Intuit Inc.

Good afternoon, my name is Angela and I will be your conference operator. At this time, I would like to welcome everyone to Intuit's second quarter fiscal year 2025 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 star two. With that, I will now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations. Ms. Watkins?

Thanks, Angela. Good afternoon, and welcome to Intuit's second quarter fiscal 2025 conference call. I'm here with Intuit's CEO, Sasan Ghadarzi, and our CFO, Sandeep Ojla. 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 2024, 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. 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.

Great. Thanks, Kim, and thanks to all of you for joining us today. We delivered very strong results in Q2 with revenue growth of 17%, and we're off to a great start in tax. We have strong momentum this year as we execute our global AI-driven expert platform strategy, powering prosperity for consumers and businesses. We are confident in delivering double-digit revenue growth and expanding margin this year, and we're reiterating our full-year guidance. Today, I will focus on three areas, revolutionizing speed to benefit by delivering done-for-you experiences with expertise, winning in tax, and mid-market. We're making strong progress across our platform with our data and AI investments to deliver done-for-you experiences with AI-powered human expertise. Our focus is on automating tasks, end-to-end workflows, and entire functions, connecting customers to one of our more than 12,000 AI-powered human experts for the last mile or to complete all of the work. This is Intuit Assist, the combination of AI and AI-powered human experts, digitizing everything for customers and fueling their success. Let me share one example to demonstrate our progress. On our business platform, Intuit Assist delivers done-for-you experiences, automating workflows using AI agents. It automatically turns emails, electronic documents, and handwritten notes into estimates, invoices, or bills while doing the accounting in the background. It spots potential cash flow shortages in real time and suggests personalized solutions like applying for a line of credit through QuickBooks Capital. With these capabilities, we're seeing a 10% higher payment conversion rate on overdue invoices when customers use AI-generated invoice reminders versus those that don't. We're also connecting customers to our AI-powered experts at their point of need through QuickBooks Live, up 2.5x in Q2. with 20-point higher ecosystem attach rate than the rest of the QBO base. Repeat engagement with our done-for-you invoicing experience continues to grow and has increased more than 50% since November. As we continue to scale these experiences, we're encouraged by new customers converting and adoption of platform offerings such as payments and QuickBooks Live. This is Intuit Assist working at scale, fueling the success of our customers. Turning to tax. We're off to a great start. Our strategy is to win as an AI-driven expert platform by delivering the best experience, speed to money, and best price for customers. As one consumer platform with a seamless customer experience across TurboTax and Credit Karma, we have incredible scale to win in the DIY and assisted categories. We've made significant progress with Intuit Assist, which is fueled by our data, data services, and AI investments, delivering done-for-you tax experiences. We have transformed the shopping experience, helping guide customers to the offering that is best for them, which is driving higher starts. For those that choose to do their own taxes, we're delivering an AI-driven, highly personalized product experience. This includes easy data in from over 200 partners, now covering 90% of our customers' most common tax documents, up from 68% last year. And with the intelligent application of data to personalize navigation, customers can complete their taxes more quickly with higher levels of confidence. When customers choose us to do their taxes for them, we match them with the best expert on our AI-driven expert platform within seconds and share the expert's qualifications while automatically uploading the customer's data, making the first interaction a wow experience. An AI-powered human expert that completes the customer's return in less than two hours offering proactive and personalized assistance, and providing the opportunity for customers to access their money immediately, all the while on the go or in the comfort of their home. The experience is resonating, and the TurboTax Live Full Service has a product recommendation score of 84 season to date, one of the highest at Intuit. This is an unmatched experience at scale, delivering delight and speed to money at the best price. With the scale of our data and AI capabilities, Intuit Assist is a control tower automating tasks and workflows with human experts engaging where needed to deliver done-for-you experiences for our customers. Let's shift to our durable go-to-market approach. We have reinvented our marketing campaigns focused on experience, speed to money, and price. We've strengthened our overall AI-driven personalized lineup and monetization capabilities. We are seeing great traction early in the season in DIY across simple and complex customers with strong monetization driven by benefits such as early access to refunds and AI-powered human experts. In the assisted category, with the significant improvement in experience, speed to money, and our Beat Your Price campaign, our early full-service funnel is strong. This is driven by marketing that started in the fall and improvements in local search for those looking for a pro near them. We estimate that our local experts in 130 plus designated market areas will give us access to approximately 80% of the nationwide assisted filers. And we found that filers are historically 5X more likely to convert when given a local option. We are also seeing more than 3X higher starts on the Credit Karma platform. driven by an increase in availability of seamless zero-click login to TurboTax from 5% last season to 70% this season. In summary, we're off to a strong start in tax. We're seeing strong growth across simple and more complex returns as the season progresses and strong overall average revenue per filer. We're also pleased with the power of one consumer platform, given the seamless experiences across TurboTax and Credit Karma. Let me now turn to the business platform and the progress we're making serving mid-market customers, which represent an $89 billion town. We are focused on winning as an AI-driven expert platform to fuel the success of customers with QBO Advanced, Intuit Enterprise Suite, and our ecosystem of services. Our go-to-market and product investments are fueling accelerated progress. With the QBO Advanced Platform, we are delivering strong ARPC across our broader ecosystem of services with payroll and payments penetration exceeding QBO core by 12 points and nine points respectively at the end of the quarter. With Intuit Enterprise Suite, we're seeing growing momentum week to week. This includes the number of contracts we signed in January, which are up 2x versus November. IES is resonating with larger businesses and accountants across our ecosystem, particularly those with over 10 million in revenue, where win rates are trending nearly 2x higher versus smaller customers. And the efficiency of our sales funnel continues to improve, with sales productivity up more than 60% over the last two months. We are winning because of the valuable benefits of our platform, ease of adoption, price, and total cost of ownership. With IES, we're able to boost customers' productivity by saving them time and providing deeper insights across the platform to fuel their growth. We are seeing traction with mid-market customers extending across multiple industries, including construction, IT services, legal services, management consulting, finance, and insurance. I'll share two examples that highlight our excitement in fueling customer success and Intuit growth. We recently signed a financial services firm with five entities that chose IES over other competing solutions to optimize its financial operations, marketing, and sales with AI all in one place. The firm is using Mailchimp, an integral part of IES, to optimize sales and marketing by leveraging the insights from dimensional reporting to assess product mix and view profitability by product type. The marketing and sales teams tell us they are obsessed with the insights which enable them to get the most out of Mailchimp with more targeted customer engagement to fuel their growth. We also signed a deal with a large professional services and accounting firm, which serves clients across 13 industries, including construction, dental, government contracting, real estate, and technology. This firm was looking to standardize solutions and consolidate across vendors, and our disruptive price and ease of use was key to their purchasing decisions. They migrated several clients, including some using competitive solutions, to IES in a deal worth six figures annually, and we are partnering with them to bring many more clients onto IES. Wrapping up, with our progress and momentum, we are well-positioned to win as an end-to-end platform with done-for-you experiences that fuel the success of consumers, small and mid-market businesses, and accountants. Now let me hand it over to Sandeep.