Intuit Inc Q2 2025 Earnings Call Transcript

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

Question: Siti Panigrahi - Mizuho Securities USA LLC - Analyst : Great. Congratulations on a great quarter. Of course, now this is a focus on taxes and at this point. And Sasan, what's driving your increasing confidence deliver that 7% to 8% guidance for consumer. Any color on the trends that you are seeing in the assisted category since you started promotion this year earlier in October. Also, if you could cover on the same, we hear some concern about those initiatives. Wondering how Intuit can drive efficiency for IRS.

Question: Kirk Materne - Evercore Group LLC - Analyst : Congrats on the good quarter. Sasan just wondering if you could talk a little bit about just the SMB or the small business environment. I think we all came into this year hoping that we'd be seeing a little bit of green shoots in terms of the economic activity level. Has anything changed on that front in your view, just given some of the macro dislocation perhaps questions around tariffs, things like that. I was just curious if you could give us a little bit of an update on what you're seeing on the small business side right now.

Question: Keith Weiss - Morgan Stanley & Co. LLC - Analyst : Congratulations on a really solid quarter. Maybe one for Sandeep on the expense side of the equation. Coming into this year, you guys had made room for more aggressive investment to sort of get the skill set needed on board for you guys to progress on your plans on a go-forward basis. Thus far in the first half and definitely in this quarter, we saw a really impressive margin expansion, a lot of leverage showing up on that bottom line. Is that in any way due to maybe the expense timing because are you guys still planning on basically like hiring back to the same type of head count levels that we were talking about when we came into the year? Or is there perhaps more sort of opportunity for driving leverage than we're thinking about earlier?

Question: Keith Weiss - Morgan Stanley & Co. LLC - Analyst : And just to clarify on point number one on the hiring. It sounds like your hiring is going to plan. So there wasn't like an outperformance in Q2 margins that came from delayed hiring in any sense.

Question: Brent Thill - Jefferies LLC - Analyst : Sasan, I know you launched some clever and innovative new marketing early in the tax season. I'm curious if you've seen any early signs of different reaction or traction? What has been the response? And is it -- does it give you little more confidence in heading into the tax season based on what you're seeing from that? Any color would be helpful.

Question: Steve Enders - Citigroup Global Markets, Inc. - Analyst : I guess I wanted to ask just on the strength that maybe you're seeing in the Advanced in the Enterprise Suite the side of the equation. Just how are you kind of thinking about the productivity rates of the sales force that you've built out, how you're thinking about further investments and just kind of how you're viewing that opportunity to move upmarket further invest behind the strength you're seeing there?

Question: Kash Rangan - Goldman Sachs & Co. LLC - Analyst : Congratulations on the results. And Sasan, I can always count on you to be the beacon of hope for SMBs. So I know that you have been progressively feeling better and better about the SMB spending environment. If we take a step back, Online Ecosystem was barely a blip on your income statement. Now it's a multibillion dollar business unit, right? So near term, longer term, how should we think about the Online Ecosystem revenue. And within that, QBO Advanced certainly seems to be off to a good start. What is your dream scenario? What would make you ecstatic as to the outcome of QBO Advanced, how big of a business could that be? And although it's a little bit too early, but if you dream the dream, how big of a business could IES be within the confines of Intuit?

Question: Brad Sills - BofA Securities, Inc - Analyst : I wanted to ask a question on tax as we are heading into the tax season here. You talked about the effort to advertise to the full service filer in that CPA segment, wanted to get any perspective on how that might be tracking? Are there any leading indicators that suggest you're seeing the traction ere in the full service segment as a result of some of the ads we've all seen on TV and just general outlook for full service as we head into the season.

Question: Alex Markgraf - KeyBanc Capital Markets Inc - Analyst : Sandeep, could you maybe just talk about the Consumer Group result, you noted better than guided. Just curious kind of what surprised particularly in the context of a slower start to the season.

Question: Alex Markgraf - KeyBanc Capital Markets Inc - Analyst : And just to clarify, no change in expected seasonality as you're modeling the business? Is that a fair statement? .

Question: Taylor McGinnis - UBS Securities LLC - Analyst : Maybe I'll ask on the Online Services business because I think you said that, that accelerated to 30% growth excluding MailChimp, which is really solid. So when we think about the growth potential of Online Services in the second half, can you just unpack that a little bit more so the acceleration really being driven maybe by scaling in the AP payments business. Is it possible as that continues -- we could continue to see 30% plus growth potential. And then maybe just like the offset with MailChimp, I think you mentioned that we're going to be lapping some pricing changes. So is it possible that we start to see some declines in that business.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Nice to see continued success in the business. I just wanted to ask a follow-up on IES. Really nice to see the early traction here. Maybe if you were to think about some of the early customer wins that you highlighted during your prepared remarks, are you typically landing greenfield with a lot of these opportunities? Or are there wins that you have where you're consolidating budget and displacing a number of different point solutions. And maybe alongside that, when we think about early customer feedback, have there been any push points on additional functionality that customers are looking for that informs your future road map with IES?

Question: Scott Schneeberger - Oppenheimer & Co. Inc. - Analyst : Yes, it's the tax question, essentially two, revenue per return in Spirit. The first part, Sasan, you changed your TurboTax Live Full Service pricing to the traditional peers that you've used with other products, more to form-based pricing and you noted a very high customer experience for -- in full service. Just curious how that's being received? Do you think it's the right formula now for that product? And then the follow-up question is 1099-Ks this year. Now that we're about a month into the tax season, are you seeing the pickup there with the lower threshold for those to go out. And how might that have an impact on revenue per return in this tax season if, in fact, you are seeing that significant volume pick up?

Question: Scott Schneeberger - Oppenheimer & Co. Inc. - Analyst : Congrats on the quarter.