The conference call is being led by Intuit's Vice President of Investor Relations, Kim Watkins. She introduces the CEO, Sasan Goodarzi, and the CFO, Sandeep Aujla. Before they begin, she reminds listeners of the risks associated with forward-looking statements and the availability of financial documents on their website. Goodarzi thanks everyone for joining the call.

Intuit had a successful fourth quarter and full-year, with strong revenue growth and operating margin expansion. They are confident in delivering another year of double-digit growth and have positioned themselves as a global AI-driven expert platform. Their early bet on AI has given them an advantage with their data and network of AI-powered experts, allowing them to disrupt their industries. They are now focused on five Big Bets, including delivering done-for-you experiences with Intuit Assist, to drive even more growth and impact in the future.

In fiscal year 2024, Intuit made progress in making their AI-powered financial assistant, Intuit Assist, available to millions of consumers and businesses. They also invested in TurboTax Live and QuickBooks Live, resulting in revenue growth and increased customers. Additionally, they accelerated investments in digitizing the money solutions experience for consumers and businesses, leading to growth in online payment volume and access to financing. In fiscal year 2025, they expect these investments to deliver seamless payment, capital, banking, bill pay, and invoicing solutions. They also made investments in the mid-market sector, resulting in a 28% growth in QBO Advanced customers.

In fiscal year 2025, Intuit is investing in services to cater to customers with complex needs, such as accounting, reporting, business intelligence, and human capital management. They are also focusing on international growth with Mailchimp and QuickBooks, with plans to integrate the two platforms in certain markets. The company had a successful fiscal year 2024, with strong revenue and earnings growth. In the fourth quarter, they saw an increase in revenue and non-GAAP operating income, but a decrease in GAAP operating income due to a restructuring charge.

In the fourth quarter of the fiscal year, the company reported a GAAP diluted loss per share of $0.07, compared to a diluted earnings per share of $0.32 in the previous year. Non-GAAP diluted earnings per share increased by 21% to $1.99. The Small Business and Self-Employed Group saw a 20% increase in revenue, driven by the company's small and mid-market business platform and the importance of their services in any economic environment. The online ecosystem revenue grew by 18%, with a focus on serving customers with more complex needs. The company's strategic focus within this group is on growing the core, connecting the ecosystem, and expanding globally. QuickBooks Online accounting revenue grew by 17% in the fourth quarter and 19% for the full fiscal year. Online services revenue increased by 19% in the fourth quarter and 21% for the full fiscal year, driven by payments, payroll, capital, and Mailchimp.

In the payments segment, revenue growth was driven by higher prices, increased customer adoption, and higher payment volume per customer. Payroll revenue also grew due to more customers using the service, higher prices, and a shift towards higher-end offerings. Mailchimp saw growth from increased prices and customer growth. The company is also expanding globally by focusing on QuickBooks Online and Mailchimp in established markets and Mailchimp in other markets. In the desktop segment, the company successfully transitioned to a subscription model, resulting in 25% growth in Q4 and 16% growth for the fiscal year. Changes to the desktop offerings in fiscal 2024 also contributed to revenue growth in Q4, with $60 million recognized in Q4 and $50 million recognized in the first three quarters of the fiscal year.

In the first quarter of fiscal 2025, the company expects a decline of approximately $160 million in revenue due to changes in product updates and a shift to a subscription model. However, they anticipate a return to growth in the second quarter and overall growth in the low-single-digits for the fiscal year. Credit Karma revenue showed improvement throughout fiscal 2024, with auto insurance, personal loans, credit cards, and Credit Karma Money contributing to growth. The company also made progress in redesigning the Credit Karma app, introducing Intuit Assist, and increasing monetization in the Prime segment. The Consumer Group saw 7% revenue growth in fiscal 2024, with TurboTax Live and full-service customers showing significant growth.

Intuit is pleased with the momentum of TurboTax Live and the ProTax Group's revenue growth. Their financial principles guide their decisions and they aim to be in the market each quarter. The Board approved a quarterly dividend and their fiscal 2025 guidance includes a 12-13% revenue growth. They also expect a GAAP tax rate of 23% and a restructuring charge of $24 million. The first quarter of fiscal 2025 is expected to have a 5-6% revenue growth, with the Small Business and Self-Employed group seeing a 6-7% growth.

In the first quarter, the desktop ecosystem revenue is expected to decline by 20%, while the online ecosystem is expected to accelerate by 19%. Credit Karma is expected to see growth in revenue, while the Consumer Group and ProTax revenue will decline. The GAAP earnings per share is expected to be between $0.61 and $0.66, and the non-GAAP earnings per share is expected to be between $2.33 and $2.38. The company is also expecting a restructuring charge of $19 million in the first quarter. In the long term, the Small Business and Self-Employed Group is expected to see revenue growth of 15-20%, with a focus on increasing ARPC and online paying customers. For Credit Karma, the company is looking to penetrate core verticals, scale in growth verticals, and execute their consumer ecosystem strategy.

The company is updating its long-term revenue growth expectations to reflect its current size and focus on creating seamless experiences for consumers. The Consumer Group is expected to drive future growth through assisted penetration, with TurboTax Live revenue becoming the majority of Consumer Group revenue. The Small Business and Self-Employed Group will be renamed to Global Business Solutions Group to better align with the company's global reach and vision. The company is confident in its long-term growth strategy and will provide more details at its upcoming Investor Day. Questions from analysts will now be taken.

Intuit CEO Sasan Goodarzi discusses the company's focus on the mid-market segment and its potential for growth. He mentions that Intuit has been working on this strategy for five years and is now seeing significant momentum. The company's business suite offers a range of capabilities for businesses to manage their customers, cash flow, and accounting in one place, with the help of AI-powered innovation and experts. Goodarzi says that Intuit is now accelerating in this area on two fronts.

The speaker discusses the company's plans to market their services as one platform rather than separate parts, which they believe will accelerate their penetration into the market. They also mention a new platform for mid-market customers and their goal to expand beyond 10-100 employees. The speaker expresses confidence in their projected revenue growth and mentions an upcoming investors' day. The questioner asks for more information about the mid-term guide for the consumer sector.

The speaker, Sasan Goodarzi, responds to a question about the company's annual guide and the factors that influenced their guidance. He mentions that the macroeconomic environment was not factored into their expectations and that they are focused on their current trends and momentum. He also discusses the size of the tax market and the company's growth in TurboTax Live. Goodarzi explains that they have adjusted their long-term expectations to be cautious until TurboTax Live becomes a larger part of their franchise. He also mentions the importance of DIY in the tax market.

The company is experiencing rapid growth and is focusing on both higher and lower income customers. They plan to continue pursuing lower income customers and are confident in their ability to succeed in both assisted and DIY tax services. The restructuring was not motivated by cost savings and the company is committed to reinvesting any savings into specific initiatives. The decision to restructure was a difficult one, as the company values its employees and their well-being.

The company has taken great care of its employees during a recent restructuring, both those who are staying and those who were impacted. The company is reinvesting all the saved money into five key areas for future growth and success, and this will not affect the company's execution plan for the coming year. The company is confident in its margin expansion and is leveraging its platform and AI investments to drive efficiency and productivity. The restructuring was not a sudden decision, as the company had already been seeing positive results in these five areas.

The company is planning to expand its mid-market go-to-market function and scale its marketing activities to target the assisted tax category. They have also been focused on integrating Mailchimp with the QuickBooks platform, building momentum in the mid-market, and expanding internationally. These efforts are expected to drive growth in Mailchimp's customer base.

The speaker discusses the company's progress in meeting their KPIs and their excitement for the future. They mention solid progress in three areas, which include acceleration in services, mid-market growth, and price increases. They also mention the reinvestment of headcount reduction and the areas where they have seen growth and success.

The speaker discusses the company's pricing power and how it is driven by their business suite, which saves customers time and labor, helps with customer growth, and digitizes cash flow. They also mention that the majority of their business is subscription-based and therefore predictable. The restructuring of the company was done to upgrade talent and consolidate technology talent in key areas. The speaker also mentions the growth of QBO U.S. and QBO Advance.

The company has had a successful fiscal year and is expected to continue growing, particularly in the Global Business Solutions Group which is projected to reach over $11 billion with a 16-17% growth rate. The company's success can be attributed to its focus on larger customers and careful pricing strategies. The analyst also notes that the company has reached a milestone of $10 billion in the Small Business, Self-Employed Group, putting them on par with other major enterprise software companies.

The speaker discusses how the company has achieved success without much contribution from the mid-market, but the best is yet to come as they continue to invest and target larger customers. They are excited about the future and have a strong potential to win in the mid-market space, as it is not a crowded market. The company's goal is to grow their business group from $10 billion to a much larger amount in the next three to five years. A question is asked about the Global Business Solutions Group.

In the coming year, Intuit Assist will continue to have a significant impact on the small business side, with 1 million businesses currently using the service. This was a bet that Intuit made six years ago on data and AI, and it allows for experiences where Intuit does the work for its customers. Some of the current features include marketing campaigns, digitizing estimates, invoicing and payment scheduling, reminders for overdue invoices, and access to capital. However, the company has not factored in any assumptions about Intuit Assist in its guidance for the coming year.

The company is currently focused on money management for their customers and is using data and AI to do all the work for them. This will lead to new customer growth and increased adoption of their services. The company is making good progress and this will be discussed at their Investor Day. This is not included in their current guidance, but it is a big part of their future and they are excited about it. The questioner asks about the decision to lower guidance despite the positive momentum in the business.

The company is focused on its one platform, TurboTax, which allows customers to do their taxes on their own, with assistance, or with the help of virtual experts. They have recently adjusted their long-term expectations for growth in the tax market, as the largest opportunity for growth is in the assisted tax market. This decision was made based on their current growth and potential in the assisted tax market, and the company will reevaluate their long-term expectations once they achieve sustained double-digit growth.

Sasan Goodarzi, CEO of Intuit, reports that the health of small businesses remains stable, with revenue and profitability up compared to last year. However, cash reserves are still down compared to pre-pandemic levels. The company's QBO Live service, which provides bookkeeping and accounting help to small businesses, has seen success with a tripling of clients. Goodarzi sees potential for this service to expand into the middle market.

The company has been focused on helping customers understand the benefits of their platform, particularly with the integration of AI-powered experts. This has led to increased opportunities with larger customers and higher usage of services like payments and payroll. The company believes there is still room for improvement in this area and will discuss their progress at Investor Day.

Intuit CEO Sasan Goodarzi discusses the impact of AI on their business, stating that it is driving automation and innovation across all their platforms. While the revenue impact is currently immaterial, it is expected to be a major driver of growth in the future. The company has been intentional about their investments in data and AI, and any necessary investments have been accounted for in their guidance. CFO Sandeep Aujla adds that their investments in AI have not been capital intensive.

The company is not expecting any major changes in its cost structure as it relies heavily on AI and uses AWS for processing. They have also seen improvements in productivity and are committed to finding operating leverage and scaling margins. The balance between directing questions to AI or human experts is not based on ARPU, as AI has shown to drive higher ARPU and better attach rates for human expertise due to their data and AI platform.

The speaker discusses the impact of AI on the company's platform and ARPU. They mention the importance of confidence and eliminating fear, uncertainty, and doubt. They also talk about the potential for AI to open up new opportunities and penetrate a larger TAM. The speaker then addresses the question about separate SKUs for the AI platform, stating that it is a progression and an important element to consider.

The speaker discusses the potential benefits of their company's digital platform with AI-powered experts, including driving new customer growth and increasing adoption of services like payments and marketing campaigns. They also mention the progression towards a stand-alone SKU with the AI agent handling all tasks for the customer. The difficulty of replicating their services is highlighted, as it requires a large amount of data and a unique understanding of each individual business's cash flow.

The speaker discusses the importance of data investments and the GenOS platform in delivering accurate and cost-effective experiences for customers. They also mention the difficulty of replicating their financial management advantage and express excitement for the growth opportunity ahead. They thank the audience for their time and invite them to attend Investor Day.

This summary was generated with AI and may contain some inaccuracies.