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 second quarter fiscal year 2021 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 Kim Watkins, Intuit's Vice President of Investor Relations. Ms. Watkins?

Thanks, Lateef. Good afternoon, and welcome to Intuit's second quarter fiscal 2021 conference call. I'm here with Intuit's CEO, Fasan Ghadarzi, and Michelle Clatterbuck, 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 2020, and our other SEC filings. All of these 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. And with that, I'll turn the call over to Sasan.

Thanks, Kim, and thanks to all of you for joining us today. Second quarter results reflect strong momentum across the company. Small business and self-employed groups grew double digits, Credit Karma performed very well, and we are very encouraged by our early results this tax season. We're on track for Intuit to deliver another year of double-digit revenue growth. We are confident our game plan to win is durable, accelerated by digital tailwinds given the pandemic. Our platform is well-positioned to help customers take advantage of a shift to virtual solutions, acceleration to online and omnichannel capabilities, and new ways to reduce debt and save money. The velocity of our innovation is helping our customers at a time when they need us most and positions us to accelerate growth in light of these structural and behavioral changes. We closed the acquisition of Credit Karma on December 3rd and welcomed 1,300 Credit Karma employees to the Intuit family. We bring together a large customer base of 110 million Credit Karma members and 57 million Intuit customers to help them unlock smart money decisions. Credit Karma's data platform creates powerful network effects through personalized financial offers, benefiting members and partners, while adding a new monetization engine into it. We are off and running, executing on our innovation roadmap, which I will touch on shortly. Since we're in the middle of tax season, let's start there. We're very confident in our strategy and momentum, extending our lead in the do-it-yourself category and transforming the assisted segments. We're making great progress serving fast-growing, underpenetrated Latinx, self-employed, and investor segments. This season, we also expanded our free eligibility to better serve customers receiving unemployment benefits. We continue to aggressively transform the assisted segment by reshaping how 86 million filers can get their maximum refund with confidence virtually. We feel great about how the season is progressing. Let me now shift to our big bets. We're seeing strong momentum and accelerating innovation across the business with our AI-driven expert platform strategy and five big bets. These big bets are focused on the largest problems our customers face and represent durable growth opportunities for Intuit. I'll highlight our progress, covering big bet number one last, as it accelerates innovation across our platform and is foundational to the other bets. Our second big bet is to connect people to experts. we're solving one of the largest problems our customers face, lack of confidence, by connecting people to experts virtually with TurboTax Live and QuickBooks Live. With TurboTax Live, we're transforming the $20 billion assisted category by providing 86 million filers the opportunity to access tax experts on our platform. We continue to lead the way in shaping the category, helping customers understand how to get their taxes done in a new way with our marketing campaigns, and for a limited time, offering free live expertise to filers with very simple returns to attract them into the category. We have significantly improved the TurboTax Live platform by making it easier for customers to access an expert throughout the filing experience. And now, with our innovative full-service offering, our customers can hand off their return to an expert who will prepare and file it for them. We continue to make progress with QuickBooks Live, which is built on the same expert platform. Entering our second peak this season with Cookbooks Live, our customer base has doubled from a year ago and retention rates are improving. Although it's early days for Cookbooks Live, we're confident in the long-term opportunity to penetrate non-consumption. Our third big bet is to unlock smart money decisions. We're making progress towards our goal of creating a personal financial assistant that helps consumers find the right financial products with more money in their pockets and access to financial experts and advice. Our strategic focus is to grow the core, including credit cards and personal loans, expand growth verticals, including home loans, auto loans and insurance, and develop emerging verticals focused on money innovation, including savings and checking accounts. As we make personalized financial offers to customers across our platform, Credit Karma provides an additional monetization engine, increasing our combined wallet share with both free and paying customers. We've made great initial progress combining our capabilities to fuel success of the Credit Karma platform. First, to create a complete financial profile for existing and prospective members with customer consent, we've combined income data from 26 million TurboTax returns with Credit Karma. The combination of verified income data with credit history will enable Credit Karma to better personalize offers driving engagement and creating a win-win-win for our members, partners, and us over time. This enables us to grow in our core verticals for credit cards and personal loans and growth verticals for insurance and mortgages. Second, we integrated Credit Karma money into the TurboTax filing experience, providing approximately 36 million TurboTax customers the ability to deposit up to $88 billion of tax refunds into a no-fee checking account. And third, we're migrating Turbo users to Credit Karma. We're very excited about the journey ahead of us. Our fourth big bet is to become the center of small business growth by helping our customers get paid fast, manage capital, pay employees with confidence, and grow in an omnichannel world. Sixty percent of small businesses struggle with cash flow, and we're innovating with velocity to create solutions for customers to overcome this challenge. We're making it even easier for customers to get paid fast with tools like payment-enabled invoices. by auto-enabling new customers to accept payments immediately, increasing our charge volume. We continue to innovate with QuickBooks Cash, a small business bank account that helps our customers manage working capital by providing visibility into their full financial picture, along with the ability to move money instantly and ensure their money is working for them, while taking advantage of the built-in accounting of QuickBooks. We integrated bill pay into the offering this quarter. We're seeing growing adoption and active use of QuickBooks Cash, including a meaningful increase in activation rates. We're making good progress with QuickBooks Commerce, launched last September. QuickBooks Commerce is designed to better serve the 1 million product-based businesses on our platform and 6.4 million product-based businesses in our core market. The offering provides inventory and order management tools small businesses need to grow their businesses in an omnichannel world. We continue to add new partner iterations, enabling a streamlined experience. We're further bolstering the offering with the acquisition of OneSaaS in early February. OneSaaS is an infrastructure platform that integrates data streams from multiple sources of e-commerce platforms. This will help our customers see a complete view in QuickBooks. It's still early for both QuickBooks Cash and QuickBooks Commerce, but we're encouraged by what we're seeing. Our fifth big bet is to disrupt small business mid-market with QuickBooks Online Advanced. The features we're introducing individually tailor the offering to the needs of small businesses with 10 to 100 employees at a disruptive price point. We continue to build out the offering and innovate to better serve these mid-market small business customers by adding more deeply integrated partners important to both acquisition and retention. And finally, our first big bet, revolutionized speed to benefit, enables us to put more money in our customers' pockets, eliminate friction, and deliver confidence at every touchpoint by using AI and customer insights. In TurboTax, we're leveraging advanced models to proactively offer customers the right resources at the right time to keep them engaged and give them confidence to file their taxes. And in QuickBooks Advanced, we're using AI to detect anomalies in price and quantity on customer invoices, saving our customers time and frustration of having to resend an invoice. Our live offerings are benefiting from a common AI platform that's creating efficiencies at scale, driving profitable growth. Across all of our big bets, we're building momentum and accelerating innovation, which we believe positions us well for durable growth into the future. I'm excited about the opportunity we have ahead of us, and I'm proud of the progress we're making as a team. Now let me hand it over to Michelle.