INTU - Earnings call 1 2024

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Operator

Good afternoon. My name is Chelsea, and I will be your conference operator. At this time, I would like to welcome everyone to Intuit's First Quarter Fiscal Year 2024 Conference Call. [Operator Instructions]

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

Kim Watkins

and I'm Intuit's Sasan here our Sandeep afternoon, XXXX Quarter Goodarzi; Good CFO, Call. Conference with Aujla. Chelsea. welcome First to Fiscal and Thanks, Intuit's CEO,

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

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

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

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

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

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

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

Sasan Goodarzi

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Turning to Mailchimp.

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

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Sandeep Aujla

Thank you, Sasan.

year, GAAP For quarter up our million results of earnings XXXX, ago. of very first strong guidance year, range million Non-GAAP $XXX of per delivered GAAP $XX And $X.XX XX%. metrics, million share versus year. XX%. versus million income including the fiscal income diluted $XXX of operating $X.XX diluted of up key versus operating $X.XX high last of last the $X we per up earnings $X.XX that a billion, end all year $XXX share revenue non-GAAP of versus across XX%. last exceeded

this year. I am early pleased momentum with fiscal our

and business the quarter, XX% segment. Group during the grew to driven Online XX%. which Ecosystem, Turning grew by Business Small revenue Self-Employed

the of their customers flow grow to our cash small threefold: grow with expand a a the group strategic goal of and and environment. globally. is continue look businesses resonate results with they truth and within which the Our improve offerings, for focus the connect the Small power mission-critical nature source Small businesses, of Business our Business demonstrate platform economic being the in Self-Employed to ecosystem of as and any core,

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

XX% payroll, and Second, driven connecting primarily we on services QX, ecosystem. revenue Online continue capital Mailchimp, grew time to the in tracking. payments, focus by

more as solutions ongoing mix and the was And customer. shift manage as payment payments higher reflects growth effective payroll increase their payments, offerings. revenue customer by the customer revenue our an volume paying customers an revenue growth quarter adopting cash customers growth payroll, quarter per Mailchimp, a adopt flow growth. well within in prices as towards to offerings in and in driven increase total Within reflects the higher-end in growth In

executing leading a continue execute Third, revenue as in product and On make with XX%. Mailchimp globally international to on refreshed expanding by basis, continue a Mailchimp established Online markets international and in and markets, currency approach. leading Online total strategy, with all grew localized lineup we includes a QuickBooks which Ecosystem both progress we to constant other

the Ecosystem first quarter, Enterprise The XX% QuickBooks grew digits. high revenue single grew revenue the in Desktop and in Desktop

on consistent remain license-based for that way a across principle conjunction also this We through October, prices are value. recurring desktop model. to more the than transition to raised model offering for products of subscription transition, desktop business our with our our X-year multiple with a we customers In X/X price

to Looking continued growth ahead, year part strong we complete Desktop of transition. the the this we remaining revenue X-year Ecosystem expect as

our offerings. seamlessly to innovating migrate customers our across focus Ecosystem online to Our is our to desktop Online help continue and

We growth catalyst to a term. continue to be expect the Online Ecosystem longer

given million $XXX our to personal We QX, the of was and Moving prudent cards loans revenue performance home approach was personal the uncertain taking by macroeconomic extending and a in QX. and down loan, credit to driven money. X% partners trends credit loans, in cards conservative year-over-year. offset during expectations Credit a credit a with to environment. QX and insurance, guidance macroeconomic primarily growth by auto Karma consistent in approach partially in product Credit Karma. On auto Karma delivered saw across This decline both loans Credit basis,

million XX%. to Shifting in and Group revenue $XXX revenue grew groups. million the and was and ProTax $XX quarter consumer and Consumer grew the XX% ProTax was

total TurboTax returns During season. and both states, without the stronger-than-expected deadlines quarter, extended volume strong of tax we with from and in performance during extension return share saw

we The extension season, tax earlier, this confidence we innovation excited during plan our shared in the ran Sasan game coming our season. about As win experiments bolster TurboTax. are across multiple to our

financial touch me on our briefly let principles allocation. and Now capital

and rate September, lower $X in and secured on repay raised on the approximately carry remain approximately commitment decisions long-term sheet. QX. our weighted notes loan the end average senior in X notes quarter outstanding loan. billion to in an In the Our balance the at term sorry, than coupon investments balance point with guide a and billion financial billion term of our in We These X.XX%, that cash unsecured -- are of $X.X principles finished our unchanged. $X.X debt we

relief. we reminder, $XXX from payments tax during fiscal XXXX QX, made approximately As to that tax due the were a million area IRS deferred of disaster

repurchased January Board in the market to aim This also of share, million quarter. lastly, Depending during And increase be XX% of versus our XXXX. quarter. on stock and quarterly dividend conditions last represents $X.XX a factors We first year. the on other the payable per approved is $XXX each a market XX,

with the stated uncertain of I our early pleased As is expectations. the within in I'm highlighting seeing momentum macroeconomic earlier, fiscal that with we're consistent platform environment the our XXXX, strength

We have spend a proven what in for deliver of long controlling investing record discretionary results most strong is important for managing to term, and a track playbook while and including growth. short the future the

of position for remains emerge uncertainty Intuit macroeconomic goal of an Our this strength. period in to from even greater

Moving to on guidance.

This our growth earnings operating XX% are income XXXX reaffirming of of XX% growth earnings growth and XX%, non-GAAP income XX% of to includes fiscal We total revenue of XX% operating XX% guidance. to XX%, XX%. share of GAAP to per growth company XX% per to non-GAAP share growth to XX%; GAAP

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

uncertainty. a prudent reminder, are we with As taking continued a the approach macroeconomic given guidance

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

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

Sasan Goodarzi

customers, thank confident X you, And penetrating Sandeep. strategy of expertise. our to assets progress open believe of our human and a leading strategy across adviser, expert Big AI-driven engagement up creates billion Well, future our with Intuit let's in all platform relationship higher wrap to gateway we their accelerate with And to and creating will flywheel questions. monetization. now it Bets. growth $XXX of to change "done trusted in for for town. combination up, to it We you" The your our a our are With our All and a right. that said, this becoming

Operator

first Our with will Instructions] come Lenschow [Operator from question Raimo Barclays.

Raimo Lenschow

are the chip segment the like seems platform kind kind big impacted the is you? Will for in X from you learn that the like of of the part you AI on it. And and what's other to use driving kind like that as X it Like Sasan, like can of you -- it X shortage? obviously, have Perfect. segment? by also, rollout -- that opportunity strategy, of impact

Sasan Goodarzi

are my We doing for on a think platforms. The just in terms basis that as that the each progress has And the is that how across asking the platforms. meeting we we Yes. staff in our I'll And short practices best answer a an of next made documents Assist. practices, our week weekly share XX% fact, I with we staff question. your insights reviews Thank really get share teams. and of interesting actually informs how of you you're that the it's question best use example. been capture daily And across the actually learning product slacks and of spend Intuit across

you impacted -- A big large question, us are. not of part would of and it is what plans. learnings chip the timing and key not actually lot in launch And our our accelerate platform. To themes best practices our tell to which a we're no, going progress and learnings across GA all the pivot position impact the your second innovation does It simply platform, by the shortage. in the of is are a across our putting at there's that commonality I across

Raimo Lenschow

Congrats. Perfect.

Operator

will question come with from Keith Morgan Stanley. Weiss next Our

Keith Weiss

of the repackaging, marketing independent Intuit Sandeep the in that's Two were aggressively Mailchimp marketing solid out the market you and really some Sasan And questions, see of services. is better one an for strength a this think of Do I sort Sasan, to a as platform the of for distribution? we're strength what factor than one quarter. we into like in that surprised think digging think and Or in more congratulations really and environment, surprises you of online bigger on in I part more expect? it quarter. called is

we be pull in operating going type items then rest terms performance margins Any of out Sandeep, or strong of of push the expenses operating be expenses for should in of margin forward or in year? mindful of that And why or that onetime quarter. really the reflected isn't to were the

Sasan Goodarzi

when to as take to that I'll internationally Keith. We What X on execution. a not first environment. tailwinds of us question, lineup acquisition our Mailchimp is macro that from the I you're our for in to our still a execution back about And entirely be product our everything seeing clear work of opportunity the lot us, mentioned, and based Thanks the growth be the develop of way, be platform, made go a improvements, your biggest We're in while clear. create to one. you're of have progress closed ahead getting mid-market. And to able was we lot all we've strength macro areas. and by and no But seeing those from tailwinds.

Sandeep Aujla

leverage, on our -- dearly that guidance to question, lower our which Keith XX than operating we hold question, reflects delivering the essence, margin the start we our that something having XX year revenue reiterating and management bps to margin Keith, on is growth margin expansion by commitment and have let a as our of expansion the team. expenses And in that me for and discipline

quarter, of quarterly get we won't On out prepared committed on including shared I the expenses. our margin the the are the that I year, parts remarks, quarter later moved that, the operating number. of on into guidance some I had for We marketing some expenses our income. would as to year too share full fixated during And the

you what would teams and that's So the guide I towards.

Keith Weiss

guys. job nice Really Excellent.

Operator

question next Mizuho. from Panigrahi comes with . Siti Our

Sitikantha Panigrahi

environment? to Business. Small Where health the right I and now of strength see Sasan, you in do about want ask this weakness

Sasan Goodarzi

for question, the Thanks Siti.

nearly on success our XX those they than managing our and are platform. resilient as points businesses flow, that's time they're by is before, are know, reasons. And not you serve As our shared and macro which this they higher -- resilient that environment we are now. platform. they how is of cash been we've far And for in we've One, for what rate customers small couple digitizing the their more in and that their platform some grow a on do, on anybody

are our to which of Business XX%, still of So experiencing that means employees number businesses companies and health are part hiring we're we grew small of just and are couple their on data that remains continuing of One, of online that points. strong. our I be context, share volume our platform. With would Small serving payments the sort that consumers. total number as Two, our the competitive a the

growth also I a way, I'll XX% plus. that or think, the more, remind by ago year was in the us,

would small the have we last where so platform just is cash And this impact, of businesses XX% is reserves And then our the resilient. it I but was of seen overall is an our thing that last very year. say time

XXX% pre-pandemic. it it's However, of was where

in any flow cash doing that but do their we and So year. And well. place which last down then serve services doing like as are service-based is you is well, concentrated than the XX% not market. years area. ago, like professional businesses, stronger see well. But about XX% things you'll But of several just construction, particular not know, We're that very one from those are pure auto that doing lending repairs specifically,

downs in from So the businesses that sort the shared aggregate, see. across there's comes of that the you. health But ups and small with I numbers we

Operator

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

Allan Verkhovski

got would Hi, the decelerated And quarter. year. is rest of Or Allan meaningfully on what about that growth worth With worse could Verkhovski that Online for this thinking in look the growth be for emphasizing the is your to to this like helpful growth that is there Zukin. anything percentage quarter? something behalf investors? accounting points of drivers, Alex X another respect QuickBooks

Sasan Goodarzi

year acquisitions, increase larger only liked a our what price Yes. terms really saw driver. really we versus of driven this retention. That That was was our year. last in by We the

really that's the So variance.

Allan Verkhovski

through monthly would Karma saw that in through follow-up, quick a the be able step just to you quarter as And you the and November? linearity Credit in Okay.

Sasan Goodarzi

question your ask again? you can Sorry,

Allan Verkhovski

about November. just business on was the through through what the kind you in the wondering the of underlying could Karma. monthly Credit you the quarter if linearity a in thinking I of saw for talk on trends basis, Credit Just Karma

Sasan Goodarzi

the our and further anticipated in same remarks, time as ways. Yes. By exactly we we prepared saw happened way, your question heard the answer Well, our in I'll last tightening year. you One, partners. by it X

one. year our prepare be and -- our and expected in that we some of next that's there we the in guidance saw. we partners really And the further as as the end our expectations for That's year, year. that and so the And was about number would what thought fiscal included tightening,

like Number everything Thanksgiving behaviors. -- of a on the the like week, people on in two, off days U.S. actually number there based based it depends linear of because November not is certain that the month take on number days impacts that

And just with the But so total we there in no in was linearity. what is quarter line expected.

Operator

come Alex Markets. with KeyBanc next Markgraff question will Capital Our from

Alexander Markgraff

understand, that testing of the if there been curious Sasan, as product well involved Yes, been done Has Intuit maybe be has that some well? around so? sort you've testing And in any just Assist to price across of categories. how received as

Sasan Goodarzi

Yes, sure.

in Let connected. ways I and me it's they're X think answer great a -- your question, it's question because

is we versus is First really it's where on help of work is embedded the assistant insight the that had the customer all, benefits biggest the doing and the have customer. learning to to the sort where of have important there side something

their I them, by target audience but help they a within looking will is marketing is control. what build we, while should with essence, flow, them mean a then the campaign customer build and in marketing audience campaign So segment, to we the should complete for the with in they them right that

our workflows checks accuracy right a platform lot. they embedded it miss address but and calling matters of then a also really all helping that, really flow understand really is a Those is out translates money it where learning, within important tax, consistent understand the them examples way, are they there. across outcome, it's learned by obvious, doing to helping and can that's we if sound the which what so -- And a it which, by the of for way, their customer something, So may them. in

go a to. depth, what trying to do, depending customer level and on the there's of they depth The want second is to they're that

in really business been important And provides that of customer business So most create the summary. what been within to testing if reports is an those on when the is example models we've it's timing customer insights essence, can because That's an the for well believe of things will us summary, things are you the ask business that and as and possible. the know ultimately, the that with and should that, one we a and testing QuickBooks, engages go on Q&A is to not terms expert. building not, questions. What or connect having not to quickly a and benefit in event learned get we're more we've propensity of them as a ultimately monetizable

the So how behalf. learnings automagically by those the and insights for based on Mailchimp, monetization. SKUs customers SKUs gateway things are In major of to learnings do insights be a thinking about to we're will way, and the then it's those and of having and we that monetizable In expert can and event it's GenAI-specific have case help. And led on a the case testing expertise we also TurboTax because in human QuickBooks. their QuickBooks GenAI

how think about based examples learning the that to price what's customers, testing. we then illustrative are informs benefits important those about So that we're on

And we're learning so fast far, we're what we're pivoting a and how company. pleased as with

Operator

Steve will come Citi. with Our next question Enders from

Steven Enders

I gains of the the Okay. drove strength year-over-year of What the Great. initiatives ask these what initiatives? saw kind guess newer some maybe I with product this and want some share come you business. on those on newer tax to and there of

Sasan Goodarzi

Yes, sure.

our these more filers more extension able extend. this Let than both the and answer way, dimensions. we did X your and states sweet complex are we One, there just share on in why macro season season. And was were the were extended there by me element, states anticipated, that It's to extension question take in it's that spot. a not filers which actually

of into season, I'll shoots touch its Intuit them. and green it's lead platform, results. The of on Karma we're and And Assist. one that's a of tests it's these learnings did about, we been better-than-expected X coming and lot this briefly Credit where durable what excited our and TurboTax that so priorities Live got that have a element will each drove areas And lot tax of experiments

or about times saw And the compelling platform, to excited Within XX -- which for experience, million the it SKUs platform, users was built seamlessly we've out set at. somebody having been not Credit product, green active the look it monthly engage Karma do do the a want a you a very more we within that developed only have you. to whether to yourself you great want shoots as we've Credit X we Karma but month and that We opportunity of serve great SKUs. we're tax

The also being second that taxes I'll the taxes tax in data, out that to We big very of to X customers and within network. taxes done expert scale. your sitting able an done shoots. off a that's your get is engage and Live. the One for is our And areas. want we'll launching were Those green business serve done, areas hand their scale expanded able just X fact we then hour. be is, deal get to be TurboTax AI an customers, point means have at all What expert, and which in and many that data can to of available their

conversion refunds, capabilities. driver, areas. our all leveraging is accuracy One making Intuit something correct outcome, and big Two customer, money the in by which a knowledge done is GenAI that we our that Intuit the sure believe help way. in place, explaining Assist a mistake. the by is driven That's And their last the we second capabilities engineering Assist. and explaining then checks and just essence, is is big And

shoots where the things are along of those we with the season. us into X a green saw So that lot confidence give macro as head we

Operator

Brent . with Thill will question Jefferies. next from Our come

Sang-Jin Byun

Byun John for is Brent. This

it's international. doing if rest color platform. question could Small synergies how some could the the First about Wondering with the Mailchimp. about on And also on you U.S. know talk Business I of if share you cross-selling don't versus in

on any ramping? pay second, update bill is how And native the

Sasan Goodarzi

question, bill last your pay? was What

Sang-Jin Byun

Yes. On bill pay.

Sasan Goodarzi

question. Yes. Got the Thanks for it.

So I'll start with Mailchimp.

on As EMEA. contributing and go-to-market balance team that. what out in the executing one to we it's reported. And opportunity translating it's We've the U.S. languages of And international. for that in about, enormous see time quite we us, pricing lineup plan. against we've would like making And focus third, international. see. in We priorities we're talked numbers includes sure that investment and a of right got the a focus an we say, of I and that local and our building and U.S. spent international. can bit We to top between

we the balance we So think focus about right the have as geographies.

continuing of growth in The are Investor create native was are cross-sell an product to part we and Investor of we to shared fit. Day, platform. we We're the we learning product That's cross-sell that AI in place. get the X terms at market within pivoting big And the shared market as what When testing takes the we and progress second, a get the thesis building was really to at make where the fit. acquisition Day behind QuickBooks CRM platform.

But growth platform We've or a have any manage in anticipated in acquired strategic flow it's ultimately from and customers not platform contribution guidance very assumed reason year. our where X this all can that we why to your cash It's one you place. the the long-term is important grow priority. our

as paid mid-market non GA subscription, that the and noted a what Xx front. On are pay, our Mailchimp versus there's we're -- taking with in the the we're and subscription. So earlier, that's we're I -- is the on increase pleased think fact bill seeing with that customers, those mid-market customers mid-market we

adding that we're means So value. that just

also have will know It's pay, in future. funding, payments, on the around we ahead be that have we in have. work batch things the all to and it faster our roadmap, us launched We bill things of

it's GA, we digitize believe a long we're roadmap, So us customers along able really the opportunity for and with because be -- growth the our for cash customers to for our to on gaps our clear the working and that we're opportunity and what flow we're BXB on big feverishly are what a improve term. big their fact in it's to

the fronts. that's on progress both So

Operator

with Our comes next from question Reback Brad Stifel.

Brad Reback

to switch? prop? customers the get are before during Ecosystem, wait share the mid-market they'll for Or move about opportunity and a value to it is that economy to easier think hesitant value given take economic you back-office make as prop, the Sasan, difficult for better because times and QuickBooks the Online just of the

Sasan Goodarzi

Yes, in great X I'll seeing. perspectives share question. terms what of we're different

is, We good, the now, they they is. differently behave economic it second switch the I behave challenging which -- our to of leads customers great, point not see if wanting is certainly matter it's what one make. it them don't to first don't like economy environment the The really wanted any don't differently. to because doesn't is If not it's

question tailwind whether is, or on headline a headwind, times. it's the So good first not it's times bad or the a

hearing is green that's this And of of we payments, some if a you customers out us, customers, we're platform. a we to lot say our where far do have have teams When ago, for are bundling the an them kind engaging Oh, to didn't didn't opportunity customers. And realize, you payments, for we have now look would wow, see of you that engaging right? have it of didn't entirely team, they account increased realize from that didn't X our their starting build is you And share we their where However, us better own been "Oh, management. payroll. of what a share. we're our We've we're that traction time will Mailchimp." And sales years that a all when in wallet I an our account tracking. go benefits shoots to perspective, for that cash back customers can having from I think, flow I are an digitize your see our now we're with our as drive payroll self-solve is I all continued job that management the early we with value-added customers. and have and our I doing, building area realize penetration to we've them customers,

traction. that I that's say where we're see we're and That's we progress, to So look seeing where we opportunity where as ahead. share that's just getting an

Sandeep Aujla

just the QuickBooks beyond And Brad, side. add what would is I

as seeing was on entire that mid-market the retention beyond the acquired also was Mailchimp. extends with mid-market, better are so us the focus. not strong terms acquisition we year-over-year progress And for the now of side We mentioned, as the including account in in across management, where better Sasan some company the historically platform, customer we're Mailchimp seeing a mid-market just before stuff onboarding, opportunity the better on including QuickBooks well of

Operator

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

S. Kirk Materne

the you're could multiple TAM talk looking curious quarter. the was Sasan, Businesses any X open to in the about on on onto Congrats that markets if I technologies if side. wondering platform. you But evidence kind of of I have a your seeing just vast was realize Small you -- I and are Small Business wide consolidate sort

offer office office. in is on an a You lot both all as well the back the obviously front

sort realize was evidence days, Are you need early to sort integrating of that seeing you're I any of you if happening of activity any that starting you're successful. be just Mailchimp with to it's happen I of to and now that yet? that see But wondering QuickBooks?

Sasan Goodarzi

talking short because early, I Mailchimp team personally management out our of green shoots, as and we're customers, what we're them fact, X answer and it's large account across in in of seeing of we're but shared of month the mid-market them our to primarily the Kirk, them L.A. X platform, I in Yes, one that moment and and Miami. last is, to as spoke ago, it's a are very in QuickBooks customers, just building

an Mailchimp payroll. And know it as even same they didn't owns company even with know actually the starts that -- didn't They have, we know we're payments, example.

will but of use use Some QuickBooks. they'll them Mailchimp

fact opportunity and which so thing and experts that huge but payroll, applications. of differentiation, AI of we're inspired that a and a Some ecosystem there's our payments is the use the an don't we is network our we actually have use them of data, by big around and believe where

that is all are really want. Small the our know. Business And applications account our the team don't that would management us And things just customers fact the a for discovering

our we that then be around fuel therefore, based AI have capabilities we success. build of so benefits the all done them, of could the and talk all and engage what on could applications about of their relationships And that and how

team. what That's accelerate us just out doors to continue for we're we the really as management And is up what's accounts excited unknown. about our building opening that's

not don't think question is actually are on. -- would X And on to even platform. prefer be to answer is, we are I that's lot customers short what we're and your what a that the holistically, know do So because just long they learning of yes, we customers mission the

Operator

next Mark with will from JPMorgan. Our question come Murphy

Arti Vula

to Vula on is wanted on for This just Arti QuickBooks Murphy. Mark I the on quarter. Advance. touch Congrats

more Day. product go-to-market kind about of the mentioned success the that just a of new You Investor that your feature versus is or at product development.

you that of can on in So front? And the discuss And market? kind the compare of the that's lower end overall that can how maybe mid-market that -- progress of is you then terms in talk perspective from your about -- terms health? faring of to

Sasan Goodarzi

you Thank sure. question. Yes, for your

play I important the First at was of all, that forward, what just pick most the if shared back said it's I lever Investor Day, to had going to I one go-to-market.

at feverishly We to employees. capabilities XXX the because build on need don't are product we stop continuing we out platform the to plan that

that serve are mid-market far is time customers over than to XXX. plan Our larger

term, it skill needle of midterm, of to the I be And that near However, mover sales would on marketing. and you is tell continues go-to-market. talent in sort in the bringing and right sets biggest the near

a benefits strong have even it's of and mid-market, and in in a couple doing bringing hired a will of We're we leader. their sales examples on understand to last, X it in We're their so place X about road strong understand more lot really mean flow they -- hiring them a think, think the the leaders. what particularly helping customers helping selling can customers. Because We're cash "done I business account of of our marketing on are run been skill we've hired really is of platform and was company -- a with of enticing mid-market we've And And a feature leader. doing always very human when expertise. about we as lot so I Assist, using which and map Intuit it's the having creating earlier, -- which with is quarters, gateway and sales couple a customers. you" that's for very a really what nurturing for to managers that

the our we're be that's describe focus net-net, platform would big continuing as that's way But a product walk to So the in in the well. want opportunity away long area. the and to in we'd because I term invest your

the out sector just they in it really customers -- of comes literally more they're speaking, it health, a $XXX,XXX $XXX,XXX use you an comes and to state, that their right, and their in. I turmoil backwards, history looking have based if our sector, go you're U.S. example, down terms down done, In tenured more think as Generally to of they can bankrupt. versus started the on someone just larger, withstand business then savings economic that dispense, only the

they've So that just I in, segment I the ago. a are or just of components older are ones and less described I those healthy that in. depends that the is on it say the would play it wouldn't in on then size business, really the variables and how younger say healthier. business ones business the more moment long been their all depends

Operator

Kartik Northcoast from Mehta comes with question Research. next Our

Kartik Mehta

the you about, that business. business the for all Service and we've the business you talked success the talked Is about how . use of end will had figure maybe Sasan, Full look or of a returns number learnings it if I tax And the you've define will the that Is metrics as lot at that at not? -- are you to guess, process? success of season? it what you

Sasan Goodarzi

for Thanks Yes. question. your

the place matched and in provide data out I incredible And specifically platform, needs sort in of that along expert start platform First now do and do way. on something and that's can year to the important, fact, there the X years the for your TurboTax for you I'll help the of all, consumer of an that's AI is layer investments with that that now X your yourself, over taxes reason advice and where with the to an and and do year and apps, expert business built we which taxes because same you. you now taxes start layer your for made ability taxes. And And is rich your request an is person app to really have in really, you can get network. we is ecosystem we've is

market I to start for that we and started that reason can with customers effect. talking everything you. X platform halo choice to go do the actually are The us, about creates element we that with and a foundational of it we as notion

we look also what so And at the across will ARPC are And retention, look of it conversion, by metrics area. franchise. number we around entire customers, at

element if want it's outcomes as in have Service So It's consumer a a going and most this everything business. it be the to not and course, can very ARPC, game. the customers. for it's impact Intuit We, plays as taxes value confidence. of want a locally, me, for ARPC Full off for effect is of an and Service customers because largest metric numbers very connect a halo will do the but just virtually or will because we I you of to of hand ultimately, the to but future important that these to now ARPC an the number your to it's whether to specifically, knowing because Full that year now matter do someone I actually our if will It's expert, measure now that the

Kartik Mehta

Perfect. And Sandeep just one quick question.

But as margins. about season for I'm look as in the You the or quarter not wanting movement tax talked at unfolds? any year, marketing to differentiation on X focus you wondering, especially

Sandeep Aujla

Big think Full question seasonality that the to invest to the beyond Kartik, in the spend, Bet, shift our would marketing continuing which category we Service. meaningful want are we Service, to across equity expanding particularly product, across that you're we the the is sure asking. expect and to I brand's our across go not any marketing I Full are across as we make But our GenAI, of DIY

the And pretty the as I investments well good tax making the across segments. motions and as feel go-to-market campaigns -- other the we've across So about been

Kartik Mehta

a was the of asking. Yes. job I That just did I question was poor it.

Operator

next will of from Our Sills Brad Bank America. come question with

Bradley Sills

tax here next heading TurboTax of you're as kind season on question the into here. Another

different user, end targeting is Now focus Full from stores. tax there and traditionally, end on tremendous say, now, the there something going gone Live, after had that's TurboTax tax Service against you've about you've more segment success consumer that you're that different the the is store, after that where that CPA filer

Now difference segment. that some CPA Is there? there

this in that some learning you go-to-market of year from to traction is apply gain last the that in end market. more can year there And there

Sasan Goodarzi

is customers, you Yes, that opportunity about are and you small customers the are for actually question. Brad, it, spot our million thank million the your is either that which XXX asked rest we the XX consumers, And nearly way on XXX it's business view million businesses. our as and of

ultimately, do door, how do behaviors mom-and-pop we And We to in stores these combination the I of is door lot how view how our awareness, customers, them months, how front door opportunity to pros, a that go consider not the front part small door going is and they is after of ensure we with front that actually of because service shops, a a have. the software after smaller them, experimented a get we whole pie. a we've XX front when which would do last, say, do our raise come they we

about going go-to-market of in and what what coming test we and extension informed on insights lot good has number the those and tax this a platform learnings and touched things a earlier experimented ran we that season. of And with both I is that season feel into

it focused we're plan given lot informed to game your embed offering. insights QuickBooks we're yes, just what So have our platform, we same we're software while have answer I because service a about not the of way, floor, a software serving. a the Live was we're platform, in And those the businesses on and small applies think by the question, but long as our thing doing to who to

Operator

from Scott come Schneeberger Our last question will Oppenheimer. with

Scott Schneeberger

looks margins the then I beneficial? was Or in for predominantly the down balance bit follow-up on have you like the in marketing, of share? a kind was I you're over quarter, speaking of of then but quarter. you that felt Sandeep Was TurboTax margin the else second that for which anything I assume you it spread the mentioned lion's and And on quarter the a cited Sasan. you, were year expecting quarter to a and that. was the one there in Sandeep, [indiscernible]

-- benefit the real mostly seemed Small was it quarter. in will and first it like So the Business. in

as follow-up. will second something I'll is So then going end the in that to come that back well? that quarter? second Is half of off truly as And tail the to

Sandeep Aujla

later it. I would The we once share Scott. expense moved was of for but was into say and Thanks up, not that way hit caught lion's several being start you're have will take were us share lines, that QX, QX things out marketing parts you normalizing I will out. we in some the of out. And marketing of as October Sure. definitely I in and had got right, items marketing of about and away not the things together, look got that year, quarter out, and would the the QX get multiple would that pushed that we'll one think pushed There of at of expenses those spent and the will the those question, those those lion's expenses QX so expected

any that basis. given could have to should Again, expense our team different you focusing fact on be all I'll year, lines. a back and on you trend In the year margins bring we the full

across year margins guidance remain full we company. for the So our the again, confident the for in

Scott Schneeberger

on expect just a is more that something that the Karma anticipated and you'd Sasan, Is in get quarter. along Guarantee. now well that something Or into positive first in Would And we're back Credit could growth we half? year-over-year it in was an stronger Appreciate the potentially than to bit that. had pretty Karma update a that the inflect love half. fiscal

Sasan Goodarzi

Yes. question. your Thank you for

learnings a guidance all, but we which because wanted also based to we approach half into bake them really aggressive an into environment, insights initiatives not our prudent. just on in I'll banking, means initiatives year. We're working on, and just account to macro a guidance with, taking of our thoughtful provide, back be from took we're we that but last the the start not the be about intentional we bunch that year, and prudent First and the not of did of in only

that of It's the because haven't not important now I question several anymore. context, explicitly Karma and not it about because areas. With your about it and it's as I been because into it love Guarantee we are would talking about -- way thinking we it's incorporating

redesign, -- you've in us in with was talked comparison X whatever between the at far of perks. Intuit they're cards but on the talk Assist. front entire earlier the credit putting focused they credit example looking shopping get One heard X hours card literally the which customers is is or prime app the the which right Investor about time, customers the benefits And more that because Day, about right doing spend want, they at coupled can that used I fact for we

all data can do about everything we know automatically we of based Now them that that the for them. on and

bank Karma going we'll focus time our front put and if it guarantee Intuit they're in prime of that financial those on to Assist So access to that or them their what's approved products, customers. helping the you important combine an redesign $XX particularly have that be choose plays app Guarantee role hard for getting customers, a with in them they account.

about engagement, future the the the And growth important So How what are drive an a that our part expect what only will taxes. end the We've the every years their it. that, makes and this, included enormous guidance, with and of frequency higher monetization. initiatives very interaction focused Credit in inform those does move in to for of thinking are is I'll customer on several of not combination that tax it's that of now things business. Not mean we've set is that but platform? does how will we that Karma we spent and

along compelling more it's when with time, that offers. much So tax a it's experience seamless

hopes So ahead, such within taxes Credit Karma. of the have those the we for all the important future. for is but the an in our future. our of now, important of and area And part combined high what not guidance Again, look in we member life as focus

Operator

are Thank and gentlemen, there you. ahead, -- Ladies sir. go no

Sasan Goodarzi

[indiscernible] go ahead.

Operator

with no or There closing so remarks. may you additional proceed any questions, further

Sasan Goodarzi

have Sorry from for I quarter forward the look to to was say interrupted going just be thank until Bye, safe. you questions, you. next to we then, and everyone hearing all everybody.

Operator

This does time. and conference you call, thank at gentlemen, and participating. you may for conclude this Ladies disconnect today's

Intuit (INTU) 28 Nov 232024 Q1 Earnings call transcript