Intuit Inc. · NASDAQ:INTU
Intuit — Investor Day (September 2020)
113 slides from Intuit's investor day presentation, Sep 23, 2020
Slide 1: Investor Day, September 23, 2020
2020 September 23, 2020
Slide 2: Kim Watkins
Kim Watkins 2
Slide 3: Investor day agenda
Investor day agenda Welcome Kim Watkins – VP, Investor Relations Evolution to an AI-Driven Expert Platform Sasan Goodarzi – Chief Executive Officer Platform Immersion Experience Kim Watkins – VP, Investor Relations BREAK Small Business & Self-Employed Platform Alex Chriss – GM, Small Business & Self
Slide 4: Forward-looking statements; Non-GAAP financial measures
Forward-looking statements These presentation materials include forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled “Cautions about forward-looking statements” in the enclosed Appendix for
Slide 5: Platform Immersion Experience
Platform Immersion Experience MARIANNA TESSEL ALEX BALAZS REVOLUTIONIZE SPEED TO BENEFIT Chief Technology Officer Chief Architect & SVP Data Engineering Intuit Intuit MARK NOTARAINNI CASSIE DIVINE CONNECT PEOPLE TO EXPERTS Chief Customer Success Officer SVP, QuickBooks Online Platform Intuit Small B
Slide 6: Sasan Goodarzi
Sasan Goodarzi 6
Slide 7: History of self-disruption and re-imagination
History of self-disruption and re-imagination ERA OF DOS ERA OF WINDOWS ERA OF WEB ERA OF MOBILE AND CLOUD TurboTax Live INTU SHARE PRICE TurboTax Windows QBSE - TTSE Turbo QuickBooks QuickBooks Online Online Global Quicken QuickBooks Windows Mobile QuickBooks Windows Quicken SnapTax DOS TurboTax On
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 – 2020 2002 2020 CUSTOMER GROWTH STOCK PERFORMANCE INTUIT 57M 900% NASDAQ 375% S&P 500 29M 200% July 2010 July 2020 Jan 2010 July 2020 8
Slide 9: Delivered strong financial results in FY'20
Delivered strong financial results in FY’20 GROWTH RATE ORIGINAL ACTUAL PRIOR YEAR ACTUAL GUIDANCE Revenue $7,679 $6,784 13% 10-11% GAAP Operating Income $2,176 $1,854 17% 11-14% Non-GAAP Operating Income $2,668 $2,282 17% 10-12% GAAP Diluted EPS $6.92 $5.89 17% 8-10% Non-GAAP Diluted EPS $7.86 $6.7
Slide 10: FY'20 was a year of great progress with room to improve
FY’20 was a year of great progress with room to improve Progress Made PERFORMANCE DRIVERS Progress Needed Purpose-driven, strong culture, agility EMPLOYEES High stress, connectedness, diversity & inclusion Innovation accelerating everywhere CUSTOMERS Speed to first-time benefit for new & existing `
Slide 11: Focused on what matters most to our customers
Focused on what matters most to our customers OUR CONSUMER PROBLEMS OUR SMALL BUSINESS & SELF-EMPLOYED PROBLEMS NEED RANKING PROBLEM NEED RANKING PROBLEM Have enough money to cover my bills and Attracting customers can take time, money and MAKE ENDS GET CUSTOMERS 1 1 marketing expertise that I don’t
Slide 12: Key trends that can be a catalyst for growth
Key trends that can be a catalyst for growth ACCELERATING MONEY OFFERINGS MOVING TO A ONLINE AND VIRTUAL WORLD 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
Slide 14: Intuit Mission
INTUIT MISSION Powering Prosperity Around the World
Slide 15: Our values
Our values Integrity Without Customer Stronger We Care And Courage Compromise Obsession Together Give Back We are bold and fearless We fall in love with our We champion We are stewards We speak the truth and customers’ problems. assume best intent. in how we think and act. diversity, inclusion, and
Slide 16: 2025 aspirations: Bold goals to stretch our imagination
2025 aspirations: Bold goals to stretch our imagination 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 platfo
Slide 17: 2025 aspirations: Bold goals to stretch our imagination
2025 aspirations: Bold goals to stretch our imagination Double household savings rate and improve SMB success rate >10 pts vs. industry PROSPERITY FY’19 FY’20 Household Savings Rate* 9% (1.2x avg U.S. savings rate) 15% (1.2x avg. U.S. savings rate) SMB Success Rate** 56% (+6 pts vs. industry) 60% (+
Slide 18: 2025 goals inform our FY'21-23 True North objectives
2025 goals inform our FY’21-23 True North objectives 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 the M
Slide 19: One Ecosystem
ONE ECOSYSTEM More Money No Work Complete Confidence AI-DRIVEN EXPERT PLATFORM 19
Slide 20: Big Bets: Declared five bets to accelerate growth
Big Bets: Declared five bets to accelerate growth REVOLUTIONIZE SPEED TO BENEFIT CONNECT PEOPLE TO EXPERTS UNLOCK SMART MONEY DECISIONS 20
Slide 21: Unlocking smart money decisions
Unlocking smart money decisions Our customers’ most important problem is making ends meet STRUGGLING WITH PAYING FINDING THE RIGHT FINANCIAL SEEKING TO DO BETTER, OFF DEBT AND SAVING MONEY PRODUCTS IS A CHALLENGE BUT NEED HELP $14.1T Total household debt in $20-40B Amount consumers overpay <30% Amer
Slide 22: Creating a personalized consumer finance platform
Creating a personalized consumer finance platform Transforming FinTech and powering the economy HELP CONSUMERS FIND THE PUT MORE MONEY PROVIDE INSIGHTS RIGHT FINANCIAL PRODUCTS IN CONSUMERS’ POCKETS AND ADVICE Match consumers with offers on loans Give consumers offers for high-yield Connect consumer
Slide 23: Credit Karma is a perfect partner
Credit Karma is a perfect partner Helps members find the right financial product for them based on credit and financial profile CAPABILITIES 37M(2) monthly 88% 69 Net 106M(1) members, active members engagement Promoter Scale & trust across the United States, engage over via mobile Score (3) UK and C
Slide 24: Two mission-based companies joining forces
Two mission-based companies joining forces 24
Slide 25: Big Bets: Declared five bets to accelerate growth
Big Bets: Declared five bets to accelerate growth REVOLUTIONIZE SPEED TO BENEFIT CONNECT PEOPLE TO EXPERTS UNLOCK SMART MONEY DECISIONS BE THE CENTER OF SMALL BUSINESS GROWTH DISRUPT THE SMALL BUSINESS MID-MARKET 25
Slide 26: History of self-disruption and re-imagination
History of self-disruption and re-imagination ERA OF ERA OF ERA OF ERA OF DOS WINDOWS WEB MOBILE AND CLOUD INTU SHARE PRICE 1980s 1990s 2000s 2010s to present Intuit Founded Employees: 150 Employees: 4,500 Employees: 10,600 Customers: 1.3M Customers: 5.6M Customers: 57M Revenue: $33M Revenue: $1B Re
Slide 27: History of self-disruption and re-imagination
History of self-disruption and re-imagination ERA OF ERA OF ERA OF ERA OF ERA OF DOS WINDOWS WEB MOBILE AND CLOUD ARTIFICIAL INTELLIGENCE INTU SHARE PRICE Investing in skills of the future Declared refreshed strategy and Big Bets 1980s 1990s 2000s 2010s 2020s FUTURE Employees: 150 Employees: 4,500 E
Slide 28: Powering prosperity around the world
MISSION POWERING PROSPERITY AROUND THE WORLD Integrity Without Compromise Courage Customer Obsession Stronger Together We Care and Give Back VALUES Prosperity Reputation Growth Double household savings rate and improve Best-in-class of Most >200M customers, accelerating 2025 SMB success rate >10 pts
Slide 29: 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 30: Intuit's Operating System: Execution excellence secret sauce #2
Intuit’s Operating System: Execution excellence secret sauce #2 Intuit Operating System 30
Slide 31: 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 (Yearly) (Quarterly) Intuit Operating State of the System CEO Staff Company (Monthly) (Quarterly) Business and Big Bet
Slide 32: Our strategy helps us deliver for customers, build advantage
Our strategy helps us deliver for customers, build advantage TOP STRENGTHS: STRENGTHENING SOURCES OF HOW WE WIN TODAY DURABLE ADVANTAGE TRUSTED REPUTATION Customers and experts become familiar with PLATFORM • Trusted by customers and ecosystem partners (FIs, accts., govts.) workflows; the more offer
Slide 33: Our strategy positions us to penetrate our addressable market
Our strategy positions us to penetrate our addressable market THREE BIG OPPORTUNITIES SEGMENT CUSTOMERS TAM $ TAM GROW THE CORE Our opportunity in consumer tax and SMB financial management software in the U.S. 7M SMALL BUSINESS • Core markets: U.S. • Products (Do-It-Yourself and Assisted): SELF-EMPL
Slide 34: Our strategy positions us to penetrate our addressable market
Our strategy positions us to penetrate our addressable market THREE BIG OPPORTUNITIES SEGMENT CUSTOMERS TAM $ TAM GROW THE CORE Our opportunity in consumer tax and SMB financial management software in the U.S. 7M SMALL BUSINESS • Core markets: U.S. • Products (Do-It-Yourself and Assisted): SELF-EMPL
Slide 35: Our strategy positions us to penetrate our addressable market
Our strategy positions us to penetrate our addressable market THREE BIG OPPORTUNITIES SEGMENT CUSTOMERS TAM $ TAM GROW THE CORE Our opportunity in consumer tax and SMB financial management software in the U.S. 7M SMALL BUSINESS • Core markets: U.S. • Products (Do-It-Yourself and Assisted): SELF-EMPL
Slide 36: Our strategy positions us to penetrate our addressable market
Our strategy positions us to penetrate our addressable market THREE BIG OPPORTUNITIES SEGMENT CUSTOMERS TAM $ TAM GROW THE CORE Our opportunity in consumer tax and SMB financial management software in the U.S. 7M SMALL BUSINESS • Core markets: U.S. • Products (Do-It-Yourself and Assisted): SELF-EMPL
Slide 37: Intuit Mission
INTUIT MISSION Powering Prosperity Around the World
Slide 38: Platform Immersion Experience
Platform Immersion Experience MARIANNA TESSEL ALEX BALAZS REVOLUTIONIZE SPEED TO BENEFIT Chief Technology Officer Chief Architect & SVP Data Engineering Intuit Intuit MARK NOTARAINNI CASSIE DIVINE CONNECT PEOPLE TO EXPERTS Chief Customer Success Officer SVP, QuickBooks Online Platform Intuit Small B
Slide 39: Alex Chriss
Alex Chriss 39
Slide 40: Focused on what matters most to our customers
Focused on what matters most to our customers OUR CONSUMER PROBLEMS OUR SMALL BUSINESS & SELF-EMPLOYED PROBLEMS NEED RANKING PROBLEM NEED RANKING PROBLEM Have enough money to cover my bills and Attracting customers can take time, money and MAKE ENDS 1 GET CUSTOMERS 1 other obligations marketing expe
Slide 41: Intuit Mission
INTUIT MISSION Powering Prosperity Around the World
Slide 42: 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 across the QuickBooks ecosystem geographies outside the U.S. the U.S. through inn
Slide 43: Started out as Do-It-Yourself accounting software for small businesses
Started out as Do-It-Yourself accounting software for small businesses SERVING MORE CUSTOMERS MEETING MORE CUSTOMER NEEDS PAYROLL ENTER- PRISE TIME 100+ PAYMENTS TRACKING MID-MARKET 10–100 employees ACCOUNTING CAPITAL SMALL BUSINESS 0–10 employees OMNI- CASH MGMT CHANNEL SELF-EMPLOYED 0 employees AP
Slide 44: Then, moved up and down market while building out a robust ecosystem
Then, moved up and down market while building out a robust ecosystem of DIY offerings SERVING MORE CUSTOMERS MEETING MORE CUSTOMER NEEDS PAYROLL ENTER- PRISE TIME 100+ PAYMENTS TRACKING MID-MARKET 10–100 employees ACCOUNTING CAPITAL SMALL BUSINESS 0–10 employees OMNI- CASH MGMT CHANNEL SELF-EMPLOYED
Slide 45: Providing even more benefits early in journey with QB Cash
Now, providing even more benefits to customers early in their journey with QB Cash SERVING MORE CUSTOMERS MEETING MORE CUSTOMER NEEDS PAYROLL ENTER- PRISE TIME 100+ PAYMENTS TRACKING MID-MARKET 10–100 employees ACCOUNTING CAPITAL SMALL BUSINESS 0–10 employees OMNI- CASH MGMT CHANNEL SELF-EMPLOYED 0
Slide 46: Earning the right to serve product-based businesses with QB Commerce
Earning the right to serve product-based businesses with QB Commerce SERVING MORE CUSTOMERS MEETING MORE CUSTOMER NEEDS PAYROLL ENTER- PRISE TIME 100+ PAYMENTS TRACKING MID-MARKET 10–100 employees ACCOUNTING CAPITAL SMALL BUSINESS 0–10 employees OMNI- CASH MGMT CHANNEL SELF-EMPLOYED 0 employees APPS
Slide 47: Gaining momentum in the mid-market with QBO Advanced
Gaining momentum in the mid-market with QBO Advanced & ecosystem offerings SERVING MORE CUSTOMERS MEETING MORE CUSTOMER NEEDS PAYROLL ENTER- PRISE TIME 100+ PAYMENTS TRACKING MID-MARKET 10–100 employees ACCOUNTING CAPITAL SMALL BUSINESS 0–10 employees OMNI- CASH MGMT CHANNEL SELF-EMPLOYED 0 employee
Slide 48: Unlocking non-consumption with assisted live platform
Unlocking non-consumption with assisted live platform SERVING MORE CUSTOMERS MEETING MORE CUSTOMER NEEDS PAYROLL ENTER- PRISE TIME 100+ PAYMENTS TRACKING MID-MARKET 10–100 employees ACCOUNTING CAPITAL SMALL BUSINESS 0–10 employees OMNI- CASH MGMT CHANNEL SELF-EMPLOYED 0 employees APPS DIY VIRTUAL EX
Slide 49: Opening up our long-term growth opportunity in the large SMB TAM
Opening up our long-term growth opportunity as we find new ways to penetrate the large SMB TAM SERVING MORE CUSTOMERS MEETING MORE CUSTOMER NEEDS PAYROLL ENTER- PRISE TIME 100+ PAYMENTS TRACKING MID-MARKET 10–100 employees ACCOUNTING CAPITAL SMALL BUSINESS 0–10 employees OMNI- CASH MGMT CHANNEL SELF
Slide 50: Increased FY'20 focus on higher value offerings and platform monetization
Increased FY’20 focus on higher value offerings and FY’20 CHANGES platform monetization Targeted acquisition on high-value offerings SUBSCRIBER BASE • 36% growth in new subscribers at >$1,000 ARPCs YOY • 24% decline in new subscribers at <$200 ARPCs 5.1M • Helped deliver 100% growth in QBO Advanced
Slide 51: FY'20 was a milestone year
FY’20 was a milestone year Grew our base 12%, retained 77%, delighted them with our benefits, and increased ARPC 15% CUSTOMER GROWTH CUSTOMER DELIGHT MONETIZATION YOY ARPC 5.1M Customers QBO 41 PRS U.S. QBO GROWTH +15 POINTS FY’20 QuickBooks Online U.S. +18% GLOBAL QBO CUSTOMER BASE 46 PRS 3M QBO Se
Slide 52: 31% online revenue growth in FY'20
31% online revenue growth STRONG GROWTH ACROSS ALL 3 PILLARS in FY’20 Grow the Core Online Ecosystem • 38% online accounting revenue $2.2B Revenue growth worldwide • 11% customer growth in U.S. • Higher effective prices and mix shift drive ARPC growth (e.g., QBO Advanced base grew 2x) Connect the Ec
Slide 53: 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 across the QuickBooks ecosystem geographies outside the U.S. the U.S. through inn
Slide 54: Grow the Core
Grow the Core Illustrative innovations driving customer impact QBO ADVANCED DISRUPT THE SMALL BUSINESS MID-MARKET OPPORTUNITY Expanding target segment from 0–10 employees to 0–100 employees $40B mid-market opportunity across our ecosystem QBO ADVANCED 1.5M mid-market businesses with 10–100 employees
Slide 55: Connect the Ecosystem
Connect the Ecosystem Illustrative innovations driving customer impact NEXT DAY PAYMENTS & CAPITAL PAYMENTS & CAPITAL BE THE CENTER OF SMALL BUSINESS GROWTH OPPORTUNITY $39B U.S. SMB Payments and Capital category 66% of SMB owners said that the time to process a payment has the largest impact on cas
Slide 56: Connect the Ecosystem
Connect the Ecosystem Illustrative innovations driving customer impact QB CASH BE THE CENTER OF SMALL BUSINESS GROWTH OPPORTUNITY Free small business bank account with tools to help SMBs save, access, and predict their cash flow 6/10 SMBs regularly struggle with cash flow (pre-pandemic) QB CASH 50%
Slide 57: Connect the Ecosystem
Connect the Ecosystem QB Commerce order and inventory management 57
Slide 58: Expand Globally
Expand Globally Illustrative innovations driving customer impact U.K. PAYROLL ESTABLISHED MARKETS SCALE RAPIDLY & PROFITABLY FIRST TIME USE OPPORTUNITY 10M+ serviceable SMBs in current established markets: Canada, United Kingdom, Australia Proven QBO product market fit, favorable unit economics and
Slide 59: 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 DISRUPTING UP AND DOWN MARKET 2 Disrupting the low-end through innovations such as QB Cash, while also penetrating the mid-m
Slide 60: 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% 60
Slide 61: Greg Johnson
Greg Johnson 61
Slide 62: Strong customer growth
Strong customer growth TURBOTAX UNITS (U.S. ONLY) 11% TURBOTAX CUSTOMER TTL Assisted (DIWM) GROWTH IN FY’20 43M TurboTax Units TTO DIY FFA Ended FY’20 with 43M customers Desktop & Retail • 4.4M net customer adds, +123% growth 31M FY’15 • 37% of TurboTax customers pay us absolutely nothing 19M FY’09
Slide 63: Revenue acceleration
Revenue acceleration CG REVENUE 13% CONSUMER GROUP REVENUE TTL Assisted (DIWM) GROWTH IN FY’20 TTO DIY Consumer Group Desktop; Retail & Other $3.1B Revenue Extend lead in DIY and transform assisted $1.8B • 16% growth in TTO platform revenue FY’15 • >20% growth in under-penetrated segments: LatinX, i
Slide 64: Successfully executing our strategy, opportunities ahead
Successfully executing our strategy, opportunities ahead ü Expanded the DIY tax category share >2 pts ü +2 pts share of IRS returns Extend our Lead in DIY Tax Prep ü Increased customer retention +2 pts ü Drove higher levels of free filing by >20% ü Scaled our virtual workforce ü Delighted consumers
Slide 65: Focused on what matters most to our customers
Focused on what matters most to our customers OUR CONSUMER PROBLEMS OUR SMALL BUSINESS & SELF-EMPLOYED PROBLEMS NEED RANKING PROBLEM NEED RANKING PROBLEM Have enough money to cover my bills and Attracting customers can take time, money and MAKE ENDS 1 GET CUSTOMERS 1 other obligations marketing expe
Slide 66: Intuit Mission
INTUIT MISSION Powering Prosperity Around the World
Slide 67: One Ecosystem
ONE ECOSYSTEM More Money No Work Complete Confidence AI-DRIVEN EXPERT PLATFORM 67
Slide 68: Financial freedom for all consumers
VISION FINANCIAL FREEDOM FOR ALL CONSUMERS TAX AND BEYOND 68
Slide 69: Deliver significant improvement in customer benefit
Deliver significant improvement in customer benefit >55M UNIQUE TAX FILERS 15M PAID WORKERS 46M TurboTax units1 1 in 5 SMB use QB Payroll $88B in refunds1 $208B Payroll volume 55M W2s and over 28M 1099s More Money No Work Complete Confidence + + >600K TAX PROS & PRO ADVISORS 47M REGISTERED USERS 6M
Slide 70: Consumer Group strategic roadmap
Consumer Group strategic roadmap Extend Transform Disrupt Expand Lead in DIY Assisted Category Consumer Finance Reach Globally 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 aut
Slide 71: U.S. tax industry landscape
U.S. tax industry landscape Shifting our focus to growing total share of IRS returns HOW WE WILL CHAMPION 10-year U.S. tax industry trends (in M) 10-YR CAGR CATEGORY GROWTH 160 +1.3% • Continue to innovate and lead-free filing 151 153 155 148 149 150 for simple filers TOTAL IRS 143 146 145 140 • Inc
Slide 72: Opportunity: TurboTax online U.S. acquisition funnel
Opportunity: TurboTax online U.S. acquisition funnel FY’19 FY’20 YoY IMPLICATIONS Growing our share of TOTAL IRS RETURNS 155M 160M +4% total IRS returns Increased interest in online tax TRAFFIC 99M 112M +12% offerings; extended tax season TOTAL DIY RETURNS 65M 73M +11% DIY category growth TTO Convin
Slide 73: Gaining share of total returns with higher-end products
Gaining share of total returns with higher-end products TOTAL ADDRESSABLE MARKET (TAX) TURBOTAX U.S. AVERAGE REVENUE PER RETURN $97 $89 $80 ASSISTED CONSUMER SMB $20B $8.3B $62 $63 $58 $52 $46 $47 $47 $49 $49 $42 $43 DIY $3.9B Average revenue per return Return Revenue 2010 2011 2012 2013 2014 2015 2
Slide 74: Our consumer finance platform solves problems beyond tax
Our consumer finance platform solve problems beyond tax Re-engineering financial lives by attacking debt, savings and behaviors LARGE POOL OF CUSTOMERS ON UNLOCKING POTENTIAL NEW CUSTOMER NEEDS MULTIPLE CATEGORIES BUSINESS MODELS AND TAM $22B FINANCIAL ADVICE • Day-to-day splurging Financial Advice
Slide 75: Extend our lead in DIY tax prep
Extend our lead in DIY tax prep Revolutionize speed to benefit OPPORTUNITY SELF-EMPLOYED 112M consumers open to file their taxes with DIY 73M actually filed with DIY software INVESTMENTS 2.0 51M logged into TTO ENHANCEMENTS 35.8M filed with TTO 15.1M filers logged into TurboTax, but did not complete
Slide 76: Transform the assisted category
Transform the assisted category Connect people to experts OPPORTUNITY $20B assisted tax preparation TAM 86M customers seek out filing assistance every year AUGMENTED INTELLIGENCE 10M estimated churn within the assisted category 3M filers defect annually to assisted solution due to complexity PROOF P
Slide 77: Disrupt consumer finance
Disrupt consumer finance Unlock smart money decisions OPPORTUNITY $86B in refunds $208B in Payroll volume 47M registered Turbo + Mint users 6M monthly active Turbo + Mint users $10B in U.S. digital lead gen spend by FinTech and FIs $12B in consumer financial advice to U.S. consumers PROOF POINTS 6x
Slide 78: 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 FREELANCE RECENT RETAIL WEDDING COLLEGE GRAD EMPLOYEE PHOTOGRAPHER Emma started in TTO Deluxe as she filed her As a single filer, Tracy easily filed her 1040, Jeff decided t
Slide 79: 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 1 PT OF GROWTH GROWTH MULTI-YEAR DRIVERS YIELDS RANGE REVENUE OF IRS returns ~1% 0 - 2% LONG-TERM DIY Category share ~3% 3 - 5% EXPECTATION CONSUMER GROUP 8–12% ANNUAL REVENUE GROWTH Total TurboTax ~1.5% 1 - 2
Slide 80: Lara Balazs
Lara Balazs 80
Slide 81: Intuit Mission
INTUIT MISSION Powering Prosperity Around the World
Slide 82: Powering prosperity around the world
MISSION POWERING PROSPERITY AROUND THE WORLD Integrity Without Compromise Courage Customer Obsession Stronger Together We Care and Give Back VALUES Prosperity Reputation Growth Double household savings rate and improve Best-in-class of Most >200M customers, accelerating 2025 SMB success rate >10 pts
Slide 83: Powering prosperity around the world
MISSION POWERING PROSPERITY AROUND THE WORLD Integrity Without Compromise Courage Customer Obsession Stronger Together We Care and Give Back VALUES Prosperity Reputation Growth Double household savings rate and improve Best-in-class of Most >200M customers, accelerating 2025 SMB success rate >10 pts
Slide 84: Guiding principles
Guiding principles ALIGNED TO DELIVER AT SCALE Intuit’s efforts reflect our mission to Power Prosperity around the World and deliver on our belief that everyone deserves the opportunity to prosper. We are aligned to key principles to deliver Intuit’s unique and ownable impact at scale: • Supports ou
Slide 85: Social and environmental strategy summary
Social and environmental strategy summary AREAS OF FOCUS KPIs Jobs created FY’20: 2,200 JOB CREATION & READINESS FY’23: 7,000 Through our Prosperity Hub program spark economic prosperity for people and communities in need People better FY’20: 150,000 prepared for jobs FY’23: 1,100,000 POSITIVE IMPAC
Slide 86: Job creation and readiness
Job creation and readiness THE PROBLEM Rapid technological, environmental, and societal shifts are driving rising inequality in communities. THE SOLUTION – PROSPERITY HUB Designed to spark economic prosperity for people and communities in need by: • Creating new jobs • Preparing people for jobs of t
Slide 87: Positive impact on climate
Positive impact on climate THE PROBLEM Climate change is one of the most significant issues of our time. THE SOLUTION – 50X BY 30 GOAL Committed to surpassing carbon neutrality to make a positive impact on the planet equal to 50x greater than our carbon footprint by 2030. Employees: Carbon neutral s
Slide 88: Workforce diversity and inclusion
Workforce diversity and inclusion THE PROBLEM Opportunity to accelerate our hiring and retention of women technologists and Black and LatinX employees. THE SOLUTION – WORKFORCE DIVERSITY Building a diverse, engaged workforce that fuels innovation and builds customer empathy. Set ”tone at the top”: S
Slide 89: A diversity dashboard and where we stand
A diversity dashboard and where we stand OVERALL EMPLOYEE MOST RECENT PAY EQUITY* = DISTRIBUTION Average earnings of women compared to every $1 men earn 99.4¢ 98.3¢ $1.02 61% UNITED STATES INDIA OTHER COUNTRIES 39% RECENT PULSE RESULTS All regions Female Male FY’20 JULY FY’20 JUNE FY’19 FISCAL YE %
Slide 90: Social and environmental strategy benefits
Social and environmental strategy benefits AREAS OF FOCUS BUSINESS BENEFITS Introducing the next generation JOB CREATION of customers to Intuit brand MISSION AND READINESS and products Powering Prosperity Supporting small businesses Around the World POSITIVE IMPACT to reduce their carbon footprint w
Slide 91: Michelle Clatterbuck
Michelle Clatterbuck 91
Slide 92: A resilient business focused on helping customers
A resilient business focused on helping customers SMALL BUSINESS REVENUE CONSUMER GROUP REVENUE GREW 15% IN FY’20 GREW 13% IN FY’20 Strong 1H revenue growth of 16% Unprecedented delay in IRS filing July 15 Shelter-in-place impacted small Terrific TurboTax Live season with business during 2H Q3 nearl
Slide 93: Playbook for leading through the downturn
Playbook for leading through the downturn ENSURING HEALTH DOING THE RIGHT MANAGING FOR FOCUS ON AND SAFETY OF THING FOR THE SHORT AND FUTURE EMPLOYEES CUSTOMERS LONG TERM INNOVATION 10,000 employees transitioned Take care of current Control discretionary Play offense by investing in to a work-from-h
Slide 94: Strong performance vs. FY'20 objectives
Strong performance vs. FY’20 objectives LAST YEAR’S SUMMARY FY’20 OUTCOMES • Double-digit revenue growth 13% Intuit revenue growth • Fast-growing SaaS business 22% QBO and TTO platform revenue growth • Disciplined investments yield 31% Small business online ecosystem revenue growth operating income
Slide 95: Financial principles remain enduring
Financial principles remain enduring GROW ORGANIC REVENUE DOUBLE DIGITS • Customer growth fueled by delivery of the customer benefit • Small business online ecosystem growth >30%; win every tax season OPERATING INCOME DOLLARS GROW FASTER THAN REVENUE • Revenue grows faster than expense • Acceptable
Slide 96: QBO and TTO platform revenue driving revenue growth
QBO and TTO platform revenue driving revenue growth QuickBooks Online TurboTax Online Desktop/Other • QBO and TTO platform revenue grew over 22% to $4.8B in FY’20 • Small business online ecosystem ~72% revenue grew 31% in FY‘20 ~58% • >80% of Intuit’s FY’21 revenue is expected to come from existing
Slide 97: Good progress with large opportunity ahead
Good progress with large opportunity ahead TOTAL QUICKBOOKS PAYING CUSTOMERS SUBSCRIBER BASE YOY 5.1M QBO, DESKTOP SUBS, DESKTOP UNITS BY FY 4.5M >$1,000 ARPC +56% >$1,000 ARPC 6.1M 5.7M 4.5M $200 - $1,000 ARPC $200 - $1,000 ARPC +22% 3.6M 2.3M 2.8M <$200 ARPC <$200 ARPC 0% FY'15 FY'16 FY'17 FY'18 F
Slide 98: Very pleased with ARPC performance
Very pleased with ARPC performance SHIFTING OUR FOCUS TO TURBOTAX U.S. GROWING TOTAL SHARE OF IRS RETURNS AVERAGE REVENUE PER RETURN 10-YR CAGR 10-year U.S. tax industry trends (in M) $97 160 +1.3% $89 151 153 155 148 149 150 TOTAL IRS 143 146 145 $80 140 71 +0.7% $62 $63 69 69 70 71 $58 68 67 68 68
Slide 99: ARPC: Improved monetization over time
ARPC: Improved monetization over time FY’19 FY’20 FY’21– FY’23 Customer ARPC ARPC EXPECTED TRAJECTORY INCREASE QuickBooks Online US $553 $651 Maturing base, online services and new product innovation (e.g. QB Live & QBO Advanced) QuickBooks International INCREASE $116 $144 Maturing base, lower disco
Slide 100: 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’20 % OF REVENUE LONG-TERM EXPECTATION Revenue 100 Double-digit growth driven by customers Gross margin 82 ~ % flat ove
Slide 101: Platform evolution drives faster margin expansion over time
Platform evolution drives faster margin expansion over time Leveraging key services and capabilities across our businesses Increasing developer velocity to drive faster delivery of customer benefits TECHNOLOGY across products with data management and AI capabilities, expert services, money movement,
Slide 102: 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 CONNECT PEOPL
Slide 103: Overall capital allocation
Overall capital allocation A HEALTHY MIX OF USES OF CAPITAL (in billions) • Investing in organic growth drivers (R&D, infrastructure, sales & mktg) $1.9 M&A • Use acquisitions to accelerate Repay Debt speed and velocity, growth in $1.3 Dividends $1.2 talent and technology and fill out $1.1 Share Rep
Slide 104: 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 105: Looking ahead to fiscal 2021
Looking ahead to fiscal 2021 CONSUMER GROUP • Current environment accelerated DIY category growth in fiscal 2020 • Long-term expectation of 8-12% revenue growth each year remains unchanged SMALL BUSINESS • Recovering trends across the platform, but Q4 FY’20 was still below pre-pandemic levels • We e
Slide 106: Large market opportunity, consistent operating excellence
Large market opportunity, consistent operating excellence • Double-digit revenue growth • Fast-growing SaaS business • Disciplined investments yield operating income dollars growing faster than revenue • AI-driven expert platform strategy enables new drivers of operating margin expansion • Consisten
Slide 107: Appendix
Appendix 107
Slide 108: About non-GAAP financial measures
About non-GAAP financial measures The accompanying presentation contains non-GAAP financial measures. Table 1 and Table 2 reconcile the non-GAAP financial measures in that press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Princ
Slide 109: 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 110: Table 1: Reconciliations of historical non-GAAP financial measures
Table 1: Reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP financial measures (Dollars in millions, except per share amounts) Fiscal Fiscal 2020 2019 GAAP operating income $ 2,176 $ 1,854 Amortization of acquired technology 22 20 Amortization of other acq
Slide 111: Table 2: Calculation of free cash flow
Table 2: Calculation of free cash flow (Dollars in millions) Fiscal Fiscal Fiscal Fiscal 2020 2019 2018 2017 Net cash provided by operating activities $ 2,414 $ 2,324 $ 2,112 $ 1,599 Less capital expenditures: Purchases of property and equipment (59) (76) (38) (102) Capitalization of internal use so
Slide 112: Cautions about forward-looking statements
Cautions about forward-looking statements This presentation contains forward-looking statements, including the impact of the COVID-19 pandemic on Intuit’s business; the timing of when individuals will file their tax returns; Intuit’s prospects for the business in fiscal 2021 and beyond; expectations
Slide 113: Q&A
Q&A 113