Intuit Inc.

Lateef and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit's third quarter fiscal year 2022 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 third quarter fiscal 2022 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 2021, 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 statements. Some of the numbers in these remarks are presented on a non-GAAP basis. We've reconciled the comparable gaps and non-gap 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. I'm proud of our continued momentum as we execute on our strategy to be the global AI-driven expert platform powering the prosperity of consumers and small businesses. We have a nearly $300 billion addressable market driven by tailwinds that include a shift to virtual solutions, acceleration to online and omnichannel capabilities, and digital money offerings. This, combined with the team's execution, is contributing to the strength of our performance. Third quarter revenue grew 35%, including six points from the addition of MailChimp. It was another strong quarter for our small business and self-employed group, with revenue up 42%, 20% organically. Credit Karma posted another quarter with revenue at an all-time high, up 48%. And I'm proud of how the team executed in the consumer group in another unusual tax season. We are confident in our business trajectory and are raising our total Intuit revenue and non-GAAP earnings for share guidance for fiscal year 2022. We expect to grow total company revenue 31 to 32% as our platform is in demand now more than ever. Let me now turn to tax. Our multi-year strategy is to extend our lead in the do-it-yourself category and transform the assist category with TurboTax Live. This strategy is working. This fiscal year, we expect our share of total IRS returns to be up approximately one point and our share of the do-it-yourself category to increase two points. We're also growing average revenue per return once again. We expect customers in under-penetrated segments, including Latinx, self-employed, and investors to grow double digits in total. Within transforming the assisted category, we continue to make progress connecting people to experts with TurboTax Live. We anticipate achieving a significant milestone with TurboTax Live revenue reaching $1 billion in fiscal year 2022, growing approximately 30%, and customers growing 20%. Note that last year, TurboTax Live customer growth significantly benefited from the introduction of the free basic offer. We're proud of the progress against our strategy. However, slower total IRS returns growth is resulting in expected consumer group revenue growth of 10% this fiscal year. We now expect overall IRS returns to decline 3% through July 31st compared to IRS returns growth of 3% to 4% the last two seasons. This was driven by one-time stimulus filers that did not return this season and overall IRS extensions up significantly year over year. with the number of TurboTax customers filing extensions nearly doubling. As a reminder, every point of IRS return growth equals about one point of TurboTax revenue growth. We now expect the Do It Yourself category share of total IRS returns to be flat this year, below our expectations after growing an average of approximately one point per year over the last two years. Our hypothesis is that the Do It Yourself category performance was weaker than we expected due to the one-time stimulus filers, approximately 30% of whom were paid customers for us last season. While the last three years were anything but normal, over the period, IRS returns grew on average one percentage per year, and the do-it-yourself category gained an average of just over half a point of share per year, consistent with long-term trends. Looking ahead, we expect more normal total IRS returns growth. More broadly, our AI driven expert platform strategy is accelerating innovation and our five big bets are solving the largest problems our customers face. We continue to deliver strong proof points that demonstrate the success and are well positioned for durable growth in the future. As a reminder, these big bets are revolutionized 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'd like to highlight examples of our recent progress across three of these big bets. Our third big bet is to unlock smart money decisions. We continue to see strong momentum with Credit Karma, a data platform with powerful network effects solving a two-sided problem. Our vision is to unlock smart money decisions by creating an autonomous financial platform that helps consumers find the right financial products, put more money in their pockets, and connect them to insights and advice. In Credit Karma, we continue to innovate across all verticals. All proprietary lightbox technology allows us to better personalize and connect members to the products that are right for them, providing more certainty to members and partners on the platform. We continue to see strength in credit cards and personal loans, with combined lightbox penetration remaining very high. Lightbox approximately doubles the average approval rate of members who apply for credit cards on Credit Karma versus outside of Credit Karma, making it a competitive differentiator for both our members and partners. We continue to make progress combining our capabilities to fuel the success of both TurboTax and Credit Karma. We integrated Credit Karma money into TurboTax filing experience, more than tripling the number of TurboTax online customers who deposited their refund into their Credit Karma money account this year. This gave them the ability to receive their refund up to five days earlier with direct deposit. These TurboTax customers drive Credit Karma member growth and, like other Credit Karma members, get access to personalized products across the platform, which accelerates engagement over time. Our fourth big bet is to become the center of small business growth by helping our customers get 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 continue to innovate to help customers overcome this challenge. In payments, we offer a single place where small businesses can get paid, pay others, manage money, and access capital. We are seeing more customers accessing loans through QuickBooks Capital with loan volume at record level, more than tripling year over year in April. We have increased discoverability and expanded eligibility in the product. This is driven by our rich data and proprietary risk models, which allows us to use our customers' data on their behalf and with their permission to offer access to loans. In addition to cash flow, getting and engaging customers remains a significant pain point for small and mid-market businesses. With Mailchimp, we are well on our way to becoming the source of truth for our customers to help them grow and run their business. We have three acceleration priorities with Mailchimp. First, delivering on our vision of an end-to-end customer growth platform. Second, disrupting the mid-market by developing a full marketing automation, CRM, and e-commerce suite. And third, accelerating global growth with a holistic go-to-market approach. We continue moving with speed as we focus on product innovation, marketing, and improving conversion. First, we launched a customers and leads tab within QuickBooks Online which allows new and existing customers to send revenue and customer data from QBO to Mailchimp in real time, where small businesses can segment customers and automate marketing campaigns based on QuickBooks data. We're also saving customers time by bringing in their contact list into Mailchimp from other partners and platforms. Second, we continue to invest in marketing. We are seeing early signs of the recent investments in paid media are driving growth in customer signups across large markets like the U.S. We expect this to take time for it to translate into financial results, but we're excited about the potential. And third, we're focused on opportunities to improve conversion as we look at the top of the funnel traffic to how we deliver benefits in the product for our customers. This includes highlighting product benefits as soon as customers enter the product, improving the checkout page experience, and streamlining in-product navigation. Our fifth big bet is to disrupt the small business mid-market with Cookbook's online advance. During the quarter, we launched in Canada the first market outside of the U.S., expanding the geographic reach of this offering. Accelerating innovation and executing our strategy starts with our employees. I'm proud to share that we were Fortune's 100 best companies to work for list for the 21st year in a row, this year proudly ranking number 11. We remain focused on creating an environment where our employees can bring their whole selves to work and do the best work of their lives, which is reflected in our employee retention rate that is above our peers. Wrapping up, we feel confident in our long-term business strategy. Our strong business fundamentals, including our balance sheet, our speed of innovation, and the demand for our platform, continues to put Intuit in a position of strength. In the current macro environment, the benefits of our platform are more important than ever. We're proud to be the platform of choice for over 100 million customers around the world who rely on Intuit to prosper. Now let me hand it over to Michelle.