Intuit Inc.

Good afternoon. My name is Raisa and I will be your conference operator. At this time, I would like to welcome everyone to Intuit's fourth quarter fiscal year 2023 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 the star then the number one on your telephone keypad. If you would like to withdraw your question, please press star two. With that, I'll now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations. Ms. Watkins?

Thanks, Reza. Good afternoon and welcome to Intuit's fourth quarter fiscal 2023 conference call. I'm here with Intuit's CEO, Sasan Qadarsi, and our new CFO, Sandeep Ajla. Welcome, Sandeep. It's nice to have you on the call. 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 2022, 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 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. With that, I'll turn the call over to Sasan.

All right. Excellent, Kim. Thank you. And thank you, everybody, for joining us today. We had a very strong fourth quarter as we executed on our strategy to be the global AI-driven expert platform powering prosperity for consumers and small businesses. We grew full-year revenue 13%, delivered strong operating margin expansion, and exited the year with momentum. Our overall performance demonstrates the strength of our platform and diversity of our portfolio, including our ability to maintain earnings power in uncertain times. This past year, we expanded our operating margin again while investing in the most important areas to drive durable long-term growth. We're guiding to another year of double-digit revenue growth and margin expansion in fiscal year 2024, even with a macroeconomic environment that is uncertain. We're entering Intuit's most exciting era yet. Five years ago, we declared our strategy to be an AI-driven expert platform with data and AI core to fueling innovation across our five big bets. We've made strong progress transforming from a tax and accounting platform where consumers and small businesses have to do the work to achieve the benefit that they are seeking to a global financial platform where we do the hard work for them. Now, we're creating a future of done for you, a future where the hard work is done automagically on behalf of our customers to fuel their financial success. This future is only possible because of our history of significant investments in our platform, talent, data, and AI, and now our accelerated investments in generative AI. At the core of our platform is powerful, relevant data. Intuit has incredibly rich, longitudinal, transactional, and behavioral data for 100 million customers. For small businesses, we have a 360-degree view of their business and customers. We have 500,000 customer and financial attributes per small business on our platform, and this data gives us insights into behaviors, income streams, expenses, profitability, and cash flows, enabling us to provide personalized experiences and recommendations to help them prosper. Additionally, we have 60,000 financial and tax attributes per consumer on our platform, including income, expenses, credit history, spending history, outstanding loans, cash flow, and tax information, which enables us to become a financial assistant in their pocket. We're using our data to fine-tune our own financial large language models that specialize in solving tax, accounting, cash flow, marketing, and personal finance challenges. The investments that we've made in data and AI over the years allow us to introduce innovation at an accelerated rate. Intuit's rich data platform is a powerful foundation that allows us to create innovative AI-assisted experiences for all of our customers, powering their prosperity. In June, we introduced our generative AI operating system called GenOS to ignite innovation at scale for the benefit of millions of consumers and small businesses. GenOS empowers Intuit technologies to create breakthrough generative AI experiences. We are using a platform approach, giving our teams across Intuit the resources and the tools they need to design, build, test, and deploy these new experiences with unparalleled speed. This includes our own powerful financial LLMs, as well as those from other leaders in GenAI, which together unlock new opportunities to serve our customers in a cost-effective way. We are entering Intuit's most exciting era yet and believe the next several years will be game-changing. On September 6th, we'll be hosting Intuit Innovation Day, a virtual event where we will unveil exciting Gen AI innovation across our platform and how it will drive business growth in the years ahead. We look forward to sharing more with you then. Now, let me turn to our big bets, which are driving growth and benefits for our customers today. I'd like to highlight some examples of recent progress in one of our big bets. And as a reminder, our five 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 mid-market. Our fourth big bet is to become the center of small business growth by helping our customers get new customers, get paid fast, manage capital, and pay employees with confidence in an omnichannel world. In payments, our innovation continues to drive digitization from creating an estimate to invoicing a customer to getting paid. Today, easy discovery, auto-enabled payments, instant deposit, and getting paid up front are all helping drive adoption of our payments offering, leading to 22% total online payment volume growth this quarter. We're making significant progress digitizing B2B payments to accelerate and automate transactions between small businesses and ultimately improving their cash flow. We see tremendous opportunity as 80% of businesses still pay other firms via paper checks. We recently expanded the availability of the beta of our native bill pay solution by 10x. Turning to Mailchimp, we're 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 QuickBooks and Mailchimp 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. This last quarter, we implemented our first generative AI capability in MailChimp, the email content generator, enabling customers to create faster email campaigns based on industry, marketing intent, and brand voice. This quarter, we launched the beta of new product announcement generator, which uses AI to automatically create an email that a small business can send to their customers. We also announced over 150 new and updated features at recent Mailchimp conference in London, designed to support the needs of advanced marketers, including a calendar view, custom reporting and analytics, more e-commerce advanced segmentation, more real-time behavioral data based on e-commerce automation, and SMS marketing. Lineup changes and free trials are driving positive trends in year-over-year paid customer growth, which accelerated this quarter. We continue to make progress in mid-market. Our 90-day retention rate this quarter is the highest it's been in two years. We've also translated the product into five different languages. We'll share more on the outcomes we're delivering across our five big bets at our investor day. Wrapping up. With our durable AI-driven expert platform strategy and focus on innovating with GenAI across our products, we're moving at a high velocity. This will help us with more money in our customers' pockets, save them time, and ensure complete confidence in every financial decision they make. As we lead this next technological shift, we are well-positioned to power prosperity for our customers and communities that we serve with a leadership team that is built for the era of AI. Now, let me turn it over to Sandeep. It's great to have you on the call, my friend.