INTU - Earnings call transcript Q4 2022

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Operator

Good afternoon. My name is Chelsea and I will be your conference operator today. At this time, I would like to welcome everyone to Intuit’s Fourth Quarter and Full 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. begin. please Watkins,

Kim Watkins

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

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

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

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

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

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

Sasan Goodarzi

We all businesses. fourth momentum you, expert small powering thanks Thank and be global us very to executed and the on you we prosperity consumers quarter, AI-driven as platform a to Kim joining for today. ending Great. the with for had strong of year our strategy

billion, and in of including and full decision money that people focused XX%, make. ensuring on every addition their time Credit to be customers’ confidence a work Karma. the Mailchimp reached year problems revenue they have putting We year our saving complete financial they of $XX.X Full in continue up biggest by pocket, eliminating solving more and

by for revenue and am year growth, macroeconomic scale Karma XX%, are growth for mission-critical team’s forma year points billion, revenue an optimistic at includes very margins, proud able uncertain XX% of Group especially opportunities about MailChimp, up grew Small the XX% guiding fueled an Mailchimp. companies and customers’ year-over-year. Self-Employed to pro The I’m are strong in margins strong growth strategy year considering outstanding which for another on delivering few with our from Intuit and platform strong to of prosperity. had global very grew I XXXX. and strong XX%. Total pleased achieve. our the Credit environment. XX powering Group, Business a growth I’m of growth and remains revenue Consumer performance, was Excluding revenue revenue $X.X basis we fiscal our which

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

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

people are: Big experts, business and money revolutionize our small Bets unlock reminder, a the disrupt benefit, of X small be decisions, smart As business to growth, connect keep mid-market. the the center

We Investor Bets will our each the at we’re our more Big across outcomes these of share and next Day. vision driving on month

mind of the turn to that environment. business you, topic Now I top many is resiliency for and our of let me a macroeconomic of know the slowing

Our last the a different during than it decade company in more ago. than is significantly position recession was a

customers is the platform Our for small even offerings we to Intuit have platform significantly and expanded and mission-critical businesses. serve. more cloud-based become Therefore, consumers of our choice for

much is have our of revenue subscription-based. business and reoccurring We predictable highly

and balances volume, card growth members. customers, of business allows platform for in our indicators, adjust rich charge such This small us along bank of number see as scale employees our and data unique the to workers be Additionally, us are working gives paid, delinquency hours quickly. number credit of forward-looking to ability and utilization our the of leading with account rates

business our Small context XX% about start, how in and our revenue Business Let from fiscal our from a Self-Employed XXXX, think mild and Karma. from of came of in Consumer the XX% To recession. businesses XX% me and Credit Group, year share we ProTax

our not have any businesses we expect are tax, and recession very to mild do First resilient, a tax significant on impact.

Business QuickBooks platform. our mission-critical fiscal was Next, the and Small and approximately Business with Self-Employed and Group XXXX, Self-Employed year subscription-based. Small are depends livelihood Group, on whose Mailchimp of customers our revenue for In XX%

transactional-based businesses. scale mission-critical Mailchimp see reminder, QuickBooks our capital transactional revenue environment. This from and In payroll. especially an to platform QX, may subscription-based our In the we employee approximately also not XX% a environment, tracking on As did any volume. impact for in is, mild pricing of adds we these per impact. payments, primarily see how and is a which The and subscription recessionary time demonstrates is this includes

to weakening that Credit turning Karma. is the environment. by be Finally, could impacted This business economic most

XX% business in Intuit’s As XXXX. represents of revenue a reminder, this fiscal year

institution partners we challenging interest could QX, personal In While rates be securitized volatility to environment, access environment economic rise. are we engagement more any expect partners experienced a as member tighten financial facing strong to funding in loans. our Many credit. that in increased loans

For of Karma’s context, year personal Credit loans in represent fiscal XXXX. just over revenue a third

impact. other loan several were power of In some partners. platform. credit This have not with of tightened quarter, during we this personal to significant volume any Although partners we underwriting the demonstrates seen able the offset cards, from the

a We indicator we view delinquency future leading rates, origination continue as to which credit trends. monitor for card

delinquency rates remain historical slightly, increased lows. While have near they

on for In nearly be XXXX. credit less leverage their credit environment this a continue lenders of allows in credit cards to recession mild differentiator technology negatively points. up else only replicate and platform Partners personal recommendations financial anonymized usage a expect Lightbox to do end a Currently, targeting from the for fiscal basis. one recession a combined members XXXX an card TurboTax impacted XX% to credit members Credit the loans. year and Lightbox all-time ‘XX-XX, year are revenue to by transactions of related card prior personal an as certainty high, of partners was in to deploy This the attributes more nearly at this. provides fiscal representing expect year. XX originations of declined can than points nearly on as personalized. thousands half encrypted Karma This loan to We of cards of be was the Karma represent mild And credit We and Credit context, few models customers. no card at and

Credit more Lightbox expect to recessionary in help resilient business We make environment. a Karma’s

benefits guidance continue. important strategy. feel current more In mission-critical the more long-term our and are platform Now our business are with providing ever up, ever. the uncertain macro than than context, that demand we Wrapping in an as today we assumes trends confident of environment,

As with Bets strength in operational approved, part investing our each that heavily deliver position we X of in the delivering our Intuit Big and our of while plan customers balance our top within Combined given for of growth benefits our business of to X-year including line fundamentals, strength. the playbook. our and Board a expansion innovation just remains strong margin are sheet,

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

let Michelle. hand Now, it to me over

Michelle Clatterbuck

Sasan. Thanks,

share of last versus last million of diluted $X.XX share revenue operating versus per $XX offset operating Mailchimp; fiscal IRS tax $X.XX of year, down fourth For earlier reflecting last loss ago; year; XXXX, $X.XX by year; deadline earnings we partially quarter share million per GAAP billion, of of a diluted filing non-GAAP income versus this loss delivered the of of and $XXX $X.XX per earnings million versus addition of $XXX million $X.X the operating GAAP $XXX the income X%, non-GAAP year of year.

You can find in our press on full fiscal sheet. and release fact XXXX results our our

Mailchimp Small In revenue the year basis, grew fiscal Self-Employed basis. or revenue organic or organic Mailchimp Ecosystem an XX% segments. quarter XX% and XX% for XX% Turning XX% XX% full grew the revenue. to grew excluding Group, Business and on XX% XXXX, business QX excluding in revenue the Online the in and XX% Mailchimp. million and an In $XXX on during excluding

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

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

Second, XXX% we Services Capital QX. revenue, Online and the fiscal grew on focus Payroll, which in Payments, Time Mailchimp, Tracking ecosystem. includes connecting continue to

revenue Excluding Mailchimp, Online XXX%. Services XXXX, Services fiscal grew revenue Online grew QuickBooks XX%. In

Mailchimp, Online grew Online revenue revenue in Services Mailchimp Excluding Services XX%. included million. was $XXX

the business points when Although our growth we this making fiscal slightly QX we with in revenue QX, versus acquisition year-over-year as are revenue we progress closed in expectations. accelerated below our fiscal several was

us well and that peak investments. the product focused in conversion we During on season. into I are head to pulled starts season, innovation the confident peak to therefore, ahead which right steps position of quarter, these September, on marketing back improve am Mailchimp as we

after ramp these September are enhancements up We expect to marketing complete. in

Mailchimp. priorities in growth in growth to to have charge a and continue We for Payroll an shift reflects customer higher-end quarter Within acceleration per our Payroll, increase volume growth. plan confidence reflects Payments, customer revenue and offering. ongoing in revenue increase game customers in an mix the Within and

Third, fiscal an globally. On XX% we international continue XXX% constant QX grew a Online to make X% and Ecosystem the progress revenue currency expanding in organic revenue quarter is Nearly Desktop excluding on by Desktop in MailChimp. basis digits for low our grew revenue fourth Ecosystem driven X% XXXX basis, QuickBooks year. accounting customer and to revenue the of grew accounting online now subscription-based, all our offerings. similar growth. double desktop Enterprise fiscal and full in increases price total

in XX% Full expectations primarily and Credit partially We’ve revenue fiscal business, in user. well was in product to was personal by exceptional growth by years quarter, our XX% credit this insurance basis, XX% pro on above to for home auto monthly $XXX X loans. another growing loans. average driven XXXX revenue XX%. was Revenue QX, by longer-term in forma and fiscal grew revenue revenue basis, per $X.X primarily This on billion. a growth record active XX% driven On a to Moving had year offset Karma. XXXX cards in and of headwinds million

increased personal loans. earlier, shared As seeing we volatility Sasan in are

per which grew visits to revenue I’m verticals of developing XX%. about is time. XXXX, average execution in over continue emerging opportunities return. We Consumer we the frequency key up on Karma we with this proud Credit and remain ahead. $X.X the our fiscal focusing We as of growing revenue billion the share believe season excited was by innovation Group Money,

the to in ProConnect X%. We $XXX million Turning for fiscal XXXX, revenue reported up Group.

to guide The fiscal million financial the Board our We cash in in quarter approved debt commitment $X.X is a stock versus long-term each of be during sheet. are repurchased in giving $X.X Depending our conditions last and We billion to $X.X authorization represents a approximately company quarterly total investments payable other XXXX. of quarter a $XXX during billion $X billion and our authorization, the balance market of decisions October shares. with XXXX. approved Our XX, billion on Board new increase billion dividend fourth $X.X year. aim XX% market and and The the and $X.XX unchanged. the share repurchase finished our a principles remain quarter. This on factors, repurchase per

we and playbook run to good We and the economic in have operating system use operating company, both a for includes proven times. an this difficult

As through we’ve been cycles. XX-year-old many nearly company, a economic

giving in Our customers, access we need growth. We for investing and for first a long for the priority results is offerings most. ahead. they and to the control economic as deliver while to The and environment consideration is manage important do term look was discretionary to tools future spend most the short thing right what strong them

others can we arise levers for as several platform. we principles should like through variety future. deliver in stronger based a need our to our pulled earnings real in on in hiring identified the where while order we the maintain and Many opportunities have scenarios to these marketing the spend, be company areas power year time across progress can positioning see in financial a pull of travel, against We of

to our have that strong play remains are the in to enables Intuit sheet any accelerate in principles future, us environment. balance offense a from for position emerge a goal We our strength. and intended any of downturn These in macro to innovation

guidance. Moving on to

billion $XX.X of of XX%. revenue $XX.X XX% billion, includes growth guidance to XXXX fiscal Our to

XX% Business Our X% Small to Consumer for includes for XX% of Self-employed, segment XX% and Karma. to to growth the XX% XX% Credit revenue guidance and for

on to of XX% basis grew Karma fiscal in Credit XX%. expectation well reminder, a ahead of long-term forma year-over-year XXXX, pro XX% our a As

recent continue. assumes trends guidance overall Our demand

$X.XX, guidance Our to share includes $X.XX $XX.XX non-GAAP of share GAAP of $XX.XX. per earnings also to per earnings

XXXX. expect rate We GAAP tax fiscal a in XX% of

is and XX% XXXX this related to is of to billion, fiscal approximately Our fiscal $X.X of transactions, of guidance stock-based program of total compensation XX% Credit the incentivize employees. Karma retain equity this over XXXX. equity increase as includes Approximately designed Mailchimp part XX% and our granted of and attract, total an broad-based

a as over stock-based ahead, expect few we Looking years. the percentage next to revenue flatten of compensation

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

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

We are of fiscal QX, shared of time. than material This we revenue bringing revenue Karma want provided strategy. you less ecosystem, we forward. and the Today, in fact for presence. as and it and Xx I small will Mint in and Online were comprised was along our over Ecosystem million. This, one-third We XX% overall our rate. the when Self-Employed fiscal unified the change our to Credit larger of We is expectations with in that in first business Online business, also reflected personal reporting with Online $X.X to the expect the subscription Small the Self-Employed in fiscal moving up small our revenue to Karma in better of just Starting growth achieve under the two-thirds building of forward, is growth Business comprised an XX% $XXX important now shared guidance measure I our regarding Going Group XXXX part the a our Credit more growth is the at growth journey early Business but business total segment. XX%, revenue together than share organically given to Mint online majority revenue billion, from business finance the expectation not today Small XX% we shift to at the of than is past, long-term Online aspiration XXXX. It over rather going total we this is to In Ecosystem Ecosystem. long-term Ecosystem to now right the previously. performance subscription-based than and desktop. our look be XX% forward believe of

provide Online will the longer be growth continue it goals. no While specific back catalyst, Ecosystem Sasan. to will Online over our I that, Ecosystem to turn we will With

Sasan Goodarzi

Great. Michelle, you. thank

company an have the the communities. leading people now I we Mailchimp, platform. continued Karma momentum financial from are are across you given and seeing being that and powers accelerated strategy innovation expert and addition we heard As the technology global With AI-driven our and Credit organic Michelle for our of of platform prosperity

working have a our in set shifts We TAM, streams. highly and large predictable favor revenue a secular of

and is to remains game-changing Our our Intuit innovation unlocking new opportunities proud for what truly this platform world, delivering best place year. and the team accomplished work the we’ve our benefits I’m of a customers. around for and

for have. Now let you over to questions turn it any me you may that

Kim Watkins

ready to we’re think I take questions. Chelsea,

Operator

Stanley. Thank Keith you. [Operator first Our from will Instructions] Morgan come with Weiss question

Keith Weiss

a Excellent. Michelle, Thank you, for guys more quarter. is question question the this for a of very taking and you. nice think I

just levers that where legal they move of to kind in Part ‘XX. settlement to or higher of you like FY part For FY ‘XX. about one will, the out is the talk – number saying business, FY that to looking higher there on the number guide, the that being anniversarying you just is about driving on or to the were in expecting earnings the FY move me big in think we model to that for said durable the really margins a you’re ‘XX? we operating power. two, Can terms ‘XX margin the if maintain sort those your more in finding a that durable improvement you’re basis how efficiencies, operating How And continue us to organic, is ‘XX? go-forward and of Is in if in this progression sort fundamental about levers stuck of business of FY see remarks from one? beyond the you like of is could

OpEx you. equation, weaker I should maintain side take of margins a those pull will? mean even maintain with the and you to macro in the is environment, to a to that profitability Thank that levers So levers if you of there do lot that could have

Michelle Clatterbuck

very points Appreciate double ‘XX. of digits grow be your versus coming and our to you as And aligns revenue it. Thanks margin we It guidance Yes, this to margin financial questions. to able that FY implies know, revenue. our see for year. expansion for are dollars basis happy operating operating income principles than to XXX faster

we feel So good really about that.

our more that be platform we does a at from, driving over margins to and continuing which to coming in revenue more effectiveness expand grow able drive to the across look resulting to while accelerated been to the we’ve business to growth. As where and drive really and time, while able that’s us really enable to look as accelerated ability invest revenue efficiencies is growth, really being as continue

that time. I impacts As that, about that don’t to really we really see think how anything over structurally that

prevents haven’t on guidance us question a that of us your in we anything for I be number I as would the but as structurally the levers look from long-term a part continue OpEx. don’t prevents pull, or would see platform longer-term, we We – to growth. To really pull, given any we longer-term that might what there that which like necessarily mean, that expectations could margins of the that grow things are continuing second as yes,

able or that and As lot much pretty things maintain travel, hiring, that, be to time in our to impact able expenses that I real can mentioned, committed those to. in there be margins spend a is we have – marketing of operating other we pull like to the

ready. we a really be day-to-day basis. of on do to what want we kind So It’s

business. efficiencies drive looking always to the We’re for opportunities different across

Keith Weiss

much. very you Thank Awesome.

Operator

you. Thank

come Deutsche Brad will Zelnick Bank. from question next Our with

Brad Zelnick

for you its with disappointing, and a my Maybe And much. strong confidence, bit can on so you’re it first what that And and on the the double-click for is fiscal Mailchimp you next product the not a year. Thank guide gives actions year congrats taking? strong Great. environment? you question,

Sasan Goodarzi

are you? Brad, question. I’ll that take Yes. how

foremost, that with the in performance First pulled I that the we would just shared. and we share ones are back that you that resulted

is great it’s the So our news control. in

people benefit some up across process. measure marketing that into on based we expect And even you Karma we website biggest spend, get platform, falling being like hence had would manage what the to matters would the we way, the number wanted problems the checkout the with customer The platform, biggest signed conversion. our are Credit spend improved times is is you as active use cash and to that we been just being without the the our when is into the started able getting dollars become features that specifically, second which grow of you’re address were customers experience make by is for into and the I would family not really two on Mailchimp saw get product, product are and point you sure especially, our as Then and engagement shared to our the Mailchimp TurboTax all the one thing that you marketing the that’s in to the across And flow. that accelerating we their tougher – of biggest with in gaps versus why we we to their believe learned best-in-class reaffirmed conversion. that been and platform, and what that and making there we’ve of QuickBooks insight off those to that do, base of able we we felt the were things coming and critical like with conversion most

priorities create international. Mailchimp, from down away take we track double I tackling of and not busy to So say That are QuickBooks, we platform on three we that one have about that on examples to Two, that growth do. is one to on with we for season. just which illustrative sure wanted it’s those product did just are make double conversion ready down shared the blocking a are to what is basic really would which

actually with In fact, helping customers third And international to then into our mid-market. the it Mailchimp. now on is go strategy grow refreshed part customers down of to is double

just with to to to decisions control playbooks terms to has actually in product So our and that of what nothing season. comes made It we busy know has announced very conversion. execute what’s with we be in explicitly are results the our how And ready environment. when do everything for that these it do we to

Brad Zelnick

And on makes you. thinking you a – of talked more and going range of XX% Thank lot guidance for a XX% if Sasan. from thinking the holistically. maybe follow-up with sense, versus about I to long-term one how a business and growth XX% we’re quick about just That small but can to Michelle, forward, XX% Michelle,

think Thank that some about for think desktop, actions remind pricing recently the about as can of we think value view, how in I pricing as about more you. and lever you example, going as should Just a long-term just for pricing forward? us, you

Michelle Clatterbuck

for the Thanks question. Brad. Hi,

We’re really earlier, I for products XX% business have the it small that XX% about talked the excited business. we to XX%. mission-critical small about the being to able to in XX% to to raise offerings show, and of Sasan from as just nature goes really the long-term expectations think

focusing providing of the But price. with and be focused of it’s have we continually kinds we that are have on see Live, that algorithm higher expectations, the overall customers about the value bringing Yes, It’s to be As we ARPC, ARPC. to pricing is should overall, the delivering customers still QuickBooks just once driving the we we provide about offerings part the QBO may and then Advanced, But at pricing and may growth the about business. is so small we’re look are excited to on focused those innovation driving we’re more value, very it’s value about driving for on raising continue we really, whether table, but additional additional really it price. ARPC, growth those And products. not how a customers things. really do same for growth raising features increased really

Brad Zelnick

Thanks, much thanks question. for and taking so Excellent. the Sasan. you Thank

Sasan Goodarzi

price – not of Michelle just One amplifying whereby we an on that just backwards. is reliance we’re looking price and has price algorithm relying ahead that performance. we thing than looking have other shared, on overall our And did what more meaning that not our is an changed, Yes. just element

reiterating Michelle moment a that So point just ago? just one made

Brad Zelnick

Excellent. guys. Thank you,

Operator

Thank you.

Our will Research. Wolfe next question Zukin with come Alex from

Alex Zukin

taking bigger-picture – Thanks just I of and so the for questions. one one kind guess guys. Hey, question, then tax. on

As that surprise press I the here feels And a think in the that conservative, we not it’s that guess. And like the parse factor I it’s numbers, is sitting it guidance. surprising Sasan, to bit. on I little want

I good think guidance you I forward-looking is factors. deterioration were you’re script really And macro that, not assume look, mentioned your does into in indicators, in saying then looking environment. guys at the your have the you’re you that think quarter. lot and indicators those they of what significant a in And those

you So methodology? we where if question guess, – is be, if about guide not? that year, next what And a to just for And that growth my the gives – with why Mailchimp I choice, talked find I you for the guess quarter? variability then it? you into first guidance And was level the given would conservatism in what that did what the would assumption maybe why confidence tactically, – add you

Sasan Goodarzi

the question. couple I’ll of Appreciate Alex. Sure, a things. say

and we and in the things at our our approach to run company approach factor how all First guidance we how of has changed. to all, not

the as a I’ll environment on platform set all most what out other as And Karma subscription. note the is – really place assume forward-looking. which consistent That’s were run let relying into to that we in, and And XX% on which revenue much have we’re me the in double-click that their of ago, where of deliver perspective the years we our we actually that And always XX% We the set is our other look if than the few years how very set are any things seen to expectations Intuit today X that in are important the of which are areas. That’s at look take But small the to of ago, is we transactional-based. could informed which with businesses, our and account play really seen the what will we an our environment to When nor company. of commitment. I current the approach company our current it’s the our could has And way, is one. material XX% you of to know the account. revenue, matter we is we Credit in the business, take put tax overall less that impact into our different impact, start number have guidance. just Number their is included company of company, taken with and we tax. in third, that is and businesses Credit of XX% livelihood. way have verticals than out of guidance. history XX% see Karma, indicators fact, small have we X just the ahead in and not going that expect really two, So guidance, a our no is environment,

long that was feel fairly out we how very So that about informed saying we way forward. across good our are consistent our we will moving segments. we really, of view And play a things guidance and of see, the that all indicators how

Alex Zukin

a reaffirming notion follow-up. you’re diversification maybe like and sounds It exposure. just of helpful. a guess, That’s I

more irrespective is tax I business much doing environment the the of think kind that season the everybody’s their business, that you think – taxes. might might Is any you volatile should of a the side, we a resilient about – more mean just of there macro, mentioned when On or about general, on impact from recent tax legislation in macroeconomic recession instigate? type and Consumer

Sasan Goodarzi

with than business ran a into short Alex, seen we’ve years. years. there the consumers, in I things the tax we we’ve as to we business the when tax last would years on years, year XX ahead, we that had at tax what the company for as couple been X answer. view happened child to approach implication in frankly, say at the the you season season. last really nothing X of of season, so in Yes. the the the look an much more simplified many When extend it environmentally, COVID, for know, are years. experienced tax look played years. And And the what tax than tax And That’s impact you more the I’ve plus, more has last credit, the hit X in the several the probably

to impact in great need we Although what do what laws how we’re what product, we some of at. tax the that’s do well. to know will the That’s

actually we we ahead X see look X experienced normality as last years. to the we in So than more

Alex Zukin

Got with the argue it. Can’t guys. Congratulations. results,

Sasan Goodarzi

Alex. you, Thank

Operator

Thank you.

question next Sachs. with from come Kash Our Rangan Goldman will

Kash Rangan

on split the the also very a guidance. or going when clearly finish constructive raised XX%. coming for you the about forward. a the to and Ecosystem many you like plus Sasan growing be the overall to Online of going super a Ecosystem not business look us talking Michelle, are roughly outlook – that know business, congratulations at think the fiscal is business it year point Hi, revenue Small Business-Online I you you’re looks but range, where right? of from have at that XX% that’s to two-thirds XX% at the business I surprised

decently, prior that event conference subs you it one – is asked retaining course, of Sasan, like rolling stick was thing, pressure have of question this new managing pretty you Ecosystem confident such, more a a a subscribers have are the Online that I know, But net then looks So calls. doing if downturn news. on how – economy, retention but you actually in is I’ve retention So time, the at then same you that that can how in more ball your down, to to while because keep right? increases add goes are confident challenging continuing and, price you adding

So how so mathematical congrats. a does downturn? much out play Thank during and that you equation

Sasan Goodarzi

it the such let couple things even comes about your one compliment. why And platform talked the Kash. of Yes. years you me or hit I I different ago. is Sure, love X Thank we the earlier the we is to actually question. of a than when – things. a nature are business small were of on for company This

this have your go we And two of Advanced, because ago. grow XX%, share of do have Xx use is is which didn’t a in question the care ARPC, with two past our how environment, have QuickBooks are we employees. sort to ensure no years this fact, after that on we our And we at to long-term us going early environment know XX% in platform higher on have. services going but the and confidence mid-market, you so but in give of the is that we slowing examples that of set before. guidance, And we have we’re platform to we’ve when of I folks shared, around take going just – formula get which to be faster to raised are expectation. the X is today has that the doesn’t I and just offerings because penetration actually our mission-critical to that that our is And only grow customers seen the services, their it didn’t why would it’s that to into TAM. And strengthening platform we of I not to to paid ARPC they which we’re that you able much is, want X something examples XX% we’ve in to XX% would our look

non-consumption, at you are go And have going Live, we QuickBooks heads that platform. at us business growing look is, which really up one of you were an to so in our when for is Two, lift after those ago, offerings look and on are when XX% mid-market, X where because we have years Payments that innovation to actually one. was didn’t before ARPC. the That’s remember, higher we X opportunity

of almost on Now we’re we that about XX%. are And trillion invoices our of platform. $X managed growing have north

payments very rate, growing because And digitize our and form of innovation the and starting already at We’re more to customers on that penetration platform. are are platform, our of is low. they on our their more and

the those with the and examples see I the illustrative of So finish And we here now just business. but all and subscription real in of of that XX% seeing we indicators why have the strength we’re are very would strength coming that and is bank the two sort just business year. seeing – we’re our box examples

we things those are And the predictable. highly ahead. us highly, it’s that as give So look confidence

Kash Rangan

confidence. Tremendous your will tell not Microsoft let driving SMB. we about Thanks what is and dissection much of so us anything

We to first. you will listen Thank much. you so

Sasan Goodarzi

We you. talk we SMBs. are the Thank ones for when to look about

Operator

you. Thank

question Markets. Our come from will next Capital with Jester BMO Daniel

Daniel Jester

a Karma the about just spend we we question. Credit basis. thinking so sort Money? into in be moving for Mint little much just can drive on Maybe detail. in talking How much Mint engagement addition segment over of now how combination? the and that an my to opportunities Credit should minute Maybe a taking that long-term, official on there more Great. Karma And just about Thanks

Sasan Goodarzi

needs. consumer just our And project. Mint the where different decided we and a need your making Karma of consumers where although members financial essence, of has sets We part around probably a in because the matter truly level members Credit Yes. you given together did of their Mint been question. to we in of they vision, that strategy a achieved and prime bring prime in vision have meet we platform to someone they freedom Karma Daniel, life ago and later actually have work understand or It’s we a number the their life, our year Credit is students thank most. have the that a lot accelerate as functionality base, have feature of the a whether financial platform for off can how are for can and self-driving almost that be they that to no kicked ends are

capabilities time, what is. So of be Karma much kinds the one north over a that’s that part billion power functionalities deliver as sort the we actually We serve features make to Number ultimately of band as all and of is algorithm, Karma. scale the their per can and lot that in learning is some lot to two platform. able members robust of of leverage of Karma machine Credit have a make credit the to predictions the part And number Karma together the no day. Credit Credit leveraging Credit of bringing XX will Mint those machine of better matter engines learning capabilities, actually that the more decision

that So, be this in decisions our to accretive for will we and truly of smart and consumers. do expect the long-term, ultimately, benefits vision of our mission achieving money unlocking members, delivering

excited it. thinking, So, very and we and that about approach is our are

Daniel Jester

the is on outlook then that going Mailchimp, you And impact acquisition philosophy I any business. all the that about learnings Mailchimp there Thanks. second just on forward? acquisition a you trajectory quarter acquisition of one context will are maybe maybe just playbook sort from Thank you much. appreciate the provided very Great. of the what and guess a comment your would And and share the today. the

Sasan Goodarzi

Sure. Absolutely.

thing Let learned, me are that the we changed what with start diagnosing have and it wouldn’t we single-biggest done. have of any we have

we you it’s of together. very vision that say does diagnosed it. altered gone we how to your that’s moment diagnose all would would see one as are executing having not a We have we it within say better well ahead, an coming it It and I ago. if I not also looking But not that’s is with our us But QuickBooks at impacted really control are mentioned I to the can we about way, thing going as because some probably feel do are how we opportunities probably shape something, can we has would did our okay as going in that’s like in – possibilities I something to say and you that’s no a address But very, timeline to excited would I are our the priorities in that conversion after. the diagnose. has it’s we single-biggest that upfront. the are upfront at biggest misdiagnose and product about to that what the going change playbook put it do and all. But back, diagnosing that a one. job or form Mailchimp

has our playbook is The second changed. not thing M&A

Uber market. Our goal to time is

our around principles delivering that unchanged. capabilities Our vision are at help looking us could accelerate

Nothing leave would I – just would It’s report. I it that. new at so to And unchanged.

Daniel Jester

Great. Thank you.

Sasan Goodarzi

welcome. Very

Operator

you. Thank

Panigrahi from Siti Our next question with Mizuho. will come

Siti Panigrahi

Thanks question you. Thank and taking great for my quarter.

wanted of asset, payment one Just of into I that’s I guess the dig say, has. part the business, to Intuit underappreciated would the

vision would acquired like the business? for see you gaining invoices what on help also, of great. are growing you some beyond now that Could QuickBooks some trillion how trillion. $X And talked about to have You opportunity us of you long-term versus asset? payments your understand total $X.X share If last that, could that the Intuit be expand you within year, been share

Sasan Goodarzi

customer is power question, being which QuickBooks Absolutely. together. cash What’s your And our Big where our about Bet Siti, it’s really customers come the base. that’s the Mailchimp Sure. about great helping business of their flow. and center about And grow actually cash is about of managing X, is small their growth, flow,

in where accelerate to team X the spent the basic versus in. Those look see. to to the there the we on just to I have making just question Specifically growth I innovation enabling accelerated building innovated be payments has deposit. sharing experience an last around all the that always to is of to years about And much examples faster. the points the we way, at perspective, for capabilities opting be innovation. It’s we paid and first to platform – so will clear, send start be much trillion ago several our really X when moment and around a by there the are just our payments. illustrative a And ago years with growth auto it’s on XX% instant really the gives how paid how really innovation around want invoices we around have up-front, XX% basic $X of from you share, are half just data do from platform it’s managing years your ability to the because I now that gain more X It’s charge mentioned that innovate to of we instantly our – of like discoverability. yet probably do which the and invoice get years, volume you able those to because experience It’s like the continue

lot have those of We a capabilities.

Now to are faster deliver innovation able innovate customers. and to we our

opportunity more where our $X continue that’s big will But managed platform also significant chunk invoices double pay up we they to have the the showing an at So, invoice their we with ends our of can are all a – of up in share. digitize take down rails. books, small day, that that look QuickBooks instantly business-to-business. transacts customer. where this is on on customer trillion QuickBooks business-to-business, a business, right it’s can and have the That to another we you of sitting And A one them end that that area to of that actually up is send opportunity invoice.

a just shared of end that’s $X things to moment I we an are really this have working accelerate to I penetration our that I couple the increasing with types trillion. on of that faster. example of a what going of questions ago our back addition were We on So, example to These of need rails. guidance. already around go gives around happening will one customers to and And think share this really get customer. And it’s what It’s invoices is the are asked on managed don’t – being great platform. us acquire our paid helping small confidence business our in

great their the we right sort help as pocket put confidence faster, ahead. do lot look is and how of example of we Now And our question gives to us in win. a this more of money it’s customer what the a is

Siti Panigrahi

go are you planning segment – mid-market? That’s where is you quick and more you right are mid-market? And your you to right, of the beyond help us now, meet to your into that that up Can to features understand great comments marketing color. also something And one are to employee are strength targeting, the who trying e-mail the expand on just Mailchimp are maybe it Mailchimp’s trying in you grow market. follow-up to when a

Sasan Goodarzi

journey. very Yes. – years, for that Absolutely. liken that are have listening journey would you would since Mailchimp many we that the us QuickBooks on, followed are I I similar to liken the and

than employees. of is there in has we generally small Mailchimp the that served a lot Specifically, overlap customers businesses, less serve. XX of the type smaller

capabilities like ensure able do And However, some to adding the you actually to lot thing agents features the have sales how customers. and the a we down force mid-market what know serve basic but same things that doing success inside now Advanced, are serve billing has how to able right comes to it it with built the and for to build lot actually have to customer functionalities, you of A these to be we of mid-market QuickBooks be Mailchimp. and mid-market customers. our in

additional benefits you success So, inside But we sales market customer power want the our that we those us And attractive are it of has able it a out market serve. of also put the for sales businesses able out sort far QuickBooks, building lot to to we in functionalities, of are customers. the that more are ones. but that building and those the then and customer serve we to small brings to be feature success really customers then makes going with together together and to deliver to with

Operator

Thank you.

Securities. Wells Fargo with Michael Next, Turrin we have

Michael Turrin

Appreciate and a XX% for as ever The from full highest question. Thanks the it’s starting good point year, the EPS taking the the there. we seen growth have not Hey at afternoon. among guide highest, Intuit.

environment. notable it’s have questions, current given You some had especially the

point algorithm? business helps. unlock you to just range would EPS platform that’s target Are you the bigger increasing helping us some advantages you anything of But with would segments, that else finding to? towards is clear the the point it’s there else are newer anything growth think there I for small or

Sasan Goodarzi

I what Michelle earlier. Yes. Sure, will shared just amplify Michael.

them it’s you leverage of is innovation We view actually company. on actually an and durable. three Mailchimp about are to also is acquisitions that’s one have we that we services continuing like And at Credit of it’s the are innovation that kind once and can fueling and context, times that multiple margin and accelerant build is as Investor having us coming how in One build and And giving Day. the how significant our to stack, use technology places it’s where so one through that leverage we of side. things excited we there vision them technology technology lever But across fueling from the our walk Karma.

all leverage once company. out across that be to is building building and from the large. our just we marketing success across which quite we how our of are is operations, is second so that platform The the And we are segments applying used recall, our customer services third technology of all can MarTech get the the

company over from customers. own their out interactions have with million operations. every segment And we XXX years ago the builds shifted We

not the same services it company only like the building are So, that Karma sure leverage across we making Credit by and Mailchimp. acquisitions used that then our the are company we segments and and platforms those operations the but and those ensure once, across

heard what’s ahead. across So, believe looking that that’s from durability company, that we is and technology And coming and the the the the leverage have customer driving Michelle MarTech year, success we delivered talk operations. what guidance this about we past you

Michael Turrin

you. Thank

follow-on, a may. I quick Just if

targets there over guiding seen. outsized longer around useful the are term below XX% for growth. clearly, mix the past Karma, the Some commentary was there some throughout growth year. With It’s – call. we have But Credit outside XX% you to

you. targets comps tough frame the term macro So, the wondering longer some to we I assumptions Thank disaggregate that relation help in am have guide the way there to is any if of can seen. versus you

Sasan Goodarzi

of a for expectations last lot and comp our Yes. in fact, is in XX% both. of we Sure X then XX% have long-term year, is And confidence Michael. to we growth. big a It One years XX% XX%. have

unchanged. is that So,

seen yes, credit the that just is impact. loans, trends of that not is really probably other can that vertical, the credit in vertical one the home the every you we the has has really say our guide. verticals is vertical incorporated there personal of and the our element, current card any seeing way, you money bigger But been the almost comp. When guide, around really the impacted. tough – our cards, look other by then on significant element, than, element then would insurance So resiliency and see – I And course, a have the we platform, at are loans, based

So, fact, macroeconomic that’s the we the, environment our into second is guidance that piece that in the incorporated we see. have

Operator

you. Thank

Our will Thill come next question Jefferies. from with Brent

Brent Thill

economy been have believe, CEOs from for wrong, right heavy you that of base what your I this a kind a am number in results I do environment have curious that’s services into the I playing small to helping in of if business inside think Is the small shelter shift the small out business nature calling a Sasan, core? business. Thanks. in product-based. now? am correct me services-based seeing And of you the you some the defensive of are

Sasan Goodarzi

when a businesses. in is really service-based we businesses with look a It’s And the just XX% the service-based will absolutely. service-based XXX I is I And that the sort that zero we there are about we very, business And businesses. say think and the diversified Brent. employees, great question, And is elements. very strength are answer the I think would market it at I is is short product-based second of of start businesses small in Yes. to just our two And reminder about of XX% serve. thing

look another. ahead. sort vertical helps only looking And not anchored our are not diversification really backwards, as We of of the overly in one or we performance with opportunity but that

Brent Thill

And business just segment small the past SaaS. compare can Karma and contrast? compared look know be give downturns, Credit at to you us a in have you when you more I

Assuming the that something not but virtually that the services done you a business? to gives have got that’s there defensive have layered You they little of are what if that got and what diversify? around. different saying nature business Is in case, to guide, things the was saying the worse

Sasan Goodarzi

data Karma, they The Net say, single critically so experiences about by offers quality, But is it, is of which customers, that that you aside years partners. huge raises it we know uniqueness need there Lightbox. know we would where can is much a when from environment, members. Credit need about trough, – need, the high our it’s certainty putting it Lightbox, it they what how as this these and million they and Promoter, incredible that quality largest, more With and the fight customers to I got deliver which importantly, of is a to in XX-plus behavioral XXX side important, foundation,

I have XX% and a points certainty the year, almost models because of of transactions credit it That kind to existed – can want, So, the of by years lot is institutions of ago. was in on last higher they Lightbox, way, amount. course, the recession. offers almost growing, identify last single-biggest have think loan when their our of now non-existent And of provide. so of don’t perfect customer that and are Lightbox we they than personal thing card the part Lightbox that’s where course, and of And we financial the XX even the want make they kind

scale just So, And say it’s thing. the the I that biggest of would is single the platform.

match products financial would to We Lightbox. large the between have. they a the that want But what of economy I are providing say a part consumers

Operator

you. Thank

from Kirk come will question Materne next Evercore Our with ISI.

Kirk Materne

of was to a of in much. it you congrats. more echo wondering you detail. bit I And sort could have times, alluded very if just the Thanks Sasan, a but into I this will little couple dive

Thanks. Just budgets come trying was benefiting consolidating in idea your office about consolidate the think a and backdrop, that, more that of seeing are the them You into a both payments maybe to business now? the from bigger just are help I the obviously starting to anecdotally scrutiny, talk approach? payroll, all platform office. customers under the of you to front might are platform potentially we one and small to on best-of-breed of versus we kind a given address I economic in and have And back while as you taking ability towards soft platform power curious, to the in way go

Sasan Goodarzi

is Yes. of or one element our Sure, probably the of in the that understood benefit And provides. misunderstood this most least Kirk. fact, platform

ago mentioned with just really item a something I line question, that is are moment that will small it so businesses your I budget. start we a And and because the on into stating plays not

the success. are that platform their fuels We

We Without business small their platform, mission-critical. our are run can’t business. a

play it’s in what’s have the the really And frame we important to that small businesses. of mind as so that of lives role to

frankly, with with to forward, be that but to they X services there they different use to using go-to-market or save And money customers will want what connected about platform. less should actually somebody a our this is conversation even area an deal our actually all I If have of the have a X We don’t potentially their the from that and bank I all of and the years on services else’s somebody The can efficient, where effective see where don’t transactions. money, everything on – on. second, platform with disparate to conversations doubling evolve get on ago. all of a that have do else’s are have us and don’t small more your fact, is we business things our platform. is your because use we go some where team down do applications didn’t ago, they our how having these just perspective sort can looking which is years it services they your why yes, they we their far more payroll if because see so save all accounts those use do discrete now can payments, where somebody to are or else’s question, And am capital from we in they I I on not have

believe we we look as is opportunity ahead. So, this an

Operator

call back to today that have any the closing And would for all the Thank is and you. to we remarks. additional gentlemen, I turn time or Ladies management like for over questions.

Sasan Goodarzi

are the for you of Day our to you, at And really hopefully, XXth. thank forward looking Well, we at wonderful seeing, Awesome. all questions. Investor September

We why customers ask And experiences team great will, work. wonderful lot Bets. delivering opportunity probably will depth that more the our level we through that number Big not the of the in and a all across only one, leads around connect this a next to to five great environment this most they matter questions, of walk our of you my but with have are

you. you then. will all soon. So, to look and good, Thank forward seeing you stay to we talk safe, Until be then,

Operator

conference. thank any and Ladies you you gentlemen disconnect for We may and appreciate at time. your your time and our this today concludes participation

Intuit (INTU) 24 Aug 222022 Q4 Earnings call transcript