INTU - Earnings call transcript Q1 2022

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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 First Quarter Fiscal Year 2022 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 of I Watkins, to turn Vice Intuit's Investor now that, over the Kim With Relations. Ms. Watkins.

Kim Watkins

Intuit Call. Thanks, to Latif. here Conference our Intuit welcome Goodarzi with On 's First Michelle Good Quarter Fiscal CFO. afternoon Clatterbuck, CEO Sasan and and XXXX

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

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

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

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

Sasan Goodarzi

Company, start prosperity Thanks, And fiscal of the XXXX strategy in our small strong We're year businesses. all the across thanks to of to off you continued of Great. expert consumers a Kim. global platform, given AI-driven today. for joining becoming us with powering a and momentum

omnichannel and a shift by driven addressable digital to include money a to online that nearly offerings. acceleration have We billion tailwinds market $XXX virtual capabilities, solutions, and digital

with self-employed revenue grew million, from Group revenue revenue revenue and Group of $XXX including was Karma of ProConnect seasonally line group XX%, Karma. and growth expectations another by fueled the small in quarter. revenue Consumer our record a Total addition small XX%, of Credit in points business quarter and First growth was Credit XX quarter.

and As of revenue of a earnings-per-share both Mailchimp transaction, detail result, cover our and year Michelle are guidance income for our XXXX. start we non-GAAP in operating later. this and to the close the year fiscal will strong raising

platform the strategy Bets problems states our face. are AI-driven and X expert Big accelerating for is innovation largest Our solving customers

We that the in continue and growth well-positioned durable the deliver to future. strong proof demonstrate points success for are

mid-market. to these business of money As Bets smart center progress are benefit, highlight speed people the disrupt decisions, a of Big revolutionized growth, of to small connect to our X examples like experts, Today, be I'd Big small business recent and reminder, the Bets. unlock these across

effects, Bet problem. network decisions. third Big is a unlock powerful proud we a I of seeing data with is am platform the to with Credit smart Karma. money momentum Karma Credit Our extremely two-sided are solving

focused on and in of high products, We in a the our money experts find Credit record are personal financial assistant their QX. right financial revenue creating put and access financial goal pockets, achieved consumers again that Karma insights. helps more

enabling personalized platform, We for a effect. Lightbox all network experiences our deliver continue across members, fueled innovation by our verticals to proprietary creating

of usage for the doubled who the highs average members cards Credit all-time outside approval Lightbox for of Within Karma. partners ' and Credit more cards personal core, both Lightbox apply loans. than across versus Karma on rate credit reached credit

of and Drive exploring credit opportunity seen the we've opportunities We're larger money the with on actively U.S. as a of building set is consumers. personal members to other challenges can Within success pricing. growth the verticals, Karma auto usage-based see expansion loans, save if they cards in giving Lightbox auto financial in verticals, with insurance for we're including loans. solving off

experimented Karma remain integration verticals, Within money Payroll. announced how with We could Credit QuickBooks Karma we and Credit with ' our needs season integrated an innovation and customers with we money. meet Online best last on focused emerging into the TurboTax

launching we're are while helping are get virtual and their creating focused our in for of driving money, learnings, one increase which many providing of we is expect cycle, on Over visits the financial excited upcoming and out, products to revenue growth members, the insight across to we Money user. average our key members to the improved save down frequency our in ecosystem. building trust Given over and monthly by believe access grow monetization tax engagement, experiences money and debt, right frequency the delivering time, personalized to about active Zooming Credit key faster advice. we members pay of time, of continue transaction, season. a Karma drivers per We

volume become overcome payments driven center total our of grew the this online in fiscal our year-over-year offering. fast, In Our An to confidence by grew flow are cash XX% fourth XX% get paid customers, volume small over pay customers continuing billion. for to and businesses than with employees year solutions more Bet capital, customers an customer small business increase create helping with in grow manage an XX% payments world. we growth to challenge. of is Big omnichannel struggled our innovate on $XX to payment by and get platform to XXXX, using

engagement Upfront, just continue cash payments, get qualified soon To higher paid used Paid to for nearly who've - innovation QuickBooks and Get Online. invoice usage those that recently our compared times a using help to engagement is customers game will of we customers their innovate platform, changing introduced and after we accelerate QuickBooks of As X customers set. our

Online with business Advance, XXX,XXX in traction growing customers XX% to mid-market disrupt strong with to QBO up fiscal Big year XXXX, year-over-year. Advance. fifth Our is with QuickBooks small Bet seeing We're the

Big future. believe well these month, our to significantly Bets, this of small Getting small mid-market. accelerating results game for customers our most We're and confident the ecosystem us business which Xx durable the pleased closed for and Mailchimp. to They with services ARPC critical I'm mid-market X bet: customers QBO As will to of fueled serve we that we business remain to we're further plans the growth Mailchimp. we our the Across move we're the a and growth, of in acquisition Big than continue higher small positions remains needs, significant the be seeing in engaging up-market win. and and for disrupt is momentum delighted building center which ARPC customers. seeks be earlier to innovation, This all by closed and Bets, that accelerate paying-point a businesses. our

to to their run well are way customers becoming We the them our business. grow of help and for our on truth source

We have X acceleration priorities with Mailchimp.

of deliver help to cash end-to-end their customers and experts business, ' customer growth place. compliant market vision manage with pay their paid, an manage flow, customers business to get First access priority is employees, platform fingertips, capital, one virtual relationships, at get all their on online, be our in their

QuickBooks to magic with happens. and from positioned for mid-market are Mailchimp Intuit and and data a their to insights an mid-market This e-commerce part businesses grow from CRM, platform automation, growth to is deliver power to of accelerating customers businesses run use suite mid-market by developing to mid-market we go-to-market price Second, small family, marketing need their data attractive actionable they holistic combine business. with point, the And enabling third, grow Mailchimp now the their enable and real With global confidence. full the disrupting uniquely at customers customer of purchase to the the where approach. a

increasing culture. opportunity equity, even combined in technology the our across platform work, and take percentages of interest focus ahead. are to are already our done. roles Last strong about our technology as efforts. inclusion XX% is we I we excited We XX% we Foundational remains teams with us are we've our declared move at to enables respectively our and underrepresented to diversity, our speed, women customers. success Our plans inspired a push to moment progress acknowledge much want to and seen and our accelerate to Company's business. work high-performance and harder achieved with a be The from year, and building and the on hard minorities

communities. meaningful supporting made we've Additionally, progress our

This Marketplace, will carbon small Climate find by XXXX emissions XXXX, reduce tons X and carbon operational climate the metric positive our help million footprint. Intuit than million announced emissions. net decade-long goal recently X solutions neutral go part our by we sustainable Action carbon global greater is to First, businesses to beyond reduce or which times U.S. of XX

customers Intuit also We the the and Los for All XX-year the Company partnership a in Ventures for with FinTech our on community world. accelerate do local prosperity of the launched Angeles businesses. the mission our that team's the recently Dome, economic for work includes and of momentum I'm proud And And consumers announced delivering invest the the small community and to starts we across around Clippers powering finally, benefits Intuit with innovation mission future we home. with startup communities. and that

Michelle. Now let over me to hand it

Michelle Clatterbuck

And afternoon, to Thanks, like everyone. Sasan. Intuit. I'd team Mailchimp Good to welcome also the

me let the results. to Now, turn

For a first quarter $X $XXX year, $XXX million earnings per-share $X.XX Note non-GAAP long-term of net share on $XX a last $X.XX and versus last million year, revenue of of that we GAAP operating other $XXX GAAP billion, ago year. investments. $X.XX versus diluted operating Fiscal million our delivered million versus non-GAAP versus include of the $X.XX earnings GAAP-diluted million gain of results XXXX, a $XXX income per last income a of year

the small business quarter, group, revenue online and ecosystem XX%. business revenue XX% the the Turning with to grew during segments; up self-employed in

strategic within of With business small the small and being the self-employed expand Core, ecosystem, the grow source connect is and truth for businesses, globally. focus aim the of our three-fold,

to in effective fiscal mix continue XX% shift. mainly revenue and we Online growth, Core. the accounting customer First, on QX, focus prices, growing QuickBooks driven grew higher by

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

added revenue growth Total currency believe better X% the success we in This to globally place over basis. driven digits, and measure during fiscal our the ecosystem of time. by constant XX% expanding driven grow Ecosystem QX. expected We grew we on XX% Ecosystem customer increases of strategy the to health QuickBooks revenue growth, expect first put revenue Desktop year. online Desktop of and the organically is is in grew online by to both best which a revenue high-single and revenue progress our growth growth grew Online in late Third, quarter. last customers strong XX% price Enterprise ARPC. XX% international than

for revenue to year. growth be headwind As offering, in a we which a a second we to to of year's this Desktop model the this the transitioned fall subscription reminder, half expect

expect We to business the decline longer-term. Desktop

in QX, driven by and record active million revenue $XXX onto users Moving was another revenue monthly Credit of monthly revenue active Karma, per high levels quarter, user.

Within The the Credit developing driven and quarter, record strong money loans digital in cards. another and achieved loans our of also we're combined core, today. auto vertical by loans. verticals driver offering, so growth we large not the another quarter, on momentum the saw reflecting home in strength personal by Karma a And revenue money, part focusing is innovation emerging with this credit

across investment pent-up in Group core We strong with QX ahead. by million half sometime in the Consumer fiscal of a our demand year revenue opportunities our to line about the expectations. in We continue partners. of taper was second remain the excited $XXX XXXX to after verticals of expect

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

ProConnect As was our $XX the also the with in million quarter Group, line of expectations. to revenue in

remain revenue dollars growing financial faster revenue. Turning to organic to committed income double-digits, and our operating we growing than principles,

we opportunities shared before, capital take we return time. platform the we As that an greater cash margin expansion investing see opportunity the disciplined in into as management, approach expected yield I've lean over on strategy, investment a for XX%. our We than to generate

an long-term decisions reallocate to our commitment. continue priorities resources platform. These and our top to guide on becoming expert with emphasis We remain principles an AI-driven

finished new cash On dividend acquisitions and generate the the revenue cash of in the each represents the the our market approximately for Our year. customer versus We our that We our We priority last $X.X Board entered we approved fund to our Xst, consider a on in billion and loan the at XXth, Mailchimp dividends. November excess we in business fill balance agreement to the per share in billion can't repurchases invest investments aim to $X.X product This XX% cash shareholders and to growth. Depending out January We quarter $X.XX be accelerate on via credit other market investing a XXXX. to and quarter. business both our with profitably factors, is quarterly growth into we under sheet. returned term credit first first share is roadmap. The and increase a $XXX repurchased quarter. acquisition. conditions million partially arrangement during payable drive

XXXX stronger Moving self-employed year on Mailchimp per the the small to earnings than our expected full-year to the revenue income acquisition guidance, we and reflect business and non-GAAP fiscal and Credit the are raising in both of and share operating to start group Karma. and guidance

updated XXXX of Xst Karma. full-year $XX.X revenue as guidance Mailchimp of Our XX% to includes including November fiscal and growth to $XX.XXX billion XX%, of up a billion, Credit

updated small per earnings to XX% XX%, This of and of from GAAP Credit from grows to billion, XX% share XXXX Mailchimp earnings Mailchimp, Excluding of to includes $X.XX of and to growth to $XXX $X.XX billion. business billion prior billion million of up self-employed XX%, XX% XX%, revenue $XX.XX from to the for of $X.XXX $X.XX, per $X XX% to fiscal Karma $XX.XX. segment $X.XXX revenue expected $XXX organic non-GAAP XX% up to million, revenue to up our guidance of share and guidance

time. see As to margin drive I the over leverage and platform opportunities continue we shared to expansion before,

Excluding Mailchimp, approximately our margin XXXX. of expansion to fiscal non-GAAP XX operating points income continues guidance in imply basis

Mailchimp fiscal is to XXXX. in non-GAAP Our transaction earnings full-year guidance per the Intuit assumes 's accretive share

plan an However, margin invest the reflecting impact in in points approximate of as non-GAAP Mailchimp business. we aggressively basis we expect the operating step-down onetime XX to

expansion margin new our line this operating principles. with over from We level continue expect in to time non-GAAP financial

income stock-based compensation of GAAP acquisition million includes Our with guidance associated fiscal approximately operating XXXX $XXX for the Mailchimp.

Karma fiscal the drive XXXX. the expect these to operating are with we investments our a And along Credit rate in long-term of In decisions compensation tax stock addition, and confident GAAP We're are income attract we includes talent. in of retain guidance impact the to GAAP right acquisition growth. making XX%

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

our details that, find And fact guidance our Sasan. it and updated and QX in to turn press can You release sheet. XXXX I'll on full with our back fiscal you,

Sasan Goodarzi

Michelle. you, Thank Great.

platform consumers have excited what of serve We are I'm start this powering with our strong quarter small of our prosperity that's businesses. ahead off the to XXX strategy innovative to million year this AI-driven Company, opportunities across the momentum for given about continued a more an and I'm expert employees find accomplished proud being new than and customers. to our ways

to let's Now it questions. open up your

Operator

comes you. Thank Guggenheim. first Instructions] of [Operator Our Wong question from Ken

please. question, Your

Ken Wong

Great. very success of the Thank has Sasan, Lightbox much. impressive. so been you

look that there into terms expanding do within is could that other are Lightbox verticals to are then verticals. quantify core integrate to your way appropriate adoption potential we wondering, What vertical you in of Lightbox? on Just adoption where touched and what a credit think like? you And of into

Sasan Goodarzi

question. the for thanks Ken, Yeah,

talked we made we've in year-over-year actually terms significant progress it of as at of Lightbox, terms penetration. about Day, In Investor

we Investor had a compared and Day personal XX, we at before. XX% of talked opportunity significant penetration One, XX loans in about and penetration have XX% credit think we what year cards ahead I to, is us. I think,

investments. think as are payoff equally which what financial their if I more, important, not the seeing, is is really for institutions

really, this an And opportunity penetration. joining platform so, are increase the institutions significantly us, more and more gives and financial to

give the think I the way probably I you that's would line. punch

in think, than even Our and an lower than I just other cards personal credit example, loans verticals and penetration less as X%, is, are that.

are we of think penetration, for of think our gives particularly with about I and with build a partners when are penetration. and we significant building the Lightbox sort ahead trust the an us you best trust us are members, Lightbox, years opportunity our So,

proof other we your terms loans not around In further we won't expand points one are Lightbox our areas I and auto of Lightbox. question expansion, expand that until it can just of where we've about where publicly. talked further are today see example do can we there

is for really members, and that investments network now this of really positions effect. years think us create I to deliver XX this partners,

Ken Wong

you, if I to in versus that three-quarter us When XXX, might way last color. one it. I what Mailchimp a Appreciate number XXX, for help then, sneak could at growth look any that have looked like basis the Got Fantastic. And on Michelle. year? understand

Michelle Clatterbuck

we aggressively see to to that. really there forward. Yeah. going growth let Their Ken. I won't go the profitability, back as did going we're new pull to And It know they so really We're about do paying Hi, the excited We're their we and to be they look during that great Mailchimp. marketing think pandemic. things drive their impacted see decline user forward. but we were some churn happen would together. on their And growth their of investing some overnight, as and some revenue negatively grow preserve we're about opportunities we did their we too. spend could excited to

any given really on additional was previously. growth what haven't We their details

Ken Wong

Understood. very much, Thank Michelle. Okay. you

Operator

Thank you.

of question Stanley. comes from next Keith Weiss Our Morgan

open. Your line is

Keith Weiss

post to impressive help on know want you really I taking attach in higher the picture rate you Is of to attach in 'XX boasting in the understand the into QuickBooks board. thank really with pick impacts, Advanced. us quarter. dig on just calendar focusing that the just the much Both for Can overall customers starting QBO comes from level that how your guys that rates? how to improving and fundamentally the you business? reflation macro is continued question Online are improve a much It services acceleration there's guys bit. to online -- sort nothing is of across I little and and the subscriptions here. I business the quarter wanted

Sasan Goodarzi

degree, say of the compared simply QuickBooks customer is deposit if and the now new to Live to Yeah, full-service and growth. quarters, all I things lesser Keith, mix innovation our Advance, based Its launch instant majority, the doing not we've our would use offering, traction improved QuickBooks payments payments all, making with on a Paid it like just and previous been Payroll, Upfront. thanks Get to easier for in the with question.

that majority needs happened would we're range say, So, starting customers. say course, of we was, actual the a our experiencing what the is of and I but platform from I started say have portfolio bounce that ago. I back the would would of months the to broad pandemic, solving experience X we to X on pickup, the the and for innovation

seeing platform. performance I think true of now actual the the we're

Keith Weiss

maybe then from And Michelle. Outstanding. follow-up a

You on called business towards out can again us those subscription. the potential a shift help Desktop what impacts you are to the Any from going quantify be? way impacts

Michelle Clatterbuck

Hey, driven I can saw different you by first components. The really What And we it components. was of is, the the X obviously, that tell in about majority growth was Ecosystem X% in Desktop Keith. quarter. X

we single-digits was Desktop growth Desktop and saw Enterprise QX. First revenue high growth in higher price Enterprise some was increases. customer

really what The of year, other Desktop subscriber half and was we XX%. the subs units that is saw declined outright XX%, mix. by Last Desktop grew

in way in growth revenue growth pop get the year, from of do last -- subscriber recognition, subs of that the we because revenue so, you extra an QX. And in

the And through some rest go of do outright. the of so we for especially that all subscriber further We year, an the out see that to growth is headwinds we saw. what growth instead with expect as

Keith Weiss

Got guys. Thank it. All right. you,

Sasan Goodarzi

Thank you.

Operator

you. Thank

next ISI. comes Kirk from of Our question Materne Evercore

is line open. Your

Chirag Ved

both buying guess time filled you timeline? your as do I can this on approach different geographies potentially Does congratulations expect reached evolve planning question For do Kirk. -- a steady-state.? for for potential on more Chirag on and little about companies? Thanks most expand Mailchimp? quicker one-stop And early days, the will you given or with are great it's plan into you expedite centers or customers quarter. go-to and QuickBooks you for Hi, know Thanks plans a how the to taking to vendor much. go-to-market this example, be the shop talk bit so but is think we to Mailchimp separately over the still I the Ved

Sasan Goodarzi

to question you Yeah, goes back we've X that the after I'll asked. I great that it take thanks for you've because question. declared think the the priorities

the Mailchimp the to the QuickBooks magical in really insights of foremost, terms the services come our around data pipelines of one the can that both work and creating First put the connecting of for data it's data, and power a customer of the and really their is together so growth the platform, one number power and priority in hands. building lot scenes behind data

about So the first and platform. and it's all creating growth product foremost, one

opportunity The second a we is to see huge serve mid-market.

doing with already solutions management As a Advance. you QuickBooks we're that financial know, from perspective

investments we're the huge global a disrupt answer need build playbook asked to, actually have I is for and that Mailchimp out want at really a say in this I and yet, investing to think will our Now get and mid-market that last because in go-to-market, capabilities the mid-market. accelerating going I choice. which customers is would you having question -- third is And didn't essence, on we the that

they payment-enabled. So, and of if we'll if able be enabled of to is to be payroll access capital, tools, compliant, versa business but over customers capabilities, all -- all first time, capabilities, The the true. ensure use their And vice within everything to want to then sure to invoicing engage they're with Mailchimp. will that that can want market online, business use and Mailchimp Mailchimp their is they make use take to CRM

nab QuickBooks customers, on the left-hand manage to of capabilities your you, market using item Mailchimp be you your up could the want using being, you're for If available and capabilities side. instance, business start will Mailchimp a and to to end all and

So, we headline make answer I to customers let question. will think, is, the choice your

market to separately. go will We

to will We together. market go

will be We they importantly, That's will is raise all place fuel taking. their success. that approach know to we're one one ensure and there in can place their that power and awareness business, where the customers run the of their data more that

Chirag Ved

All right, thank you so much.

Sasan Goodarzi

welcome. You're

Operator

you. Thank

of JP comes Morgan. Sterling question next from Our Auty

is open. line Your

Greg Jackson

Jackson Thanks taking Great, questions. thanks. tonight. our Sterling for it's Greg on Hey, for

I from actually more Credit I it the is auto side. impact on is Karma. by more And what traditional The it first is confidence, XXXX a or mean, this better-than-expected driven stronger and mentioned -- in of home an And curious, from increased one about performance year is having you Michelle? in verticals, on your loans remainder the the for we're think the bounce-back

Sasan Goodarzi

Thank of XX%. the for at XX%. start you new grew compared Credit year, we our look when Credit guidance full is Karma A to of Karma you Last And I Yeah. going with. of to a the prior couple XX% things for question. would year, year forward range the

are And so, within really the you network seeing better what I the matches has to think of the really platform. really see we're a that back. there power – members macro is for. institutions insurance things But the what looking creating lot platform, are are Lightbox, of that that a are And bounce fact just been and is Financial the getting innovation that on of power companies seeing effect. it's they the

think Karma. remind confidence the Karma of gaining innovation, confidence is look ecosystem Lightbox, we're coming gives experience. the we you Credit the going we're platform, the see TurboTax the excited be here. TurboTax tax and of to I launching this of we're for Credit creating longer-term again, a is technology part payroll is and Karma part macro is Credit the around and comment. Credit experience, investments Karma So, us just all of to of the what of effect is in experience. we're what season. performance that an just in Karma would more us Credit the in And ahead as a environment that of I context is in part

many what about platforms that our that's confidence X solves different fuels with think look really platform as problems, we really as ahead. Intuit So and

Greg Jackson

on Okay, we'll into And the the quarter, great. second the tax business. a And tax be follow-up, end season. then actually, of by the

advertisement up coming spent. is marketing -- So, this on TurboTax on we're time

us can plans we what up So, for as ramp the are on you any budget color that marketing give January? into

Sasan Goodarzi

what Well, you budget, last of not consistent the will to what of durable I marketing going it's with is but seen you've share and couple the Yeah. in very I'm years. in about talk context

need if assistance. assistance that get focused fundamentally how which raise customers you're going be also, how your and we've the And And million us how continue we there's under-penetrated the done terms Latinx, to talked XX assistance. better taxes community, We really assertive is you about, are very to changing in to need see get you awareness your that a of investment way self-employed. the with segments and on

areas. coming you marketing think on be expect really those season continued to We're will awareness. those really up, investments raise excited in you can -- about continue what I focused and the our platform efforts should to our a has in is areas

Greg Jackson

right, All you. Thank great.

Sasan Goodarzi

welcome very You're

Operator

Thank You.

Our of next question comes from Mizuho. Siti Panigrahi

open. Your line is

Siti Panigrahi

Great are I acquisition trend Congratulations. creation to I want business, in about customer U.S. that new you Sasan, quarter. to you the the ask new new mean, business you seeing. I about remember talked lagging effect

the customer or what So, at site, wondering acquisition what's promotion QuickBooks trend you're and are anything seeing on you doing new this point?

Sasan Goodarzi

we shared to consistent Investor been the as with a in like so by just very of health trends that very in few a And talked also would what I see the not of say with that for not the before, has acquisition what we're means the to expect perspective, trends And reliant any you Thank outside the market would that business trends the at before, months ago. U.S. mid-market, U.S. about seeing the across-the-board, those the but the Day, low-end both would of that we're is Yes. I continuing consistent in U.S., talked that about all the say again, I U.S. your with formations. with kind you overly continue. recovery all you we're what comments From we've we question. we new is would on say consistent the and it's and

we're Canada. come were Now, UK U.S. to has on the start that, been say Australia behind I double-click and if seeing back. would to I going start I And think to

businesses Do believe then I the role just bouncing so is, Sorry, We that see say hire within there's they've or starts increase a that and international would slowly the I and in just next in That to small what we've be so, and do start been strength. up behind to international I Do less, that But and will just within budget? expected, that or in But news bouncing back France. next Australia confidence. Do year. the build back. marketing strong will bounce UK bounce back stops international year been and own the UK we'll U.S. is more many year continues just employees? inventory? we slowness lost I for those And match believe, And slower my go the France. reason headline is back.

Siti Panigrahi

That's going great. first Karma -- what the into point base TurboTax. massive are this Credit And see members Do member to using to in you you you Credit a this is the follow-up strategy do Karma? tap are to as tap TurboTax a at year probably into have who question, such not

Sasan Goodarzi

Yeah.

want the do excited lot Credit it customers. are Karma we We members is members learning of and member TurboTax themselves really Credit we Karma, think this and they we're or TurboTax, to of goal our want for the learn assistance. just TurboTax and year Credit using be more they we using do need want whether and Credit a every Karma -- I all Karma really customer to Last every can be what possibilities Listen, to benefits about a going to year was year.

XX we the impact put XX is XX I made context, Investor the of were Horizon we of months Karma X want just actually leaning going excited our because X out be and at nevertheless, of versa of just we're we're weeks almost than investments XX better to Day, really as to we X terms shared experiences, launching think impact months, months our to Credit in framework. in year We being X in X about to terms all the the and to year with integrated in years going revenue plus. months, vice to of it sort nail come. being we're one and and Horizon put we've we're the that experiences, part be to we're But and experience. TurboTax the of months things Horizon within being you excited Horizon it. in about But last

Siti Panigrahi

Thank you, Sasan.

Sasan Goodarzi

very welcome. You are

Operator

you. Thank

Fargo. Michael from comes question Wells Next of Turrin

open. is line Your

Michael Turrin

and expert the I few about we to on We live amazing you, you're a on Thank you've for see now mean, questions on fiscal year. the see this well. there. offering QuickBooks off talked it. start tax. technology, setup We've congrats gotten results Hey as the

any or vision can on seems on. a wondering you like Is led bet you've could like a take you It addition if extends. powerful been expert focused far something portfolio, to big consumer color and something finance add clearly the product with marketing Mailchimp? that to So, that email how even just potentially

Thank love So, to you. hear I'd more.

Sasan Goodarzi

we we we where the declared where words, Yeah, around just connecting to our used platform people that in virtual we're the capabilities many like Michael. because right do that platform. our expert don't onto potentially a and like focus, make business. creating few, is in X been, so investing just your our exploring virtual really just With virtual also expert bet and services the opportunity expert so to tax financial has really virtual the really being question. us the and Thank But can this helping more small we it we to spaces ahead leverage years, taxes. spaces of customer lot them small experts, we of what importantly, experts spaces to their bookkeeping services. are been we I underlying when to simple the we and space. about marketing, call with much have said, technologies, with eventually intentionally, easy-to-use you platform know AI this for their customers mission-based When other confident for platform, serve plus ensure of helping with are a to And the serving great There relative experts genes businesses and run time platform, platform kind now, think have that are and I have expert matches feel the that to right and comes

doing So, ensure experiments intentionally we to we are but that very learn. can

this take platform virtual the I is endless. of we expert with just end think I will opportunities can where

run plans that extend But biggest will And as these the small our of you. then opportunity share course, customers reality, growth now we'll, helping over it other with -- helping with verticals time is However, our of continue right is all their of taxes businesses something us and horizontally, verticals. become ahead business.

Michael Turrin

of guidance not in Intuit before we Karma. are about a come updated change of you. great around talked you terms a you've diversified pockets any Credit that just of the tax answer. We've more there? But historically Michelle, strength of That's the historical Thank season. comments breaking some pattern, seeing through, or provide can just

Michelle Clatterbuck

are Consumer And from a parts pandemic seen been just Group also. first the Michael. we've Historically, And Ans this if also, like of what Thanks, times overall, we're large adding have this. is now the Other growing of percentage more. This historically. that business We're our the we -- Yes. composition of business of Yes. has real hit such adding the diverges done something the a is the Credit one business Karma. also, changing. is

the implications forth. some the recovery pandemic so, has so growth also And after for had and

different, feel little accelerated we're it the to in very excited and yes, business, into the seeing, ready Karma and really of a jump about growth So different, composition is little tax we but small Credit bit is what seeing Company we're and a about season. in good are

Operator

you. Thank

Our next Zelnick question from Deutsche Bank. Brad of comes

open. is line Your

Brad Zelnick

so Excellent. question. taking My and question, guys. congrats, Thank you much the for

effect retention quarter into a during particularly attached increase price your to small had You discernible go skews, Any who in those across business. payroll? the or various haven't from payments impact

Sasan Goodarzi

to X X. mix balance extent nothing price from question. Brad. I'll of that we growth the words and say your expected. lesser the our the price X. that, come would customer of much and you I that's increase kind Thank seen a things. -- in from for the growth should Yeah, continues you Really we've majority outside There's so and of aware be just of what

So, the based expected within no. as our on that we it limit had done. control short we is answer testing It's the

Brad Zelnick

payroll funds have or capture of you do billion on can $XXX into follow-up you something customers the And Sasan. you could a no percentage to significant deposit this doubt to what for Payroll Payroll so one ultimately CK money of I like with this? it. QuickBooks There's traction payees up Credit and with What Got a think Karma with QuickBooks far, more, account. out called you opportunity if believe opportunity I money, seen just

Sasan Goodarzi

know other you. traction divulged We well, you generally of first our -- tell all, the not are would excited. Yeah, than we've I

on that and what many depends forward. a we're lot that we lot situation depend of much and portfolio giving are early part customers, excited we things what on on them providing our of There cohort the their I how the are their -- are certain they As think customers. we and to in customer about move of weekly customers to access depending of a to wages, paycheck. as connected It living weekly learning

access on you live don't paycheck you that early focused live week-to-week. I if versus more to are can much paycheck, If you to get

just that's about excited learning across we're cohorts payroll broadly, get early where to just wages your our and a is both going it to think traction access customers. frankly payroll more we say we over can those commodity. are for would I about So, within Credit Karma. I And this need be and not where it something providing to providing through question time standalone, it's

gives feature everybody think early going is a to wages. that to access I product the you have

about customers our it's us feature, about and not creates the it our that For for ecosystem effect the just it's members.

Brad Zelnick

Awesome. you, Thank Sasan.

Sasan Goodarzi

Thank Yeah. you.

Operator

you. Thank

question from comes Brent Jefferies. of Thill next Our

Your question, please.

Brent Thill

when mail where along excitement of marketing was platform ultimately that there for a clients Mailchimp can Sasan, this terms a for broader bring that plays the most how this in office curious deal into the What theme. Mailchimp and closed website. the is your and you're I'm just were you clear Company, platform and front you up that a selling not evolves. that seeing just play

great. cover If be you that'd that, could

Sasan Goodarzi

Brent. absolutely, Yes,

are looking those I an able where and They their bread be capabilities up their customers. to It's but able into every when additional our insightful and now to in customer, ways Mailchimp. we'll that one products as where as get our for to we our One manage way, Big I butter. Company be them. in have Big customers. this where review review, is get a happened as we're all want each the and and do would are integrate Bet the of even ways the in vice of areas what the we for where where know through where to to to to Bets experience new the going. automated versa, engage, looking it They -- headed. is Mailchimp, sell in of called walked in is They into are actually different can things are, closed that existing Bet experiences the follow learned, and in are, the Ben I take to QuickBooks automated. way customer needs a that we've don't continue getting new Company last the just what it's Big that we everything a through officers -- team XX% more have customers And we're you we tell really Almost a mentioned. the because are one you of our We mechanisms to from QuickBooks place, we customers excited detail, of of and and be where deal of we've And brought our customers have we an we with customers

Mailchimp. that people see of things automated All is actually can of customers, still through we what realize one you get in one the And it do email. through the we is engage of largest TurboTax, don't that ways

all have we now So those capabilities.

who to put that's before. couldn't the the power leading capabilities that about hands put about we've your It's more their our customers. do those success. we you consistent to in with opportunity it's the our power buy, data, with the the of abilities manage customers they have did the who's We your understand with and shopping who bought what That's is help leveraging talked all customer, do assets, what platforms mega to purchase data, importantly, the of product but of digital all card, help and relationships, customer the of on capabilities, email pursue our now the you what, all of and not the how them. work data We existing more excited to you ahead, be the on the

So, stay tuned.

Operator

Thank you.

Kartik question ahead. go Northcoast next Our Please of Research. from comes Mehta

Kartik Mehta

about good that customers, to customers are been and season. have tax TurboTax Hey, already you trend wanted a to product in good terms anticipate customers maybe afternoon this that and Live, that evolving what trends evening, TurboTax new the shifting Sasan. or of I ask you bit how little

Sasan Goodarzi

great a just platform. about an today. that Live that's the X. million XX It's Yeah, assisted it's method one question. use folks us really excites thing There's

folks another. year where Within from they the jump method one every you to assisted million have go there's XX assisted method, -- churn,

accountant within method. another leave, have and the then yourself million to X or assisted as store X So, from an people to that ultimately go they an to the we And TurboTax base, do-it from or X accountant.

deductions those it college, I it's sure change, that conversion now all improvements, home a that the their the they had answer retention if how they weren't are had did kid and a a to TurboTax platform using way the just kid if deductions they live is question ultimately they your to the the right that and We've customers life before did account went or for versa. vice where think seen themselves or improvements. year above. We've they seen where

all use year may Really, back folks lens. it's with I life platform. method then use we those years enough the X, view with this I've a a yourself within and, as largest, that a coming being the we live say, platform it and and and changes we're of of seeing TurboTax, confidence that platform XX-year TurboTax, of the see after then and that the would life do have driver course, And with you onto just now with opportunity continuing bounce may the assisted different growing that trends. you above after, X You using

Kartik Mehta

competing a for deposits customer a and like Credit Credit money Karma. And there very Sasan, now Karma talked any you're issues? wondering, with that about is that that sounds opportunity. on you've question interesting concern me I'm causes says, and hey, just your

Sasan Goodarzi

Credit Credit of are that's power the our ultimately institutions with sorts in of match that have an partners them. that, And we our about intentional platform. products, ensuring lot the how for but all that see not participating and creating of that financial our is members is of and diligent One we that we the capabilities within strategic principles it. right essential an within a had Karma agnostic own And we have a institution Karma product that's it

that concern we a not is have. that So

success high due the very financial of and with institutions. actually that's attraction for say success more members for very, and we it, just is beginning more that Our especially of with delivers institutions believe which financial Lightbox

So, it is concern of not a ours.

Kartik Mehta

much. you it. so I appreciate Thank Perfect.

Sasan Goodarzi

Yeah.

welcome. You're

Operator

Thank you.

of Goldman Sachs. Our Kash next question Rangan comes from

line Your is open.

Kash Rangan

Thank are you Sasan, very -- facing issues get Sasan economy. much. that the Fantastic that I'm the by on Michael. U.S. to quarter, take your and are curious being faced

it got unprecedented undertaken transformation a the supply A labor can as solve problems Intuit product these You've you inflation plays successfully, chain and issue. to problems for dramatic Intuit near-term perspective? do of what issue, think lot these the business an headwinds to Thank pertain shortage, much. so from of small you customers got we're these facing betting business your you've very on AI, got but When that to small ecosystem. do

Sasan Goodarzi

if around it think, it's you're accelerated to paid, with online challenges comment Kash, do I you're for solutions. And time going XXXX, kind a small a absolutely to is forced you it not, going you small the to business supply inflation are but labor those It would and how virtual happened where wherever tracking. shift continuing, way. the don't invoice shortage, question do go I businesses. think shift small whether let's the make pandemic of movement I yourself. how couple the think product-based chain get that it's or your payroll, business, what businesses we accelerated of is which the you wonderful I whether that and I you thank really to just reinvent back comment simply your to how stay a the some starting X, a would broad experiencing. on When And old on say in globe, really, March areas, you, everyone your the certainly all impacting focused

in particular digital to, has offering. money in this mentioned, I course, to accelerated areas I the really shift that those pandemic think of

with that of coupled also -- half but more to we from the I labor get addressed only of leverage second an actually labor that chain to first by will generally job, job think of some XXXX, not supply peers I is the half causing talked get to businesses my challenges small platforms. start XXXX, shortage as this movements believe inflation to

instant if people to fact get tools business that and paid get business as one our that ensure how expert between and the got back the up that forth Mailchimp into follow tools the you're the That's to that your acquire use running deductions deposit, having can you then profitability And multiple you the you to you've you platform. rather upfront, and best you payroll, you should play, use your more you that you so, to and more where power comes platform if customers. fact do can platform, with of can sure you're with can customer can if bouncing bring is, you're I ensure than where and do what an a same-day less when use our effectively, customer, really back not small

focus much and our labor platform, inflation. business as the those to with be of actually use less help on embrace thrust grow possible to our the to able All of are built and is platform things you as to your

our address to overtime, But so address role issues these them. for some we to supply we businesses, have and and continue are comes I inflationary we into of that's educate to well-positioned ultimately, play platform will the get to why need issues. Now, small it believe where and chain play and

Kash Rangan

you increased often profitably Thank future? Excellent. Michelle. things that In long-term are the companies generally, you S-curve, generally an leverage you drivers, these things looking the we drive your what for long could growth but margin in do term? and be we to and much should things so of true so Thank operating underestimate case, X tend in the linear, the in discreet that so the congrats. Quick go How for much. of margin somewhat that is up assist

Michelle Clatterbuck

in having be we customer leveraging I to development to driving of common duplicate expand and platform, and talked as a so the capabilities more about do on more area, serve margin increase this to our also. margins the year, opportunities Mailchimp with go-to-market the that of of where sales step-down But to more more spoke our marketing continue will time, velocity current able acquisition Well, being things that. Appreciate money great in adjustment And we so platform a whether is will see customers, those can in forward. we're success scaling our Kash. it you, effectively across about fraud is and across from common platform to we've Thank though level a the see customers. for effectively in that another then and we new the going believe us we we earlier, manage more over technology efficiently and our really as target able success processes a become also just infrastructure and Company, as services, customer Company, example, Company. across using like and Or the and risk movement the not we

be we across So, opportunities we opportunities the look P&L for number will a leverage all there us that do forward, of see this. as to

Kash Rangan

you. Thank Brilliant. Wonderful.

Operator

you. Thank

Our next question comes Bank from Brad Securities. Sills, America of

line open. Your is

Brad Sills

gained about the the real were with you've this your Do-It-Yourself learnings more guys. to more congratulations expectations your those might, this year being just become please. Historically, points what that offering? of your Could to what I'll question TurboTax the seen year, first I if likely to quarter. has Do-It-Yourself. generally, category. effort? opportunity, a on ask this offering? from full-service this as gain for this Thanks, you as the second With year this nice X% accelerate year last to X intelligence wanted with Great. to X% a potentially successful I share trends And gain with within a are targeting X

Sasan Goodarzi

the the Thank for customers second the customers I a do They point, a approach impact so themselves. we're think has X a the that you really have things. expert, really our all which you you their the and confidence everything they to just One is do would and that for don't answer know utilize, and platform way, for customer want an taxes you. know [Indiscernible], just do can if midstream to you, if ability customer we digitally. Brad. me an if want it halo absolutely if Intuit expert our do say have, questions want me, us they -- it any can need expert they do actually have they what? you the full gets I help, on I big to for to I and/or and it service just to By all is, we'll them which access know for choose to to

who our So end-to-end and true that of any we just platform If can full with needs. change, and power over now now the experimenting all have really has students with they're we've we approach a meet life if several platform is that years the meet had of their they or will of have customer, a time. and that customers start their needs out we grown actually career learning they have where service

has headlines of platform a the, the the we ahead. really as I So effect, say plays approach which answers would halo look that's informed our

Brad Sills

low-hanging there? One to Last that Sasan. business, Karma. converting outlook for Could this With and what are saw upside your Great initially, drove forward? you that Thank nice and in to on are remind Credit saw fruit TurboTax you. Credit I you going more some filers the success may, please, and Karma. quarters tax you what year, where year you that hear, us if just that is that

Sasan Goodarzi

entirely in to And last going it year. mean just really change of that's would year I doesn't put the learning. this Sure. bucket

of Company excited the and nice and We we We're moving innovations new experiences Credit plays to and being eager TurboTax. were a from see have. vision context around year member some platform how all fast, out are on all year, learning stubborn Last impacts Karma our a that's growth learning that to pivoting, there although TurboTax was focused in really take is experimenting, year member we Credit the about we to X, Credit a on in is this at we part part of learned. the and Karma reason the nailing experience back really that experience, to see what the and platform can of the Horizon of monetize. put and over know we're we customer time Karma I'll TurboTax because Day opportunity as Investor is you

belt, preparing months. the adjusting and this under we're these And next and learning of Look, we're excited So, they couple XX for about seeing we have year tax season. play our and in about experiences months being the how ahead. excited launched out

Brad Sills

Great Sasan. to hear. Thanks,

Sasan Goodarzi

You're welcome.

Operator

you. Thank

comes Scott Schneeberger Our next from question Oppenheimer. of

open. Your line is

Scott Schneeberger

very Good afternoon. Thanks much.

--should is First category. Thanks. and quarter, what question a the nice. question. then just B small In accelerate in you Sasan, growth in and growth. you curious how it I'm mentioned very give you of part to we'll little is global summary international, where when business saw XX% Mailchimp the up see Could and just will the in showing

Sasan Goodarzi

Yeah. Sure, Scott. Thank you.

been Australia start based slow like opening the macro the to bounce is couple seen our of certain come our, to international, the perspective. next our Then only fact bit back countries trend economy back keeps places and There some the shutting execution saw of we've more Canada have macro should not a within the environment same last from on strongly. back as very And the have that up that given are but there's bounced really on First we that down. like quarters. year, again, international view a

trends with environment paint in macro performance, over believe our net-net, pleased we're picture we our very time as the the comes to although So, that, back. different

together. grow I the and be international focus the platform Mailchimp there's where fundamental In the that QuickBooks to run ensure we heavily we're we that and global priorities will as go-to-market. amazing right us terms our over a We the because investing build capabilities I can then, significant want of to your truly can and of mid-market. X have be Mailchimp disrupt platform internationally impact where brings We an create want the mentioned. it you to gives our -- say another we're things, that some business get about excited an because to and Michelle it of I foot outside is overly that product And to your that certainly trajectory time would in Mailchimp, our mentioned, U.S. going wouldn't go in to change anticipate want door in and business

Scott Schneeberger

our the that on Great. Intuit we Thanks. curious And push last just marketing the one. of Thank Dome. somatic should big for years. one. on on the think in maybe beat and Congratulations crypto.com But -- I'm overriding few now last the just How scale? just you. big that curious about the Company on

Sasan Goodarzi

used hear this. I you're and think say, said I've Brad this years, about I for would and talk to

and knows think secret more want world I the of Intuit to on is a TurboTax, that platforms secret, it for we and growth. anymore. where has are. the Mailchimp Credit And make connected, learn potential are that data Intuit and hold brands don't that part hidden the positive we our that impact true customers have that the and the We to Karma, what biggest now, world's want learn shows QuickBooks who they're sure our actually all when brand they

way, technology had excited naming a we deals and So, And this and the the years. is we about we think over deal. been be actually really like the excited the what many not, which We've to Intuit marketing up of we're over where and the time, pursued return think same that's dome. for about rights showcase investments to as impacting part on we've And expected going it. We're opportunities we community. pass Intuit to Dome, one us, way we're be That's about why We them it really to bring did will marketing just we be and the be it And We're X. benefits because yet investment we another the forward that to of and this do helping our to brands. one, consumers our very platform communities with it's really market this able that goes businesses. the by can we going the how demonstrate small is. to way as LA, in the local lives it It have about. beyond impact in

Scott Schneeberger

Thanks. Excellent.

Sasan Goodarzi

You're welcome.

Operator

Thank remarks? you. any like close Ladies gentlemen, to you and with would additional

Sasan Goodarzi

prosperity of our Yes. and the once hard questions. and we for call. to you. opportunity we're continue communities, of I partners the see very passionate first Well, time, employees your question, that customers for the work, you all, again, and are to next And Bye, proud to Sure. Thanks Thank our start for just want thank just have our accomplishments, we will powering really We're the about the your for us. we of our customers and strong all fundamentally our incredible everybody. I and appreciate of ahead their Thanks year, at getting we started. earnings our and believe

Operator

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

Intuit (INTU) 19 Nov 212022 Q1 Earnings call transcript