INTU - Earnings call transcript Q3 2024

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Operator

Good afternoon. My name is David, and I'll be your conference operator. At this time, I would like to welcome everyone to Intuit's Third Quarter Fiscal Year 2024 Conference Call. [Operator Instructions] With that, I'll now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations. Ms. Watkins?

Kim Watkins

Difficulty] [Technical

Operator

mic your be might Watkins muted. Ms.

Kim Watkins

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

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

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

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

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

Sasan Goodarzi

joining thanks platform powering the with prosperity for Thanks, of Kim, the and strong expert AI-driven executed businesses. be global as us to today. our a you we solid and had for company We across all quarter momentum strategy small to consumers

grew the our revenue I'm demonstrating businesses by & product the Business small company. and and revenue from group TurboTax the benefits X% momentum success platform across and the Small grew Credit our seeing of and we're the macro our driven integration. the of impact despite innovation of fueling XX%. Karma grew performance momentum and members group Self-Employed revenue quarter serving importance Credit grew revenue an of Karma proud XX% and Third uncertain environment, mid-market. Consumer for X%,

Turning tax. to

Tax consumer business preparation penetrate TAM small represents our done U.S. platform. how well $XX assisted to TAM We're continue by in the categories. for includes a taxes This data, and revolutionize consumers billion tax get expert assisted leveraging virtual the to and AI $XX businesses. the and positioned We within billion

This Let both strategy multiyear season, customers. our is transform consumers assisted TurboTax businesses our made proof progress against points. durable experience good the several me we and to tax offering, full-service do-it-with-me growth opportunity. our for for offerings share assisted the largest Live, and including

grow approximately be year revenue very Live high-priced XX% expect in that This digitize We XX% to us representing assisted fiscal confidence a manual, disaggregated TurboTax and grow significant to total $X.X XXXX. billion, consumer of TurboTax gives to scale. a category. we expected can is customers XX% at group Live revenue and revenue growing

Now a areas. going deeper few let me spend in several minutes

consumers and resonating done virtually. Full Service First, continue it get for customers to to making with is innovate TurboTax Live simpler we as their taxes

We Service customers this TurboTax triple. Full to with Live those fiscal new expect TurboTax year, to to double

one full service Intuit. score at a has of XX, the product of Our offering recommendation highest

have to bolster and the category. in the disrupt this insights our opportunity we Our learnings confidence assisted season from continued

Second, pay over we value as segment. nothing focusing higher and share ARPR assisted to we the with filers, prioritize higher segment expect on gain and customers tax ARPR lower TurboTax strategically

of about data assistant, is explain Intuit year. fueling This Assist answer financial our on automatically results what Intuit Assist, to financial Assist, Intuit a completed Credit AI-powered scale, accelerate solid More benefits. And their GenAI million Karma behalf both refunds Karma help our for work at delivered season Credit gateway in that creating innovation done grew hard where With confidence we success. I'm Third, of this return and TurboTax XX next to customers XX%. customers XX% we're and and integration customer human We even experience was in expertise, filed deliver with questions excited we're used money and customers is their deliver fourth, for helping more product and GenAI-powered big refund, done-for-you, their the and working virtually. our than accurately experience working experts, year. the of our Karma on to with Credit our future TurboTax. this played deposited with across by account a from a TurboTax the tax role a number customers by the embedded that customers

and in Karma We engagement Credit this members integration drove also of consistent also for driving our Karma Credit goal Money growth quarter. time. new Credit over This with revenue delivered to monetization strong higher product Karma,

to results, customers we meet, To help oversee Mark will these save consumers team who debt off segments. I'm Karma improve maximize to Given their steps General August significantly their to of X, pay health. more money, vision Credit the that Credit of of Mark. seamless refund, that under part leadership and Koffman, Notarainni, benefit President deliver see tax ends take TurboTax the ahead Consumer aligning of the our as big financial experiences years, last Credit X more share leading closely Manager be are on Karma both creating currently and Joe we year to reporting end-to-end opportunities Karma for excited to and Group, round, will consumer accelerate make from

of up enough this Additionally, Ken will made strong thank end we the friendship, I his calendar impact that around future. tax for can't progress continued year. in success this season Lin company. from the across Ken us summary, sets for In leadership retire the Intuit and

and take expert significant for pursue with X problems customer of technology of creating deliver Now how our The of customers. and very new positioned let's growth the era experiences, monetization AI work we our It structurally advantage ahead. to lifetime. We're customer the and reinventing is possibilities changing is to for drivers Intuit well look to largest an strategy AI-driven take Big Bets Intuit. this with platform a shifts one era most of

planning given Live, to deliver include our investments X, accelerate investments These plan have impact. QuickBooks embedding to go-to-market deliver Bets invoicing and within where GenAI with Intuit to end getting to X, financial Bets our to Assist. our greater end across of experiences money Big part Big offerings, small business areas for experience businesses Bets X, Big for we process, doubling Big and Big consumers digitize key from and paying to identified Live experts estimates the paid solutions done-for-you to Bets, we X, As our TurboTax small AI-powered down at Bets we bills. growth what up, excited motions on we accelerate observing, remaining line about expansion and to with in opportunity our hard where QuickBooks. To finally, investments. ahead XXXX reallocate additional ability to accelerating in beyond. we growth we're areas margin delivering international and are our doing operating can and in green shoots year stop customers. go-to-market look investments with platform while top mid-market committed we're Wrapping and can focus and the power a and to the the taking prosperity outline Mailchimp fiscal for increase investments

it Now let Sandeep. over hand me to

Sandeep Aujla

delivered third across fiscal We the XXXX solid Sasan. of company. quarter Thanks, a

XX%; quarter diluted billion results include $X.XX revenue versus and up $X.XX $X.XX year, income of of year, of non-GAAP billion, earnings versus up versus XX%; up diluted billion third of year per of $X.XX GAAP last operating up last $X.X ago, billion last share a share per earnings XX%; XX%. Our $X.X year, versus $X.X $X.X billion GAAP operating up $X.X non-GAAP XX%; income

$X.X grew we to in for the reflecting revenue Now made segments. assisted Group the small turning experience consumers transforming business billion X% QX, and of season. this Consumer the progress businesses

Our strategy is working.

overall in of XXXX, consumer group TurboTax $X.X total to representing approximately driving Live revenue XX% approximately per billion expect XX%. We fiscal to average revenue grow up XX% revenue, return

growth sustained strength is year-over-year of demonstrating the we TurboTax points benefit to delivering the our are expected be with business. Overall Live we pre-COVID pleased our in our in offerings up and the am to are I close seeing customers. XXXX, to X levels, fiscal highlighting retention

filers As with to Sasan the customers we ARPR the prioritized expect share segment. over on and and earlier, focusing ARPR assisted TurboTax gain tax ARPR strategically lower as higher shared we to-pay-nothing higher

Live versus to XX pay-nothing paying year to basis X% grow As X%. of with our yielding XX% units online lower units grow total approximately returns fiscal share points total growth X%. Due consumer this customers to and a we TurboTax TurboTax expect expect and total and customers, returns result, shares total XXXX, of decline to to ARPR approximately decline in we

to our previously of raising the Consumer of year revenue are full $X.XX end season. we Group confidence proud the guidance. made the am our future. to billion in billion, top guidance I $X.XX learnings And growth had We provided our at the is we reinforce the progress which

X% Consumer Live. expect growth to term given continue Group of of size TurboTax and XX% to trajectory the revenue We long

Turning group. to the quarter. X% third Revenue in the grew ProTax

X%. expect ProTax group revenue year, of full now the X% For we to growth

XX%. grew grew Revenue driven Small revenue, Turning quarter, XX% which ecosystem during to Self-Employed. by the the online Business &

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

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

customers, our drive their growth This, motions As sell to of our last on existing a small usage our towards on our Mid-market a smaller mid-market platform, more complex needs ARPC emphasis higher subset innovations. formula in shift ecosystem services through quarter, time ARPC prioritize continued strategy given and customer the our although to coupled disrupting TAM. business go-to-market continue more we over total the I customers time. of focus with over higher shared they are to offerings of product and

and services revenue reflects ongoing a in reflects growth higher prices on our adopt to customer. continue Within payroll growth as shift higher towards XX% consecutive flow an increase payment in in volume offerings and and payment per Total their an by connecting customer Mailchimp. we manage revenue growth ecosystem. in our increase Online prices, Second, quarter payroll focus grew in payroll, payments, customers payments, more the offerings. in the With payment to QX QX the customers driven mix higher-end cash growth online revenue XX%. volume was total solutions, effective adopting quarter

benefit revenue lapping price that paid lineup by and growth. effective larger prices from we this we and growth decelerated changes as quarter Mailchimp year. were made a growth was higher in driven customer Mailchimp last Revenue

to teens. total currency continue we includes international make strategy Mailchimp leading and and online with executing QuickBooks execute high by to on other Ecosystem. subscription this At refreshed the to as globally established grew markets quarter Desktop model. and in Ecosystem offering markets to Desktop the Desktop both remain our leading we revenue constant a license-based transition complete Online grew in in QX. Shifting the all progress QuickBooks with revenue on third will basis, a XX% and Third, revenue we recurring XX% X-year product the a of On enterprise our lineup. year, end international localized which in ecosystem for that in continue fiscal desktop expanding Mailchimp grew the customers

I expect we enterprise over last starting our half desktop year, accounts range. shared accounting which revenue the fiscal for single-digit grow next desktop high of As in quarter, offering, to

We also our waiting. will offering to to they Online complex tend and to seamlessly QuickBooks desktop who to or continue be customers migrate are encourage higher value subscription to either remaining more enterprise when desktop

we see value. to ecosystem growth products remains continue online price a term. catalyst for longer the Additionally, to opportunities The

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

expect long term. to growth to XX% business and of revenue group continue small We XX% self-employed

Karma saw the Credit and Money We to have up basis, and On Credit Karma. QX, in accounted insurance personal to customers each choosing Karma account, insurance from growth X%. points accounted TurboTax X a revenue Money $XXX Money accounted their point. X of of product Credit for seen in Credit segment. for Karma Credit delivered we credit and deposit loans for cards to refund points X a million Moving growth, strength Karma auto in return in a

trends picture approach extending conservative overall taking to loan reflecting partners credit mixed, the uncertain in QX. as a select see cards and we in both remains macro However, continue personal credit to

sheet Karma revenue versus We a are In plus minus our and of X% year fiscal I growth of prior or ahead. Shifting growth. continued range guidance to X% summary, am full year allocation. and Credit balance to pleased with updating opportunities this guidance growth momentum capital our our our

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

to on guidance. Moving

XXXX our of growth. non-GAAP growth from XX% up XX% from fiscal growth to revenue share growth of growth, of from up growth guidance growth of to guidance up guidance XX%, to prior income to We non-GAAP XX% of up XX% XX% and prior are XX% diluted guidance of from of This earnings to per guidance. prior XX% prior XX%, of prior total increasing of XX%, XX% of to earnings XX% XX% share includes growth from GAAP XX%, XX%, per guidance operating diluted growth. GAAP operating income XX% to XX% growth, up company

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

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

operating and have earlier, our as pace we Big we strong deliver greater We on revenue, beyond. With XXXX principle, our X and over expanding growing income taking financial select in a in focused to of remain that, double it growing Bets Sasan. invest as dollars areas to slower fiscal faster committed at hard than Therefore, further impact. progress revenue opportunities I'll made our back and process, annual margins reallocating to and see Sasan operating look turn to Finally, digits accelerate leading shared to investments. progress planning are part of financial a

Sasan Goodarzi

Sandeep. you, Thank Great.

X with close points. me Let

at to strategy advantage very we given of the largest AI X take all as do. Intuit the Bets shifts with Big and center we're positioned First, our of well technological era

key we we're down shoots are Second, green given doubling growth. of the bets observing, accelerate our in areas to

experience recently leadership continue company the Chief Group Global that count of thrilled Officer In Chief a it. into great recruit Johnson our to context, Marketing nearly back XX Officer. leader years Self-Employed at and as Vice that is to Executive returned technical to with as head as leading Manager. share Commercial Intuit, we of I'm to Business progress. world-class Third, Revenue Small & and Head Intuit, Greg across I'd President, like accelerate and Greg General Greg then TurboTax the have

questions. let's open your Now up it to

Operator

We'll Instructions] first question take Keith from [Operator Morgan Weiss with our Stanley.

Keith Weiss

And ability quarter full a you really that, year a earnings up the nice top in been has pretty is the in on from on use to to we guys taking the and earnings the And outperform really EPS season portfolio what actually coming difficult up line line. flexed off. your hear bottom

I can like, seems right? those the I both most expecting think I on the investors the those low as to we see. I shift So the ARPC to we ARPC do need you? have available tax think to and higher customers. that's this ask attracting great customers can the price get question that The upmarket? business were do end expecting, about is than Why Is higher for customers kind more Or all and as shifting board be why to you most well towards of wanted overall. what probably underlying was more end, high year pronounced people

Sasan Goodarzi

the Keith, you thank your question. very and complement much for

couple Let your of question ways. me a address in

billion saw Live that of the really we First in XX% of it's we growing would what franchise, all, I'll becomes assisted when entire of with this we with $X.X And that we shared, start with of total now demonstrated XX%, we're already in segment have what franchise. And business And DIY, over the with is, a the and X bullish going growth important really we time When that at although growth you look the TurboTax after XX%. that some assisted of taking IRS the you X%, of for of of happened terms grew sort that the I needle -- most was in first filer flip because XX% a what fact took being starting effect it it us accelerates to now customers, where almost but TurboTax that at franchise, TurboTax year, sign the share. say flat, mainly simple that first a all into a of the confidence we're that time flywheel to that's think moved of look assisted. share of I a as lot and the we context we gives of is build sort future.

get actually between really of customers, focused we of that in really the free service we've because I now are assisted bouncing particularly we looking on share those they that I software the platforms, customers and not the pursuing a is are interested the matters just our in Credit simply platform, assisted between interested is platforms. would think tax now customers TurboTax those our the the acquisition in segment We're customers. really when scratched say for because not those the we cost in bouncing see second and the accelerating Karma -- to just what segment. are quality thing and customers, We're take of and

it So particularly what we in future. that's in not delivered, the how us and but only we're about confidence what gives really thinking

Operator

from our will We take Daniel Jester Markets. next BMO question with Capital

Daniel Jester

to want expand on made the actually just on. you've I comments

So higher TurboTax integration more deepening future. and market, focusing on Credit you're the hand, the on one Karma about about talking you sort the of the end in but talked of also between

more, little and expecting around And Karma what forward? the be should so can you just we Credit going a maybe TurboTax especially integration, expand bit

Sasan Goodarzi

actually me, and And saw Yes, hit absolutely. on didn't about let This very I could, excited we're if what year, what both. we particularly, work.

of larger active active Karma Credit their XX million million XX plus monthly taxes are actually using users over method. First users and has chunk the assisted and doing those foremost, a

seamless just of log XX% it out were or XX% million-plus XX% to TurboTax of pursuing with performance in in start that's those started could have them for number those basic did already. were Karma. At element They their dissatisfied That's customers. lot experience embedded X we're XX we a in an year. that that well in doing this of bucket seamless click were that interested what the to I everyone so have growth Credit just friction. them an by work a north why aggressive the resulted are not $XX what all customers embedded app. the they There And do within And instruction. that when Karma, for second no of traffic, we in, essence, is, them, over TurboTax. away, opportunity that enormous And taxes those of they could the we time. was right time, year, not. deal, was doing get mean in in. with fact, big traffic us. This TurboTax the get any and their experience are the not able we're the very within was about to customers log us all things same in very taxes Karma, of Credit And the million log Credit get experience, didn't of it drove that it constructively of within use to and of with One work required of And that's We a us to where was

say green hard That's the When worked saw TurboTax of X was We app, it our confidence very app. the things we as of X focus Karma the for it to drop time basic that not of a Both performance Credit unacceptable, Both example and gives saw of of look took to we be. we this with performance every the customer. to to working lot on that of app we're seconds the needs with experience performance already are is actually TurboTax the lot was where there's of off. able control. a be a I that of but those an year embed becoming Credit But shoot second the dissatisfied just some are Karma, our of app within constructively I X into member -- very share those, huge future. that load. The us the like to in we on. a And as

question. So hopefully, answers that your

Operator

our We'll from take with question next Panigrahi Siti Mizuho.

Sitikantha Panigrahi

platform. want multipart have Money a ask your I to about the and question And for vision strategy Sasan, I there.

there But hiring you so the some quarters. couple senior expanded in invoice have love we to executive and your money Proper far, progress get saw pay. in to seen last feedback also We Finance hiring that bill acquired Would recently made you also, side. the any platform of

in love which I'd in a direction it's your So platform. going money strategy to hear

Sasan Goodarzi

Sure, you the for question. Siti, thank

excited remarks, And around that talk actually are me about. Let an prepared about in also our our you the dimensions where very, on money area is focus heard we this investments. accelerating as X we're very

shoots whole with along lot a we've our a doing in out areas. estimating the seeing years, having of the are the of rolling with and several in are options We that been those paid now bill to really last built lot that digitizing we pay all of both the shoots seeing getting green we've invoicing process green paying work that to of capabilities customers. We're multiple

a macro tough in saw environment. pretty You

of volume green up area the the shoots saw we're XX% The a Credit excited payments accelerating where small an customers was TurboTax of overall lot that we're thing total this on also number increase of of across business focused is platform. XX%, the XX% money a access that and have that's because investment. payments We Our year about side. with much That's their refund or the our give Karma that opportunities to put monetize excited actually their bigger. it, we that But going the and Money that fact of tax about a on We're areas of friction are and account. be actually refund it. to We not remove Karma the could earlier far to XX%. because believe Credit we

focused our and we platforms year. are So on those our the across accelerating areas those we're both across investments business are small and coming platform in X of that consumer the

Sandeep Aujla

as we was looking partner, that risk shared the mentioned, on our the you to money of movement tuck-in continually Siti acquisition, group. and And technology management capabilities by in with business build within you some the small small the did are at a we've we past, and core that

Operator

We'll Capital Markets. take our KeyBanc question next from Markgraff with Alex

Alexander Markgraff

you one on for TurboTax. just Sasan,

I'm Investor looking TurboTax over sort and this just recent And framework just curious, term. long-term relates to look spectrum? a differently sort it what returns, I at slides understand think as When of at be long IRS assisted gain lower going we're implies IRS at thinking the category. Should focus the of the Day Just total business. growth the end positive we returns in share of given the total that input share about the for I we forward, the seeing of

Sasan Goodarzi

Yes, Alex, great question.

that context, estimates, minute our we question. The category we of flat, why the that we of will increase do-it-yourself led total taking it not category. context, we the answer returns just goal of total believe and does the be with X fact that will post Based then me -- I'll which IRS returns. all change happen majority on if share in assisted Let able not as is the share. With about our to of actually want is long-term IRS that, to generally are X%. your of grow And

there get to We way. right also the want in

of as value, being to Live franchise. I'm this high from return average because was revenue our filers. But very ended and entire up XX% where goes high our the franchise, over XX% comfortable we time, segment TurboTax So our being of per year, growing XX% at with assisted focus

this growth start also would business, online So IRS And from becomes actually of the of that's more the over X although the directly by not mix, going total it because in when the than believe total XX% that said once increasing business and TurboTax to happen about the exactly last group. result see of I it's needle moving what's years if faster, we that's accelerate in in desktop liken same XX% is the one to it's online as at increasing I total think returns. rate question, will the your we IRS. XX% and small our our happened. And then time goes XX% always TurboTax way, thing That will you and that us you're liken day, share to will would on XX growing business XX% small of what to small this, share Live

Sandeep Aujla

I So on other may to Alex, that keep segmentation the that's for is even important critical to point that context, filers, mind. of one add, us if simple is customer understand in there a

good to and remain the are focused not We earn filers revenue there. through a those year have we Karma, -- because -- Credit us for on TurboTax the simple we but investment, grow and don't are both there's we on filers after platforms higher simple are change focused to year on that's that return frankly a our think propensity and no opportunity

that what sure in was also you make were customer to hearing. want just pronounced I segmentation So

Operator

from ISI. Materne next Kirk our take Evercore We'll with question

S. Kirk Materne

a seeing touch the on might the of of some on back think talk for I Can just cutting trim. Mailchimp thought about I is in that side, business of you people they you the into is area? is to small often there? was Sasan, kind that sort of year, place share this half an go-to-market given gives to can fact just what business upon for think take you what sort curious that look little you your back bit. And perhaps confidence guys you're opportunity a what the the

Sasan Goodarzi

question. Great Yes.

last quarter. earlier. heard reiterate health it from changes that because a revenue consistent us fundamental the of was primarily lineup The some The what decelerated year. with the all, fact of what we're First big lapping you I'll price is business from and was increase last

there So if are remains happy which same, really third, the integrating -- questions we're number focus more, international. to about QuickBooks. two mid-market, one. Number aggressive talk durable that Mailchimp that's being and are two, it, I'd be And about is our we international. very in

our a In company from recently a and really being leads and we approach making areas has that with we're pricing that of investments customers accelerating in spent them. number of was in earlier, what are our very where investment. are business; Mailchimp as time most and mentioned built our leader what that marketing just new are and fact, another we've then where with there EMEA, the as London, done visited with with I doing platform, look partners, international we're two, came in the is large X we ahead. And one aggressive our a This in I fact, he we

shoots excited the And green that possibilities the given we're about seeing. quite so we're

Operator

Sachs. We'll take our Goldman next with Rangan question from Kash

Kasthuri Rangan

predictor the Sasan of remain best Goodarzi, small business. still you

You've environment, And what have in -- shoots, I'm got green to tougher, execute the gets which And best speak you well. guys ability curious the observation. you by that read. macro a shown really said I

are what have them you macro pocket to continue segment. able been continues the help it environment where business outperform things other things of to that [indiscernible] to if stay to the in for that So your is? unpack small One the that could the

Sasan Goodarzi

the investments the and segment. GenAI. We we the the and your earlier, Thank about and testing great fundamental Assist, so nimble, and the share in X are areas the you. that can is accelerating I on The first and short you, conviction learnings accelerating we our time, ambitious can shoots at increasing execution company Yes. green with our for the that is be assisted with we term you to experimentation our long-term, from we adjust. we're answer mean as in our were -- learn we're philosophies to And we really, I can Intuit have investments. heard that our we talked in one question hear seeing insights -- of that

And TurboTax Live. areas so number we're of accelerating a with

our QuickBooks expert entire based believe, actually platform. I shoots will improve also expert where within mean, because will offering an on seen, out it in assertive that the mid-market, every come are also with Live, been embedded capabilities embedding will we've retention. And small within building that we in have business We green really an we improve conversion, platform

payroll, mid-market with with all green know, way great the building out you that customer-facing in new our ones. our hunting we're the but folks, is live the sales only and asserted growing comes as down services for seeing about not platform there customers, payments, been have just frontline it, getting We customers, shoots accelerate to our leadership I'm from it's capabilities And capability. all the not to

those which investments are way, quarter seeing, of I year. that by Kash, accelerating as and the, currently, we are would So, key our say, next the the we all in shoots we into are green head

Operator

We'll take our with Reback question next from Brad Stifel.

S. Kirk Materne

of there #X long for data, driver you time, Sasan, about the overall But the think great question. wasn't the the as the as sort you environment, first with I growth as you did Great. payroll online on job Kash's think, a ecosystem. provided economic

growth to us maybe can expect there a there. payroll dig should you continue in and if the on business sort little give So to going and of we what's within on color moderate

Sasan Goodarzi

seeing Sure. -- that respect our just the health businesses, do actually with on what I Well, for start platform moment. with of small let we're me a to the could if

months, the we're sign One X back last of profitability we last to years. if couple our today some on X of in are improvement platform. the the small things a we of seeing businesses actually And to compared from that's good that versus look seeing,

-- driven the environment. that, performance depending within the the on sector is in, your Now you're that by

so actually their -- auto for repair, manufacturing, lending, XX%, up XX%. instance, like real services, areas nearly And where their estate profits profits professional down actually are manufacturing are

seen the compared up but are in, compared year, is your you're is to So improvement, to the of sector last net varies. But net on overall, we've depending performance cash that X% the over this that XX% of of reserves down all pre-COVID. it time

reserves with for to should that XX% I than specifically hours those on that is So for worked years, their our higher Sandeep let about over question, cash only your away been when to small have businesses actually a but what cash the just reserves thing year. are impacted. have X Last would us up ask last quarter. Specific say compared me to And you platform, by the payroll. answer asked you is are is payroll way, been those over their healthier take are

Sandeep Aujla

'XX, Brad, They charge went for in volume offerings take our to prior mentioned continue is, the difference my called versus to continue adopting quarter I'll as out I in to business remarks, payments customers our well. the XX% where payroll solutions. our in as see The higher-end prepared you the the point business, growth the to we reason quarter.

item the that's So key in to call sequencing. that out

Operator

Deutsche next Zelnick question from We'll with Bank. take Brad our

Brad Zelnick

to going a service And you resistant great hear it's full expectations? your double-click you performance driving did more bit have service about strong about feel you into think the in momentum in you filers, this full might forward? which capturing, Can Sasan, assisted season. how which than good a job do been little

Sasan Goodarzi

priorities. in Brad, deep day was of Diego question. all with team TurboTax actually Yes, doing on dives all durable these the I yesterday great San

full One service. was of them

different customers First you heard, say as the you new back that in but said the stands across actually an that that across out full income us. complexities, heard of reflect incredible tell our consistent. in more that I remarks, states, they what you of of a not it of than full you cohort younger, on those if And I all, and across amount, element very would that levels, by are if -- if all sort would outsized the I service not tripled, service an are millennials, was others, for embracing all

an I to So look constructively beginnings you recommend in and very I'll area our the able when area. the and we were spend successful of big experience. into to we traffic infrastructure do is, that you shopping somebody's are taxes built. lot There's of we store search you're somebody's our local firm, of your a a our we on us work SKUs. drive with We have walk at is, beginnings What front biggest a tell lot them that's one constructively overall way. just we doors. Where by assisted We our When dissatisfied showing just what were a we home being -- of with a But go-to-market of performance. are to you have we set learned you for deal learned when the presented or think dissatisfied not aggressive but for to the up. not expert, expert a you,

there You taxes do just and and they for documents you in you. go their exchange

experience we has shopping That's Our drop where the improved. off. biggest saw be to

created. one the So the better And that we way, of was during created where We in we with season, we experiences need by and But by a is this expert of we they're -- the saw exceptional. the comes want there's performance. that you personalize the SKU a versus an from lot of when lot actually by have work that way in, get an demand the that's leverage at greeted the demand to we the method, to that so do customer being confidence get a which shopping It's to the done greeted to experience. that assisted comes actually areas what AI pick.

Operator

next our from Citi. question with take Enders We'll Steve

Steven Enders

about market. the the guess I I AI want of on in or experience solution Or the so or -- I points kind and ask monetizable the is want kind how start or far? Assist are Intuit -- AI guess out that's kind maybe to that just to it outcomes assistant of seen? driving what manifesting proof of now of improving Intuit you've for

Sasan Goodarzi

our has question. early last I'm the you but for share actually a the and also some us, of pleased the will proof in with remind the progress, days, lot changed X thank months. Steve, in just and still Yes, we're I points, I'll

So let are. those me share what

And XX get the the TurboTax, outcome refund Assist and questions million in able and XX million customer to our that their out effective you conversion. Intuit to help but folks Intuit we be be can all, not And used would to understand experts as accretive in imagine, customers that efficient wasn't answered. of have if to First more better our much just Assist rolled helping not customers.

million are rolled make And decision. Intuit are Credit moment, monthly the rolled a to In Karma. our half capabilities, active we nearly following I'll users, to Credit have is monthly and those over million what one, things: Assist and in active we have we second of Karma, you help XX XX users. The have out share out what a

have the articulating. you by are happen way, to that call users, if able and in you cell, any so you'll Credit And I be are see to Karma everything the you of a unless am holdout on iOS,

better for a the you. you That's with show why And see to are than to experiences personalized your why, about So for like helps when you things card personalized but data you we right Intuit which Assist is conversation one able were you other. you have In will help you, this deliver you. we'll now see you cards use and that right case, it comparisons, and we for me actually conversation huge help engage, let the past, understand a that always have is can you. In one understand see element.

images, available accretive better rolled out Credit have of small help together, Intuit and you have campaign to available capabilities nearly QuickBooks reduce we help you particularly in save -- can help -- Mailchimp, use how personalized where better and to around the is what you put campaigns, you specifically customers we et where decisions, XXX,XXX understand utilization. platform, text, money Assist financial cetera. And where that's understand capability last you your money, to we side, credit, build rolled a an to I cards the other And understand marketing them, can turning into you taking it million really across out. about [indiscernible]. into What Karma customers. to is personalized and And nearly as that that's and and is then as your the an members again, would e-mail examples you everything taking invoice XX,XXX-ish feed. turning the The example, make is that That's means on are monetization. And e-mail business would wasn't unstructured data in we've it your that not to help which how imagine, use you XX couple help to if which have almost your best should cards

So ultimately for that's which us. most on a what's event to important paid monetizable orient what you can depending helps that then day, get you monetizable a you event feeds for is engage the for and business that faster, And insight with us.

what's the the in in So last possible made progress but made days. team last the that we're days, a more I'll days. has the progress lot hopeful the even end And -- just we've XX of XX it's with in about early it's future. amazing

Operator

Sills Brad of with America. from Bank question next our take We'll

Bradley Sills

question What I of it's you know are service. segment Full to here. for areas some what are been seasons the your couple have you've full now areas a wanted learned that identified some of that from? the I are target TurboTax of some seasons Service. more couple the belt? tax you've What in And under a order learnings your the from to outperformed with under ask a around of future What aggressively? of belt now

Sasan Goodarzi

Yes, Brad, your for you thank question.

you season aggressive not lot firm. early that we somebody's And question, your or important can a full real things. immediate we First your out, what that extend lot is testing rolled help fact understand experiment we of your We was said, quite the do learned go-to-market, you say, learned I can One, would into segment, lack walk transparency a to demand. store it really of about how we of where don't access price a going in Last a that to give that still first service. couple was money. But With access was you entire than that price although we actually taxes were to your answer the it there money with day, with you're at level. assisted still less of by the we this matters only we -- until or to of a because it lot all, demand talking is. did know of pay we and can lot. our And a in create the a created year, a

end we full than this an search year search. you an showed a expert rolled what locally in expert think element we -- up nearby, we to out was were lift. Last so pro-near-me, get is, to just there's an saw doing matters. one. Number didn't middle, significant know your which were able conversion our want two, great for to or that's you for That that the of could a be But scale And of rates able is year. that that, or the the if lot to you We'll with when learning big all way, customers, we time. all of the conversion of towards were this by thing proof able one. their we demand. expert. search enormous customers. had a to season, towards of But that expert expert and do not entire more near we conversion folks to People is services, be when And point local across you, our higher you of that want I significantly to recommend all a plan or saw we the That's engage as and/or an when season so created next for in number we

are with those somebody's our do in work And lineup. into I'll following, presented put or which to I lot big the a So of SKU you we shopping to last, a is have it, walk a simply just insights the big you're experience. when the not learnings. And firm a ago, end on and a with store, what mentioned moment

you an on that in And that's we're walk when next a this what all working choice. year, lot currently full of have in pricing get a your And greeted us a with and is, just are You we the essence, give working get taxes to enormous versus them of learning lineup service, on, make which for that -- expert you're by pick confidence. done. year which

Operator

with Oppenheimer. question from next our take will We Scott Schneeberger

Scott Schneeberger

this on TurboTax on do-it-yourself Sasan, in primarily TurboTax. is and

points do-it-yourself. that X there metrics overall sound retention The say heard I Live share and yet TurboTax think, full on obviously, was retention seemingly low some was overall service end I the and TurboTax great. and loss, consumer or Sandeep

the Alex's answered there, assisted good customer, there? do-it-yourself you what have a it that's and customer in you Because category that question opportunity. new forward. think specifically build-share going like sounds paid, category, in the share acquisition. But I doing great. growing are doing to great do-it-yourself okay when all you in It's like share, about the good earlier you So And are paid in retention in

forward? in categories, opportunities curious, paid your the are going Just what

Sasan Goodarzi

if different total feel cut internally. you to if in feel question. we what we -- Sandeep, about our fear it Yes. share remarks, at grew shared Thank that paid But please we've look say overall, because for you the And ways multiple good build. and IRS our X%. I you would

Our paying total X grew points. grew and our customers retention X%,

about feel we good actually share. So paying our

us on simple I that that earlier was that filers we're remark because lost where is, where it the with are platforms. we area that's today, the think things what And on are, bouncing was heard an articulated in okay we lost we on actually talked which between that share, share. about customers you essence, we've focus intentional

is have comes our would it our feel paying I you way actually we the about to about good performance. think that's So when share, performance

Sandeep Aujla

not that any on Scott, are I DIY that ground the yielding away would also add should have you paying customers. of we take

attracting on our Our both marketing investments, focused to customers we platform. are

are experience experiences product better we customers. better helping gain confidence customers And and on our their returns conversion. for remain better leading those Our to those relentlessly understand focused improving

market So in addition $XX to the assisted consumer and category, which we are small across to the excited business. disrupt billion

share. also on taking was a focused customer. We are It DIY paying

Operator

next from Raimo with take Lenschow question Barclays. We will our

Raimo Lenschow

over up how -- talked little what on Advanced? link here Sasan, if in and to desktop that Can and here you in is kind of there's you about earlier seeing changes we've what seen the And kind the desktop QuickBooks opportunity board? coming you're maybe of a bit the guys in year. more prepared bring remarks

Sasan Goodarzi

Sure.

your question, your directly, you answer if for Let but me come me question thank let please -- not And question. again. at me answering the I'm

earlier think all shift been our business in capabilities platform. And subscription. desktop the at the on been is, to one, time, heard we've what building customers us you I we've model of about of moving online a middle talk same our

customers believe, the all a far And targeting will what out a capabilities be platform. With to over to say that think is our on desktop number And of our talk of were point all even I talking to better want we've thing our be capabilities about to And you eventually, time, is destination, we that about at take QuickBooks enterprise of that in may are have online. really excited of of our one some we said, customers we'll online desktop of I on on choose building would our customers. built larger fact, lot which larger that earlier. really Investor we online Day, And So we'll come of aggressively our customers at Advanced. platform. that be essence really positioned to to the that's all a

you I growing said, desktop our online to can also all for what enterprise we to looking we our Advanced some as about with get customers high to QB digits. future. one, we customers time. really important look that's most our we're positioned just And gives price ahead, have single the plays two, come Number As over think that's desktop our we value our of view think platform that to over that an of franchise time confidence us go And role. better larger that into and

Sandeep Aujla

remarks, with we the I mid-market grew and say in was was are desktop high continue feeling to my as teens. progress I feel making just which the add, What No, about just QuickBooks progress the the across and with Advanced about good we mid-market, going Advanced. to question the the alluded including we're prepared I product, would Online about also the in with the enterprise in

the that's add good So continue we an area have. to would feel about, I

Operator

And we'll McGinnis with take question our UBS. Taylor from next

Unknown Analyst

is on Daniela Taylor. This for

was in looks Small to growth and our that stop. growth by stable run like it the quarter accounting acceleration an in & So the Business Self-Employed

Business is So the guide? how SMB segment? terms in your implied in pressure Small is and driven you many as saw online XX% for of & comment can we what by XQ, desktop seeing so Health in much growth software companies stability that look into XQ, that the SMP being of Self-Employed how versus influencing just And you're on given incremental

Sasan Goodarzi

sure. Yes,

enterprise, so services if actually online is me driven away understood our Sandeep, franchise get of share we jump you your I'm any you by the takeaway the business. And desktop we about, of to high look -- should me What that is actually and grew or trajectory continue that of ahead, to it environment, in the of XX% will will please just model started. come we let online anticipate shift what we have in about that take grow an should you to our the our XX%, continued digits. But sure growth as desktop I our half feel should performance. add. strength away. the macro not and from the the somewhat once fact XX% business Let good high talked end, take very grow grew we grew as business single be us uncertain. perspective premise but Overall, question, is being believe is to growing it's small that that it a comes

online very grow by strong, performance cash helping business customers think resilient, of It's business, a engagement seeing and has helping this been for and their manage we're we're flow. our really positioned just usage environment. Our in quite I well small very it's them actually because lot them and their

Sandeep Aujla

that And about not saw which is Sasan's offerings. businesses, the customers add, we those offerings small payroll by high of a is a services charge shift in And volume you group's addition what what is revenue our to than as the in underline, towards good when the XX% QX, SMB as our side. And of end related on QX. look reminder subscription-based. to payments to to just increased health part subscription, our of XX% at payroll our I in business would factors we saw continue we of largely well market of adoption Couple comments faster see the of that mix was

going feel heading our So into about online good which remains we into catalyst future. the growth, growth ecosystem our QX,

Operator

We'll take Fargo. our with next Wells question from Turrin Michael

Michael Turrin

that you're line? into Is down with potentially in slowing growth see growth look overseas else reach? better international help ecosystem currency. yield there with segment plays are Or if you business the growth? experimenting revenue tip Sasan, online there small that The what potentially the broader spear jump-start we to anything in international at trailing growth, Mailchimp do is constant the strong of around you XX% could see there at

Sasan Goodarzi

question. your Thank Yes. for you

First the earlier growth, last just of talked increase with lapping impacts we all, lineup of of revenue about start I'll the since Mailchimp XX% Mailchimp's and the international is from price year fact international. changes that that some

that we market and that was that fact, are absolutely, shoots one given the why international. two, green X with a have XX%. And in accelerating and Mailchimp our of internationally with big where QuickBooks So we is, driver yes, seeing of fit the product areas we investments Mailchimp, are

we what's look we're So about possible at. excited as

Operator

remarks. our to any closing back for program the speakers turn now I'll

do I apologize.

We call our they but take removed our again. will our the actually going any question. I Alex return were queue. will remarks. for We question themselves to from to apologize speakers take from next I have closing Zukin, the

Sasan Goodarzi

for Well, next see wonderful thank Thank listen, much attending. for and everybody, your earnings. our you will at so Bye-bye. you Be you questions, safe. we

Operator

you This today's concludes today's call. participation. your does This for conclude progress. Thank

Intuit (INTU) 23 May 242024 Q3 Earnings call transcript