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 third 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?

Thank you, Lateef. Good afternoon and welcome to Intuit's third quarter fiscal 2021 conference call. I'm here with Intuit's CEO, Susan Godarzi, 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 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 have 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.

Great. Thanks, Kim, and thanks to all of you for joining us today. We had a very strong third quarter. Small business and self-employed group revenue accelerated to 20% this quarter, and Credit Karma performed very well with revenue at an all-time high for the quarter. Our tax results through the May 17th IRS tax filing deadline reflect another strong season. As a result, we are raising our revenue, operating income, and earnings per share guidance for fiscal year 2021. Let me start with tax. We're proud of how we delivered for our customers and executed our strategy of expanding our lead in the do-it-yourself category and transforming the assisted category. Based on our performance through the May 17th IRS tax filing deadline, we expect our consumer group revenue to grow 11% to 12% during fiscal year 2021. We expect total IRS returns to be up approximately 1% and our share of total returns to expand an estimated one point for the tax filing season. This results in expected total customer growth of 6% and double-digit revenue growth for the fourth year in a row. The average revenue per return increased, reflecting a stronger contribution by TurboTax Live and MixShift to our premier offering used by investors. We made significant progress this season. Within the do-it-yourself category, we continue to double down on underpenetrated segments, including Latinx, self-employed, and investors. We saw a significant acceleration in investor customer growth this season and expected to more than triple over last year. We expect the base of customers paying us nothing to grow 6% this season. Within transforming the assisted category, we continue to make progress connecting people to experts with TurboTax Live. We expect customers to grow more than 90% this season compared to 70% growth last year and TurboTax Live customers new to Intuit to be up more than 100%. More broadly, our AI-driven expert platform strategy and five big bets are driving strong momentum and accelerating innovation across the company. These big bets are focused on the largest problems our customers face and represent durable growth opportunities for Intuit. As a reminder, these bets are revolutionize speed to benefit, connect people to experts, unlock smart money decisions, be the center of small business growth, and disrupt the small business mid-market. Today, I'll highlight the notable progress we've made this quarter on three of these big bets, and we'll provide a detailed update on all five big bets at Investor Day in the fall. Our third big bet is to unlock smart money decisions. With Credit Karma's data platform and powerful network effects, we're making progress towards our goal of creating a personal financial assistance that helps consumers find the right financial products, put more money in their pockets, and access financial expertise and advice. To deliver on this goal, 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 digital money offerings, such as savings and checking accounts. Credit Karma also provides an additional monetization engine increasing our combined wallet share with both free and paying customers. Credit Karma achieved its largest quarterly revenue ever in Q3, while the number of members, monthly active users, and frequency of member visits reached all-time highs. Within the core, credit card and personal revenue was at a record high on a combined basis, reflecting an increase in both the number of partners and member engagements. The growth verticals also achieved all-time high revenue, reflecting strong momentum in auto insurance, followed by home loans and auto loans. And we're developing the emerging verticals by focusing on innovation with Credit Karma money, part of our digital money offering. We continue to make great progress combining our capabilities to fuel the success of Credit Karma. Since the acquisition closed, TurboTax customers and migrating Turbo users accounted for 40% of new Credit Karma members, significantly accelerating new member growth. We're pleased with the initial performance of Credit Karma money, which we integrated into TurboTax filing experience, offering approximately 36 million TurboTax customers the opportunity to deposit up to $88 billion of tax refunds into no-fee checking accounts. Providing this product integration helps members achieve their financial goals, drives member engagement, and creates a new revenue stream for the company in the future. The more we successfully innovate for Credit Karma members, the more times members visit the platform, and the more opportunities we have to offer members products that are right for them, resulting in more monetization opportunities for Intuit. Our fourth big bet is to become the center of small business growth by helping our customers get customers that 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 continuing to innovate to create solutions for customers to overcome this challenge. We are excited about our progress with QuickBooks Cash, a small business bank account that helps our customers manage working capital. QuickBooks Cash presents a full financial picture along with the ability to move money instantly and ensures that their money is working for them while taking advantage of the built-in accounting of QuickBooks. We achieved the milestone this quarter as QuickBooks cash balances surpassed $100 million, and we're seeing strong active use among both new and existing customers. Our fifth big bet is to disrupt small business mid-market with QuickBooks Online Advanced. The usage of services such as payments, payroll, and time tracking with QBO Advanced customers is more than 30% higher than the next QBO offering in our lineup, contributing to higher ARPC while overall engagement is up over 10 points year-to-date. We're very pleased with our results and remain confident in our game plan to win, accelerated by digital tailwinds. Across all of our big bets, we're building momentum and accelerating innovation, which we believe positions us well for durable growth in the future. Now let me hand it over to Michelle.