Intuit Inc.

Good afternoon. My name is Lateef, and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit's fourth quarter and fiscal year 2019 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. With that, I'll now turn the call over to Jerry Natoli, Intuit's Vice President of Finance and Treasurer. Mr. Natoli.

Thanks, Lateef. Good afternoon, and welcome to Intuit's fourth quarter fiscal 2019 conference call. I'm here with Intuit's CEO, Sasan Ghadarzi, and Michelle Flatterbuck, our CFO. Before we start, I'd like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit's results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2018, and our other SEC filings. All of those documents are available on the Investor Relations page of Intuit's website at Intuit.com. We assume no obligation to update any forward-looking statement. Some of the numbers in these remarks are presented on a non-GAAP basis. We've reconciled the comparable GAAP and non-GAAP numbers in today's press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends. Before I turn it over to Sasan, I wanted to share that I'm retiring at the end of January, so this will be my last Intuit earnings call. It's been a privilege working with the leadership teams at Intuit and a pleasure engaging with all of our shareholders over the years. I'm leaving you in good hands as Kim Watkins has been promoted to Vice President of Investor Relations. With that, turn the call over to Sasan.

Thanks, Jerry, for your friendship and the incredible impact you've had over the years. We're going to miss you, my friend. Thanks to all of you for joining us today. We had a very strong fourth quarter, capping off an excellent finish to fiscal year 2019. Fourth quarter revenue grew 15% and full year revenue grew 13%, exceeding the original guidance of 8% to 10% growth that we provided at the beginning of the year. We're seeing our AI-driven expert platform strategy play out in our results, and we believe this positions us well for durable growth in the future. We saw continued momentum across the company in 2019. Total revenue growth was fueled by 15% growth in the small business and self-employed group and 11% growth in the consumer group. QuickBooks Online and TurboTax Online platform revenue grew over 21%, totaling approximately $3.9 billion in fiscal year 2019. We're guiding to another year of strong revenue growth for the company in fiscal year 2020. Now let's dig into our results, starting with small business. We delivered another strong quarter in our small business and self-employed group with online ecosystem revenue growth of 35% in the fourth quarter and 38% in fiscal year 2019. Online ecosystem revenue is at a 1.8 billion annualized run rate and we continue to expect it to grow more than 30%. We continue to prioritize online services to deliver more value for our customers by addressing their biggest pain points. We're working to achieve our vision of being the center of small business growth by helping our customers get paid fast, manage capital, and pay employees with confidence. Earlier this year, we launched Next Business Day Payments, a service that enables our customers to receive their funds the next business day instead of having to wait two to five days to get their money. This change is resonating with our customers. Our online payments business remains strong with charge volume up 40% in the fiscal year 2019 for customers using QuickBooks Online. Within payroll, we introduced next day and same day direct deposit to enable customers to hold on to their money longer and better manage their cash flow. QuickBooks Online payroll revenue overall grew more than 35% in fiscal year 2019. At the same time, we're seeing greater adoption of our full-service payroll offering, which is going more than 35 points faster than our self-service offering and has a higher lifetime value. Full-service payroll provides even more support for our customers as we help them pay their employees accurately and stay compliant. On the time tracking front, we improved the mobile capability of our T-sheets offering and added new features such as GPS time tracking, which increases accuracy and flexibility for both employees and employers. More than 1 million employees are tracking their time on this platform each month, up nearly 60% from last year. We are optimistic about QuickBooks Online Advanced. Our online offering designed to disrupt the mid-market by addressing the needs of small business customers with 10 to 100 employees. While it's still early days, we like what we see. We're learning a lot about these customer needs and remain encouraged that this offering could present a significant opportunity for us longer term. Now turning to tax. As we shared last quarter, we had a great tax season and grew revenue for the consumer group 11% in fiscal year 2019. Our consumer group strategy is to expand our lead in the do-it-yourself category, transform the assisted tax preparation category, and disrupt traditional consumer finance by expanding beyond tax to build a consumer platform. This is all in service to helping our customers make ends meet and maximize their tax refund. Driven by our innovation and significantly improved customer experiences, we grew both the DIY category and our share within it. Across all tax prep methods, TurboTax now has approximately 28% share of total individual returns, leaving us with a large opportunity. This season, we further personalized the tax preparation process using artificial intelligence. We went to market with our most robust free offering. We expect the strategic decisions we made this season, including our investment in artificial intelligence and in our free experience, to drive durable growth across the consumer business. especially as we look for ways to help customers make ends meet going beyond taxes. We also made significant progress in our effort to transform the assistive category by tripling the number of customers using TurboTax Live, which connects people to experts on our platform. TurboTax Live is now a meaningful contributor to our business and compared to other Intuit product lines is among the fastest ever to reach this revenue level. We feel great about the experience we delivered for our customers to drive increased confidence while improving operating efficiency for our pros on our platform. Beyond tax, our consumer platform is aimed at helping customers unlock smart money decisions by connecting them to financial products that helps them make ends meet. We have over 14 million customers registered for Turbo, up from 5 million last season. While we don't expect a significant contribution to revenue in the near term, we are identifying ways to deliver more value to our customers. As we look to next season, our team is actively developing the next wave of innovation to better serve consumers. We're confident in our consumer group strategy and excited about the opportunities that lie ahead for this business. To wrap up, we're very pleased with our results in fiscal year 2019, and we're energized for another great year in fiscal year 2020. Thank you, and let me now hand it over to Michelle to walk you through the financial details.