Intuit Inc. · NASDAQ:INTU
Intuit — Investor Day (September 2021)
130 slides from Intuit's investor day presentation, September 2021
Slide 1: Investor Day 2021
INVESTOR DAY 2021 September 2021
Slide 2: Kim Watkins
Kim Watkins
Slide 3: Agenda
Agenda Welcome Kim Watkins – VP, Investor Relations Evolution to an AI-Driven Expert Platform Sasan Goodarzi – CEO Platform Immersion Experience Kim Watkins – VP, Investor Relations BREAK Small Business & Self-Employed Group Alex Chriss – GM, Small Business & Self-Employed Group Consumer Group Greg
Slide 4: Forward-looking statements; Non-GAAP financial measures
Forward-looking statements This presentation contains forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. See the section entitled “Cautions about forward-looking statements” in the accompanying Appendix for information r
Slide 5: Platform Immersion Experience
Platform Immersion Experience MARK NOTARAINNI ARIEGE MISHERGHI Connect people to experts Chief Customer Success Officer VP and Expert Segment Leader Intuit Small Business & Self-Employed Group KENNETH LIN POULOMI DAMANY Unlock smart money decisions CEO and Founder Credit Karma GM and VP, Credit Karm
Slide 6: Sasan Goodarzi
Sasan Goodarzi
Slide 7: History of self-disruption and re-imagination
History of self-disruption and re-imagination ERA OF ERA OF ERA OF ERA OF ERA OF ARTIFICIAL DOS WINDOWS WEB MOBILE AND CLOUD INTELLIGENCE INTU SHARE PRICE Declared Bold 2025 Goals, Refreshed Strategy and Big Bets Accelerating platform innovation Refreshed Values and True North Goals IPO 1980s 1990s
Slide 8: Solid track record delivering for each stakeholder
Solid track record delivering for each stakeholder CULTURE AND REPUTATION Fortune 100 Best Companies Fortune | Fast Company | Glassdoor | Forbes | Barron’s 2015 – 2021 2002 2021 INTUIT CUSTOMER GROWTH STOCK PERFORMANCE 1600% 102M NASDAQ 500% S&P 500 29M 300% July 2010 July 2021 Jan 2010 July 2021 8
Slide 9: Delivered strong financial results in FY'21
Delivered strong financial results in FY’21 GROWTH RATE ORIGINAL ACTUAL PRIOR YEAR ACTUAL GUIDANCE Revenue $9,633 $7,679 25% 15-17% GAAP Operating Income $2,500 $2,176 15% 9-12% Non-GAAP Operating Income $3,485 $2,668 31% 12-14% GAAP Diluted EPS $7.56 $6.92 9% (21-23%) Non-GAAP Diluted EPS $9.74 $7.
Slide 10: FY'21 reflections
FY’21 reflections Progress Made PERFORMANCE DRIVERS Progress Needed Strong culture, high engagement, talent EMPLOYEES High stress, connectedness, DE&I Innovation accelerating across horizons CUSTOMERS Unrivaled impact of innovation ` Job creation & readiness, carbon positive COMMUNITY Sustaining Pro
Slide 11: What matters most to our customers
What matters most to our customers Consumer Problems Small Business & Self-Employed Problems Need Rank Need Rank Make Ends Meet 1 Get Customers 1 Get Paid 2 Maximize Tax Refund 2 Get Capital 3 Save More 3 Pay Workers 4 Pay Off Debt 4 Access Advice 5 Know Where I Stand 5 Be Compliant And Organized 6
Slide 12: Key trends that can be a catalyst for growth
Key trends that can be a catalyst for growth AI Reinventing Digital Mid-Market User Experiences Money Offerings Moving to Cloud Virtual Online and Experiences Omnichannel Commerce 12
Slide 13: Intuit's game plan to deliver for customers
Intuit’s game plan to deliver for customers MISSION VALUES 2025 GOALS TRUE NORTH GOALS STRATEGY BIG BETS METRICS 13
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Slide 15: Our Values
Our Values Integrity Without Customer Stronger We Care And Compromise Courage Obsession Together Give Back We speak the truth and We are bold and fearless We fall in love with our We champion We are stewards assume best intent. in how we think and act. customers’ problems. diversity, inclusion, and
Slide 16: Bold 2025 Goals
Bold 2025 Goals Prosperity Double household savings rate and improve SMB success rate >10 pts vs. industry Reputation Best-in-Class of Most Reputable Companies Growth >200M customers, accelerating revenue growth Prosperity based on customers on Intuit’s platform. U.S. average household savings rate
Slide 17: True North Goals
True North Goals Deliver best-we-can-be results in the current period for each key stakeholder, while building the foundation for an even stronger future Employees Customers Communities Shareholders Empower the world’s top talent Delight customers by solving Make a difference in Drive long-term grow
Slide 18: Intuit Strategy
Intuit Strategy More Money No Work Complete Confidence AI-Driven Expert Platform 18
Slide 19: Five Big Bets accelerating growth
Five Big Bets accelerating growth 1 Revolutionize speed to benefit 2 Connect people to experts 3 Unlock smart money decisions 4 Be the center of small business growth 5 Disrupt the small business mid-market 19
Slide 20: Five Big Bets accelerating growth
Five Big Bets accelerating growth 4 Be the center of small business growth 5 Disrupt the small business mid-market 20
Slide 21: Struggling to grow and manage their business
Struggling to grow and manage their business Be the center of small business growth, disrupt the mid-market Get and Retain customers Optimize cash flow engage customers and manage business and stay compliant 2/3 Small businesses cite finding new 25% Small businesses struggle to 50% Small businesses
Slide 22: The source of truth for your business
The source of truth for your business Provide an innovative platform for small and mid-market businesses to grow and run their business Grow your business Run your business Get customers Deepen business insights Retain customers Pay employees + Get capital Be compliant and organized Get paid fast Ac
Slide 23: Mailchimp brings cutting-edge digital marketing tools
Mailchimp brings cutting-edge digital marketing tools Simple and powerful marketing solution for small and mid-market businesses to get and retain customers Get your Market your Manage your Benefit from insights business online business customer relationships and analytics Build an online presence a
Slide 24: Delivering an innovative customer growth platform
Delivering an innovative customer growth platform Accelerating vision to be the source of truth for small and mid-market businesses Get your Market your Manage your customer Payments Human capital Accounting business online business relationships and expense management and compliance Shoppable Behav
Slide 25: Mailchimp brings technology at scale and customer reach
Mailchimp brings technology at scale and customer reach Global customer engagement and digital marketing platform for growing small and mid-market businesses CORE COMPETENCIES Global* customer reach 13M total users 2.4M monthly active users Data and technology 250+ integration partners 170B 3rd part
Slide 26: Global leader in helping small businesses grow
Global leader in helping small businesses grow Large customer base and strong revenue growth 13M 2.4M 800K 60 total users monthly active users paid customers net promoter score* 95% 20% ~$800M >50% recurring revenue in CY20 revenue growth in CY20 revenue in CY20 revenue outside the U.S. *Average of
Slide 27: Powering Prosperity Around the World
MISSION Powering Prosperity Around the World VALUES Integrity Without Compromise Courage Customer Obsession Stronger Together We Care and Give Back Prosperity Reputation Growth 2025 Double household savings rate and improve SMB Best-in-class of Most >200M customers, accelerating GOALS success rate >
Slide 28: CDI and D4D: Execution excellence secret sauce #1
CDI and D4D: Execution excellence secret sauce #1 An important, …that we, unsolved and those we Deep customer customer enable, can empathy problem solve well SUCCESS Go broad to IS DELIGHT go narrow HERE …and build durable competitive advantage Rapid experiments with customers Customer-Driven Innova
Slide 29: Intuit's Operating System: Execution excellence secret sauce #2
Intuit’s Operating System: Execution excellence secret sauce #2 Intuit Operating System 29
Slide 30: Intuit's Operating System: Execution excellence secret sauce #2
Intuit’s Operating System: Execution excellence secret sauce #2 6 year plan (December) One Intuit Forum 3 year plan (8x Year) (May) Intuit Leadership Org & Talent Conference Review (Quarterly) Intuit (Yearly) Operating State of the System CEO Staff Company (Monthly) (Quarterly) Business and Big Bet
Slide 31: Unique consumer and small business assets at scale
Unique consumer and small business assets at scale 8M TOTAL ACTIVE CUSTOMERS 56M UNIQUE TAX FILERS $345B money movement $105B in refunds1 54M W2s and over 40M 1099s 16M PAID WORKERS 121M MEMBERS 1 in 5 SMB use QB Payroll 41M Monthly Active Users $232B payroll volume Visibility into $7.2T in member d
Slide 32: Our secret sauce, strategy, and assets create advantage
Our secret sauce, strategy, and assets create advantage Our strategy and assets Drive growth and strengthen our durable advantage Large, growing market accelerated by secular shifts aligned with our product strategy Better Products More Strong customer relationships at scale with 102M and Services C
Slide 33: Our strategy and assets position us to penetrate our TAM
Our strategy and assets position us to penetrate our TAM Large market growth opportunities, with a strategy to +$30B increase penetration and grow ARPC SEGMENT CUSTOMERS CUSTOMERS TAM $ TAM $64B $230B $260B CORE ECOSYSTEM GLOBAL SMALL BUSINESS 7M 75M SELF-EMPLOYED 1M CONSUMER 94M 240M DIY and Assist
Slide 34: Our strategy is driving momentum
Our strategy is driving momentum Three big opportunities SEGMENT CUSTOMERS # TAM $ TAM Grow the Core SMALL BUSINESS 7M $64B $230B $260B Consumer tax and SMB financial 75M SELF-EMPLOYED 1M management software (FMS) in the U.S. DIY and Assisted platforms (TurboTax and QuickBooks) CONSUMER 94M 240M Con
Slide 35: Our strategy is driving momentum
Our strategy is driving momentum Three big opportunities SEGMENT CUSTOMERS # TAM $ TAM Grow the Core SMALL BUSINESS 7M $64B $230B $260B Consumer tax and SMB financial 75M SELF-EMPLOYED 1M management software (FMS) in the U.S. DIY and Assisted platforms (TurboTax and QuickBooks) CONSUMER 94M 240M Con
Slide 36: Our strategy is driving momentum
Our strategy is driving momentum Three big opportunities SEGMENT CUSTOMERS # TAM $ TAM Grow the Core SMALL BUSINESS 7M $64B $230B $260B Consumer tax and SMB financial 75M SELF-EMPLOYED 1M management software (FMS) in the U.S. DIY and Assisted platforms (TurboTax and QuickBooks) CONSUMER 94M 240M Con
Slide 37: Accelerating innovations across horizons
Accelerating innovations across horizons EXPECTED CONTRIBUTIONS FROM INNOVATIONS QuickBooks Online U.S. QuickBooks Payroll U.S. and QuickBooks Time Near-term QuickBooks Payments U.S. TurboTax Online TurboTax Live Credit Karma Credit Cards and Personal Loans QuickBooks Online Advanced QuickBooks Cash
Slide 38: History of self-disruption and re-imagination
History of self-disruption and re-imagination ERA OF ERA OF ERA OF ERA OF ERA OF ARTIFICIAL DOS WINDOWS WEB MOBILE AND CLOUD INTELLIGENCE INTU SHARE PRICE Declared Bold 2025 Goals, Refreshed Strategy and Big Bets Accelerating platform innovation Refreshed Values and True North Goals IPO 1980s 1990s
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Slide 40: Platform Immersion Experience
Platform Immersion Experience MARK NOTARAINNI ARIEGE MISHERGHI Connect people to experts Chief Customer Success Officer VP and Expert Segment Leader Intuit Small Business & Self-Employed Group KENNETH LIN POULOMI DAMANY Unlock smart money decisions CEO and Founder Credit Karma GM and VP, Credit Karm
Slide 41: Alex Chriss
Alex Chriss
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Slide 43: What matters most to our customers
What matters most to our customers Consumer Problems Small Business & Self-Employed Problems Need Rank Need Rank Make Ends Meet 1 Get Customers 1 Get Paid 2 Maximize Tax Refund 2 Get Capital 3 Save More 3 Pay Workers 4 Pay Off Debt 4 Access Advice 5 Know Where I Stand 5 Be Compliant And Organized 6
Slide 44: Small Business and Self-Employed strategy
Small Business and Self-Employed strategy Grow Connect Expand the Core the Ecosystem Globally Grow and transform the Financial Connect customers to benefits Expand our platform to win in Management Software category in the across the QuickBooks ecosystem geographies outside the U.S. U.S. through inn
Slide 45: Uniquely positioned to address key SMB needs with our connected ecosystem
Uniquely positioned to address key SMB needs with our data-advantaged, connected ecosystem Customer segments QuickBooks ecosystem GROW BUSINESS ENTER- PRISE 100+ ACCOUNTING PAYMENTS MID-MARKET 10–100 employees APPS CASH MGMT SMALL BUSINESS 0–10 employees PAYROLL CAPITAL SELF-EMPLOYED 0 employees TIM
Slide 46: FY'21 customer and ARPC strength
FY’21 customer and ARPC strength Grew our base 16%, retained 83%, delighted them with our benefits, and increased ARPC 13% CUSTOMER GROWTH BASE MONETIZATION QBO/SE 5.3M YoY 5.3M Customers 4.6M >$1,000 ARPC +38% >$1,000 ARPC 3M JULY ‘18 $200 - $1,000 ARPC $200 - $1,000 ARPC +23% 1M MAY ‘15 1 100K JAN
Slide 47: 26% online revenue growth in FY'21
26% online revenue growth in FY’21 Strong growth across all 3 pillars Online Grow the Core $2.7B Ecosystem Revenue • 24% U.S. online accounting revenue growth (e.g., QBO, Advanced, Live) • ARPC growth driven by mix shift and higher effective prices (e.g., in the U.S., QBO Advanced base grew 57% whil
Slide 48: Small Business and Self-Employed strategy
Small Business and Self-Employed strategy Grow Connect Expand the Core the Ecosystem Globally Grow and transform the Financial Connect customers to benefits Expand our platform to win in Management Software category in the across the QuickBooks ecosystem geographies outside the U.S. U.S. through inn
Slide 49: Grow the Core
Grow the Core Illustrative innovations driving customer impact QBO ADVANCED QBO Advanced DISRUPT THE SMALL BUSINESS MID-MARKET OPPORTUNITY $47B mid-market opportunity across our ecosystem worldwide 1.7M mid-market businesses with 10–100 employees 10–12% of customers outgrow standard QBO SKUs each ye
Slide 50: Connect the Ecosystem
Connect the Ecosystem Illustrative innovations driving customer impact PAYROLL & TIME TRACKING Payroll & Time Tracking BE THE CENTER OF SMALL BUSINESS GROWTH OPPORTUNITY $5B U.S. SMB Payroll and Time Tracking category >30% of SMBs still use pen, paper, or spreadsheets for payroll 50% of SMBs and sel
Slide 51: Connect the Ecosystem
Connect the Ecosystem Illustrative innovations driving customer impact GET PAID Payments BE THE CENTER OF SMALL BUSINESS GROWTH UPFRONT OPPORTUNITY $26B U.S. SMB payments and invoicing category $1.5T of invoices created in QuickBooks every year 66% of SMB owners said that the time to process a payme
Slide 52: Expand Globally
Expand Globally Illustrative innovations driving customer impact CA PAYROLL TAX CENTRE Established Markets SCALE RAPIDLY AND PROFITABLY OPPORTUNITY 10M+ serviceable SMBs across Canada, United Kingdom, and Australia Proven QBO product-market fit, favorable unit economics and strong brand awareness $2
Slide 53: Money Portfolio
Money Portfolio Meeting customers’ cash flow and money management needs 60B SMB data points enable unique, end-to-end money offerings to optimize cash flow Money In Money Out Capital Money Management Invoicing Recurring Billing Debit Card** Bill Pay* Get Paid Upfront Term Loan Bank Account** Smart E
Slide 54: Sandra
Sandra Owner, graphic design studio 54
Slide 55: Money In, Money Out, Capital, Money Management
Money In Money Out Capital Money Management Invoicing Recurring Billing Debit Card** Bill Pay* Get Paid Upfront Term Loan Bank Account** Smart Envelopes Remote Check Payroll + Contractor Loan Marketplace In-Person ACH Transfer PPP Cash Flow Planner Rewards** Deposit Payments Invoice sent electronica
Slide 56: Mid-Market Portfolio
Mid-Market Portfolio Meeting mid-market needs in the core and across the ecosystem Accounting & Compliance Human Capital Management Payments & Expense Operations & Growth Workflow Time Recurring Custom B2B/B2C Accounting Payroll Invoicing In-Person Management Tracking Billing Reporting Commerce QB L
Slide 57: Kevin
Kevin Owner, AB Electric Regional electric company 57
Slide 58: Accounting & Compliance, Human Capital Management, Payments & Expense
Accounting & Compliance Human Capital Management Payments & Expense Operations & Growth Workflow Time Recurring Custom B2B/B2C Accounting Payroll Invoicing In-Person Management Tracking Billing Reporting Commerce QB Live Setup Insurance HR Expert Marketing QB Live B2B Debit Card** Bill Pay* CRM* & C
Slide 59: The source of truth for your business
The source of truth for your business Provide an innovative platform for small and mid-market businesses to grow and run their business Grow your business Run your business Get customers Deepen business insights Retain customers Pay employees + Get capital Be compliant and organized Get paid fast Ac
Slide 60: Mailchimp brings cutting-edge digital marketing tools
Mailchimp brings cutting-edge digital marketing tools Simple and powerful marketing solution for small and mid-market businesses to get and retain customers Get your Market your Manage your Benefit from insights business online business customer relationships and analytics Build an online presence C
Slide 61: Get your business online
Get your business online Sell online through web stores, shoppable social pages, appointment scheduling, and email NE W NE W 555K websites created in 2020, 14K appointments created in 6B emails sent between Black Friday web stores launched in May 2021 first four months since launch and Cyber Monday
Slide 62: Market your business
Market your business Create marketing campaigns that make it easy to send the right messages at exactly the right moments 12M designs created instantly with 2.2M active marketing 78% of paid users leverage multiple AI-powered Creative Assistant automations running today channels, including social an
Slide 63: Manage your customer relationships
Manage your customer relationships Gain key audience understanding through centralized contact data and predictive insights 231M mailing list subscribers 51% higher click through 500K lifetime value models run per created via sign-up forms in 2020 rates when segment tool used month to optimize prosp
Slide 64: Benefit from insights and analytics
Benefit from insights and analytics Track, test and understand marketing performance to market better and smarter with each campaign 2B+ data points make it easy to 8 marketing campaign 10K emails sent every second benchmark and optimize variations can be tested at once that inform best practices Re
Slide 65: Delivering an innovative customer growth platform
Delivering an innovative customer growth platform Accelerating vision to be the source of truth for small and mid-market businesses Get your Market your Manage your customer Payments Human capital Accounting business online business relationships and expense management and compliance Shoppable Behav
Slide 66: Key takeaways
Key takeaways Excited by the new ways we are shaping our business and the runway ahead Durable strategy 1 Strategy and approach remains durable and grounded in customers’ needs Serving more customers and meeting more customers’ needs 2 Disrupting the low-end, penetrating mid-market, broadening the a
Slide 67: Execution of our strategy creates a path to robust, long-term growth
Execution of our strategy creates a path to robust, long-term growth Key drivers for growth LEVERS MULTI-YEAR RANGE Customers 10–20% LONG-TERM ARPC 10–20% EXPECTATION SMALL BUSINESS AND 10–15% ANNUAL REVENUE GROWTH SELF-EMPLOYED GROUP Online Revenue Growth >30% Total Revenue Growth 10–15% 67
Slide 68: Greg Johnson
Greg Johnson 68
Slide 69: Strong customer growth
Strong customer growth TURBOTAX UNITS (U.S. ONLY) 6% TurboTax TTO (DIY & TTL) customer growth FFA 45M TurboTax Units • ~100% TurboTax Live customer growth Desktop & Retail • 13% growth in under-penetrated segments: 31M Latino, investors, self-employed FY’15 • 1.9M net customer adds 19M FY’09 JULY ‘0
Slide 70: Revenue acceleration
Revenue acceleration CG REVENUE 14% Consumer Group TTO (DIY & TTL) revenue growth Consumer Group Desktop; Retail & Other $3.6B Revenue • 4th consecutive year of highly predictable double-digit growth • +20% growth in under-penetrated segments: $1.8B Latino, investors, self-employed FY’15 • +8% incre
Slide 71: Successfully executing our strategy, opportunities ahead
Successfully executing our strategy, opportunities ahead KEY STATS PLATFORM ü ~1 pt share increase of IRS returns ü ~100% TurboTax Live customer growth Extend our Lead Transform the in DIY Tax Prep Assisted Category ü Tripled the growth rate of investor customers ü Delighted consumers and pros (63 a
Slide 72: What matters most to our customers
What matters most to our customers Consumer Problems Small Business & Self-Employed Problems Need Rank Need Rank Make Ends Meet 1 Get Customers 1 Get Paid 2 Maximize Tax Refund 2 Get Capital 3 Save More 3 Pay Workers 4 Pay Off Debt 4 Access Advice 5 Know Where I Stand 5 Be Compliant And Organized 6
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Slide 74: Intuit Strategy
Intuit Strategy AI-Driven Expert Platform 74
Slide 75: Creating a network advantage
Creating a network advantage 8M TOTAL ACTIVE CUSTOMERS 56M UNIQUE TAX FILERS $345B money movement $105B in refunds1 54M W2s and over 40M 1099s 16M PAID WORKERS 121M MEMBERS 1 in 5 SMB use QB Payroll 41M Monthly Active Users $232B payroll volume Visibility into $7.2T in member debt 700K TAX PROS & PR
Slide 76: Financial Freedom for all Consumers
Financial Freedom for all Consumers 76
Slide 77: Consumer strategic roadmap
Consumer strategic roadmap PLATFORM Extend Transform Disrupt Lead in DIY Assisted Category Consumer Finance REVOLUTIONIZE CONNECT PEOPLE UNLOCK SMART SPEED TO BENEFIT TO EXPERTS MONEY DECISIONS Data and AI-driven experiences Virtual expert platform that AI-driven platform that autonomously that deli
Slide 78: US tax industry landscape
US tax industry landscape Shifting our focus to growing total share of IRS returns 10-YR 10-YEAR U.S. TAX INDUSTRY TRENDS (M) CAGR Growth drivers 165 +1.4% 160 151 150 153 154 146 145 148 149 • Transforming the assisted category TOTAL IRS 143 with TurboTax Live 70 72 +0.7% 68 69 69 70 70 • Win with
Slide 79: Opportunity: TurboTax online US acquisition funnel
Opportunity: TurboTax online US acquisition funnel FY’20 FY’21 YoY IMPLICATIONS 2nd year in a row of stimulus-driven TOTAL IRS RETURNS 160M 165M +3% industry acceleration Increased interest in online tax TRAFFIC 112M 127M +13% offerings; extended tax season TOTAL DIY DIY Returns* kept pace with RETU
Slide 80: Gaining share of total industry with TurboTax Live innovations
Gaining share of total industry with TurboTax Live innovations TOTAL ADDRESSABLE MARKET (TAX) TURBOTAX U.S. AVERAGE REVENUE PER RETURN $105 $97 $89 ASSISTED CONSUMER SMB $80 $20.2B $9.5B $68 $62 $63 $58 $49 $49 $52 $46 $47 $47 $43 DIY $4.1B AVERAGE REVENUE PER RETURN 2011 2012 2013 2014 2015 2016 20
Slide 81: Extend our lead in DIY tax prep
Extend our lead in DIY tax prep Revolutionize speed to benefit UNIVERSAL Opportunity DATA IMPORT SELF-EMPLOYED 127M consumers visited TurboTax 76M actually filed with DIY software 37.7M filed with TurboTax Online 16.7M filers logged into TurboTax, but did not complete Proof Points 36M tax forms auto
Slide 82: Transform the assisted category
Transform the assisted category Connect people to experts FULL Opportunity SERVICE TT LIVE 2.0 $20B assisted tax preparation TAM ENHANCEMENTS 88M customers seek out filing assistance every year 10M estimated churn within the assisted category 4M filers defect annually to assisted solution Proof Poin
Slide 83: Disrupt consumer finance
Disrupt consumer finance Unlock smart money decisions with Intuit and Credit Karma combined capabilities Our mission is to leverage GROW TURBOTAX BY the combined strengths of PROVIDING ACCESS TO Credit Karma and TurboTax CREDIT KARMA MEMBERS to deliver the best-in-class holistic tax experience for C
Slide 84: Single platform that flexes to each customer's journey
Single platform that flexes to each customer’s journey Maximizing your tax refund and helping you unlock smart money decisions Retail Recent Marketing Employee College Grad Professional TTO customer that adopts CK TTO customer that upgrades to CK member that adopts TT Live and then adopts CK TTO Ful
Slide 85: Execution of our strategy creates a path to robust, long-term growth
Execution of our strategy creates a path to robust, long-term growth Key drivers for growth GROWTH 1 PT OF GROWTH MULTI-YEAR DRIVERS YIELDS REVENUE OF RANGE IRS returns ~1% 0-2% LONG-TERM DIY category share ~2.5% 2-4% EXPECTATION CONSUMER GROUP 8–12% ANNUAL REVENUE GROWTH Total TurboTax ~1.5% 1-2% s
Slide 86: Kenneth Lin
Kenneth Lin
Slide 87: Unlocking smart money decisions
Unlocking smart money decisions Consumers’ most important problem is making ends meet Finding the right financial Struggling with paying Seeking to do better, products is a challenge off debt and saving money but need help Amount consumers overpay $14.3T Total household debt in the <30% Americans fe
Slide 88: Data platform with powerful network effects
Data platform with powerful network effects 2007 2009 2011 2013 2015 2017 2019 2021 The Idea Launched a Launched Launched a Launched Launched Home Launched in Credit Karma Money credit report approval odds financial account Direct Dispute™ Marketplace and United Kingdom integrations with TurboTax Fo
Slide 89: Credit Karma vision
Credit Karma vision Autonomously help consumers save, pay down debt and get faster access to money Help consumers find the Put more money Provide financial right financial products in consumers’ pockets expertise and insights Match consumers with personalized Maximize their tax refund, connect Help
Slide 90: Help consumers find the right financial products
Help consumers find the right financial products Match consumers with personalized offers on credit cards, loans and insurance, based on their data OUTSTANDING BADGE: The outstanding badge on a financial offer from a loan or credit card partner lets the member know they have a high likelihood of bei
Slide 91: Put more money in consumers' pockets
Put more money in consumers’ pockets Maximize their tax refund, connect them to checking and interest-bearing savings accounts and enable faster access to their money INTRODUCE CONSUMERS TO CREDIT KARMA MONEY: Credit Karma Money helps members change their relationship with money, with a focus on sav
Slide 92: Provide financial expertise and insights
Provide financial expertise and insights Help consumers make better decisions about their money by delivering insights COMPLETE PROFILE: By combining Credit Karma credit and assets data with Intuit’s verified income and cash flow data, we can offer unparalleled financial insights to help members und
Slide 93: Credit Karma strategy
Credit Karma strategy Grow Expand Develop Core Business Growth Verticals Emerging Verticals Grow the core business, Expand growth verticals, Develop emerging verticals, including credit cards including home loans, focused on money innovation and personal loans auto loans and insurance including savi
Slide 94: Accelerating growth with combined capabilities
Accelerating growth with combined capabilities Customer benefit powered by scale and trust helps unlock progress and prosperity GROW TURBOTAX BY PROVIDING ACCESS TO CREDIT KARMA MEMBERS Grow member base by introducing Intuit customers to Credit Karma. GROW CREDIT KARMA TurboTax and Turbo MEMBER BASE
Slide 95: Accelerating growth with combined capabilities
Accelerating growth with combined capabilities Customer benefit powered by scale and trust helps unlock progress and prosperity GROW TURBOTAX BY PROVIDING ACCESS TO CREDIT KARMA MEMBERS GROW CREDIT KARMA MEMBER BASE Accelerate Credit Karma Money with TurboTax. This year, we integrated Credit Karma M
Slide 96: Accelerating growth with combined capabilities
Accelerating growth with combined capabilities Customer benefit powered by scale and trust helps unlock progress and prosperity GROW TURBOTAX BY PROVIDING ACCESS TO CREDIT KARMA MEMBERS GROW CREDIT KARMA MEMBER BASE INTEGRATED CREDIT KARMA MONEY WITH TURBOTAX Integrated Credit Karma Money with Quick
Slide 97: Powerful data platform
Powerful data platform Our trusted brands will deliver breakthrough benefits that improve members’ lives CAPABILITIES Large customer base ~121M members Connections to over Scale and trust and trusted brand 24,000 financial institutions 76 net promoter score Connecting customers 55,000 tax and financ
Slide 98: Credit Karma's data platform and recurring engagement creates powerful network effects
Credit Karma’s data platform and recurring engagement creates powerful network effects, driving revenue growth Financial Partners Win Members Win Credit Karma financial partners win because we Credit Karma members win because we match them help our members understand how likely it is that to financi
Slide 99: Strategy and business model that unlocks TAM, creating durable growth
Strategy and business model that unlocks TAM, creating durable growth Large TAM with significant opportunity to increase penetration $85B CREDIT KARMA TAM There is significant opportunity to increase penetration within our existing addressable Grow Core Business – $17B 5% share of credit card and ma
Slide 100: Credit Karma revenue is driven by member engagement and transactions
Credit Karma revenue is driven by member engagement, frequency, transactions, and revenue per transaction FY’20 FY’21 YoY Members 112M 121M 8% Average Monthly Active Users (MAUs) 39M 41M 6% Average Revenue per MAU Driven by growth in: Frequency of Visits, $22 $28 29% Transactions/MAU, Revenue/Transa
Slide 101: Execution of our strategy creates a path to robust, long-term growth
Execution of our strategy creates a path to robust, long-term growth Key drivers for growth LEVERS MULTI-YEAR RANGE Members 4–6% LONG-TERM Average MAU 6–8% EXPECTATION CREDIT KARMA 20–25% ANNUAL REVENUE GROWTH Average Revenue Per MAU Driven by growth in: Frequency 10–15% of visits, Transactions / MA
Slide 102: Michelle Clatterbuck
Michelle Clatterbuck
Slide 103: Outstanding performance vs. FY'21 objectives
Outstanding performance vs. FY’21 objectives Last year’s summary FY’21 Outcomes • Double-digit revenue growth 25% Intuit revenue growth • Fast-growing SaaS business 39% Combined platform revenue growth • Disciplined investments yield operating income dollars growing 26% Small business online ecosyst
Slide 104: Bold 2025 Goals
Bold 2025 Goals Prosperity Double household savings rate and improve SMB success rate >10 pts vs. industry Reputation Best-in-Class of Most Reputable Companies Growth >200M customers, accelerating revenue growth Prosperity based on customers on Intuit’s platform. U.S. average household savings rate
Slide 105: Bold 2025 Goals
Bold 2025 Goals FY’19 FY’20 FY’21 Double household savings rate and 9% 15% 17% Household 1.2x avg 1.2x avg 1.2x avg Prosperity improve SMB success rate Savings Rate1 U.S. savings rate U.S. savings rate U.S. savings rate >10 pts vs. industry SMB Success Rate 69%3 SMB 5-year survival rate ~50% 2 Best-
Slide 106: Financial principles remain enduring
Financial principles remain enduring Grow organic revenue double digits • Customer growth fueled by delivery of the customer benefit • Grow average revenue per customer Operating income dollars grow faster than revenue • Revenue grows faster than expense • Acceptable LTV/CAC as we grow online Deploy
Slide 107: Combined platform revenue driving revenue growth
Combined platform revenue driving revenue growth • QuickBooks Online, TurboTax Online, and Credit Karma revenue grew 39% to $6.6B ~82% in FY’21 • Small business online ecosystem ~62% revenue grew 26% in FY‘21 • >80% of Intuit’s FY’22 revenue is expected to come from FY'20 FY'21 FY'22 FY'23 FY'24 exi
Slide 108: Good progress with large opportunity ahead
Good progress with large opportunity ahead TOTAL QUICKBOOKS PAYING CUSTOMERS SUBSCRIBER BASE 5.3M YoY QBO, DESKTOP SUBS, DESKTOP UNITS BY FY 4.6M >$1,000 >$1,000ARPC ARPC +38% >$1,000 ARPC +23% 6.3M $200 - $1,000 $200 ARPC - $1,000 $200 $200 - $1,000 - $1,000 ARPC 5.2M 5.6M ARPC ARPC 4.2M 3.5M FY'17
Slide 109: Very pleased with ARPR performance
Very pleased with ARPR performance SHIFTING OUR FOCUS TO TURBOTAX U.S. GROWING TOTAL SHARE OF IRS RETURNS AVERAGE REVENUE PER RETURN 10-year U.S. tax industry trends (M) 10-YR CAGR 165 +1.4% $105 160 151 150 153 154 $97 146 145 148 149 143 $89 $80 70 72 +0.7% 68 69 69 70 70 $68 68 67 68 $63 CPA/Pro
Slide 110: Excited about the opportunities ahead
Excited about the opportunities ahead Large TAM with significant FY’21 FY’20 YoY opportunity to increase penetration Members 112M 121M 8% $85B CREDIT KARMA TAM Average Monthly Active Users (MAUs) 39M 41M 6% Grow Core Business – $17B 5% share of credit card and personal loan transactions Credit cards
Slide 111: ARPC: Improved monetization over time
ARPC: Improved monetization over time FY’22– FY’24 FY’20 ARPC FY’21 ARPC EXPECTED TRAJECTORY QuickBooks Online U.S. INCREASE: Maturing base, online services and new product $651 $716 innovation (e.g., QB Live & QBO Advanced) QuickBooks International $153 $188 INCREASE: Maturing base, lower discounti
Slide 112: Disciplined investment: Drives operating income growth
Disciplined investment: Drives operating income growth Focus is on durable customer and revenue growth; manage operating margin at Intuit level GAAP BASIS, UNLESS NOTED OTHERWISE FY’21 % OF REVENUE LONG-TERM EXPECTATION Revenue 100 Double-digit growth driven by customers and ARPC Gross margin 82 ~ %
Slide 113: Platform evolution drives margin expansion over time
Platform evolution drives margin expansion over time Leveraging key services and capabilities across our businesses Increasing developer velocity to drive faster delivery of customer benefits across products with data Technology management and AI capabilities, expert services, money movement, and fr
Slide 114: Prioritizing investment opportunities is in our DNA
Prioritizing investment opportunities is in our DNA Investing to drive customer, revenue and operating income growth Investing in highest- Areas of yielding opportunities Investment Include: • Investing to drive durable growth Revolutionize speed to benefit • Focusing on organic growth drivers Conne
Slide 115: A track record of margin expansion
A track record of margin expansion GAAP OPERATING MARGIN Platform strategy drives margin expansion over time 28.3% 27.3% 25.9% 26.0% • GAAP guidance in FY’22 implies operating margin declines just over 23.8% 2 points, due to investments in stock-based compensation, and full year impact of the FY'18
Slide 116: Overall capital allocation
Overall capital allocation M&A A healthy mix of (in billions) $6.2 uses of capital Repay Debt • Investing in organic growth drivers Dividends (R&D, infrastructure, sales & mktg) Share Repurchases • Use acquisitions to accelerate speed and velocity, growth in talent and technology Capex and fill out
Slide 117: Share repurchase guiding principles
Share repurchase guiding principles Our intent is to be in the market each quarter, guided by these principles Share repurchase is used to return cash to shareholders in the absence of acceptable investment opportunities 1 At a maximum, we limit repurchase amounts to: • Cash in excess of liquidity n
Slide 118: FY'22 guidance: Double-digit revenue growth
FY’22 guidance: Double-digit revenue growth GUIDANCE FY’22 GROWTH Small Business & Self-Employed $5,270 - $5,340 12% - 14% Consumer $3,915 - $3,955 10% - 11% Credit Karma $1,345 - $1,380 18% - 21%* ProConnect $520 - $525 1% - 2% TOTAL REVENUE $11,050 -$11,200 15% - 16% *FY'22 Credit Karma revenue gr
Slide 119: FY'22 guidance: Strong operating income growth
FY’22 guidance: Strong operating income growth GUIDANCE FY’22 GROWTH GAAP Operating Income $2,605 - $2,680 4% - 7% Non-GAAP Operating Income $4,050 - $4,125 16% - 18% GAAP Diluted EPS $7.46 - $7.66 (1)% – 1% Non-GAAP Diluted EPS $11.05 - $11.25 13% - 16% Dividend per share $2.72 15% (In millions, ex
Slide 120: Accelerating innovations across horizons
Accelerating innovations across horizons EXPECTED CONTRIBUTION FROM INNOVATIONS QuickBooks Online U.S. QuickBooks Payroll U.S. and QuickBooks Time Near-term QuickBooks Payments U.S. TurboTax Online TurboTax Live Credit Karma Credit Cards and Personal Loans QuickBooks Online Advanced QuickBooks Cash
Slide 121: Large market opportunity, consistent operating excellence
Large market opportunity, consistent operating excellence • Double-digit revenue growth • Fast-growing platform company • Disciplined investments yield operating income dollars growing faster than revenue • AI-driven expert platform strategy enables new drivers of operating margin expansion • Consis
Slide 122: Q&A
Q&A
Slide 123: Q&A
Q&A Sasan Alex Greg Kenneth Michelle Goodarzi Chriss Johnson Lin Clatterbuck CEO GM, Small Business GM, Consumer Group CEO and Founder, CFO & Self-Employed Group Credit Karma 123
Slide 124: Appendix
Appendix
Slide 125: About non-GAAP financial measures
About non-GAAP financial measures The accompanying presentation contains non-GAAP financial measures. Table 1, Table 2 and Table 3 reconcile the non-GAAP financial measures in the presentation to the most directly comparable financial measures prepared in accordance with Generally Accepted Accountin
Slide 126: About non-GAAP financial measures (cont.)
About non-GAAP financial measures (cont.) The following are descriptions of the items we exclude from our non-GAAP financial measures. Share-based compensation expenses. These consist of non-cash expenses for stock options, restricted stock units, and our Employee Stock Purchase Plan. When consideri
Slide 127: Table 1: Reconciliation of historical non-GAAP financial measures
Table 1: Reconciliation of historical non-GAAP financial measures to the most directly comparable GAAP financial measures (Dollars in millions, except per share amounts) Fiscal Fiscal 2021 2020 GAAP operating income $ 2,500 $ 2,176 Amortization of acquired technology 50 22 Amortization of other acqu
Slide 128: Table 2: Reconciliation of forward-looking guidance for non-GAAP financial measures
Table 2: Reconciliation of forward-looking guidance for non-GAAP financial measures to projected GAAP revenue, operating income and EPS (Dollars in millions, except per share amounts) Forward-Looking Guidance GAAP Non-GAAP Range of Estimate Range of Estimate From To Adjustments From To Twelve Months
Slide 129: Table 3: Calculation of free cash flow
Table 3: Calculation of free cash flow (Dollars in millions) Fiscal Fiscal Fiscal Fiscal 2021 2020 2019 2018 Net cash provided by operating activities $ 3,250 $ 2,414 $ 2,324 $ 2,112 Less capital expenditures: Purchases of property and equipment (53) (59) (76) (38) Capitalization of internal use sof
Slide 130: Cautions about forward-looking statements
Cautions about forward-looking statements Except for historical or current facts, the content in this presentation contains forward-looking statements, which include expectations regarding our prospects for the business in fiscal 2022 and beyond; our growth outside the US; the timing and growth of r