The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst
: It's Jackson on for Sterling tonight. The first one is actually on the better-than-expected performance for the remainder of the year from Credit
Karma. And we're curious, I mean, is it driven more by a stronger bounce-back from an impact in 2020 in your traditional verticals? Or is it more
about having increased confidence, Michelle, and I think what you mentioned on the home and auto loan side?
Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst
: Okay. Great. And then a follow-up actually on the tax business. By the end of the second quarter, we'll kind of be into the tax season. So we're
coming up on marketing time on TurboTax advertisement spend. So any color that you can give us on kind of what plans are for the marketing
budget as we ramp up into January?
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Fantastic quarter, Sasan and Michelle. Sasan, I'm curious to get your take on the issues that are being faced by the U.S. economy. We've got
unprecedented labor shortage. We've got a supply chain issue. We've got an inflation issue. A lot of these problems do pertain to the small business
ecosystem. When you think of Intuit and the dramatic transformation you've undertaken very successfully betting on AI, what can Intuit do to solve
these problems for small business customers as it plays to these near-term headwinds that we're facing from your product perspective?
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Excellent. If I could, very quick one for Michelle. How do you assess the long-term margin drivers? I mean generally, the Street thinks that margin
growth is somewhat linear. But generally, these things tend to go up in an S-curve. So we often underestimate the true profitability of companies
in the long term. So in your case, what are the things that we should be looking for that could drive increased operating leverage in the future.
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