Intuit Inc.

Good afternoon. My name is David and I'll be your conference operator. At this time, I would like to welcome everyone to Intuit's third quarter fiscal year 2024 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 that time, please press star and the number one on your telephone keypad. If you would like to withdraw your question, please press star and two. With that, I will now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations.

Thanks, David. Good afternoon and welcome to Intuit's third quarter fiscal 2024 conference call. I'm here with Intuit's CEO, Sasan Gadarzi, and our CFO, Sandeep Ojala. 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 2023, 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'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. 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 strong quarter with solid momentum across the company as we executed our strategy to be the global AI-driven expert platform powering prosperity for consumers and small businesses. Third quarter revenue grew 12%. Small business and self-employed group revenue grew 18% despite an uncertain macro environment, demonstrating the importance of our platform in fueling success for small businesses and our momentum serving the mid-market. consumer group revenue grew 9%, and Credit Karma revenue grew 8%, driven by the impact of innovation for members and the benefits of TurboTax and Credit Karma product integration. I'm proud of our performance and the momentum we're seeing across the company. Turning to tax, we continue to revolutionize how taxes get done for consumers and small businesses. Tax preparation represents a $35 billion TAM in the U.S., This includes $31 billion within the assisted, consumer, and business tax categories. We're well positioned to penetrate the assisted TAM by leveraging data, AI, and our virtual expert platform. Let me share several proof points. This season, we made good progress against our multi-year strategy to transform the assisted experience for customers. TurboTax Live, our assisted offering, including our Do It With Me and full-service tax offerings for both consumers and businesses, is the largest durable growth opportunity. We expect TurboTax Live customers to grow 12% and revenue to grow 17% in fiscal year 2024. TurboTax Live revenue is expected to be $1.4 billion, representing approximately 30% of total consumer group revenue growing at a significant scale. This gives us confidence that we can digitize a very manual, disaggregated, and high-priced assisted category. Now, let me spend a few minutes going deeper in several areas. First, TurboTax Live Full Service is resonating with consumers as we continue to innovate and making it simpler for customers to get their taxes done virtually. We expect TurboTax Live Full Service customers to double this fiscal year, with those new to TurboTax to triple. Our full service offering has a product recommendation score of 85, one of the highest at Intuit. Our learnings and insights from this season bolster our confidence in the continued opportunity we have to disrupt the assisted category. Second, we expect TurboTax to gain share with higher ARPR filers as we strategically prioritize focusing on the assisted tax segment and higher value customers over pay nothing and lower ARPR segments. Third, Intuit Assist, our Gen AI-powered financial assistant, played a big role in our TurboTax experience this year. With Intuit Assist, we're creating a future of done-for-you where the hard work is done automagically on behalf of our customers with a gateway to human expertise, fueling their financial success. More than 24 million customers used Intuit Assist to explain their refunds, answer questions, and help deliver confidence that their return was completed accurately this year. This is data and Gen AI working at scale for both our customers and our AI-powered experts, helping customers virtually. I'm excited about what we're working on for next season to accelerate innovation and deliver even more customer benefits. And fourth, we deliver solid results with the product integration across Credit Karma and TurboTax. We grew the number of customers that filed with TurboTax from the embedded Credit Karma experience by 76%, and tax refunds deposited in a Credit Karma money account by 28%. We also delivered strong growth in Credit Karma money revenue this quarter. This product integration also drove new members to Credit Karma, consistent with our goal of driving higher engagement and monetization for Credit Karma over time. Given these results, we see big opportunities ahead to deliver on our vision to help consumers make ends meet, maximize their tax refund, save more money, pay off debt, and take steps to improve their financial health. To significantly accelerate creating seamless end-to-end consumer experiences that customers benefit from year-round, we are more closely aligning TurboTax and Credit Karma under Mark Nortriani, General Manager of the Consumer Group, who will oversee both segments. I'm excited to share that Joe Kauffman, currently president of Credit Karma and part of the leadership team for the last nine years, will be leading Credit Karma as of August 1st, reporting to Mark. Additionally, Ken Lin will retire from Intuit around the end of this calendar year. I can't thank Ken enough for his friendship, leadership, and impact across the company. In summary, we made strong progress this tax season that sets us up for continued success in the future. Now let's take a look ahead. The era of AI is one of the most significant technology shifts of our lifetime. It is reinventing customer experiences, creating new monetization possibilities, and structurally changing how we work within Intuit to deliver for customers. We're very well positioned to take advantage of this era with our AI-driven expert platform strategy and five big bets to pursue the largest customer problems and growth drivers for Intuit. As part of our financial planning process, We have identified key areas within our Big Bets where we plan to accelerate investments to deliver greater impact. These include Big Bet 1, Gen AI to deliver done-for-you experiences with intuitive assist. Big Bet 2, go-to market investments for TurboTax Live and QuickBooks Live, embedding AI-powered experts across our small business offerings. Big bet four, our money solutions to digitize the experience end-to-end for consumers and small businesses from estimates, invoicing to getting paid and paying bills. Big bet five, doubling down on mid-market with additional investments in platform and go-to-market motions. And finally, accelerating international growth with MailChimp and QuickBooks. To increase our investments in the outline focus areas given the green shoots we're observing, We are taking a hard look at what we can stop doing and where we can reallocate investments to accelerate top-line growth while remaining committed to delivering operating margin expansion in fiscal year 2025 and beyond. Wrapping up, we're excited about the opportunity ahead and our ability to power prosperity for customers. Now let me hand it over to Sandeep.