INTU - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

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 First Quarter Fiscal Year 2021 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. I’ll Vice the President that, Kim over With Intuit’s Watkins, of Instructions] now call turn to [Operator Investor Relations. Ms. Watkins?

Kim Watkins

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

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

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

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

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

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

Sasan Goodarzi

fiscal to XXXX. Great. all I to hope very joining doing a Thanks, you well. Kim. for year thanks you all start strong are And of us today. We had

environment, This the growth great in with and our seasonally Business reinforces to revenue quarter is quarter. Small ProConnect growth line was grew was a First year the revenue in start in our of in XX%. XX% Total Self-Employed a a challenging the by Consumer Group which Group, driven small platform. resiliency and expectations while Group revenue

in how our more the macro although confident performing growing uncertainty We’re remains. current is business environment, in

our across September our year growth the later. happy guidance trends which driven with we Michelle highlighting to levels. back detail AI-driven of pre-pandemic announce more see QuickBooks innovation, our platform to XXXX, in Investor Big At provide by acceleration for and Therefore, We continue shared our fiscal I’m many Day, cover indicators will X recovering strategy Bets, that our we to platform potential. expert will

During the innovations I’d accelerates and few Bet. the number cover it Platform it’s Big Big to platform against What a like progress highlight one we of last each to do is our Experience, and innovation Immersion demonstrated the foundational other bets. Bet across as

second Our Bet people is Big to to connect experts.

the the on of by last prepare QuickBooks team of at work We’re our one recommendation largest and connecting face, experts is increasing by people points. we X Live. solving We ahead. season the for customers number confidence, grew to Live TurboTax while as our nearly of expert hard at scores Live product lack with season TurboTax XX% customers platform The problems our

with we’ve proud have also made these experts already of We customers. We’re the platform. progress is serving which small business QuickBooks more XXX of Taps today, with Live, built customers expert and serving both experts some on the same than

money Bet unlock is Our third smart Big to decisions.

more be important ever get to debt consumers money, faster our expect help than have save of money. to of to we pending Karma and acquisition access as We Credit work out

of the complete year. end to expect the this calendar before We acquisition

accounting the on our businesses leveraging grow capital, of them small Bet providing million in We’ve with businesses ability instantly September in identified financial businesses to tools QuickBooks. small world. inventory businesses small need business Commerce providing grow with helping high get velocity this pay and order become product-based in management all It’s both and take the launched cash world. UK, Cash QuickBooks of Our while them, opportunity. into of could manage visibility working platform for market struggle serve We also their fourth money providing move omnichannel but seeing. U.S., Canada Commerce, what to center by picture they omnichannel the and is and in helps with their with we’ll ensure million to solution. encouraged businesses innovate by capital Australia the still Big product-based an money early working customers advantage while manage with XX% this built-in benefit we’re better paid an X.X X their to by is QuickBooks employees that from the of QuickBooks to fast, Cash our we’re flow. growth and by And confidence

the disruptive on needs mid-market price of and this XXX offering in to Our features XXXX, to fifth our with with small point. that business momentum. Online Big small we’re to disrupt continuing Online introducing employees tailor QuickBooks XX a doubled customers businesses We at XX,XXX Advanced build is we’re QuickBooks Advanced the individually year and fiscal the Bet to to to

across for have money speed available by and to our the and to solutions continue and customers. by the our integrations HubSpot. two mobile and Last to customers’ our our of Big revolutionize customer app point use now Bet, We every we in finally, pursue CRM and on our year, and to deployments in speed platform largest using platform increased premium XX%, us the XX%. of enables modern more first put of by friction We strategy pockets deliver AI number insights. delivery tripled with AI application And models increased our increased over confidence of touch benefit, Salesforce development deployed introduced eliminate

innovation, momentum this us positions the we’re this solve innovate and building Big durable year future. our to accelerating We’re as customers’ rapidly for growth all believe into Across well momentum biggest we problems. Bets, we our which on building of

omnichannel as and for the money is to to pockets. more looking are believe Most environment virtual and Small And bets. also online to their are commerce. everyone both, an ways businesses businesses to their these current accelerant We consumers act small continues for looking shift in solutions. put accelerating

have to of we the excited So, us. opportunity And turn over me about let ahead to wrap Michelle. now, up, it I’m

Michelle Clatterbuck

everyone. afternoon, Good Sasan. Thanks,

we of $XXX per versus operating of billion, million For diluted revenue million XXXX, GAAP a last $X.XX non-GAAP share $XX last the delivered of fiscal year, year. of million $X.X and non-GAAP first versus income versus $X.XX diluted $X.XX per million earnings GAAP earnings $XXX $XXX of ago, operating share $X.XX year versus year, of last quarter income

the of during business last which the QX, the lagging the In lower to the Ecosystem during Turning revenue lapping during from XX% the year. revenue up Business Small of XXXX Group, slowed Online price segments. quarter. of QX reflecting began middle the and XX% and impact fiscal retention during quarter. Self-Employed increases, was Growth grew

the growth points X included revenue Paycheck QX Program. Additionally, of from Protection from nonrecurring

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

term and by longer Online Ecosystem expectation growth revenue XX% both, Our customers growth, remains driven to in ARPC. XX% greater or XX%

partial continue We and increase we growing a [Technical last began focus the lapping customer year-over-year mix First, in last of driving fiscal QuickBooks versus by a core. grew to Live mainly price shift. Difficulty] quarter. year, QX, growth on quarter XX% driven growth slower

Second, and customer ecosystem. in a per see we grew time revenue XX% Online mix revenue, customer. payments, an in focus continued to offering payments, services QX. growth along payroll, includes to growth customers. which tracking Within reflects from during payroll full continued we in service tailwinds quarter Within the revenue shift with charge growth to connecting our on continue fiscal payroll, increase and capital, volume

in QX. international revenue revenue the Ecosystem of license in revenue from and Desktop revenues fully XX%. updates X% QuickBooks in progress reflected Group quarters. growth growth Third, announced additional future of also these various Ecosystem Total We Online XX% to benefit Desktop not in during expect added first the quarter. from globally revenue tailwinds revenue to online QX. expanding reflects year do Consumer price tailwinds in the mid-single ago grew quarter, increases grew grew products, Enterprise Desktop not revenue our the recur grew while previously fiscal Ecosystem digits.

continue expand lead Looking to tax with in on the TurboTax DIY, disrupt the and focus ahead upcoming consumer strategy our to finance. segment to our we assisted transform Live season,

grew expectations. to in our QX, with XX% line Turning Revenue Group. ProConnect in the

Intuit, welcoming the to the you we’re acquisition can benefits Karma be Karma. customers. looking me and turn over our to accretive expect about to excited we Let to deliver forward time. Credit remind unprecedented to want Credit team continue of the I acquisition to that I’m for we

be fiscal Karma’s seven as XXXX close months to fiscal lenders business in the dilutive access after impacted fiscal share in to recover first to pre-COVID continues Credit reaching negatively non-GAAP October modestly credit non-GAAP per earnings point and levels. uncertainty June, revenue last business to economic to the we over in per to share related after XXXX. was neutral pandemic. low The due in a close dilutive acquisition the expect earnings to tightened in year Therefore, However, to the full monthly with modestly to

can we that innovation the customers. all together to forward looking We’re deliver for

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

achieve an we transaction. on able with the remain We becoming though may expert of in Karma the environment continue priorities an principles to the to current These to commitment, our emphasis be close on resources directly them top AI-driven focus reallocating we not platform. recognize long-term or following that Credit

cash growth map. We Our for and the revenue accelerate to We return dividends. we out approximately finished to drive the profitably product is customer road investments consider in the our share generate that investing business growth. we cash business first our with and We cash in our excess fill sheet. the priority acquisitions and and can’t in to both shareholders billion balance invest quarter repurchases via $X.X on

as market $X.X on represents share Approximately of the cash fund for We $X.X dividend the we in quarterly remaining authorization, of during quarter the per year. to expect did the future. Credit $X.XX we Credit Karma January first XX, to acquisition. Board the the not stock an acquisition. last temporarily This in approximately with a XX% conjunction XXXX. billion any in to repurchase suspended Karma We approved be consideration payable our expect use billion purchases part share versus and of increase The

the we agreement IRS settle to seen, regarding File Free have may you As litigation program. an the action class reached

We related Day, with settlement a are to law the million million I disclosing attacks in a in making those any million court this behind firm. demand approach and recorded subject wrongdoing. to us. $XX fiscal of the Also, companies admitting to Investor law our approval, matter QX not fees as law agreed a approximately of instead of into of XXXX amount which arbitration. standard $XX have whose is target that approximately pay million future we’re involve seems fiscal to fees for of An to in at to firm put arbitration $XX same is companies XX-Q associated fees Intuit pay be could firm shared incur periods. entering claims this settlement, by increasing that We’ll in arbitration the We paying number XXXX. facing similar Intuit By $XXX

these in the the mass we of exposure and brought system. it believe process believe I the an arbitration disputing We’re fees, significantly this claims If of against we settlement mentioned may earlier, abuse that the being court approves arbitration to us. is reduce

on Moving guidance. to

the While remains, how more we’re in confident growing environment. current business macro our in uncertainty is performing

Our guidance revenue to GAAP of of per non-GAAP earnings $X.XX. XXXX $X.XX XX%, growth earnings for fiscal to $X per share X% includes share and of to $X.XX

includes we’re which I expansion, leverage Day. Investor XXX our shared margin at as to guidance platform, of see basis of XXXX fiscal operating points the Our starting

decrease for a XX% by XX% non-GAAP for We state rate are rate driven a primarily GAAP impact our guidance IRS the changes higher XXXX. our non-GAAP tax the of credit for non-GAAP increases tax These This and tax to to fiscal and and equates an rate earnings tax per share-based compares a expect per and a tax benefits rate. and $X.XX $X.XX share compensation. XX% expected fiscal earnings of GAAP to XX% our to share of tax excess This R&D XXXX. tax to of to GAAP for rate of

$X.XX. share of fiscal share QX X% non-GAAP per X%, of per $X.XX XXXX $X.XX growth to of GAAP to to and earnings revenue $X.XX earnings guidance Our includes

guidance our One note sheet. find our press and on QX can fiscal details fact and release in QX. full XXXX You our on final

it Business of Karma the We’re of call which we to and guidance. growth Sasan. with Small that, lapping by after a impact turn Credit in a couple a to we increase to a revised Also, full Self-Employed shortly we And price over points. quarter acquisition, will our revenue QX, close hold discuss expect I’ll negatively back

Sasan Goodarzi

Great. very together, organization Team, proud our very of Thank about I’m we’ve the you, all and and Michelle. accomplished future. I’m optimistic that

questions. now to your So with that, let’s it up open

Operator

Guggenheim of question first The comes the of Instructions] Ken [Operator Wong Securities. line from

Ken Wong

Great. the the the guidance, When W about guys may XX% you if W run the that specifically we to the much and right Thank lower is a that new way we really one might off towards still removed scenarios that have will taking the your to business Is has it you for my guidance, it, table. question, at guys. held infer better, SMB purely solid and double start end? looking are macro and think just the into to it up do, or X% those. tilt But realities year, this

Sasan Goodarzi

Hey, Ken. Good to hear Yes. you. from

how I best I platform how resilient is, think, one, seeing in small way our this it are pandemic. and businesses platform using the describe is we’re would actually our

be we through look able environment. terms it -- ahead to how in current businesses to because maneuver to are small think I of that, going gives of confidence, this us just as

are of really indicators to key us off that and going both,, has the guidance that leading that given primarily we’re provide what confidence we’ve that given. lagging, see and we So, the is

and Of out have impact really that we’re today. in the informed to what’s play just things economic given course, seeing the crisis how we’ll and business, of guidance what our shared we But that’s with health wait see our crisis. the

Ken Wong

could if one I for Michelle. Got it. in squeeze And

like the did basis mention should ahead? XXX more or right will we give it And expansion mentioned that margin XXX, points. expecting guidance EBIT going you level the looks You look is we -- be previously margin forward. the expansion take, this Is as of leverage be, seeing

Michelle Clatterbuck

Hi, Ken. Thanks.

we is have revenue. our than operating that includes financial that the commitment faster really that to and revenue principles, growing growing and long-term digits double income Going

so, -- points to basis do expect we we I expansion, excluding And as yes, Karma. mentioned, see XXX of Credit

and as continue an though, As to I those see expert margin areas across expansion velocity can company. for of technology, the on using where more we And and platform, development Day, evolve in technology of actual opportunities of services the P&L. faster platform also increasing we shared Investor be the we products deliver opportunities to the so at we’re do our can AI-driven across

success, also a scaling we leverage processes. products. we’re serving common customer manage to efficiency in our platform, effectiveness that And drives a sales that and across in see where that customers infrastructure more also can customer go-to-market, and all We we’re able success common effectively and target then, marketing so

margin to continue going for opportunities to see So, us we forward. expand do

Operator

you. Thank

Stanley. comes Weiss Our next Keith question from Morgan of

Keith Weiss

Excellent.

not guys two, constituent on Credit expectations this, I was First comment the comment because business. selling the on are Karma, number a current their sure speculation Any to those? just sort Credit all that of press you going you of question status Karma are might could of hoping expected in tax number And to to on pieces I’m off was if be was there ask, some come they update your whether for on one. timing either along chance

Sasan Goodarzi

Keith. you. Sure, from hear to Yes. Good

of do we Credit all, calendar of pretty end close First year. the by that confidence have we Karma high will

point. first the that’s So,

second Credit finance that it don’t premise to on think, reinforce the we do was whole for could Karma is, business. point we I what comment behind it’s platform, But, important together rumors. tax know, wasn’t the to the the a create as consumer acquisition and you

so, I excited can’t And nevertheless, consumers. doing so together start to for at leave amazing will I it that. we’re can just close we think, wait things really this, But and

Keith Weiss

last answer. you is do last who one you’re have sort is how sneak within In significant solutions? like If position newer you’re I of of one maybe one this to change you’re stuff when to more Got platform these seen half going like SMB, trying when of your you could cash, or Have kind into up the it. sort since solutions the broader going that environment? competitive commerce how against for the of changing of back-end, in a the

Sasan Goodarzi

thanks Hey Yes. buddy. Keith, for out, calling me

start QuickBooks they product-based accountants, one and that fact of it’s all And has question, Connect QuickBooks love of Commerce way, thousands small your together. they to simple able virtual. and help were at is to rolled of And if two And bigger reviews be we partners that accountants and in just the business and I awareness. to We the where course, businesses, particularly, our essence, Cash, answer product-based terms because with very timing. and where ever on base visibility the And send love we have been a and Commerce, we roof. businesses, Because run can, businesses accountants raving our now yesterday, just it and app customer this by question, they their was had far than QuickBooks product-based to In because through were and QuickBooks least platform. of excited got through it interesting also far, businesses and out was receive was out which for rolled business. they your can QuickBooks the lot small gave to Commerce business we recommend or a the But businesses, a feedback works can innovation. love you they small run it’s your money QuickBooks how Cash

the an year entire source see digital with small going helps what business source can truth be, the versus their of ahead, and so, is in team from What a up fact, and And And really others. would standpoint, positioning awareness. how of in we’re we for going that the and we’re some our has understand from that problem great anything we’ll in be lens. businesses you’ll in raising against their say books not assets I accounting work customer for terms done truth doing is the market on essence, focused to we’re the differently truly of months

no awareness market going more the in doing past. against so, versus who it’s up frankly been shape differently, anything than given what to we’re the about because doing it’s it’s, And different what raise and we’re

Operator

Thank you.

Turrin question WF next comes Our from Michael Securities. of

Michael Turrin

you is the you’ve help to guidance and to saw On to ahead tough point uptick year, for focus as strong maybe base XX% this Small bigger mentioned year? I But from ability obviously, and bring you Can previously a just the growth that your monetize mean, further top-of-funnel past that out around back, decision you last guiding looking to tax, year. saw there still starting on activity the now X% Business. confidence maybe there this frame the case comps

Sasan Goodarzi

from Michael. Very good you. Sure, Yes. to hear

biggest we platform small our the as talked would environment uncertainty uncertainty. our and how businesses impact around macro last in quarter, all, of and times First perform about the to was the of

all we’ve One, customers. a in survive; So, their us for passion to to businesses but then takes to better it just be ton. of use the learned the two, terms understanding how they credit to able to deliver small platform do just whatever

said, And bullish so, bullish seeing. the continued we primary businesses second a about given we’ve tax, ago. confidence our that at and to that and than With it’s started across experiencing the level areas. given it One, your be the Company by it’s the opening question an was based is that who improved we’re results on; is around to our And we how. two strategy, then, and and on we’re particularly, focus that driven quarter

are with Latinx we’ve two, confidence ago we focus So, of is, TurboTax Live. which serving on and and more really the those serving after the serving And doubled looking investors, market, underpenetrated. assisted years who going then, the market, are for that on market, self-employed we several all down

do confidence although execution, trajectory. informed our have to guidance And are our really comps, that tough in what provided. last And our that’s comps so, we the compared we year

Michael Turrin

Thank start Certainly the it. all clear. a That’s year. nice Got you. to

Sasan Goodarzi

you very Thank much. All right.

Operator

you. Thank

of Our next Jennifer Lowe question UBS. from comes

Jennifer Lowe

think was has drill XX% subs. the And pricing lever. XX% to around you wanted strong a at with pretty exited in Obviously a because ‘XX on impressive number. growth fiscal pretty Analyst growth been Day, I international of I the down

that you’re So, just decompose success count improvement can an seeing you of the maybe versus break of sort subscriber of in continued XX% just that there initiatives? components down that How the or potentially much on pricing growth? is

Sasan Goodarzi

you. from both. Yes. we to what hear Investor It’s Hi, consistent at Jennifer. shared Day. Very Good with

that Canada. And in really acceleration we’re in continue France, UK environment. the some focused like We even we’re strength and see of current the on, Brazil and seeing emerging this their start to markets

where lot And businesses what created places with so, really, who on Canada us, like it’s pursue pursue with frankly, us us. less also pricing, and we recommending small then very-focused products a we combination and a a us, and with effect about really using being and intentional network in discounting, we recommending accountants especially of using UK,

much And known. to so, we name get don’t have to as our discount

we a combination and to a lot it’s ARPC is discounting. talked to So, is the less And growth. and growth what a very growth it’s we’re do ARPC with about, of which customer similar what selling lot

Jennifer Lowe

for me. Great. And just maybe more one

some on of world that a growthy the while growthier the to companies, the as in process over of So, parts bring curious less then you, I’m business. the with your and of of getting what’s to the of count deemphasize structure? point. summer cost where this specific time at many little the sort businesses are the back groove actions ago some assumption into margin like plan you over pace the just was in COVID-XX, And back on changing took head other and business hiring the guidance, to the maybe some

Sasan Goodarzi

sure. Yes,

like down talent et we’ve that a want operations we’re in experts our also quick context the declared. we couple of And there and a double creating of type success. we then, into we felt of for they ultimately areas more important where customer I talking of and a to bring serving success, that in the bets the both to in in type lot It’s like Just bets modern pursuing, needed but that that engineers, context, talked about in are the customer innovation, have engineers, we’ve aggressively about complex building systems in experience systems our was because of advance, are cash earlier cloud technology, been engineers And those in the cloud. very hiring of we infrastructure areas lots are a commerce, that cetera. it

And just all in we really that focus about guidance I ramp. guidance hiring includes basis hiring talked is our about good of approach about, feel of margin Michelle provided. on And the would points I expansion. we XXX which our embedded all the think, to So, that

Operator

from of next the of Sterling Morgan. line question comes Auty JP Our

Sterling Auty

Just question side. my one from

talked the an quarter from of terms from did update, give headwind impacted quarter you what quarter’s rates revenue. renewal the about just you this previous Small in Business You through in Can franchise? this rates us renewal see

Sasan Goodarzi

Yes. They’re actually our from or overall, Group of along the is, on headwinds point couple acquisitions the that a reasons for for exact shared and months, buckets. plus the our year the impact price the same deliberately, probably growth the Business really rate the see we retention And saw our by lowest in be Investor second actually as will impacted quarter of effective quarter the for those timeframe. lapping action you is, here. is the One just I May increase dropped points what same tailwinds what in three -- That, Small mentioned. taking view that at a Day, we based in are the April, not price March, with

out don’t we quarterly a retention know, once share attrition you and at Investor As break year rates. Day. We

So, it. those drivers of the are main

Operator

Thank you.

of Brent from comes question next Our Jefferies. Thill

Brent Thill

I about you level that you if the and And just then, continues. you��re just sense had SMB the seeing a talk that recovery of quick you’re that could follow-up. Can how give the have Sasan, in conviction progress? a us shape just seeing of you that

were full set opportunity your on TurboTax You the showing website.

your this for opportunity to outsource solution you Can the to it. everything seems through Thanks. year? in that terms you. walk removed You It intentions interesting of just really

Sasan Goodarzi

to Brent. Good from Sure, hear you. Yes.

companies recovery, still several terms lower. volume is quite with most our but levels, several shared charge shape lower. it’s In still Day. of are Investor to at of The what the consistent pre-pandemic the points of -- we is payroll indicators May points of actually number running back

So still although levels. are is reality things recovered, things the have below pre-pandemic

have it’s confidence, platform in think, how we how we seeing are very we where platform. it actually innovation now our -- is the I delivering benefits is resilient plus these how customers is times, that really Brent, tough for the have across more and

And how we in and six has seeing is much question, platform shared impact segment playing recovery to the out last transforming you point assisted just turn we’re to of our when more actually get not even -- think there Investor are an the expert gives confidence, what to from may So, do come, your our to and is want at and time, changed about standpoint, actually taxes and seeing helping confidence. one at hit choose a they review with second confidence. us what weeks Day. To them, it a in do really themselves. those the gain their talk return customers button their to that But, to innovation

testing last the launch the a our do which may And there in by from help coming right way several that to and And start which offering -- is taxes choose So, around decide, TurboTax to come my actual those the know have beginning is may I of Live that corner. to lot the are off along bat. all of you with those were the an as pick way months. and you platform this the those we the then, what, plan just want what for is actually tax season, me, capabilities right

Operator

of comes Mizuho. next Our Siti question from Panigrahi

Siti Panigrahi

million of I terms record of business ask XXX,XXX. this recent a in are want to X.X just QX, we new versus number seeing acquisition. think, you customer census about saw of in QX I small average data, trends creation, Because data, there’s

So, customer. could I potentially be guess most of QuickBooks these

we should this new customer the of how this trend think opportunity acquisition? So, current and about

Sasan Goodarzi

and from question. good a to Siti, Yes. you, hear really good

some is new shared, key of benefiting actually the few actually payroll. of there mentioned, business but a from below they’re metrics and more formation. still volume is we’re that’s nicely, rebounded one quite which recovered are quite pre-COVID I have that nicely, As charge our Acquisition levels what and you like

some that’s above from more in and is green, that probably we’re of that So, probably them metric the of benefiting all beyond and a recovery.

Operator

Zelnick question Suisse. Credit next from of Brad comes Our

Yaoxian Chew

new specific the solution, Hi, This and question. Brad. but list Commerce the when for that of process of around service. anything areas and market seen is I everyone. it for it discounting. of the more here, specific other your adoption, want first like you shows of It’s for you’re on XX I Thanks like sounds as the I my mass philosophical to it’s go being monthly bit website, around guess, discounts but software also never here, understand thought a before. topic for and price what’s little QuickBooks in Yao it’s thoughtful taking my a in months business? XX% optimizing I’ve especially

Sasan Goodarzi

intentionally top good customers on say. against from Yao, customers good Sure, Two that can that of I in One expectations, given Interesting the one just of we very can use that would bring just question. for ensure we to the Yes. things change to hear launched customers is, deliver qualifying and funnel actually and only we’re are their very me we to qualify thing they to bad, so go is so top seeing answers, back funnel it enough, they their it. the want literally the we platform.

high. the is So, quite demand

may models, think, test of a business different that into fallen have I different testing, pricing. our you one things lot of we’re cells. There’s different

fell exactly into, cell. know I into test a So, sounds you what but fell it you don’t like

Yaoxian Chew

Got it.

Business to growth The sorry, QuickBooks other bit I Small XX% I’m scenario guess and there. around the -- X% the

creation upside factors or government that model? business Just flowing that in your stimulus to that help to thinking -- hypothetical a may how downside, or about how about package, exogenous churn result through does does and think

Sasan Goodarzi

of It’s really what driven for between different, every not you business a of big low longer intended, Yes. out The end seeing, of going to is fitness I’ll how -- no I state the be businesses. restrictive little longer is question, becomes which from is element one into if guidance. not to them make a center, a small now we’re going say, the how all the difference of on would becomes, is beyond really which range not. go hit or outside. going country it’s states your x the you the a restrictive The is no it’s stimulus, stimulus pun can only guidance no although

You can’t go eat inside at all.

schools New closed the York schools Now like just public again.

economy. everybody local go the from to has to home. That implications So, has

feel we the the say quite it. the how the of trends impact end of confident we seeing how about in So, is and the and I high that businesses, right execution. the That’s on small our would end -- experiencing low And course, things because is get guidance then we’re thought now. restrictive more

Operator

comes the Our Ramnani Sandler. Piper of of next question line from Arvind

Arvind Ramnani

see and approach if to years. up looking increasing the to of changes recent over -- Day I are you just do kind really at Analyst I the one of I planning per focusing of it on of customer. picked kind really that how to tone want to next something increase was your that revenue customer, you’re just per couple wanted revenue to was

Sasan Goodarzi

Arvind, you. Sure. from to good hear

Let cutting me out. question the were play make and you’re that I’m question to in your back because answering to want asking. just you I sure

talked question how was, just to plan wondering your correctly? we Did you increasing that revenue we customer Investor about per achieve were that. and think, play I back at Day, I

Arvind Ramnani

Yes.

Sasan Goodarzi

Great. I would say a messages. couple uber of

that because delivering customers after team The the is, of the benefits from about and care the that acceleration going the it’s that’s incredible really innovation first one most. of innovation

larger the the that decompose is not, per When at is. customer. of increase innovation same the Advanced, TSheets but examples, with much So, couple payroll, revenue I themselves and impact -- Payroll per QuickBooks services all revenue potential the services comes it payments, QuickBooks with the revenue more and that serving there’s share to and Advanced. now And the QuickBooks does the it to needle then, services, Service, with go the customer. provide, revenue go with that deliver when look customer the an The that opportunity the within customer. is And has with we of what move Full QuickBooks and which Live, per also volume services comes at customers, course, services TSheets rate, per the is, and that you would these has Live then, if integration of I a

So, when those delivering revenue the all innovation per customer, is drivers together, is those the by team increased for of biggest which driven are you customers. put of the just that

Arvind Ramnani

big me. second CRM transformative relatively we your another offering? it be driver, quick question of is expect differentiated a for terrific. or just is proof this just How revenue Should new to solution? integrated a point growth Great, And

Sasan Goodarzi

and platform. benefit because when it’s our HubSpot you CRM think, and important larger customers employees, solutions. even customers Advanced And XXX are than about looking like customers They Salesforce. talking and that I’m these just another QuickBooks about that. XX innovation you’re Again, to on between think assuming -- for I these are for

I’ll quite invested example, we an So, time integrate. deeply HubSpot a with, as of use bit to really

In was a customers. the reviewing for fact, our I really cool demo ago, several days it’s and experience

QuickBooks is and also Advanced, to customers. So, customers existing it only just our -- this not us and penetrate but get with us serve allows new positions

Operator

you. Thank

the Scott Oppenheimer. next of of Our from comes line question Schneeberger

Scott Schneeberger

on shift I mix elaborate QuickBooks you accounting. was Michelle, the please if or Online hoping, in driving Sasan could

primary foresee If in a sustainability you little could deeper, there. delve and Thanks. drivers you

Sasan Goodarzi

anything Sure, if Scott. shared she can in, very what Arvind. jump wants just to It’s with I there’s in. that I’ll similar and Michelle jump

First headline of it’s that with all, start sustainable. the I’ll very

that then of And driven gets QuickBooks you just mix allows We’re the mix that and to with the example, a Live, one these platform them And come shift. it another started. like getting gets and payments is and TSheets, us an QuickBooks apps when at like look both with -- drive by HubSpot, as services, payroll Advanced.

those desktop, customers examples. the years opportunity opportunity so, serve we’ve these just us that served have we services that really QuickBooks businesses product-based to desktop, an Commerce, gives in QuickBooks the we to And then, for now which have on product-based Commerce. million serve are And with

and want we we the names goes the the I those more countries are and the expand customers where services experience provide because And as that much prices and at viral, Canada one there, have say we opportunity like would to out and therefore, then, are get our to is an drivers. higher use have it. market don’t to So, UK, discount the product fit, last

are of quite and mix those ARPC shift durable. shift, that’s the and drivers So, the the

Scott Schneeberger

And things just you seeing, then, as do Business on things speak of guidance and a the feel lot from you’re and to of around anecdotally, discussion confident But, can to heard that what the a follow-up, failures. Obviously, are of that? the enough some give we’ve curious, you in points extent you well. good view as corner, stimulus I’m is feel that to economy the just just Small

Sasan Goodarzi

Sure. I say. things would Two

thoughtfully and retention failures about two we reduce levers experienced. our the country that And will to health of important largest are got a we health crisis, lead the the we for the unemployment. talked dropped and through will think, actually the Investor to the Those couple this through bring at is because of because leading lever impact small most I that enable back Small jobs globe thoughtfully businesses crisis failures. points as Business Day,

crisis, getting I fiscal two think, that health but of a long-term to health businesses. a lower to more stimulus going is not with of back levers fiscal along those just the really I out unemployment plus this mentioned, and ultimately, stimulus, stimulus, money drive getting small

Operator

next question of Evercore. Materne comes from Our Kirk

Kirk Materne

if them. commerce, CRM financials, of bit obviously for Sasan, whether into the added HubSpot. was I this deeper now businesses mean, shop. maybe wondering sort dive obviously and expands your small you could announcement looking have you and view you you just I marketing not And one-stop little today on bit are or little a of a a with into more guys

to finances due through what customer I sort there our want us is been to a one do faster to commerce. through it we only And is because vendor business like. Thanks. you’ve manage that moving think in to getting seems So, like let from COVID? feedback help market is, you way that’s that acquisition really the of mean, this the

Sasan Goodarzi

Yes.

You’re after. more are the on would that very customer I pain focus we welcome.

traditionally, really problem grow; customers of solved businesses. of help in we’re two, well. on not be to focused we’ve one, get things to helping customers more One and able even Because to grow businesses, our is, serve them service-based and that the the product-based

solving example our can We capital. an access can grow your -- you help you can HubSpot, with paid. of business. do problem with with We integration this help can so, with you give we you We time And the platform, payroll. get Salesforce is of We tracking. help help can really to you

now and business. be able set multiple we you run to can your on course, product-based up Of help channels different

customers solve So, not because tell that’s creating able shop to be on not business? help for you being it focus said, where probably than several really we’re we my problem. and The platform applications anywhere problem. customers need can customer focused more to to hear very business. you customer that ward the to how following that their in the the just hey, And able my some preach more seeing where we’re it’s one to at customer I integrations Can us, need be on to building those customer-back-driven. So, the you run seeing our do solve a I And more more now a thinks. thinks, are -- and it’s use grow else. me? point me more things of us with platform of With let’s begin one-stop to it cloud is, the go And to the don’t we’re are the years to Intuit wants out

to You to freedom. you early do business financial and do are truly taxes, we’re We thing platform where entire the access can same financial products you the right paycheck, on your can on platform, get connect your your a which the exactly looking that run consumer is reach for want our consumer side.

do -- to it’s is trying consistent for really it we’re what so, with customers. Company the And across

Operator

Kartik of comes question Northcoast next from Our Research. Mehta

Kartik Mehta

economic you’ve think in. tax or talked season? business different? points business, about the the there’s QuickBooks Do we’re environment obviously some be not same raising apply price Sasan, for philosophy and And to different prices, would do you that the upcoming think considering you business available will leverage the tax is and

Sasan Goodarzi

have small you. think of now disruptive, couple in Kartik, good from businesses, would Difficulty] alternatives. we are this about hear to higher-priced and and actually a dimensions. disrupt [Technical Both, offerings I they that Yes.

your to what And have Live, to opportunity you in QuickBooks than look much home and lot agent. you when that enrolled somebody’s have get taxes we are what customers at a bookkeeper disruptive Advanced, their to of or the TurboTax So, Same with Live for lot terms than pay have Live, they goes cost price but done. actually store directly look with less is a actually go yet price QuickBooks pricing. a they we at QuickBooks find or if thing where can at to with pay lower alternative going a own do of

think do not we So, the segments alternative. disruptive because increases, lower customers there would it price there the I will price the far of very we’re customers we then where may about segments way I but certain is, environment, think actually and intentionally, given are of are

So, that’s the about way internally. think we approach it it and

Operator

Our next Goldman Chris from Merwin Sachs. of comes question

Chris Merwin

the getting I guidance time. for to XX% think, and we guess, back look assume ‘XX at about a we you growth as all I whole Ecosystem if Online the over talked And segment the desktop year. maybe getting for this QuickBooks Online. back I would the trends very it growth are sounds be think, buy Online much on track It wouldn’t for coming like is high-teens QuickBooks flat, that

curious how So, Thanks. about segment. back for over progression think that we XX%-plus time just the towards growth

Sasan Goodarzi

Chris. Yes. Sure,

the have; continued First of to now portfolio over innovation all, two growth. levers. you back heard intention deliver time businesses. every will we as revenue XX%-plus by to to And get have our it’s recovery really mention, and One two, online is, happen small value Michelle to we of and that the

And our not make that health back this we Although important crisis to of place to of get to in sure we’re a get through healthy I that know is informs that resilient, back unemployment be provided. we that to need down out will And get the we of that more to this a and what has economy. economy to of allow XX%. and platform it’s pandemic. innovation think, terms to better a us get And our the getting lot combination guidance the and demonstrated

Chris Merwin

is say, or some now. relative Advanced maybe Are right to your SMB? curious customers you in upgrades, larger relative how that to to that holding Okay, system on strength business ask terms great. doing you’re -- the how current mean of QuickBooks you’d the Just seeing in quick the about follow-up. just not And the you. I that’s Thank one case? I expectations environment. in of characterize then, back wanted seeing just

Sasan Goodarzi

see they QuickBooks and are their able we’re business. I and customers, actually of Yes. upgrade say that’s that XXX% you bunch actually have manual to year-over-year. both, in Advanced grow XX,XXX advantage that apps it’s And existing would we At different if about we a using seeing have now we’re customers talked seeing processes. to Day, been And it Investor QuickBooks be new and as Advanced, use customers to recall, come doing they customers, an well. and growth

business we’re alternatives, -- can my we seeing benefit COVID of So, we’re terms deciding, small accelerant. of know an especially especially are because the and cloud, platform actually me disruptive environment. price disruptor, no the running the to what work. you is that need that’s to going not businesses manually what, are seeing longer any a versus of in And I because those And actually to it’s QuickBooks holdbacks. move do Advanced a becomes

Operator

Our Millman next question Research. comes from Michael of Millman

Michael Millman

like million -- pay return. no dollars, zero So, about trillion, if T for $X.XX correct, was I’ve done XXX the there’s that’s or who about taxpayers a numbers roughly TurboTax

this money? to kind with this -- of about funneled money of dare kind of there anything you something or get opportunity doing anything? Credit and think this Maybe now up this. of into all if can don’t wondering Karma say, you, with Karma Credit that’s you earning doing Just us the help some IRS you’re fool maybe stand kind for Does what

Sasan Goodarzi

Michael. Sure,

me take Let a to this see your shot addresses this at if question.

people serve those place million somebody But, see there that that where their price the refund. at to platform the maximum customers much able help a convenience their digital to a bring huge we to office and that can or provide home with of the them need lower a be get they to see confidence opportunity of just a the done. to to opportunity. they we taxes billion First is to those And or are look $XX do get large spend way have XX done. very all, We we more at it about taxes their else at about go

we that do opportunity do. same see the you So,

you but Live what are figures than were a our platform. Our that’s what we with really articulating, are pursuing bit different

Michael Millman

to. Don’t pay money. of that was I kind Invest no of need you refund. than actually more thinking

Sasan Goodarzi

got Oh, you.

data It’s what cards account, right the advice, financial choice The to them wanted help them want because access that way, the It’s be that. provide wouldn’t like to by give that their expert want to we and permission to consumer more choice understand finance if high-yield it Plus, have insights they choice. them their they our early to are with an so put they is tax their we I they using purpose to choice also consumers paycheck. want which they can some savings when That’s refund, smart help if what them, with with Credit tax to want get. in give we them. able actually to access for decisions. create give give Bet them To loans their will our otherwise really of vision give Karma three, what fuel And and of is we to to and to about want whole unlock a vision. platform our that’s their early money refund, where think, to comes them if vision you’re in do a products asking. And connect to get what of of it. course, with Big can to want I excited we and credit that -- ability to insurance do we’re

Michael Millman

a payers get a of refund. more saying tax -- after shouldn’t refund, thinking you’re rather you than So, there shouldn’t be

to money it that using IRS? should than productively You the be lending more

Sasan Goodarzi

refund the the of money. Well, Yes. consumers’

and with they about is we earned what get their it’s really It’s and it -- So, mission. theirs should they what we’re can refund. help consumer they do refund how money our the with their that’s

Michael Millman

I see.

just Karma? does Credit quickly, include Credit or the that you Karma, is before gave that guidance And Okay.

Sasan Goodarzi

have as another is Credit call. And Credit And Karma. will it Yes. include and update Credit we have That excluding Karma, we closed will once close Credit do yet guidance not Karma. we actually mentioned, because our will Karma, we Michelle

Operator

and with any questions. you Would gentlemen, I’m any further to Ladies close like not showing remarks? additional

Sasan Goodarzi

I’ll And wonderful everyone you brief. that holidays. for and we’ll Thanksgiving to safe wish you. speak And questions. everyone your a celebrates enjoy you your And be Thank Thank Yes. very Thanksgiving. soon.

Operator

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

Intuit (INTU) 19 Nov 202021 Q1 Earnings call transcript