INTU - Earnings call transcript Q1 2025

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Operator

Good afternoon. My name is David, and I will be your conference operator. At this time, I'd like to welcome everyone to Intuit's First Quarter Fiscal Year 2025 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

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

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

All XX-K at You statement. those of other earlier this issued press release can we our on available learn more are assume any Intuit's and our documents about obligation for Form the these SEC page forward-looking XXXX risks update to filings. intuit.com. in the Relations no fiscal afternoon, Investor We website

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

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

Sasan Goodarzi

is power you you, our Investor you wonderful thanks fueling Intuit's and Thank all joining tangible of platform by our you for delivering to inspired which was growth. benefits that are Great. today. the us AI-driven Day. innovation It to of demonstrates of Kim, many our hope see customers for at We and strategy and momentum expert

Global confident revenue and revenue growth talk we're Credit year, of full ecosystem to guidance. strong of XX% let's XX% online margin this revenue and by first growth a our XX%. revenue start Solutions Group of expansion We year, about quarter. double-digit our We're the Business reiterating growth context, year delivering and growing had Karma driven the Out

from the leading this access always and personal AI transformation platform by control. in a creating here, businesses. We've transformed to is future where by consumers it's fuels work company and with transform the the platform. and of done platform Enabled you AI-driven We're to life. human of our an part AI-powered customer fundamentally is our it expert driven, experiences tax financial will enacting success The every and for AI

proof We money our data continue have The disrupting advantage a AI to competitive in large of progress applications in observing of bolster AI-powered ecosystem with the outcomes virtual and data, and and consumers significant of the we're services, strategy. operate for businesses. scale drive we've points categories network our better We're confidence to experts. we capabilities our delivered our

success round financial use, Bets with will customers. outcome smart Bets price X winning see expert the problems share steps We're money tax AI-driven their of take refund. to a I our and best health their is ease best platform focusing on for and as leading with year accelerate by and customer their helping our receipt Starting Big powering customers completion speed now of an how consumer platform, our as improve decisions, solving on to our make Big are focused platform.

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and Karma we're insurance, such engagement growing accelerates Third, consumer as accelerating which and platform, our refund of Credit verticals across prime year-round money all with monetization. driving including access, benefits, our at

platform. our to business on Moving

across quarter our We end. and to businesses customers during Our made help grow their to the end big of is significant X bets. run vision progress

First successfully to Intuit After generally with with financial Intuit Assist, speed is QuickBooks Online Gen over assistance. Assist our revolutionize all delivering bet U.S. AI-powered experiences now it benefit, piloting available is you customers. to for X done to million customers,

manage automatically and turn It generates a to spot help we like by build Intuit which shortages the customers of increased To we potential our accounting to to of XX% of review. flow, of benefits getting electronic reminders and Assist just for suggest into started. and uses drive It days cash for to notes adoption also paid delivering customers, invoices AI businesses and our get average handwritten cash faster, to bills. realtime power invoice help in agents invoices documents sooner, applying This tangible and our line flow an estimates, e-mails, credit. X AI-driven matching and are is expect automates transactions platform, expert platform, solutions

Enterprise QBO that Bet IES, XXXX, of multi-entity IES, agents in introduced mid-market customers Advanced where X and franchise grew the market resents addressing Xx XX%, cool delivering and up suite boost the are AI base. fiscal Big businesses. mid-market management In the suite which from configurable mid-market, businesses, We focusing through was online the expand QBO We to leveraging XX% for XXX,XXX of automation we the our billion integrated can rest Intuit $XX Enterprise TAM. Advanced we're products Intuit actionable to insights. Suite enabling already ecosystem disrupt today ARPC an of needs productivity With grow year complex with into financial offerings. QBO of or have further a our revenue customers on and ecosystem who

ahead confidence an annual well and entity X and While it's an strategy. competitive to solutions creator our as customer across streamline days, replacing examples signed We park with early entities. are approximately us RV the revenue, X evaluating who was we consolidate in high that give opportunity

now. the minutes X IEA this its the to multi-entity able fractional With be took from which seamless CFO, several on the outsourcing in so to upgrade platform, company reporting to own a went days its do just

and business. Their IES immediately their grow to run fingertips, referred for their a make needs changer values the game accessible support. relationship-based CTO data and this can AI-powered to at decisions as company and the business it its With the

more signed development economic than million organization across with annual revenue an recently corporate in also We entities. XX $XX

its of and bill this customer payroll. part pay, IES also payments As contract, adopted

customers many like helping integrating operations streamline all save challenges of by single services having time. came platform them solutions, these this, that in multiple seamlessly a endpoint solves previously data For from apps and

received of that profitability for including hosted our our We businesses X,XXX we with business month, how mid-market positive. overwhelmingly vision them. offering business have time is accounting Last and flow. improve fuels that reaction showcased success cash We for customers IES growth spotlighted them been business we and performing, serve saving than the the sharing them at they the them and platform see conference an need already our to are and growth advocates, was Intuit the more event and helping first-ever having Connect is and firms their IES initial strong decisions revenue that large Customers the using end-to-end attendees, accountants. that the make

current it upgrade to an easier customers costly to to finding platform. are In and entirely IES less addition, new than switch

We large the TAM this billion mid-market are and of businesses $XX ever more excited to accountants. success to fuel serve than

list, honored be ranked America's which we're #X to month. Companies up, came Best Forbes out this Wrapping on

and as and performance, companies the employee Forbes public financial such factors nation's trust, considered largest and satisfaction. customer evaluated

experiences With believe consumers, end-to-end you an positioned fuel to to delivering, win platform we are the as well progress the and mid-market and continue done momentum we success we businesses. small for that with are of

me hand over let it Sandeep. Now to

Sandeep Aujla

delivered We quarter Sasan. across Thanks, the a strong fiscal of XXXX first company.

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

reflect we a related of the in restructuring a results million $X a million GAAP on and loss the recognized private announced Our company net changes in to organizational $XX investment. charge quarter July,

Now turning business to Global Solutions starting segments, with Group. Business the the

made of cash of our Group X-point nature driven helps the and desktop acceleration Global we The is online Business last changes to revenue ecosystem the during reflecting customers a QX. highlighted momentum Our our and grew the in quarter. XX% desktop any as flow growth a in by XXXX theres from offset ecosystem small growth improve all-in power ecosystem economic decline and grow end we revenue of year-over-year to X% was end. platform business and run partially mission-critical early revenue a and business XX%, fiscal This customers Solutions the offerings mid-market grow demonstrating by in saw QX, offering environment. in look platform business their in

and grew Online driven QuickBooks higher shift. customer effective by QX, mix in prices growth, accounting revenue XX%

in drive by motions go-to-market through driven which payments, We continue continue innovations, Payroll which grew money our to Pay, to to include and services both in PC disrupting focus XX% prioritize revenue we mid-market, offerings, the Bill product growth. Online expect and on our capital and QX,

growth in in Within offerings. quarter increase revenue growth. prices effective was money, higher reflects revenue, effective customer online was customer a which in higher payment driven higher-end Within the growth, and QuickBooks growth, QX volume the payments Capital volume total an customer and payroll, higher shift quarter Total prices towards by and in per payment reflects mix growth revenue XX%. growth

Mailchimp, paid prices driven higher customer growth a quarter was effective revenue the Within and growth. in the by

from are We in serving customers. Mailchimp, seeing good but progress are churn mid-market customers seeing higher smaller

to making improve product driving use and by this addressing adoption first-time are and customer enhancements and future discoverability retention. We

product few While to we are the deliver a about good scale. work outcomes expecting we quarters feel prioritizing, to take it at we are improved

next services one We we in customers that executing confident grow the of business an of their all year. In quarter, of and of enabling and on Mailchimp power beginning remain in group the we platform changes business price end-to-end our lapping both vision QX and to our integrates in addition, last place. run are made are

other business a as are our in Mailchimp includes ecosystem international with XX% and basis, established our we platform a leading total currency which Third, strategy, continue to connected QX. localized grew on On in all product online constant execute revenue in with executing we markets leading lineup. markets, and international

as As company. Day, we we shared Investor at win platform the a

growth ecosystem are $XXX online of small of us more addressable the mid-market with This progress both an represents market with which half roughly mid-market. revenue over businesses we billion, and complex making of is Our businesses serving reflects needs.

and strong progress ecosystem and Intuit for reflects revenue rest In Suite. grew Advanced revenue a in QX, for customers the Enterprise ecosystem This XX%, revenue offerings. the mid-market our base Online ecosystem including growth with small serving QBO Online of XX%. our XX% approximately online business grew

We our are serving businesses. continuing while focus to progress small on in excited about customers mid-market

expect approximately to XX% online continue in ecosystem total revenue XXXX. fiscal we in ahead, to Looking grow

Turning Desktop. to

climbed Enterprise the teens. Desktop During ecosystem including XX%, revenue, QuickBooks QX, low revenue Desktop in declined which

the complete changes desktop to quarter, to more subscription last fiscal to QX product pain described made revenue a Quickbooks early recurring we Desktop ecosystem in As in its frequent reflects transition model the offering updates. XXXX company

We ecosystem ecosystem to continue fiscal expect in growth desktop in revenue overall, single low grow expect return the to to desktop QX. digits revenue in XXXX. we And to

Turning Consumer to our platform.

Consumer receipt outcome seen a and that saw X accelerated each QX, have personal loans Credit points. accounted financial cards the tax QX customers round, quarter accounted and credit refund. On of take Our Insurance decisions, steps of in for with we reflects auto the continuing insurance XX% fiscal credit helping in platform smart make Karma money accounted the Karma. reflecting achieve health growth. XXXX. product Building spend to year X points XXXX, Credit Auto and for momentum to improve in best strength XX insurance revenue basis, in for during started personal strength loans, their we their growth partners points Starting is accelerated of tax on fiscal cards.

to Prime are strategy as accelerate about we We across for set consumer the and our insurance. Karma money Credit drive and excited grow our benefits opportunity platform ahead engagement,

year-round Our team products platform monetization and integration X and drive to TurboTax Care vision delivers create customers benefits for Credit consumer for Intuit. is of with that

are year. by excited this We significant our progress

ago filing Moving included tax revenue deadline filers. groups. and most the to as the extended X% Group for protect period declined that Consumer year California Consumer a we lapped

price. best on Our and the season is this speed focus ease at

Our disrupt confidence season and look by year-end platform the our and the consumer extension category one to results our monetization. in DIY Tax, financial we and strategies create we win sister strategy further is leading the to bolster We tax benefits, experiences in year, ahead. this new launched saw delivering engagement during

the $XX in Turning was filers. we period momentum our for X% to that Revenue California million as included year Product opportunities the the filing am QX, In deadline lapped Group. summary, a pleased tax I down with most fiscal this and ahead. ago year extended early

and allocation. sheet our capital to balance Shifting

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

on guidance. to Moving

charge We reflects guidance. GAAP are to to XX%. XX% income July. restructuring expected of reaffirming XX% GAAP non-GAAP XX%. to per This growth share our diluted income reorganization in growth million diluted XX% the of of company and to XX%, announced we XX% to revenue guidance fiscal growth XX%. non-GAAP We XXXX of share earnings related $XX total includes operating per growth XX% to XX% growth operating an of GAAP

XXXX of our largely related revenue the year for revenue to single-digit retail to and in This total does not offering. second impact guidance Our consumer revenue to revenue or desktop channels quarter This due XXXX. for overall our XX% timing some promotional includes expectations expectation impacts only decline fiscal in XX%. changes includes fiscal units group company growth of

share of share earnings of $X.XX non-GAAP per per to earnings $X.XX $X.XX. GAAP and to $X.XX

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

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

Sasan Goodarzi

our growing We than growth double-digit strategy, revenue. long-term Excellent. remain faster including revenue income Thank you, operating in and Sandeep. confident growth

We durable win of penetration we're of runway than we And have and strategic advantage and depth TAM, our $XXX a in a AI given the of less billion observing. the data us. proof have massive with points capabilities with ahead X% our

questions. Let's to now up open it your

Operator

question Bank. Zelnick We'll with Instructions] our first Deutsche take from [Operator Brad

Brad Zelnick

Congrats on a year. start the to strong

How the about Sandeep, GBS through mix, source think, progression be ecosystem were starting your full what get in what to online the about will And look year think I XX% should with with was some year barely we upside? modeling. line As of just the might growth, in that drivers a we us guidance?

Sandeep Aujla

thanks for question. your Brad,

a start in Solutions Global We group. Business are off to the great

[ strong saw We all -- it the low ecosystem X.X% QX. that from the growth, look we good engagement in You things price attrition the after of XX% acceleration, mentioned our is and a our ] a sorry, drove ahead, And revenue it's which is that's continued customer same attrition as retention, platform. that good changes.

improvements I good and We driving approximately are XX% seeing mix grew we're shift. our for the the shared that the is of good adoption the of services. mid-market should seeing And continue and remainder that year.

reinforces we those that So reaffirmed things confidence confident in today. in the we all what and feel the guidance are of

Brad Zelnick

the strategy up expense very look helpful. a has about that which, I by oral the It's ahead of front even a just of And the the they're think I out follow-up. think Maybe the earlier filers marketing quarter, If spend TurboTax full ads, expected should season, it great. way, you at I over marketing in think How was quick year we and million and this the in entertainment year-on-year. $XX we see

Sandeep Aujla

very which those the use when Brad, campaigns they're campaigns got as we shared evaluate who previously, traffic actually more to taxes the With prior assisted and marketing with -- And we their the do make drove we are we this system earlier by marketing on know consumer consumer with that the that we to for is strategy group the assisted saw we call and consideration going started consideration strong customers the filing many we lift year tax following assisted we the method to what that that, will me, and year. who our disrupt as us that a in is one strong done before our and going segments through category. shared their market even of in targeted for is after our start. decision to continue things category. group well year January, traditionally,

for belief So the that full a that, spend, -- reinforced ROI year. bolsters conference guidance the good our good the and was that

You be should but season, group up so more not I continue expect throughout marketing our us consumer entire that. optimize slightly, than the spend and to would expect to to tax budget

Operator

Keith our next from Morgan take with question Weiss We'll Stanley.

Keith Weiss

to good a on year. start Congratulations the

the Sorry recall from previously going hearing to not harp churn on as the that a part don't that's on well. guys. equation you end of of I mentioned on the But Mailchimp, call, the the lower base that at you

logic, that that flip phenomenon with sort bundled solution? out It is to where that your front the end together. of and bundle of sort office in are bit the about getting the me the able being back seems new driving in Where solution in on industrial synergies can are customers equation, but you you results talk both And a you're side a we So the offer we like the the had the us seeing in a market? good to and like little sort of to integrated market marketplace? teasing the and of

Sasan Goodarzi

for thanks your Keith, question.

Let it. me take

when Intuit foremost, Enterprise to look our at is and and available -- the that actually Suite part customers you suite First of today.

to experience deeper And product. the integration all really across where I of create be integrated context of that for in from our several depth experiences. done should a marketplace quarters that services, capabilities would importantly, end-to-end and AI much us data the there's say, about in now. the in more experience your We and the However, the of expectation deeply of think allows with all our

as several So it about think quarters.

of in customers having are out sort final of tested. get and We stages

question. So one your that's element of

end for we on customers. an called of reason incredibly out innovation set platform, because your The particularly mid-market second element the the churn low had accelerated the of we've is is question on

capabilities import, analytics it very more made we've has than driving countries. even segmentation, been and It usability SMS in very, small customers be done audience mid-market just tougher powerful customers, which should the that discovery and for in the And mid-market. as for customers. actually So

And and larger customers be that can get just are so a And and so first-time on -- the thought enjoying. wanted of smart focused use that really mid-market clear out. that's customers our just some we benefit first-time that these we I innovations to it team these call benefit have of

Keith Weiss

idiosyncratic just weakness -- clear, the Got of an it. smaller marketing-focused market from with customers in issue commentary and macro of broader innovation is or and more is be see about to so that sometimes you that not more solutions not And it's a more macro? sort

Sasan Goodarzi

It is It's on. driven larger the of used not for we're much think what first all to is macro. which customers. we not working the at by all customers the about I innovation But entirely that it frankly, opportunity is smaller have an exactly our But better, time macro. make benefiting is

Operator

take Siti with Will from next Mizuho. question our Panigrahi

Sitikantha Panigrahi

to the the start Congratulations then that year. on I X Good into to acceleration. QBO online want point the a good online and account. ecosystem see dig to

So go-to-market sales started you team mid-market hiring. this guys

in that Is that, contributing see team And from are for of like wondering drove that you about this you for quarter? we quarter where the it the now? contribution think a And there? ramp? So seeing year for Or have terms and it will ramp how should if the so, start to started higher-end to subsequent that acceleration? take contribution we should -- something

Sasan Goodarzi

for your question. Siti, you thank Yes,

off. us kick me Let

comes XX% call at QBO on reflect and suite. at And First the not Intuit Advance overall back to our services growth, of growth. had ecosystem talked services, our XX% you when course, it it, When explicitly mid-market, our as of the all, enterprise Advanced online revenue we will to you the because XX% go-to-market of benefit and with of and earlier, wanted in continue what that, look that and out capabilities Sandeep look XX% benefit, build will you but if it out all it. platform that with we we enterprise about

we it's contribution that are the that to development added frankly, of over also contributing outside folks are actually where now But geared is seeing we selling. investments benefit And XXX to today. managers, all towards material. We've are we've so account very and the are biggest that the made come. And business

so this, quarters acceleration ecosystem of were to saw to XX% punchline And and that the came mid-market, XX% from growth retention, growth, on from to to this that Enterprise last which we better a QBO better view our higher And in the from more it Suite. quarter put Advanced It is ARPC, if come. quarter revenue I therefore, mix. It with online from both Intuit came came you services.

we're clicking that communicated to on the we key sort expect we've and strategically all you all, So that to cylinders of

Sitikantha Panigrahi

But you online, quick chunk follow-up quarter Consumer. for your I guys And from understand that. driving of this is promotion what's guidance push comes a I about? big understand always TurboTax, the Desktop consumer to to QX understand the that to but that was wanted promotion? January like what

Sasan Goodarzi

The January And again, better And is our that first really our their we TurboTax to typically, the time revenue year And deliver we've TurboTax consumers that is -- January. much this beyond QX. shifted January. on lined that from with is the positions deliver of factor It's couple the those behaviors behaviors, buying this desktop. really later promotional aligned in primary the in a of for up December desktop Yes. move, middle factors. and now us goes patterns buying because for that frame of more is of retail all, that What of and because buy we've do done frame starts really time consumers, product. buying what so partners promotions desktop we've would into

one biggest is what Our also, And then the just is it, just also quarters. is play shifted of into factors we described. estimate course, but full of year IRS as the timing I between and the

we never lot we about of confident because we've launched changes, and have results than to about We our based our and been which while and our this bullish what the launched. due on this frankly, of so very of did more particularly bullish time we season And year articulated. feel the saw we that experiences for that we lineup and the And year coming a confident year. everything in tested Sandeep that a we're the

Operator

We'll question from take Scott Oppenheimer. our from Schneeberger next

Scott Schneeberger

for each ever than it a you, since think bit they're it good. Sasan, up together. that strategy was tied you just little the are you're about to and going curious question had -- And campaign if a before success of I on it Brad seeing and when had that on little we of early But NAPP. you you could a I marketing sought kind due you give early early say little change One bit up could brought state there how or union of you is, that just the bit us you if to elaborate market, what that. that a said more talked

then for revenue upcoming quarter, the you, next EPS that quarter. the is growth guided We're And down in for guide year-over-year. seeing Sandeep, but the

So it if a just could more. clarify you little bit

little talk I through that big a if bit. but think could you've given just you components, us us the

Sasan Goodarzi

Thank Yes. question. for you the Sure, Scott.

tax the I'll and then over take Sandeep. me Let it to element turn

the you price three, much better that in specifically is is from putting that disrupt it early engagement would And lot how together positive. more a focus marketing when price. were means. that and the engage all, was And what really we it's else that there the I factor, price campaign And that season. Really, them. taxes have speed of new learnings raised does things way. and drove we're by what and what to for tax very raise looks is timing one was matter taxes of about the we and does decisions of one couple the engage. vision that's segment, terms a a about what in just was really the significant of And -- do about insights like experience, just tell way preseason. biggest First that clarity and the was the And in around it heads? And It for ran there that to we're the market, question raised it really a element for. positive One, customers in campaign a a on really sort now we will It thought of their best heads. Two, all price. focus And and putting looking learned, somebody new overwhelmingly assisted of are we've answer demonstrating for really we will were we results had a you the people season about campaign things focus together what than was better learned of and that we the experience, better way, your informs the campaign.

a that continue the of have on platform lot that XX,XXX bad are then not What old we with. of doesn't we depict the is that the expert Because and deliver are there experts the end great thing an and accountants of partner of that to it that all ensure the of The do that learned ensure we And is on to at or the not us is platform. our that way a really the way, the we our good speed experience that that a the it them very opportunity we to experts price expert. learned the the across day, with but experience. -- experience, old on it are to The partner come accountants is experts in a have at critical we doesn't focus our experience.

will end that So and developing. that's I that the incorporating campaign as we line it the that about we're what worked we're at really had just well, are how that's it. with punch look the learning we excited we've super

would the And the administration the was on they know address to use could a to it. just I address not the asked whether minds of floor. that pretax software. new that over create of folks Sandeep, opportunity Before new tax something and wanted I about tax wanted I to this software or since And just this opportunistically, if on touch have some turn I and week is it the around that while few you I news just or I to

I look priorities but a aggressive and the One and budget and being would the coming in think and that new coming foremost, the of personally the will regulatory government. reduction. is to to is with environment what ministration couple the am all businesses. streamlined I really also First at you new in. This new seen Two, of with I key news, consumers the environment the And have leaders reduce operations the administration new workforce ultimately really and cuts leaders you benefit and of to regulatory share really I personally is engaged matters learned that that very on in.

reduce it's is are simplify least, last actually because those those and/or And all help I'm an priorities can as actually if whether to opportunity but a about that not company. theft priorities we code. Third, tax loans. there's fraud, identity the from excited then

of on in would leaders coming the new you adding of already I that levels last the to industry. investment the sort thing the in is to something private bureaucracy, tell mind that adding is the that of exists

as already to industry stance is, it comes when Americans. exists. available it software, our tax has know, free all free all to Private So you software

exist add it. to new folks of the perspective the that the and important, Our private in where last most proxy. is thing to want already investments my an to serves industry do what's And area terms offerings to add learning that in already and

impact available With have market It not all offerings to And the a consumers. is category. the become tomorrow, X new pretax for to do-it-yourself commodity market. because free that available the all said, it's an the structure free in of does if is

on touch on while turn So I Sandeep, EPS. have want opportunistically the that floor, I'll to it to over you I just

Sandeep Aujla

the AI question they is wasn't QX, internally to I guidance we how we are they're in. look this leveraging Group, as . Credit would continue address for thing see we and Sure. I partners work Scott, about really And the optimize year. on that a as solid were us we're But specifically. have with and X%. talked the about how we're marketing now year, November spend it our the a year. company, opportunity is the And feel -- year, to our on negative started full we This year, position in expand QX. that continue and me XX%, all which in for This lean frame. margin. one QX December, we time our relates to the they're continuation keep Historically, continuing in a past year. for let mind starting to very on through things January always tremendous is In EPS, different our strategy and seeing Last on continuing we opportunities. Karma now as to your Consumer

and our our there. marketing payback there So leaning we periods strong seeing and exceptionally and are go-to-market ROIs also into campaigns

lastly, Global we Group, the that the have XXX on we Solutions And approximately touched in in Business people the mid-market.

in now QX. run heading rate QX that's So into our from

and to were optimizing there Of that payback we group because Solutions on course, even through that opposed go in leaned us a to come as by when other periods quarters earlier, see we get our Business market to the team Global spend earlier and January more only into little year last towards campaigns in thing is, the the season. But to palatable busy year, year, to keep all into ROI the are us as we'll opportunities longer X last market. to scale us. campaigns for that ROI better the already mind This took decided

So those again, -- should takeaway a are be. key

continue is path of with lots in company. confidence this and to margin to have our our a line -- of full as we All expansion in year strategy

Operator

Lenschow take We'll next our Raimo with question Barclays. from

Raimo Lenschow

well question from My on payment. me is Clarity as Susan. the

it volumes, you I and obviously, payment you puts if you the little Because little at about correctly, the was bit there? payment look a the revamped Can bit. a takes platform. you heard decelerated talk If XX%,

of how forward like well, do context? growth that about And think have area in going we number that healthy so as to an should be that

Sasan Goodarzi

small Yes. for storms we to in around was actually impacted be money a mid-market. of quarter. services businesses Thank saw start Coast, into impact you the element is in businesses. we're things couple factors an it We with of for say. the and One, a question. come as the being bullish, the would lot the payments of actually back. service-based East and it couple not There One saw XX% but of that also small played the A continues one our innovation area momentum penetrate around only with particularly we very where to our I first

quarter. So is fell element. same this the versus another quarter element that's last days one that number And of also into just year. a

in look factors it, to, played we expect as So those it ahead. into we and essence, accelerate

Raimo Lenschow

other And like then of question the platform. of kind said you Perfect. Okay. an AI now I was, had as Sasan, kind earlier, more you're

big the business you the for next to kind If out. think kind it keep how about into as think any weaving the spell do et weave there for expect I'm about product? how of to you in that tax you we your can the asking product evolution think the you the But well, longer -- about not you funnel, is iteration Is like how customer that into there like of cetera. QBO do changes of or that season

Sasan Goodarzi

Yes. Great question.

all, for strategy you. of you. is done our Marketing is just Quote experiences. company start for as First cash with you context is I'll to of done briefly a entire to for the create done

done are books for Your you.

done Your accounting is for you.

are our the investments right strategy taxes to in path you premise around products businesses the essence AI AI-powered the are And with and always small to serve and been of the done whole consumer the We Your That's for to that. fundamental connecting our data for has customers. expert. of towards an And you mid-market are consumers, as that always done control, for customer see financial you. and you.

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them the background accounting in do and match and the will for We categorize everything for them.

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deal. huge a That's

experiences the this across is create for done you and tax, ahead, will experience all can to platform Mailchimp what your look based to year years, far that streamline at the several of refund. on easy. we've rights investments the see goal our services. say QuickBooks and You you I across leveraging streamline it how and how data a we a think and would and the superior as we the answer leverage last will getting imagine, made around dramatically entire is To make over more of It data all question by we I

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to the revamped be the is all year. experts data able taxes of and get than that done efficient. and your an experiences best season effective at our less hour AI going and this the will to which They're result of price, far in going we So be to investments all in of more are have

Operator

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

Taylor McGinnis

guidance guys look the looks higher the than half, years. have I at in second for you if it operating done So past implied what margin

we half this compared of So of the seeing to drive areas? last, and on some to expansion the drivers about that Maybe the go-to-market is some to in to scaling of investments talk in compared the expenses that about you're the other past stronger growth should continued can think half. despite the year messaging in loading more second front-end seasonality years, just need you the second

Sandeep Aujla

on Sure. the shared, head our Taylor, we the investments both early as so assisted I came that drove site. lifters started on, year of with prior that to that a consumer side, lot

are So we that that the in season. The dividends building force we tax as is that mid-market. get into pay something sales will

by it, XXX component an efficiency imagine sales week. to building force those training and by can more week to week people, You effective There's a -- that it. hiring but there's gets component more

So that more dividends half? get back drive into as helps the you

time, a as employees or bring ramp onboard that for spend then the from their And spend a they to take as rails. And the the volumes drive the looked people platform and services. optimizing team as consideration, while is long know, you services Global at Business on having the will followed drive add company Group, to payment their up and Solutions then on into the customers they

So to us is and for to full the is trajectory the which year, giving confidence strategy, it spend the our all back into that concerned that's optimize ROI with the maximize half. strengthen continues what's the

Operator

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

Michael Turrin

other in just well. of was to of Sasan, how you whether just chance could the the you for the get of to those monetization customers? Assist. value We've economic as level to to your give more observing through set costs it's a hoping QuickBooks I'm capturing announcements you about tools you're or going us go thinking as I hands start those, or you're back benefits seen

Sasan Goodarzi

just you're what Assist we that Michael, week. the announced to? you And to Intuit are Is that referring this referring

Michael Turrin

yes. am, I

Sasan Goodarzi

it. absolutely. Got Yes,

could say, be adoption spars completely of retention, say and -- improved better Sandeep months if new What and ago SKUs. all shared, ourselves before thing and new creates they available priced what having I are you, we there's you think XX outcomes, conversion, this lead work at in also services. will Investor do in better be creates there I the for we really this experiences but of I that far to new stand-alone generally time, alpha think also for the offering that improved was biggest Day, our improved customer X made of to and we So create back beta we've heart experiences about And services. to we they could is higher X proven really, customers Those Intuit over and and outcome, retention I a adoption so it growth, will for around we is hands services. it to would had of lead Assist, big SKUs would believe, learned, which adoption your perspective could prospects, with creating the are growth. million It believe, customer done -- that it

drives like So an can about of note a file illustrative week, bill is or which launched and handwritten an a think this growth, just photo you create if an and pay estimate, payments example. an a that e-mail, invoice a take you all create we bill, what and

as we've that coming customer been growth we're now see what in that services So what and the sort expect outcome as is look season and and beta excited we've learned TurboTax, in why as particularly we new or we're adoption GA this the those things and are we of in alpha so we ahead.

Michael Turrin

Karma you're If quarter? back. the this the guiding that may help Based is help just the set rest you're fiscal what to the given you're up of run much now be level Great. maybe what on you there? experience how what below put today sits ask year just incorporated And bounce rate seeing guide just Credit product-specific versus way there just for year into I versus the on any of can something split is seeing, macro

Sasan Goodarzi

I Yes. I to if it's attribute I'll of Absolutely. now. would -- blend a XX-XX it, both, say had Michael,

partners right Karma the driving quite QX segment, Assist Credit as and last they And more strong But it's saw the leaning they team, product the the driving we the team and at go-to-market insurance side, into stable team, added to to across on the rate starting On the testing as has into personal helps, lean engagement platform. and segments loan lending also to try as having such they more a been which go invested experiences into the as environment absolutely invest year. platform.

blend I would at probably it's a about I say would XX-XX mix. So and blend, a

Operator

from Zukin question next with Research. our take Alex We'll Wolfe

Aleksandr Zukin

Congrats results. the on

from topic and get How business kind your in of a environment up? assist few monetization monetization either strongly of show both the do see you do the an AI opportunity for of or strategy when -- recovery? very seeing the on should starting Gentech change and around kind So beginnings now utilization And a are fast it right it change Does the next I start the wanted think we you the does base, impacts quarters? to in you're standpoint, a to perspective, that your magnitude? what when developing the just seeing believe expect of with to your on over SMB customer you demand from notion take

Sasan Goodarzi

take Alex, things. Yes. question. stable the say would the I a you, Great. first environment. a Thank one. it's I'll for couple of One,

will burden regulatory rates, we come, better things baked These of on have And a some which not jobs, is none is real a interest guidance believe particularly an to that that to the things ahead just say. in environment. but important businesses. assuming, see into belief, with which that just we making future Our of look is we're and improved as our I XXXX, environment mentioned we earlier around

I would So And we believe be better. experiencing. the future that are end we will by saying growth just the stable, really,

of guidance that business because of our you our that platform and innovation power franchise business spend business our we're platform and apps, expect a revenue platform. the QX year, they XX% actually at and their their where the overall they digitizing saving money. that in grow the how is delivered that's don't they're that the to performing, would with If digitizing in and They on our multiple their the understand and is and customers of one fund to place rest XX% money entire business and because really our able rather XX% don't year of the than we for bunch then growth online of all look we

are that to experiencing things And all is our growth think positively reporting that we're our that as impactful that results. so starts -- we will you're that believe And innovation. demand be because you we improving, of our

your the will do that customers generally will internally we of is question, you thesis we're look Intuit The is all Assist have into at element penetration for customers, customers proven they we we franchise. made drive second available years And love Enterprise The thing particularly experience. the Intuit work over new just we that more launched from Suite, the more the the it and can we biggest core the and as more to listen, that drive the if learning of services. our

these Our and them agents. the AI insights them growth we get doing these sales contributors Helping the they of do a them, into to into of do our are -- accelerating agents to their CFO, Those going the year. our a happen baked question, midsized are that believe that work growth. the haven't agents your of AI course, can believe the may of any to And future. work are performance AI understand is for officer take. And of our And of provide of essence CMO, things that to ultimately our into desire we of the businesses. actions them should helping enable all business. that We be of

Aleksandr Zukin

Sandeep. Very helpful. And for a follow-up then maybe just

timing go-to-market that a bit magnitude see So just the the spend revenue shifting associated with perspective. hiring that you've as consensus. to lighter earnings some that point? is it from to of that effectively timing Is typically the incremental to -- first for of newer more to that of Taylor's simple some Is you earnings than have the your to initiatives? maybe say your a -- it And half the is being And see mostly just when we typically the were basically smaller guide that slightly outperformance beat for

Sandeep Aujla

right. Alex, exactly We sometimes that's things. always have

out of QX, If have Karma Credit saw into just given we seeing to partners. this the would the items year, move than in. opportunities quarter We you we remember in we areas some were had as items earlier such behavior some last we had year move the investments from

we spend So a for flexibility us optimize bit that we the uplift, revenue into say, to And little QX. give to more again, lean when all year. saw

Operator

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

Brad Reback

Sandeep, in continue the Or we over expect to here of the year? services, for growth the rest quarter, in money of shift? half that next should online represented well will the the

Sandeep Aujla

the capital. strategy, bill been pointed of course, And Brad, And a expect what a each has to course, ecosystem that key as is The and which XX% subsegment, bullish scale would point confidence. to we in that is don't, growth money to going as year. continue confident our and key -- to you we in I confidence very and utmost I would throughout for you includes, that QX, out, the pay payments, back the portfolio year of strong business. but all-in contributor to in be our we guide continue money momentum, by feel the is confidence our contributor

Brad Reback

one just follow-up. And it. Got

Mailchimp Given is your Sasan's more recovery comments on Mail on overall than comment would this for a Chimp feel in year? and right needed next driver XX%, there the like year. for it the confidence the in

Sandeep Aujla

think as team want to Mailchimp we would experience. the I a quarter first-time nail several the the user about really journey,

internally. -- behavior use We go customer have what related internal and we KPI all to all to around first FTU,

in I the XX%. So yes, focus we banking to are shared that's something patient that's something for on the not and are with we that customer conference, one team that being the experience, on

Operator

question next our Jefferies. take Thill We'll with Brent from

Brent Thill

comment business could among lower So heavier in of at, just is that a the mid-market, you us on different dynamics if in -- I fear Sasan, markers is terms think plays go on couple give to kind update earlier the of require of one I'm a that but you you're investors deals just in of where can there's some long-term remarks, mentioned this how curious a market? and much going you a if an lift just to mile out? the of margin you more

Sasan Goodarzi

you Brent, for Yes, thank your question.

about answer we the you would tell years ARPC. think, we're talking lucrative, it's very I the of had QBO experts. similar is a you concerns high category lot all are there services at is say the all that Enterprise how would actually all ago answer would now, In of fact, it's data look have X when we you that parallels. investors very the AI we our And I several When fueled years. do assisted I the Advanced essence suite, because talked of It services. reverse. platform it's the them very disrupting give about the And a over X a by our that gave investments, of that high The given Intuit our of margin, platform or to, and we and built investments of and scale our and of lot last I'll

data thing sales and only folks of are effectiveness because the the that sort at have of and look to are on you AI when adding the a in the therefore, that that side really But significant. hundred is the And other capture of efficiency couple we opportunity. we

this existing It's Luca. the customers massive. high so only opportunity very service actually quite but It's ARPC. is upgrading And customers, is not new

you when with base. when coupled driven lucrative at a So all look actually you ARPC, have, higher fact the services than it's we platform far that that by already just the GBO look more our at it's

So we continue to growth. one, actually play accelerate our expected role. Number a to dual to

online is Sandeep to with margin. higher services. along Advance time about heard the talk which benefit, revenue Suite growing has you That over As XX%, and a was second The actually are Enterprise growth and overall XX% contribution earlier. even

than was shared articulated, we that of the very of investor We the here. same reverse just to out the the own. margin on play actually ago, the will couple higher actually its that concern TurboTax it's of So variable when in you similar our days a TurboTax believe

Operator

take our from Murphy Mark We'll question JPMorgan. with next

Mark Murphy

to ARPC it's mentioned $XX,XXX early I the response you Sasan, QuickBooks Enterprise seeing, can you're you mentioned showing I how speak because On think, couple earlier if wins the comment wondering can functionality consolidated the and customer suite, the relates I'm locations to a is today. some multiple And on and robustness. had clearly large entities of on that reporting? call just to the if you segment surprisingly advanced the of, response

Sasan Goodarzi

these as the Mark, large CFOs to I'm question want pleasure a I And of object our frequently This businesses, downplay a -- businesses. the a a you businesses is the is Yes, business. firms very accounts way or will I actually would day of couple to and I the that the the These but recently in Intuit listen, of of accounting opportunity what money when period I they don't is these say, is game I to the businesses, not your Connect. and answer words lot at the to had And life my and them. about spoke large engage changer. use here. owners engage

reasons. is actually I X, really they see performing. how One, would For business say, their significant can

day. business us from aside quite So now performing they a is minute to from every it of knowing go that their it recommendations how their actually insights trying inform and days performing and puts Having understand significant. but consolidate their is to decisions business to how is

whether in in The of money form other point go movement, across of when it's every multiple all digitization a happens and your whether is you it's is it's dashboard that payroll is pay, your amount everything payments, day from complete having and bill using place, one the all solutions, apps game of whether that changer.

them far that get to an serve, from quickly because can yet hear suite. is them about actually things see we serve that dying thing more into biggest enterprise how and don't new they're we they the to we would more So like from on sectors customers are in that

way the I describe that's So reaction. of would the sort

with of thing that I'll accountants The sort the to sure for serve we and be us to making We're we're good end not that fuel excited to for accountants other for only working capabilities and our about them, able success is really monetization model that together. together the both. on, of just all good this, provide but market

Operator

today. will time our I remarks. program have to that speakers closing back for we any is for additional the all And questions the turn

Sasan Goodarzi

Be awesome. everybody, for Thank you right. your and Bye, thank Thank questions. safe, we'll you all everybody. time. soon. your All Well, see you you. Listen, for

Operator

may you you program. Goodbye. now and does Thank your for conclude participation, today's This disconnect.

Intuit (INTU) 21 Nov 242025 Q1 Earnings call transcript