Intuit Q4 2007 Earnings Conference Call Transcript

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

Question: Heather Bellini - UBS - Analyst : Hi, can you hear me?

Question: Heather Bellini - UBS - Analyst : Hi, Steve, how are you?

Question: Heather Bellini - UBS - Analyst : Good. Thank you. I had a question about Digital Insight and was wondering if you could share with us some of the -- if you had any impact on your growth forecast for this year related to what's going on with the subprime mortgage mess that's -- that might be impacting banks (inaudible - audio difficulties)?

Question: Heather Bellini - UBS - Analyst : Great, thank you very much.

Question: Scott Schneeberger - CIBC World Markets - Analyst : Congratulations. Couple things. One, could you address the Fiserve acquisition, Check Free acquisition, any impact on DGIN -- or Digital Insights going forward? Just your assessment there, thanks.

Question: Scott Schneeberger - CIBC World Markets - Analyst : Thanks very much. I'm kind of skipping around here. Your decision to exit the -- and ProTax the rental product you had sent, the completely gets you out of that element all together now. Would you just discuss that strategy a little bit?

Question: Scott Schneeberger - CIBC World Markets - Analyst : Thanks. On the tax team, any -- we saw the guidance. Any discussion on the price volume breakout in TurboTax?

Question: Scott Schneeberger - CIBC World Markets - Analyst : Thanks. One final one if I could. Could you update us on timing of healthcare and any other guidance associated with that? Thanks. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Scott Schneeberger - CIBC World Markets - Analyst : Thanks. Congratulations on a nice year.

Question: Phil Rueppel - Wachovia Securities - Analyst : Thank you very much. Congratulations. A question on QuickBooks as we look into 2008. Looks like you're looking for consistent growth expectations. Have you thought about changes to pricing, marketing, advertising? Because last year you were able to raise prices and increase demand at the same time.

Question: Phil Rueppel - Wachovia Securities - Analyst : Great. Thanks. Finally, as Kiran expands his role and responsibility, any news on the CFO position and has the CEO transition slowed that search down at all? Could you just kind of give us an update there? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Phil Rueppel - Wachovia Securities - Analyst : Great. Thanks very much.

Question: Unidentified Participant - - Analyst : This is Katrina, actually in for Brent Thill. I had a quick question actually on the Quick based business. I wonder if you could tell us a little bit about the number of paid subscribers that you have? I believe it's also a product that you're using internally. If you could just give us a little more detail on kind of the rollout of that product and where you see it going, and if you'll ever give specific guidance on that business.

Question: Unidentified Participant - - Analyst : Great. Then one more question on the Payroll and Payments business. I mean, honestly, it looks like the performance came in at what would have been the low end of the original guidance, even before the discontinued -- or the spun-out customers to ADP. So I'm wondering if you could give a little bit more detail on the number of actual customers that have transitioned over ADP, and where that plays out in your guidance for '08 as well.

Question: Unidentified Participant - - Analyst : Right. I guess just to clarify, that's what I was referring to as well, that you actually came in at 12% growth, which would have been in line with your original guidance. But then also, on the 38 million for '08, is there any change in that number, or is that number still 38 million?

Question: Unidentified Participant - - Analyst : Right.

Question: Unidentified Participant - - Analyst : Great. Thanks.

Question: Unidentified Participant - - Analyst : Okay. Perfect. Thanks.

Question: Jim Macdonald - First Analysis - Analyst : Good quarter, guys. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Jim Macdonald - First Analysis - Analyst : Financial institutions, looked pretty strong. Is there anything behind that, or any seasonality there?

Question: Jim Macdonald - First Analysis - Analyst : I'm guessing maybe you're talking on the problem issues, the loan side of the business. What are you thinking about doing there. If you divest it is that critical to the rest of sentence.

Question: Jim Macdonald - First Analysis - Analyst : So just to be clear, you might divest some of those businesses or shut them down?

Question: Jim Macdonald - First Analysis - Analyst : Thanks very much. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Josh Golden - JPMorgan - Analyst : Hi. Good afternoon. My question really centers around financial policy. When you issued the debt, obviously Kiran was the CFO. Given that there will be a new CFO and the new senior leadership, and CEO, is there any change in financial policy? Will there be any change going forward in terms of quantity of share repurchases, or the treatment of the balance sheet or credit ratings?

Question: Josh Golden - JPMorgan - Analyst : Excellent. Great quarter. Appreciate it.

Question: Laura Lederman - William Blair - Analyst : Yes, hi, a few questions. One, can you talk about what you've learned in terms of Digital Insight versus what you thought when you bought it? Secondarily, can you talk a little bit about QuickBooks on-line edition? And the processing issues you had in the tax season, the season, any thoughts on the market and anything you think you need to do to make sure that doesn't have an impact this year?

Question: Laura Lederman - William Blair - Analyst : And on the QuickBooks, on-line edition, you still got 100,000 subscribers. What type of growth are you seeing? Can you give us a feel for how much the business is actually growing?

Question: Laura Lederman - William Blair - Analyst : Thank you.

Question: Terry Babe - ThinkEquity Partners - Analyst : Hi, thanks. This is Terry Babe with ThinkEquity. Question on TurboTax, can you talk about the retention that you experienced for the '07 tax season?

Question: Terry Babe - ThinkEquity Partners - Analyst : Okay, that's helpful. Then can you just speak to pricing leverage going into next season, kind of by channel?

Question: Terry Babe - ThinkEquity Partners - Analyst : Okay. Great. Then just turning to financial institutions for a moment, as it relates to the Fiserve Check Free acquisition is there a specific contract period that's up for renewal with Check Free or does that change now that the acquisition is in place?

Question: Terry Babe - ThinkEquity Partners - Analyst : Okay, great, thanks.

Question: Michael Millman - Soleil Securities - Analyst : Just following up on that last question, regarding TurboTax growth, where I think you said you expect unit volume to equal revenue, and yet you have, I think, 8 to 12% outlook, where as when I calculate the digital do it yourself growth last year, it was just a touch over 5%. There seems to be a discontinuity there between the market growth and what you're looking for. Maybe you can talk to that.

Question: Michael Millman - Soleil Securities - Analyst : I suppose -- maybe it's an anomaly, but just to comment on over the last several years that number has been boosted by the decline in the telefile. So sort of wonder if, in fact, the 5% isn't the underlying base.

Question: Michael Millman - Soleil Securities - Analyst : Okay. And regarding the finance works, is that your killer app?

Question: Michael Millman - Soleil Securities - Analyst : Is this meant to drive nonusers of on-line banking to become users, or is it meant to drive on-line banking users to become users of QuickBooks and that suite of properties?

Question: Michael Millman - Soleil Securities - Analyst : Both? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Michael Millman - Soleil Securities - Analyst : Just on the EPS guidance, what's the share assumption.

Question: Michael Millman - Soleil Securities - Analyst : Great. Thank you very much.

Question: Daniel Cummins - Banc of America - Analyst : Thanks. I had just two questions. One, curious if the delay in product development and around finance Works is related to, for example, the introduction of a small business suite, including some content by the likes of Banc of America. I think they were out with an announcement in the last week. Second, Steve, I think you had given us an idea who recently kind of like watched this space around the idea of Intuit going more enterprise, going more international, maybe taking incremental steps in that direction. So I'm curious if either of those strategies around expansion -- if they're largely covered under products you currently have such as the healthcare initiative with respect to enterprise, or if it still points to perhaps more M&A for Intuit. Thanks.

Question: Daniel Cummins - Banc of America - Analyst : Thank you very much.