Intuit(INTU) - 2026 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company scaled its revenue from $9.5 billion in 2021 to nearly $19 billion in the past year, doubling its net income from $2 billion to over $4 billion, and also doubling free cash flow from $3 billion to over $6 billion in the last fiscal year [47][48] - The company has been returning two-thirds of its free cash flow to shareholders over the past five years, indicating strong performance and focus on shareholder returns [47] Business Line Data and Key Metrics Changes - TurboTax Live grew 47%, becoming a $2 billion business, while QuickBooks Live, which utilizes human intelligence, doubled in growth over the last year [39][40] - The services for small businesses, such as payments and payroll, grew by 37% and 25% respectively, showcasing the impact of the system of intelligence [40] Market Data and Key Metrics Changes - International revenue accounts for 8% of the company's total revenue, with a strategy focused on executing geographically tailored strategies to enhance local customer delivery [49] - The total addressable market is over $300 billion, with significant opportunities in the mid-market segment, which grew by 40% [18][40] Company Strategy and Development Direction - The company aims to create a system of intelligence that handles all customer tasks from lead to cash, credit to wealth, emphasizing the integration of AI and human intelligence [14][27] - The strategic focus includes delivering done-for-you experiences, enhancing cash flow for customers, and targeting the mid-market segment for growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to solve complex customer problems and highlighted the importance of being customer-obsessed to drive future growth [17][22] - The company is excited about the secular shifts in the market, including the over-digitization of businesses and the rise of new generations of customers who expect seamless, expert-driven solutions [19][20] Other Important Information - The company has a strong focus on culture and systems to ensure it remains customer-centric and willing to innovate [42] - The integration of AI and human intelligence is seen as a key differentiator in delivering value to customers [35][36] Q&A Session Summary Question: What is the company's current relationship to Human Rights Campaign's corporate index? - The company is rated by various organizations, including those focused on sustainability and the Human Rights Campaign [46] Question: What is Intuit doing to improve the message and increase value for retail investors? - The management team focuses on executing a strategy that has scaled revenue significantly and returned substantial cash flow to shareholders, outperforming peers [47][48] Question: What percentage of Intuit's revenue is coming from international markets today, and what is the strategy to increase that? - International revenue is 8%, with a strategy tailored to local markets to enhance customer delivery [49] Question: Will AI agents be coming to TurboTax? - Yes, AI agents are already part of the consumer platform, including TurboTax, aimed at delivering customer benefits [49][50] Question: Would a sale or spinoff of QuickBooks' desktop business line be considered in future plans? - No, the company intends to continue serving its desktop customers as part of its integrated platform strategy [53]