Q4 2020 Intuit Inc Earnings Call
Good afternoon my name it looks like it would be your conference facilitator.
At this time I would like to welcome everyone to Intuit's fourth quarter in fiscal year 2020 conference call.
All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question and answer period. If you like to ask a question. During this time simply press Star then one number one on your telephone keypad.
If you would like to withdraw your question press the pound you.
With that I'll now turn the call over to Kim Watkins into words, Vice President of Investor Relations Ms. watch it.
Thanks <unk>.
Good afternoon, and welcome to into its fourth quarter fiscal 2020 conference call I'm here with Intuit CEO sits on good RC and Mitchell Clutterbuck our CFO.
Before we start I'd like to remind everyone that our remarks will include forward looking statements.
Our number of factors that could cause into its results could differ materially from our expectation.
You can learn more about these risks in the press release, we issued earlier this afternoon, our form 10-K for fiscal 2019, and our other SEC filings.
All of those documents are available on the Investor relations page of into its website at Intuit Dot com.
We assume no obligation to update any forward looking statements.
Some of the numbers in these remarks are presented on a non-GAAP basis, we've reconciled the comparable GAAP and non-GAAP numbers in todays press release.
Unless otherwise noted all birthrates reports the current period versus the comparable prior year period, and the business metrics and associated growth rate refer to worldwide business metrics.
A copy of our prepared remarks, and supplemental financial information will be available on our website. After this call and.
With that I'll turn the call over to support.
Thanks, Jim.
Thanks, all of you for joining us today, I hope, you're all safe and well.
We had a very strong fourth quarter capping off a dynamic so your 2020.
For your revenue grew 13% an operating margin expanded.
Total revenue growth was fueled by 15% growth on the small business in self employed group.
14% growth and the consumable.
TBL and T O platform revenue totaled 4.8 billion in fiscal year 2021, 22% year over year.
Hey, I do have an expert platform strategy and the focus on our five big bets, we're building momentum and accelerating in the basin in the current environment.
We believe positions us well for durable growth in the future.
We just finished tax season, let's start there.
This tax season was like no other and our team delivered a strong season and uncertain environment by executing on our strategy of expanding our lead and the do it yourself category transforming the assisted category and disrupting consumer finance.
Based on our estimates exporting stimulus filings of approximately seven to 8 million.
Sure yourself category share do over two points this season.
Through our share of total returns and posted 11% customer growth the strongest in four years log run revenue double digits for the third year in alone.
With a base of customers paying us nothing just over 20%.
Posted double digit growth of new customers across underpenetrated segments, including let's see next self employed and customers with investments and food turbotax life customers nearly 70%.
Now turning to small business revenue for the small business and self employed group grew 16% in the fourth quarter and 15% for the year.
Online ecosystem revenue grew 29% in the fourth quarter, including four points of non recurring revenue from the paycheck protection program and 31% for the year.
We're seeing the resiliency of our platform falling a different demand earlier this year when shall someplace shutdown many small businesses.
We're now seeing recovering trends across our platform, including improved retention rates payments volume and employees paid with our payroll offerings as customers continue to rely on quickbooks as the source of truth for their business.
With that said there remains a great deal of uncertainty in the market, particularly for small businesses.
Pandemic continues to run its course.
Next I'll turn to the progress of our AI driven expert platform strategy and how we are executing against our five big bets.
These big bets focus on the largest problems our customers face and represent durable growth opportunities for into it.
I will cover big that number one last as it accelerate innovation across our platform and its foundational to the other bets.
Big that number two it's connect people to experts one of the largest problems our customer space is lack of confidence to do their own taxes and to manage their business. We're connecting customers. The experts on our platform to solve this problem with turbotax lives and cookbooks lives, allowing us to reach more customers deepen.
Our engagement and grow a PC.
Within Turbotax, why we had a terrific season.
The number of turbotax like customers grew nearly 70%.
We provided new ways for customers to access an exit Ralph filing process.
Attributing that first year retention and conversion rate increasing several points.
And almost 70% of new turbotax customers, who use our lives offering came from an assisted method the prior year.
A higher percentage that turbotax online.
For exports on that platform, you saw higher satisfaction scores and lower attrition as we focus on improving the expert experience.
On slide we're proud of the progress we made this year building on the virtual excellent platform, we created for Turbotax lives.
What the rapid adoption of virtual solutions, we continue to see encouraging early signs for cookbooks lives as we further develop the offering with a higher percentage than expected of customers upgrading play monthly subscription from our setup offering we introduced in January.
Our third big bet is to unlock smart money decisions by connecting customers with financial offerings that help with more mucking their pockets.
And its third season, we more than doubled monthly active users for turbo and increased customer retention rate as we grew registered users by 8 million to 22 million.
Suggest customer that finding value from our recently introduced innovation such as we've been tracking and goal setting.
We expect our pending acquisition of credit card have to be more important than ever in this challenging environment as we work to help consumers to save money get added that have faster access the money.
We continue to expect that transaction to close the second half on calendar year 2020.
Our fourth Big bet is to become the center of small business grows by helping our customers get paid bath.
And its capital pay employees with confidence and grow in an omni channel world.
We recently launched cookbooks cash a small business bank account that provides full visibility into small businesses current and future financial picture with the ability to move money instantly and to ensure this money is working for them, while leveraging the built and accounting capabilities of cookbooks.
The cash account earns an attractive interest rate enables small business set aside farms upcoming expenses and on blogs and comes with a debit card.
It's fully integrated with quickbooks payments and payroll, enabling a small business to pay a workable for vendor the same base they receive the funds when a customer.
It also includes an integrated pastoral partner to predict future cash me.
We're very excited to learn faster and scale the few innovation.
We continue to support our small business customers by helping them access the paycheck protection program for PPP, you cookbooks capital.
As of July 31st into an helped make available just over 1.2 billion about food small business loans to customers.
We've helped approximately 37000 small businesses access to both the average loan of nearly $38000 keeping over 220000 employees on payables.
Finally, falling the announced acquisition upright that's fairly robust inventory and order management system. We look forward to sharing more with you at Investor day about how we will integrate these capabilities into cookbooks help small businesses manage and grow in an omni channel environment.
Our.
Big bet, it's a disrupt the small business Midmarket Quickbooks online at bats, designed to address the needs of small businesses with tens of 100 employees.
Throughout the last year, we introduced features to help customers individually tailored be offerings to their needs, including workflow automation.
And your own dashboard custom fields were expensed transactions and batch invoicing and payments.
We also continue to work closely with partners to establish deeper integrations with premium out.
But the goal to save our customers time by personalizing, the offering and improving their experience.
Now more than ever it's simple flexible cloud offering is needed by mid market customers at a disruptive price.
Let me wrap up our big that's like circling back the big that number one which is our foundational bets to revolutionize speed benefit bar customers.
Our goal is to put more money in our customers pockets eliminate friction and deliver confident that every touch point by using AI and customer insight.
Here are a couple of examples of the progress that we're making.
First we accelerated use of AI and increase the number of model deployed across our platform by over 50% this year.
This increase you somebody I drove a variety of customer benefits, including saving customers 25000 hours with self help and cutting expert review time in house improving customer confidence.
Second we completed the migration of our data centers to the cloud lot expanding our core technology capabilities.
Enabled us to decrease downtime by 30%.
Triple the speed of delivery on our modern development platform and increased mobile application the deployments by 60% we.
We can now launched new features in a fraction of the time and wants to talk and deliver customer benefit with even greater speed.
As I shared earlier, we believe the current environment is acting as an accelerant to these that.
Most everyone is looking for virtual solutions small businesses are accelerating their shift to online and omni channel commerce.
Both consumers and small businesses are looking for ways to put more money in their pocket.
To wrap up I'm incredibly proud of our accomplishments. This year, we remain focused on what matters most to our customers and what we can control during this time of uncertainty.
Let me hand, it over to Michelle.
Thanks to fine good afternoon, everyone.
We're successfully executing on the principles, we laid out last quarter for operating in a downturn. These principles are designed to accelerate our execution and help both our customers and into it emerged from a downturn stronger than ever.
Let me now turning to our results.
As a reminder, fourth quarter reflect <unk> first quarter results reflect a shift on a significant portion of tax filings out of the third quarter and into the fourth quarter.
For the fourth quarter fiscal 2020, we delivered revenue of $1.8 billion.
GAAP operating income of $483 million versus a loss of $153 million last year.
Non-GAAP operating income of $616 million versus a loss of $47 million last year.
GAAP diluted earnings per share of $1.68 cents versus a loss per share of 17 cents a year ago.
Non-GAAP diluted earnings per share of adopt and 81 cents versus a loss per share of nine cents last year.
Turning to the business segments consumer group revenue grew 13% in fiscal 2020, Turbotax units grew 11% and our retention rate increased again this year for our online tax customers.
There are four primary drivers in our consumer business.
The first is the total number of returns filed with the IRS.
Based on the latest IRS data through July 24th we estimate total returns, including paper filings Q3 to 4%. This excludes approximately seven to 8 million stimulus on the filing.
The second is the percentage of those returns filed using do it yourself software.
Excluding stimulus only filings we estimate category share grew over two points. This season, the fastest pace in 15 years as a reminder, b. I why category growth, it's our largest revenue growth lever.
The third driver is our share within DIY why.
Excluding stimulus only filings we estimate our share of total tax returns grew over 1.5 points and our share of the category was flat.
The fourth is average revenue per return, which increased again this season.
The growth reflects a stronger contribution by turbotax lie and minor price increases in the premier product and state attached.
Turning to the strategic partner group, we reported $493 million professional tax revenue in fiscal 2020 up 4%.
In this lumpiness in self employed group revenue grew 16% during the quarter and 15% in fiscal 2020, including nonrecurring P.P.P. revenue.
Excluding TPP small business and self employed group revenue grew 13% during the quarter and 14% in fiscal 2020, reflecting the impact of the pandemic on small businesses.
Online ecosystem revenue remained resilient with growth of 29% during the quarter and 31% during the year, including nonrecurring P.P.P. revenue.
Excluding TPP online ecosystem revenue grew 25% in fiscal Q4 and 30% in fiscal 2020.
Our strategic focus within small business self employed is to grow the core connect the ecosystem and expand globally.
Last quarter I shared recent business trends and I'd like to update you on the same trends compared to pre coated levels in the first half of the third quarter.
First we continue to focus on growing the core Quickbooks online accounting revenue grew 34% in fiscal Q4, driven mainly by customer growth higher effective prices and to a lesser extent mix shifts.
During the fourth quarter QB, new customer acquisition accelerated by approximately 10 point versus the second half of the third quarter, but it's still down five point from pre kobin levels.
Retention within the existing customer base improved during Q4.
Full year QB, a retention is down two points to 77%.
Second we continue to focus on connecting the ecosystem.
Online services revenue grew 21% in fiscal Q4, driven by payments P.P.P. loans payroll and time tracking.
Excluding nonrecurring P.P.P. revenue online services revenue grew 12%.
Within payroll, we continue to see revenue tailwind during the quarter from a mix shifts to our full service offering.
The number of workers paid it was roughly flat year over year in the fourth quarter.
Improving from a 10% year over year decreased during the second half of the third quarter, but still 20 points below pre co bid levels.
Similarly, the number of companies running payroll grew approximately 10% year over year in the fourth quarter, improving from flat year over year in the second half of the third quarter.
This is still five points below pre kind of at levels.
We think payments revenue growth reflects continued customer growth along with an increase in charge volume per customer.
Payment charge volume grew 15% in the fourth quarter, improving from flat year over year in the second half of the third quarter.
This is still 15 points below pre the pre cobot levels.
Third our progress expanding globally added to the growth of online ecosystem revenues during fiscal Q4.
Total international online revenue grew 31%, reflecting subscriber and air PC growth earlier in the fiscal year.
Desktop ecosystem revenue was up 3% into fourth quarter and roughly flat for the year.
Excluding nonrecurring P.P.P. revenue desktop ecosystem revenue was flat in the fourth quarter.
The decline desktop units moderated in the fourth quarter and Quickbooks desktop enterprise revenue grew mid single digits.
Enjoyed helped facilitate more than $1.2 billion in small business loans tend to pay check protection program through Quickbooks capital.
This resulted in approximately $30 million in nonrecurring revenue in the fourth quarter.
Turning to our financial principle, we remain committed to growing organic revenue double digits and growing operating income dollars faster than revenue, we take a disciplined approach to capital management investing the cash we generate and opportunities that yield an expected return on investment greater than 15%.
We continue to focus on reallocating resources, the top priorities with an emphasis on becoming an Adrian expert platform.
These principles remain our long term commitment that we recognize that we may not be able to achieve them in the current environment.
During the fourth quarter, we refocused our investments to ensure our capabilities are aligned against our eight driven expert platform strategy and big bet.
This resulted in the departure of over 700 employees and a onetime charge of $43 million in both GAAP and non-GAAP results.
We plan to higher about 700 employees in our most strategic areas, including systems, a full staff and data engineering.
Data science customer success and sales.
Turning back to our financial principles, our first priority for the cash we generate is investing in the business to drive customer and revenue growth.
We consider acquisitions to accelerate our growth in fill out our product road map.
We returned excess cash that we can't invest proper profitably in the business to shareholders via share repurchases and dividends.
We finished the quarter with approximately $7.1 billion in cash and investments on our balance sheet.
In June we issued $2 billion in senior notes to find a portion of the credit Karma acquisition and for other general corporate purposes.
These notes carry a blended coupon rate of 1.15%.
Following the ended the quarter, we repaid the 1 billion dollar balance on our revolver.
We did not repurchase any stock during the fourth quarter as we have temporarily suspended share purchases in conjunction with the credit Karma acquisition.
We have approximately $2.4 billion remaining on our authorization and we expect to be in the market in the future.
The board approved a quarterly dividend of 59 cents per share payable October 19, 2020. This represents an 11% increase versus last year.
Looking ahead to fiscal 2021, well, we're not providing company level guidance today, reflecting uncertainty in small business trends. We believe the current environment accelerated our consumer results. This season, creating a more challenging comparison for next year.
We see several scenarios for how the economic recovery may impact, our small business performance and that we are considering as we run the business.
The first scenario is that the pace of economic recovery continues at its current pace, reaching normalized growth in the spring of 2021.
Under this scenario, we could see small business and self employed group revenue grow high single digits.
The second scenario is a more gradual opening of the economy, including ongoing headwinds from small business failures.
This double U shaped recovery a seems cases increased during the winter months, coinciding with our peak season in the U.S.
Under this scenario, we could see small business and self employed group revenue grow mid single digits.
The third scenario is a choppy recovery and more than one way of small business failures or shutdowns, creating a double double U shaped recovery.
Under this scenario, we could see small business and self employed group revenue flat to up low single digits.
In addition, we expect a slower small business and self employed revenue growth in the first half as compared to the second half of fiscal 2021.
We supported customers during the second half of 2025 delaying price increases migration to our new payroll offerings and upgrades to keep you advanced.
As a reminder, we began rolling out a kibo price increase in first quarter of fiscal 2020, and we'll start lapping the full impact of that increase in the second quarter of fiscal 2021.
Keep in mind that there was also a lagging impact to Quickbooks online accounting revenue from the slower customer acquisition and higher attrition, we experienced during third quarter.
To reiterate our long term expectations include revenue growth of 8% to 12% for the consumer group and 10% to 15% for the small business and self employed group.
We continue to expect online ecosystem revenue growth of more than 30% longer term.
Lastly, we expect a GAAP and non-GAAP tax rate of 23% for fiscal 2021.
And with that I'll turn it back over just the song.
Great. Thanks, Michelle.
I'm very proud of the team and all that we've accomplished together in fiscal year 2020, we're uniquely positioned to make a positive impact on the world as our mission has never been more meaningful the now the power prosperity around the world.
I look forward to sharing with you our strategy of an AI driven expert platform and our five big bets or accelerating innovation at our virtual Investor day on September 20 Threerd.
Let's now open it up to your question.
Ladies and gentlemen.
Thank you if you would like to ask a question. Please press Star then number one on your telephone keypad. If you would like to withdraw your question press the pound too.
Our first question comes from a line of Brad Zelnick of Credit Suisse. Your line is open.
Excellent. Thank you so much and congrats on a on a really strong finish to the year.
So I wanted to get your take on some recent forecasts that have been made by the IRS that there would be about 37 million fewer W. Two employees you classify jobs in 2021 with this lower level of employment persisting through 2027, and they also see fewer filings of 10 99 forms and about 1.6 million more good workers.
Number one how important or or or accurate do you think these forecasts SAR and two does this reality, we're environment impact how you'll be thinking about the medium term growth algorithm of the tax business, especially as it relates to overall filings.
Sure. Thanks, Brad I hope all is well with the my friend.
So let me that I'm aware of the stock maybe if I can just a touch on history and touch on how we think about the future.
It goes back to the recession in 2008, and the way that played out and Oh wait and or on Eileen Onein.
What we had solid filings as they were kind of flat to down just a little bit and so even in very tough times you saw a general flat environments. When it came to a number of filings now these times are a bit different than that Oh wait and oneid, but history is always a important to look at.
When we look ahead a couple of things one is unemployment was very low at the beginning of this fiscal year and unemployment also gets a tax and so when we think about a 2021 and beyond you know there may be it up or the filings maybe down a bit or they may be close to out to flat.
Up it does not at all change our strategic focus and just as a refresher we're really focused on expanding our leading the do it yourself category, there's still a massive opportunity that I believe we're just getting started in transforming the assisted category and so when you look at our penetration in the assisted category.
And you look at the opportunity, we still haven't extending the do it yourself category, we believe that a the long term expectations of what we've sat around 8% to 12%.
Consumer group revenue growth you know still stands but that's how we think about a couple of years that are upcoming given the you know the number of folks that are unemployed.
Thank you so much for that's the sauna and Michelle if I could just follow up with you on your comments about a difficult compare in tax into this year, specifically, if we think about the very strong penetration and growth in P. T. L is it fair to say that investors should expect.
Slowing of the penetration rates, just because I mean this year seems to have been clearly a perfectstorm if anybody word to enter the category and especially to try TPL. How are you thinking about that thank you.
Thanks, Brad I'm hope you're doing well to.
I would say a couple of things I mean, what's assigned just said it applies to your question up our strategic focus is not changing we continue to focus on expanding our lead and yeah, why and also transforming assisted with the turbotax life products.
There may have been somewhat one a little bit more of a challenge this year I'm more people piling from home, but we think that there's just a large opportunity for us to continue to focus on our strategy of bringing folks into the category and bringing folks in too.
<unk> attack life, we're really proud of the progress we made this year with the 70% increase in customers and we do believe that we will continue to build on the tailwinds from this year.
Thank you so once you know bad.
Oh, sorry, but just wondering I would add the classical memory with Michelle just shared that the facts are always friendly right and when do you think about there's 86 million folks are in assisted category up to 20 billion dollar apparently this is valid against war sort a 40 year in transforming the category, we've not really even hit the inflection point of view of what's possible also just.
And reminder, that were in the early days apart Formigli assisted category.
Perfect. Thank you again, so much and and congrats again and hope everybody says well.
Great. Thank you Brad.
Thank you. Our next question comes on line of Ken Wong No Guggenheim Securities. Your line is open.
Great. Thank you for taking my question dose. The first question for you saw on.
In the past you mentioned ecommerce as being a top priority are you guys made the acquisition of trade gecko earlier.
Just wondering kind of where we are in terms of that particular strategy or anything else that needs to be tacked on here I just would love to get some color on kind of how you're budgeting that you know that that part of your business, especially with the shift to E. Commerce. So so evident this year.
Sure I'm 10, I hope you're doing well.
In terms of the the question around E. Commerce, you know the I think the place I would start is one of the company's five big boxes about being the center of small business growth with a particular focus on transforming omni channel commerce.
You know the biggest thing that we have found in in our follow me homes in the past that we've run this past year is for our customers is actually.
Quite easy to launch on a on a new channels, whether it's a at sea whether its Instagram, whether its Facebook Amazon the biggest challenge they how did they actually trope their growth, but because they really lose sight of which customers are coming from which channels the profitability the connect.
Into their inventory and ultimately fulfillment because it works thing for a small business.
Particularly are the ones that we serve is not being able to fulfill and order. So really our focus is to truly be agnostic open platform. That's a partner.
With the channels that are out there again the ones that I mentioned I also partner with those that provide you know web sites and also the pls providers like really focusing on the core of what matters most of our customers in our core competency, which is around helping customers. All our customers will then just.
Turning to profitability by channel connect against inventory as our acquisition of trade GETCO is I think a huge first stop and we'll share what we're launching at Investor day that really focuses on inventory in order management and allows our customers to really take control of the thing that right now they don't have control love to get them the comfort.
So then open up a across other channels and so will not only share what we are launching at Investor day, but will also reiterate that vision and where we're headed and what you can expect from us.
In the years to come but this is a really important first step given all the work that we've done in the last year ought to be positioned to go after the I would say the highest order problem that our customers.
Perfect.
Let me show a quick question for you up you know you gave us a rough sense of what the P.P.P. impact was on on revenue. Just wondering if you could maybe give us a sense of how that might have impacted margins and earnings just do we make sure that we don't go rattle through profitability that might be more onetime ish.
Thanks can yes, you know, we're really proud of the work that the team did utilizing our platform in our modern technology to be able to turn so quickly to provide $1.2 billion and access to P.P.T. loans for small business customers in such a rough.
Environment excellent margins I would say you know, we really do manage our margins at the company level and that's really how we think about this $30 million of revenue also I would tell you that given the environment I'm the tightening of credit that that we had done this was really more.
A trade off for the Quickbooks capital theme and really putting the majority of their focus on PPP versus extending credit through Quickbooks capital.
[noise]. Thank you Michelle.
Thank you. Your next question comes from a line of Alex Zukin of RBC. Your line is open.
Hi, This is Robert Simmons on her Alex.
So you kind of hinted at this but with the acquisition you talked about what else you need to do to deliver on your omni channel plans.
Ah, Yes, Robert sure you know, though I think the way you ought to think about it is when you put yourself in the shoes of other small business you know, there's a few things that they need to be able to do they and they gone there were the products may want to get set up on.
What we call the Mega channels again, it's it could be the Walmart dot com ATSI Amazon a Instagram.
They may want to be able to also have their own ops or offset off a they may I want to ensure that they have a pls provider to be able to transact with customers in a in a physical world. But then they also need to be able to manage all of their finances I need to understand the profitability of their customers.
Got to be connected the inventories are you can automatically remind them.
Got there about the run out of inventory into order more ads to be able to fulfill the orders you know on time, and so shipment and delivery on time, a and also ensuring that there are there were accounting is done right at their compliance and if they need access to money and loans that they have that that ability and in that context that making.
Sure you know when you think about our platform, we've really been positioned over the years to deliver for service based businesses.
And this is an area where you know we believe we have a REIT to went a little bit product base for product based businesses when it comes or financial compliance. So right now our initial focus is really just nailing water management and inventory management, especially critical.
To ensuring that our customers of the confidence that can fulfill orders actually understand their profitability. While we then establish you know partnerships beyond that with some of the channels that I mentioned that pls providers and even some of the the website build as we truly want to be an open agnostic platform aka focus on the problem is that matter most than we believe in open platform.
Is necessary to be able to ensure that customers have choice and how they choose to run their business. So initial focus is inventory in order management. This is really about rapid testing experimentation and scaling what what works well and that's the way we're thinking about it.
Got it great things that make sense and then.
Oh, what you've seen.
The retention so far I'm just the ski areas. It's only been my quote for we expect kind of have you seen it stabilize or improved on and what are you expecting going forward.
Yeah, we have you heard Michel talk too we have experienced really all of our key trends improve and retention specific to your question has improved from what we talked about last quarter. We do expect that it will be down approximately two points for the year, but we have seen an improvement over there.
The last quarter, and I think well actually I would say that you know being the sourcing sheets for our customers business has always been the case, but I think this endemic has actually been made us more relevance because the shift to online or whether its payments payroll accounting compliance.
Just become even more critical than it was four five months ago, and so that the overtime. They actually even in fact retention more so, but we expect to be down two points for the year and again the trends have improved.
Thank you very much.
The very welcome.
Thank you next question comes from Citi Kinda granting of Mizuho. Your line is open.
Thank you.
Congratulation on a great quarter or just one last you so someone on your big bets number to vote. The Mexican exports was like last fall.
Listen that public backslide involved.
During the question or Beatles, Kim if you're getting goes our life customer, although it's too hard to see a good sport, but could you shed what kind of them you know net promoter score or any kind of feedback dark your export start from those new customer dr. would be helpful.
Yes sure I'm good here for me city and thank you for your kind words.
So we're really proud of all the progress in Turbotax lives just as a as a reminder, you know what are the biggest things that we learned last years, we needed to really improve the first time experience in the first user experience for our customers wanting to make sure.
That they had really access to an expert ops throughout the offering and actually reminding them that they have access to an expert along the way and on the other side, making be experience just really dropped at easy for our experts, making sure that you don't have the finger tips of our of our experts or insight for our customers for the moment they engage.
What are some chat or through video that they can resolve the issue. Because this is really this is a digital platform and if the service offerings. So the expert place such a critical role.
We experience and I would tell you that across the board you know the metrics that we look at.
Our retention conversion a itself.
Trs product recommendations school for both the customer data using the platform and also do you actually because the happier. The expert is the more they feel like they can solve the customers problem. The higher in essence recommendations for did they give and then we also look at a efficiency are they effectively able to solve the customers problem.
And across the board across every metric its been off into the right and so we have a lot of confidence in the were better. This year than we were last year and I have every bit of confidence will be better a year from now but across all those key metrics, we significantly improved and so I would just expect our momentum.
And the kind of obsessive focus that our employees have on our customers to deliver better experiences both for our customers and far exports, but that's a little bit of a snapshot as to the progress that we've made up into the right on all the key metrics.
Oh, Thanks for the color and quick quick follow up on the crude or to be also.
Thats really surprising to see the 10 points exploration of new customer acquisition. So this is your food quarter of this friend and its impact I'm wondering what's driving dog new customer growth. There is for an older still below the corporate level, where do you get more people really the complexity of PPP or or any other.
But I go back would be helpful.
Yes, no one of the things that that we had seen and we're fortunate, but our big bets or or or the core of the shift which is where we're seeing more and more folks shift or virtual world, we're seeing more and more folks want to shift to online solutions and omni channel solutions, and then third is money matter more than.
However, whether your consumer self employed or small business and I think that the thing that we are experiencing a although to your good point that were not pre corporate level, yet <unk> levels, yet letting customers are seeing a bad.
Using our cloud offering gives them the ability to be able to engage with customers in the cloud and help them avoid interaction in the physical world higher usage of payments and payroll potentially you know overtime and frankly being compliant because a lot of customers realize if they weren't compliance it was hard for them to get access alone. So I think this in both.
<unk> has just.
We're seeing that shifted to the cloud and I think that's why we've seen an acceleration in our Ah acquisition compared to where we were just a quarter ago, although still below the people that levels.
Thank you so much person.
Very walk them be safe.
Thank you. My next question comes from Kirkman from Evercore ISI. Your line is open.
Oh, Thanks, very much a song I was just wonder if you could talk a little bit on the small business side, you're just how sensitive are customers to pricing changes right now given the economic backdrop and I guess, how does that influence your strategy around maybe some of your higher value products like QB alive and keep the advanced as you go into fiscal 21.
Just trying to get a sense on <unk>.
Does the macro dynamic I haven't influence on your strategy around that thanks.
Sure good to hear from you and hope you're safe and well you know, particularly in the the area that you asked the question, we're actually the low cost alternative both with cookbooks live and cookbooks. It back when you look at cookbooks advance no first of all this is one of the the teams that's just.
Innovating at a very rapid pace to ensure that our midmarket customers have all the capabilities that they need to be able to run their business or whether it's something we've bills or other apps that or partners build on our platform, but at a very disruptive price. So I would say in in some way cookbooks advances.
I'm, even more attractive than otherwise in this current environment, because where the low cost provider.
And I would say the same thing for cookbooks. You know lives. These are these are folks that ultimately comes out that I've been using a bookkeepers, an accountants and they're very dialed into what they'd been paying a and they really come to us because of the experience that they've had essentially what their bookkeepers anticalins, whereas we have.
You know a set of standards around what we expect in terms of experience that our bookkeepers need to deliver for our customers and so in that case, we also tend to be that well low cost provider and so we become even more.
I like how attractive in an environment like this so that's the way we think about pricing we believe that in these two areas.
We are actually probably more attractive choice than others.
Okay and then second question for me would be just in the SMB Air Serv area of your business any major changes in what you're seeing in terms either customer acquisition or retention rate. When you think about the U.S. versus just some years your smaller regions the UK.
International regions I was just wondering if you see real differences in from a geographic perspective. Thanks.
Sure absolutely you know from it from a geographic perspective, I would say the U.S. is probably a holding up the strongest probably next followed by Canada and then the UK, but I would say U.S. is held up the strongest and I think a lot of the just has to do with Uh huh.
That's the nature of how the health crisis is being managed and how open the economy is because all these small businesses that you know one comminuted across the world their passion about what they do and that's the way they are under their living but but with that said a U.S. has been the strong. This I of course from the trends perspective as you know her.
From a from Michelle we have seen across the board our trends improve and now stabilized they're not pre corporate levels, but I would say it you know solid improvement just in the last.
Three months as the economy has opened up a bit.
Thank you stay well.
Thank you very welcome.
Hey, if your next question comes from a line of Brent Thill of Jefferies. Your line is open.
Good afternoon insist on just following up on Curt's comments on SMB I guess, you see such a surge in the front office with CRM Wix number of the companies doing extremely well and I I think part of the logic. Many investors are following his dad.
Inevitably come you have to turn back to the back office to innovate and driving all with online traffic you're going to drive the back office as well on more on kind of the shape of the recovering.
Do you believe that that you can benefit from the surgery or seen in the front office that that that is an indication that it's good sign for for your SMB business going forward.
And maybe you could just highlight where you think the biggest opportunities are thank you.
Sure Brian Good to hear from you and again hope Youre safe and well you know first of all I would start with the point you made which is.
Exactly right at the end of the day, you know getting a store set up to be able to do business you have to be able to accept payments you have to do you are higher contractors or full time employees you have to use a payroll or.
Actually if you're a younger smaller business you need access to loans and so and then you need to make sure that your compliant and so that's where all of our.
Services come in and why they Ah why even in this environment as we looked at our services become even more critical to ensure a customer can.
We organize get paid on a run their business profitability. So with with you know that as a as contacts I think the second context I would just bring up is it.
It is remarkable how resilience our platform and business model lives and you saw what happened last quarter. When we when we talked about some of the trends and how you know the trends at kind of falling off given.
We shutdown the economy in the U.S. and how they have bounced back again, all still not pre cobot levels, but they bounced back and so really today I think the second part of your your question or the way we're thinking about the future is in context of what you heard from Michel you know if the economy continues on the track that it's on.
Gets the normalized levels in spring of 2021 as long as small businesses are are.
Able to to do business I think our platform is going to benefit so a lot of our performance because the platform is there's only of the business models resilience. It's more it's more the networks times like this when customers need our platform I think a lot of it will just depend on how the economy opens up a because we're in the cloud we update.
Abilities in the cloud and our customers.
Need our capabilities plus weren't agnostic platform. We believe the way you deliver for customers is to have partnerships with all these key players and I just think that advantages that are not well, but that's the way we think about it.
Great. Thank you.
Very welcome.
Thank you My next question come from a line of two flights from Morgan Stanley. Your question. Please.
Hi, This is Marc Benioff for T. play so thanks for taking my questions and congrats on the a strong results I just wanted to ask.
Yeah, [laughter] turbotax share with them. They ended the I like category was flat year over year compared to prior years.
Turbotax.
Gainshare. So what are you seeing in a competitive environment and just like the competitive intensity in the deal.
Following market.
Yeah very good question and it's actually we think about the category very differently now than we did you know four to five years ago and for US it's about the entire category, a filers and not just about the do it yourself a category because it just if I could refresh us on the.
Factored the do it yourself categories about 2 billion in town.
The assisted category is about 20 billion in town on of course, what we declared as Declara.
Stopping consumer finance is you know north of 55 million in time and so for US. What's most important is that the the share that we haven't do entire category and so we're very very pleased with the fact that our share of the entire categories up a one and a half a point and that is really how we measure of success.
That is really our our goal line.
Because when you think about the dollar share of the do it yourself category. We have the majority of the share we're focused on the assisted category, whether you know $20 billion of opportunity for us.
Got it that's really helpful. And then maybe one quick one just in terms of its been asked a couple of times was slightly differently is have you seen a change in kind of the profile of new Quickbooks subscribers up maybe post go live versus where you go there like for instance has there been uptick in kind of acquisitions with Quickbooks self employed.
Right and kind of if so like what kind of impacted that have on arps moving forward.
Thank you very much.
You're very welcome. So you know a couple of things I would say one is it is.
Inspirational and remarkable how resilience small businesses are and how they are looking to adjust how they can still serve their customers and I would just say that's.
The Hoover point, where you know if one door shop for them. They open up another door to figure out if there's a different way to serve their customers. So that's really important to recognize it as long as they can manage their cash flow, they're going to find other ways to be able to.
Serve their customers, what's really gets to that to the second point and that is I.
I think there there it's become very apparent one how meaningful and relevant we are in this environment to help our customers operate in the cloud you know if there was an elements all black and just managed through multiple different oh.
You know use paper and Penn and my bookkeeper to run my business I think people are now seeing or you know what I can be far more effective a invoicing getting paid instantly and being able to do payroll and ensure that accurate and my payroll, so I'm not paying penalties or ensuring that I'm organized so I understand my cash flow, especially.
He was a lot of the launches that we talked about with our cookbooks GAAP and cash flow plant or to be affected. So I think what you're seeing as I have an opportunity to be much more effective and efficient a with my cash flow using.
Into its platform in the cloud and the resiliency of our small business is just finding new and unique ways to do business is why were I think experience. The the bounced back a relative to last quarter again, reminding us though that they are.
Still lot at the peak other levels.
Thank you.
Very welcome.
Thank you want to next question comes from Scott Schneeberger of Oppenheimer. Your line is open.
Thanks, very much good afternoon, yeah. It was a a really strong quarter and consumer I'm curious kind of the high level question is how should we think about margin in that segment going forward I see was down about 100 bips year over year for the full year and I'm guessing if you could elaborate you've got some nice leverage and turbotax.
Lives staffing I'm getting more efficient there and clearly you've got good volume growth growth in revenue per return growth, but I know you spent a little higher marketing in the in the fiscal fourth quarter, just due to the change in the in the year and then and then a lot more free file alliance clients. This year you addressed.
A percentage of folks that you sort of free so just if you could address how we would think about that going longer term and maybe some of the puts and takes in the quarter, thanks or in the year rather sharp.
Yep sure Scott good to hear from you hope you're well you know I had was focused on the fact that we truly manage investments in margins a bit company level, you know what really matters. Most is that we delivered 13% revenue a 17% operating income both GAAP and non cap and.
Yes, we were 16% and so our leverage is more and more at the company level, because we are truly more and more building.
Services across our platform at the company level until margin levels, moving up or down a point I wouldn't get overly excited about it that segment level because of the fact that said, we're making our investment choices. The way we're running the company is more and more as a platform across the company's I would really look at company level performance and now.
Just like segment level performance because of how we're making our investment choices and we're getting a lot of leverage because of the way we're doing it.
Okay. Thanks, and on a follow up is kind of a two parter and I'm not sure how much you're going to address but if you're mean a tax competitor mentioned that they'd probably leave or almost Katrina. We would lead the free file alliance going forward I'm just curious your take on that program and obviously you dress.
The free customers you serve this year and then also with which with credit Karma. There are a tax customers in that just any comments about above that and the into deal that you could comment on functions huh.
Sure absolutely. So let me just first share with you you know the objectives that we had that we know shared in previous years. When it comes to taxes, one is where big believer involuntary packs to.
Big believer that those that are you know deserving whether its income levels and military and that we want to make sure that they can get their taxes, Don for free and in some cases, it could be seen philosophy and last but not least as we always want to enhance our reputation. So that's kind of one bucket of objectives to ought to think about the second.
Is our strategy and it's very much you know intertwined when we talk about the notion of expanding our leading the do it yourself category transforming the assisted category disrupting consumer finance a core part of our strategy is actually for those that deserve it give them the ability to do their taxes for free because overtime.
Hi, I'm, a they can not only grow with us but also we can solve their problems beyond tax. So that's the way we think about our strategy. That's the way we think about our innovation and we are very dedicated.
Helping those Ah that that deserve it most to get their taxes done for free. So that's the that's those are the things that ultimately inform how we think about.
Okay.
Thanks.
Thank you. Our next question comes from Sterling Auty J.P. Morgan Your line is open.
Yeah. Thanks, Hi, guys I Wonder if you could remind us what portion of the Quickbooks users also are using pay roll at this point in other words, what visibility do you have in terms of you know the potential of impending business closures and when that kind of headwind Mike peak in starts subside for you.
Yeah, certainly thank you for the <unk>. The question you know first of all we we don't break out you know what's the percentage of our base is that a that use as a payroll, but what I would say there is no. Some of the the stops so I'll take you back with some of the stops that no Michelle I shared which is.
We've actually seen nice bounce back of companies in essence running payroll it still below pico that levels, but we've seen a nice bounce back and they they have less employees, a but there's a number of companies running payroll has bounced back nicely I think that's one indication that we look out I think the broad.
Her indication that we looked at Lilly cash flow and a and when we look at across our base and remember 70% of our base of service based businesses, whether it's real estate, you know and skating bookkeeping computer and software we look across who we serve them. We also look by state which is very good.
No we're seeing a nice bounce back in places like North Carolina, Georgia in New Jersey, a and Arizona, but on the other hand states that are recovering slower our New York, California, I missed again just to give a couple of examples I mean, we look across industries and across those those states. This is based on our own Alice.
This those that have connected to a quickbooks their bank accounts you know, we see their bank averages could range from being down 10 to up towards 20%. So what we really monitor is cash flow because that is ultimately the biggest indication as to whether or not but they're gonna be available that would make it through these times and.
And that is really what what were wasn't form some of the indicators that you have heard Michelle I talk to it.
And last but not lose we expect our retention to be down about two points this year given.
Some of what we experience with our with our customers being shutdown.
Understood. Thank you so much.
You're very welcome.
Thank you. Our next question comes from a line of Jennifer Lowe of Zubia. Your question. Please.
Thank you I just wanted to touch quickly on Turbotax lives and you gave a stat earlier about the very strong adoption you saw Kevin talked five within customer that converted off of pro this tax season to see them is obviously a very unusual.
When you do have won all around it but I'm curious if that uptake or that experience. If I said sort of this time waiting between increased retention of existing customers and not having them go to pro versus pulling customers away from pro did they get any conviction that maybe it's it's you know there's more opportunity to put a marketing push.
Hi, I'm getting customers away from pro and onto Turbotax lives and maybe you would have thought before the season.
Yeah, Jim. Thank you for your question and hope, you're well and unsafe you know we have never lacks conviction around turbotax lives or you know we we believe that we are just at the beginning of a really creating a platform that goes viral because the more piece.
All that do their taxes.
Digitally with help coming to them in any sprained that they need it whether it's in their home or in their office, the more they're going to tell others and a and the more this will go viral and I think as I've shared before based on the research and work that we've done out of the 86 million folks that use in assisted method.
About 70 million for so are willing to to switch. So our focus has been experimenting learning looking at our results. Both in terms of how we raise awareness how we bring folks into consideration and then the experience we deliver on the platform and I would just tell you that.
A year later, where a lot better than we were this time last year, particularly.
This extend the tax season, albeit we all wish they would have that ended in April and given that.
The tax going to put on all employees, we were able to actually experiments for another three months and so we ran a lot of passed on our platform and both in terms of how to raise awareness, but also had a really nailed experience when customers come in and as I mentioned earlier, all of our metrics conversion and retention Prs for both customers and.
Our experts will all up and sort of right. So based on what we learned this year not just the results, but more importantly, the learnings that actually gives us a lot more conviction, what we need to do for this coming tax season, and even beyond them. So we feel blessed with the insights and learnings and we will absolutely be leaning in but not.
Just because of our results we've had a lot of condition, but just because of our learnings that allows us to be clear in terms of where we point our our innovation.
Great. Thank you.
You're very welcome.
Thank you. Your next question comes from Michael Millman of Millman Research. Your line is open.
Thank you show.
Do you believe that [laughter].
[laughter], assuming businesses have a tough time going forward the virus continues.
Many of those.
Turn to being self employed.
Correct.
Uh huh.
Your numbers will actually increase.
Also a heart attacks.
Do you believe that.
People who've done their taxes at home this year.
Unlikely to switch back if indeed.
Physically able to switch back.
Yes, Michael Thank you for your question and I also hope you are safe and well let me let me hit on two things I mean, I think one what I would say based on.
History, we know that or you know we are a global entrepreneurs.
And sometimes it's out of passion for the idea that you have sometimes it's because you need to figure out away to create income and so at the end of the day. We don't you know we don't build our business on hoping that there will be a lot of SMB a new starts.
But certainly an environment like this or could be.
The a trigger for new self employed and small businesses and we certainly want to be there offer them that that moment. They have an idea that patch to opt to pursue.
Something and as you heard from Michel early or just a lot of it depends on just how we see the health crisis play out and therefore the impact on the on the economy.
On the tax side in your question about the experience the folks that may have gotten them, whether or not they would be unlikely to switch back to the old method. You know the thing that we have learned over the years.
But the first year that we have gotten a lot of our customers from the assisted segment. It all comes down to the experience a and the confidence that they have in dingler taxes right. The confidence they have in getting their maximum refined and we feel good about the experience that we delivered this year for customers based on.
Our product recommendations scores and so.
But by the we also learned a lot in terms of what we need to do to continue to improve our platform. So a you know we would hope that our retention rates play out next year the way they have in previous years, but it's primarily because of the type of experience that said that we deliver and of course. This time next year will be far better in terms of the experiences that we will have delivered them.
We are even now given our rapid testing and learning mindset. So that's the way I would I'm thinking about your two questions.
Thank you appreciate it.
Yeah.
Right.
Thank you you too.
Thank you. My next question comes from the line of Michael Turits of Wells Fargo. Your line is open.
Hey, there thanks good afternoon.
We've touched on margin a few times, but we were impressed are able to actually expand margin. This year given the extended tax filing season, even with the P.P.P. offset <unk> was was that within your own internal expectations given the spill over on the truck side and is there any additional color you cut out around whether that improvement could prove more durable as you continue to drive towards delivering higher.
All you want both segments. Thanks.
Yeah, Michael Thank you for your your question you know first of all I would start with you know the principles that Michelle talked about earlier and I'll just touch on a few of them as a starting point to answer your question because it is how we run the company and ultimately our principles or we want to grow revenue double digits, we want to grow operating income faster than revenue and we want to make sure.
That you know, we get 15% return on our investments and I'm sure that we solve our customers' most important problems.
In that context, and you've heard Michele and I talk about it in the last year that you know, we're we're really just continued to be at the beginning of our platform journey.
And that journey really means that you know we're going to continue to get better at building services ones. So that they can be reuse across the company you heard some of our metrics around 50% increase in the number of AI models. We deployed this year, our velocity being up three X compared to last year. That's currently innovation, but that's all also.
Efficiency and effectiveness and although we don't set out a specific goal of our increasing operating margins because we want to make sure that we can simply deliver against the principle of operating income going faster than revenue I think the the result of becoming more effective and efficient or could suggest that overtime our operating margin.
Well it will extend and as you said yourself, we did actually spend more money in tax this year because of the extended season. It was both in marketing and customer success, because we wanted to be there for our customers because in essence, we had you know two tax season than one so we actually did spend more money and as you saw we expanded operating margins because I think we're starting to see the leverage of our platform.
And that was not by accident.
That's great. Thanks, nice nice close to the or.
Thank you very much.
Thank you want next question comes from the line of Josh Beck of Keybanc. Your line is open.
Thank you for a squeezing me in you know I wanted to ask about Quickbooks cash is it seems like a interesting extension of your services and really gets you a little bit more into baking in debit card. So it's probably a little too early you know I'm guessing that.
Talk about the adoption curves, but you know would love to hear just kind of your ambitions for this for this product.
You know where it could go over a over multiyear period.
Yes. Thank you for your question, Josh and Hope you are safe and well you know the first of all you set up. This is we're very very early we've been working on this but for some time, but we're very early on but we're very excited and I wouldn't think about cookbooks gosh. The service I I would think about it.
Very disruptive way for achieving this notion of a truly being the source of choose for.
Customers business I'm, just thinking about it in very simple terms of a place where you can we see even send money and so when you do work for a customer and UN boys time, it automatically gets dumped into your books gosh, I count where you can.
And I, sometimes you know interest about Ah that's is that you're getting on your money a place that you can just pay your employees right out of your cookbooks cash account a place where you can buy inventory off from your cookbooks gosh I count a place where you can.
Get access to capital from your cookbooks gosh account and by the while you're doing all that because it's all happening in your and your Quickbooks cash I count the accounting is actually getting done for you and so you don't actually have to you about a bunch of reconciliation that's really what we are.
Focused on on really creating in terms of a benefit for our customers are something that customers won't tell you that they need this but when you really listen to what gets under way. It's just kind of have something that everything gets done for me and that's really the intent of cookbooks cash. We're just excited with the launch we're excited to learn.
I said justice attached and just scale this very fast and let's just something we're going to talk about that at our virtual Gallery walk at Investor day in <unk> in September so.
So the hopefully out in tysons, either sell off should be fun.
Yeah.
Great Great pitch there for the day, so excited about that and.
You know just just quickly on live the 70% grow nearly 70% and customers seems like a really good result, so I'm. Just curious was that ahead of plan.
And you know anything that stood out to there and maybe how we could think about the retention of live customers from the prior season versus the kind of net new that you've got this season.
Yeah, you know I would tell you that its the as condition would hold for until it we always that very very ambitious goals for ourselves for the near term and for the long term because it's a really just forces us to take bigger swings far far customer so I won't get into how we did versus our internal goals, but what I would tell you.
We feel truly terrific about the results because literally on every dimension that you look at a new customers growing 70%, 70% coming from the assisted segment conversion being up year over year retention being up year over year, PR ratcheting up our customers Prs being up our experts are experts actually being.
Very efficient delivering the 60 million hours that they engage with our customers. We're really happy with the end to end results because it was truly and then experienced as a team delivered and we learned that time, we learned what what is not working we learn how to be more active we learn how to deploy our.
<unk> AI models, even more effectively so that we can have the insights at the finger tips of our experts and they can deliver for customers. There was a truly a digital service experience and so we're excited for next year and the next five years ago.
[noise] really helpful. So they just so much.
Very welcome.
Thank you. My next question comes from a line of Kartik Mehta of North Coast Research. Your line is open.
[laughter] Hassan interested in your thoughts on Cubo, you know I think you and Michelle talked about price increases.
Obviously, the they're going to be a little bit more difficult in the upcoming fiscal year and I'm wondering [laughter] at what point you feel comfortable.
Increasing prices on the Cubo skews.
Yes card to a good to hear your voice and.
I Hope you are also keeping well my friend, So I think the over a point I would say is we were just obsessively focused on our customers. When do you think about what our teams that in the last 12 weeks a with TPP a with the go find me platform. That's one did you know $37 million with Ah.
Our instant deposit being three through July I, just to name a few extending the deferred payment of eclipses capital of customers. Those that were you really struggling and needed to help.
We will make the right choice for our customers and ultimately we want to make sure that the value equation makes sense based on the rapid progress of our innovation. The fact that you know our speed of innovation is up three X versus last year.
So we always want to make sure that value equation makes sense, but we're just going to.
See you know how the house prices plays out how the economy plays out and ER and make our pricing decisions based on the principles that we have a at the right time and this isn't the time to share when that is because we really want to see you know how things play out, but that's principally the way we think about it.
And then just as opposed to Sun would you know in the past you've always had capabilities to cubo, making a product better and better you know if the economy doesn't allow for a price increase would you continue to add capabilities and try to capture the value at some later point.
Absolutely and in fact, I would tell you that a you know we played a long game here when it comes to our R&D investments and as I mentioned earlier I think we're just picking up momentum truly operating as a as a platform company and you know the innovation that we've delivered this year was just you know they've got accelerated from just see.
Even a year ago and and by the way that's been the trend we've been on as a company for the last 37 years and so we're actually we use opportunities like this to accelerate innovation and become much more effective because we we know one day, we're going to get the value for our customers and for shareholder So short answer for the long answer I should.
Say it absolutely yes.
I appreciate it thank you.
You're very welcome stay safe.
Thank you our next question comes from.
I agree about Oh Stifel. Your line is open.
Okay, great. Thanks, very much and just following up on that last line of questioning the song from a high level as you add more product to the Quickbooks platform. How do you decide what should be bundled and what should be charged for.
Yes, Hi, Brad Hope, you're well, let's say a you know ultimately for test that we run a it's very similar to or to what we do a in turbotax and across the life platform.
We ended a day or two.
It comes down to.
[noise] understanding the benefit that you are delivering and whether or not a customer is willing to pay for it up but we also think about a relative to the impact on retention in the long term and so based on those in essence levers that informs the things that we test inclusive of you know.
Even has to come where we may choose to have accounting be free, but then charge for for services. So it really comes down to the experiments that we run a and we left the data help inform strategically the choices that we might come up primarily the way we've operated for years across the company.
Great. Thanks very much.
That's a very welcome.
Thank you, ladies and gentlemen, I'm not showing any further questions would you like to close with any additional remarks.
Yes, I will just wanted to thank everyone for your time and all the great questions today and wanted just close by a once again thinking our employees our customers and partners, we would not be where we are without the or do incredible stakeholders that we serve and we look forward to seeing all of you at our virtual Investor day in.
September until then be safe and be well.
Ladies and gentlemen, thank you for participating this concludes today's conference call.
[noise].