INTU - Earnings call transcript Q2 2025

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Operator

[Audio Gap] [Operator Instructions] With that, I will now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations. Ms. Watkins?

Kim Watkins

Thanks, Angela. Good afternoon, and welcome to Intuit's Second Quarter Fiscal 2025 Conference Call. CEO, and Intuit's Aujla. CFO, with here Sasan our Goodarzi; Sandeep I'm

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

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

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

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

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

Sasan Goodarzi

Thanks, QX of We start results to tax. and great strong for of very delivered joining us in today. a Great. to revenue and you we're thanks in XX%, off growth with all Kim,

this expert for momentum we strong have powering global consumers AI-driven as We our platform and execute businesses. year prosperity strategy,

We year. are and and growth year confident this in delivering expanding we're full margin double-digit revenue guidance. reiterating our

We're tax our mid-market. revolutionizing AI-powered investments benefit with expertise. delivering by AI deliver and with strong our areas: winning to on experiences speed to I X in focus with and Today, will done-for-you experiences progress human data expertise, done-for-you platform making across

AI-powered than last of Intuit experts, fueling or work. digitizing to for connecting and their and workflows experts to complete and success. combination for end-to-end everything is human one the tasks functions, mile automating on human is of This the AI more our AI-powered focus of customers customers XX,XXX Assist, the all Our entire

AI workflows done-for-you the share flow time demonstrate in platform, for background. solutions Capital. one doing agents. our invoices credit to cash delivers like or the in On automating spots our handwritten real while Assist turns of line notes potential QuickBooks It documents bills e-mails, me experiences, through a electronic accounting and It suggest estimates, applying Intuit using and business Let personalized shortages automatically example progress. into

these higher on With a we're invoices seeing versus that AI-generated conversion don't. customers XX% rate invoice capabilities, use overdue payment those when reminders

We're experts at of connecting their of our also higher and with X.Xx up QX with engagement November. QBO attach rest more done-for-you Repeat than ecosystem continues to XX% AI-powered QuickBooks invoicing experience increased to through base. need in point the our rate grow customers Live, XX-point since the than has

As at to encouraged the these we by customers. converting fueling platform and we're as Assist's such working new scale, adoption payments scale experiences, our is of This Intuit continue and customers of success Live. QuickBooks offerings

We're tax. a to start. off Turning great to

Our platform best best delivering the experience, strategy speed as and win is to money for by customers. an price AI-driven the expert

progress have with experiences. seamless our win one and data customer DIY tax and across which significant We've by categories. in fueled investments, platform and we assisted the scale Intuit done-for-you delivering data, a with Karma, Credit to As consumer TurboTax made AI incredible Assist is experience services

is helping is customers offering them, to transformed for best starts. guide experience, the have the which We shopping that higher driving

levels quickly with includes an covering partners, For taxes easy the highly AI-driven, up tax of product with XXX our XX% from do their common application personalize to data most now own intelligent data we're complete those year. confidence. choose of to over delivering documents, navigation, And in last of that XX% taxes, customers from their customers' personalized higher This more can experience.

a interaction the we personalized taxes best platform AI-powered completes on first the hours, automatically seconds and expert our their a the do the human immediately product assistance experience in and The match the to experience on share their uploading us service choose AI-driven within them the customer's season XX best expert expert speed to qualifications all scale, and the the is while delivering customers for When X their in price. them, with providing making Wow! while data, recommendation offering delight the less opportunity proactive customers' and that experience. an Live than money at of at go the date, home. return has an the score or This of for customers comfort at is and TurboTax Intuit. access the of to money one Full highest unmatched resonating the experts'

AI with human and done-for-you our control needed and data engaging to where the tower, is scale customers. experiences automating the our tasks With for experts capabilities, Intuit Assist and of workflows deliver

to our shift durable go-to-market Let's approach.

have on personalized campaigns overall and speed We've focused money and our our marketing We strengthened lineup experience, to price. capabilities. reinvented monetization AI-driven

in experience, access great in beat is and such local and We driven price the to experts. marketing in In AI-powered simple search those and across with DIY with looking near for This driven full-service in significant complex monetization our a early is and strong. are money the season in assisted seeing that funnel early pro your for improvements improvement speed by benefits traction by started them. the early our campaign, the fall refund category, the strong human as customers

and when historically designated XX% our assisted convert the market us to local access areas to estimate that more found of We given Xx approximately XXX-plus a local will filers option. likely experts that we filers, nationwide in give are

X% one to the seeing to we're and seamless Credit strong in are and returns seeing an higher TurboTax X In strong on more We're in more seamless season complex season. average last XX% Karma increase platform of per platform the tax. Xx power the pleased TurboTax consumer also progresses given strong Karma. filer. across as across We're to start the We growth experiences simple season overall a off log and with revenue summary, availability of by starts driven this from than Credit click in also

serving business we're $XX an Let the TAM. represents which to mid-market me the now turn platform customers making billion progress and

focused ecosystem Interbit our of winning success to QBO AI-driven are an on We expert and with Advanced, the suite services. customers fuel as platform of Intuit

investments product go-to-market Our progress. are accelerated and fueling

the we platform, ARPC penetration respectively, points payments delivering are QBO points, the and our of services the by of and With exceeding payroll X end with strong at XX ecosystem Advanced core across broader quarter. QBO

and productivity With is win XX% in ecosystem, Intuit X IES over the the sales contracts up momentum across Enterprise Xx particularly with with our months. efficiency signed includes million more Suite, which are the where versus those with larger customers. over and seeing week-to-week. growing we are rates our This versus we number funnel $XX November. up of businesses smaller accountants resonating than are last nearly of to in improve, sales higher revenue, Xx trending continues January,

the them deeper of our price total the to time valuable of cost of providing are We customers' and platform winning productivity platform, ownership. and their With of by boost adoption, to benefits ease insights able saving IES, because fuel we're across growth.

reporting, across and IES to services a fueling optimize We are recently entities its operations, fuel seeing IT and sales all and marketing by firm integral share insights management with to chose with that services, optimize view and Intuitive insurance. mid-market X product dimensional engagement marketing growth. one other including customer Mailchimp, by marketing legal solutions the is using multiple of firm The type. extending AI The highlight in IES I'll over with leveraging with and consulting, to of the from part industries, out tell financial more traction success sales us with them X teams customers customer finance services, our Mailchimp mix enable product competing FS, they signed and an financial obsessed get excitement that targeted construction, We examples place. sales to their profitability are which insights, the most growth.

technology. with a X to and purchasing progress well to figures a fuel with are and decision. consumers experiences the migrated momentum, which large annually in and end-to-end across solutions This construction, that ease of was using contracting, across to success accounting and competitive real many partnering and deal we to of their They and government disruptive XX some accountants. signed estate also up industries, win with firm We with deal we looking more on are platform was solutions key our several small consolidate price services dental, use professional to including standardize them clients vendors, positioned Wrapping including done-for-you serves clients, firm our IES an a as mid-market and bring IES. clients to and worth businesses and

me Sandeep. over hand Now let it to

Sandeep Aujla

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

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

Now let with me business our segments. our global business turn solutions to Starting group.

momentum the grow offerings business Business look to nature and platform driven helps by of economic in flow mission-critical customers online The ecosystem and QX and is Mailchimp. XX% as grew their ecosystem of excluding Group our grow the or XX% business growth in platform demonstrating Global any their and to our revenue end-to-end. Solutions online business Our environment. run customers power cash improve business XX% during revenue of our

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

pay, customer payroll and prices total driven through the mid-market focus per on growth. payments in volume which the Growth go-to-market revenue quarter drive We includes and Online we money, XX% and QuickBooks' payment excluding XX% increase in grew continue prioritize was revenue growth payments, both QX Within which by services Mailchimp. was Mailchimp. and driven bill and innovations, effective ongoing to which product revenue higher or capital and growth. reflects to ARPC customer disrupting growth, motions revenue growth expect in Capital money, by QX in

higher prices in in growth, payment to growth, the Turbo, and quarters online the customer effective improved revenue was outcomes driven growth to in improvements, quarter Total scale. making paid quarter several mix progress XX% we Revenue expect deliver to volume with and reflects Within growth the within it shift Mailchimp, are customer early growth prices. was at higher take by product but continue effective QX

integrates and As of are QX, year, remain in confident vision business which last that their customers we executing run QX place. lapping an the platform grow We made a to Mailchimp enabling is on QuickBooks. our QX. in reminder, and versus a one all drove changes pair of business growth This in and quarter of our both this in began in price the deceleration we end-to-end

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

we have company. as we platform previously As win shared, a

Our for with and growth online half addressable both ecosystem an ecosystem Enterprise revenue grew the a revenue mid-market. XX% and making midsized online reflects of This billion, rest needs. ecosystem with including ecosystem of our serves strategy grew complex progress that businesses XX%. small strong are small Online for represents we growth in XX% roughly approximately In mid-market. is of QX, base businesses more $XXX and suite over Advanced online Intuit which revenue revenue market QBO serving the of the

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

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

Desktop. to Turning

in grew ecosystem and revenue QX, teens. enterprise high During Desktop grew the revenue XX%, desktop

Quarterly reflect updates. early fiscal more desktop model. complete changes in product revenue made a transition reminder, the in we a to including to frequent growth As subscription offering XXXX XXXX ecosystem fiscal the recurring trends

the XXXX. fiscal expect low continue single desktop digits We grow in ecosystem in revenue to to

Turning our to platform. consumer

decisions, Group financial Consumer consumer refunds to of make best smart tax revenue for X%, Our their health get is year helping platform customers single-digit in outcome improve ahead achieve grew decline around, tax money our and guidance their take their QX. steps low a faster.

price experience. to is strategy to platform for Speed money and by delivering best best the an win Our customers. as AI-driven expert

incredible have seamless the consumer platform TurboTax categories. with win to skills Credit Karma, and one experience a in across As DIY tax and assisted we customer

XXXX. strong to and season fiscal are in in a start for to off revenue Consumer Group reiterating of We are our tax X% guidance X% growth

to credit credit points. again in quarter growth Karma for was revenue a million for accounted Turning strength QX, ProTax reflecting growth, accelerated of auto personal Credit accounted XX%, down group. insurance to loans and for Shifting loans XX XX insurance. personal Karma. $XXX in accounted points X the basis, Credit this product On and cards revenue auto The to points X%. cards

began lapping auto year are a insurance strong in we the that As QX, a growth reminder, in ago. starting

We platform are experience pleased Karma. a season seamless on with Credit consumer across TurboTax our our early for with results we as and customer execute vision this back one

on in benefiting our AI now touch our are they me operations. briefly and Let investments how

are This success innovation using to to In in to also has using delivered more AI matching productivity we in customers we're experiences, the internally. Within workforce our addition efficiencies working XX% for of rate that we pleased our earlier, increase ahead. organization, contact our to your experts, have for the with success faster to delivering nearly Intuit annualized agents to contributed faster the also spoke code AI-driven operate investments We're and experiences customers support training, capabilities fuel eliminating In to am That's TurboTax leveraging Sasan efficiently done AI customers. seeing fiscal are I opportunities XX% the summary, data is their reduction AI improved and year deliver customer driving in half because the up expert scale. automating coding They're for momentum for year. AI $XX productivity a this coding in at AI million first assistance, product operations for and and with year-to-date. entry. Gen to this leveraging

balance and capital our to allocation. sheet Shifting

commitment a financial investments billion payable $X.X This credit dilution share XXXX. quarter. to $XXX $X.X expires in million refund and decisions recently are $X.XX principles X-day XX, guide the cash aim second share-based our over compensation long-term $X.X billion repurchased early marketing a approximately a offset our during that April of from that other in We factors, per April in be offering. Our X-year to facility on on stock our the on market petitions entered share We Depending increase and quarter the of quarter using XX, unchanged. This last quarterly XX% The dividend and revolving finished facility and our our a versus We Board is fund per XXXX. remain each with sheet. represents balance we into period. debt are billion approved on to year.

on Moving to guidance.

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

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

are strong on in our to to our we continued our QX the highly business forward tax in strength with call of season Building positioned trajectory are year well QX strong results ahead earnings next sharing we deliver updated the beyond, positive an still QX majority and confident and the robust look outlook and through our on and guidance, results practice. line full usual with of

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

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

Sasan Goodarzi

strategy, of year, long-term double-digit operating in in revenue our and you, revenue. second Thank We're half. which our up momentum fiscal solid confident Sandeep. for like including than the faster a growth income very growth growing sets first the We half us Great.

total addressable experts, Looking Assist confident our human market. a delivering in progress and done-for-you seeing AI-powered ahead, $XXX penetration with are we're X% experiences of our momentum billion Intuit increasing with we the

We ahead. have an incredible runway

now that, to open With it your we'll up questions.

Operator

Siti to with Panigrahi first go We'll Instructions] [Operator Mizuho.

Sitikantha Panigrahi

great Great. Congratulations quarter. on a

the guidance X% that this what's Any color Of are And Intuit seeing that for on cover since year on Also, your October. started about if to and confidence the driving consumer. you a concern trends some in in could efficiency earlier Wondering course, Sasan, we hear taxes drive you on now is promotion this initiatives. you focus those increasing at for can X% deliver the category how same, this assisted IRS. point.

Sasan Goodarzi

Thanks sure. Siti. for Yes, the question,

very to money. like We're actually, strong First access on -- actually to across And the innovation, of filers with strength of assisted DIY. both category. based strong monetization seeing in our and access both expert is with in is category just DIY all things I'll start simple very all, and our and with help the really traction complex DIY

So really actually lineup growth. helped of our paid the accelerate repositioning has us

the category money all best work from and reinventing price. in from the So terms get experience, we assisted, really the really of to which DIY campaign, in end-to-end, listen, good what to done digitally and it your access feel it's resonating taxes is our anywhere with means the immediate your best

short is we're homes. to their we're homes, rate reminder match and our data to filers conversion get seconds, their the completely to hold customers that campaign and use while -- work the can and the we've with as investments, data get they're the their experience, so of with nearly all to that assisted upload And to our all the we've they XX%. experts the just taxes a engaging our revamped really immediately done done of the from AI up able a within immediately expert their of from the in to customer where than experts So then radius way hours. value the to engage X algorithms all less XX% within deliver customers, to begin to All one show of experience

the across this But this and consumer -- by is way, is business.

and from strong AI so and And started data given with the we campaigns where work that the in leveraging done, our experiences all fall that the is funnel are. and we we've and our

all gives and us of in our Siti, that combination and data of choices all our confidence, it's guidance. really So decisions, AI a powered by

of of even administration said, significantly administration And as have reducing to very fraud that helping consumers thing tax on And ongoing are with those, those that we're focused that ago, they're many businesses possible. cost our some late we really waste, that with way, actions risk And and their and with where areas in reducing reiterate just very providing ongoing overhead talking IRS. very the and would bureaucracy. eliminating and I waste, helping them the second fraud, drive about just there's goals. by services the we IRS is any they're on contributing the around been couple see, actions way elimination and with a of and to any focused the on in taken. are their engagement weeks The to focused don't personal my taking focus the And

answers question. quite our the quite about I'm that the hopefully, excited We're season. your of So progress. about rest bullish

Operator

to Materne We'll go ISI. Kirk next with Evercore

S. Kirk Materne

Congrats just on or Sasan you a little the small wondering the if talk about good could business just the environment. quarter. bit SMB

into just macro could of tariffs, kind seeing the the year all like I level. that the around give some perhaps front now. economic right in on of on anything of seeing that. just shoots if that Has questions this dislocation little came side us was be bit your view, in of an on we'd think hoping business changed terms curious I a things little update bit you're you we a green small of activity given what

Sasan Goodarzi

of million sure, businesses. click would [indiscernible] down just sort macro a up platform, about year-over-year. businesses, flows our smaller I for Yes, XX just On employees, give revenue. in cash environment $X.X their you million, terms to up and profits $X of in I are If the the

smaller much takeaway overly drive for the save industry. into towards million actually larger and profitability. a by looking should finding $XX overall, and able the we the It being businesses towards above to The you sort growth $XXX little be to in differs mid-market revenue that both your businesses. $X serve, looking they're ways course, industry. customers particular concentrated know, bit digitization, very But we're time, million, plus million not Of of any as million that $XX

based I that business because assistant larger into lean really same that Enterprise that's into now goes of these for these using by comes Enterprise them proof into our And can with where because site, our are say power we their digitization want leads actually help Intuit also because partners have on an that partner it Suite Suite to the and and IS, accountant customers can experiences, businesses actually serve the would have with their leaning And businesses. and AI-powered in a they they their growth. grow see Intuit

even get. So a we're larger healthier businesses the the environment, seeing

Operator

We'll Keith next go to Stanley. Morgan with Weiss

Keith Weiss

that a to for this side you are leverage the mini back quarter. expense way still basically really expansion, Coming to of timing you showing more hiring on that of line. on margin in a guys Is lot for of guys the due made same the into Congratulations the up to saw than on of solid room bottom that skill like really one is a set on the any planning there on progress count needed guys we equation. because levels quarter, on the get to impressive talking basis. head the when in in had Or first go-forward earlier? and year? on of a driving we're Maybe your opportunity thinking far sort into we half this were for about year, about aggressive type came sort more Sandeep investment board Thus sort definitely we leverage for expense you of perhaps plans

Sandeep Aujla

that question. for thanks Keith,

me the Let then aspect on margin also aspect. hiring the the question and on address both

rate -- the recruiting in on -- the are saw terms good of take we year. really first of hiring, in we the On quarters X

in short it people just order was a internal the of how of reputation company the attract has terms able expectation many fact, were our to we ahead of the firm in and time. In even to

growth as also terms that terms to in to employees. key efficiency drive I AI consistent we of and the year internally In continue have to be lean into in using before, areas the our to with expectation flat it our to up we of slightly year, shared for are future what investing expect for

that for expansion have our ROI our One term, this margin to margin year-to-date this margin of year. ability discipline you've committed from terms dollars is are the on over really, driving expansion, to the expense down we've across the shows look, we aspect that around and trends expect allocate deliver In up the come in, long how we the expenses to question the and day things. And given and day we confident of I super in every dollars. guidance expansion and we broader those in company. X out our seen feel

the bit in Secondly, what success, came earlier we a that customer our of than had efficiencies forecasted. in AI from internally implementation

So start that that good lastly, was season, in also a tax trend hit And a with a we to the QX. slower saw. it that bit

QX our So as net-net, year look in you should confidence for the at beyond. and solidifying our margin for this

Keith Weiss

Got X to to the it. And like just sounds clarify is point hiring It on hiring. on number you're plan. going

outperformance like in sense. So that wasn't there an from margins in hiring QX came delayed any

Sandeep Aujla

experiences. good rates, hired lower from than We Turbotax on the and we efficiencies Gen we thought higher XX% we as we had call tools. volume less productivity take engineers as AI talked we of such The a CES, AI using I in stuff would just XX% No. given implementation little implemented saw where saw what [indiscernible] need we a hiring about

plethora So there that should needing trends. as terms the are fewer should things such a us in key but that people need, led we we than of areas be to hiring of take would thought you that, that

Operator

with next to go Jefferies. Thill We'll Brent

Brent Thill

give seeing signs you're of what seen traction? know tax season be confidence season. What does from response? is it marketing heading that? I little been based the early more this innovative in clever and it you helpful. on reaction any I'm early if you Sasan, -- would in curious Any color or you've the some different launched has new tax And

Sasan Goodarzi

click, creating whether question. really segment. To businesses the where assisted Yes, the that around a for $XX thank somebody it's short does we matters to consumers what give their get spend us The to taxes the Brent, over we're a in market answer for or get those it's that confidence you just really flywheel Based of to else awareness raise done lot them. is billion, lot combination X benefits we've are double of on yes. the the seen, in and that in it

players it One, and some, at of, where money just local the we fall ] is just way, scale of today, smaller we've best virtually can we of investments pros, of very thousand that of of is couple wherever know immediate with about ultimately tax the tax about [ competing we've by our the through the experience, less ease the the to punchline from firms in us businesses. we carried in sit around there money, a price the and price started you can It's the a actually we strong. access very eye access deliver I number funnel done-for-you several which our and our is and minutes fact to we is with experience. experience, accumulation is immediate because that for fall in XX hundred That's segment hours, of actually customers scale data than and And the think consumers that one. that competition get And and the the because to make quite is in what really what decision in attractive both to price. the yes, your would their all the majority the AI just made, lot and with given you a say, are

are of next we're of Number two, the segment the to a means just have all our doing and being experience the given excited we has the I given we these right for work software talk is where assisted the them being finally work. seeing all hear best weeks. expert experience from service put just season engaging about that, not software significantly X to whic with improved, do when provider. shift leading where with in we're up you are to customers the customers provider the accumulation made that front. way a about would disrupt improvement, us it we're the And

Operator

Enders to next go Steve with We'll Citi.

Steven Enders

just I strength the I to advanced on the of that maybe seeing in enterprise ask the wanted the you're guess in equation. the side suite

and just to are seeing you've how the of behind out, kind you're about productivity opportunity how thinking investments of the there? built sales strength force invest viewing you kind thinking upmarket further that how you're the Just you're move further of that rates about

Sasan Goodarzi

Well, I every getting of the launched just and sales prior we Yes. of couple last of them, timing One, things wrapping went Suite, productive we launched folks it passes are folks. day because our And was more of a just the when and that would that, to Intuit Enterprise say. were sales literally course, our that when of up we hired we fall GA. hiring timing it

ways, earlier, last folks, months on would of But we've I a as the just I total and because of which because is cost easier the touched couple of on how don't just So is in an progression. we experience, downplay to sell with because say, natural seen many price. productivity ownership actually it, of improvement of the our competitive also a want XX% it but sales in sort it's of

that now initially I talking of shift is really really partners. coverage focusing accountant are started big we our accelerating We large think the the on businesses. to

partners making it's Suite with it. actually our and play accounting viral, they're Intuit -- We now are shifting because to they going can sure about around that Enterprise accelerating large are hearing

to technology, in practices having have pricing into accounting a sandbox to up to because to giving offer up framework focus to, enterprise a IT construction real these to large framework practice their different do to from firms estate just services customers. with suite essence, that, by an XX to manufacturing, a So may really them coming and a the

of coverage. and on where folks productivity optimization scaling say add focus time, something watch significantly the is the know, it the I to for. accelerating that I you overly we it's at we and sales the want we that's if But improving, our would that really same a productivity would growth important. business This is But don't And where anything. is area Sandeep, because the don't exciting. the is we're we're

Sandeep Aujla

Steve, the cohort sure the at couple than to salespeople of more in coming is of points internally the each that than terms what would add we laddering want cohort of I is that faster prior is cohort in prior. productivity. is that each productive we their make up look And

bring in the right those sure also as better product make want industry people we when Secondly, when that these close well investing see specialization rate we investments, specializations. as look we we specialization in to with because we're at

are in And could product What we're able need our able sales where big on path the me contributor they're able they battle are what to the AI is the here using the next with based them action to them sales customers' the address to AI because AI lastly, touch the give driving to track desk or competitive productivity. solution implementing to offering. process. address what is best on we're card be to we let the give AK, for across also right do

the we look and about we're drive So multiple that good to looking at the there seeing are we're feeling productivity. really that at improvements being disciplined areas efficiency and stats we're in

Operator

We'll with Sachs. Goldman go Rangan next to Kash

Kasthuri Rangan

can results. count Sasan, the of be always on to I And on SMBs. Congratulations you hope for the beacon

your barely better income I the environment. So know spending you and ecosystem that feeling statement. have a on back, better we a progressively blip step been was SMB online about If take

how the seems What right? we Now business revenue. term, to about make early, within certainly So advanced, could And near term, little unit, confines be? would afterwards. it's could if dream, is outcome that, longer business how a the the a multibillion dream QBO Advanced of IASB within to how dollar but you of be big that too scenario? What your dream online ecosystem And business big ecstatic it's of think it. into of you should bit as although a the a QBO

Sasan Goodarzi

love and the We dream, Well, love Kash, execute. thanks for your to question. we

I you the we've way and of of this the things if I our in billion question. the couple love at of say. size well guided A $XX your business terms year. group, just scale One, north of So nature would look of

business to think continue very the continue XX% overall to And to group low driven growth online the future. to by majority we digits very, of expect as about is grow We XX%. single between because the really you that

first the that's So takeaway.

portion, as As should to grow look the at largest to which online at franchise portion, XX% a that rate. this the growing continue which healthy is XX%, means

the it's mid-market think group nearly the $X of in a size billion, that mean way defined I mid-market. is for is. million question, couple half mean as addressable which terms your of it is what of today, total market, when which to the business by I And of we've And revenue does stand answer at anything way will today, hundred you not to north of million. really all up the is the look that the business in a $XXX

The that's suite other way and advanced to all as where in. QBO a platform way come that's Intuit to services TAM, up a employees look at we've in mid-market. And about $XXX like and the enterprise the it is couple of billion is truly defined hundred

It's the price. possible. And more we much seeing so what's much and how even because on can That's X where business than years couple because innovation the declared revenue. platform. day total today And great cost started have a do, separately where mid-market, that we're of we bigger X then we here still even the our adding and we on we're lot but Intuit have We ago of why getting and than rate also believe actually room. when And more actually given fall million group. an traction. in to of about expansion the that to growth will see There's we mid-market market of hundred more the talking today at just by an we're last still our in not Suite, platform going a we area where have so progress the disrupting than Enterprise stop ownership mid-market work which be entire we're sitting winning we're it's based area us confidence there's to areas go-to-market. excites experienced our We have we're we with confidence way, believe on

believe XX entrants to just growth So we the we we a want think those to because the market for while the going in new group, be is a serve mid-market we it business to by the growth time driver, business and the are continue, years is for of over way, driver that significant next will largest be grow with them.

it So is we're our business the than will about the potential. today, bigger be is and dream group far excited

Operator

go to Zukin Wolfe We'll Alex Research. with next

Unknown Analyst

the Credit Patrick quarter Karma a in second as in outperformance there there large annual any to strength year, help for segment? then pretty consensus. a as the providing is us consideration update given first Can relative half in guidance, such to result seeing you its Alex. This the was with What of if contextualize you are the row the And not? not, on why

Sasan Goodarzi

Yes, sure.

manage middle, of Credit really of start the consumer is plate, is of our So you and build the integration the great one done. goal by taxes you I our you the credit helping and all would just I which Karma of wealth your with get everyone, TurboTax, is say, in about to strategy execution money reminding and your first helping from all, helping the build would team

that's we're credit loans, insurance, all we've of So platform experience cards, to of it's lots our personal dramatically with platform. essence, whether and innovation you one is it top we, for of all taxes. whether buying you improved and it's the make where it's of whether investments what consumer connecting in on members it's where help sitting whether data decisions, shopping our And of ultimately all focused consumer on one particularly AI

are at year our our last is so versus XX% you And rate, accelerated is growth And love probably XX% things look macro, trajectory. better we just when execution.

helping their taxes money love them with and their helping we've for we because the TurboTax us, everything done. that manage importantly, More done integration customers is about get

purpose say and would additional to is double Karma over And expect segment serves. I'll long Credit platform, And it in touch that turn the run that him you any our this, Overall, grow it heard insights. consumer we Sandeep on to combination to that's expect And TurboTax the XX%. and then as digits. the for of would grow lastly, we right, I this to a would XX% that just

the Given where are guidance at our updating we'll year, after we in look QX.

Sandeep Aujla

only confidence couple embedded would and drive and We're to seeing experiences consumer across the partner better of better across our -- is Karma, addition in I a better the seeing get experiences things are ARPC. Credit the add shopping also platform. to Patrick, we we experience

keep trends also that's look plus seeing you of the there? growth model the ahead in lastly, year, that in X% in XX% at Karma exited and QX in a the and negative And just QX. year, mind last rate So with in you're started aiding Credit out the rest as

the more comps half the Karma in the challenging. So year for back do Credit get of

year. into account that the you of as take do please more So rest out the

Operator

to next Bank go with Brad Sills America. We'll of

Bradley Sills

tax into heading on ask here. to tax the wanted I season a question we as are

Are you're that into to indicators wanted we've effort all TV perspective seeing about segment. to CPA result get filer a that there of talked might the the as service on for just general tracking? suggest full season. on of any any as leading to be how ads the that we You and outlook in the some advertise head seen full-service

Sasan Goodarzi

this things. rest the the focused you on reinventing our experience, feeling the of of to X of really seeing the One, you have virtually. how strength things would Yes, could really campaign are a and we're sure. in question. experience say Thank is the -- from for couple year our about combination is just is your A funnel we that I that end-to-end the best

to money. immediate is access your second The

has how And Third different access showing really, get immediate is you virtually price. your fall really it. full-service can have that and done positive can really the Plus our anybody had than had money do with really where your has our our faster that are the our a building coupled get funnel. campaign else best taxes taxes on started campaign impact in to experience. out we revamped of

segment. now they're company disrupting and done. last really shifted seconds, insights their expert a software an as if the things ingesting all the is to are the in on delivering year, this a background, work as customer. change, lot within customer is we a we of is minutes, the it themselves. while within match real the data doing the it big One to taxes mentioned their still customer. relates was And with experience our of that of expert This getting is a we go In full-service front year means to from year, to customers earlier we the that do the big And company what assisted having I the even services the were

it sometimes, little a XX minutes. as is And

in So for the -- end And about service it's with just it from we're I'll strength experiences strength. disruptive funnel, and us, the we're seeing we're rest about the full me experience, campaign do year. assisted to end-to-end the across bullish in quite just about price, with our the of and where being the It's and category. seeing

Operator

We'll go next to Markets. Alex KeyBanc Capital Markgraff with

Alexander Markgraff

you could group just talk the than better noted Sandeep, result, consumer guided. about maybe you

particularly surprised in what the of context kind curious of... Just

Sandeep Aujla

on all as getting pointed consumer Yes. A strong as as out, Online revenue average in what an was that than driver added we key terms better as just the in expert and we couple customers units you as defense that return the a they better their on well start offerings, audit to. the as refund. than with well access One saw, things expectation more group. of TurboTax terms to a per engage including Sasan did of the we a guided faster for That year. the experienced of Thanks as drove question, Alex. had and ARPR to the both results is

Aleksandr Zukin

that seasonality fair . of modeling in you're a statement? clarify, just business? expected as the to no Is change And sort

Sandeep Aujla

expected No, seasonality.

-- our the the that into on around some that nonmaterial in the questions I L.A. with to of I'm unfortunate we the terms the we seasonality. assuming But mean to referring you're you're events taking XXth, seasonality. to of impact be in IRS even the expect QX. we account get don't fires, If any opened expect And

Operator

We'll UBS. go next to Taylor McGinnis with

Taylor McGinnis

business ask accelerated which services to MailChimp, I'll Maybe that said really solid. think I you is on because the growth online XX% excluding that,

really of payments going maybe a by AP XX% lapping some we're we that So unpack pricing driven so just to the as like more the about as see online you changes. you think maybe potential. be just scaling potential being could in business. half, MailChimp, We growth the in the bit second I can acceleration then services little possible with continue mentioned growth offset that to that And plus continues. the when think

it in that we is that to see possible business. So declines some start

Sasan Goodarzi

team kick thank Taylor, I'll Yes. and with Maybe off us Sandeep.

large credit. offerings, it's invoicing the the you're is And very manage We the business. now money seeing money AP to able our platform with our with say, deposit. of of possible would We of that strength have I growth. businesses really see we're starting leverage when their instant of a and offerings experiences what's to also can it think line payments to fuel pay our and manage now be all to cash strength whether I AI-driven comes money really their flow bill our that have estimates to with set to

that's number So one. sort of

the points, XX We're things seeing at QBO serves than payroll. the with in points as is we payroll. payments Advanced which of particularly, also respectively, touched and mid-market, comes and payroll great strength Intuit we on and with is down to it all the mid-market, higher X number our one QBO of fixed Advanced, But look of Enterprise attach mix again, Core. earlier payroll Suite, and platform particularly strength And X QBO great the -- and

strength Sandeep, on all expect. our minus that Mailchimp, are of that services. we you across the you we services lapping, help would level seeing Mailchimp our we Mailchimp, add And are price earlier, that talked about So bring of as anything? increases we're there growth while that's we the and

Sandeep Aujla

happens this Taylor, as would one you actually as holistic solution holistic payment the I is workforce is And customer offerings on the across this product those the payroll and offering the engaging the add only thing go-to-market and portfolio. teams engaging side a when finally holistic us with teams money get is offering. the what and

you as So we payment driving And that was XX% XX% it quarter. shared up this that shows noted -- last quarter. as strength. up volume really that's we was as the recall, that And

more but to that starting onto up as just be our shared results. of platform. should show looking this, to an not attach So bring Sasan the in in mid-market so larger, are And these mentioned, contributor because forward, higher also increasing they volume the customers he

Operator

to We'll Jaluria Rishi RBC Markets. go Capital with next

S. Kirk Materne

are are lot to budget solutions. a there and map points the maybe where of early these have during you customer customer of for that with I number displacing on highlighted And some any consolidating continued you traction you your wins informs see landing there success were ask just Maybe greenfield IES? about you additional have opportunities? nice functionality Really to think remarks, follow-up when early Or prepared if the point different wanted wins a your about you're of customers looking a to here. push on. [indiscernible] think that in business. been early feedback, that, road that with the typically that are we alongside future

Sasan Goodarzi

different try question, all to the and asked you the on that I'll for Thanks elements about. Yes. hit

with these after. -- about start First multi-entity total these addressable that characteristics a of we we Intuit suite. need of And are QBO in have $XX already all, have have -- that our have going XXX,XXX this billion market And is the I'll customers -- XXX,XXX $X.X they a for over businesses, enterprise Advanced these million of and/or base. either in revenue, larger

accountant where really and we've on So started base foremost, been focused first has partners. on focused our own and our

the we've that's the to their all displaced to the the X fact, And of customer because on are in performing. momentum leverage payments, for that our segments that And those decisions can work the how capabilities invoicing where place, to point all growth customer pay we time seen based resource, from solutions of make payroll, the recommendations they sure, different make all the them on bill tracking, is to depending it's the -- Enterprise of help in power Intuit we cases, when in acceleration. and from the type the business, when then reallocate AI can to the actually suite of estimate do lens have, of

switch an That's their So into to is one. number all to motivated the enterprise suite. actually from customer point solutions really

and existing they savings pay they they'll more with see us time pay enterprise. customer, when pay if that. they they're Because today, cost savings an more significantly than generally, will two, significant although they Number Intuit do

when So total enterprise the go ownership is up point are very and switch suite. saving cost starting the ultimately, solutions see competitive and to experience And again, us from to to of we're different of suite enterprise the come that user-friendly, Intuit just solutions to price. want because is to end businesses they ease and actually on they money of, actually what accountants

So that all you're way, been base. greenfield by bunch other. said, the talk the to But of those majority with shift are different to means to focused apps. And each None beginning not only we greenfield. apps the are on that has a after going just our own just of using that of

but platform. you that's one as lot is several sort consider really our majority we come You're TAM, that don't digital where look your spending know from business of how majority to a and spent We of performing in of opportunity the next nonconsumption to where is switching will And . at the greenfield. of money, in the years. the the money that's

Operator

our And comes Oppenheimer. Scott from today question last with Schneeberger

Scott Schneeberger

the per question, in Spirit. revenue essentially it's Yes, tax X return

for experience full more other and in customer tumor changed traditional you The first you form-based pricing that part, to full on by just -- peers your used a pricing -- tax the high service you've service. with noted very products, to

how received? And that's year. being the you curious then right formula question Just follow-up Do that product? think now the this it's is for

Now in impact up? an there significant to how that fact, season, the with tax you go if, are that for might pickup we're in revenue about those a that seeing the month threshold into you per out. the And have pick on lower volume tax seeing return this are season

Sasan Goodarzi

question. your for thanks Scott, Yes,

Let one broader points. of couple me make

of the AI-driven personalized things have actually year, AI this investments based in that experiences. is we've our lineup of we on and One data done all

our doors going and And lineup go Sandeep So our is. that if front I -- look things. instance, to see our and for on all you different we're of if any to very go, see what

a where days longer is of lineup And lineup same past sees no so the exists. and the the there everybody

standard for gotten know see simple and because why of which we've certain that -- even with customers is many we're putting situations AI because the important It's actually experience. really it's And and really transcends getting, where in with very data we're SKU. lend customers people we're is right monetizing in for SKU. reality assisted would a how will the comment why them experiences. And our into both you right platform The start and complex on partly that the lot like, filers to questions instance, to segment, I our standard our that I traction strong there. say, wanted don't That's

season. of product the lot, to price mean, I is experience a And the to recommendation our just score industry. think says our an in I and XX businesses. answer that actually highest customers, We're any is access the just includes the excited with score full not nice full-service your question, product are with X way, recommendation money businesses that, the And consumers. we're rest seeing And service, small about using and of by small uptake quite

comment think last rest the the on we a We And Unfortunate just both immaterial. as we see that situation XXXX. L.A., in both immaterial. it's but season, -- gotten is lot of don't we've Sandeep of made view thing it questions XXXX, we just because earlier them uptake of the may and

Scott Schneeberger

our question-and-answer conclude over period. presenters will now for back additional closing remarks. I does or to the This today's any call turn

Sasan Goodarzi

next there, Bye, you to out questions you so for be and much the great Awesome. Well, all look safe thank forward quarter. everyone. and we seeing

Operator

conference gentlemen, thank Ladies you participating today's and for Goodbye. call. in

Intuit (INTU) 25 Feb 252025 Q2 Earnings call transcript