Intuit Inc at Wells Fargo TMT Summit Transcript

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

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Do you want to just start with your background? We know your General Manager of the Consumer Group now, but just the evolution of your time at Intuit. And also, if some of that at all ties with what keeps employees there for so long?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : That's a really interesting tie between contact center and the live expert network.

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : We were joking before this. It's usually kind of a lighter seasonal conversation around tax. It doesn't feel like that's the case this year for a few different reasons. But before we get into the kind of the more forward-thinking conversations, I wanted to just take a moment to reflect on the 2024 filing season and how that played versus your expectations. The last couple of years have had some filer noise attached to just some COVID-related filing impacts. So was '24 the year you started to see more normalization of those kind of filer statistics? And how would you characterize the puts and takes of the season from the Intuit perspective?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : We're going to hit on live a bunch of times, aren't we?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : One question that we're getting a lot of, so I just want to kind of introduce it into the start of the conversation as well is just there's some back and forth. There's always noise around tax season and different experimental programs and things. More recently, there's been questions around new administration and what areas will come into focus versus what might be deemphasized. I thought Sasan hit it very succinctly on the earnings call. But just in terms of Intuit's view on if that at all changes the opportunity set for you, how you're thinking about the new administration alongside all of the important things that you're working on, just how to provide Intuit's perspective on that?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Yeah. That all makes sense. Just before we get into some of the specific drivers, the long-term targets acknowledging the earnings growth of Intuit remains as consistent as ever. The mix shift of revenue growth has changed a little bit. And within that, the consumer targets have come down a touch. The Credit Karma targets have just been kind of -- they've evolved, right, as that business has evolved and cyclicality has certainly played a part in that. Just help us understand what goes into that planning cycle, that decision to tweak those long-term ranges, what the considerations are and what gives you confidence in the 6% to 10%, the 10% to 15% on a go-forward basis? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 11:00PM, INTU.OQ - Intuit Inc at Wells Fargo TMT Summit

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : I mean you touched on it a few times, so I just want to follow up on it now. The decision to advertise earlier, what informs that decision? What were you looking at that maybe there's a signal here that we haven't been taking advantage of?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : So that's actually super interesting. I think super important in the context of just digesting Q1 because it alters the expense profile a little bit. And Intuit historically does not adjust guidance until after tax season, so that's very normal for that not to happen. But it has led to a lot of investor questions on is the margin shape changing at all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 11:00PM, INTU.OQ - Intuit Inc at Wells Fargo TMT Summit And I understand -- the way I understand this is you take a full year planning perspective. So you're not -- if you're adding budget, you're just you're spreading it differently. So investors shouldn't be interpreting Q1 as budget will continue to increase the way that I think some are, correct?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Okay. That's all super helpful. What else should we think about in terms of the drivers of growth within TurboTax? We know you have dominant market share in DIY. We've seen Live success, and you just provided some metrics around that. Help walk us through things like fully assisted do-it-for-me type of tax offering? Is that something we'll see more effort behind this year? And then maybe business tax also, if you can kind of touch on that, how that sort of might fit into the overall strategy?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Let's enable that journey of what you touched on with the experts and localization. Was there a scale factor or learning factor that you needed to get to to be able to match experts with more of an optimal fit than what you've historically done?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : I mean it seems like that could just help with overall retention and engagement.

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Is that the right way to think about it? Where else should we think about that potentially adding value? Customer success stories probably go up. But what are the sort of the markers that you're going to continue to watch?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : So shifting a little bit to Credit Karma but tying it together. We've always thought about Credit Karma as with TurboTax, there's kind of a gap in engagement, generally, right? Like you file your taxes and just kind of generally wait. And I appreciate that you're saying you can engage with them earlier. But what Credit Karma is quite good at is getting you to engage very regularly, right? Any of us have the application have been convinced to open it over and over again for different reasons, right? So is that part of the thought process on just capturing more of the customer profile and being able to engage more actively? Maybe just help us tie together the coupling of Credit Karma and TurboTax or what you see and where that could ultimately end up from a user perspective?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Can we also just touch on the improvements that Credit Karma saw in the most recent quarter? It certainly sort of outpaced our expectations. How much of that is just getting through some of the macro? Or are there product improvements you continue to embed that you would point us towards that should also enable more conversion? Maybe what you're seeing that's driving the improvement?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Where does generative AI fit within the discussion in consumer? And I ask for several reasons. I mean the first is it's not lost on us the value of the data sets that Intuit has, right? We were talking about your personal story is the way that you articulated the tax returns. Intuit is also -- I think you hit on this earlier, too, much more technologically advanced than I think most outside of Silicon Valley realize, right? You're in Mountain View, and you're generally in the leading edge in terms of leveraging new technologies. So help us paint the picture of where generative AI could come in and also assess the risks of that data being sensitive and important and personal as well.

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : It was a great promo. So it sounds like this is more than just like the next year of TurboTax. This sounds like a little bit more of a generational shift in the product this year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 11:00PM, INTU.OQ - Intuit Inc at Wells Fargo TMT Summit

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Super interesting. I've asked many members of Intuit this question over time, and it's about marketing, and you maybe alluded to a little bit of this. Intuit has these brands that are each strongly recognized in one way shape or form. Everyone knows TurboTax is the de facto software solution. QuickBooks is dominant in accounting, but there are many users who don't even recognize that it's the same company that it's Intuit sort of at the core. How do you think about that from a marketing perspective on the consumer side? You have Credit Karma strong brand. You have TurboTax strong brand. Is there synergy in advertising them together? Do you think about using Intuit as more of an umbrella on top of all these things more? What are the kind of trade-offs you're assessing with that?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Do you think about -- I mean, there have been little hints of this from time to time using the live network in some way as more of a personal finance system. How holistically could consumer finance become for Intuit? If we were thinking much further out five years, you're looking at the technologies you have, what are the biggest problems you could eventually help solve? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 11:00PM, INTU.OQ - Intuit Inc at Wells Fargo TMT Summit

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Okay. I think we're running lower on time. So I'm going to leave it to you for the closing statement. And I'd like to frame it in more of the three-year perspective. Intuit, I know, is always thinking multiple years in the future. But your big North Star goals for the consumer group, the kind of the three-year milestones, the priorities that you're thinking through that hopefully we're talking about along the way over the next several years.

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : Yeah, it's very Intuit. Very optimistic note to send us off to happy hour on. Mark, very much appreciate you making the time. That's great.