Intuit Inc at Citi Global TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Steven Enders - Citigroup Inc - Analyst : Yes, yes. I think that's great to hear. I do want to talk a little bit about the segment name change. I think it's now called the Global Business Solutions segment, if I'm correct. So maybe can you just kind of walk through what that name change reflects and maybe how the business and the vision changes as a result of this?

Question: Steven Enders - Citigroup Inc - Analyst : All right. No, that's great. I know Intuit, big focus on five Big Bets. How does that strategy drive the GBS segment? And how does that fit into the own investments that you are focused on to leading that group?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. No, that's great to hear. I do want to ask about just the demand environment. I think everyone thinks of Intuit as being a pretty good bellwether for what's going on in the SMB world. So can you just talk about what you're seeing today, how you're feeling about the relative health within that segment, and maybe what you're seeing relative to some headwinds that other people have called out in that SMB segment?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. No, that makes complete sense. Maybe kind of dovetailing off of what you're seeing from the customer side but more connecting it to the consumer side of your business, I know that there's been some synergies in place between your segment and in the consumer side. Can you maybe just talk about what the interconnections and synergies with that group look like? And maybe how has that evolved over the past few years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 7:00PM, INTU.OQ - Intuit Inc at Citi Global TMT Conference

Question: Steven Enders - Citigroup Inc - Analyst : I do want to touch a little bit more around what you did in the past on the tech side and how you think about the AI opportunity moving forward. But I think before we get into that, I do want to ask a little bit about some of the changes in the outlook and some of the evolution we saw from this past earnings call. I think maybe for one, I want to start on just how you're thinking on the growth equation has shifted between ARPC and volume here moving forward. I guess are there any examples of shifts in the execution to reflect that change? And I guess, what led to the decision now that this is the right time to kind of lower that outlook?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. I guess as we're thinking about maybe some of the volume shift there, I guess, does this maybe change how you think about the size of the addressable market for SMB or the sustainability of new logo growth moving forward? Like is there a view of saturation maybe coming into that lower end of the market?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. That makes complete sense. Wanted to ask about mid-market and some of those capabilities, but I guess, before going there, I do want to ask about price. And I think one of the questions that we get from investors is how do you think about the sustainability of leveraging price as a driver of growth? And I guess, at what point do you see pushback from customers that they are unable to digest the price increases coming through?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. No, that's great to hear. Maybe shifting gears a little bit. I do want to focus on the mid-market strategy because it feels like that is a big emphasis and focus for you all right now. I guess how far up can Intuit go today up into the mid-market? And I guess what are kind of the unlocks that help your platform move into the next tier of customers and capture the next, I don't know, 100- or

Question: Steven Enders - Citigroup Inc - Analyst : Okay. That makes sense there. I guess maybe focusing on the product side there. I guess what are kind of like the key areas in the road map that you feel like still needs to be done, that can help you expand and execute on that mid-market opportunity? Like are there certain gaps or as you kind of already put it, you've kind of already addressed some of those, but what are kind of the further unlocks that will help you on that move upmarket?

Question: Steven Enders - Citigroup Inc - Analyst : That makes complete sense. I do want to ask about the AI investments that Intuit has made, and I think as former CTO and largely leading that initial effort, it would be great to get your perspective on this. So can you maybe talk about the underlying AI stack? Where does Intuit differentiate versus others? And I guess, what parts do you own versus maybe leveraging third parties for as part of your AI stack?

Question: Steven Enders - Citigroup Inc - Analyst : No, that was great. I guess, the question probably is you have all this functionality. How do you monetize it? Where do you see the use cases to potentially pull that in and drive revenue for both Intuit and also for the SMB group specifically?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. So in your view today, it's really about driving cross-sell and upsell and get people to adopt more of the Intuit product set?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. No, that makes sense. I do want to ask about Mailchimp. I think there's been a lot of talk around the combined CRM product there. I guess kind of where are we on that cross-sell opportunity, that potential in that kind of bigger combined product coming out?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. Yes, that makes complete sense. I do want to ask a little bit on the Live opportunity. I guess, how do you kind of view that for what that means for the SMB segment? I think it's maybe a little bit better understood on the consumer side of the house. But how do you view that and the impact that has on the SMB side?

Question: Steven Enders - Citigroup Inc - Analyst : Okay. No, that's great to hear. I think we're getting close on time. I think we've got about a minute left here, but I do want to ask about, there's a lot going on in the portfolio today. A lot of investments you're making. Let's say we're at Citi Tech Conference in five years. How does the GBS segment look different in 2030 versus where we're at today? And where do you see the most kind of opportunity or potential based on what you're investing in?

Question: Steven Enders - Citigroup Inc - Analyst : Okay, awesome. Well, I think we're out of time here. But Marianna, thank you so much for being here. I think we all learned a lot about the GBS segment. So we really appreciate having you here.