Intuit Inc. · NASDAQ:INTU
Intuit — Shareholder Meeting (January 2018)
37 slides from Intuit's shareholder meeting presentation, January 2018
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting January 2018 Brad Smith, Chairman and CEO
Slide 2: A highly qualified and diverse set of Board nominees
A highly qualified and diverse set of Board nominees Eve Burton Scott Cook Richard L. Dalzell Deborah Liu Suzanne Nora Johnson Senior Vice President and Founder and Chairman of Former Senior Vice President Vice President, Marketplace, Former Vice-Chairman, The General Counsel, The Hearst the Executi
Slide 3: 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 4: Why isn't Intuit dead?
Geoff Colvin JULY 19, 2016 Why isn’t Intuit dead? “… the reason is easy to state, hard to emulate …” “…the company has continually disrupted itself …”
Slide 5: History of self-disruption & re-imagination
History of self-disruption & re-imagination ERA OF DOS ERA OF WINDOWS ERA OF WEB ERA OF MOBILE AND CLOUD QuickBooks IPO Online Global Intuit Founded INTU SHARE PRICE QuickBooks SnapTax Quicken TurboTax Windows Windows QuickBooks Online Mobile QBSE - TTSE QuickBooks Comp. A Windows Comp. G Quicken Tu
Slide 6: Our most recent reinvention to a cloud platform
Our most recent reinvention to a cloud platform • Cloud, mobile • Ecosystem connections • Global expansion FY’17 FY’12 • Restructure • Divestitures • Ratable revenue
Slide 7: Accelerating to the cloud
Accelerating to the cloud Online customers Desktop customers 37M 12% 23M 11M 9M (4%) FY’13 FY’14 FY’15 FY’16 FY’17
Slide 8: Connected services revenue
Connected services revenue Connected services Product FY’13-’17 $B CAGR $5.2 $3.9 73% 11% 63% 37% 27% (1%) FY’13 FY’14 FY’15 FY’16 FY’17
Slide 9: Growing global customers
Growing global customers QBO non-US QBO US FY’13-’17 CAGR In thousands 503 100% 43% 287 198 84 32 1,880 600 877 1,226 455 FY’13 FY’14 FY’15 FY’16 FY'17
Slide 10: FY'17 strong momentum
FY’17 strong momentum ACTUAL PRIOR YEAR +/- Revenue $5,177 $4,694 10% GAAP Operating Income $1,395 $1,242 12% Non-GAAP Operating Income $1,735 $1,555 12% GAAP Diluted EPS $3.72 $3.69 1% Non-GAAP Diluted EPS $4.41 $3.78 17% QBO Subscribers 2,383,000 1,513,000 58% $ in millions except EPS
Slide 11: Strong performance continued in FQ1'18
Strong performance continued in FQ1’18 +/- VS. ACTUAL GUIDANCE FQ1’17 Revenue $886 14% $840-$860 GAAP Operating Income ($57) NM ($75-$85) Non-GAAP Operating Income $43 34% $15-$25 GAAP Diluted EPS ($0.07) NM ($0.17-$0.19) Non-GAAP Diluted EPS $0.11 83% $0.03-$0.05 QBO Subscribers 2,552,000 56% n/a $
Slide 12: Assessment: our foundation is solid with more work needed
Assessment: our foundation is solid with more work needed Progress made ... PERFORMANCE DRIVERS Progress needed ... Strong culture, high engagement Employee Engagement Velocity: scrum team NPS, decisions & tools Customer passion, focus on benefit Customer Delight Awesome E2E experiences, NPS advanta
Slide 13: Looking ahead: the next chapter of reinvention
Looking ahead: the next chapter of reinvention Digital Natives AI/Machine Learning Voice/Chatbots Disruptive Digitization Blockchain Mega-platforms Business Models of Government CATALYSTS FOR GROWTH
Slide 14: Translating insights into action
Translating insights into action INSIGHTS IMPLICATIONS CUSTOMER OBSESSION & EMPATHY CUSTOMER • Laser focus on delivering benefit • Increasing expectations • Personalized experiences • Self-employed accelerating • Connect people & products • Living life online CRITICAL PLAYERS & ROLES EMERGING TALENT
Slide 15: Intuit's Game Plan To Win
Intuit’s Game Plan To Win MISSION VALUES TRUE NORTH GOALS STRATEGY PRIORITIES METRICS
Slide 16: Mission: Powering Prosperity Around the World
Mission MISSION VALUES TRUE NORTH GOALS Powering Prosperity STRATEGY Around the World PRIORITIES METRICS
Slide 17: Values
Values MISSION VALUES TRUE NORTH GOALS STRATEGY PRIORITIES METRICS
Slide 18: Values
Values MISSION VALUES TRUE NORTH GOALS STRATEGY PRIORITIES METRICS
Slide 19: True North Goals
True North Goals MISSION 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 PARTNERS SHAREHOLDERS VALUES The place where the world’s Delight customers more than Delight partners who add Drive lo
Slide 20: Strategy
Strategy MISSION VALUES TRUE NORTH More Money GOALS POWERING PROSPERITY No Work AROUND THE WORLD Complete Confidence STRATEGY PRIORITIES METRICS
Slide 21: Priorities
Priorities MISSION ACCELERATE VELOCITY IN DOING DELIVER SIGNIFICANT IMPROVEMENT WHAT’S RIGHT FOR CUSTOMERS … IN CUSTOMER BENEFITS … More Money, No Work, Complete Confidence VALUES Awesome E2E customer experiences: Fuel small business success globally: TRUE between customers, partners & products … bu
Slide 22: Metrics
Metrics ACCELERATE VELOCITY IN DOING DELIVER SIGNIFICANT IMPROVEMENT MISSION WHAT’S RIGHT FOR CUSTOMERS, VIA… IN CUSTOMER BENEFITS, VIA… PROVIDE AWESOME TECHNOLOGY FUEL PEACE-OF-MIND DELIVER SPEED E2E CUSTOMER TO ACCELERATE SMALL BUSINESS AND PROSPERITY FOR FINANCIAL FREEDOM AS A HABIT EXPERIENCES G
Slide 23: Powering Prosperity Around the World: One Intuit Ecosystem
MISSION POWERING PROSPERITY AROUND THE WORLD Integrity Without Compromise We Care & Give Back VALUES Be Bold Be Passionate Be Decisive Learn Fast Win Together Deliver Awesome Employees Customers Partners Shareholders TRUE The place where the world’s Delight customers more than Delight partners who a
Slide 24: Slide 24
Slide 25: Value-creating connections in our ecosystem
Value-creating connections in our ecosystem SMALL BUSINESSES & ACCOUNTANTS MATCHMAKING PLATFORM Businesses lack confidence • 53% SMB’s have accts … +10 pts to make financial decisions. • 89% feel more successful w/acct Marketing and acquiring clients • 3X # of acct leads YoY are one of accountants’
Slide 26: Historical & new strategic capabilities
Historical & new strategic capabilities TOP STRENGTHS: HOW WE WIN TODAY TRUSTED REPUTATION • Trusted by customers & ecosystem partners (financial inst., accts., govts.) • Trusted product brands (TurboTax, QuickBooks) & company brand (Intuit) • Trusted stewards of sensitive financial data & personal
Slide 27: Building durable competitive advantage
Building durable competitive advantage STRENGTHENING SOURCES OF DURABLE ADVANTAGE Customers become familiar with workflows and place Platform a high bar on relearning tools; the more offerings retention they use on our platform, the stickier they are PATHS TO DURABLE Data & Deliver customer benefit
Slide 28: Our strategy puts us in pursuit of a massive TAM
Our strategy puts us in pursuit of a massive TAM OPPORTUNITIES SEGMENT CUSTOMERS CUST. UNIVERSE $ TAM GROW THE CORE SMALL BUSINESS 5M • Core Products (QBO, QBSE, Tax) 215M • Core Markets (US, UK, CA, AU, BR, FR, IN) SELF-EMPLOYED 0.4M CONSUMER 48M 175M $30B TRAJECTORY CHANGE (I.E. REASONS TO BELIEVE
Slide 29: Our strategy puts us in pursuit of a massive TAM
Our strategy puts us in pursuit of a massive TAM OPPORTUNITIES SEGMENT CUSTOMERS CUST. UNIVERSE $ TAM GROW THE CORE SMALL BUSINESS 5M 215M • Core Products (QBO, QBSE, Tax) 0.4M $80B • Core Markets (US, UK, CA, AU, BR, FR, IN) SELF-EMPLOYED CONSUMER 48M 300M $30B CONNECT THE ECOSYSTEM Our opportunity
Slide 30: Our strategy puts us in pursuit of a massive TAM
Our strategy puts us in pursuit of a massive TAM OPPORTUNITIES SEGMENT CUSTOMERS CUST. UNIVERSE $ TAM GROW THE CORE SMALL BUSINESS 5M $145B 800M • Core Products (QBO, QBSE, Tax) 0.4M $80B • Core Markets (US, UK, CA, AU, BR, FR, IN) SELF-EMPLOYED CONSUMER 48M 300M $30B CONNECT THE ECOSYSTEM Our oppor
Slide 31: Powering Prosperity Around the World
Powering Prosperity Around the World
Slide 32: Appendix
Appendix
Slide 33: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures INTUIT INC. 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 presentation to the most directly comparable financial measures prepared in accord
Slide 34: 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 35: Table 1: Reconciliations of historical Non-GAAP financial measures
Table 1: Reconciliations of historical Non-GAAP financial measures to most directly comparable GAAP financial measures (Dollars in millions, except share amounts) Q1 Q1 Fiscal Fiscal Fiscal 2018 Fiscal 2017 2017 2016 GAAP operating income (loss) from continuing operations $ (57) $ (61) $ 1,395 $ 1,2
Slide 36: Table 2: Reconciliations of forward-looking guidance for Non-GAAP measures
Table 2: Reconciliations of forward-looking guidance for Non-GAAP financial measures to projected GAAP revenue, operating income and EPS Forward-Looking Guidance (In millions, except share amounts) GAAP Non-GAAP Range of Estimate Range of Estimate From To Adjustments From To Three Months Ending Octo
Slide 37: Cautions about Forward-Looking Statements
Cautions about Forward-Looking Statements This presentation includes "forward-looking statements" which are subject to safe harbors created under the U.S. federal securities laws. All statements included in this presentation that address activities, events or developments that Intuit expects, believ