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 [49] - Free cash flow also doubled from $3 billion to over $6 billion in the last fiscal year [49] - The stock performance over the last five years has increased more than three times compared to the S&P Software and Services ETF [50] Business Line Data and Key Metrics Changes - TurboTax Live grew 47%, becoming a $2 billion business [39] - QuickBooks Live, which utilizes human intelligence, doubled in growth over the last year [40] - The mid-market segment grew by 40%, indicating strong demand for the Intuit Enterprise Suite [40] Market Data and Key Metrics Changes - International revenue currently accounts for 8% of the company's total revenue [53] - The total addressable market is over $300 billion, with significant opportunities in the mid-market segment [19][32] Company Strategy and Development Direction - The company aims to create a system of intelligence that does all the work for customers, from lead to cash and credit to wealth [15][28] - The strategy includes three big bets: delivering done-for-you experiences, accelerating money benefits for customers, and focusing on the mid-market segment [29][32] - The company emphasizes the integration of AI and human intelligence to enhance customer experiences [28][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a nearly fourfold increase in size from $5 billion to almost $20 billion over the past years [16] - The focus remains on solving complex problems for consumers and businesses, with a commitment to doubling household savings rates and improving business success rates [25][18] - Management acknowledged areas of constructive dissatisfaction, particularly in the growth of Mailchimp and international markets, but expressed confidence in leadership and plans [17] Other Important Information - The company has a strong focus on culture and values, emphasizing integrity and customer-centricity [24][23] - The integration of technology and human intelligence is seen as essential for delivering value to customers [35] Q&A Session Questions and Answers 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 [47] 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 and net income significantly over the past five years, returning two-thirds of free cash flow to shareholders [49][50] Question: What percentage of Intuit's revenue is coming from international markets today, and what is the strategy to increase that? - Currently, 8% of revenue is international, with a global strategy focused on executing unique strategies for different geographies [53] Question: Will AI agents be coming to TurboTax? - Yes, AI agents are already part of the consumer platform and TurboTax, aimed at delivering customer benefits [54] 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 [60]