Intuit (INTU) 23 Feb 232023 Q2 Earnings call transcript

Good afternoon. My name is Abby, and I will be your conference facilitator. At this time, I would like to welcome everyone to the Intuit Second Quarter Fiscal Year 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions] [Operator

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

afternoon, call. Intuit's Good fiscal Michelle Abby. and Intuit's CFO. to Thanks, second Clatterbuck, XXXX our conference Sasan I'm CEO, with here Goodarzi; and welcome quarter

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

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

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

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

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

of Thanks, us Great. you to and Kim, today. thanks all joining for

business. Officer on first few assume that let's As step I'm Intuit. pleased you Chief X, minutes, announced the plan down a the we and read will to in will Sandeep a started Financial retire role in succession from with get to It will our that from Aujla role Michelle more of press release, that plans August the XXXX. CFO is cover well-crafted but share

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truth Now our source turning to becoming and to to of help our the customers We're Mailchimp. for on way business. run grow them well their

with Mailchimp. We have three priorities acceleration

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we made This these against quarter, some progress great priorities.

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the in to Our business representing TAM X.X disrupt of Bet million franchise our customers, small already is Big mid-market are fifth a which XXX,XXX today. of

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Michelle. to let Now, over me it hand

Thanks, Sasan.

the diluted of $X.XX $XXX revenue quarter $XX year million income $X.XX income year. a we versus XXXX, last per of and of million last billion; operating $XXX of per operating million $X.XX earnings year; year; versus versus second GAAP of million non-GAAP For fiscal $XXX earnings diluted share last versus of delivered GAAP $X share ago; non-GAAP $X.XX

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expand the With the ecosystem threefold: strategic for core, businesses, globally. group Small being grow within of truth our of & the the Self-Employed goal focus Business the and source small is connect

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prices, was improving pricing by Mailchimp our aligning philosophy revenue and in conversion. the higher effective growth Growth was teens. low driven with up for value quarter

do including dive Investor continue the of so the on will regular the what deeper business. to track updates business, over similar to time, you rest a Day, We our provide for we performance can at

flow growth reflects customer. revenue increase our their ongoing payment total payments payments, an per customers growth, manage to adopt volume as and in cash Within customer offerings more

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grew during Enterprise Desktop high QuickBooks quarter. revenue the teens

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reminder, Credit represented in XX% fiscal Karma total revenue our of As a XXXX.

the basis, Karma auto Money. home product headwinds a growth in offset loans, partially and cards loans, by personal driven On insurance primarily Credit decline in loans, credit auto was by and

to an across macro verticals continue uncertain all environment. We see in impact this

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$X.X Our billion financial the debt $X.X approximately cash on million in quarter decisions, repurchased our billion the sheet. our and in our long-term remain We commitment are stock We during unchanged. finished principles and with guide $XXX second of quarter. investments balance and

Board XX% market each other Depending payable $X.XX in aim and of year. dividend XXXX. represents This be a our April market The is approved increase a the versus on XX, to per quarterly share conditions factors, quarter. last

in operating we difficult we and several system use a run good I playbook economic includes shared the consistently past an quarters, the operating have As company, both proven to and times. this for in

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that have also enables We sheet balance a us play to strong offsets.

position will We of macro this strength. goal accelerate to a innovation, to our continue Intuit remains our emerge and period in for uncertainty of from

Moving to guidance. on

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

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

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

seven been he team have years, and key a be On priority part announced to today, a integral I look our to create over for and for leader and the to and that finance ensuring next time stepping his with strong working as of to and to strategy again, will has on upcoming years time has ability succession transition. July over as an the in made our strategic I and months shown long-term it have we several drive terrific place. includes ensure five with over value leadership growth, personal plans I CFO for be focus note, on I CFO. will doubt the a Sandeep him finance high-performing down no business, priorities last XX a team He forward driving

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

over will the you, as my five that Michelle. years this has wanted Well, CFO all the than an appreciation She while isn't sincere for XX Intuit last past years what opportunity August, been at to founded. Thank and leave official partner until has amazing including Michelle to CFO. Great. take just transition I express Intuit better the contributed she

market our strong Self-Employed an Small transition. his firm be and Michelle's CFO, our seamless with top very and track talent and during leading Michelle's exceptional technology outstanding developing will than of making And revenue to of Business commitment leaders, diverse doubled. bench and tenure as across Intuit's created cap organizations. a and has more record Sandeep a CFO deep performance Group

let that, with So me ahead summarize. and go

Fortune's strategy additions global our momentum Mailchimp, We growing innovation, additional of of technology our being and AI-driven continued seeing double-digits are as expansion. margin -- revenue with on and global Intuit are Credit With we and financial accelerated the honored XXXX been the category, one execute prosperity to -- we expert organic the platform that leading a for and for Karma number Company XXXX. five, powers Most the and platform Work that Admired has people named communities. be to in proud Places We're software Just included on including Glassdoor's Capital's Best Intuit ranking of among Just XXX

up now that, open questions. your With let's it to

[Operator Thank Materne you. from of Instructions] question line from comes Kirk ISI. Evercore Your the first

Your line open. is

QuickBooks what in a and Chirag on in strong upselling is taking both the existing I really I quarter. you're seeing question Ved, customers. to you This Kirk. customers dialing and new congratulations ask about appreciate online wanted from growth, for from

might you Thank commentary any able there? Just around provide be the you. to dynamics

-- in our terms customer seeing with I lead Thank in would strength we're you seeing retention, services. we of are acquisition, question. strength the Yes, sure. for both

both mentioned the strong. number we are that running of the that of is ago, As moment companies getting number are a very employees paid payroll,

earlier digitizing you offering. as that on seeing much talked I We're higher really seeing and are our think strength compare of our being to we pursue fact just volume, we actually of to payments quite is excited about with is what Live continuing in additive And being we're ARPC non-consumption part -- results overall XX%, outstanding to piece the benefit able we're what with total from the mid-market, QuickBooks continuing embedded in really to about which if marketplace, our the is platform. grow payments are which charge customers because you're our

that of our just XXXX about talked ago, I with goals. with bold of four all goals end And would one the you we years

success One on rate of industry. better those to our XX small goals was that, the points be we wanted businesses than of platform

leveraging better to of are industry. small than And is that, platform continue businesses just on XX is they're for this their in north the more deliver our opportunity the And successful, points what and suggests businesses digitizing on to small fact, our to platform, performance they're their accelerate customers. that anyone in the

you. right. All Thank

welcome. very You’re

Your next from Panigrahi line of Siti the comes question from Mizuho.

open. line Your is

quarter. Sasan, great And you. it's Thank a

impressive transformation think talking when some environment, of like macro digital are your I weakness. push some in your business small this what's is peers about, in out small growth like business,

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to on small business. comments would your So hear love

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is mission-critical And businesses. our that, small the is platform for reason

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points fuels our on platform small more our therefore, moment stat are And businesses those I on ago, platform. successful than that that by means where are shared success, is, the a supported are what that it actually our not XX-plus

at that best XX%, performance in the just as an context, by look payments And our at very far, industry. to point I'll the volume charge so, and When example. set I being you important total is, that

our our that be And this digitization. environment, continue that not about are expect businesses to macro payments, our we and And about on all about here all it them. And we just small to it's is to businesses support it's even in services is platform. successful, small because, use the but

I that following, that rest in way expect by it at has and described just strength at at the saying although, you look hinting I been for you to you guidance, a continue, will the we which should sure, our think is our of as businesses, end when I your of year. I our guidance question. the think the de-risked look Michelle this and for strength The ago, were moment

quick clarification. Great. And follow-up, a basically

XX%. growth, XX%, around compared growth. online XX% impressive, Mailchimp, it's if like services I Your just exclude quite That's like QX, but to

right. clarify to I'm it want at Just looking that

right, You in are looking Mailchimp -- services, faster. we didn't at it you're online minus, essence, grew break number. because, yes, the But, out

So grew therefore, than just XX%. by design, faster it much

So correct. you are

Thank you.

welcome. very You're

question Your Wells next Turrin Fargo. line from Michael comes from the of

Your line is open.

guide great. appreciate with Maybe the still taking took left provides you one the on whether quarter, for Nice intact. EPS the I still Hey, around have us, that upside. EPS less the the maybe quarters room Last margin, Michelle Karma you're shown investors questions but couple job question. but from outlook We've of margin. first on while wiggle gotten down on quarter. you Credit

So through you're can potential just Are just there? together and margin brands folding you how levers think various there we walk advantages longer-term the about finding? the should in margin

the down about Yes. a for that We across – guidance Michael. the that's number very had identified we three income could our And expense take keep in something one went we we through plantful of for year though levers our strongly quarter. process. I horizon. question. as our We still able last revenue we pull Thank yes, guidance did planning we you, actually were margin, about appreciate to even felt being absolutely have very op that

A in marketing. lot of is that

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helpful. very It's

exceptionally the subscription? after Can journey that one sustained to revised the growth strong. Just you finding keeps desktop if you're we're just you. how what The for And Thank came target move more, then speak small base to afterwards. I in there migration may. what you business about think as and business the through XX%

maybe that. I Sure, will Michael, take

now important actually a subscription, I'll capabilities One, ensuring Two, capabilities context. business we key those that product-based that some all, online. reason continued we in strength, really shifted prices we the model just also far capabilities is of that years we're these it's First in migrate desktop the the online are that so that. of we've about the planful through because start see aligning heavily another been need. This middle that one, shift had model that, years with in in for in of last our the predictable. quite those being several between of of to very And can our business customers more customers, platform, desktop particularly this the is the excited that a see customers now have online have and of transition, X.X really but And context, products. fact available businesses, we our ahead process we investing we've this they is

the the businesses. XX% you franchise way, And this levers have, long-term step to to all will in back, actually And by that small expectations moving continue business online. is our our we opens of therefore, growth the franchise. the innovation to of a doors fuel to of up when what services us from when of ultimately, additional confidence with online give do that continues success the growth come XX% small for that up-market, – And to lot the we

Thanks much. very

welcome. You’re very

question next comes from Your from line Mark of JPMorgan. Murphy the

is line Your open.

can the that next and provide the of quarters. should I'm to continue in just if QuickBooks uplift Online seeing particular, favorable that In effective for prices. wondering And much. you drill higher the if curious Accounting, into that the you magnitude several add congratulations. from I you're trend my impact. of And duration any Thank down material kind very terms was I’ll for of

your Yes. Thanks for Mark. question,

with if growth is we the context across at moving our business what largest the we across volume in many and/or are and we our two start are mix. course, that company, driven, of upmarket. innovation matter look no from to are those market, always up which moving And our cases businesses, me come by Let

is In TurboTax, the moving assisted the example into segment.

and price and the and we because just accelerated be also always vast to the we our lot of And because to the drivers. So we bottom, innovation, continue have of customers. us gives mix as largest of at that that the to really a want disrupt price from actually power And because pricing leverage for a want top. and the disruptive the value are benefits we equation deliver

And that to the shift we couple just will this, durability desktop, lever in not was we quarters, next terms come I And element this. business pronounced as volume quarters, we continue and majority upmarket. but a durability think online pricing to -- and we a parity growth are of Intuit in so looking of of continue business for more and always expect to the are that particularly but looking even model that with and there's the a believe we just context, several just of that element mix because about of in with quarterly from not we it because think be just our moving how where things, the small ahead, of long-term will in the next price bringing

where in customers the you e-mail to see the Mailchimp I test of hold campaigns Are including for the higher of the been of initiatives those there. hold seeing out the to of which to on that follow-up, are starting and whether starting with take Is are had you've something take quick has think marketing, ecosystem. produce the very run as kind MailChimp, a or growth volumes or as effect the products couple rest and then well? at creative there side, next an terms look back And we quarters currently in to designed in AB campaign advertising opt right that Understood. connect the stimulate Okay. they

Yes, green Mark, priorities couple started that about we we the to shoots green a you about I when and the starting talked ago. would that say quarters areas, seeing shoots, think we focus are see of in

is really most biggest conversion to green that penetrate work addition to doing deliver in the we in one mid-market. about to our starting that excited initiatives retain paid. of sort the we high-value in are are And customers one the shoots The to is the and --

And we Data the puts and really it's doing, fuel the in Sync the the that's can't data all data of excited is we'll making that I'm And to talked get see I two onboarding but is customers. next that that mid-market customer in huge, really only what not one in This about and with way where in these very hands things now also which redesign, first-time that of power we it use, Advance, just it our the that that about, now talked earlier which purchase to impact puts and really a to place, it the anywhere The when Sync. other said and three in where because web about and retaining our customers that same And quite all we platform the a we've growth is story in in retention built our of results mid-market. where think actually is of they on Data team we'll in high-value in focus one-hour redesign, else. the really mid-market was customers bigger quarters, context start customers, high high-value in came and coming, shared we is a a script, QuickBooks not the that one assisted penetration QuickBooks. also campaign

will growth, the green about translate coming we're all It making. excited the clear, just but these is, so, things progress in take which shoots. that be we're sort are quarters, to And guidance, the not way, faster of, but embedded time, seeing in we our revenue into the by

Thank you, very much.

You’re very welcome.

Your comes Deutsche of the from line next from question Brad Zelnick Bank.

Your line is open.

that Excellent. within much much context, it's all what's Guarantee And Karma, and Karma taking Sasan, in Credit how only hear I think the doing. within there's everyone appreciates for Credit that's your Thank question. goodness you is to the so happening great around so control.

to about the the you But do as and maybe the perhaps talk other the elements even home, about portfolio, you're And the in you think performance an isn't just that's of in in support the we auto environment how in control? market it. for just supply-constrained, if context making of against and can products, opportunity can the that investing what example, Thanks. you other there know you're progress how

And the delivering Brad, are a focused macro reason to areas for to to for the near in point, focus undeterred the such are the we on is, Yes, but we question. great actually, term business. our it's relative very leading strategic this question and members environment, important your an

let so, And specifically your answer questions. me

me that all, a there At of start also First point, macro with focus on. of all Intuit. outcomes inputs that applies are to we we Intuit, but we declare that are which let monitor, there

technology and predictor to inputs And of majority inputs measures. invest managing achieve. our the we inputs because product, outcomes is each where to and of are the want the have on of that investments, spend we managing ultimately inputs, around go-to-market, key And time you deliverables around around our success biggest choose

focus near delivering managing for on which the So in we're very term, you the we are undeterred long the inputs. our and customers about and intentional to focused are that in all, term relative and the we for areas are

that context of in we of we new, several believe uber in are Credit to on, continue the why is not run areas of and this but be the company, there sort growth terms as Karma. they're we how focused long-term that With

is One Guarantee. way, is By Karma typing. the somebody

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focus. the of So areas four those big are

your is just expect Thank full first But year, with year call growth? margin much to in had from in cash be free for the could -- If you any trying growth. free like that, net Any cash of quick cash cash to looks reasons to impact we for taxes Thanks. the quarter line I income there with flow the out? flow in ask somewhat free reconcile so Sasan. shouldn't flow Michelle, items growth quarter-to-quarter. why performance, cash on upside are lumpy that It a just flow an Michelle. half appreciate in maybe I the follow-up,

Typically, the would what Brad. we question, for expect. exactly is that Thanks

year, would have see we So to throughout I say continue trend as trend But this would way going I pretty are for with same we talked year yeah, same given about, that the and the the could the we the quarters that tax you we've and that fall always continue. lumpiness Yes, that would year. to so our have much expect that expect – forth.

for you questions. Thank much so Excellent. the taking

Brad. you, Thank

Your next Brad Bank America the Sills from question comes Securities. from of line of

line open. Your is

the some year on your of Service Curious latter might over that full and is the maybe see the perspective that the I traction. as get then is you with offering you're brand service question or full gains you. to getting through Full more filer new this tax to given season. conversion into more shift the might this you service here here a time, first filers wanted towards to Thank be year whether on this push you TurboTax the making existing Great. we're net of a more coming TurboTax a or into year franchise think really the ask

new your filers on there, upgrading? curious versus Just existing expectations net

Yeah. Thanks Brad. question, the for

of in that and platform But year these heads, year with that more In raising investments something in and we'll mentioned entire detail from and expert done context and is right and customers. campaign in to I'll all campaign start come your because to it franchise their assisted a seeing are by the question, talk prior that opportunity important bring TurboTax they Live need. help strategy way, has taxes prior the season. really but fact, the – made wherever a we we've are they that in the is as into it And year-assisted it's our prior get as digitally we been campaign, get our the our about after great see customers they more tax certainly earlier,

one about platform. it's really think said, the that With we Live is TurboTax way

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Your of Steve Enders comes from Citi. next from the line question

Your line is open.

question. follow seen the from between driving line Okay. I offering just service card what quarter? last engagement in that that of far, the and in of of those Great. And maybe more kind I two of guess, broader have you Thanks guess upside offerings some to a for taking what of of TurboTax I seen kind standpoint between guess up even there? those drive out full you credit terms in on the have the TurboTax co-branded the questioning. terms or guess Live TurboTax, I the so of adoption referral

Very good question. couple I'll things A Yes. that of say.

their that Money exactly really their seen got great the our these integration a strong we're this we we a First Credit we've faster year, for season folks earlier, customers, really money uptake of we've and between why Karma two not of those about have but just talked money able to are a had fast all, Steve, as is need only which because on account, which putting platforms. forming is deliver

I thing essence, seeing our I'm months actually is season of share when spent what TurboTax. over. members, results relative investments tangible do or We of done, a past we more to you. if a and whether easier we'll Karma it course, of then it this with friction, your sort you're to in much and in do say, this product But remove year about second yourself would we'll are lot Credit you six five, member to time it excited quite get want to to right for The engaging pick blockers, to the taxes make remove

good we acquiring look new season, the we again, seeing least, season. use our think customers because but that raised. We're campaign. strength in Live wouldn't we're engagement last actually very of have So as heads lot typically of excited particularly front. early about year. a with just returning raised customers I TurboTax of all it's rest that at the coming not That's this And that we're seeing And of on the the back possibilities

seven is product iterating So more season by the making way, over. days. improvements to come features real-time, And when launching we're real-time, new every

we So the that's where ahead about excited game today. as of we're sit us we and are

here to -- Okay. to the put the EPS just in how there. because and the kind on work past of context good could I one, about not as if versus what's in couple EPS getting this Great. helpful There's outlook, conservatism, And marketing, point and get the it model quick think on just more should being of terms seeing upside on is more guess, a such much on we inherent raise really the just a of I seeing necessarily work put being how there at in quarters side. in

to just love So get would of thoughts your that. kind on

do significant the very, half where because deliver if the it what of Yes, yes, year, of would deceleration. just we're a going to the and question absolutely. It's good math, you year the second first suggest delivered very half look we've you the at

the we you for confident businesses in what asking seeing I our in business and across the say thank that confident about each we're stands. all we're would sits. guidance and the So in talked where We're everything question. businesses

into principle, quarter. heading generally, is, we a third while don't our guidance we're reality the our have we think I touch

third Our the revenue is quarter. double quarter other any of

you the to quarter moving we'd third talk then like to forward. get what so, our is to all and about guidance And

way you about should the our derisked. So really, is think guidance it's

the Perfect. Appreciate taking questions.

absolutely. Yes,

Your next comes Rangan from Kash line question of Sachs. the from Goldman

Your line is open.

with to smile much. you. quarter. we’ll your forward to energy. very Thank Congratulations working and Back you, Sandeep, strong look Sasan. definitely a you, miss Michelle, on

were annually, decades like not digitized what You which taxes, done ago.

you're to Now digitize about payments.

going the ecosystem network, played $XXX traditionally I'm that on listen I And sounds what you of trillion are like in. that's that payments the big so it of through comments to Intuit quantified $X speaking. at not is broadly that more your here. look the you've curious, as kahuna billion vis-à-vis your payments, know transactions transacted payments, parts or is

potential. one frame before an You It's looks You the businesses, can of which you to payments parts in BXB, it a but receivable, much what biggest it's how be would mentioned forward? and so in has -- not going accounts participate participated Intuit of able et demystify parts is. cetera, smallest ecosystem opportunity it's got growth you like much. the that Thank your payments help of small would payable,

I'll Kash. have And for of all octane we've of Yes. Thank across your of left by But I the my question to in got love answer around lot just tank five all you payments. children. Bets. start a question, I the our saying, Big

One is, And lot. and -- seconds specifically and context, create platform movement they element things. your three are talked there XX we money invoice think I'll me that payments a of estimate, they huge come paid to need they do I small let in, about question, because an for businesses they invoice answer then the get what and of work. once happens our on

invoices And in of our have -- we about that on talk we are our $X trillion often penetration that platform. managed

is there low. penetration still Our

of start a it's that, area there not growth investment. off huge so, just because important of huge It's and And to a move that's opportunity.

still And by volume are we everybody's total not growth. the XX% significantly macro where volumes in this accelerating or decelerating, why they're charge payments way, environment have

of a one. significantly focused. we lot and are So there, There's number left that's octane

That that business before, opportunity, BXB low very other We to is course, of at QuickBooks a entire business customers. now last have network business because on is of network, the businesses. big our to We it's didn't no we digitizing penetration, launched it small focused which quarter all, one and -- checks. have millions not XX% our the between is capabilities. traditionally think this the I we've

big a that's So one.

can of for strong building customers. And then which seamless on deliver pay a couple bill capability is that a our that our ourselves, it had also just through partners. that we've we we're platform capabilities, really because experience of part far now believe And

our And go takes in payroll you mid-market, all size then, of growth, which opportunity, take just that place. is the even of the and because we're bigger and it's mid-market strength to a of seeing why payments that when

So, hopefully, that your question answers

That access. is these it you for me. allowing And that Thank you previously vectors couldn't to participate that's in you.

Yeah. Kash. Absolutely. Thank you,

Your next from Oppenheimer. question comes of Scott from the line Schneeberger

is line open. Your

question way mentioned, you still is multiple reasons, that's the going Credit year-over-year much season it's to think Congratulations – then up the much. last early in This Karma versus so Yeah. significantly, versus it's and very year in pre-pandemic. industry, behind in helped. thoughts to like Thanks why up the probably through multi-partner. year category. Sasan, and start good multi industry, Michelle of just kind you and for -- in probably Money first Sandeep. be this It's the on – tax mid-February the IRS But a your is for clearly you love just

your of of the So just may how overall? of and kind this season, cadence tax the view kind that influence the season the tax high-level Thanks. and of start it on thoughts

to for much – continue change. I to it's changed you basis. Scott. all, for so see the on important actually and It's will pay I if love because hear to reports IRS were attention the you almost reports this hard to because Yeah, a you is weekly tell question, these everybody since has almost to all

me let context. with start So

of Generally, out and COVID, What things XXth mean And to have year, last pushed and the taxes people XX do you where out peak, what they do ours every year, was were of sort of was on happening Before wait a it would to curve continuing in predictable a April. could minute were XX would until out and would which year what's were every I more year it. volume very volume start predictable, first January, like strong through lot is solutions and things to by predictable. on went the more do – about in that end XXXX, and then mid-February get and their have see would you come and pushed before to happening XXth you of generally but low April. then because there

So of two their folks actually customers. tax homes, the and pre-COVID. up of when locked completely sort working the curve when extended got row, that hit, season blew virtually, now and everybody a COVID in the When was years that in up was are fact habits it

fast in similar happen this A is we what would initially, so they came season because a people are needed forming lot pre-COVID. now we money. of And seeing what season to saw

which But to a several lot what lot have people taxes are what very know of now we've what's seeing is is And data assess a of pushing last sort – seeing, their we're minute. been for complete there's hard is I difficult, out what's much it's because we to compare of so you last all to years. we internal that compare, year-over-year, can happening the that changed so in

we're year but seeing generally this at is are remember, And hybrid again, a environment. work, people what in they're still working now

should several to days then bunch people it. times comparable forming of going is days even week, are before the of do their taxes a and generally to way in taxes of not the last last speaking, April you day due the taxes is So fast of year. think when are the about But their

color. Thanks. that appreciate all I Great.

on good were two guidance this early I Credit of this question. Karma the about But Next really gave be it bid quarter back one, may Credit here Guarantee, in call. or the a excited Guarantee year, Over you Karma contributing the a you a for you've discussed at asking beginning half. in when follow-up.

base. XX% You penetration of the mentioned the

expected Just in of curious, how this it are And at point? you could ahead you tracking be, where this? driver. a this be Is fact, to

on You segment. be how tax? meaningful this you Guarantee? Karma the through to back are Is mentioned de-risk -- Is for going this really guidance Credit progressing half

yes, Yes, sure.

let comments all, guidance Karma. company of where the is my the derisked. for That me Credit with First start includes

significantly about company second half seems it of about weren't Credit if Karma, just the comments we that So the whole it are my just math, was the really the you decelerating because do our point get the is which until guidance that's I and we half don't of first versus touch to year the principally, made, we largest is the which quarter. this quarter, year

is derisked. about so the That our that guidance way includes to it's And therefore, Credit Karma. think

reset when guidance guidance Karma I talked minus second very feel is, new when we what one, if talked the prudent. to XX%, thing The to about about we and the minus you Credit Michelle XX% recall, was we is,

stands. We also on we didn't half innovation I in having second built some in really had our think the still assumed count our that deterioration the year guidance. the first and impact of of initially And kind in we

really I said, we want with we feel very deal. at are. high XX% Guarantee very actually least our is goals are Karma members big offer Karma we that about having it be one to would Guarantee. we a good where of I because where now With have say

goals Money Credit with So input TurboTax. I on feel that integration the front are all the our progress making we're good in terms -- of front, the of fun it Karma how and guidance. with track, on are achieve play watch relying be that our to not out we're will they the rest areas those on of in year, to the but Those

Okay. Great. Thanks very much.

Yes, very welcome.

Your of question Brent Thill line the comes from from Jefferies. next

line open. Your is

XX%. slower was online QBO Sasan, services accounting than Thanks, at

any weakness I clarify, I payroll? was just payments Mailchimp wanted or weakness was really the So just in think saw you or there in

two Brent, over points. Yes,

and accounting always The rate. really should first is What the one services growth online see to you're rate online pay attention growth you to rate. going toggling growth is between overall

growing saw growing similar by the amount was growing it growth but now Mailchimp, was of quarter, question, board. at growth by reason to it Mailchimp. Mailchimp. small strength then, actually a really across With to is what XX%, online your we it's is teens, services last bit very And really down the answer teens, the little low our but driven primary growing Mailchimp slower is but that said, because brought to XX% down course, it's payments low that really,

something distracting? on it that's competitive you're do and going seeing wanting right of more out feel that it's push there that Mailchimp, is on until internal getting is not product execution ready, Follow-up or to maybe you the

place No. ago, more I clear It's a progress the it's priorities put leaders to the -- Atlanta in. I spent with execution. very and we about which not control, areas, it execution, really really than just three And very is is in great our our focus have good us. business. macro, a It's about the weeks was be just great it's feel of actually the in in on sort entire team, day

from Research. next question Zukin line from the Your Wolfe Alex comes of

Your line open. is

amount congrats on Hey, quick you taking seeing demand like, from to the time the about environment? to how and you where you you going great of you of the the influencing ones. KPIs a real to see I on that last think and call a what would the that you're great said that's hear, saw definitely kind would if for trend -- around SMB, in guys. macroeconomic macro them compare the Thanks the do the Sasan, like I maybe and first, questions but derisk them two you quarter perspective this guess, times just if and line with quarter. say guidance, count respect think I

Alex. question, Good Yes.

platform small to small best they're about me probably way, specifically the that with talk our Let are way the by XX given seeing. on business. we and data we with And it's million-plus have businesses the just start that digitizing

They're to If revenue mentioned hard a is, hiring. reserves last nearly a in but to XX% real reserves. But like And time using then sectors had still down They in business. cash are bit they're some having services, find I financial back of what still you of small still generally auto talent. quarter, continue were invest hiring. there to still are have businesses They're little cash estate, hiring, strong those their they year-over-year. couldn't that go

this quarter, things. actually two that actually we're And financial mentioned, auto hire. performance. better. is the performance estate, and it same kicked just If now, services to to in real continuing those that they're off and I have easier industries I to One, forwarded they're data hire, finding Their seeing

an are XX% and were plus, not, -- financial minus versus Like, the it was estate down I X% less down XX%, as now it think for believe than instance, XX% was and down. sort example. to And services they down minus or of auto, real they're like XX%

our actually base in performance So an improved in hardest. that actually were areas seeing hit the we're uptick those and

So environment say. that's that would sort I of the macro

charge our focus healthy which a and XX%, actually about reiterate earlier, talked growing which what has spending I payments is significant. because bit, moderated is, And is I would and although Michelle is volume consumer total innovation our and on quite working,

what on that's we're seeing business the So small side.

I On things the And we platform. have Consumer say. side, remember, XXX two consumers would million our on nearly

indicative balances last world a really points XX is this of scores little of Since our up of year, platform. outside are So are about XX%. down the and card March bit over credit credit

their those credit the to Those band hit are that their are is like XXX that XXX, hardest $X,XXX. credit where card in are on of average the balance

your on Alex. So that's the question, bit the little -- Hopefully, the of of answers a state world the consumer that side.

was detailed. That Yes. extremely actually

AI if if at plans and question guess, remiss to about a Intuit So didn't I that. generative or that And I'd appreciate we're, be It you how then, I has like ask a kind it. technology. interested really live logical, I to really does integrate get your monetize of a assistant of kind you're of would digital or functionality personal thinking having would seem seem own plus all but financial how about be all, sense

ago, glad our AI important somebody you everybody AI, talk you as And to about It's a all, question. you the put take to the you was about it to And hopefully, an thank actually strategy. that AI as Marion we've across beginning about And to I'm just to it asking. is why our Investor platform. our expose all we the being innovation heard talking is four at lot all because will curve – possible. it company. refreshed in. made AI-driven strategy, you investments of is of the at to why us fueled I'm it's data that years of we hour till took so what's core Alex, and you I in And of when delighted actually in back want front what's ask, it top expert for got the the really a I'm of surprised for Day, really now we're

at is, AI. investments fueling the data foremost, what's So around and and AI first been our we've looking success. And generative

capabilities there fact, pocket we've platform, all more areas In launch of and because it some our our it's and work confidence, where generative across of with actually put money are experts. multiple reducing the helps AI in about to finding your ways

in on terms of the that couple over money. And deal working give. are areas area And of matters people's focused The more key that advice accurate it in companies is accuracy. will this that time, a we we but we with become with

the us, working months of For before AI which, the is many, this strategy. sort this been But by for our way, accelerant, to many, is many on core an all we've buzz. became

we're with So the possibilities of the delighted future.

Awesome. Thank guys. you,

You’re very welcome.

Ladies and you session. our close question-and-answer that like Would concludes gentlemen, to remarks? with additional any

earnings safe, your Yes. with back delighted good. your XX Michelle that Once new Intuit. again, She'll our way. at as August. Bye, then, said, to until Talk us by at you we'll questions. years through with I Well, next everybody, everybody. with with the time. us and you, for be to wonderful want soon. Thank for She's CFO for thank us, be talk listen, you thank joining But August, be Sandeep in

today's call. thank gentlemen, This and conference you for participating. concludes Ladies