Intuit Inc at Nasdaq London Investor Conference Summary

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

Question: Keith Weiss - Morgan Stanley - Analyst : <_ALACRA_META_ABSTRACT>I'm presaging my first question here. There's a lot going on at Intuit. Some really interesting initiatives in the mid-market. I think it was a very important tax season last year and a couple of breakthroughs. And I definitely want to dig into all of those details. But I thought we could start with the newest news item, which was the OpenAI partnership. And I think this is a really interesting one to dig into because there's still a lot of debate amongst investors trying to understand the nature of that relationship, but also a lot of fear amongst investors in terms of potentially letting the fox into the henhouse, if you will, that there's been concern about OpenAI or just LLMs, in general, emerging as a competitive dynamic or for tax. So can you talk to us maybe a little bit about the relationship, the nature of the relationship, and how you guys get comfortable with that potential risk, if there is one at all?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. So it kind of sounds like, from an Intuit perspective, this is a new marketing channel. This a place where you could expose not necessarily an advertisement, but a little bit of your product, a little bit of the data, a little bit of your know-how about tax consumer finance to the end customer. And then it's basically a link through to the broad application. If you really want to get down to business, if you will, if you want to do your taxes, if you want to get that credit card, you're going to be going to an Intuit property to transact that.

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. So we're heading into tax season, always an exciting time at Intuit. Maybe just high-level thoughts, how are you guys feeling going into this tax season? And is anything changing versus what was the game plan, I'm sure you're not going to give us a whole game plan, but what the game plan was generally going into last tax season?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. I want to double-click on the assisted side of the equation. That was really, from my perspective, the eye-popping number in the tax results last year, how well you accelerated that live program, and assisted was a big part of that. And what's so important about that is the expansion of the market opportunity. So correct me if I'm wrong, I think you've talked about DIY is about a $5 billion annual opportunity. Getting into assisted takes you to $35 billion.

Question: Keith Weiss - Morgan Stanley - Analyst : So a big expansion. The localization, there's always something that piques my interest, but also gets me a little bit worried with Intuit. Like when you guys went into assisted, as a software analyst, we're like, wait a second, people are getting involved in the equation. Is that going to be more expensive? Is that going to be higher gross margins. But with the live offering over the past couple of years, you guys have proven out an ability to do live at very good gross margins. Now the more recent one is localization. The storefronts popping up that is part of the Intuit network. Should we be worried about that dragging on gross margins or dragging on OpEx and making it less profitable for Intuit overall?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. And you talked about the expansion from 400 locations to 600 locations. The rationale being if there's an adviser within 50 miles of the potential tax customer, there's a 5x conversion, right? Is there some formula that we should be doing in terms of understanding the extent of -- is it going to go to 600 locations to 800 or 600 to 6,000 based upon that 50-mile radius?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. So when we're talking about the opportunity on assisted, maybe you can help us compare and contrast sort of the journey that an assisted customer takes versus the journey that a DIY customer takes? So we've been trained by Intuit to think about top of funnel, about free to paid conversion. With assisted, what's the dynamics in terms of getting an assisted customer to switch from his current relationship, because they have some relationship that makes them switch to assisted to use an alternative product like Intuit?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. Let's talk briefly about sustaining the top of funnel when it comes to the DIY side of the equation. We've talked for a long time about free being a good top of funnel mechanism. Last year, you guys saw an additional decline. I think it was about 2 million unit decline in the paying nothing customers. Is that something we should be concerned about in terms of mainly the top of funnels getting skinnier or are you guys just being more selective in terms of who you're targeting based upon what you know about who's more likely to convert?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. And I guess the other side of the equation is also retention, improving our retention is a great way to keep up units. Can you talk to us about how trends in retention have been going over the past couple of years and what you guys can do to improve that retention over time?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. You mentioned Credit Karma, like you said, it's a little bit of a pivot to the broader business. How much juice is there left to squeeze? And I guess I've had Credit Karma on board for a couple of years now. You've had programs to bring the two LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:30AM, INTU.OQ - Intuit Inc at Nasdaq London Investor Conference together and use Credit Karma as that lead generation tool for tax. Is there anything new, any new dynamics in that that's going to enable that relationship to keep yielding, if you will, for TurboTax?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. A lot to talk to in both Credit Karma and TurboTax, but I want to make sure that we focus some on the Global Business Solutions segment. Also a lot going on there. To me, the big story, right, in Intuit is this move upmarket. We've been moving upmarket for a while now. We've gone QBO, QBO Advanced. But now, we have Intuit Enterprise suite, right? Can you talk to us about what the Intuit Enterprise suite enables? Where it lets you go in terms of customer size, market opportunity versus what you're able to achieve, where are you able to go with the QuickBooks Online Advance?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. In that go-to-market strategy, I think you could of course correct me a little bit because I've been focusing a lot on the opportunity within the base, right, basically to better retain graduates, like the companies that exceeded that $10 million, they would go to a competitor because they didn't have the ability to consolidate or some higher level of functionality. How should we think about the opportunity and the go-to-market focus of retaining the base versus like you're talking about actually going out and getting net new customers to the platform?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. And a couple of months back at Intuit Connect, you guys released the Intuit accounting suite. To what degree does these two kind of come together giving the accounts a more robust solution of their own to be able to better help you service a more complicated customer? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:30AM, INTU.OQ - Intuit Inc at Nasdaq London Investor Conference

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. You talked about online services, the potential for higher attach. If you wanted to give me a Christmas gift, attach rates would be a great Christmas gift in terms of Intuit. But any color you could give us, one, just on the attach rates and the uplift that you see with the mid-market customers? Because it just naturally feels like there are larger customers that have higher payment volumes. They have higher employee counts, right? There's a bigger opportunity for online services. \So maybe talk about a lot of the services have been around for a while, payments and payroll. And then also the opportunity from the agentic side of the equation because you guys have been rolling out a lot more functionality, how are we seeing that come into the P&L?

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. The next extension of that online services is going from what has traditionally been very much a back office-focused platform, at least, in our nomenclature in financials, payroll payments, to more CRM focused with Mailchimp. Mailchimp has been, I would say, the more difficult child versus Credit Karma, which has worked splendidly well. Mailchimp has had some growing pains. But you guys are very confident in the potential for acceleration in Mailchimp into the back half of this year. Can you talk to us about some of the fixes that have been put in for Mailchimp to improve that product market fit? Maybe some of the early signs that you guys are seeing that gives you that confidence in acceleration into or exiting this year? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:30AM, INTU.OQ - Intuit Inc at Nasdaq London Investor Conference

Question: Keith Weiss - Morgan Stanley - Analyst : Got it. I think we have time for one last question. I want to kind of wrap this all up on the margin side of the equation. A lot of really interesting opportunity for Intuit on the top line growth side of the equation. You're unlocking big new market opportunities on assisted, big new market opportunities in the mid-market on the GBS side of the equation, you are adding salespeople to go after these, you're adding locations. Yet, you remain confident in margin expansion in revenues outpacing the level of expense growth despite having some really good product initiatives to invest behind. So how are you thinking about that balance? And what helps drive the additional leverage in the company?

Question: Keith Weiss - Morgan Stanley - Analyst : Outstanding. Unfortunately, that takes us to the end of our time. But thank you for sharing a very exciting story. I'm very excited about Intuit, and I'm sure everyone out here is as well.