household savings a goals benchmark As businesses for by XX than platform. are our of small a better

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Michelle. hand over it Now, me to let

Michelle Clatterbuck

then times the financial this we're I'll Good using thoughts Sasan. the to an playbook overview Thanks, and our of my economic adding during afternoon, quarter. everyone. on run results business start challenging provide these by

through tough in the These have a a position times to from before we've and customers principles execution designed a As our than began. for Sasan principles operating both downturn. help accelerate it developed in downturn stronger and in future economic of and shared, emerge when a been Intuit our are playbook

over is and decisions. principles control managing discretionary as what on what carefully three variable roughly this deliver we spending Intuit’s expenses those all and hiring time. to controlling expense base focusing quarters of including results, such in spend, bottom-line scrutinizing can we of We're environment, travel, marketing can, One is

turn Let results. me to now our

quarter, quarter, followed through of the slowdown of As momentum in in half third continuation beginning we mid-March. strong the a a mentioned, the second business we Sasan by saw first the built our during

non-GAAP XXXX billion of income XX% an down X% of operating diluted share we income the revenue a decrease; decrease. of third XX% fiscal GAAP year-over-year; earnings billion, of a share $X.XX, per a XX% quarter $X and earnings delivered of decrease; For of billion, per operating GAAP decrease; $X.X non-GAAP $X.X $X.XX, diluted XX%

the Consumer the quarter IRS shifting to third is quarter. to This Turning tax the which the segments, reflects business fourth in third of was the the deadline $X.X out quarter. billion filing decline into XXth revenue Group down XX% of delay revenue July and

season where faster season share. these or pleased know and trends seen good category the Online’s we professional We're the accountants. consumer way, we've more the season category as gain filing has the with Either tax completed will to to with continues revenues still a about we the tax tax choose extension. to quarter to assisted we two feel With again go of more it do-it-yourself than in XX% than and timing to-date this expect And on what for continue DIY share reflecting consumers the decade. whether if in stand it's in grow deadlines the an months impact to by third Group, TurboTax Strategic of filings declined delayed difficult will file Partner

driven by and We Self-Employed third grew revenue XX%. quarter, of growth the Business XX% Small Online Group revenue during Ecosystem

connect the grow and focus the core, within ecosystem, to globally. Self-Employed Business and strategic is Small Our expand

fiscal effective lesser grow driven customer QuickBooks revenue growth, shift. to a mix Online prices, by and core, in mainly Starting grew accounting XX% higher QX, with the extent,

to and grow of subscriber customer although During we in the of decline, that do customers. our Online the impact among ARPC base XXXX. QuickBooks expect during both mind second saw half pace retention quarter, and there lower year revenue, new accounting both is the to lagging ARPC fiscal a we especially Keep acquisition

the revenue to during from ecosystem. to time in revenue services capital, payroll per Second monthly Online of employee a we continued we payments, reflects Within and QX. volume Within one-third growth to from offerings. includes see is XX% focus customers. payroll, is subscription along mix online continue revenue in from generated on the our connecting and grew monthly tracking, service quarter fees. customer increase two-thirds generated an fees payments, fiscal full with tailwinds growth shift payroll which revenue continued Roughly for charge

These companies leading the half lower quarter in second the offerings ran revenue future. and During result Fewer volume attrition for payroll. these decelerated. and the fewer paid were of workers indicators higher in could charge

revenue, Total added earlier online fiscal grew year. reflecting Ecosystem international ARPC Third, fiscal to subscriber of and during over in expanding revenue Online our QX. the progress again, globally growth growth the XX%

and future. the revenue in the growth sales momentum in reflecting slowed this the in declined mid Desktop Desktop sharply, This third offset by However, retail could and quarter. to QuickBooks through has was Ecosystem Enterprise growth. declined units in X% decelerating revenue lower revenue direct beginning channels resolve mid-March. Desktop single-digit

half during single-digits quarter Desktop paid volume XX% over second the the nearly a quarter offering in were payroll in payments workers versus just declined the second half half growth quarter. mid the desktop the our year of to mid-March. of the during This Within XX% ago. through compares first of charge growth fewer the

shared, Protection We're approved our QuickBooks sheet a we're Capital. loans helping expect loans revenue businesses we with SBA from As Program from portion to an Paycheck the quarter. small funding immaterial obtain during these on and and is in Intuit partnership these balance hold these don't loans. was working through We to directly loans the bank of also

to turn of pending me Credit Karma. Let our acquisition

accretive fiscal the acquisition neutral don't environment, accretive in time. it first after given whether be the expect to over year We closing. have But the visibility will to current into full we be

close can and of about We half calendar XXXX, deliver transaction customers. the during benefits continue we're expect to year the we second together the excited to for unprecedented

and a investing generate to income growing disciplined operating Turning to on organic faster than return take we cash principles, greater to investments revenue. approach XX%. that the growing expected dollars capital financial than committed management, yield an revenue our opportunities we double-digits We remain in

principles becoming that on an we be although them continue company, resources our the AI-driven an priorities environment. current not to expert reallocating focus achieve to on may top in a commitment, recognize emphasis able These platform. long-term to remain with We we as

sheet. cash for quarter the We customer and return cash to drive generate priority growth with acquisitions excess with and repurchased billion growth. of that our fill We maintain down our accelerate flexibility. via cash quarter, roadmap. a drew the third million out temporarily the revolving Credit is of product revenue investing during billion is in and in purchases repurchases profitably facility as Karma balance invest first in dividends. credit in share full investments conjunction typical share the approximately $X Xth, May transaction. We stock the Our stock shareholders financial business On business $XX to suspended We in the to our on consider finished the our can't amount we to and have but $X we we acquisition,

have $X.X be future. remaining billion in the authorization, expect approximately We on market the and our in we to

a $X.XX payable represents July XX% approved dividend versus share Board year. quarterly The per XXXX. of increase last This XX, a

We not will guidance be today. providing

a our earlier current we uncertainty reflecting small withdrew XXXX this As fiscal reminder, guidance trends. month, in business

With that, to Sasan. I'll it back turn over

Sasan Goodarzi

Thanks, Great. Michelle.

on impact continuing we've We innovate positioned emerge our businesses world when our that consumers confident make positive with working that for and solutions are home will We've customers. most. company even from and I'm this deploy to to an access our productive products this to to small and as taken us during and employees I'm during our safe help stronger fiscal we they proud We're uniquely company. time. need the rapidly acted to relief the speed, of need customers a a be actions the support enabled time. they to using capabilities

turn over So, with that, Latif. it you to me let

Operator

Thank you. [Operator instructions].

of ISI. Kirk question Materne comes the line of from Evercore first Our

open. is line Your

Kirk Materne

either them? Sasan to thinking is long-term? guess, of is terms I how with sort you've for out, sort about to you. pricing But lot duration the balance, I you invoicing virtual with help you your Obviously, maybe to When it versus argue about this in talk difficult have there do really or mentioned guess short-term client all you about faster that done just think base of you differently that. just of the sort sort guess environment what of, down talking clients gets and your you do can to a how very would the I and in clearly think discounting? you're about anything nobody in and of happen start just obviously about think or shift invoicing towards going when of your you to it environment I with this

Sasan Goodarzi

term maybe here Let then and me maybe ways. longer the One, the take in it two and is other mid now.

opportunity we only heard online used playbook that health moving happening for we matter most, and accelerate. going that then to the of has process, like next that happen to an about on to dollars we really in putting which can again, focusing be always the an and parallel investment all, in and on it and than that for in element not customers, finalized for the going moving when time get our use year playbook our and is important to clear it where conservative that focused the of more envelope you accelerate two believe pandemic diligent presence have to folks this we bets about one at be in virtual the out the as from the But a three started. will actually that and them our bets our plan accelerant take and planning and money and our quite one opportunity allocated our important. times using really year more fact First at the environment, matter that be was year, excited And investment and literally to and of save things just squarely look actually very big is on commerce internally most. ways and are But money about areas said, long-term, bets but ensure having way a the that it then, the world, dollars as we we of but have focusing envelope. was not before innovation dollars of fiscal our a allocated we're through by the ever, being the it, the matter as fact, terms been current big expense, folks as most. we With our to debt to ever capabilities our have And and the we more to ones than Michelle,

things customers of we to feel that out and things even So, we about do that control need the this come we actually can to stronger. our good for the

said, kind of that the an to in today in things brought for to of free, the the is now migration, for which part has of a dime and that to With We deposit over like going backwards our right that that environment full payroll do really paused customers benefits it think elements very playbook our that we innovations and planned. time that migration customers and such of and increases the that doing we elements ensure our of we our beyond stimulus what's this paused payroll significant about like customers you this. bend have on There but turned questions, here any instant those migrate PPP, heard want deliver for customers free that marketplace. kind for a we to offerings your and service we we we're at rave, didn't as referenced, price are to

But that that And mid-market essence us which number pay, element right Advanced, the you the a now, lot to in of of will we you the lines which new we've inclusive with and we past, some customers, one in all migrate of can have uncertain customers that the diligent being very allows place great invoices That put very have you paused place. actually we're launched QuickBooks serve for to QuickBooks of important in being of to for at from in line, customers, times. up comes getting right Advanced, to these number discounting of transactions. we're line clear feedback where of to in put users, of communicated we back we've in in of QuickBooks, As number customers. it time do what's very acquire

things just of examples the that are doing. those of we're the some So

where getting really it. proven a is actually the playbook against well have We team quite

Kirk Materne

on And given for Is I just really plan your a around if process impact follow-up. Karma. integration ask of Credit sort has quick going no assume I can thought serve on really initial correct? that the what's

Sasan Goodarzi

to It We're about more what does do customers, actually save debt. can we Credit accelerate and money Karma helping with not. excited reduce

not So, it our changed plans. has

Operator

you. Thank

Our Weiss comes Stanley. from next question Keith Morgan of

please. question Your

Mark Rende

Mark questions. taking Randy Keith Weiss Thanks my here. on Hi. for for

want to the in dig side. little TurboTax I a to bit So,

related extension. So, big But that any shift in filing a filing files? detail for any in Was kind the you would helpful. the of revenues? that on guys free obviously push revenues Any seen be to have free the the mix of of change reason

Sasan Goodarzi

your for thanks Mark, So, question.

in very is due, First this This the Credit of because actually remind highest more complex DIY all, deadline category balance years. the the part The IRS just the the ones accelerate Really are have that your value of and quarter is and fourth category finance categories about retention TAM. is the is customers serve, customers, our over the it's $XX season consumer the shifted, part because and with actually the about our customers the actually when the the shifted to I'll our it's $X are us context, that these strength, that in we that, of at that billion season specifically is revenue high serving assisted our into question, then in strength. able of Karma more fact strength. that you that billion the In space, is which TAM. about we're look be $XX to going is with billion TAM. the the to And

outside share what that growth strength. we're and are really with the And an champions we're about and season with we of we the given we've category the are feel the And growth good do-it-yourself our from excited so, not of about we category of we which ARPC, game last what given and anything where expected where is we see months and our category seen perspective. two in playing would the FSA with

revenue of shift because is in the So, shift really the the entirely deadline.

Mark Rende

in sneak could one Excellent. follow If quick helpful. I up. Really

can this come like the shelter-in-place So, ease uptake you see relatively the people there's rest of and tax in season normalize this you expect How it season? of expect in the kind to DIY. off the you a go gains being and a do throughout or to until a been durable share Do of that? restrictions big half as obviously CPA season professional or back

Sasan Goodarzi

positioned two see to to you and/or books, great the how I many we'll many, QuickBooks will comes Live industries, when across make taxes whether will that you their of loans, behavior where these shift we're and continue your businesses five into comments. this get to platform customers to same home. industries. to that assistance it news don't the simply advantage the And how be able We'll current not. probably a whether have get wanting is well in virtual business, do how tell to opportunity. across if that play pandemic more will to think accelerated it's comfort many and they to how small comes drive that Yes, your second the and you trends mortgage taxes. their to I'll tailwind do be And out I by world see want One think to our take serve folks what need season taxes you doing assistance different out. is structural able years of would play. help be a manage whether is But changes their to or plays I of themselves your is, helping the which manage I thing education, the just guess with with really the there's And to more digital

Operator

you. Thank

Thill Brent Our from next Jefferies. comes of question

open. is line Your

Brent Thill

have companies been of any there's into what be turning the from I'm helpful? bit and curious on notable color us any color Many the perspective -- little into current giving if month May, would about seeing items you're of a April

Sasan Goodarzi

So, of touch the what I is -- May. say weeks would in first just couple on Id

seeing a and the on TSheets. number front. we've down be really time thing upgrades customers stabilization And paying with of charge hit. seen seen the number so employees. have because customers, the retention same seen in a that payroll companies their slowed of been desktop, through our stabilization of when seen their We To the pandemic acquisition are stabilization. because tracking with specific We've uptick are the right companies in new of We've stabilization that an of and communication timing we've bit was desktop deliberately we've on we line to little the doing seen the volume,

that communication, that started there's little we've And bit of uptick. now been a an so

up don't context, several really what’s if but of want first have weeks but we weeks we trend put open stabilization weeks, see see back two seen it’s the trends. if think is a businesses economy small make come in and this we trend, ultimately And sure of of into in to see a important, trends the continues. all to I we want that portray and a clearly several I that

Operator

you. Thank

Our question Robert go Please Capital RBC next ahead. comes from Markets. Simmons with

Robert Simmons

across spending the the can and year you've talk of more season factors? the overall your adjusted given -- spread tax the the advertising how about and different is other this segments So, you with out timing and amounts

Sasan Goodarzi

Yes, you for sure, your Thank Robert. question.

this One, really opportunity in were to conservative two beyond of prioritization and we it pandemic that muscle agree great continue to middle build to fact terms of a hit look and our a as two make ahead me the investment of points. and was envelope planning our right for in resource year us we allocation. one when Let the to

and areas looked in then that what and make. also we did And with. were discretionary funds We at we very changes that we would reduce here now comfortable

And travel success we and course given, of which time, done. customer the is hiring specifically but across a TurboTax team to has lead both course needed board. marketing, kind in of the marketing Of and

extended around and playbook XXth. July this a and between now have We

say And end done just down in are But we overall company's I simply so, would July. tax, the that. it particularly we we've through of lowered discretionary spend it for extended but reasons, right the because

both and way, there customer to make of expect, success but customers, marketing in up because we've We the it. that to spend of other tax the extension places million by for of of box our up just company reallocated kind in black sort the for to we're dollars to ensure we'll season also that need from $XX the

Robert Simmons

and Intuit? keep like how the of what talk work of that economics kind for And PPP then fees of can the the you thing? you cut Just of to sort

Sasan Goodarzi

Yes, sure. Maybe if take to I could just that. ask Michelle

Michelle Clatterbuck

Absolutely.

specifically monetization. talked about haven't the We

PPP approved working to say and $XXX SBA about expect we don't did to we're amount we've small directly, of Business fund provided that talked earlier, bank and As some funding an loans, Sasan Small million hold We're we with these it's loans. those. but a

about X% including X% the loans themselves. will We servicing to to on earn expect

Operator

you. Thank

Zelnick Brad from comes Suisse. question Credit of next Our

open. line Your is

Tsung-Yao Chu

segments and everyone. Chu Zelnick. for my you taking what businesses for Capital my for the Intuit Brad out behavior these a relates to that small It's historical real-time have a as you're combination rely the Yao on Hi, of business algorithms Credit Thank basically thanks I data. it Karma. for question, and doing understanding, and there. question models potentially on of are From

of last and the is of is from be relevant that cycle data crisis from criticisms that FinTech next the not may some one. in algorithms be of every current driven built the these so One the may in that

way our couple things. work we you a of some can through As on share thoughts this,

Firstly, on the the in based guess that, the you I managing assets recovery? increases do how the or may And the think remain intact gaps these these have And crisis in algorithms of needed where value this and through intervene? are playing does value through behavior you main plays? And working? the data-centric longer-term and to both businesses proposition differences inherently where downswing well for these

Sasan Goodarzi

you all Thank question, your and well. good Yao, hope for voice, is hear and to the

two comment, me specific and get general to question. Let make maybe comments general your a more

capabilities, learning adjusting. models adjust checks their X,XXX-plus do per bias, did, are we their they can know, the companies, to we on I and that so what basis us first were I and impressed with their but separate for they use all, to due as watch Karma tell operating Credit and models of are two very you customer ability diligence because to their you daily always think machine from that as run data points quality a

context and pockets, the we has us this of because have their money, But in actually and get accelerant customers of that an help in us and all in and me, put to of better that macro second we way, is for ways out that's environment save the say let the models did, more that customers. allows to current find to adjust is I believe the debt just due Credit is actually capabilities right serve point one this diligence that Karma reasons to money would our we have this why that environment, we machine of learning done the

get for think cleaning question QuickBooks that more in something and specific of platform what permission and on capacity, data be your dial. we Now, XXX to machine be Capital XX learning let so sources with around I quickly to been essence know use information on, take able to loans and the the can both our the their use years adjust is customers from how and number data months, the and QuickBooks able that they working have the to what to can our This we can me Capital. capabilities we've billion up that we

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Capital Capital. use learning more use daily. actually same-day for so way, proud for are QuickBooks and across for those capabilities same and We they've what capabilities and capabilities been Instant the QuickBooks we able accomplish, and that capabilities we're just is team these use not those adjusting by to platform same-day truly company. capabilities Deposit, of our same the So payments, we can And payroll, I'm those

Tsung-Yao Chu

point? And at in. faster funds the this PPP What sneak main one distributing in one let me more quick are constraints

Sasan Goodarzi

question I'm one sorry. ask Could your time? you more

Tsung-Yao Chu

funds I Yes. main bunch the the to-date. Can faster about talk your distribute to on you've know ability to distributed the you funds to of -- a PPP constraints base?

Sasan Goodarzi

because it's to us our or and know filed have we quickly QuickBooks actually very for to to that of and or payroll that customers, data, payroll with they've Desktop we apply and done and all, customers' the whether able their all customers Self-Employed they team checks that them truly your get and fact QuickBooks to move we these be they've taxes help the of the had approved do rapidly line the and to privacy To fast of an to actually be been the work question, SBA loans, first the has admire get to make applying truly able wait the are that of to to distribute in deserve done. has Treasury inhibitor on for SBA. for loan able be security quite these the these what so loan. the have Yes, and having by available Really, quite applause loans able to all in been biggest loans

reduce don't think that us. ensure end, SBA the just very, loans it by rapidly they actually It's really difficult most bottleneck that's fraud. obstacles quite the so, I of That's they loan front probably out our how where coming requests able the is the way, process is. have move too that's But been we really we've And of and on fast. the And and in and have moving very many to number to part. of

Operator

you. Thank

from next line question Panigrahi the of comes of Our Siti Mizuho.

open. Your line is

Siti Panigrahi

like selling of one -- is world. about in talked bets the in you Sasan, omni-channel

businesses small presence of online moving seeing e-commerce environment. trying to or to we're more fact, have they're their In

moving opportunity online? So an to big could can color help and for you how for is give us how SMB some Intuit like helping Intuit

Sasan Goodarzi

commerce drivers being answer service-based do accelerate question. transformative base, businesses, behind serving now for is of your question easy Yes, even providing you're that When being we multiple one what you we primarily thank interesting let it's businesses. XXX be But to your our actually causing, in to last but which and of about business core sound. service it bet really is send for and so year to our shared hope customers safe one and channels the to million-plus if growth is One you businesses, small Investor across think two of experiences remember Day Intuit's and penetrating this about out, base get center we have to and is payment-enabled. make Again, hear to customers great me serve you that ways. the able number they're actually product-based are at four your our it element environment invoices XX% voice,

more that paid to make more service-based world. looking of actually so get they actually able paper faster businesses payment-enabled all online their can payments actually out be are to and seeing get of the We're and

you're you to is going be impact with prove out this doing is to this really businesses can't the doing payroll not service-based if in And your to Paycheck able -- loan. because get to to so line seen payroll and time an Protection manual Program first a data, it get on over of going you're they've having, be have online not

where service-based going which is sweet more And impact is. spot online going our more to businesses so, it's and

our element Instagram, to is get over that channels, question which the the not issue. that's conversations Amazon, though want whether really quite it's omni-channel, on of on our Etsy, you set with and up biggest different asked customers actually customers Facebook, problem we is for is core a to solve second easy based it's The well their year

different out lose clearly, because Their of fulfillment which connects they the biggest is which is want inventory, is their how coming run don't they to channel, and of that profitable, are issue time critical. sight to getting paid across on customer customer from inventory is you which channels,

in put the different came channels if problem that we I the simple app all the really where want place. actually see in having an so solve in orders is And that through can terms, one you it to all

connects time over profitability payments. ultimately the your can You of It the profitability see customers. your to of

have four, we're You automatically you're going problem, that over tells it position it what but that bet environment how will the service-based very only We're clear you this to businesses can believe of fulfill but stages serve inventory. the problem will in very your on is to and to see us that to early time us inventory your connects businesses. solving product-based help penetrate not number we

and it. the about we that's the way it we think see way So that's

Siti Panigrahi

from Yes, on so people to if that thanks is of This I what question April shifted could one XX, are stimulus and check, what you the And for you're changes and of percentage those Live tax. exclude filed taxes filing file people those July percent color. now if yet also, so adoption XX for quarter, far? the unusual this tax year, for ask TurboTax now usually seeing maybe what it's who have terms moved have not the filed to in

Sasan Goodarzi

think to. Well many extended. ways this tax I Sure. like it's times team has very we in But by season like first of our things new is and able wouldn't for opportunities been a us place built unusual a I'll in otherwise where be been is in start we've experimenting ways, because it season because don't that affirming affording all,

is wonderful leveraging team So a our doing the opportunity. current job

between file think got their XXX-ish-million been you've have that specific I and actual XX already, If and year, to now website, was that that XX XX. XXX customers million, would and numbers that you you on there's but filed returns there last still nevertheless, the filed think about million are the tell IRS July million need taxes

feel So you left for come. to that gives a kind of what's

this on TurboTax improving of focused year Live, we use. first-time terms In

expert our really we're because on up very the really and experts when them very, We're platform, customer of conversion our and more is, goes would expert, focused customers quickly. and to that best meaning know an providing improving the contextually engage how on them where and the help serve retention focused side to access experts

to customers and of within are between delivering so TurboTax it, left And the so months for filers excited have many far, now that and TurboTax Live. to Live as through we is we're most had then complex we as got come, and really we've expectations still the serve two can that

Operator

Thank you.

Ken from comes question next Our Wong of Securities. Guggenheim

open. is line Your

Ken Wong

question color half/second-half And good toward on the Maybe Michelle. the thanks I'll splits. first this steer all for

So or lack your as issue not more just of I kind if worse, of kind to think but guess long play unknowns matter about obviously going of in kind in could magnitude this understanding how thereof, things ability is lots might a an we out? guide of you. terms forward, Thank duration terms in or of get of of this

Michelle Clatterbuck

Hi, Ken. Thanks for -- the question. call

strategy. ago. few we the see a minute all, those the Sasan I really said, of two be But weeks going biggest with But of forward, issue of off our lack in as there. to so and business guidance are confidence sense it that he would don't the to predict that of say are doesn't data of confuse business in to enumerated just a First say is I stabilizing a able trends make our lack that and starting would

we've AI-driven in more guidance. been as confidence issuing doesn't becoming in never not So fact, bets so expert mean and a we've uncertain our we're strategy the confident discussed, we're and in and certainty, around environment of uncertainty. the we've that's business, platform, But our actually five very big really It's that declared. why

Operator

you. Thank

of ahead. from Daniel comes Please question Jester go next Citi. Our

Daniel Jester

Thanks my taking question. Great. for

people the there regulatory the Capital interested terms the kind made are your either really QuickBooks system would learnings Another the in this? program before? accelerate just repeat in to PPP, Capital, I if you ability customers for that Maybe can? the see of there of to you've get or back-end from those could can many how then QuickBooks you're -- of Capital. already any that be Capital the new And there back-end just on For QuickBooks loans brand used one of this just the expanding never usage use on were loan QuickBooks go-to-market of to if on and Thanks.

Sasan Goodarzi

sure. on and and/or will Michelle Thanks for this. Kim me Yes, honest keep your question,

the Our goal served and could, with was businesses our all customers I we of existing believe to all and of serve customers. base QuickBooks as we are current as started course, that many small that existing we

part Fund customers. it's that we've So incredible things all by I partnering effect that the the gotten you would the with small what get $XX to which tell which I to program, mentioned I'll the we've almost quickly I halo that is to have Me, to been PPP has get help businesses existing second fund access close to. we've with a and earlier, to offerings, to launch Go of question, to from done confirmation gotten crowd-sourcing very platform what but And it's if done been stimulus with to your wrong, IRS million I primarily access got businesses all small partner money, the the that think

attention a over around services for QuickBooks and this machine Just customers. us to helps that allows our I really machine and has make to specifically QuickBooks PPP can current customers. think allows environment lot really that to things brand done do payments, gotten help we just which learning models us better a model, made our payroll, stronger stronger serve which Capital time, us ultimately very number as of And of a what have really we've

Daniel Jester

card and your Turbo And or in I'm if bit mean a you on there. engagement you going Mint, credit you. a then if think I mean purchasing give more Does it can you color wondering does your about color little actually talked more a Thank very or wondering a partner? just through Great. just loan could remarks Thanks clicks, some much. through and engagement. I'm provide bit prepared there.

Sasan Goodarzi

absolutely. yes, Sure,

So have demand, supply. less more seen, what we

the their status side, to. on first that an their by for seen on Turbo specifically and the They're for learning setting side and of in to them come impact so the because this the and off those stabilize credit they access seen we've so qualitatively to financial for the demand to how But pull of come on time place on interested that customers to that of potentially their their credit current refund, return an they unemployment can loans, credit platform. platform checking personal means institutions environment it's goals from getting really sorts interested told platform. on highest digital Mint financial then score institutions, more credit back the back supply we've just of they are And interested payments improve score, they're some cards, the environment, us the score, back kind temporarily is in in really waiting making want or the is whether on things. of to also What us although it's course,

which supply So from means side, higher less financial less a monetization. demand, institution

Operator

Thank you.

from Our next question comes Oppenheimer. Scott Schneeberger of

is line Your open.

Scott Schneeberger

afternoon, Small lot. a Global much. during question XXXX, the Business Michelle. Sasan fiscal relatively very Good Thanks and Thanks flattish. Crisis, first My Financial is was

I high-level X%, only just good time, conceptually about Sasan, that the hear and and and be case. what could compare was down what just love I'd contrast time about case/bad think thoughts, versus revenue to we're your this Thanks. seeing

Sasan Goodarzi

out Sure, businesses what number with and essence, businesses I small that you build a business of of sure. in total your frame, was what Well, upticked in the it would points. to on couple of number started 'XX-'XX downticked that of point, in points. went couple saw essence a start of The time

small a This recession 'XX of second of and financial some kind on different number that's is say caused pandemic health actually small institutions. essence, businesses. impact total dimensions. 'XX two things on was was have the of there 'XX in would and shut than And I businesses the So down. point 'XX where health-driven the X very by completely are a thing been is, ways in One a is X,

small quite recession. actually it's of healthy, was shutdown caused now has the but economy a of not businesses, which The also because

impact down-ticked they're So many is been down-ticked has it's down, in I mentioned we're XX now impact. slowed same, in has charge is being the has from post-mid-March that acquisition retention but as volume very few which different, earlier some seeing a the ways, to flat ways, up customer points, COVID

very And but so that different. also impact we're the business of that's our now, seeing course is

a larger We it the which sharper is sharper it's back sees cloud but Business subscription-based was portion a rebound. of have Small our and Desktop primarily decline then, whereas in also

mentioned those all from/to different. that things would that what a are or earlier. said, three I with two So the from I of are reiterate perspective

will market the rebound how second-guess to, to trying is not this long meaning how are or going or stay in will We place. impact fast this things

this which went like much, we to of focused our our just we're very So is stronger positioned to on even much come focus helping accelerating when on our customers in into times this it. big than controllables, bets, out our ensure we're

Scott Schneeberger

I more And release, far not you XX clear volume just an side, Americans, for XX be I have April said be than in insight over tax Thanks. to thought on results will for year the curious on the you as of your you follow-up, Do but filings? a idea that stimulus press that what what that. you filing? a regard believe appreciate IRS IRS the number from And tax with would Thanks. the million very impact have number. type this thus

Sasan Goodarzi

about believe mentioned ARPC, we actual we the doesn't tax And communicate some left it flesh at that IRS you folks will to shared to looking of part versus at season tax with Sure. numbers have actual share versus numbers seeing actually the what visibility and be are some believe point the that's relative -- them so The stimulus are the finishing do-it-yourself the XX% the IRS stimulus about returns. earlier, the community, for the larger in will the don't to online I of feel hopefully are tried and million faster they to offering point also We where funds. have the the category earlier and people able the current filings. stimulus are and should is our as course to what money. separate to taxes business. the is The essence there's out filings and What to and we get our file returns the change we're go our category. then there in their couple out. through investment point are clear have be to about actually XX of by stimulus been perspective for the of that returns the good so be we tax eligible, eligible this that the season, that We're typically next are forward is and a is to stimulus access strength shift that we growing. We that months

Operator

Thank you.

question next Stifel. of Brad Our comes Reback from

is Your line open.

Brad Reback

forced some amount now Great. sense Thanks actions give and taking on the Can and marketing is and into us mentioned what expense right saving been Michelle, and things? about hiring. very a earlier much. variable some had it's you three-quarters base you travel of you're those actions around with

Michelle Clatterbuck

for Thanks is have through Brad. proven start been downturn Hi, out. say have they would the a question. What principles I around with we and would leading I that

our in We're deliver spend, principles the of around I can, we our we controlling looking can One all of mentioned, as discretionary expenses. at so what is playbook, our really bottom-line results. that

can to are what along the though I'm the everyone about marketing easiest that personally, in travel, spend control those and making that hiring Some staff are we're of short-term. sure thinking Sasan's decisions. on we with some do really the

a also like things decisions estate we're at real things working longer-term have But taking that look may our and a impact, remotely.

that expenses. will As about million able discretionary but we little and tax the marketing success, extended Sasan for the that's season, also we to some mentioned customer ago, $XX been of That's spend. the increases have have offset some in season, with bit a

get been taking in-line number, We actions a year. feel set haven't ourselves next in and good we given spend up very for order specific about that the we've our to but

Operator

Thank you.

comes go Beck Please of question KeyBanc. from Josh next ahead. Our

Josh Beck

question Probably Thanks you've for all work higher your customers. the Sasan. for great question, the done a on and congrats for level

idea it your see businesses about other You given the this just just how purview behaving, be I'm could and you potentially pandemic. it that and this virtual of acceleration any seems where wondering of talked consumers on strong are areas and notably there's if like side

great. color So can there any would give be you

Sasan Goodarzi

of medical taxes for believe world, but to talked your more it's and done, and across that many to shifting Peloton how people to where start and business I my of different your you it's being getting see specific CEOs it's example across Sure, and peers now we a I what as able I'll you your make engage all many think being to to lot a industries be more have behavioral world to have then sure. help us, to of with I'll a a how one in or how several this impact accelerating companies get online, and education online get companies out will pandemic workouts areas. investors is you to went and many, and of in used figure where education to so many your trainer manage industries, a to virtual whether now to if you from able training, that so an bookkeeping, in shifting structural to that whether

doesn't And I physical first you One how a things whether how won't how payments, world, it's go do in is a but is over save whether engage it's to that in doing It you conduct to mean you commerce, even do stuff your conduct do think than we ever, it's a going online now of it have can you to able this to money to behavioral some not of payroll, and about is whether if then a your going reduce moving you service important. to be a virtual be think how that you're fundamental physical ensure you're business, time. back potentially world. important more ensure debt? world, you're just Two online to will most how impact

So we area those and the that of that's team for overnight, given to accelerate our ensure and things we're by what these think and to of is it's this about we've if that guess can you in five much. the around years how excites the of are moving these think shifted for shifts one areas virtual importance just the and our deliver customers going being possible to whole company accelerate, believe and online, behaviorally, that areas structurally that seeing. I anybody's three of leadership have us But more progressed and money, literally, we it a to world area

Operator

Thank you.

comes question of William Blair. next Matt from Our Pfau

is open. line Your

Matt Pfau

fitting for in. me Thanks

customers behavior customers of between to in Small business QuickBooks any difference international U.S. you're and to relative Businesses? Self-Employed seeing Just wanted terms then the if ask on or

Sasan Goodarzi

Yes, thanks, Matt.

a which Self-Employed our numbers points Business And we more than with is the macro that some we and metrics or on seen more trends down bit level, before interesting the that the seeing those all outside I the second is before thing you being after, probably were we're discounting Small are the actually we Self-Employed Although and resilient although tell what's than would shared. acquisition be at countries on interest XX just doing, side. the that U.S. U.S. shared COVID, side, of is then after is all we've of the what

using it at acquisition, we've and data. seeing It bit and Self-Employed and but to trends acquisition seeing seeing post-mid-March what XX I we're from. bigger analysis U.S., to maybe we points early coming we're is in doesn't is our we're need learn looking more U.S. that covers analyze were impact or resilient stabilize, sticker seen we're learn app, of on way to down which shoot SE about. these understand But being outside SE change of that they're more little businesses where the interesting we doing our are that say days, That shared, to actually of a we than they're is a we're green course looking picture but born Self-Employed no what on looking the the is the we're would bumper and countries is new the

Operator

line comes Bank At final you. this from question Kash of of the time, the of America. our Thank for session Rangan

open. Your line is

Kash Rangan

every questions, business such there and what keenly that is could into the thanks it's side weigh it a an Really pick as I year's to spent that the as you're time are Intuit to could time, some a and your profile strong curious I'm going have how next sure it. for differently exceptionally single you've has going unemployment year. for not but quick next is, Sasan, on the been indicators because curious I'm you've are Business gaining since to thoughts, year, that but looking be share of can keep starting if Small things because think that the appreciate conference Michelle this bad on on much. sadly, that its watching growth things to up going you this Intuit year's is they activity you've the are just year been extended ground what for. share tax to been to what Thank unemployment One couple call. are. Sasan, doing so the story be year I'm has just been also, starting for or And about curious, taxes. you're market in what that long do some consumer I'm you fundamental the indicators stabilize

Sasan Goodarzi

Sure, Kash. your and to sound. doing Great voice, hear well safe you're and hope and

will hopeful get sad kind question and and are Let be all see work. things me It to point rebound able an back last you're unemployment your first, at to very right. that to will is this start with folks rate some and we of

we so when employed you unemployment unemployment your I I because what actually you year taxes. low was to because unemployment and were would think still and to income your you don't do actually you tax through to taxes is rate next do have income, say very March, have because means an have which you and get foresee impact

shouldn't mentioned. So dramatic that to total look an we that need do number the returns, for a I reasons at this file of actually IRS of from impact the see not will IRS, have people number when impact the I

impetus do great able and these platform, could to you this that on Live we we help the how deliver from be really confidence higher be we serve customers is to for home. your very of to The a deliver an through focused are our second believe experience it and to comfort

have so the do to first the you low still do because to the folks to that's for around year unemployment rate question of months and several income. your their the are going is because taxes have to So unemployment. Headline news taxes answer of was unemployment

of or through companies payroll through I the is employees. payroll important terms One there TSheets are looking in us. employees just are very paying for getting indicator number one their that for or their would tracking are their workers paid time of instance that say or at, second time That is we're tracking The of indicators number a few. and that the are

a because business The indicator important of consumer second shows small happens it spending. the charge very is spending just That what businesses and volume. strength small with and is with businesses small

of Those would acquisition getting at. less but all I is of And So help. It's rate the of Live in and this one is are how trends of about third the the we that's the which Live of look environment. subset that And all just this QuickBooks highlight rate second. then just performs notion attrition. QuickBooks the

more world to are as Although and this not happy but the more days early with with in because trend very seen we've said been virtual run ever to become things their we've time earlier, folks that do acquisition clean frame books actually QuickBooks with looking looking Live, we and in the are they a help only get in matters compliant to how to again, because up their and than money business ensure to more before. more they're far effective efficient

their the and help online more four opportunity able customers we looking So those that money shift huge because customers down in to be earlier find we world three, there's ways a I virtual shift just pocket. to doubling believe mentioned indicators to a are the are to that put and to help at, bets to on to

Operator

for today. And any all questions you additional time like the Thank remarks? gentlemen, we close ladies Would to and you. is that have with

Sasan Goodarzi

Yes, I will.

what customers and and empathetic just our everyone's employees just like today thank would First by once again, thoughtful joining done being the to questions. they've of being compassionate partnerships for they've our time by the we Please wish Take having Take at the forward of all and also for the partners. to to through everybody. well. on with talking I work incredible call to next our earnings of and for go healthy. of that look yourself, call. you the thanking all, you side I care, and care you close your stay for and just

Operator

conference Ladies and This call. today's concludes gentlemen, thank participating. you for

Intuit (INTU) 22 May 202020 Q3 Earnings call transcript