The paragraph is an introduction to Intuit Inc.'s Third Quarter Fiscal Year 2025 Conference Call. The conference operator, David, initiates the call, explaining the process for asking and withdrawing questions. Kim Watkins, Intuit's VP of Investor Relations, then outlines the nature of the call, mentioning that forward-looking statements will be made and that various factors could affect the company's results. She highlights that more details can be found in the press release and SEC filings on Intuit's website. The remarks will include both GAAP and non-GAAP numbers, and all growth rates pertain to global business metrics. She concludes by handing over the call to the CEO, Sasan Goodarzi.

In the paragraph, Sasan Goodarzi highlights an exceptional quarter for the company, marked by a 15% revenue growth due to strong performance across their platform and a focus on leveraging AI-driven strategies to support consumers, businesses, and accountants. The company is raising guidance on key financial metrics and emphasizes innovation in AI-enabled services. Key areas of focus include superior tax results, enhanced business platform experiences, and progress in the mid-market segment. Notably, TurboTax Live is expected to grow significantly, with a projected 47% increase in revenue, driven by investments in data and AI to improve customer experiences. Additionally, integrating TurboTax and Credit Karma is anticipated to boost consumer group revenue.

The paragraph discusses the success of an AI-driven platform in improving customer experience and efficiency during the tax season. By leveraging data and AI, the platform reduced the time customers spent on tax returns and expanded partner data coverage. AI also guided customers to suitable offerings and improved expert productivity, leading to significant time savings and increased customer engagement. The integration with TurboTax and Credit Karma enhanced customer acquisition and facilitated quicker access to tax refunds, showcasing the platform's potential to innovate within the assisted tax industry. The paragraph concludes by highlighting the team's achievements and optimism for future growth in disrupting the tax category.

The paragraph discusses the progress and future plans of a business platform focusing on automating tasks and processes through AI-enabled experiences. The platform's "done-for-you" services, such as AI-generated invoice reminders, have significantly boosted payment conversion rates, and QuickBooks Live has doubled its customer connections to AI-powered human experts. Upcoming innovations will introduce a broader range of AI agents for tasks like customer service, payments, finance, project management, and accounting. These agents aim to provide predictive insights, smart actions, and seamless human expert connections to help businesses streamline operations, increase productivity, and fuel growth. The ultimate goal is to empower customers to achieve success with less effort and greater confidence.

The paragraph outlines Intuit Inc.'s strategy to introduce an all-in-one AI-driven platform tailored for mid-market customers, focusing on businesses with $2.5 million to $100 million in annual revenue. This platform aims to consolidate various services, reducing the complexity and inefficiency of using multiple disconnected solutions. Intuit highlights success stories like a title company that reverted to their Intuit Enterprise Suite after initially switching to another ERP, citing the platform's seamless integration, multi-entity features, and consolidated reporting as key benefits. The narrative underscores Intuit's commitment to serving industries like construction, IT, legal, finance, and insurance with a comprehensive solution.

The paragraph highlights the enhancements made to Intuit Enterprise Suite, including the integration of Mailchimp marketing tools and new features like multi-entity expense allocation and a hub for monitoring key performance indicators. These updates aim to boost growth management and decision-making for users. The company is also strengthening its collaboration with major accounting firms to better serve mid-market customers, with accountants contributing significantly to sales. Intuit is recognized for innovation, thanks to its culture of creativity, and is confident in its market positioning. The paragraph concludes with recognition from Fortune and a handover to Sandeep Aujla.

In the third quarter of fiscal 2025, the company reported strong financial results, including a 15% increase in revenue to $7.8 billion and a notable rise in both GAAP and non-GAAP operating incomes. The Consumer Group's revenue grew by 11%, with expectations of a 10% annual growth, driven by their AI-driven platform strategy and successful penetration in both the assisted and DIY tax categories. TurboTax Live saw significant customer and revenue growth, enhanced by AI-driven personalized experiences and strategic marketing efforts. The company experienced strong monetization with an expected 13% increase in average revenue per return, focusing on high-quality customers and reducing lower-quality free-tier customers.

The paragraph discusses the company's financial performance and growth forecasts. It anticipates a 1% decline in online TurboTax units and a slight decrease in market share but highlights a 47% growth in TurboTax Live revenue, accounting for 40% of the consumer group's revenue. The ProTax Group's Q3 revenue grew 9%, with an expected annual growth of 3% to 4%. Fiscal 2025 revenue growth guidance for the consumer group has been raised to 10%. The Global Business Solutions Group saw a 19% revenue increase in Q3, driven by a 20% growth in the online ecosystem, excluding Mailchimp. QuickBooks’ online accounting revenue increased by 21%, fueled by higher prices, more customers, and product innovations. Online services revenue rose by 18% overall and 29% excluding Mailchimp, with strong contributions from payments, capital, bill pay, and payroll. The company is confident in its future growth potential.

In the quarter, revenue growth was driven by increases in payments and QuickBooks capital revenue, with total online payment volume growing by 18% (20% excluding the leap day). Payroll revenue also grew due to customer growth and pricing changes. Mailchimp's revenue remained flat compared to last year, with improvements expected over the next few quarters. The company is focused on integrating Mailchimp and QuickBooks into an end-to-end business platform targeting both small and mid-market businesses, which represents a $180 billion market. Q3 saw a 20% growth in online ecosystem revenue, with significant growth in services for mid-market businesses. The company anticipates further acceleration of online ecosystem revenue growth in Q4 and fiscal 2025.

In Q3, desktop ecosystem revenue grew by 18%, with QuickBooks desktop enterprise revenue rising significantly. The transition to a subscription model in early fiscal 2024 has influenced revenue trends for fiscal 2025, with expected growth in the mid-single digits. GBSG revenue is projected to reach the upper end of guidance at 16%, despite a slowdown in merchant revenue growth. Excluding Mailchimp, other business areas are performing well. Credit Karma reported a 31% revenue increase in Q3, driven by gains in credit cards, personal loans, and auto insurance. As a result, revenue growth guidance for Credit Karma in fiscal 2025 has been raised to 28%. Overall, the company is optimistic about fiscal year momentum and future opportunities, with financial principles guiding balance sheet and capital allocation decisions.

In the third quarter, the company had $6.2 billion in cash and investments and $6.4 billion in debt. It repurchased $754 million in stock and planned to continue offsetting share-based compensation over three years, subject to market conditions. The board approved a 16% increase in quarterly dividend, now $1.04 per share, payable on July 18, 2025. The company revised its fiscal 2025 guidance upward, forecasting 15% revenue growth, 35% GAAP operating income growth, 18% non-GAAP operating income growth, and significant increases in both GAAP and non-GAAP earnings per share. Fourth-quarter projections include 17% to 18% revenue growth and specified earnings per share ranges for both GAAP and non-GAAP measures. The company also emphasized the role of AI in boosting efficiency and productivity, aiding in operating income growth and margin improvement. Further details are available in their press release and fact sheet.

The paragraph discusses Intuit Inc.'s strategic focus amid an uncertain macro environment, highlighting the company's strong growth and confidence in managing uncertainty due to the mission-critical nature of its offerings. Intuit's platform diversity, customer base, and data insights are pivotal in aiding customer growth and decision-making. The company is leveraging AI to drive efficiency and revenue growth, aiming to expand margins by fiscal 2025. Sasan Goodarzi emphasizes Intuit's aim to be a comprehensive solution for consumers, businesses, and accountants, capitalizing on prior investments in AI and data. The company targets a $300 billion market, especially focusing on small and mid-market businesses. Leadership assignments are realigned, with Mariana Tessel overseeing small business and Ashley Still leading the mid-market sector.

The paragraph discusses leadership changes and business growth within a company. A former Adobe executive, who successfully grew Adobe's document and creative cloud businesses, has joined the company. David Hahn is highlighted as a strong leader who has driven substantial online revenue growth. He will now lead services focused on money and workforce solutions for small to mid-market businesses. These leadership changes are intended to enhance focus and accelerate growth opportunities. The company is experiencing significant momentum and aims for long-term growth with double-digit revenue increases. The paragraph ends with a transition to a Q&A session, where Siti Panigrahi from Mizuho commends the company's successful quarter and notes impressive growth in the consumer tax business.

The paragraph features Sasan Goodarzi discussing the company's successful year and strategy in the assist tech category. He acknowledges the team's efforts in focusing on enhancing customer experience, pricing, and access to money, aided by AI-powered platforms. This led to double-digit growth, with significant contributions from platforms like TurboTax Live and Credit Karma. Despite the success, Goodarzi notes areas for improvement, such as the friction in user experiences when searching for tax professionals, indicating both achievements and opportunities for future enhancements.

In the paragraph, Sasan Goodarzi addresses a question from Brad Zelnick about the significant 47% growth in their live full-service tax offerings. He explains that the improvement is partly due to better customer retention by informing them about the expert assistance available on their platform for complex tax situations. Additionally, there was significant adoption of their full-service offering by both new and existing customers, across both consumer and business tax sectors. They view business tax as a major opportunity alongside consumer tax.

In this paragraph, Sasan Goodarzi discusses the company's significant growth and the areas where they believe improvements can be made. While they achieved high traffic with their go-to-market campaign, particularly attracting customers who previously had others do their taxes, they identified a challenge with the required authentication process, which caused customer drop-off. This approach contrasted with the more service-oriented approach these customers were used to. Although improvements started towards the end of the tax season, the company sees this issue as an opportunity for enhancement. Alex Zukin, from Wolfe Research, then asks about the company's new AI initiatives and potential pricing models.

In the paragraph, Sasan Goodarzi discusses the launch of a significant new development that involves AI agents and AI-enabled human experts aimed at providing a comprehensive service for customers in the small business solution segment. The initiative includes various AI agents, such as customer, payment, project management, and accounting agents, which can communicate with each other to perform tasks for customers. These agents streamline operations by, for example, managing customer leads, optimizing cash flow, and handling invoices, ultimately aiming to enhance efficiency and reduce operational expenditures by doing much of the work for the customers.

The paragraph discusses the integration of AI and human interaction in an accounting context, where AI assists with categorization tasks and learns from human input for future accuracy. The company is entering a new phase of service that provides comprehensive solutions to customers, emphasizing the overall value and cost-effectiveness of their offerings. This approach is based on feedback indicating customers will benefit from reduced reliance on other apps, thereby consolidating expenses. The company will adopt a value-based pricing model and, for their mid-market offerings, will introduce additional modules that customers can opt into, potentially at an additional cost based on usage.

The paragraph discusses a company's consistent investment in data and AI to enhance customer experiences and internal processes over the past decade, particularly in recent years. The focus is on leveraging platforms and automation to boost productivity, manage operating expenses, and expand margins. Sandeep Aujla highlights the company's achievements, including a 100 basis point margin expansion, 47% revenue growth in assisted tax, and mid-market capabilities, all achieved through technology and spend discipline. The aim is to grow operating income faster than revenue while maintaining staffing efficiency. The conversation then transitions to Raimo Lenschow from Barclays, who wants to discuss Credit Karma.

The paragraph is a conversation in which Sandeep Aujla discusses the strong performance of Credit Karma, attributing it to stable macroeconomic conditions and effective execution by the team. They have integrated AI to improve customer and partner connections, leading to higher average revenue per customer (ARPC). Innovations like Lightbox and TakeShare are helping the company gain market share in new segments such as insurance. Raimo Lenschow acknowledges the improvements, and Kash Rangan praises the detailed presentation before asking about AI and pricing as potential future advantages for the business.

The company, Intuit Inc., is viewed as being in a stronger position now compared to a few years ago. In response to a query about its pricing power and resilience in the small and medium business sector amid potential economic downturns, CEO Sasan Goodarzi highlights three main points: First, over 90% of Intuit's revenue is recurring and subscription-based, making it essential for customers managing personal taxes or business operations, which in turn enhances its resilience. Second, Intuit serves a larger and more diverse customer base than before. Lastly, in the assisted tax segment, Intuit positions itself as a low-cost disruptor, offering solutions to businesses that might be overspending and struggling with fragmented data across various apps.

The paragraph discusses a company's strategy of being a price disruptor in the mid-market segment by offering subscription-based services that save customers money and increase their ROI. The company aims to disrupt the market with better pricing, experience, and access to financial benefits such as refunds. The resilience of the company is attributed to these factors, leading to anticipated growth (ARPC tailwinds). An operator then opens the line for a question from Kirk Materne at Evercore ISI, who asks about the company's ability to reclaim customers ("Boomerang customers") who might have left the ecosystem. Sasan Goodarzi, responding to Kirk, indicates that their perspective hasn't changed over the past six months regarding reclaiming these customers.

The paragraph discusses Intuit's strategy for focusing on upgrading its existing customer base to QuickBooks Advanced or Intuit Enterprise Suite, targeting mid-market businesses with revenues between $2.5 million and $100 million. It highlights the importance of word-of-mouth in attracting customers back to Intuit and emphasizes their competitive advantages in experience, price, and total cost of ownership. The company is starting to expand its market reach beyond its existing customers and sees potential growth in this area. The paragraph concludes with a reminder of their consistent focus and includes an interaction with analysts expressing gratitude and congratulations on a successful quarter.

In the paragraph, Sasan Goodarzi discusses the company's strategy for monetizing AI agents and addressing pricing increases in the context of macroeconomic conditions. Goodarzi emphasizes that larger customers can save money by consolidating multiple applications into the company's platform, which offers a business intelligence layer for improved performance insights. This consolidation reduces costs for customers, even with the innovation-driven pricing opportunities, as it eliminates the need for multiple separate apps. The approach aims to enhance value for customers while allowing the company to grow its revenue.

The paragraph is a discussion between Brent Thill from Jefferies and Sasan Goodarzi about the factors driving TurboTax's recent success. Sasan Goodarzi emphasizes that the positive outcomes result from a combination of efforts over the years, including improvements in full-service consumer and business tax services, better conversion rates, and enhanced expert productivity. He notes the breakthrough in expert adoption within their customer base and the effectiveness of go-to-market strategies. Furthermore, he highlights the acquisition of Credit Karma as a significant contributor to growth by providing early access to money and enabling year-round customer engagement.

The paragraph discusses the current success and future outlook for TurboTax Live. Sasan Goodarzi expresses confidence in the platform's durability and growth, citing their focus on improving user experience, pricing, and early access to funds. With TurboTax Live now comprising 40% of their franchise, they aim for growth rates of 15% to 20%. Goodarzi emphasizes their continuous improvement efforts, noting collaboration with the team to address areas needing faster progress. Despite celebrating past successes, the focus remains on future improvements to maintain strong growth.

The paragraph is a dialogue primarily involving Sandeep Aujla responding to a question from Michael Turrin regarding earnings per share (EPS) growth and margin progression. Sandeep attributes the strong margin growth to robust revenue performance across various business segments and effective cost management through technological advancements. Intuit Inc. has integrated technology, AI, and automation throughout its operations, resulting in productivity gains, such as a 40% increase in coding efficiency among developers, and improvements across customer success, finance, marketing, and sales organizations. This technological integration is in its early stages, suggesting potential for further efficiency improvements.

The paragraph features a conversation where Sasan Goodarzi, responding to Scott Schneeberger's questions, discusses the growth and innovation in the tax-assisted category, emphasizing a shift towards more seamless and transparent digital solutions that simplify the tax process for consumers and businesses. Additionally, Sasan touches upon marketing strategies in the consumer category, noting earlier and potentially increased spending and hinting at valuable insights gained from these efforts.

The paragraph discusses the company's strategy regarding early or immediate access to money and their focus on serving diverse customer needs in the tax industry, which is valued at $35 billion. They aim to transform and disrupt how taxes are processed for both consumers and businesses. Additionally, Sandeep Aujla explains their marketing strategy, indicating a slight increase in marketing spend, with an emphasis on early spending to capture customers who decide on tax services before December. The focus was on maximizing ROI across the business, both in consumer and business platforms. Scott Schneeberger and Sasan Goodarzi also briefly interact, and the operator introduces Daniel Jester for the final question.

In the paragraph, Daniel Jester asks about the maturity of Intuit's go-to-market strategy for its Intuit Enterprise Suite (IES) and the importance of the accounting channel. Sasan Goodarzi responds by emphasizing that Intuit is still in the early stages of refining its go-to-market strategy for mid-market customers, defined as those with revenues between $2.5 million and $100 million. He highlights the potential for growth and mentions the importance of strengthening the mid-market team, particularly with the addition of Ashley Still. Goodarzi stresses that accounting partners are vital allies, not just a channel, as Intuit collaborates with them to benefit both their firms and their end customers.

In the paragraph, Sasan Goodarzi discusses the company's ongoing efforts to establish partnerships to better serve the mid-market, emphasizing the excitement for future opportunities. He mentions spending significant time engaging with large firms. Daniel Jester concludes by thanking Goodarzi. The operator then ends the conference call, and Kim Watkins says goodbye.

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