INTU - Earnings call transcript Q3 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 Third Quarter Fiscal Year 2022 Conference Call. [Operator Instructions] With that, I will now turn the call over to Kim Watkins, Intuit’s Vice President of Investor Relations. Ms. Watkins?

Kim Watkins

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

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

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

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

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

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

Sasan Goodarzi

small joining and our the our all to Kim you today. businesses. expert platform execute of AI-driven of of global Thanks, am and I strategy prosperity proud continued for consumers we thanks as be momentum us on to the powering

shifts to our with contributing money acceleration is nearly billion digital the strength by solutions, $XXX that addressable virtual a the of execution, have include online driven to team’s We combined capabilities and market to This, offerings. and performance. omnichannel tailwinds

at unusual season. strong in Self-Employed for Mailchimp. how all-time X Credit high, XX%. of Group revenue including XX%, Group I our Consumer posted XX% with It points And up Small grew tax was revenue in addition quarter revenue the another proud and quarter Third of another team from Karma am up the an organically. with executed Business XX%, quarter another the

are Intuit fiscal and trajectory earnings raising are total guidance in We XXXX. for confident year non-GAAP our and share revenue our business per

We platform now total than revenue expect to XX% demand ever. in as our to more company grow XX% is

Let tax. turn now me to

Our with the This to working. point extend of share we returns Live. to and expect in X strategy and category This category increase assisted to points. is multiyear of the our total transform share TurboTax fiscal category approximately is do-it-yourself be strategy year, lead our the do-it-yourself our X up IRS

once We’re also per return growing average again. revenue

we the Within including in customers assisted the self-employed anticipate and category, make a TurboTax significant billion progress Latinx, from connecting XX%. to reaching growing TurboTax with benefited $X Live. Note people Live transforming double-digits XX% investors expect growing customer continue achieving the under-penetrated We introduction in We approximately TurboTax segments, to with basic free in growth of Live milestone offer. significantly total. and to that year XXXX, grow revenue year, last experts customers fiscal

of We our are progress proud the strategy. against

July XX% seasons. XX extensions IRS We TurboTax This and season the filing resulting number up onetime However, significantly slower overall IRS the fiscal with return IRS through decline of to now growth not X% of was nearly X did to this by extensions X% that filers overall doubling. last year-over-year, stimulus driven is growth returns returns expect in compared this Group total Consumer revenue of growth year. X% expected to returns IRS customers

over flat below the this years. expectations about return point We X year As X growth. TurboTax per reminder, to share growing X an be IRS last of every revenue do-it-yourself expect the point growth average of our total returns equals of a point after IRS of now category approximately year

for performance category us approximately were the we XX% of due stimulus filers, onetime that the weaker customers whom expected is than do-it-yourself hypothesis paid Our was last to season.

but point anything category normal, share over were X X.X last returns the an just per the percentage gained and period, over do-it-yourself of on years IRS of long-term per average the While average year year grew X with trends. consistent

expect broadly, AI-driven X is problems and the strategy Big platform ahead, More returns are largest Bets our more total customers innovation, accelerating growth. IRS expert Looking we solving our normal face. our

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

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

to unlock Bet Big Our smart decisions. money is third

powerful see a Credit strong continue two-sided a solving to momentum network Karma, problem. with where We effects data platform

Our vision that that helps decisions all creating all financial on across better consumers their Credit put financial to by pockets innovate is connect members platform products insights In to us to proprietary Lightbox them more right personalize to platform. are unlock verticals, the to certainty more them, for and and continue money Karma, autonomous right members an we and providing the technology find and in connect partners advice. smart the products, allows money to

and a cards both see remaining Lightbox versus combined members outside high. for continue for apply competitive average penetration the making Credit partners. loans We to our differentiator who Credit very rate strength in on members personal credit it Lightbox of and credit Karma, approximately of approval cards with doubles Karma

Money to our account Credit ability the growth with capabilities These and Credit deposits. Credit make Live earlier experience, tripling refund this and combining to than drive access deposited direct year. across This number We customers products the other TurboTax Karma Karma which engagement to of days the Karma members, Credit more Karma. continue personalized like fuel customers platform get We TurboTax them who over member their Karma of up into X the into success TurboTax their to time. receive refund the TurboTax to gave online Money integrated progress both Credit accelerates

businesses confidence an helping omnichannel manage our growth get and get a customers fourth Our businesses continue business struggle of fast, others, where paid access innovate and single small place by money help cash with with become offer in big to payments, XX% pay pay the this flow, is small to center grow small employees can world. bet to manage challenge. customers, of overcome get capital, and capital. customers paid, we we In

loans Capital, more We accessing volume with customers through at loan more in are QuickBooks year-over-year April. seeing record tripling level, than

driven allows We their their data and access the and risk which permission customers’ expanded discoverability to increased behalf have proprietary our offer eligibility is product. This on in with data models, our use and to rich us loans. to by

are way source to With and significant help business. grow of them for a engaging our In becoming on remains addition customers point and and Mailchimp, for well truth getting our the we cash pain small customers, to their mid-market flow, to run businesses.

Mailchimp. We have acceleration X priorities with

end-to-end with approach. of vision mid-market developing a customer disrupting a growth go-to-market platform; our third, by on accelerating second, marketing holistic automation, full global and the suite; delivering First, e-commerce growth CRM an and

We continue improving with moving on product and we focus speed innovation, as marketing conversion.

First, QuickBooks we launched which real data businesses existing a based within automate customer’s and from and campaigns small new data. to marketing time, where Online, customers tab QBO revenue and send can customer QuickBooks allows customers to on segment lead and MailChimp in

partners bringing in and from their contact We’re Mailchimp also by list customers saving other platforms. time into

Second, we continue marketing. to in invest

in recent paid driving early are across We investments are media that U.S. the growth signs in sign-ups like large customer seeing the markets

product, third, but conversion excited enter we we’re the funnel for the top are as product highlighting to into product financial as opportunities to about streamlining the customers customers. this how traffic And soon in focused our page time results, for to to and checkout look we deliver improving benefits benefits of experience take translate it includes navigation. we potential. at expect as the We on improve This in-product the

Our is fifth Online to the with disrupt QuickBooks big business bet Advanced. mid-market small

can best ranking launched their up, of strategy. row, and is to work our XXX reach on Canada, of strategy their confident our I’m this above our the focused in U.S., our is outside business in market which whole offering. the of that that share We with For environment quarter, our were we selves peers. feel the in lives, creating this remain innovation retention Best year, where geographic an XXst to expanding a work and in we first list employees. starts proud executing the rate During #XX. Companies Work we the Accelerating Fortune’s do employee year long-term for proudly our to employees reflected bring Wrapping the

our our sheet, speed Intuit platform in environment, benefits including important balance macro and for of our strength. our the fundamentals, current business demand to of strong continues more than are innovation In of the the a Our put platform ever. position

XXX We of rely platform to are choice customers Intuit the prosper. million be proud to for who the world on over around

hand over to me it let Now, Michelle.

Michelle Clatterbuck

Sasan. Thanks,

$X.XX GAAP Mailchimp, year, $X.X earnings diluted billion, practices per year, X addition XXXX, $X.XX operating of $X.XX a For we billion the income ago a billion $X.X preparation. advertising no May quarter. in non-GAAP tax into the regarding related in per the million diluted versus General $XXX we Under charge wrongdoing. agreement settlement points including from of $X.X operating third settlement, GAAP our up fiscal versus XX%, billion free $X.XX onetime we State with delivered of $X.X the of On a the last third of versus X, last share billion share quarter entered year fiscal of income This and of $X.X our year. last Attorneys terms non-GAAP earnings of to admitted versus resulted revenue

can we our to to We on this for continue solutions delivering behind so focus us customers. are put innovative pleased issue

have non-GAAP respectively. have and share non-GAAP the would basis Excluding third quarter settlement and GAAP $X.XX been earnings points margin higher, our been would GAAP operating $X.XX and XXX charge, fiscal higher, per and

revenue Consumer expect consumer up as revenue XX, average this data tax There business. year. XX, our proud This earlier July to of grow deadline to our through are prior July Group Turning our we year and return. segments, of reflecting execution through was primary billion, expectations XXXX season share IRS versus the this our business drivers filing the reflects the per gain XXXX. four I’m $X.X XX%,

X% total the of is of below We to about number expectations. growth. point original growth now TurboTax first year, point the returns returns total IRS. Every filed this our equals X returns revenue decline The of expect IRS with

percentage returns The second using of the do-it-yourself filed is those software.

our DIY the year, also expect to total returns be We category of IRS by share expectations. of end the below flat the

is The our share. third driver

expect be increase up this total our in offering year share X prior of premier as free to by mix DIY expand TurboTax X this a users to customers. TurboTax points investors periods. which category of revenue average the point expect offering is to share return, by driven well our and File shift returns Free year, Live and fourth fewer to excluding The as per our We year, we the of approximately used IRS

total As expect customer of IRS year. returns, growth now a including X%, this customer result we weaker paying X% of Online growth TurboTax of the

season, nothing the us to customers. was decline total approximately not decline prior XX Group mentioned driven return just paying our of million in customers We did XX% This over we’re approximately expect now stimulus year. returns paying XX%, that guidance million We to of filers of reflecting expect the over in of year revenue commercial-free by to base from onetime XX% XX fiscal this offering XX% this growth whom XXXX our I earlier. versus XX% of IRS Consumer last

Group growth Consumer XX% expect long X% to revenue continue term. to of We

Turning of grew QX, the year-over-year. XX% shift filing timing to IRS Group, ProConnect the tax in a revenue reflecting in window the

organic million we to revenue Online grew XX% an of Business quarter the year, revenue MailChimp. Self-Employed XX% XX% Group during X% In excluding revenue Group, the XX% or $XXX the from now and basis, Mailchimp. or grew Ecosystem full revenue growth expect on in For Small excluding ProConnect X%.

core, With strategic Self-Employed ecosystem of and is and the Business truth expand connect the source threefold: Group for within focus businesses, our the Small of being the aim the grow globally. small

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

connecting the Mailchimp, revenue, Second, XXX% capital ecosystem. in includes which grew payments, tracking, fiscal on services we and continue Online to payroll, QX. focus time

per in the mix to this $XXX in our services line a payroll, online shift in MailChimp, in Within was million the growth with our quarter, ongoing payments, increase in online revenue revenue full-service quarter volume grew and and customers reflects customer revenue reflects XX%. Within Excluding payroll growth and an services was expectations. in charge growth. recorded customer MailChimp offering. growth revenue

customer of Ecosystem strategy fiscal on and our the Third, XXX% on we XX% international driver ARPC. and increases. and XX% quarter. to grew strong constant progress measure driven success is MailChimp. and we grew the Ecosystem Group. basis don’t mid-teens, in term, Desktop the XX% and a we Online continue basis, by excluding We over Total growth organic both grow the online expanding price to Small a an in QuickBooks driven Longer the growth in Enterprise is for make This to revenue by time. QX expected XX% to better currency health expect revenue customers Desktop growth believe Self-Employed business best than grew which growth, globally. third be revenue ecosystem organically Business expect revenue desktop of X%

to driven a credit per Credit XX% primarily auto in average lesser revenue $XXX revenue monthly a quarter, loans. QX, active extent, basis, product on revenue Karma, user. in to loans another primarily driven was revenue record Moving grew to personal On by growth growth and by cards and million

we frequency Karma We verticals with of are innovation emerging to over the Money, is Credit which visits by time. developing on the growing focusing believe key

account their in excited opportunities ahead. their Money of deposit refund the Sasan year. saw We the Online As who earlier, shared into tripling more than Karma customers number this Credit remain about TurboTax we a

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

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

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

in out XX, in both to cash in acquisitions a approximately for product quarter. return XXXX. can’t growth. stock quarterly cash to and increase each aim finished excess we and via business factors, We versus invest of a priority conditions approved dividend We billion shareholders other per Depending first last revenue that the We The share, $X.X repurchases market to generate dividends. Our customer the cash the map. accelerate $X.XX road investments share $XXX third repurchased consider is and This in sheet. our be the quarter million we growth investing fill quarter. business represents on to our July balance We profitably during and year. the drive our our and on of the market Board is payable XX% with

per momentum to earnings and are full throughout revenue Credit and Moving fiscal non-GAAP guidance, share our XXXX the Karma. in to Small seen Business Self-Employed year on we the we’ve guidance and the raising year reflect Group

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

$XXX tax to to prior million me, growth XX% XX% from XX% to in $XX.XX. XX% earnings $XXX GAAP to $X.XX of per $X.XX. from guidance Excluding revenue, to earnings GAAP from of expect – million prior $X.XX XX% of up from year, $XX.XX, rate excuse $XX.XX this down $XX.XX up of of share a We non-GAAP previously, to of approximately now share up prior $X.XX, guidance of guidance $X per XX%, to Mailchimp growth;

of XXXX Attorneys onetime $XXX related guidance charge State the General fiscal Our settlement. million includes to the the impact

our would non-GAAP GAAP our approximately XXXX, and fiscal margin be non-GAAP GAAP higher, and approximately would guidance. be earnings XXXX points above charge, XXX share fiscal basis higher per expected and this $X.XX in operating prior $X.XX Excluding respectively. Expected

GAAP non-GAAP loss guidance last this earlier of revenue per Our earnings decline to $X.XX fiscal share deadline X%, $X. year of of filing $X.XX the year, of a $X.XX for includes the to tax fourth reflecting versus quarter X% share to and XXXX per

full turn our Sasan. With to and guidance You in back on it can press fact sheet. details find fiscal that, and our QX I’ll our XXXX release over

Sasan Goodarzi

to has our shared Greg Krishna, to of XX, job the Group. closing, him. will excited Intuit’s Group’s Senior Consumer be tremendous Group With CEO changes welcome done Greg for Greg as Consumer happier Michelle. Varun and leader the of mention exception. chapter phase General I Varun Thank President Varun TurboTax become have you, Group’s leading is is years the and General At no Manager of business General Consumer Great. over Growth as the experience our more growth Consumer next in today. release before to for Products, the step May well of to a world-class couldn’t commercial Manager the leadership innovation Consumer leaders of Greg Manager. we for suited Manager Group, Effective wanted McAfee of Vice earnings as couldn’t succeed this for Consumer and for him. that McAfee. driving General known Johnson, be in is for growth. And will down TurboTax, next perfectly developing the same X time, I and business, our I leading Consumer Intuit product of lucky is next

entire the We so small how are customers an let’s given far proud delivered year. across businesses. platform team the with – go seeing prosperity this is I’m and AI-driven of being company to questions. and momentum powering now your for that, consumers expert for continued our now that And strategy of we’ve our

Operator

question comes Thank from you. Mizuho. Our [Operator of Panigrahi first the line of Instructions] Siti

open. is line Your

Siti Panigrahi

Thank you. Credit to impressive momentum Thanks well small as It’s the how for taking as in see very my strong you business raise Karma guidance. and question.

is segment? any in geopolitical given small your and concern So slowdown, wondering Karma of Credit Sasan, how even and in I’m business positioned about also this uncertainty terms growth some macro

Sasan Goodarzi

question sort with profile company’s businesses. revenue platform great there our tax. is the of to at your there, in start TurboTax fundamentally growth part I is business. a to flow. In which Yes, the Thank that resilient of money sort of not when company And just parts, start flight given any and than is small I’ll type important know your would was we very manage down question. I sure. businesses. that center it’s a it’s of for to a ProTax question, sort now you with remind in cash platform break tax of more us of your business, and digitization that are are we you I’ll but an and a both of small XX% look three environment, for

year-over-year. a is there charge very here volume manage of volume that so our And And April. use cash in flow higher had than And strong. loan one, our been the I that Xx would a your and to now, sort be recent our to business stats high to able are be flight was record continues on it’s and two platform. It the

last last And comes charge in those into of unique Credit platform these times, has volume use north the tougher points of Karma Credit this week, of get been in demand when of grows. to products Karma, on of month the the couple would even as on As just our side, terms growing a our of when all, that proof I in and our the for importance XX%. I more times. you it first platform And say demand actually recessionary stats

partners, really about models quality partners our their last they platform, play putting the actually come This that to power customers’ that the it’s Credit behalf need. side. of where a discussion customers I’ve over our they and the with are on the the is Karma have about is Lightbox we flight our is Now flight years fact, in been to the to that supply And of data and on – there kind of the quality. with into couple able get our because talking quality

the of saw we these perfect XX% partners, And so this and be continues the it’s times. past members a why very way, by strength platform between to which quarter match is, of why sort in growth resilient the just and

I be, our would you unique the very us where need platform with most. say, probably some being our at headlines about would would in share customers I need those So times

Siti Panigrahi

into is category tax, you Do of product? your more of covering second assisted but own Sasan, This a just Full kind share TurboTax Live the have on quick thanks year. sort gain full you service trend What follow-up now customer the for the Service. moving seen? see more from or

Sasan Goodarzi

million year and of that at at question. customers major of Yes, is the great – with and a category TurboTax in billion, growing we would billion is Live over I hit the delivering $XX assisted XX revenue just are start XX%. $X this milestone TAM with there

for in the really very very growth possible So penetration the and we future the spot category. excited about. are stages is assisted in in growth and long-term are TurboTax, which bright early really That we of what’s

Siti Panigrahi

Thank you.

Sasan Goodarzi

very are You welcome.

Operator

Thank you.

of from comes Our Kirk next Evercore ISI. question Materne

is line Your open.

Unidentified Analyst

for this for on you congratulations in Kirk. question taking for [indiscernible] is calling Thank Maybe a Michelle. one the and great Hi, quarter.

is of changed there the uncertainty Given Thank you. greater the you process to some account in anything terms moving some uncertainty forward? in forecasting macroeconomic of just environment, that for the

Michelle Clatterbuck

of we to things that one anticipate the times Yes, business platform, as we businesses for. question. things really and thanks the lot continuing our our the we we way a given to environment But small the macro not impact. Hi, works, It seen more an is our has good the really see like a we one for see have are products lot don’t of don’t these, shared our Sasan of unfolding, and the have have, the that that even business. and of impact – look consumers seeing platform need in that for is

in always our point any can to given. we’re time looking this see changed so – really in to see anything sure we you we’ve guidance that forecast with with as what’s happening, but at make haven’t And and our

Sasan Goodarzi

much our areas, would small majority most Mailchimp’s predictable And and only is for in of the includes most is most business, of it’s the if I subscription, it, not business, add pretty thing which some highly of subscription. part,

demand And of we terms high, sort the very we performance. is daily our on that, see remains in Michelle the said, predictability look our to platform. combined of see, So at and with indicators the strong we what data-driven as quite that are very

Unidentified Analyst

you Got Thank both. it.

Sasan Goodarzi

welcome. Very

Operator

you. Thank

comes Weiss Stanley. of Our Morgan next from Keith question

is open. line Your

Keith Weiss

quarter. was – question Excellent. for really a that the Michelle. Maybe sorry, and Thank question you, guys for nice taking

of Just point a clarification.

but like right guide full that I am the should or included for in reading year. your not $X.XX not this add So the we that add, is –

wasn’t Is be the settlement, that for read that it? like to it $XX.XX would to right $XX.XX? way guide EPS if the So

Michelle Clatterbuck

to the it’s impact underlying sure Keith. part We right, Because the what business driving. could wanted an charge, of That’s the structural the see exactly of is really make you business. our nature to not that one-time, the of

would EPS higher. have would full for $X.XX so on the non-GAAP actually year. been the higher for And have It yes, on and higher it GAAP been $X.XX

Keith Weiss

it. Got my it. That Got wasn’t a was it question, clarification. just

the go-forward So expansion operating does like on question it is FY you’re of a your expectation pace basis? ‘XX. Because margin outperforming for seem original

about previously of an You basis. a ability have to expansion sort talked consistent a on cadence of margin go-forward operating

I go-forward think outperformance given you you still points the going talked Does basis XXX at in year on change of Or FY a think about saw achievable maybe like forward. that a sort all basis? that’s ‘XX? you do

Michelle Clatterbuck

First of all...

Sasan Goodarzi

Maybe Keith, Michelle. didn’t get – go for I know Michelle, was it. for it I’ll

Michelle Clatterbuck

me. was I thought sorry, it for I’m

Sasan Goodarzi

how just I Well, you know in. am. I jump

You go.

Keith Weiss

for are questions Michelle? Margin

Sasan Goodarzi

Alright. be quiet. Alright. I’ll

Michelle Clatterbuck

Except and talk. first lose principles, But voice of that know can’t I my all. no, our we financial you have

and grow financial principles income faster double digits revenue. than So grow operating revenue to our

look set target – But having like is might do. on haven’t any because the time. of benefits possible of platform for over We we it the out margin being that what expansion that we that see do

of being services we look that across in that have our see those might year to customers, type not marketing, innovate we to given we quickly so of can technology sales this besides there, do and for like. deliver leverage capabilities And and as success expansion although see do more specific or or range continue key opportunity what whether any that be and customer you’re to our an really continue business seeing we opportunities able

Keith Weiss

at definitely Sasan, and it. – a it. that’s of caution. to Can the look area nice at, data my card Got And where that like it doesn’t weak. an that for pretty better are? Mailchimp. lot I higher. been I’m the how that look to this going you at I investors. a you a we performance think, we saw look clients how sequential trends, hoping and points has comes been, of I we And But surprise on It’s from think integration panel of into far improvement credit be little Mailchimp an update us the Google bit update lot I Got an It’s then doing have expectation. and of quarter, some seem and is data, get than on think degree investors that know most give trending has a to somebody

Sasan Goodarzi

tell you, today even we made we Keith, into announcement I here we probably And now as we sit I’ll the when than are would excited more the work. Yes. because were we’re belief specifically, we’re that are we very creating say the just that confidence come. expectations a our delivering yet to best and And on against our platform. is is and focused growth

and deliver Mailchimp. So all revenue of are one lead now in we the to we’re a have place, run data now that And like in transferring their of can things your customer into business. customers we a starting and grow points customer proof that’s the and where tab QuickBooks,

marketing invest and got making that in pricing The to going least, marketing that mid-market with one results green And are the some knowing the how of last where and starting us is is shoots. we foresee not forthcoming we’re of and we’re but principles that see to in second strategy, in then that We the excites to as at and upmarket we’re and we’ve will we investments of to these quite things. invest go-to-market the international. sorts be making, looking financial good both ahead, now some Mailchimp And look best investments investment teams leadership back has thing and underwhelming. terms really been our

their actually In really that outside Mailchimp about half that of will Day, will have include Investor effort. because refreshed and talk business more but big of with of fact, part this we we at of our a came U.S. fact from the international little the strategy,

the of quite yet the of a trajectory momentum able to up through terms to and And of sort So saying think is business very performance that don’t be Google about best about long in way you’re our growth of going Trends. we’re the the pick was Mailchimp come. excited excited of we’re and to I

Keith Weiss

Got it. much. very Thank you

Sasan Goodarzi

Keith. welcome, Yes. Very

Operator

you. Thank

Brent from of Thill comes question next ahead. Please Our go Jefferies.

John Byun

for This Hi, thank Thill. on is you. Byun John Brent

you macro follow-up. us kind actually have in remind have not have side. Then question, how and or Karma, past a if Just might I but you Obviously, Credit you a on you how the this I wonder different you Mailchimp plus for performed minus be time. of it could recessions and

Sasan Goodarzi

Yes, the Thanks sure. for question.

all, and in where of is back XXXX, this our think last peers on, recession actually actually we X%, that grew and we declined. First was I we of look grew X% – most the this

to are today in we go the well of perform One, a than XXXX then, the platform definition, desktop. we we whereas back recessionary we’re in have terms I today and versus we were cloud, a primarily so platform when in And totally on by in say XXXX. times. of now strength we’re also different would our then in company

the world, that our then are is Karma to virtual tailwinds we drive great is partners, are And with of the what We demand flow cloud combine shift our to and is quality in which in current the a higher our shift Lightbox capability mentioned around strength to actually strength platform you makes a flight the digitization, essential actually data And our managing recessionary to digitization time. Credit for with where earlier cash seeing. where them a for customers. online, I that

to position XXXX. today. and much we a expect to actually stats and were it the of we’d performed nevertheless, compared we’re exactly So the if how past was stronger recession perform better in those like-for-like But

John Byun

suite That’s thank from? traction on of or one, And from wanted see another mainly are where in the very just the getting Is CRM e-commerce? us progress more broader update still terms just and could to you with side marketing if is in coming you. the builders the growth helpful, it you Mailchimp, on quick e-mail then

Sasan Goodarzi

say just from the coming of out really Yes. word-of-mouth we is viral are I still the the growth nature would platform the of of the majority and capabilities platform. the building

many how of know One that really don’t about business platform company, the as we’ve we’ve don’t of know is has never even the having Mailchimp learned in things the capabilities the how because biggest about marketing. much now customers invested customers the part and

that the the of of are of lot delivers. I investments And seeing of word doing that into the that moment expect upmarket be product so will so just we But growth just, we’re say, mentioned With would benefits that word it continued we a ago, sort making now in our accretive of a it what And international, then because accelerate strategically and is in right will future. as investments going marketing over of I that most time. head we the and mouth mouth. is to

John Byun

Great. Thanks much. very

Sasan Goodarzi

very welcome. You are

Operator

Next of America. comes of Bank Sills Brad question from

Your line open. is

Unidentified Analyst

wondering in demand I might is is, and be This seeing QuickBooks can for at you. know if any guess thank question my I first you in enterprise the around Mailchimp, that’s see – SMB? different you differences kind Hey, the division [indiscernible] between spend of all? category, I and between of compare a kind you you guys of kind was contrast of Brad. focus if kind but two, of given with

Sasan Goodarzi

Sure.

which manage First helps is and and business. these with your both businesses A start one the grow you create QuickBooks, – your flow, would subscription-based one I helps cash are part, you actually they other magic. foremost, together,

And to wallet way their Instagram, and have different customers, market them channels, would to those to business consistent the while on customers, they ways their to say for been it’s it’s business demand have realize the Amazon, they a find or fairly are of to so that demand, and Etsy. existing the and grow to market grow strength new that with be it’s in a whether customers Facebook, their whether that for find on share I that able whether website, their also

And And is they do can higher retention, do why the also services what data. nor don’t both and wallet to QuickBooks business place grow bringing a It together so what to together have and manage expansion higher and the they And And the is depends that’s all higher a penetration on trying demand will, share do. we to cash of because in flow. and are business trying be hard drive able consistent. their part. do platform is run actually over time, one businesses have and Mailchimp their to you’re the what

Unidentified Analyst

those then for some it TT think But when of product, work auto a or importing And just like turning real you. lot R&D tool for quick, Live the service. Thank differentiators I I and the think of investments seems are TurboTax it. my Got to of the of done. favorite

TurboTax of you. guess question R&D going terms for like I my incremental investments So is, Thank the where now? in are

Sasan Goodarzi

Sure.

no First of destination to all, there is investments. the

machine to are we through terms questions not really our experts the only make ensure engaging just how matching lead smarter and the and the of to our not questions. on our we answering technology, learning in we human technology continuing invest the two, are platform bots how engineering through knowledge and that we – We and that how are so in do that But answer labor. can

that at So this day. in getting better area. continue to we’re we’re single every to invest going And

thing about money. would speed this think the speed year, tax money. next I that done segment I is is we’re about actually is where learned thing everything say we biggest my the to other the assisted about year and around The excited it’s the in

you Karma that’s us into for now to area the your we more in of And experience. investment do much because can there access so TurboTax Credit the where integration of can refund, get is another early so

then getting it’s they and being to to like terms segments access Latinx how a self-employed, money both of specific and over economy. and investors, where the very you are do time, place also smarter are that experts able faster you taxes in and So to across help done creator

they company These the continue So TurboTax, at platform the areas. within Live level other also And us our QuickBooks in remember, investments level. and and in benefit invested not will areas. and those investments just are we

Unidentified Analyst

That’s awesome very much. color. Thank you

Sasan Goodarzi

Yes.

You welcome. are very

Operator

of Our Sachs. from Goldman Rangan comes next question Kash

Your please. question

Kash Rangan

think Intuit XXXX, of much. spectacular fondly you, in the companies through Sasan the that Congratulations, Sasan, team, recession, few right or results. revenues its back only of I remember one XXXX us, the very will and probably recession. the was company some Thank that you grew including actually

not customers help could quite you it this, inflation the the I’m way of a admired think products anything etcetera. question. but most could understand, combination someone through for ,as how in here, to all that exposure as that’s be specific Intuit’s rates, are running also, weather significant a the companies able positioned we’re calling space, SMB curious – course, to most we if with Of And I to

and with So that hear you Thank your thoughts. once Congratulations. pause I’ll just again.

Sasan Goodarzi

start so sort you you, now would answer is most to a thank of times loans the And tougher we’re overly Kash, your I example good seeing cash think small that we all-time just worth digitization an of times. flow volume doesn’t was here earlier, payments generic. same year, I’ll the Thank and There these times. to our tougher in And business the bringing higher just up to month better the our much, is Yes. used where as of Xx were again in and it now. much Capital QuickBooks I I’ll high important than use us today. I for see times last And other the in flight but with than business. tangible start And question. April, manage at an all are accelerated and seem of compared what time is volume. that with small saying in is environment

are last volume. last Just of in the the month, This XX%. growing is week, our payments north we in

to and in become capabilities all just just business, examples maybe business recession, a both tough resilient is to based and than tangible small even and are quality because And we I quarter. help least higher and very ProTax demand, capabilities offers, the our makes with do pause then quality. state need, small so our with and what people Mailchimp And times money remind for us growth that are flight last company, of they that’s their on time on in times their that Karma Lightbox this, more truly you can the we to have ever, actually be control we to are than a our I which but because as more you more QuickBooks capability grow Credit cash data And and those Lightbox proprietary, will it like and there business is last And taxes. in will not a in the your recessionary partners your have saw use the were wanting more flow. there the businesses. platform last of And center have XX% different a platform than because platform. demand to I it’s and because So we on in times with more is our in TurboTax is and tax, actually is the

and the playing forward, I think that and good And the are of your businesses tough best to nature was so small times. we serve which positioned consumers times I foresee in would question,

Kash Rangan

to – point buy get the you doesn’t affect could you they Got business it. to so two just that formation prefer That’s they clarify. Small Intuit, to before lag products. probably where

be how it creation So, concerned standstill to that concerned a come – should business for Intuit? we should recession, how we Thanks. rather That’s affect during might that small might me. the

Sasan Goodarzi

be wouldn’t concerned I all. Yes. at

of formations If short-term that’s or it the not were the you the really long-term the the of look when formations low our high, negative, history, health or driver when – business. were at

track. And so something it talk is lot. about not not actually we It’s something we something worry about. we not a It’s

got start all questions, it. you so asking And

is us. would I not just of concern an area for So, say it that

Operator

of next Markets. Capital Jester question BMO Our comes from Daniel

is line open. Your

Daniel Jester

help for were how the how Live, understand question. you Hey, TurboTax my of just to from kind transitioning platform year this DIY us great. On many new of this growth to Good afternoon. was customers Thanks versus can taking TurboTax net much the year? Live

Sasan Goodarzi

take reason are for than out doing One, in the up question. Thank XX back and actually lot break in more why did the category The across the love to And the there tens but specifics, is three Yes. segment people I assisted don’t in TurboTax taxes. you Can all will We between between there right. Live the you I we bring do million back the the there numbers. another is that confidence. do millions category by platform. them of help lack actually than driven forth do-it-yourself that systems. in, each TurboTax, and of this a I these it myself, XX and it’s person switching of sort getting finish Within of people million is assistance with movement then never assistance. more log it their – to a go happens a that within trip is directional I there and then probably to and is actually And but those and yourself figures

and you TurboTax you do we when so are would it platform fact, now across Live with it do can you for why it or I a TurboTax in the platform we where as a can say And at look do whole, platform. can yourself, that’s we the we

from that those three comes from helps now are us a our and switch are It vice with funnel have assisted, all would those in So, TurboTax areas. left metrics. those with growth they versa. Live that that They us DIY stay

we the be has in driver Live. the where and to it TurboTax driver are backwards, been the driver will looking continue ahead. of That is that So, looking

Daniel Jester

who you context. That’s helpful you users their Great. the number really a Credit of Xx And tax, had then Thank you. Karma comment in refund about mean deposit TurboTax about with is account. can made that? to just the stick future? there color what can actually is Do any I their wonder how of much leading a indicator share or Thanks. track balances, you the in that you

Sasan Goodarzi

Sure.

paycheck our paycheck get days refund their First for the is And benefit to five to access to focused money that for customers. meaningful. early those of on really really live are all, we

we leveraging know, help Karma believe with debt. Karma with and are to am you platform, team as we So, save become Credit of permission match our find proud then then products and super know good we that Credit really they ways new over you for members. changes Credit – financial and lives. about And get for Karma because out and you at to said, really you of right the what one, what to doing this are hypothesis here money will your These our TurboTax really retention. customers that actually time, are I is, With it

a able we monetize. Credit a terms We that of them, behaviors. So, can over be they Money, their has with that money we in the build do they already help with be platform watch it’s able do to can new customers to engage on members million Do what time, them we things keep that it, will credit. XXX their on money do Karma they as to drain over

the and truly So, – more of for into feeds it coming the network benefits. it’s really customers delivering effect back benefits

Daniel Jester

very you much. Thank Great.

Sasan Goodarzi

Very welcome.

Operator

Thank you.

question Our next Research. from Zukin Alex of comes Wolfe

is Your line open.

Strecker Backe

on is you. Alex. This Strecker Thank for Backe

has Karma XX Mailchimp, months transformational on it doing these consider So, the additional seeing deals? are you So, that you months? to Credit with success view more your changed say give right with right are companies have now? or still the deal? deals that focused very integrating it’s additional M&A Thank about XX the how thinking – on us And an even these maybe larger of and you just over M&A with would And you if update some you room you are resource-wise, next your and making to can just on you on you. take

Sasan Goodarzi

Yes. Thanks question. for the

our have not I around acquisitions will principles start changed. by First, saying

that about to these progress closely power with kind ourselves mechanisms marketing acquisitions teams, their everything the really things are building, as within operating expect deliverables that accelerates. that and all deliverables, I we product platform acceleration. is prosperity market it against momentum and we and of ensure consumers serve. from a expect our system our we mean and the as businesses We small monitor we – time really, it very us, where the of are these fundamentally long to the Intuit engagement integrate on be we and and and on and that For And the a of excellence team we talent only our both track. building acquisitions set to the and are have having we And of about can secondarily, is

family, we the would there do have a very do and can and we at Credit both acquisitions. of so at I they in cases, not playbook when we are we And say, bought Karma together things at and incredible that talent capabilities great how terms to good magic. not in are a you things create make because great Mailchimp, are we the and they look that as And

of are doesn’t is they their in the these It our how biggest resources said, that at in and terms future And terms we of looking from or good mind not frankly, how perspective, to share mind of or are a And is. management for discrete expectations. team we of is decelerate we time-to-market assets. with So, all acquisitions share resources. both what very are our accelerate it our track both allocate hindrance on

way about So, it. we that’s the think

Strecker Backe

you. Thank

Sasan Goodarzi

welcome. Very

Operator

Our next Bank. ahead. comes question Please from Brad of go Deutsche Zelnick

Unidentified Analyst

the year thanks a my question. strong on for Brad IRS headwinds. for Hey, congrats Bob despite on taking is and and tax This

under that TurboTax about now basic more And second belt, trajectory customers year tax with to to you from of things? see shifting have rate think of sticking a you the we traditional Just that that and how had side the SKUs SKU typical of Online might pace should live your deluxe a compares how basic more on the maybe premier? quickly,

Sasan Goodarzi

it’s a question. Yes, good really

expert it all, matters Live we biggest really you, is I speed of in you basic to this our would is offer having thing tell and sort want with deliver both doubling an by into a your year to soon experiment the And learned down expert TurboTax done and this particularly – worked. access can would we taxes First speed experimented what for and want right of as The with these an majority last good or that that tell an I taxes are where money because on. which is next done possible, customers, if their of is it as we their you the year going they they do of area them money. that

folks SKUs higher complex role in would when it a time, have really, bigger context, so play method over assisted use to TurboTax that the And that Live. generally we expect, more we to situation. that And an comes have

Unidentified Analyst

earlier And point or any there. call more Mailchimp look growth you trends on the the just new top and with funnel in when Have the either helpful customer versus made of even of international. in terms maybe That’s change internationally Sasan, of you seen on you QuickBooks earlier U.S.? to just

Sasan Goodarzi

out start-stop, us, COVID, are I mean I countries out not but start, of And I shared as faster back consumers and In financial don’t before, stop, consistent the UK, than that – impacted building an of we we sort of will world of much small to life. is is what other would in What I and it’s the coming use the bounce businesses thinking have country. there has of the down, that out in. their managing in sort say, so which and Australia COVID of how many sort shutting France, U.S. Yes. are that is, example, I Canada, coming been just and mean momentum about just

in that So, what are they it the will of will for over a as business to their and behind are we is customers bounce roll Canada. to bigger possibilities out really starting that And future with believe and back, help they, the U.S. customers part plan that, grow looking excites but sure, game small be That our again, accretive us be our will we long-term, Mailchimp. ahead and growth. I to tracking the strategy our say

Unidentified Analyst

questions. helpful. That’s taking Thanks for my

Sasan Goodarzi

much. very you Thank Yes.

Operator

go ahead. Please Oppenheimer. of Schneeberger Scott from comes question next Our

Scott Schneeberger

and tax congratulations. the the want – to much I very dig cadence extension. Thanks is Great. kind into of want and dig question of on Sasan, into season, an this to overriding the

well. a Could bit year that? elevated relative you And potential the variability, the You this on as you just are year mentioned you might be has any to full and IRS extensions or for the where to do your what little for extension? ends volume more expecting year fiscal just Thanks. address good that there bad, speak and

Sasan Goodarzi

it returns start and by customers the July. we are there will About The is will specifics give nearly fiscal start to filers headline, and they up. we is down be. be the Well, through XX% and actually the talking our at all, which points, IRS end will through driven I Sure, observing with come it’s paying now you being three And back. are July, base, stimulus were extensions But IRS in with me of about top. them what that didn’t more Yes. doubled. that of our is Scott. for could are which first guidance of I And let the year, you

come in some returns after but normal next that we you it in have have as what will will year we about our not focus do it fiscal And X guidance we because, our as we we expect so some will the most what next those we for through years have not and because But we future. – that course, more communicate again be we because so to through expect talk back, are this we essence, digesting year, made estimates, July. communicate total be today IRS we will certainly, last estimated made And to just said stimulus July. what it talk or what of – happened you happen back July. in terms And the point of filers those up was more year of to we normal flat all into all would at of extensions, the the to look be more won’t and because the and customers assumptions

Scott Schneeberger

in in would Live that follow-up, revenue tax. called make Certainly, a per When TurboTax just has part she her sense. return, given still premier. The Yes. on out as Michelle and –

on investor weighted probably category, So, in the category. little bit investment the a that’s the Latinx more self-employed double-digit premier, that assume I growth

got self-employed Just a there long years. to so? that And sustainable that for a is is growth also the runway how You Is Latinx Thanks. curious, really group, nice and have few growth? that? for investor

Sasan Goodarzi

Yes.

sure. For

we of we the billion $XX When have and start tax your which another is billion way, category part me business assisted more where by the at question. not with Let is talked TAM, is a about. look the there there than TAM, latter $XX that

is it’s TurboTax $X Live billion. total, in $XX So, billion.

talk have. heard have runway days, so divulged much in And can got we of how early that we have you have And got XX-year we the Live we are as TurboTax hopefully, run a sort is, how a now we of years, you me big here, runway. see in prior lot and

lot there runway underpenetrated of runway also in of our there. segments. is a is There lot So, a

started data all because we those on Latinx, We with under-shared are in self-employed based investor truly the actually are segment the just segments that and getting we see.

that is And choose And runway. and those time those road, taxes, creator community down part segments, the become so believe, the do-it-yourself focused be continue will the also we to segment, segment an larger when we do we as the look a we well. will that’s area equal at where and over which in have of both – creator an to assisted

answer So, that was a long short to your question.

multiyear those it’s all in would I sure. of runway runway is think the a areas. And headline I you with yes, there is, a for leave

Scott Schneeberger

Thank great. Okay, you.

Sasan Goodarzi

very You’re welcome.

Operator

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

Kartik Mehta

Good evening Sasan.

next little Just Michelle flat. the And few am I segment going I I DIY am wondering wondering, last segment be? growth as that the be years, what I a you different. down little bit, tax move know would have segment seasons think been to DIY said bit years expect And for we expect you to X to X over a year, next the the the forward

Sasan Goodarzi

DIY IRS X% grown look of the Yes. has I and last Thanks returns been historically, at start will for point. the about with. first question. about more And and has we the up with X part even what X.X you category the years When led

the where it grow our you just look just But years we to will you total answer score other historically. also spectrum. true. to when we can grown over that X all at now DIY continue so category keep for on will we do question, share And that time the respect it it the specifically do the of way believe to or the have, returns platform is has do yourself you with as holds your last IRS with the we And that anomalies, the

just year that of the all years. in last we this are believe where the would digesting is anomalies do we a X say, So, I

Kartik Mehta

the Karma if about rely if on how talked Credit And I you little during standards card will you on seen benefit issuers yet will – to Credit is bit am this and signs a have to or that wondering starting And credit any even credit Karma? a Karma, Credit recession. more tighten of banks banks is

Sasan Goodarzi

Yes.

to of are which adjusting prime. point course, with they is their and in and platform credit XXX, and over We bands, interested good those not our XXX, on credit over a based is, the they or they they our are have good demand good below as of subprime XXX of small. all which bands is experimenting context, our And these times, on always XXX, XXX between focus so very prime cycle platform And is the and across band times and in big are that of platform, or partners. and we because prime supply on partners, have near which the jump and whether the our both anything are and then, between on the the platform supply see partners areas more that

we expect guidance. drives of that context we going And would forward quarter, so that saw strength and our the it this in last

Kartik Mehta

you very much. Thank I it. Alright. appreciate

Sasan Goodarzi

Yes.

welcome. You’re very

Operator

you. Thank

Stifel. from comes next Our of question Reback Brad

Your line is open.

Brad Reback

to Thanks much. put to Thanks. as internally type what externally work ‘XX decision? plan the and on forward that focused operating together of very sort inform weeks Sasan, you months, coming fiscal you and of in the Great. are indicators

Sasan Goodarzi

next we at year. actually and things. look year, great our We is platform. our done our at and for this X-year are we works secular look while planning in One, a We heat X-year trends. at delivering facts few we are cycle the we Brad, we because way the and look plan with figures question our – on of finish are Yes,

what is an to are digital and acceleration trends virtual platform. mentioned have and online secular a using money using omnichannel shift solutions, which the to earlier, I So, an to acceleration

We So, we happened last number If and Investor over our we platform use at look actually the shifts I have course, of the things we invoices the our our facts now, that at and on But secular and generated secular billion. just trillion shifts. of small over shared that Day look around look $XX our then a business is was share. and at couple all bigger $X.X of this on examples, payments we as platform. are volume figures

Credit very share very that’s our of very at And tax, look low low – loans, financial you in Karma, share. you so at the cards, our you of look assisted When on share share. a share, credit personal products category look when at low

around also like And the data of performance way, projections on small of are economy factors we the around data By our the will like unemployment, share. platform. like projector look the then default that share at look we at best see we the business our rates, economy. and our So, economic we because our around

way investor that things. by for best we at manage at. while look this based case, And sort of put protecting then our we the together the then is we are plan the is that data we all managed we how are we customers. in on And that’s So, for of middle – put something case. deliver we those the case, worst company. quite way, good ensure our today long-term to that manage we And see, investments our And we

So, think a that’s in a little snapshot about it. bit we of terms of how

Brad Reback

great. That’s very Thanks much.

Sasan Goodarzi

You’re very welcome.

Operator

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

Sasan Goodarzi

Yes.

time. questions. So, wonderful I will. your you Hey, the making everyone, thank for you, Thank all for

and our members proud I honor partners, real across earlier, and to our am our As able said company customers and of employees I these privilege be to and in serve super the times. it’s a unique

And so safe, you. will be and Thank soon. talk all you to you well, be we of

Operator

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

Intuit (INTU) 25 May 222022 Q3 Earnings call transcript