INTU - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen. My name is Boo and I will be your conference operator. At this time, I would like to welcome everyone to Intuit's Fourth quarter and Fiscal Year 2024 Conference Call. [Operator Instructions] With that, I will now turn the call over to Ms. Kim Watkins, Intuit's Vice President of Investor Relations. Ms. ahead, go Please Watkins.

Kim Watkins

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

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

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

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

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

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

Sasan Goodarzi

big future. Kim, in delivered that quarter and growth for of to thanks us today. bets position progress with the durable joining meaningful made the for the platform We you, all and and expert Thank very Great. strategy for and results year company strong you fourth full AI-driven our

Our we and of our investments expansion, full strong momentum year and grew strength demonstrating revenue XX%, and the margin delivered innovation. operating

Intuit and expansion prosperity that double-digit the in in for AI-driven expert powering revenue margin platform and year is consumers, exit another global confident of we're year, small businesses. we a As fiscal mid-market year XXXX. is growth delivering

solutions big X We sustained growth. on end-to-end an driving bets a in delivers AI. strategy early position bet platform made as that mission-critical Intuit Our

our the engineering, scale AI-powered large data, learning and advantage significant investments and knowledge as of GenAI machine AI virtual capabilities experts. We such have our network a with in of

is This in categories disrupt operate. to us enabling the which we

serve where hard customers AI-powered delivering connecting we are fuel experiences them our by do for the how to expertise you success. done We their human transforming work for with them, we

introduction the gets and business' customer within while Intuit. driving bolstering how potential growth delivering now and experiences we're reimagined efficiencies of done With GenAI, work

made enabled accelerate has mid-market platform and bets greater the businesses. large, in build us fuel in investments success confidence to made unpacking X our big areas This of investment a we've plans has for a progress future. to the small the us moment our progress within AI-driven to bolstered and we've The impact to deliver I'll our leading spend key the future. consumers, expert

Assist, Intuit one, millions with made First, year. to small mid-market GenAI-powered the Intuit done in Assist businesses. and within We're XXXX, consumers scale delivering of Big we're our Assist. progress for Bet available making our experiences roll In Intuit coming fiscal out at we strong investments approximately to assistance financial and year you million accelerating X

embedding AI-powered Big platform are business across and for Live, experts investments Live accelerating within go-to-market Second, TurboTax we QuickBooks our X, offerings. and Bet

grew more customers XXXX, QuickBooks tripled. than TurboTax tripled. service customers those TurboTax XX% who revenue needed while fiscal year In doubled Live Live and customers full

businesses. an By for our penetration we our you We very and digitizing investment integral and will to categories. mid-market experiences, in expect of these AI-powered our assistant platform areas for high-priced services done consumers, disaggregated part how accelerated the deepen assisted manual, become in small delivered, financial a are

and our invoicing businesses online the In getting we volume total XX%. from X, on estimate to additional Bet Next, XXXX, We're and paid money paying digitizing accelerate to solutions. within for investments consumers, small facilitated Big our the fiscal end-to-end payment to bills. making experience year platform grew mid-market

QuickBooks quadrupled XX% Pay through the financing volume in our processed and progress billion payment for BXB made offering $X.X significant we Bill monthly access businesses Capital, over digitizing with which small X up last helped also payments We months.

seamless accelerated fiscal XXXX, banking, payments, capital, solutions. In to best-in-class, expect invoicing bill deliver year pay and we these investments

down solutions Bet complex human Next, and and accounting more serve In the XX%. mid-market intelligence, with capital Advanced QBO Big year platform X, our customers investments and within we're solutions, additional in management, to accelerating customer needs customers sophisticated all who have by XXXX, professional doubling assisted year fiscal AI-powered money motions. better investments requirements, human business acquisition more grew as with reporting Mailchimp, services experts. fiscal In such XXXX, go-to-market we're

and Mailchimp languages different TAM. And growth Mailchimp with finally, accelerating translated the X we markets large where see for QuickBooks. We've international offering into a

as together create with offering. Looking In localize we markets to including in Mailchimp help get to single leading bringing the ahead, Canada, fit, customers QuickBooks small strong footprint the differentiated platform, U.K. to product Mailchimp's growth where market Australia. a other we're businesses continue we and in have geographies, international and we're

with and momentum win fuel position up a is Intuit the customers. that delivering the and Wrapping end-to-end are is with to platform for are the have accelerated I of we prosperity an the mid-market areas platform in we investment progress and as great businesses. success shared, AI-driven consumers, powering that small expert experiences

Sandeep. over me let to turn now that, With it

Sandeep Aujla

margin non-GAAP basis fiscal of Thanks, non-GAAP and GAAP XXXX XX%, including revenue of total and across GAAP delivered respectively. XX respectively; of XX%, strong EPS points, growth in growth very the and XX% and Sasan. We expansion operating and results company, XXX

up $XXX year, XX%. restructuring last restructuring million year, in share non-GAAP ago, year revenue July. diluted last recognized million also changes operating $X.XX Non-GAAP share the per reflecting million of include operating announced income we XX%, reflecting results a of quarter $X.X GAAP organizational loss GAAP XX%. earnings a $X.XX million up quarter of billion, the related GAAP per and $XXX to versus in share versus the fourth $XXX $XXX versus loss per earnings of of million $XX Our income diluted up charge of $X.XX charge last versus diluted operating of of $X.XX year

cash services. XX% Turning progress to the mid-market adoption in XX% for nature and and look mission-critical business the and their ecosystem platform In environment. Self-Employed full during momentum Small offerings year. any economic the our and year, quarter grow revenue business business and and the This of the grew of the flow full as complex Business small improve segments. revenue ecosystem power a for quarter more Online our and to XX% grew Group, with driven XX% of a by needs the customers serving demonstrates of customers the during

XXXX. result, ecosystem As grew ARPC online in a XX% fiscal

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

the by effective focus on XX% QX areas with mix We customer with core. revenue and QuickBook's higher emphasis Online to declared and in shift. First, year year accounting our in growth, growth fiscal XX% was quarter on grew customers serving this the we continue prices for needs. driven strategic XXXX. growing more delivered Growth our and in complex

focus XX%, while Self-employed paying up excluding up This online XX%, in self-employed, XX%. declined resulting customers QBO advanced up X%. customers QBO total customers QBO U.S. customers, drove U.S.

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

payroll, full Mailchimp payments, driven the online services year and For revenue Capital. XXXX, fiscal grew by XX%,

with more adopt consistent cash reflects in effective payments manage the to and volume revenue was higher in XX%, ongoing the customers prices, per we've seen growth the in growth QX customer quarter our payments, quarters. relatively an payment offerings total flow customer. growth several Total Within increase over online payment as their volume last range

in growth a shift in effective offerings. quarter revenue payroll, the our payroll higher-end an increase solutions, mix customers adopting the Within prices reflects higher and towards

made customer The impacted effective revenue by a growth and driven revenue QX. and price last year QX lapping in and larger prices lineup by benefit Mailchimp the continues be growth. growth that paid changes from of was higher to we

execute localized continue in globally and our we lineup. progress by our markets to continue with on and and to Mailchimp Third, leading as includes Mailchimp refreshed in strategy, executing with established international leading we our product make markets QuickBooks other Online all which both expanding

XX% a constant online total currency QX grew ecosystem basis, fiscal XX% and in in On international revenue XXXX.

model, transition XX% XXXX. QX growth QuickBooks XX% low Ecosystem subscription for XXs Desktop concluded Desktop revenue the fiscal in in X-year revenue XXXX. Enterprise in Desktop. growth and contributed teens Turning and revenue a high the We to to successfully QX the in to in which grew fiscal

approximately fiscal growth recognized recurring the subscription recognized QX also recognized fiscal million transition revenue XXXX, quarters in the These which Our in would desktop X $XX QX of of of of revenue first in XXXX. fiscal have Ecosystem $XX Desktop otherwise been in changes XXXX and a all million made QX to in we approximately complete resulted changes to early model. reflects the offering

been in fiscal million recognized and quarters in also would frequent In beginning desktop We product fiscal revenue by XXXX later that million are approximately $XX in otherwise in update QX a to XXXX revenue expect related lower delivery of largely approximately changes But $XXX to Overall, subscription to could we our more in revenue shift have to QX the we to expect to QX these fiscal ecosystem total, XXXX. to XXXX. for fiscal for XX% decline return XXXX in revenue grow ecosystem single to of customer low desktop align experience in expect Accordingly, fiscal desktop QX. digits the QX. revenue model. approximately ecosystem desktop growth QX

revenue growth Karma points each and points, money X%. basis X during X% Karma from accounted On decline revenue was points improved in accounted to of product insurance for accounted auto a point. X Credit fiscal cards growth, to a QX. up X billion, for $X.X a loans Karma. quarter year accounted Turning Credit QX, Full for X personal credit for growth in XX% Credit XXXX QX in

are matters momentum our most on to focus We what and by the driven partners. pleased our members with relentless

the enable right strong this life Credit financial of much see made members their the We redesigning them. to and find to app progress for product Karma more year

personalized ever and product made Credit We financial for consumers monetization introduced integration. deliver in Assist AI, it and the than to insights segment easier point also increased underpenetrated benefit to using data the Intuit and Karma TurboTax from

X% Full service how I continue the grew and revolutionize ProTax done on innovating Customers the progress our for Consumer customers billion & am XXXX businesses. those TurboTax doubled, Group. grew behalf members grew new and small Group we made XX%. of to Switching fiscal Live in get tripled. team TurboTax while partners. to revenue as proud of revenue to XX% and $X.X Consumer consumers of taxes

Live with momentum are TurboTax with the the we We season. pleased saw again

Shifting ProTax Turning allocation. this our Group. I'm opportunities fiscal balance and million fiscal with our the capital year our to Revenue summary, ahead. XXXX, In pleased in up sheet X%. $XXX to continued was momentum and

$X We and are our billion in in remain with decisions is fiscal $X.X guide commitment conditions that the in finished market and million stock long-term Our fourth our quarter repurchased our financial principles our and and the of billion investments to on billion sheet. debt $X unchanged. balance cash quarter and the on each other be quarter. during market $XXX Depending aim during XXXX. factors, We

XXXX. per XX, Board versus XX% dividend The payable a This quarterly of year. October represents share a approved on $X.XX last increase

Moving on guidance. to

company Our of guidance includes fiscal of growth total XX% revenue billion, to XXXX to billion $XX.XXX XX%. $XX.XXX

the Our growth for low growth business, digits. Desktop guidance XX% includes revenue and ecosystem in revenue Ecosystem revenue online Group, approximately to Self-Employed of including growth XX% XX% of the single Small

and of Consumer includes revenue diluted growth of $XX.XX growth to of share X% earnings to XX% diluted $XX.XX, Credit for to XX% per the Group X% growth also share GAAP to X% X% $XX.XX for XX%. to Karma. XX% guidance earnings per $XX.XX, of to Our non-GAAP and of

GAAP we million reflects $XX reorganization expected announced charge XXXX. of guidance related restructuring the expect July. approximately in GAAP fiscal rate We tax an a in XX% to

reflecting Our including growth for XXXX growth to total to of in the guidance X% Small quarter noted the offering desktop Business shift Self-Employed first changes resulting X% of group from QX that I X%, company revenue X%, earlier. revenue And includes fiscal of revenue

revenue We to QX. is growth growth approximately to and accelerate our approximately in XX% ecosystem, online expect XX% Desktop decline to the which catalyst Ecosystem in QX

revenue our lapping Consumer the to For year we we the and revenue California are ago QX period filing deadline. ProTax expect for to group tax extended as decline Credit in a in that QX included grow and Karma,

$X.XX and $X.XX. GAAP share earnings that expected million QX $X.XX restructuring reorganization the expect of an GAAP $XX in charge is reflects guidance July. to we to of $X.XX we to per incur in per announced to earnings non-GAAP related The share

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

I will business our now growth of each for to shift long-term expectations our segments.

First, Business. Small

and revenue long-term reiterating With Small growth, see the Self-Employed XX%. for online momentum Business we the our group of ecosystem growth we to in expectations are XX%

drive of we XX%, emphasis of in as business to online in towards one growth growth of XX%. shift to to paying this online go and now part As significantly ARPC offerings. and our to platform of scale continue market paying customer XX% to as growth -- this, adoption mid-market, we increase we reflects services ARPC expect expect This we as reship all how our X%

is there online relatively ARPC customers. the other fewer than customers QuickBooks higher are nearly Online While QuickBooks mid-market of customers, mid-market Xx

Karma. Credit to Turning

strategy. We are execute opportunity execute excited verticals growth more our core deeply our about we penetrate as verticals, the in consumer strategy our ahead ecosystem to and scale

end-to-end year with from consumers current the XX% cycle, to reflecting scale experiences and to XX%, we growth expectations round. business seamless that updating current we of business With in on our the learnings benefit long-term and the TurboTax operating as size creating the focus are revenue

of revenue we period Live momentum on penetrate we of growth ahead XX% our this assisted, the to while XXXX, of XX% in group group season we Finally, accounted in the With key are adjusting in the Group. penetration significant revenue and TurboTax are consumer coming we revenue expect Consumer to that interim expect Consumer expected this saw Live TurboTax become TAM, be the driver scaling to revenue for grow fiscal group to revenue and context, to future it Based the growth. years. long-term X% to have XX% we consumer XX%. to with we the approximately majority the assisted runway

both in their on Starting and the This our mid-market name businesses One reach and serving to Business final aligned our focus the become Mailchimp up. the that Self-Employed grow with global new Business Small wrap to run Global will to we changing be of Group I platform and platform use and customers of our QX, QuickBooks name before Solutions note, and end-to-end the and Group. businesses. small better vision

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

Sasan Goodarzi

Sandeep. you, Thank Great.

strategy, including growth in and income We operating confident growth growing our revenue. are faster than long-term double-digit revenue

We our have of than where to massive seeing X% have Investor more. we're green unpack you with shoots we all look runway ahead. our the TAM, We the of less this month, strategy Day to we'll in given and win at and observing $XXX billion all a of forward penetration next

it now your up open Let's to questions.

Operator

Panigrahi [Operator at Mizuho. Instructions] We'll to go afternoon first Siti this

Sitikantha Panigrahi

environment, XX% good pretty growth But will small Great. weakness. business focus hearing and on to question, where about 'XX then beyond. If are I we X I Sasan, want SMB on in fiscal segment, focus is growth in this your 'XX --

now Now driving is it your mid-market. like looks growth through focus targeting

[indiscernible] share Or that And is to QuickBooks right mid-market? base? is planning for expand increase understand targeting about talked why You And on mostly so help this mid-market? and us your into other Intuit that vendors? time to customer the opportunity that to this, are how is you gain it big focus from

Sasan Goodarzi

question. your thank Yes, you for Siti,

and our that fundamentally because continue just to we've are Small First of with It's This focus want X With continue all, in focus years with more has on know, as it's as want I that we simply them. the of context, ago. be formed Bets the years been grow new. start that one to doubled than mid-market. declared will X on we to Businesses you down making. X our And to not

all momentum. of let question. are incredible about your say, think X X our able manage their business manage way would customers, able to customers, And in just a I the our grow accounting later, the to we now done, business amount answer to cash -- With have it building business capabilities now be be place. an just just flow, their all me to is context, as get their to years Siti, suite we for But suite. that One, provides their

professional want our we go is place. really market AI-powered going business X to accelerating as to they services pieces from at one do the AI-powered experts, that penetration the in versus now And are the to suite everything one are help of to innovation we parts really really are have hear everything platform with on really accelerate and we One, our we to continue we one because And tilted businesses place to a to and for them and place businesses. where thing services and have fronts. one in grade all we do now

with really us use Secondarily is excited customers our Day customers. We're I apps just grow a ] positions not would acceleration agents mid-market accountants. of only actually Sheets, in other. of different And remind to and each at mid-market. a multiple even will market, [ and majority to to to talk Excel the multiple customers lot for platform ultimately, Investor acquire that really are that to discrete nonconsumption. different bookkeepers, and Google announce us up pay but they further paying don't money our marketing take apps, us new spreadsheets, that that shoeboxes

mid-market And packaged be XX employees. suite now goal to one our that pursue to able and as is all to customers. we far XXX And accelerate have pursuing of to enterprise ultimate beyond go

revenue with heard from gives services. and growth X really And think a that's focusing penetrate the what bigger round really the smaller in able this at but down making. question, is customers, QX. XX% I on in years being And in acceleration doubling that so on answer the us the Sandeep, And to scale is customers this larger the to to online your we're our far really confidence along ecosystem out both you

Operator

go next Wolfe Zukin We at now to Research. Alex

Aleksandr Zukin

coming Consumer, ask to wanted year, guide for guide. the midterm updated the the about I

the that was as the the drive progresses? If just takes guide little of guide, view -- right the on kind season a place bit just the Sasan, through that, maybe, walk tax Consumer that macroeconomic of your and set surprise backdrop could start And why what to is you annual where can upside puts against?

Sasan Goodarzi

your absolutely, you question. Thank Alex. Yes, for

your me macro is environment. with start question, the of around part Let the which last

assumed the have assuming any tailwinds other coming the from than We're anything not not macro We environment. current environment.

really informed seeing that our current trends the It's we're our So on our one that's elements momentum really that's execution. own focused our guidance. of we're really and all about been current seeing that

that of yourself is consumer it but assisted, momentum. all really a the market great both tax just would the I billion billion first is part that's is part side. got is $X billion the TAM, say and as is We've on So question. refresher, total $XX the of in do $XX second -- about and business about your

As you know, TurboTax the Live customers full-service number that franchise double, tripled. new grew XX% the but past year, this to we of got

of providing And as lot that a to an XX% really expect that's of to momentum we grow Live look so between ahead, and confidence have a TurboTax we in we have XX%. we why lot expectation

be DIY to that complex actually really wanted just to I long-term that to that digits, just income, I because until our quite with actually of we're part with very And taking growing to it expectation. will -- expectations high accelerating prudent long-term I into customers we're is prudent growing with single is larger franchise, end be higher Live, and TurboTax digits actually share. would and really our our parse say, saying important, would with One, X. XX% our we and of rapidly, a until leads which adjust today double franchise, wanted we becomes high

from tax made past learnings year beyond this how our be of our this experiments on because benefits platform. our assertive pursue a year, trade-offs we we're this our that monetize Karma this deliver customers and Credit in income with with and based focus of lot to lower year based going to year shoots green our year to have and this we quite And continuing on

income we're that. I'll that around you leaning the is, just asked really tax final so seen to we've more XX% are going into One, the And which where to of a green think, And upside complex, DIY. X TurboTax in are end customers that our really with lot actually aspect question the guide, be question I you asked, the dimensions. to from shoots, which accelerating accelerating higher of beyond assisted XX%; two, a is and comes

the to We win coming the have for years. in both that's ourselves positioned the required and innovation lineup fronts on

confidence our from. So that's where comes

Operator

with next Zelnick now We to Deutsche go Brad Bank.

Brad Zelnick

get about take thinking Great. I ahead. rather are specific the wasn't How I to which allocated back be position appreciate as restructuring, time by additional you Any very but reinvesting would to great. Sasan, seriously. staff savings wanted it better company initiatives there know any to about prior up takes cost dollars Are the ask motivated you levels? We savings, to it color to? that

Sasan Goodarzi

Brad. sure, Yes,

secondarily, tough teams getting are First acknowledging compassion I them very and to with and We just excited care internally, to impacted. this for this in very, why of and are remain we the people all, what's we're those and took were they these And are us. talent great of we care start culture take a very just staying about is hard it there start about of future want a great care. taking and energized. But And because And both and doing I our decision. seriously. that extremely those wanted that things

of future. that and what were, in We also lot company prepared X dollars it that against the position as my my the reinvesting important I which a which to we in it's and the for of taking articulated we're all comments are is upfront earlier really And critically executing areas, communicated, plan we believe the really remarks.

in X dollars intent the a X those in back to green we've put latter last that this those towards several our part fiscal areas. decision of They really, really accelerated in of And years. areas shoots the year, all to is seen double really of past the hence which down is lot

allocate customer in that additional success those mentioned. marketing, of to spread headcount of dollars those our engineering X headcount, areas to And areas. the it's is I and course, intent So all across

as years on provided paying you to really guidance off -- of for expect by back because added the X, This the in in. X And we of None positioning we any all the resides us year. our way, no there's these know an is risk that the headcount note really our of for important of plus. we that plan only just of I'll think and expansion productivity. lot have the but margin articulated, us is from AI a to not the that this efficiency and of all about the a coming Sandeep end positioning the platform but with investments of we're our future. with we from in really the year, next about execution no following: internally That's coming expectation lot leverage there's getting, drive confidence

Sandeep Aujla

go-to-market only were standing Brad, you thing contemplating add We made tax we increased the had the a is the would we assisted as building start mid-market I category, timing have listings, than open didn't last after announcement. probably our our scaling particularly that over marketing function well our as marketing as which We from a already the we quarter. as as DIY activities, category. started job out those saw has go different

Operator

Thill at Brent now to next Jefferies. go We'll

Brent Thill

to that reacceleration, you you think like Mailchimp what see? get about level to to enable need the you'd place put do when to Sasan, to in the

Sasan Goodarzi

that Yes. There we've are integration QuickBooks are that executing platform. the excited worth is we're that with out X about. One really the calling been areas

really we're to QBO QBO, of all earlier, is where biggest customer the U.S. of areas advanced our a accelerate XX%, is able XX% I customer growth to suite in the our platform X place. one As why with creating mentioned growth

on integration. focused and So data tech that's one we aggressively that are area

mid-market. on critical momentum. is is also to acquisition That's our workflow the we're capabilities. Both, offering, it front. X an course, That Number of doing the integrate declared making great that number one. and integration, we're by of was the And area we we're go-to-market what when way, but building Mailchimp, progress where

Greg at now for brought back we together is announced, making on. against areas, Intuit. international. marketing sales positioned our focused And quarter, reasons that then and about able our leaves why all mid-market. and year progress for and look are He the areas we're with better of business, the And coming we go-to-market X when across QuickBooks that's very As of we're our us and small last KPIs, and is those to runs think, Those customer future. one be the we've be and I solid of excited Mailchimp to success Johnson it X last all the

Operator

now to at Keith We go next Weiss Stanley. Morgan

Keith Weiss

Congratulations I are wanted units giving in to the in parts about are the QX. Or confidence the seen acceleration, subscriptions that is on of you a and seeing price there QuickBooks into confidence acceleration deceleration online of really business online something services. the ask both that We've Can or X are other in heads solid based out QBO of? business the acceleration like an follow-up, reinvestment The investment then quarter. guys is towards paring in from increases? guys quarters guiding upon you're back of dollars the headcount in? from. in those parts And heads the or us the came for a lot Like that reduction what about of of came QX? where where as you a talked you the give a the bit little of visibility

Sasan Goodarzi

first live Mailchimp. in question, this and for is acceleration services. Keith. expect you Yes. payroll, across Great. across your your in Thank And areas. payments, across we platform our comes X from question. with I'll acceleration Really, our One, services what start

one that's key So area.

they're The our what was role revenue we this but way, past is ecosystem area what in platform XX%, have, And second our place, continue price, is acceleration. in key we've based mid-market, have just that build capabilities. to especially online better we traction the pricing we labor. terms we is manage X price. SKUs. by earlier everything very year. And I that it fact hear we're from shared saving to on the which growth role out cash on one They're a plays Those we suite need customer our out power a our less events, be business a expect capabilities really in the because that QX, third that flow shared would is in digitizing on very our really big as drive we where we're with efforts QBO flow. actually the learn that's and and big the because that their also have played they And go-to-market thing able we our earlier, their in seeing seen time And informing just of higher-end our customers cash call to and good

But confidence is that the you and into give of know, those things beyond. as the majority X us business are And this QX subscription-based.

very predictable. it's So

folks the very was company. across talent. the we several great In and there company your the terms lend because took one was the to was we around, talent. area These key the execution was the wasn't from about largest particular actions well, of restructuring, looked this This and from that It have This the will was there from it for second really I say terms as heads where area, area. the across elsewhere. our was from opportunity coming an risk from an felt believe of did in that was not X% no we the of are, any by -- question looked at upgrade which, across there's way, by that opportunities opportunity that the areas. talent performance. talented we But we why way, really company we better would talent

one area. really was that So

then, down The restructuring second from. Toronto. talent consolidated sites, earlier. course, X some of areas, of say, technology would where of Bangalore, main the mentioned closing really I And of key Aviv, came across it areas talent and Tel Edmonton technology and multiple that But we're our the drivers those, allocating and to our I we were is, Atlanta consolidating Boise all the in

Sandeep Aujla

question. Sasan's The first thing add, that part I only to would Keith, of

XX%. consistent about growing customers an for mix. mind. so recall contributions pricing, at that you the Small secondly, and keep to slightly prepared over XX%, and tend These pricing volume the our we well look the I rate talked while and are our a they Business are comes carefully, larger U.S. decline, higher higher use in of at mix half price price in And very volume level, relatively company group. year-over-year the in from than growth at on services self-employed growing my advance to If attribute adopt important remarks, that's QBO And

into the heading So into QX. to that's component we trajectory second the mind as look keep at

Operator

Sachs. next now Kash Goldman Rangan to at go We'll

Kasthuri Rangan

quite most hit nice this the of to $XX Very billion, quarter, software And billion. accounting notice but guidance got Self-Employed you've One, the rate at companies it the think, A Business, in are for too. you that with fiscal Small in finance XX-ish. I few market the your Group on enterprise payroll. I the now there, -- software recent help the is finish part payments and done as year and of positive you most $XX the congrats, couldn't running

on bit of you also a I ServiceNow, so growing puts less is faster your lower-value more advanced this a upmarket, with believe rate little run business mix units. at decidedly and and track tendering moving So SKU you're

been, and enterprise one has this your tendering So dollars software revenue, from of at in least successful, perspective, the more the world. largest my companies

this So haven't business? this come I'm with question. not your far, And I'm glad else go where asking tax you could

Sasan Goodarzi

I saw Group you as our north XX% the by contribution with say, Solutions billion, the guiding been And really year, Thank the And mid-market. the from online be particularly growing setup, question, of way, I you you tell yes. to of guide without and XX% growing that XX%. in just $XX in we're our much, to would would Business has Global massive all for at coming done also,

run to be mid-market. of capabilities all last because a best today where at investing suite look truly to to the are and you X to continue go versus business. positioned to we we grow able and be is we the after going years So And in we for have been their a ago, the business where yet key if years X have to business are come we've

on larger goal the really And big announce is from we're will of customers. actually really positions brand get we to where really where to serve we all contribution the are Day we mid-market. mid-market able platform, and when significant something our names, exciting be we without look have at you'll Investor a be at franchise our at at to think that And our you with us look ultimate incredible is I find that -- when that's really an the future excited having future, these

would Mid-market, I'll continue important have crowded opportunity is us serve a make. because real that of I remind we now us following. smaller the point the most want actually to it space. It's businesses. And in excites that's what platforms And when we mid-market. about win financial a the but not to to comes future management probably to

we're chapter have next an look And taking so is to $XX X and into about really really accountants precisely to from of as we X this incredible from years. We're much businesses. group excited right win. hear today to our business billion we And larger the what we mid-market next the from

Kasthuri Rangan

XX onto XX.

Sasan Goodarzi

Investor at you See Day. indeed. Yes,

Operator

at next now Kirk We'll Evercore go ISI. to Materne

S. Kirk Materne

the growing, your integration about next on the areas that and some Where or empowering impact that congrats you the upbeat I'd are area. other Solutions is customers, that how process? my in sort Intuit comes of you rates about helping guidance My the thinking in of on year. coming around on sort guess, be Group. mid-market Assist the in curious your question in like I that Business just maybe Global in Sasan, quarter of How see attach year. products

you why on business side. Assist discuss the just that, don't Intuit So small answer

Sasan Goodarzi

Yes, Kirk, thank you the question. for

for First with accounted the haven't our around we of guidance or Assist for let me in Intuit assumed coming just start anything all, year. or

just So to I start wanted there.

question. going momentum of We let have me amount Investor Now you're to get an it Assist, Intuit see at actually with Day. your incredible to

really remarks, engaging what which the is to are in we prepared with Intuit going delivering businesses me we years we But bet of shared the that role was for And it foundation about our was was which actually future about data I where work ago, bet the X really experiences do start the the let million with in But and X company have a what because play is the customers. significant on AI. foundation Assist. the around of that

number with the garner is customers we behalf areas that that our the proposed our part lines our customers million that could campaigns marketing that could of of customers. along And using so today mentioned the revenue I as on of of are a then execute

can invoices in Send of have that of remind we create want, picture that digitized all within it take by I Things you will can to. that an elements business overdue, you you a the that's the like written we our them, then to of pictures customer, give using go schedule you way, what feed your the customers estimate, some invoice today. that on your essence, taking, what just are platform. you in the estimate payment are And of, access a capital may mentioned of are

focused our money now entire those because customers. And take goal areas are sort is just which a ultimately, and AI. of because advantage, money critical of in, we're so right And I really data step on out for our most the if our forward,

These work that just is customers. goal that on is we examples for do our all Our illustrated path. the I of all

Now what course, -- revenue growth the beyond it benefit helping of for profitability growth means the businesses. for company of us drive as a and

just progress us. of our believe invoicing all a of What means file but into for estimates in smaller the will a impact that for mentioned, a customers; examples the services particularly adoption create it is, because I customer note, it will payments of new revenue areas. upload us turns then growth; PDF have an we a couple One, two, scribble picture take

fact and the our going be And embedded event do to of even with that a that, is way, doesn't ultimately everything monetizable by we AI-powered for going expertise, touch is goal in the which you on live forward the you. platform with

sort making be we're And experience in of good future. and an our the so it really part And enormous progress. of will growth

this which, excited of we're in also all end and about contemplated future, by guidance, but of will with where Investor the our is of None it's I you big a Day. way, at show And of All I'll started. our part it.

Operator

at to Kartik Northcoast now We'll Research. go Mehta next

Kartik Mehta

tax. as considering what execute on you're products, you're live in I'm you're starting guidance the thought on building just executing the lowering seems on was momentum question now, Sasan, to the service. a it though wondering business? maybe of full the Just the

Sasan Goodarzi

you for question. Thank the Yes.

assistance the on they're First all the our customers. and the can themselves, power it's it's of platform, except is start they of or the do our can the experts TurboTax virtual platform, their which platform scale. experts, sit on data all platform, side And do with Customers, with we'll I do one it taxes them leveraging -- or ultimately, it with for do and them. actually for same capabilities would all, to it other that's our on and customers' AI of

lightly. lot of don't that scale long-term make looking actually So us It's around them the that I we gives with what products. decisions wanted we platform, that point which different just to start X foundational a expectations, not When for. it's make is we're

In X.X tax. long-term I updated ago, the we CEO, expectations fact, had years became right it think was of when I

for a seriously. really we billion time. And it both it's look so you opportunity these really, that's TAM, thinking -- business, it something at largest $X so billion take and $XX where billion, which When the the consumer yourself decisions equation. and we've to And very and And simple what comes about been very a some down is. math growth is assisted $XX do

from what Sandeep And guidance. that today, complex growth get it's XX% we're the with also once right long-term double adjust. like DIY, growing we'll double for very higher-income expectations. the aggressive customers only And where are I informed the XX%. also decision we But the XX% digits, felt franchise to heard want and to with assertive reiterate folks guide interim not also rethink made. that we very sustained, customers. But just That's this year. saw income with growing are shoots time really that's do-it-yourself in And based the of high on it's prudently an both the some that lower what being we category. we then, But then to you we the that to was year, And context, coming until be long-term adjust digit, green going we're in

Kartik Mehta

Small of the or look follow-up, X change changes as what's Business, Sasan, look customers? at health may hope be any that your concern Any just happening you And quarter? the give to you as you the throughout

Sasan Goodarzi

levels. country. an We serve. cash that give would you, X% revenue generally, stable. last Across differs sector, still businesses to in Kartik, fiscal The see compared up it's to profitability by is headline way compared businesses, we the at by to by our But year Uber I reserves we see level, up but we state, down X% year, for way, pre-pandemic small by this and

worked also We hours see higher.

by we stable. on the see the same which And is side, thing consumer So is way, stable. headline the

Operator

Jester Capital next Daniel go Markets. with now to BMO We'll

Daniel Jester

of hear Live to number the more move middle great you was than It what's for talking resonating QBO the Can about tripling. that push? to more what's clients there? Great. upmarket of you Live, opportunity And spend QBO moment accelerate a sort into about the as market, more maybe

Sasan Goodarzi

question. Yes. Thank the for you

start question the with me businesses. with resonated of what's Let your smaller

biggest bookkeeper accounting, on had platform market benefit? about think throughout an the do at about product our working that to our a and offering? experts businesses news every a go accountant. really Really, our in year, actually think For meaning life business to help with the through bookkeeping, they're is challenge advice. how actually the we've some providing engaging fit, is that to because can been the we market How great their us, the in last How year point we've

price. just So it's opportunity manual, there. opportunity. is It's It's it's disaggregated. we're The create high to not trying

problems we're really, do is the our key And uncovered say do biggest now them our can on how been customer would we area I the understand platform has that that's with we an focus thing that how a that they and that, to that, help this and really accelerating. of so the part all where really have. you help And

And destination. feel I like we've don't want the to make you reached

still hire they customers lot of this experts their into And AI-powered a about, with employee ahead. do have is books, that would their with around expect accounting, with them embed think in for we're bigger we and CFO I cracked a excited decision lastly, with I nut larger as look a because we But able their to to They say, to a really, for an our opportunity expected. offering particularly assistant work decisions. our far They be area. HR a hire. to inventory expect help this

that the a Investor capabilities hear part a talk it has that element all needs with is us mid-market, business focus that accelerating expertise comes of you'll Day what our the big we're it with so about business with. key at of And as suite is a

is it's upmarket. opportunity these can experts services we of on bigger move range for differentiator platform, a the customers. a are the sit believe as we think provide really I us But AI-powered that for

for use And sample like higher, the us. benefit by last But payroll still. end payments small of experts, with, are services way, thing, sizes great those a for and is attach and the I'll customers and the -- that these have really live which actually

Operator

go We'll Arvind next Piper now to Ramnani at Sandler.

Arvind Ramnani

This is Arvind.

have given... couple color a some on And you you're of with questions. some of calls, of the Just In AI. additional provided prior benefits the seeing some kind of

Sasan Goodarzi

out. and can In continue. now, We ahead go and please

Arvind Ramnani

on a also information is of just the kind see? starting across any trying to you're I'm to add Yes. your terms get seen color those you're of a cost the able to -- benefits some some provide additional revenue both quantification perspective of of of from business, there impact in from but you've that AI

Sasan Goodarzi

Yes. Thank you your for question.

think I couple of a I say. would things

with for that we're serve work our of for we're Karma, TurboTax platform service, doing and, business that of the course, customers more even so across the lot customers seeing platforms. impact of usage our it all, our of driving really Credit Across our a all of the do First automation full and can and I TurboTax, articulated a earlier. the lot across within experts examples innovation it's of they

be want across platform. to I So clear, this our entire is first broad-based

large the that our retention, our AI we make and account usage you services, AI internal conversion, immaterial would the And we in thesis seeing how world we this better same year, I say are contemplated to had not within driver add it to coming the of if intensive. on cost future in growth a this the for what Sandeep. are of And we've believe that At our will year, investments businesses last the that years. time, instance, Intuit capital I need reimagines has but in the investment win the didn't guidance in as well. focused -- better don't X, and structure, AI we really heard over and to investments make core from X with, and years. green very the shoots it you have and be growth our we're that of really to be anything? the anything the for will we're work of are revenue remember, been And data using about Bets really, been these We today. Sandeep, terms in intentional is any our is do know, million

Sandeep Aujla

possibly to No, been rate. in mind sort AI point, we our keep X to compare of your portfolio, us as in really thing I other run companies in think one that covers.

cost So change I wouldn't structure. our meaningful expect any in

Secondly, of a AWS for processing. we the lot use

it's building we're data not like So centers. our up own

And us. the quite we productivity. as So frankly other own alluded that's light factor, seeing to, also Sasan in improvements also very asset for our are

seeing G&A We improvements productivity. overall in our are productivity. We're in developer our seeing improvements

So to in in continue scale operating our just factors the keep be our not not -- find to mind and to margin that continue to commitment over AI way should getting not time. leverage of

Arvind Ramnani

Perfect. And just X quick follow-up.

lower kind or CPA. How Just directing you of it your is customers like margin. Obviously, revenue, be And or a but higher basically of AI kind come balance versus Because that? like of of is the you're margins. balance answer you on out? sort like but of sort who at higher of someone QuickBooks accountant it do AI AI ARPU, course, directing lower as like a lower How kind having ARPU versus more to TurboTax do is Live, Live questions to lower the ARPU service-oriented. does of going thinking like or

Sasan Goodarzi

Yes.

think And believe ARPU and investments on AI, attach the it's not actually of our of better what our data higher of is what articulating services. drives with you're that based premise We I we're seeing. all more it they're because actually when the involved, data or way, drives our because experts experts productive It our expertise. and effective get and human platform. sitting attach actually they're quite AI our actually human-powered by human-powered of AI-powered on

aggressive and seeing in as things. platform applying what based internally just we you AI are because aggressive time we on we're efficiency heard about. So I because externally are X articulated, as Sandeep as are but talk what ARPU our on actually we also more higher One, effective over of

So it's don't see. reverse premise what that know, would in about add actually of terms the Sandeep, of we the you I anything. if talked you

Sandeep Aujla

success the the is fear, mind game important using thing our of to that in powered And can using is up category. at the AI a that by aperture scale. open keep AI And the we're you've serve in after eliminating lot The TAM. the the helping really actually doubt. experts, of is actually assisted keep is us to name penetrating Yes. That's thing doing -- it confidence by in the uncertainty mind and customers go of and AI, we driving and seen a

are Some those that do us, some outsourced of to me. fully with it those of

opportunities the mind to something look just that opens strategic this as So as in us keep at well. for up you

Operator

of next go Sills We now to Brad Bank with America.

Bradley Sills

know in the last in harnessing and the past, I you've learnings ask out to the that near the year the and building around in more the play Analyst start the like sounds I are a this you and for components that a outlined platform platform course outlined of conversion of little out year data AI, you've the for some wanted underpinning But that the that. a term. that were retention question thinking of studio had some that Day what AI, over about it's is platform a at the SKUs, it GenOS the separate to of further and

Sasan Goodarzi

Sure.

customer scribble us literally we actually progression being marketing test way customer. with us. but up The together significant able following payroll, question get we articulated seeing the What our and all, use earlier, it is And to progression the this place that. services, Mailchimp growth really our talk where to their an me this customer the we'll we're The picture with for points. is for all platform we'll AI and PDF the payments, customer on includes for drivers simpler because that to it's innovation way is those document together that you is And will This customers, experts. is putting put them also for paid SKU campaigns take heard SKUs test our human we comes of things the around is Live. Services live a in a let the First to focused is agent of shoots experts. about us we're could them. your that important a the customer we Two, doing out. stand-alone far element one, proof SKUs. getting and AI-powered your easier digital everything adoption you start seeing to note, a believe And green with for just able to which a growth be to be a AI-powered our a an that believe, which platform, as that, new we and as we in a make of like that opportunity stand-alone future, have this are a are progress for could upload our to the that that sometime will where is progression, call drive such to estimate and new

And lot data. the when cash is, first, you it's of see But data. them because element question, love creditworthiness we something be uniquely have their what's not because vendors, about it's with money coming which generic about have for it our to they think help last talks means their what we progression other at their the flow out, able really managing about have. of look XXX,XXX the to we That of data. doing we employees hard their It's of because It's what The you was going hard the to money that to we're are business, data we I have flow. a of positioned And every in, And your points. all cash customers' to. that's the really element hard, thing, replicate. have is which

it because enhance the investments to data has crucial other and the to And was been us platform, in the deliver could to that our to allows is Intuit more ever then to be so use GenOS than the LLMS I LLMs GenAI the agency on data have which capabilities that and able that we've experiences train our then made and authority LLM just be the our articulating able leverage experience. customer's

copy that learning answer to investments our of in we've and extremely and made we've that of LLM we really to accuracy biggest performance thing biggest cost look our hard knowledge growth the is we machine going of engineering, sort delivers learned management, live a So punchline our and investments, the really is biggest as your really in effectively opportunity because world question forward data that's financial the the combination advantage ahead.

Operator

closing is this I'd turn At Mr. time, the like comments, sir. back ladies that and And for gentlemen, Goodarzi, time this things for to to questions have all we any afternoon. you

Sasan Goodarzi

Investor Well, all time. at listen, thank your Bye-bye. you of we hope everybody, for and Thank soon. your see Be you for questions, safe. Day. to you all you We'll see of

Operator

thanks XXXX you us, all joining much evening. conclude year Fourth for conference quarter does wish Intuit's so that gentlemen, and great and Goodbye. We fiscal Ladies Again, call. you. Thank everyone. a

Intuit (INTU) 22 Aug 242024 Q4 Earnings call transcript