Intuit(US:INTU)2023-08-25 01:55Financial Data and Key Metrics Changes - For Q4 fiscal 2023, the company reported revenue of $2.7 billion, up 12% year-over-year, with GAAP operating income of $17 million compared to a loss of $75 million last year [31] - Non-GAAP operating income increased by 45% to $627 million, while GAAP-diluted earnings per share were $0.32, up from a loss of $0.20 a year ago [31] - Non-GAAP diluted earnings per share rose by 50% to $1.65 from $1.10 last year [31] Business Segment Data and Key Metrics Changes - Revenue for the Small Business and Self-Employed Group grew 21% in Q4 and 24% for the full year, benefiting from Mailchimp's revenue [12] - QuickBooks Online Services revenue grew 34% for the full fiscal year, driven by Mailchimp, payroll, payments, capital, and time tracking [13] - Consumer Group revenue was $4.1 billion in fiscal 2023, up 6%, with TurboTax Live revenues growing 17% [34] Market Data and Key Metrics Changes - International online ecosystem revenue grew 12% in Q4 and 31% for the full fiscal year on a constant currency basis [33] - Desktop ecosystem revenue grew 19% in Q4, with QuickBooks Desktop Enterprise revenue growing in the low 20s [33] - Credit Karma revenue was $424 million in Q4, down 11%, with full-year revenue of $1.6 billion, down 9% [61] Company Strategy and Development Direction - The company aims to be a global AI-driven expert platform, focusing on data and AI to fuel innovation across its five Big Bets [4][18] - The strategy includes enhancing the Mailchimp platform to create an end-to-end customer growth platform and disrupting the mid-market with a full marketing automation suite [9] - The company is investing in generative AI to accelerate innovation and improve customer experiences [6][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth and margin expansion in fiscal 2024 despite macroeconomic uncertainties [23] - The company anticipates continued strong growth in the Small Business and Self-Employed Group, projecting revenue growth of 15% to 20% per year in the long term [14] - Management highlighted the importance of local marketing and the need to adapt strategies based on customer feedback [72] Other Important Information - The company repurchased $465 million of stock in Q4 and $2 billion during fiscal 2023, with a quarterly dividend of $0.90 per share, representing a 15% increase from last year [16] - The company expects a GAAP tax rate of approximately 23% in fiscal 2024 and has provided guidance for Q1 fiscal 2024, including revenue growth of 10% to 11% [36] Q&A Session Summary Question: Feedback on QuickBooks native bill pay beta - Management reported positive feedback from beta customers and plans to expand the availability of the bill pay solution significantly [46][47] Question: Prudent guidance for consumer business - Management clarified that the guidance reflects a cautious approach, not assuming IRS growth and not banking on all innovations paying off immediately [52][74] Question: Continued margin expansion - Management indicated that operating expenses are expected to grow slower than revenue, allowing for continued margin expansion [53] Question: Indicators of small business health - Management noted that small businesses are generally healthy but face challenges, with cash reserves at 90% of last year's levels [102] Question: Long-term growth rate of Credit Karma - Management remains bullish on Credit Karma's long-term growth, expecting a return to 20% to 25% growth rates as credit conditions stabilize [108]