Intuit Inc. · NASDAQ:INTU
Intuit — Shareholder Meeting (January 2019)
40 slides from Intuit's shareholder meeting presentation, Jan 17, 2019
Slide 1: Annual Shareholder Meeting
e e INTUIT. GQiurbotax @quickbooks @proconnect Omint Annual Shareholder Meeting January 17, 2019 Sasan Goodarzi, CEO
Slide 2: A highly qualified and diverse set of Board nominees
A highly qualified and diverse set of Board nominees EVE BURTON ident and Intuit Inc. SUZANNE NORA DENNIS D. POWELL JOHNSON Former Chief Financial Officer, Former The Goldman Sac! BRAD D. SMITH lef Executive Intuit Inc. nan of the SASAN GOODARZI Chief Executive Officer, Intuit Inc. THOMAS SZKUTAK me
Slide 3: Forward-Looking Statements
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: History of self-disruption & reimagination
History of self-disruption & reimagination ERA OF DOS ERA OF WINDOWS ERA OF WEB ERA OF MOBILE AND TurboTax Live QuickBooks TurboTax Windows QuickBooks Online Comp. A TurboTax Online Comp. A SMBAcctg v2 Tax Prep QuickBooks Windows Comp. D Comp. G Payments Payments Quicken Dos INTU SHARE PRICE Comp. A
Slide 5: Consistent top places to work
Consistent top places to work glassdoor 20 BEST PLAGES "WORK sD, Forbes | 2018 EST GMPANY Tae TOP CEOs THE WORLD'S EMPLOYERS MOST INNOVATIVE ee ie scuewortos COMPANIES 2017 FORTUNE ri) = oe e THE 100BEST. COMPANIESTO WORK FOR 2010 FY2010 - FY2018
Slide 6: Solid customer growth
Solid customer growth ~50M CUSTOMER GROWTH FY2010 - FY2018 intuiz. 6
Slide 7: Strong revenue growth
Strong revenue growth REVENUE FY2010 - FY2018 intuiz. 7
Slide 8: Repositioned Intuit on the growth curve
Repositioned Intuit on the growth curve STOCK ™ ~ PERFORMANCE ee, rn ) Ld a 250% 150% Ee ee FY2010s - FY2018
Slide 9: FY'18 financials results ... strongest year in more than a decade
FY'18 financials results ... strongest year in more than a decade GROWTH RATE ORIG ACTUAL PRIOR YEAR ACTUAL GUIDANCE Revenue $5,964 $5,177 15% 9-11% GAAP Operating Income $1,497 $1,395 7% 6-10% Non-GAAP Operating Income $1,981 $1,735 14% 9-12% GAAP Diluted EPS $4.64 $3.72 25% 8-10% Non-GAAP Diluted
Slide 10: Strong performance continued in Q1'19
Strong performance continued in Q1'19 intuiz. ACTUAL +/-VS.Q1'18 GUIDANCE Revenue $1,016 12% $955-$975 GAAP Operating Income ($10) NM ($70-$80) Non-GAAP Operating Income $102 57% $30-$40 GAAP Diluted EPS $0.13 NM ($0.17-$0.19) Non-GAAP Diluted EPS $0.29 71% $0.09-$0.11 QBO Subscribers 3,589 41% NA $
Slide 11: Most recent reinvention - Catalyst for growth
Most recent reinvention - Catalyst for growth le 2 cD Al/Machine Digital Natives Freelance Learni Voice/Chatbots earning oan ¥: + + & f Disruptive Digitization Ever set eres plete Business Models of Government Intult.
Slide 12: Intuit's Game Plan To Win
Intuit Intuit’s Game Plan To Win TRUE NORTH GOALS STRATEGY PRIORITIES METRICS 12
Slide 13: Powering Prosperity Around the World
. Powering Prosperity _ Around the World ma Intult.
Slide 14: Mission and Values
MISSION VALUES TRUE NORTH GOALS STRATEGY PRIORITIES METRICS Intuit Values Integrity Without Compromise __ We speak the truth and assume best intent. We value trust above all else. We hold ourselves and others accountable to the highest standards in all we say and do. Be Bold Solve BIG customer probl
Slide 15: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 16: Strategy
Strategy POWERING PROSPERITY AROUND THE WORLD ONE INTUIT. ECOSYSTEM MISSION cELF-EM PLOYED VALUES TRUE none Mote Money No Work Complete. Confidence STRATEGY PRIORITIES METRICS Personalized Experiences Trusted Open Platform Indispensable Connections Intuit 16
Slide 17: Priorities
MISSION STRATEGY PRIORITIES Intuit Priorities ACCELERATE VELOCITY IN DOING WHAT'S RIGHT FOR CUSTOMERS... Awesome E2E customer experiences: between customers, partners & products... building network effects... unrivaled customer benefit & NPS Speed as a habit: what's best for the customer breaks all
Slide 18: Priorities and metrics
MISSION VALUES STRATEGY PRIORITIES METRICS Intuit ACCELERATE VELOCITY IN DOING WHAT'S RIGHT FOR CUSTOMERS, VIA... AWESOME E2E CUSTOMER EXPERIENCES. SPEED AS AHABIT TECHNOLOGY TO ACCELERATE GROWTH DELIVER SIGNIFICANT IMPROVEMENT IN CUSTOMER BENEFITS, VIA... FUEL SMALL BUSINESS SUCCESS GLOBALLY PROVID
Slide 19: Intuit game plan overview
InTUIT POWERING PROSPERITY AROUND THE WORLD Integrity Without Compromise We Care & Give Back Be Bold Be Passionate Be Decisive Learn Fast Win Together Deliver Awesome Employees Customers Partners Shareholders The place where the world’s Delight customers more than Delight partners who add value Driv
Slide 20: As we look ahead: Building durable competitive advantage
As we look ahead: Building durable competitive advantage STRENGTHENING SOURCES OF DURABLE ADVANTAGE Platform Customers become familiar with workflows and place retention a high bar on relearning tools; the more offerings they use on our platform, the stickier they are. PATHSTO DURABLE » Data & Deliv
Slide 21: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections SMALL BUSINESSES ACCOUNTANTS 50% of small businesses fail in Marketing and acquiring clients are the first 5 years. 89% of small businesses among accountants’ biggest pain points... report they are more successful if they only acquire 4
Slide 22: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections SMALL BUSINESSES 50% of small businesses fail in the first 5 years. 89% of small businesses report they are more successful if they work with an accountant. Intuit MATCHMAKING PLATFORM * 58% of our SMB’s have accts (+5 pts) * 3x #of acct
Slide 23: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections CONSUMERS ACCOUNTANTS 60% of people seek an Seek new ways to grow assisted tax solution their income Intuit
Slide 24: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections TURBOTAX LIVE CONSUMERS 60% of people seek an assisted tax solution Intuit * +19 pt increase in tax filer confidence, PRS of 63 * Generated additional income for ~2,000 Pros * Improved retention, converted assisted, 1° time filer mix TOO
Slide 25: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections SELF-EMPLOYED DAY-TO-DAY SELF-EMPLOYED AT TAX TIME Daily habits co-mingle Struggle to separate personal and business personal from business expenses Intuit
Slide 26: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections © SELF-EMPLOYED DAY-TO-DAY Daily habits co-mingle personal and business Intuit t+—— TURBOTAX SELF-EMPLOYED BUNDLE —— * Saved the average self-employed $4,628 in tax savings (~8% of annual income) + ~50% of OBSE subscribers come from Turb
Slide 27: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections SMALL BUSINESSES LENDERS Young businesses need funding to grow, Lenders don’t have enough data to only one in four get the funding they need. underwrite early stage companies. Intuit
Slide 28: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections QUICKBOOKS CAPITAL SMALL BUSINESSES Young businesses need funding to grow, only one in four get the funding they need. Intuit * 60% of customers approved for loans “un-lendable” by Fls * Loss rates < half industry average * PRS of 83, 39
Slide 29: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections CONSUMERS PARTNERS 62% of Americans can't come Seek qualified customers up with $1,000 in an emergency for their products Intuit
Slide 30: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections WIN WIN co -——}—— TURBO & BEYOND USER PAID ——-+(__) CONSUMERS * 25M registered users consented to use their PARTNERS data for lower rates and better loans 62% of Americans * 9x lift in conversion for partners utilizing Seek qualified can
Slide 31: One year into execution ... creating indispensable connections
One year into execution ... creating indispensable connections SMALL BUSINESSES @ CONSUMERS SELF-EMPLOYED DAY-TO-DAY SMALL BUSINESSES CONSUMERS el _ Fl __ to _. &. MATCHMAKING PLATFORM TURBOTAX LIVE ) <— TURBOTAX SELF-EMPLOYED BUNDLE — C ) C ) *— TURBO & BEYOND USER PAID ——+ C QUICKBOOKS CAPITAL Int
Slide 32: Our strategy puts us in pursuit of a massive TAM
Our strategy puts us in pursuit of a massive TAM THREE BIG OPPORTUNITIES SEGMENT CUSTOMERS CUST. UNIVERSE $ TAM @ GROW THE CORE SMALL BUSINESS 6M Our opportunity with QBO + attach, QBSE, and 215M DIY tax in U.S., Canada, U.K., Australia, France, SELF-EMPLOYED 0.7M Brazil, India (core markets) $33B +
Slide 33: Our strategy puts us in pursuit of a massive TAM
Our strategy puts us in pursuit of a massive TAM THREE BIG OPPORTUNITIES SEGMENT CUSTOMERS CUST. UNIVERSE $ TAM SMALL BUSINESS 6M 215M SELF-EMPLOYED 0.7M $103B CONSUMER 42M 300M $33B © CONNECT THE ECOSYSTEM TRAJECTORY CHANGE (I.E. REASONS TO BELIEVE) Our opportunity to connect customers, partners, a
Slide 34: Our strategy puts us in pursuit of a massive TAM
Our strategy puts us in pursuit of a massive TAM THREE BIG OPPORTUNITIES SEGMENT CUSTOMERS CUST. UNIVERSE $ TAM SMALL BUSINESS 6M 800M SELF-EMPLOYED 0.7M CONSUMER 42M 300M TRAJECTORY CHANGE (I.E. REASONS TO BELIEVE) GLOBAL PRODUCT EXPANDING TAM WORLDWIDE PROVEN PLAYBOOK MARKET FIT LTV/CAC * Product-
Slide 35: One Intuit Ecosystem
ONE !NTUIT ECOSYSTEM Pow ng Bosse Around the rid
Slide 36: Appendix
Appendix
Slide 37: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures The accompanying presentation contains non-GAAP financial measures. Table 1 reconciles the non-GAAP financial measures in that press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP
Slide 38: 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 stack options, restricted stock units, and our Employee Stock Purchase Plan. When consideri
Slide 39: Non-GAAP reconciliation, Q1 Fiscal 2019
(Dollars in millions, except per share amounts) Q1 Q1 Fiscal Fiscal Fiscal 2019 Fiscal 2018 2018 2017 GAAP operating income from continuing operations $ (10) $ (35) $ 1,497 $ 1,395 Amortization of acquired technology 5 2 15 12 Amortization of other acquired intangible assets 2 1 6 2 Professional fee
Slide 40: 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