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 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 fourth quarter fiscal 2020 conference call. I'm here with Intuit's CEO, Sasan 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. And once 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. We had a very strong fourth quarter, capping off an outstanding year. Full-year revenue grew 25%, including the addition of Credit Karma. Total revenue growth was fueled by 16% growth for the small business and self-employed group and 14% growth for the consumer group, while Credit Karma had a very strong year, delivering another record quarter in Q4. Combined platform revenue, which includes QuickBooks Online, TurboTax Online, and Credit Karma, grew 39%. to $6.6 billion in fiscal year 2021. This includes 18 points from the addition of Credit Karma. I'm proud of what the team has accomplished this year, and our game plan to win remains durable. Let me now turn over to tax. This year marks our fourth consecutive year of double-digit revenue growth. We've built a durable strategy, and we've made outstanding progress this year. With customer growth of 6%, and our share of total returns up approximately one point. We extended our lead in the do-it-yourself category by focusing on underpenetrated segments, including investor customers, where we tripled the growth rate from last year. We continue to transform the $20 billion assisted segment with TurboTax Live, accelerating total customer growth by nearly 100%. We have a highly predictable model and a platform with significant runway for growth as we accelerate innovations. Recently, we announced plans not to renew our participation in the IRS free file program. We expect no impact to revenue from this decision. I want to make sure that you understand how this decision fits within our overall strategy. Free offerings are a critical part of our strategy to serve and grow with customers over time, offering benefits that power their prosperity. Intuit has delivered nearly 100 million free tax filings over the past eight years, and with nearly 90% of those free tax filings coming outside of the IRS free file program. Looking ahead, with no IRS free file program constraints, customers can enjoy all of the innovation we have to offer on our TurboTax, Credit Karma, and Mint platform. 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 big 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 bid market. Today, I'll highlight the notable progress we've made this quarter on three of these big bets and will provide a detailed update on all five big bets at Investor Day next month. 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 who have previously relied on in-person assistance the opportunity to access tax experts to help them do their taxes or complete their return digitally. This expertise provides confidence for consumers and creates a halo effect for our entire TurboTax experience. The TurboTax Live funnel was strong this season. Customer awareness grew over 20%, and TurboTax Live customers new to Intuit grew more than 100%. Our full-service Do It For Me offering attracted new customers from the assisted segment at a rate nearly 25% higher than our TurboTax Live Do It With Me offerings. 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 assistant 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 offering, 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 another record high revenue quarter in Q4, with the number of members reaching a new all-time high fueled partly by the TurboTax integration, and monthly active users and frequency of member visits remained strong. Within the core, credit card and personal revenue achieved another record high on a combined basis, reflecting an increase in transactions per member. The growth verticals also achieved an all-time revenue high again this quarter, 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. Just this past month, For just this month, we announced the integration of QuickBooks Online Payroll to deliver a better checking experience to a portion of our small business employees that help them manage all aspects of their finances all in one place. These results are evidence that successful innovation drives Credit Karma members to the platform, creating more opportunities to connect them with products that are right for them, resulting in more monetization opportunities for Intuit. The all-time highs we achieved are driven by focused innovation in both bolstering our proprietary AI-powered Lightbox technology and investing in growth verticals such as home and auto, as well as pent-up demand from our partners. Lightbox enables Credit Karma to present offers to members who have a higher likelihood of approval. Partners' usage of Lightbox in Q4 is now at an all-time high, with over 50% of credit card and over 40% of personal loan transactions flowing through versus less than 40% and 20% a year ago. This is the power of a network effect, solving a two-sided problem. We expect pent-up demand across the core verticals to taper this coming year after a very strong year of investments by our partners, returning to pre-COVID investment levels. I'm very pleased with our progress and excited about the upcoming innovations. I'll end by circling back to our first big bet, which is our foundational bet to revolutionize speed to benefit for our customers. Our goal is to put more money in our customers' pockets, eliminate friction, and deliver confidence at every touchpoint by using AI and customer insights. This year, we accelerated our use of AI, increasing the number of models deployed across our platform by nearly 50%, saving our customers millions of hours of work. Our application of AI has dramatically increased the number of experiments we ran by more than 35% this year, made it easier for our TurboTax customers to never enter data, saving them millions of hours of manual entry, and modernized our payroll offering, tripling release velocity. We are very pleased with our results and remain confident in our game plan to win, accelerated by digital tailwind. 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. We will continue to invest aggressively, including in key talent, to drive even faster innovation going forward. Now let me hand it over to Michelle.