Intuit Inc. · NASDAQ:INTU
Intuit — Investor Day (October 2019)
86 slides from Intuit's investor day presentation, Oct 3, 2019
Slide 1: Investor Day, October 3, 2019
2019 Oc tober 3, 2019
Slide 2: 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 Group Alex Chriss – GM, Small Business & Self-Em
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: Platform Immersion Experience
Platform Immersion Experience MARIANNA TESSEL DIEGO RODRIGUEZ REVOLUTIONIZE SPEED TO BENEFIT Chief Technology Officer Chief Product & Design Officer MARK NOTARAINNI RICH PREECE CONNECT PEOPLE TO EXPERTS Chief Customer Success Officer SVP, Customer Success Small Business & Self-Employed Group VARUN K
Slide 5: Sasan Goodarzi
Sasan Goodarzi 5
Slide 6: 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 QuickBooks INTU SHARE PRICE Online Global QBSE - TTSE Quicken Windows Turbo TurboTax QuickBooks QuickBooks SnapTax Windows Online Mobile QuickBooks TurboTax Comp. A Comp. A Comp.
Slide 7: 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 2015 – 2019 2002 2019 CUSTOMER GROWTH STOCK PERFORMANCE INTUIT ~52M 800% NASDAQ 250% S&P 500 ~29M 150% July 2010 July 2019 Jan 2010 July 2019 7
Slide 8: Experienced leadership team
Experienced leadership team SASAN GOODARZI MICHELLE CLATTERBUCK ALEX CHRISS GREG JOHNSON Chief Executive Officer Chief Financial Officer GM, Small Business & Self-Employed Group GM, Consumer Group 15 years at Intuit 17 years at Intuit 15 years at Intuit 7 years at Intuit CECE MORKEN DIEGO RODRIGUEZ
Slide 9: 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 & other Attracting customers can take time, money and MAKE ENDS GET CUSTOMERS 1 1 marketing expertise that I d
Slide 10: Key trends that can be a catalyst for growth
Key trends that can be a catalyst for growth AI REINVENTING FREE CONSUMER MID-MARKET USER EXPERIENCES FINANCE PLATFORMS MOVING TO CLOUD ADOPTION OF RISE OF OMNICHANNEL DIGITAL EXPERTISE COMMERCE 10
Slide 11: 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 11
Slide 12: Powering Prosperity Around the World
MISSION Powering Prosperity Around the World 12
Slide 13: Our values
Our values Integrity Without Compromise We Care and Give Back We speak the truth and assume best intent. We are stewards of the future and will We value trust above all else. We hold do our part to make the world a ourselves and others accountable to the better place. It is our privilege to help hig
Slide 14: 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 on Forbes’ Most Reputable Companies list GROWTH >200M customers, accelerating revenue growth Prosperity based on customers on I
Slide 15: 2025 goals inform our FY'20-22 True North objectives
2025 goals inform our FY’20-22 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 PARTNERS SHAREHOLDERS Where the world’s top talent does Delight customers more than rivals
Slide 16: Unlocking the power of many for the prosperity of one
ONE ECOSYSTEM Unlocking the power of many for the prosperity of one More Money No Work Complete Confidence AI-DRIVEN EXPERT PLATFORM 16
Slide 17: 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 17
Slide 18: Powering prosperity around the world
MISSION POWERING PROSPERITY AROUND THE WORLD Integrity Without Compromise We Care & Give Back Be Bold Be Passionate Be Decisive Learn Fast Win Together Deliver Awesome VALUES Prosperity Reputation Growth Double household savings rate and improve Best-in-class on Forbes’ Most >200M customers, 2025 SM
Slide 19: 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 20: Intuit's Operating System: Execution excellence secret sauce #2
Intuit’s Operating System: Execution excellence secret sauce #2 FOCUSED ON FOUR BEHAVIOR CHANGES Focus on the largest growth bets to win Intuit Be far more Operating customer-obsessed System Become a data-driven culture Raise the bar on accountability 20
Slide 21: Intuit's Operating System: Execution excellence secret sauce #2
Intuit’s Operating System: Execution excellence secret sauce #2 6 year plan (December) One Intuit 3 year Forum plan (8x Year) (May) Intuit Leadership Org & Conference Talent (Yearly) Review Intuit (Quarterly) Operating State of the Company System CEO Staff (Monthly) (Quarterly) Business Big Bet Revi
Slide 22: Input goals
Input goals REVOLUTIONIZE 20 input goals SPEED TO BENEFIT CONNECT PEOPLE 30 input goals TO EXPERTS +180 core UNLOCK SMART MONEY DECISIONS 20 input goals innovation input goals BE THE CENTER OF SMALL 12 input goals BUSINESS GROWTH DISRUPT THE SMALL BUSINESS MID-MARKET 21 input goals = 103 INPUT GOALS
Slide 23: 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 Intuit Founded Employees: 150 Employees: 4,500 Employees: 9,400 Customers: 1.3M Customers: 5.6M Customers: ~52M Revenue: $33M Revenue: $1B Revenue: $6.8
Slide 24: 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 ERA OF ARTIFICIAL INTELLIGENCE 1980s 1990s 2000s 2010s 2020s FUTURE Employees: 150 Employees: 4,500 Employees: 9,400 Intuit Founded Customers: 1.3M Customers: 5.6M Customers: ~
Slide 25: 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 26: 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 27: Powering Prosperity Around the World
MISSION Powering Prosperity Around the World 27
Slide 28: Kim Watkins
Kim Watkins 28
Slide 29: Platform Immersion Experience
Platform Immersion Experience MARIANNA TESSEL DIEGO RODRIGUEZ REVOLUTIONIZE SPEED TO BENEFIT Chief Technology Officer Chief Product & Design Officer MARK NOTARAINNI RICH PREECE CONNECT PEOPLE TO EXPERTS Chief Customer Success Officer SVP, Customer Success Small Business & Self-Employed Group VARUN K
Slide 30: October 3, 2019
2019 Oc tober 3, 2019
Slide 31: Alex Chriss
Alex Chriss 31
Slide 32: Strong customer growth
Strong customer growth QBO 4.5M Customers 33% QBO CUSTOMER GROWTH IN FY’19 Ended FY’19 with 4.5M customers GLOBAL QBO CUSTOMER BASE 3M MARCH ‘18 • First million took 15 years QBO Self-Employed • 1.1 million net adds in FY’19 QBO International excl. Self-Employed QBO U.S. excl. Self-Employed Driving
Slide 33: Online ecosystem revenue acceleration
Online ecosystem revenue acceleration 38% ONLINE ECOSYSTEM Online REVENUE GROWTH IN FY’19 Ecosystem $1.7B Revenue Grow the core and expand the market • 41% growth in online accounting • QBO Advanced seeking to disrupt a $40B mid-market opportunity $500M FY’15 • QB Live addressing a $10B opportunity
Slide 34: Large market and opportunity to increase penetration
Large market and opportunity to increase penetration FY’18 FY’19 YoY IMPLICATIONS GLOBAL TOTAL ADDRESSABLE MARKET 800M+ 800M+ − Large global opportunity (“TAM”) SERVICEABLE ADDRESSABLE Deploying the ecosystem and getting MARKET (“SAM”) 85M 85M − to product market fit in BR, FR, IN U.S. U.K. CA AU BR
Slide 35: We continue to be obsessed with our customers' needs
We continue to be obsessed with our customers’ needs OUR CONSUMER PROBLEMS OUR SMALL BUSINESS & SELF-EMPLOYED PROBLEMS NEED RANKING PROBLEM NEED RANKING PROBLEM Have enough money to cover my bills & other Attracting customers can take time, money and MAKE ENDS GET CUSTOMERS 1 1 marketing expertise t
Slide 36: Small Business and Self-Employed strategy: Grow, Connect, Expand
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 37: Grow the core
Grow the core Illustrative innovations driving customer impact QBO ADVANCED QBO ADVANCED DISRUPT THE SMALL BUSINESS MID-MARKET Expanding target segment from 0-10 employees to 0-100 employees $40B mid-market opportunity across our ecosystem OPPORTUNITY 1.5M mid-market businesses with 10-100 employees
Slide 38: Connect the ecosystem
Connect the ecosystem Illustrative innovations driving customer impact NEXT DAY PAYMENTS & CAPITAL NEXT DAY PAYMENTS & CAPITAL BE THE CENTER OF SMALL BUSINESS GROWTH $39B U.S. SMB Payments and Capital category 60% of SMBs struggle with cash flow; 82% of time this results in failure of the business O
Slide 39: Expand globally
Expand globally Strong growth in established markets U.S. U.K. CANADA AUSTRALIA DRIVERS OF GROWTH Category expansion Rising compliance Market shifting to High category Increased penetration of total (e.g., mid-market); needs (e.g., Making cloud, embracing adoption; desire for OPPORTUNITY connecting
Slide 40: Expand globally
Expand globally Focused on nailing product market fit in emerging markets BRAZIL FRANCE INDIA MAKING RAPID PROGRESS Compliant, delightful product Rapid cloud adoption, high Heavy compliance country Growing compliance • Focus on ‘Unit of One’ with narrow OPPORTUNITY compliance needs and with substant
Slide 41: Small Business and Self-Employed strategy: Grow, Connect, Expand
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 42: Evolution of the QuickBooks platform
Evolution of the QuickBooks platform Becoming the “source of truth for your business” CHAPTER 1 CHAPTER 2 CHAPTER 3 Launch QBO as the source of truth for your books Expand footprint Transform QBO into the source of truth for your business Grow the Core QuickBooks Connect the Ecosystem Live Expand Gl
Slide 43: The earlier stage of our platform
The earlier stage of our platform “The source of truth for your books” ARPC grows with the addition of connected services YEAR 3 Business is healthy and Nick hires an employee and YEAR 2 runs payroll Nick starts using YEAR 1 payments to Nick opens his business and make it easy to get paid $1,300 sig
Slide 44: Single platform that flexes to each customer's journey
Single platform that flexes to each customer’s journey Now becoming “the source of truth for your business” $6,700 POTTERY STUDIO DOG CAFÉ OWNER GROOMER OWNER Capital Ana starts with QBO and payments for her Marissa opens her shop and uses QuickBooks John starts with pottery studio. Her marketing ca
Slide 45: Execution of our strategy creates a path to robust long-term growth
Execution of our strategy creates a path to robust long-term growth THREE BIG OPPORTUNITIES GROW THE CORE Our opportunity to transform the category through innovation and by meeting customers where they are, spanning Self-Employed to Mid-Market and DIY to Assisted. • Core markets: U.S. • Products: Q
Slide 46: Greg Johnson
Greg Johnson 46
Slide 47: Successfully executing our strategy, opportunities ahead
Successfully executing our strategy, opportunities ahead ü Expanded the DIY tax category ü Gained share within the DIY category Extend our Lead in DIY Tax Prep ü Increased customer retention ü Drove higher levels of free filing ü Scaled our virtual workforce platform ü Delighted consumers and pros T
Slide 48: What matters most to customers and drives our strategy
What matters most to customers and drives our strategy OUR CONSUMER PROBLEMS OUR SMALL BUSINESS & SELF-EMPLOYED PROBLEMS NEED RANKING PROBLEM NEED RANKING PROBLEM Have enough money to cover my bills & other Attracting customers can take time, money and MAKE ENDS GET CUSTOMERS 1 1 marketing expertise
Slide 49: Financial freedom for all consumers
VISION FINANCIAL FREEDOM FOR ALL CONSUMERS TAX AND BEYOND 49
Slide 50: Unlocking the power of many for the prosperity of one
ONE ECOSYSTEM Unlocking the power of many for the prosperity of one More Money No Work Complete Confidence AI-DRIVEN EXPERT PLATFORM 50
Slide 51: Deliver significant improvement in customer benefit
Deliver significant improvement in customer benefit >50M UNIQUE TAX FILERS 14M PAID WORKERS 41.4M TurboTax units1 $180B payroll $82B in refunds1 More Money No Work Complete Confidence + >600K TAX PROS & EXPERTS 37M REGISTERED USERS >30M consumer returns $50B1 in refunds >20K FINANCIAL INSTITUTIONS 9
Slide 52: Consumer Group strategy to win
Consumer Group strategy to win 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 Artificial Intelligence Virtual expert platform that Marketplace platform that m
Slide 53: U.S. tax industry landscape
U.S. tax industry landscape Shifting our focus to growing total share of IRS returns 10-year U.S. tax industry trends (in M) 10-YR CAGR HOW WE WILL CHAMPION CATEGORY GROWTH 151 150 153 155 +0.8% 145 145 147 149 TOTAL 142 IRS 140 143 • Tax Reform impacts continue: desire for trusted brands, and need
Slide 54: Opportunity: TurboTax Online U.S. acquisition funnel
Opportunity: TurboTax Online U.S. acquisition funnel FY’18 FY’19 YoY IMPLICATIONS Growing our share of TOTAL IRS RETURNS 153M 155M +1% total IRS returns Tax reform simplification TRAFFIC 95M 99M +4% expected to grow interest in DIY TOTAL DIY RETURNS 63M 65M +4% DIY category growth TTO Convince prosp
Slide 55: 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 Focus on Self- TT Live TTO Free Fed Employed with Launched Edition rolled TTO QBSE bundle $70 out broadly Absolute Zero Promo $62 $58 ASSISTED CONSUMER SMB $60 $52 $20B $8.
Slide 56: Extend our lead in DIY tax prep
Extend our lead in DIY tax prep Revolutionize speed to benefit INVESTMENTS 2.0 ENHANCEMENTS OPPORTUNITY 99M consumers open to file their taxes with DIY 65M actually filed with DIY software 45M logged into TTO 32.3M filed with TTO SELF- 12.8M filers logged into TurboTax, but did not complete EMPLOYED
Slide 57: Transform the assisted category
Transform the assisted category Connect people to experts OPPORTUNITY FULL $20B assisted tax preparation TAM SERVICE 86M customers seek out filing assistance every year 10M estimated churn within the assisted category 3M filers defect annually from TurboTax for an assisted solution due to increased
Slide 58: Disrupt consumer finance
Disrupt consumer finance Unlock smart money decisions OPPORTUNITY MARKETPLACE $82B in refunds $180B in paychecks delivered 37M registered Turbo + Mint users 4M monthly active Turbo + Mint users GAMIFICATION $10B in U.S. digital lead gen spend by FinTech and FIs $12B in consumer financial advice to U
Slide 59: Single platform that flexes to each customer's journey
Single platform that flexes to each customer’s journey Now 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 decid
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 1PT OF GROWTH GROWTH MULTI-YEAR DRIVERS YIELDS RANGE REVENUE OF IRS ~1% 0 - 2% returns LONG-TERM 8-12% DIY Category ~3% 3 - 5% share EXPECTATION Total CONSUMER GROUP ANNUAL REVENUE GROWTH TurboTax ~1.5% 1 - 2%
Slide 61: Michelle Clatterbuck
Michelle Clatterbuck 61
Slide 62: Great execution on FY'19 objectives
Great execution on FY’19 objectives LAST YEAR’S SUMMARY FY’19 OUTCOMES • Double-digit revenue growth 13% Intuit revenue growth • Fast-growing SaaS business with 23% QBO and TTO platform revenue growth highly profitable desktop portfolio 38% Small business online ecosystem revenue growth • Discipline
Slide 63: 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 64: 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 65: 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 66: 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 67: QBO and TTO platform revenue driving revenue growth
QBO and TTO platform revenue driving revenue growth QuickBooks Online TurboTax Online Desktop • QBO and TTO platform revenue grew over 23% to $3.9B in FY’19 • Small business online ecosystem ~70% revenue grew 38% in FY‘19 ~53% • ~80% of Intuit’s FY’20 revenue is expected to come from existing custom
Slide 68: Good progress with large opportunity ahead
Good progress with large opportunity ahead SMALL BUSINESS & SELF-EMPLOYED TOTAL QUICKBOOKS PAYING CUSTOMERS FY’19 QBO SUBS QBO, DESKTOP SUBS, DESKTOP UNITS BY FY COUNTRY SAM QBO SUBS GROWTH U.S. 48M 3.3M 25% 5.7M U.K. 5M 545k 78% 4.5M Canada 3M 315k 48% 3M 224k 39% 3.6M Australia 2.8M Brazil 17M 59k
Slide 69: Good progress with large opportunity ahead
Good progress with large opportunity ahead SHIFTING OUR FOCUS TO GROWING TURBOTAX U.S. AVERAGE REVENUE PER RETURN TOTAL SHARE OF IRS RETURNS Focus on Self- TT Live 10-YR Employed with Launched 10-year U.S. tax industry trends (in M) CAGR TTO Free Fed Edition rolled TTO QBSE bundle $70 out broadly Ab
Slide 70: Strong monetization models across businesses
Strong monetization models across businesses 70
Slide 71: ARPC: Improved monetization over time
ARPC: Improved monetization over time FY’18 FY’19 FY’20– FY’22 Customer ARPC ARPC EXPECTED TRAJECTORY INCREASE QuickBooks Online US $490 $553 Maturing base, online services and new product innovation (e.g. QB Live and QBO Advanced) QuickBooks Non – US INCREASE $123 $116 Maturing base, lower discount
Slide 72: 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’19 % OF REVENUE LONG-TERM EXPECTATION Revenue 100 Double-digit growth driven by customers Gross margin 83 ~ % flat ove
Slide 73: 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 opportunities that CONNECT P
Slide 74: Overall capital allocation
Overall capital allocation A HEALTHY MIX OF USES OF CAPITAL • Investing in organic growth drivers (in billions) $3.1 (R&D, infrastructure, sales & marketing) • Use acquisitions to accelerate growth in M&A $1.9 talent and technology and fill out our Repay Debt product roadmap Dividends $1.3 Share Rep
Slide 75: 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 76: FY'20 guidance: Double-digit revenue growth
FY’20 guidance: Double-digit revenue growth GUIDANCE GROWTH TOTAL REVENUE $7,440 – $7,540 10% – 11% Small Business & Self-Employed $3,945 – $4,015 12% – 14% Consumer $3,015 – $3,040 9% – 10% Strategic Partner $480 – $485 1% – 2% (in millions) 76
Slide 77: FY'20 guidance: Double-digit operating income growth
FY’20 guidance: Double-digit operating income growth Operating income growing faster than revenue GUIDANCE GROWTH GAAP op income $2,065 – $2,115 11% – 14% Non-GAAP op income $2,515 – $2,565 10% – 12% GAAP diluted EPS $6.35 – $6.45 8% – 10% Non-GAAP diluted EPS $7.50 – $7.60 11% – 13% Dividend per sh
Slide 78: Large market opportunity, focused on execution excellence
Large market opportunity, focused on execution excellence • Double-digit revenue growth • Fast-growing SaaS business • Disciplined investments yield operating income dollars growing faster than revenue • Stable share count and consistent dividend increases • ROIC >30% in FY’20 78
Slide 79: Q&A
Q&A 79
Slide 80: Appendix
Appendix 80
Slide 81: 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 that presentation to the most directly comparable financial measures prepared in accordance with Generally Accepted Account
Slide 82: 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 83: 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 2019 2018* GAAP operating income $ 1,854 $ 1,560 Amortization of acquired technology 20 15 Amortization of other ac
Slide 84: 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 (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 Ending
Slide 85: Table 3: Calculation of free cash flow
Table 3: Calculation of free cash flow (Dollars in millions) Fiscal Fiscal Fiscal Fiscal 2016 2017 2018 2019 Net cash provided by operating activities $ 1,460 $ 1,599 $ 2,112 $ 2,324 Less capital expenditures: Purchases of property and equipment (416) (102) (38) (76) Capitalization of internal use s
Slide 86: 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, belie