Earnings call transcript Q3 2023

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Operator

Good afternoon. My name is Abby, and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit Third Quarter Fiscal Year 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. Instructions] [Operator

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

Kim Watkins

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

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

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

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

We've today's Some non-GAAP GAAP numbers of remarks release. press are the these the basis. numbers reconciled and in in non-GAAP presented comparable a on

Unless rates rates otherwise current and the comparable to business to period period refer associated worldwide versus the metrics noted, and metrics. the growth prior-year growth refer all business

our supplemental call ends. remarks of this A and after will financial be on website copy prepared available our information

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

Sasan Goodarzi

and to Great. Kim, joining thanks you, all for of us Thank today. you

per we than operating quarter season, grew tax reflecting income while guidance. Third a revenue and unique expectations, our lower X%, earnings share exceeded

growth continue the which grew Business quarter. in XX% see We to and strong in Small the Self-Employed Group,

important in most ability including overall earnings Our the our of to power while performance this durable year to growth. maintain our investing uncertain strength and portfolio, drive demonstrates platform the in long-term times areas

team, now revenue to digits, even revenue, I previously to very per and guidance. more income raising our am we grow operating year total expect our income, of margins are company earnings operating guided. double expand XXXX We fiscal than and proud share as

turn Let's tax. to

X% with which grow tax While decline in-line season, making was segment IRS July with progress historical original expectations returns a year, this unique to XX, X%, trends. transforming total Live. for returns our This we the to overall through below assisted we TurboTax expect good was are more

nearly We also of our the share expectation. decline point, X.XX DIY to returns also below expect category total IRS

the IRS did receive tax season. pandemic-era driven declines file are past years but those taxes in believe and We category credits this who and during order several filed not DIY the to stimulus by

a of equals revenue points X.X TurboTax of of growth, IRS point growth. reminder, about As X equals DIY revenue every point growth every share about return and growth TurboTax category point of

approximate The in expected IRS TurboTax, $XXX of decline share returns impact revenue DIY versus negative an equates and expectations. total original category to for to million our

of primarily approximately share this to season. XX stimulus taxes fiscal down this did filers not points total returns We IRS be file expect basis year, our reflecting pandemic-era who

the TurboTax of be this has approximately four to per over Each offering trends since category returns of period, Over total years exclude in-line this points. users point, the IRS although total with average four-year periods. more longer-term been Free up and unique tax basis up share trends. prior-year revenue file period approximately to expect X These XX ago, of returns we our points, return annual be average to pandemic returns be total X.XX and to DIY be up far the are season trends began up in share X%,

working, IRS returns Our with where given assisted declining. strategy Live have environment are an category TurboTax experienced to transform is growth the in the we

XX%, return this per average XX% We expect and revenue revenue to TurboTax TurboTax Live year, customers up grow XX%. total with Live to grow

prepare priority immense we transform assisted has next While last penetrate our driven as for tax opportunity remains have rate. This year. at tax the and TurboTax to six an the segment still over Live an growth top strong we seasons, accelerated

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Karma, Credit prime are now With building credit where of is members the today. Mint experience underpenetrated team for a Credit new we part Karma scores, with

understand prime wealth. which out Net During better began the their quarter, members we rolling Worth, helps

employees Big fourth business small with our payroll new manage our become X this payroll, grew of capital get fast, customers and to helping driving and by Bet is ARPC. our QBO higher Our confidence point, customers, an over in by In choosing customers paid growth customers world. omnichannel center get the offerings of double the U.S. mix increased online high-end digits quarter, pay

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businesses, We progress digitizing significant ultimately tremendous a are improve small payments, see cash completed We making are BXB and checks. their BXB flow. XX% between transactions with to of and automate still as transactions accelerate opportunity

customers Following to beta of in January, QuickBooks Business millions pay own functionality piloting QBO we this the initial month. solution, and are native of earlier in QuickBooks launched of bill our our this launch the Network

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

with of disrupting three eCommerce developing end-to-end global growth a third, second, have holistic mid-market suite; the on growth and an accelerating We customer CRM our delivering acceleration first, approach. full with a priorities vision and by platform; go-to-market marketing automation, Mailchimp:

higher we several stronger revenue quarter, growth. and We're paid last along against customer retention paid versus priorities. made customer, growth progress quarter. This per to see a last versus quarter, in continuing these drove revenue great conversion, improving This, point better with acceleration

share progress: our some around me details Let

our customers testing, and we shift driving free introduced paid offerings. to similar conversion Mailchimp this customer for early trials, already introduce help new end QBO. is higher drive mix what To we In over and time, into to offer higher growth a

we continue our customers, and to assisted to more virtual onboarding, customers goal features, expert advanced leverage awareness drive offer to of retention To of stronger these guiding and with usage. mid-market platform the increasing

saw versus value which to quarter, increase retention over process we more this we help quarter, last going than high in time. point stronger through drive This onboarding X customers expect

strategy, work product increased execute global drive indicate driving To our ultimately Early and the drive growth into can this and revenue we're translating growth. multiple results translation languages. international activations, refreshed is accelerated

Big which are customer are And million franchise of the we a disrupt our X.X is services. today. mid-market customers, these of Online business ecosystem remains mid-market across representing strong, full driving of we in Bet ARPC and our our serve already TAM growth fifth mid-market, small as to customers expansion XXX,XXX

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and are for people shift. to well the serve, next this positioned we power as that we enter We technological communities prosperity

over let me Now, it hand Michelle. to

Michelle Clatterbuck

Sasan. Thanks,

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continue Second, ecosystem. customer time and Online revenue, QX. driven higher capital effective several Within their payroll, end total payment in to growth growth focus quarter revenue offerings. increase flow in payments, was to growth customers an in per XX% on mix-shift we the as low-teens in a volume an to by manage customers the reflects reflects payments customer payroll, offerings prices last payroll growth services customer. ongoing adopt Mailchimp revenue which in growth connecting higher tracking, Mailchimp, increase revenue more includes Growth Within and our quarter payments, from and the points quarter. grew growth. accelerated cash and

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our to September several We for value. price last prices products desktop also raised for

growth Looking we the next remaining expect strong three-year ahead, the revenue continued we and of ecosystem desktop part quarter transition. complete as

online to ready. our and ecosystem, out will our to migrate offerings We our when desktop build online customers continue seamlessly they're help

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our Group, segment the of growth full revenue are are from XX% a in to Self-Employed guidance strong and As XX% year we Business raising result to XX%. we the growth seeing Small

revenue delivered million of Karma QX, XX%. $XXX Credit in down

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stability seeing our core are more across verticals. We

partners eligibility cards added credit both partner more We eligibility, continue quarter. facing to tighten we to some loans, personal continued loans, while In personal and expanded diversify see constraints. the we to partners see In base. some help partners to during platform our the funding

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proven run in economic the operating and playbook a and an shared we use the we consistently for I've difficult in this times. includes good both As past, have to system operating company,

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

Sasan Goodarzi

Thank to have but your of months, I years. call, appreciation Excellent. you, last Michelle. us XX Intuit express the be last to you with for another sincere contributed couple since for this you'll earnings is that all over know want I my

better, and me, entire made and am I my forever have leadership team, company You the grateful.

our confident uncertain we and and up, in Difficulty] macro [Technical Wrapping in feel our Bets, expert to customers. Big our five platform mission-critical an than AI-driven strategy ever

questions. to Let's it up open now your

Operator

line Deutsche question Thank from you. Brad Zelnick first from Bank. [Operator Instructions] the Your comes of

Your open. line is

Brad Zelnick

Great. a on And phenomenal Michelle, the Thank congrats much taking run. so for question. you

one it for you next for on will Sasan let Michelle, the me especially call. earnings one I've last her quarter miss We sure and for call. is since got in sneak maybe

to where is advancing how a of guidance Intuit interaction? to bet think generative customers the speed? confidence should lack you may platform. positioned your is you're AI in using how about spoke how connecting where generative I Sasan, human-like able world But overcome be a by Because helping AI LLMs Live deliver deliver big them to breakneck in Live in at world we think their about experts

Consumer Michelle, you, operating margin was with all segment that for last mentioned. reasons your for consistent the despite the year the pressure on maybe And top-line you've

you how have marketing the much. into end of back the into tax would you play out investment dollars all so at if much how Just Thanks scale curious even had perhaps season? visibility might that and

Sasan Goodarzi

Brad, off the you thank fell the part your Great. so reading And that for last question. was I scripts. when of I much heard I

connection, start bad answer sure me let have phones and question switch I to asked. hop if you I So, make will your But question. that the back with I

back years us to I four First would of take what declared we all, ago.

As of you a four-plus we accelerating and the growth. machine that we've have learning, record years. several is a that in believe to It's that and Internet. AI. data the core our investing, global it's electricity that our generative experienced years going thing ago that time over investments four-plus and engineering, believe language in believe, processing, which in to And natural why know, really been investments intelligence critical as ignite on of with context, company, platform knowledge been ago, that innovation, biggest it's I've we years last say I to the artificial And is and the with next what as to big we've and I why specifically, been AI it's started

if our that of large by are have, about them is a decision. solving take our we've interactions confidence, of at machines And it confidence, really doesn't about talked is the confident helping that it large unsaid in to fact, customers all necessarily if problem look across back which our And customers' mean problems. is And biggest today number the solving it your interactions you platforms, always around when actually their question people. our feel around in I solving it

serve, actually add and XXX couple that a excited ago incredible tax, an role customer, it's we Karma, it's making our important digestible have consumers, investments so are whether AI to with that to sets, more business, Credit Credit whether things more where Karma we customer and is AI every accelerate, we couple from years data, that across whether an across opportunity small the in we easier, it's has ability could four-plus imagine we in of accelerate about have. customers. never Mailchimp the our to with reason AI for do confident generative The that you non data data such rich us of consumption. the more our the view it's inspiring is things which that it's you and penetrating actually generative And fact, we because AI, possible now And is played to that can this gives

saw with our and accelerate so as learning this accelerant So It's an accelerated future, excited coupled investments can innovation we're why coupled the our ahead. machine as AI, we we've believe and look investments that we that with it's for we years us, made, several language large ago. we the we because about actually why the models,

And clear. hopefully, I was loud and

Michelle Clatterbuck

the was all, that of kind thank you Brad, Yes, for words. first good. And

power when there be Your company for started our us process. and maintain to three- our ability a it the going assumed really question earnings around one-year would we within and whole it's last were economic planning that year. CG, We as focus through this year uncertainty

revenue growth. we pull and as then, funded the so, that levers delivering had year drive being to customers that were list went through our the important had maintain were made to we our we made process, we for that most sure that to could throughout able And those earnings were the we able going be to as power. things we of we And

it's were discretionary hiring. the or of some are or those things whether we moderating which had, travel And advertising

result really our really, expenses planning. at year but in lower not the success. it tax that CG for at level in year started in us did But last units about so, maintaining it's And lower segment, specifically margins, customer and company this also looking

Operator

the And line Sachs. Rangan your from next Kash of question from Goldman comes

Your open. line is

Kash Rangan

the to of tax And goodbye business. Consumer, miss longer-term Michelle. to very reaccelerate in Question have to to to We'll the targets team. you you. going you're Sasan XX% to for get you, in Thank and Sasan, order X% much. back the

be gain to go the old it back does the plan share days, grow That to great. basics So, do do category? how you you category? how the of if -- from would we can that And

does potentially AI, sure against pretends it open that more I'm entrants? bare is there thesis, Brad generative netted about it that which to competitive a to opportunities that, Because And taxes. you this have easier file new view for maybe a makes was different earlier. Brad talking will Zelnick, also, as -- on it up actually

attracting nets you expand it at it Thank the same the for set, do new about out Or opportunity how competition? guys? does how think you. So, we time

Sasan Goodarzi

Thank you question, Kash. Yes. for the

So, reaccelerating a would things take couple of I I'll question your start revenue growth. around with.

of at in stimulus category. performance That this those more have environment. own a into on believe than our normal year have, to First if -- get the lower we came on we really impact year. the $XXX experienced we'll their because all I million number tax to left filers is performance look pandemic all, analysis that and step back what the the really to lower it's credits. that of analysis, this get we based we've all of based their now in sort done, really the the of One, that returns drove And era access and the of expected

returns is reacceleration, I business. second performance The thing get where were question our in around environment to feel TurboTax to lower the an there your this Live where about with good very

their tax business TAM the that get offering billion done of done. this If in the that growing context And largest that the this the to get next it's you be an I several to consumers TurboTax And actually business. $X $XX of or years, getting billion-plus will after is go in is think their part of now businesses believe XX%. assisted business about really taxes it,

number the next at that therefore, Karma that we going the the be year growth this a but to saw you returns, into what that service look the And had down only ahead. we double we chance year of based And on And going accelerated of of year. also going our confident on platform. into much learned Credit enormous things shoots we our rate we're next in penetrate to learned have Xx we that this an we we a as number inclusive not in lower of exclude really performance believe very if green able to offering year, with fact full more

ago on your ones second particularly listen, question AI generative without the that we're years we record, me disruptive. AI, And in four-plus data. it's is will AI, and let the made were meaningless absolutely that investments with data. And be say we why believe I would couple said, that around that Because we AI, really

having and as made And data Kash, consumers a businesses, it for we small investments view so, an with the XXX accelerant. of see incredible that in actually, we've

And manage it's comes or a I'll business or have run talk have remind it's small consumer, TAM whether billion just penetration. to reason their Sheet, a it's us about our often X% of, Google with the of we Excel, most $XXX use And customers [indiscernible], their business. manage their life, is business confidence. down to bookkeeper go they a help because And them to X%, all we

we think generative it's last are for So, we four-plus and with in AI, now us, data acceleration because we with what have in an investing actually in AI scale. the our investments see years incredible we,

anybody have is customers which data scale, that to sort sets of do. rich have means scale, data AI customer scale, else for do for hard we we can undisputed, things We that and really is

the are and seen the see given So, given we're investments accelerant as the that we've possibilities, about currently and we points an it excited actually making. that proof we

So that's the it. way think we about

Operator

The next Evercore from of line ISI. Kirk Materne from the question comes

open. Your line is

Kirk Materne

offerings on you luck your about the nice you the talk right for I business? and can now. of some you There's Yes. Thanks. in Obviously, And thanks lot you're frankly ability of play on you small about SBSE. that what Michelle, like just state debate had there Could in of your guess, all Sasan, seeing a just question. for in next all different endeavor. the verticals the a Congrats, good quarter you talk to Sasan, payroll payments? upsell taking terms the of

Sasan Goodarzi

Yes, sure.

One, are sectors they we frame Kirk, in of the small depends also, what profit an still there our platform It depending across our platform. growing. see. the my we They're that on me, see we is a on There's businesses' small and what to One businesses have still in is, off sector. impact of growing. serve, they Let two dimensions. on aggregate, answer all is couple things pressures. they But they But revenue. see that

lending, in So or estate serve if if more those don't real have they sectors. in pressure certainly than they're they're those profit that

generally the see would the of -- them businesses. the customers bucket [Technical mentioned customers, environment than still businesses points moment we have net-net, younger the of some the cash also of standpoint. they impact the the consumer tenured older, ago. pandemic It's with did and put XX% the feel reserves since you newer those of we sort the more reserves than pressure a more have that they They are that pre-pandemic. We actually started I they customers -- of that have more look of cash aggregate, data in in the small But spending growing that from they state when Difficulty] of less

at we we intentional is points resilient. when it's said, immune, are that being sharing to not the continuing platform With about platform, our but our today, we're why be look -- just we proof shared that

actually I on double U.S. growth actually quite strong, online Mailchimp same our time, proof are strength across continuing higher-end serve payroll -- payroll is when to you seeing shared when overall down customers At total digit, is the long growing we're in QuickBooks, look of our have our our payments that for our that -- platform time. we points seeing but payroll and customers X was the our is to offerings. And points. we're that in a migration our been a shared, serving mid-market payments The some healthy, volume and mid-market actually performance data we look points so, at at we XX%, it's payments and which -- the customer

So, feel delivered we've good that we see net-net, we not but look the the really the we about are resilient into of growth immune, sustained and we are we KPIs and year. trajectory as next that

Operator

Your line Stanley. of next the from Keith question Morgan from comes Weiss

line Your is open.

Keith Weiss

the Michelle, you great -- for guys. over Excellent. And with you working the it's you been for Thank taking question, years.

that the done. great So, congratulations all on you've work

of kind of loses bigger I filings by because question refunds, the guys Sasan, don't dynamic. and share? TurboTax -- others throughout this understand therefore just get component the and of kind And understand what's people the which how is number season in down one. getting a a that I it. tax kind on unfolded hit sort quite of question That's season. DIY than mechanism harder share for you overall understand right? I of Like, you why of lose a probably less

And has pushes fiscal two, approximately there to about your to ability date be a number later file tax of filers question the some for season able year. been an that out and extended concern at of XX%

equation the that. impact that of any that this into mention side of fiscal tax didn't might You year? push next Was some significant strength there just from

Sasan Goodarzi

great Keith, question. sure, Yes,

Let me your with start share question.

the credit. it filers almost so came First credits majority and -- to the before, taxes all get that easier their say stimulus them and the foremost, the of of all have tax because that tax fact, would all of category we not do-it-yourself that came to their And do-it-yourself that are of into and in category dollars to access those filers the close those to, left to into their in category. access see much were to we essence, was faster get

largest The did when the category taxes share also but file at get during review of Live got what customers by is math. actually reason and actually confidence we down came ahead, earlier. left share pure that of cohort we that actually pandemic in category that access And the the cohort our as do-it-yourself that those just share ones we folks about we our largest our retention, We're to talked we, math gives TurboTax the came look cohorts the they numbers and retention key era. in performance our is in pure see the which is to in customers not us what are essence, of that when before looking credits the that those in player left,

the It's So where share -- math. how that's the them We that's when they out. of category, pure left the plays left got and majority TurboTax. they

attached Keith. dollars really But context company, it there's of terms it's billion to extensions, in yes, we of -- consider don't it, material. In $XX

show it. talking much didn't and really we spend why time didn't that's So I about

Operator

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

Your line is open.

Siti Panigrahi

with was next taking you. endeavor. for it And working luck my question. Good Michelle, your with great Thanks

to that Mailchimp. into It's to And growth dig mid- Sasan, in I see to Mailchimp. high-teens to good acceleration want

versus really you the like spending (ph) this at seeing seeing about talk made are [sustainable] the how you from your forward? environment? are much could Is growth point? you in how So, in you changes, macro demand some a what contributed to of marketing going that headwind on base? What pattern customer And

Sasan Goodarzi

going part your forward? Was of is question the sustained that last how

Siti Panigrahi

Yes.

Sasan Goodarzi

Okay.

the question. for you thank So

in an the now with really strongly platform consistent everything we felt where insights And customers, so, is one the we how we applying and felt cash together can flow, it source all, very the what you to we on. truth environment in AI with to where with we and truly First that of manage help with to, AI, probably and for running a your months shared our you access I the last that ultimate or place business. opportunity can your Mailchimp shift that's I've deliver customers' your becomes we QuickBooks for the and of we do the XX data are game that you bring grow focused platform that very have changer generative permission, to now help had create to

thing With that this said, consistent all with all very that is been execution. you the I've is about that

website. that level we the upgraded that the in tailwinds. execution. talent of We've been revamping talk not macro at have from the put progress place in is seeing you're leadership It all us the So, the and end-to-end. is Mailchimp This about that all is to better Mailchimp then across any talent we've

we've and which our deliver not improvements. we're that expert assisted innovation platform have our we We're the And the of mid-market. getting, and that lot and helps revenue, to benefit, business customers the onboarding looking a line-up using also but virtual features to us our with getting retention new on understand capability. AI expansion functionality have doubling only and We that We're product. at customers existing what made and down model improving

seeing possibilities were sort excited the creating future to what of for And per one our with truly continue conversion and paid seeing So, those for AI. and all retention platform improve coupling expect with of customer, that your we're do illustrative platform, paid across becomes examples and source possible doing bullish execution, or increase, of data execution. business. small customers about truth can what's better better QuickBooks to the this relative I we're we to businesses, what I am it a gen that particularly with increase revenue and is why

Operator

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

open. is line Your

Scott Schneeberger

very through going of The for much. is best saying And sure. IRS Michelle, I X% Thanks down a double X% down Sasan, end the wishes guess you're to be question. this is tax July. year-to-date,

looks just your Just year] curious continue -- what's take part future that [flow in if a you and and this as years more going to one. it we eyes down That's (ph) get to normalcy? just you pandemic-related is think number in to how back more

which be part usually be X%. would X% number we and but have the which that TurboTax, Consumer at XX%, unit negative A guiding B but be to you revenue per and And anticipate you're you -- historically, -- look return, X-plus, to two, X% segment then growth, you equals of to when anticipate plus growth plus was revenue

you not but conservatism that the So, less not revenue maybe in maybe as Thanks. else category? TurboTax there? getting products in to maybe you're per it's -- so or is something there little a qualified something were is Or unable that's some financial it's directly sell, related there return

Sasan Goodarzi

Sure, Scott.

making even a that take are assumptions take year. me the there extensions with last on year are than more two view all we we that we actually your what have data year we and is, One first bucket Plus was is era were that states and see this lot in Let from question. place This their year based There out. will last in those get the lot pushed year, more There of July bit came era filers beyond. there pandemic filers. or money their through of stimulus the that pre-pandemic was in a the little credits. last tax last filers have to the still

impact, our we of when course, an X%, and has IRS filers, be down is compare out view so the about. year, take we to talked last has, that and impact we an the that those And performance X%, which on that extensions so will

the really stimulus had are had amount we pandemic tax Secondarily, of out. sort understanding era these they make an sure or those reality filers more of analysis did credits to an And of that is incredible there's all we by and be filers. to no

they our of are all So out. based on analysis,

what August. year I be our expect be to flat, is up, But when at we that assume, therefore, And would we'll flat. at we've going share we on the even flat it a at you in mentioned. based assumed minimum, so And we in of with will guide, just guidance reasons minimum but minimum, course, IRS a this that maybe a

first So that's your the part of question.

your of question The good I'll one, get and moment. to a a second in part is really specifics the

with down, capabilities. AI IRS our I future is data And we what can environment future Live. just our Live platform, TurboTax in and reiterate is even with our an of do of growth where returns think the the sort went especially

forward terms Live the growth. the have going (ph) growth customer assisted platform real our segment. of [accompass] and really of going disrupt be We growth is And in revenue TurboTax our to to both

nothing point just shared? point sort what of sort to would adds really Michelle pure at Michelle, the at we me But beyond this I all to weigh ask for look in we folks but weigh that. ARPC. to up just may when terms math in this, of on XX you I in and just ask at just let up down and in Michelle. look on our what speed It's paid beyond comes And of units that

Michelle Clatterbuck

just Sasan, units and some trouble button No, with be can with rounding having there. the mute also of Sorry. returns. I'm it

concerned wouldn't I so, Scott. on And that, overly get

Sasan Goodarzi

it. Got

the So to tangible the is point sort of we headline very units relative is, the ARPC XX growth in got. that

Michelle Clatterbuck

Yes.

And said of you points to X%. down shared, the You Scott, got ARPC. we be units then as XX expect the we

Operator

Daniel Your of Capital next Markets. from line question the BMO Jester comes from

Your line open. is

Daniel Jester

more couple for Great. taking my Thanks on question. tax. A

how this retention this in focus for mentioned on the I think call shake be you of that's overall just did already, the platform? But be you given going year? future factors on that of the Live you important before retention, to that going down out mentioned the to How year. could because is

And trading customers Thank you these to provide be competitors? growth, if color customer of you. up are would from Live takeaways Any helpful. from in more you Live? can could terms DIY share Or is getting there you

Sasan Goodarzi

Sure, Daniel. Yes.

filers more came retention yes, all, heard would which And about that now X at Investor we you is it's like customers of of share pandemic-era we the as our we specifics expect across coming But be of and to right we'll we First of what we'll expected of more in platform, talk about Overall, the seen in we felt what into you're because Investor our course, saw. of point-plus. down Day. earlier, very these sort And us get existing have back, Day. it, and really and say what the retention again we've categories. mix Live left and we good what

those prior year getting that those done, assisted. both our inclusive folks life, where -- we their is shops. that majority taxes upgrade mom-and-pop and our of would And chose the switches year taxes a that thing It's in their a those also of get that's second a shop mix the something platform go go Live competition really, XX to lot million shop. of to ultimately them of I customers because did the it's is the get of will mom-and-pop to It's the a where to a say from mix. sort changed prior remember, mom-and-pop a that themselves local were ultimately to

the a like, were we some concern prior that's or retention. believe a mix we themselves use And because a mix taxes and question continue. that those confidence have we year Live and of getting chose a So, will platform did to of then that and good assisted. Those that's mix last

at full much different higher we accelerate today. will scale, take service penetration than either rate be Now a we'll to as further believe because service it even we full

So you would that's I it. about think the way have

Operator

Your from Barclays. comes next question of Lenschow from Raimo the line

Your line is open.

Raimo Lenschow

Karma. for One question on Thanks in. me you. Credit Thank squeezing

that headwinds actually guided you. with regional what little that you of there, but turmoil you and there, services a we industry of talk previously? You financial lot Thank about kind bit came had where a what doing the in saw played better Can banks, this quarter quarter you're the had terms obviously of a raised than the you guidance in the after out cetera. extra et

Sasan Goodarzi

get to which areas. see our data We're approved for based in of and is Karma for innovation of high looking is Guarantee, is by in couple certainty that for our AI continuing Credit One in strength capabilities a to to on actually really member cards where unique very the and what some because a parts driven Karma, they the we are have.

make money not that, their further, Credit have engagement, just based account. were I of a destination can we in to chose the higher that The Karma. XX% for mentioned. number this the second shared, put numbers increase and Karma the always on not customers on I platform time, but the a which of Credit ultimately over where, to saw some And TurboTax with monetize in frequency TurboTax on consumers that in And Money. is is we as a Credit doing be are consumer the do essence, we Karma only building even that revenue we're we And the with Money integrations

year, left quarter of the the to So saw what our that confidence why in Michelle saw across earlier. performance across improve That's Credit really, and then cards And that Karma we we one it's we, provided have quarter. innovation shared we the guidance to Money. in course, the with

Operator

Your comes Ader Jackson from MoffettNathanson. the question next from of line

Your open. line is

Jackson Ader

guys. just last We to could filing the we related out saw part of of program, our release the largest study hear potential are threat I but Act Inflation direct taking came the IRS maybe if thinking that Sasan, that maybe, for you're the as thought press questions Thanks Great. what Reduction year?

Sasan Goodarzi

really consistent Yes. Sure. think I'll probably question. a you this share couple of what an to we've we about, how is but talked important about time is perspectives it. for with Thank reiterate the that

is for that the consumers, the the think free quite the of. to simply can't remind I actually all high. I facts market. first already study. the the is thing would I and awareness have we tax foremost, And and already is available First one That's us and first software facts for vouch that their I can in just vouch that are

observe I where tax the at be One last software. free yet them, the just entrants, a I free platform. Karma of is they acquired were was say four-plus entrants, then if software player with entered in no sold are. can, Karma. to little would the very what And another a providing market the impact. acquired course, Karma sort Credit second years, of of several of say, tax into into Credit I their before another And trusted to when thing have you Credit And we that big would tax think large will software they marketplace. tax look this And reminder the XXX we results very we million-plus you free there customers,

that The free and to point tax is high. software consumer, available, the awareness has is extremely available already been is every

the have And about is going software think us, dollars, way not so and This of free. we cost not the sort of free really is by billions way, actually another available free. tax it's to is so immaterial it's it. I'll remind taxpayers really to that's And

say would I thing last to our the is vision. think I really And back

done, a which beyond get to TAM billion else monetize our really billion it out our our taxes to $XX than And other tax. tax, we're presence. choice, beyond $XX being we platform billion and get business delivering help beyond your means can Our opportunity being to really, declared in that Karma after, the tax. are their ago billion means Credit serving of That's $XX vision what is somebody less consumer done you has through where we're focused. consumers become That's tax, $XX billion do-it-yourself. been biggest from we And of $X That's four going have future. you taxes really we of the benefits which years that

threat for announced, at that the not And a IRS all. marketplace, when are so study. at was this Facts study us, I facts net-net, is really the you I think a in think about it's is this look friendly, the

Operator

from of from comes Brad of America. Sills line question the Bank next Your

open. Your line is

Brad Sills

attribute was the key that help Great. here, I premium TurboTax little question your unpack also to "Don't just to of you around nice items or TT what we'll a wanted bit much. a TurboTax shift would then as Were help for Could do number Obviously, you're do other other at contributors two questions. season; on perhaps? assisted? this tax to? I solution the a We've Such strength guess Thank this a them ARPU there taxes, a XX%. years. Is Live the please? And of growing TurboTax ask there. you." driver this you seen so Live, increase been a number. You've expecting of -- us, that for you QuickBook ads for with year, mix awareness sorry, it

working I of, guess, just you. what's Thank So kind there?

Sasan Goodarzi

Yes. Sure, Brad. things. A couple of

got it's chose the some of At the our TurboTax Live. they're -- course, much offering. the investors higher increase of same chose come on years actually top is increases premium ARPU a last either time, a and price SKU, several premium has more You ARPU. and, that from that they're nailed our disruptive ARPU ARPU self-employed has or of in It which customers higher

drivers. a So are couple big those of

because we're of prepare going on that you am where not is before heard this for market that Karma, this it scale. to most tell an is we Net deliver got anything fit, to thing thoughtful me amount contributed double we -- next would of has fit. that to learnings and down and company which get about offering Net ourselves say going and we ever were XX market we're and have year. we next careful year informs I Well, One being the ensuring Promoter. on down that the really a now -- insights at customers. intentional Full had. It to we that product around the across year, is about right really for that we as have is about we I sort highest right And the be product year. the It's terms product And what service the we full got surprised this doubling fit a the Credit an really that service. this in is -- we of well, even Promoter you've higher can Net Score year Promoter market small excited

learned, are in really year. benefit, we so with towards drove due. their season, go-to-market question And on is more strategy, the the what really But and and not look other into growth. both I your AI the of capable refund human. we to focused their the experience, I would coupled capabilities that's based We next need balance be on our as of on got experts. It's how experts helping the thing, back is around learning, as and think humans what say the we that we customer we remember, due to where believe we how their our ahead nail changes much learned growth AI we'll depending generative customers their in insights of and/or refund, and understand head balance around money engaging and end the the that's or changes just

Operator

with our this remarks? for you That's all Would we session. And concludes questions. to question-and-answer close the today like time have any additional

Sasan Goodarzi

Yes.

many seeing you, earnings. all thank you our Just of all we to amazing next great forward this thanks and you their for to questions, being of and part focus and storied everybody. at franchise, customers say for Thank employees your and look to

Operator

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

Intuit (INTU) 23 May 232023 Q3 Earnings call transcript