PresentationKasthuri RanganHead of Software Coverage So this is the day 3 of the Goldman Sachs Communacopia and Technology Conference. The fourth year that we have rebranded at this conference and reversioned it and consolidated a couple of industry groups, and it's been a tremendous success. We're more than 3,000 registrations. I know that may not sound like a big number, but in our industry, financial services industry, that's actually pretty good, it's one of the -- if not the biggest -- probably the big ...

PresentationKasthuri RanganHead of Software Coverage So this is the day 3 of the Goldman Sachs Communacopia and Technology Conference. The fourth year that we have rebranded at this conference and reversioned it and consolidated a couple of industry groups, and it's been a tremendous success. We're more than 3,000 registrations. I know that may not sound like a big number, but in our industry, financial services industry, that's actually pretty good, it's one of the -- if not the biggest -- probably the big ...

Summary of the Conference Call Company and Industry - **Company**: Intuit - **Industry**: Financial Services, specifically focusing on tax and accounting software Key Points and Arguments 1. **Company Performance and Strategy**: Intuit has made significant advancements in AI and data since 2018, positioning itself as a leader in the financial services industry. The company aims to scale its business and enhance customer experiences through AI and human intelligence collaboration [11][21][22]. 2. **Customer Base and Growth**: Intuit currently serves over 100 million active customers and plans to expand this number significantly over the next five years. The focus is on delivering AI-driven solutions that enhance productivity, with customers reportedly saving 12 hours per month [21][22]. 3. **Small Business Ecosystem**: The small business environment shows flat revenues but increased profitability due to efficiency improvements. Key indicators such as cash reserves and employee hours worked are up year-over-year, indicating resilience in the small business sector [31][32]. 4. **Mid-Market Opportunity**: Intuit is targeting the mid-market segment, defined as businesses with revenues between $2 million and $100 million, representing an $89 billion market opportunity. The company has identified about 1.7 million potential customers in this space, with 800,000 currently using QuickBooks [47][58]. 5. **Product Offerings**: The Intuit Enterprise Suite is designed to cater to mid-market customers, providing an integrated solution that reduces the need for multiple applications. The suite has seen a 40% revenue growth and a 23% increase in customers [66]. 6. **TurboTax Performance**: TurboTax Live experienced a remarkable 47% revenue growth, attributed to innovations and improved customer experiences. The integration with Credit Karma has also driven increased filings [145][146]. 7. **AI Integration**: Over 80% of Intuit's developers are using AI tools to enhance productivity, achieving up to 40% faster coding. AI is also being utilized in customer service, resulting in over $90 million in cost savings [151][162]. 8. **Competitive Landscape**: Intuit views itself as a disruptor in the market, focusing on providing an all-in-one platform rather than competing with point solutions. The company emphasizes the importance of maintaining a competitive edge through continuous innovation [120][121]. 9. **Customer Retention and Success**: Customers using Intuit's platform have a 19-point higher success rate compared to those outside the platform. The company aims to ensure that its customers are more successful than those using competing solutions [135][136]. 10. **Total Addressable Market (TAM)**: The TAM for TurboTax Live is estimated at $35 billion, with significant growth potential as the company continues to innovate and expand its offerings [184]. Other Important Insights - **Market Sentiment**: The small business sentiment is evolving, with external factors such as tariffs impacting perceptions. However, the data indicates a stable environment for small businesses [31][32]. - **Cultural Focus**: Intuit's leadership emphasizes a culture of customer-centric innovation, which is reflected in their product development and market strategies [81][82]. - **Future Outlook**: Intuit is optimistic about its growth trajectory, aiming to double its size in the coming years while maintaining a focus on margin expansion [194][201].

Key Takeaways Intuit revenues rose 16% to $18.8B in FY25, with operating income up 18% to $7.6B.TurboTax Live revenues jumped 47% as AI and Credit Karma integration boosted engagement.QuickBooks Online grew 23%, with AI agents cutting manual setup work by up to 60%.Intuit Inc. (INTU) is accelerating its transformation into an AI-first financial technology company, embedding artificial intelligence across TurboTax, QuickBooks, Credit Karma, and Mailchimp to drive engagement, efficiency and growth. Fiscal 202 ...

Core Insights - Intuit Inc. has reported strong fiscal fourth-quarter and full-year 2025 results, yet its shares have declined by 12.8% over the past three months, underperforming the broader market and peers [1][2]. Financial Performance - Full-year revenues for fiscal 2025 increased by 16% to $18.8 billion, with fourth-quarter revenues surging by 20% to $3.8 billion [5][9]. - GAAP operating income grew by 36% to $4.9 billion, and non-GAAP EPS advanced by 19% to $20.15 [5]. Growth Drivers - The launch of a virtual team of AI agents is expected to drive significant growth across QuickBooks, TurboTax, and the broader ecosystem, with early adoption rates exceeding expectations [6]. - Intuit is making strides in the $89 billion mid-market total addressable market (TAM) through its Intuit Enterprise Suite and QuickBooks Online Advanced, with fourth-quarter billed customers nearly doubling compared to the third quarter [7]. Segment Performance - TurboTax Live revenues increased by 47% for the full fiscal year, with customer growth of 24%, while Credit Karma revenues rose by 32% [7][10]. - The Consumer Group's performance is enhancing year-round engagement and monetization opportunities beyond the tax season [10]. Challenges - Mailchimp is a drag on performance, with expectations for it to return to double-digit growth only by the end of fiscal year 2026 [12]. - International growth has lagged, limiting diversification, and Intuit's performance is tied to small-business health and consumer spending dynamics [12]. Valuation and Market Position - Intuit currently trades at a forward Price/Sales (P/S) ratio of 8.75X, which is above the industry average of 8.33X [13]. - Compared to peers, Intuit trades at a discount to Autodesk but at a premium to Commvault Systems [13]. Strategic Outlook - Intuit is positioned well for sustained growth due to its durable moats in tax, accounting, and consumer finance, alongside solid cash flow and manageable debt [14]. - Despite the recent pullback improving entry points, the stock's valuation premium and macro risks temper near-term upside, suggesting a prudent hold strategy until more favorable conditions arise [15].

PART I [ITEM 1 Business](index=4&type=section&id=ITEM%201%20Business) Intuit is a global financial technology platform serving 100 million consumers, businesses, and accountants - Intuit's mission is to power prosperity globally, serving approximately **100 million customers** across consumers, small/mid-market businesses, and accountants [12](index=12&type=chunk) - The company's strategy is to be an **AI-driven expert platform**, combining AI agents and AI-enabled human experts to automate tasks, manage workflows, and provide predictive insights [13](index=13&type=chunk)[21](index=21&type=chunk) Revenue Contribution by Segment (Fiscal 2023-2025) | Segment | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | | :---------------------- | :---------- | :---------- | :---------- | | Global Business Solutions | 59 % | 59 % | 56 % | | Consumer | 26 % | 27 % | 29 % | | Credit Karma | 12 % | 10 % | 11 % | | ProTax | 3 % | 4 % | 4 % | - The Consumer and ProTax segments exhibit **significant seasonality**, with sales and revenue from income tax preparation products concentrated from November through April, leading to **higher net revenues in the second and third fiscal quarters** [54](index=54&type=chunk)[55](index=55&type=chunk) [ITEM 1A Risk Factors](index=17&type=page&id=ITEM%201A%20Risk%20Factors) Intuit faces strategic, operational, legal, compliance, and financial risks across its global operations - **Intense competition**, including from free/low-cost offerings and government tax software, poses a **significant strategic risk** to revenue and profitability [106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - **Cybersecurity incidents**, including sophisticated attacks leveraging AI, improper data access, or third-party breaches, are a **major operational risk** that could harm reputation, business, and financial condition [122](index=122&type=chunk)[123](index=123&type=chunk)[131](index=131&type=chunk) - The **rapidly evolving legal and regulatory landscape**, especially for AI, data privacy (e.g., EU AI Act, GDPR, US state laws), and the tax preparation industry, could **increase compliance costs**, restrict offerings, and lead to legal liability [158](index=158&type=chunk)[159](index=159&type=chunk)[162](index=162&type=chunk) - The **seasonality of tax businesses** (Nov-Apr), **adverse macroeconomic conditions** (inflation, interest rates, recession), and risks associated with providing capital to small/mid-market businesses are **key financial risks** [169](index=169&type=chunk)[175](index=175&type=chunk)[177](index=177&type=chunk) [ITEM 1B Unresolved Staff Comments](index=31&type=section&id=ITEM%201B%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC - There are **no unresolved staff comments** [187](index=187&type=chunk) [ITEM 1C Cybersecurity](index=31&type=section&id=ITEM%201C%20Cybersecurity) Intuit's robust information security program, led by a CISO and team, protects sensitive data and systems - Intuit's information security program is led by a **CISO** and a **500-person CyberCRAFT team**, focusing on preventing and mitigating cyber threats and responding to incidents [188](index=188&type=chunk)[190](index=190&type=chunk) - The program includes **risk assessments**, regular testing against cybersecurity frameworks (ISO 27001, PCI DSS, SOC 2), **vulnerability management**, **incident response plans**, and **third-party risk management** [190](index=190&type=chunk) - Management oversees daily cybersecurity, with the **Audit and Risk Committee** providing primary oversight and receiving **quarterly updates** from the CISO [191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) [ITEM 2 Properties](index=32&type=section&id=ITEM%202%20Properties) Intuit's principal offices are in Mountain View, CA, and other key locations, with owned and leased facilities - Intuit's corporate headquarters and principal offices are in **Mountain View, CA**, with other key locations in **Bangalore, San Diego, Oakland, and Plano** [195](index=195&type=chunk) - The company owns some facilities and leases others, with lease expiration dates extending up to **2034** [195](index=195&type=chunk) [ITEM 3 Legal Proceedings](index=32&type=section&id=ITEM%203%20Legal%20Proceedings) Intuit is involved in various legal proceedings and regulatory inquiries, particularly concerning its free online tax preparation programs - Intuit faces **ongoing legal proceedings and regulatory inquiries** related to its free online tax preparation programs, including a **class action in Canada** and **FTC actions** [571](index=571&type=chunk)[572](index=572&type=chunk) - The company **settled individual arbitration claims** and **state attorneys general inquiries** for non-material amounts and **$141 million**, respectively [571](index=571&type=chunk)[572](index=572&type=chunk) - The FTC issued a **final order in January 2024** requiring changes to marketing practices, which Intuit is appealing; the company cannot estimate a **reasonably possible financial loss** for remaining matters [572](index=572&type=chunk)[573](index=573&type=chunk) [ITEM 4 Mine Safety Disclosures](index=32&type=section&id=ITEM%204%20Mine%20Safety%20Disclosures) Intuit reported no disclosures related to mine safety - **No mine safety disclosures** were reported [197](index=197&type=chunk) PART II [ITEM 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=33&type=section&id=ITEM%205%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Intuit's common stock is listed on Nasdaq, with details on dividends, stock repurchases, and performance - Intuit's common stock is traded on the **Nasdaq Global Select Market** under the symbol "**INTU**" [199](index=199&type=chunk) Dividends Declared (Fiscal 2024-2025) | Fiscal Year | Dividends Per Share | Total Dividends (Billions) | | :---------- | :------------------ | :------------------------- | | 2025 | $4.16 | $1.2 | | 2024 | $3.60 | $1.0 | Stock Repurchase Activity (Q4 Fiscal 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :------------------------------ | :--------------------- | :--------------------------- | | May 1, 2025 through May 31, 2025 | 305,015 | $670.06 | | June 1, 2025 through June 30, 2025 | 309,978 | $765.20 | | July 1, 2025 through July 31, 2025 | 397,525 | $771.54 | | Total | 1,012,518 | $739.03 | - As of July 31, 2025, Intuit had **$2.1 billion remaining authorization** for stock repurchases, with an additional **$3.2 billion approved in August 2025** [202](index=202&type=chunk) 5-Year Cumulative Total Return (July 31, 2020 - July 31, 2025) | Index | July 31, 2020 | July 31, 2025 | | :------------------------- | :------------ | :------------ | | Intuit Inc. | $100.00 | $264.44 | | S&P 500 | $100.00 | $208.96 | | Morgan Stanley Technology Index | $100.00 | $268.74 | [ITEM 6 [Reserved]](index=34&type=section&id=ITEM%206%20%5BReserved%5D) This item is reserved and contains no information [ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=ITEM%207%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Intuit's fiscal 2025 saw strong financial performance with total net revenue increasing 16% to $18.8 billion, operating income rising 36% to $4.9 billion, and diluted net income per share growing 31% to $13.67 Financial Overview (Fiscal 2023-2025) | Financial Overview (Dollars in millions, except per share amounts) | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | 2025-2024 % Change | 2024-2023 % Change | | :---------------------------------------------------------------- | :---------- | :---------- | :---------- | :----------------- | :----------------- | | Total net revenue | $18,831 | $16,285 | $14,368 | 16% | 13% | |

Question-and-Answer SessionMaybe just to start, I'm sure people know you from here, but just maybe give a little bit of your background and talk a little bit about what you do at Intuit.Alex BalazsExecutive VP & CTO Yes, absolutely. So hello everyone, Alex Balazs, Intuit's Chief Technology Officer. I joined Intuit unbelievably in 1999, October of 1999, so coming up on 26 years. I joined a desktop software company, and I was part of the team that was tasked with put small businesses online. So I was one of t ...

Summary of Intuit (INTU) 2025 Conference Call Company Overview - **Company**: Intuit (INTU) - **Event**: 2025 Conference on September 03, 2025 - **Speaker**: Alex Balazs, Chief Technology Officer Key Points Industry and Company Evolution - Intuit has a history of self-disruption and reinvention, adapting to technological shifts from desktop to online, SaaS, and now to AI-driven platforms [7][8][10] - The company aims to be an all-in-one platform for small businesses, integrating various services beyond accounting, including credit and wealth management [10] AI Development and Strategy - Intuit has been developing AI capabilities since around 2015-2016, with significant early success in predicting tax filing preferences with 97-98% accuracy [13][14] - The company emphasizes the importance of data quality and organization for effective AI implementation, leveraging extensive datasets of customer attributes [15][16] - A combination of AI and human intelligence (HI) is central to Intuit's strategy, enhancing customer service through live assistance when AI cannot resolve issues [17][19] Productivity and Innovation - Intuit has improved engineering productivity by 8x over the past six years, with AI tools increasing coding productivity by up to 40% [21][24] - The company is focused on applying AI across all functional roles, not just engineering, to enhance overall workforce efficiency [25][26] Customer-Centric Product Development - Intuit's approach to AI integration focuses on automating end-to-end customer workflows rather than simply adding AI features to existing products [27][28] - The goal is to create seamless experiences where customers perceive value without needing to understand the underlying AI technology [30][31] Future Product Strategy - Intuit is transitioning from DIY products to automated solutions that handle tasks for customers, aiming for a platform that simplifies user interaction [33][34] - The company plans to expand its market reach, targeting larger businesses and vertical markets, while also enhancing horizontal capabilities to address a wider range of customer needs [49][50] Monetization and Market Position - Intuit's monetization strategy involves encouraging customers to upgrade to higher-value services through demonstrated benefits rather than traditional advertising methods [38][39][42] - The company positions itself as a disruptor in the AI and SaaS space, leveraging its extensive customer base and data to maintain a competitive edge [46][47] Conclusion - Intuit is focused on evolving its platform to provide comprehensive solutions for businesses, aiming for a future where it serves as a one-stop shop for financial management [50][51]

Core Viewpoint - Intuit's stock has faced significant challenges, experiencing a cumulative decline of 7.61% over four consecutive days, reaching its lowest point since May 2025, despite a strong fourth-quarter earnings report [1][2] Financial Performance - Intuit reported a 20% revenue growth, reaching $3.83 billion, surpassing market expectations of $3.74 billion [1] - Adjusted earnings per share increased from $1.99 to $2.75, exceeding the anticipated $2.66 [1] Future Outlook - The company projected first-quarter revenue growth between 14% and 15%, below analyst expectations of 16% [1] - Adjusted earnings per share are expected to be between $3.05 and $3.12, slightly below the market expectation of $3.07 [1] - Concerns have arisen regarding the performance of the Mailchimp platform, which has negatively impacted overall results [1] Analyst Reactions - Several investment banks, including Morgan Stanley, Bank of America, and Citigroup, have lowered their price targets for Intuit, reflecting a cautious market sentiment regarding the company's growth prospects [2] Long-term Strategy - Intuit maintains a positive long-term growth target, aiming for 12% to 13% revenue growth in fiscal year 2026, driven by its AI-powered platforms [2] - The TurboTax Live and Credit Karma businesses have shown significant growth, providing new momentum for the company [2]

Core Viewpoint - Intuit's shares are declining due to first-quarter revenue guidance falling short of estimates, prompting analysts to lower price forecasts [1][8]. Financial Performance - Intuit reported a strong fourth-quarter revenue of $3.83 billion, representing a 20% year-over-year increase, surpassing consensus estimates by $88 million [2][6]. - Adjusted operating income for the fourth quarter was $1.02 billion, with a margin of 26.5%, also exceeding expectations [2]. - Global Business Solutions Group (GBSG) revenue reached $3.01 billion, an 18% increase, driven by a 21% growth in the Online Ecosystem [3]. Revenue Breakdown - Online Ecosystem revenue was $2.22 billion, with Intuit Enterprise Suite (IES) and QBO Advanced growing approximately 40% [3]. - Credit Karma revenue increased by 35% to $638 million, while TurboTax Live revenue surged by 47% [3][7]. - Small and Medium Business (SMB) revenue remained flat year-over-year but generated higher profit and cash flow [3]. Future Guidance - Fiscal 2026 guidance is considered soft, with projected revenue of $21.0 billion to $21.19 billion, reflecting a 12-13% growth, which is below market expectations [4][8]. - Adjusted operating income for fiscal 2026 is forecasted at $8.61 billion to $8.69 billion [4]. - GBSG growth guidance of 14-15% includes a ~150 basis points drag from Mailchimp [4]. Analyst Insights - KeyBanc analyst Alex Markgraff maintains an Overweight rating but has reduced the price forecast from $850 to $825, citing Mailchimp headwinds [1][2]. - RBC Capital analyst Rishi Jaluria reiterates an Outperform rating with a price target of $850, highlighting broad-based strength in revenue growth [1][6]. - Both analysts noted that fiscal 2026 guidance does not account for potential AI agent monetization, which could provide upside later [4][8]. Market Reaction - Following the guidance announcement, Intuit's stock fell approximately 6% in after-hours trading, closing down 4.99% at $663.52 [9].