Q2 2025 Intuit Inc Earnings Call

February 25, 2025

My name is Angela and I will be your conference operator at this time I would like to welcome everyone to Intuit's second quarter fiscal year 2025 conference call.

Kim Watkins: Good afternoon. My name is Angela and I will be your conference operator at this time. I would like to welcome everyone to Intuit's second quarter fiscal year 2025 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 would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star two. With that, I will now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations.

Operator: Good afternoon. My name is Angela and I will be your conference operator at this time. I would like to welcome everyone to Intuit's second quarter fiscal year 2025 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 would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star two. With that, I will now turn the call over to Kim Watkins, Intuit's Vice President of Investor Relations. Ms. Watkins?

All lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer period.

If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad.

If you would like to withdraw your question Press Star two.

With that I will now turn the call over to Kim Watkins Intuit's, Vice President of Investor Relations Ms. Watkins.

Sandeep Aujla: Ms. Watkins?

Kim Watkins: Thanks Angela.

Kim Watkins: Thanks, Angela. Good afternoon and welcome to Intuit's second quarter fiscal 2025 conference call. I'm here with Intuit CEO Sasan Goodarzi and our CFO Sandeep Aujla. Before we start, I'd like to remind everyone that our remarks will include forward looking statements. There are a number of factors that could cause Intuit's results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2024, and our other SEC filings. All of those documents are available on the investor relations page of Intuit's website at intuit.com. We assume no obligation to update any forward looking statement. Some of the numbers in these remarks are presented on a non-GAAP basis. We reconciled the comparable GAAP and non-GAAP numbers in today's press release.

Speaker Change: Afternoon, and welcome to Intuit's second quarter fiscal 2025 conference call I'm here with Intuit CEO Hassan good RV and Rcs CFO Sandeep <unk>.

Speaker Change: Before we start I'd like to remind everyone that our remarks will include forward looking statements.

Speaker Change: There are a number of factors that could cause intuit's results to differ materially from our expectations.

Speaker Change: You can learn more about these risks in the press release, we issued earlier this afternoon, our Form 10-K for fiscal 2024, and our other SEC filings.

All of those documents are available on the Investor Relations page of Intuit's website at Intuit Dot com.

Speaker Change: We assume no obligation to update any forward looking statement.

Speaker Change: 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 today's press release.

Speaker Change: Unless otherwise noted all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to worldwide business metrics.

Kim Watkins: Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends. With that, I'll turn the call over to Sasan.

Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends. With that, I'll turn the call over to Sasan.

Speaker Change: A copy of our prepared remarks, and supplemental financial information will be available on our website. After this call ends with that I'll turn the call over to <unk>.

Speaker Change: Thanks, Kim and thanks to all of you for joining US today, we delivered very strong results in Q2 with revenue growth of 17% and we're off to a great start contacts we have strong momentum this year as we execute our global AI driven expert platform strategy powering prosperity for consumers and businesses, we are confident in delivering.

Sasan Goodarzi: Great. Thanks, Kim. And thanks to all of you for joining us today. We delivered very strong results in Q2 with revenue growth of 17%. We're off to a great start in tax. We have strong momentum this year as we execute our global AI-driven expert platform strategy powering prosperity for consumers and businesses. We are confident in delivering double-digit revenue growth and expanding margin this year. We're reiterating our full-year guidance today. I will focus on three areas: revolutionizing speed to benefit by delivering done-for-you experiences with expertise, winning in tax, and mid-market. We're making strong progress across our platform with our data and AI investments to deliver done-for-you experiences with AI-powered human expertise.

Speaker Change: Double digit revenue growth and expanding margin this year and we are reiterating our full year guidance.

Speaker Change: Today, I will focus on three areas.

Speaker Change: <unk> speed to benefit by delivering done for your experiences with expertise.

Speaker Change: Winning in tax and the mid market.

Speaker Change: We're making strong progress across our platform with our data and AI investments to deliver done for your experiences with AI powered human expertise.

Speaker Change: Our focus is on automating tasks and workflows and entire functions connecting customers to one of our more than 12000 AI powered human experts for the last mile or to complete all of the work.

Sasan Goodarzi: Our focus is on automating tasks, end-to-end workflows, and entire functions connecting customers to one of our more than 12,000 AI-powered human experts for the last mile or to complete all of the work. This is Intuit Assist, the combination of AI and AI-powered human experts digitizing everything for customers and fueling their success. Let me share one example to demonstrate our progress on our business platform. Intuit Assist delivers Done for you experiences automating workflows using AI agents. It automatically turns emails, electronic documents, and handwritten notes into estimates, invoices, or bills while doing the accounting in the background. It spots potential cash flow shortages in real time and suggests personalized solutions like applying for a line of credit through QuickBooks Capital.

Our focus is on automating tasks, end-to-end workflows, and entire functions connecting customers to one of our more than 12,000 AI-powered human experts for the last mile or to complete all of the work. This is Intuit Assist, the combination of AI and AI-powered human experts digitizing everything for customers and fueling their success. Let me share one example to demonstrate our progress on our business platform. Intuit Assist delivers Done for you experiences automating workflows using AI agents. It automatically turns emails, electronic documents, and handwritten notes into estimates, invoices, or bills while doing the accounting in the background. It spots potential cash flow shortages in real time and suggests personalized solutions like applying for a line of credit through QuickBooks Capital.

Speaker Change: This is intuit assist the combination of AI and AI powered human experts digitizing everything for customers and fueling their success.

Speaker Change: Let me share one example to demonstrate our progress.

Speaker Change: On our business platform Intuit assist delivers done for your experiences automating workflows using AI agents.

Speaker Change: It automatically turns emails electronic documents and handwritten notes into estimates invoices or bill while doing the accounting in the background its spots potential cash flow shortages in real time and suggest personalized solutions like applying for a line of credit through Quickbooks capital.

Speaker Change: With these capabilities, we're seeing a 10% higher payment conversion rate on overdue invoices when customers use AI generated invoice reminder versus those adult.

Sasan Goodarzi: With these capabilities, we're seeing a 10% higher payment conversion rate on overdue invoices when customers use AI-generated invoice reminders versus those that don't. We're also connecting customers to our AI-powered experts at their point of need through QuickBooks Live, up 2.5x in Q2, with 20-point higher ecosystem attach rate than the rest of the QBO base. Repeat engagement with our Done-for-you invoicing experience continues to grow and has increased more than 50% since November. As we continue to scale these experiences, we're encouraged by new customers converting and adoption of platform offerings such as Payments and QuickBooks Live. This is Intuit Assist working at scale, fueling the success of our customers. Turning to tax, we're off to a great start.

With these capabilities, we're seeing a 10% higher payment conversion rate on overdue invoices when customers use AI-generated invoice reminders versus those that don't. We're also connecting customers to our AI-powered experts at their point of need through QuickBooks Live, up 2.5x in Q2, with 20-point higher ecosystem attach rate than the rest of the QBO base. Repeat engagement with our Done-for-you invoicing experience continues to grow and has increased more than 50% since November. As we continue to scale these experiences, we're encouraged by new customers converting and adoption of platform offerings such as Payments and QuickBooks Live. This is Intuit Assist working at scale, fueling the success of our customers. Turning to tax, we're off to a great start.

Speaker Change: We're also connecting customers to our AI powered experts at their point of need through Quickbooks live up two and a half ex in Q2 with 20 point higher ecosystem attach rate than the rest of the <unk> base.

Speaker Change: Repeat engagement with our done for you invoicing experience continues to grow and has increased more than 50% since November.

Speaker Change: As we continue to scale. These experiences we're encouraged by new customers converting and adoption of platform offerings, such as payments and Quickbooks live.

Speaker Change: This is intuit assists working at scale fueling the success of our customers.

Speaker Change: Turning to tax we're off to a great start.

Speaker Change: Our strategy is to win is an AI driven expert platform by delivering the best experience speed, the money and best price for customers.

Sasan Goodarzi: Our strategy is to win as an AI-driven expert platform by delivering the best experience, speed to money, and best price for customers. As one consumer platform with a seamless customer experience across TurboTax and Credit Karma, we have incredible scale to win in the DIY and Assisted categories. We've made significant progress with Intuit Assist which is fueled by our data services and AI investments delivering Done for you tax experiences. We have transformed the shopping experience, helping guide customers to the offering that is best for them, which is driving higher starts for those that choose to do their own taxes. We're delivering an AI-driven highly personalized product experience. This includes easy data in from over 200 partners now covering 90% of our customers' most common tax documents up from 68% last year.

Our strategy is to win as an AI-driven expert platform by delivering the best experience, speed to money, and best price for customers. As one consumer platform with a seamless customer experience across TurboTax and Credit Karma, we have incredible scale to win in the DIY and Assisted categories. We've made significant progress with Intuit Assist which is fueled by our data services and AI investments delivering Done for you tax experiences. We have transformed the shopping experience, helping guide customers to the offering that is best for them, which is driving higher starts for those that choose to do their own taxes. We're delivering an AI-driven highly personalized product experience. This includes easy data in from over 200 partners now covering 90% of our customers' most common tax documents up from 68% last year.

Speaker Change: As one consumer platform with a seamless customer experience across turbotax and credit Karma, we have incredible scale to win in the DIY and assisted category.

Speaker Change: We've made significant progress with Intuit assist which is fueled by our data data services and AI investments delivering done for you tax experiences we have transformed the shopping experience, helping guide customers to the offering that is best for them, which is driving higher starts.

Speaker Change: For those that choose to do their own taxes, we're delivering an AI driven highly personalized product experience. This includes easy data in from over 200 partners now covering 90% of our customers. Most most common tax documents up from 68% last year.

Speaker Change: And with the intelligent application of data to personalize navigation customers can complete their taxes more quickly with higher levels of confidence.

Sasan Goodarzi: With the intelligent application of data to personalize navigation, customers can complete their taxes more quickly with higher levels of confidence. When customers choose us to do their taxes for them, we match them with the best expert on our AI-driven expert platform within seconds and share the expert's qualifications while automatically uploading the customer's data, making the first interaction a wow experience: an AI-powered human expert that completes the customer's return in less than two hours, offering proactive and personalized assistance, and providing the opportunity for customers to access their money immediately, all the while on the go or in the comfort of their home. The experience is resonating, and the TurboTax Live Full Service has a product recommendation score of 84 season to date, one of the highest at Intuit.

With the intelligent application of data to personalize navigation, customers can complete their taxes more quickly with higher levels of confidence. When customers choose us to do their taxes for them, we match them with the best expert on our AI-driven expert platform within seconds and share the expert's qualifications while automatically uploading the customer's data, making the first interaction a wow experience: an AI-powered human expert that completes the customer's return in less than two hours, offering proactive and personalized assistance, and providing the opportunity for customers to access their money immediately, all the while on the go or in the comfort of their home. The experience is resonating, and the TurboTax Live Full Service has a product recommendation score of 84 season to date, one of the highest at Intuit.

Speaker Change: When customers choose us to do their taxes for them, we match them with the best expert on our AI driven expert platform within seconds and share the experts qualifications, while automatically uploading the customers' data, making the first interaction a wow experience.

Speaker Change: And AI powered human expert that completes the customers return in less than two hours offering proactive and personalized assistance and providing the opportunity for customers to access their money immediately all the while on the go or in the comfort of their home.

Speaker Change: The experience is resonating in the Turbotax live full service has a product recommendation score of 84 season to date, one of the highest at Intuit.

Speaker Change: This is an unmatched experience at scale delivering delight and speed the money at the best price with the scale of our data and AI capabilities intuitive assists the control tower automating tasks and workflows with human experts engaging where needed to deliver done for your experiences for our customers.

Sasan Goodarzi: This is an unmatched experience at scale, delivering delight and speed to money at the best price with the scale of our data and AI capabilities. Intuit Assist is the control tower automating tasks and workflows with human experts engaging where needed to deliver done-for-you experiences for our customers. Let's shift to our durable go-to-market approach. We have reinvented our marketing campaigns focused on experience, speed to money, and price. We've strengthened our overall AI-driven personalized lineup and monetization capabilities. We are seeing great traction early in the season in DIY across simple and complex customers with strong monetization driven by benefits such as early access to refunds and AI-powered human experts in the assisted category. With the significant improvement in experience, speed to money, and our beat your price campaign, our early full-service funnel is strong.

This is an unmatched experience at scale, delivering delight and speed to money at the best price with the scale of our data and AI capabilities. Intuit Assist is the control tower automating tasks and workflows with human experts engaging where needed to deliver done-for-you experiences for our customers. Let's shift to our durable go-to-market approach. We have reinvented our marketing campaigns focused on experience, speed to money, and price. We've strengthened our overall AI-driven personalized lineup and monetization capabilities. We are seeing great traction early in the season in DIY across simple and complex customers with strong monetization driven by benefits such as early access to refunds and AI-powered human experts in the assisted category. With the significant improvement in experience, speed to money, and our beat your price campaign, our early full-service funnel is strong.

Speaker Change: Let's shift to our durable go to market approach, we have reinvented, our marketing campaigns focused on experience speed the money and price.

Speaker Change: We've strengthened our overall AI driven personalized lineup and monetization capabilities.

Speaker Change: We are seeing great traction early in the season in DIY across simple and complex customers with strong monetization driven by benefits such as early access to refunds and AI powered human expert.

Speaker Change: In the assisted category with the significant improvement in experienced speed the money and our beat your price campaign. Our early foresee a full service funnel is strong. This is driven by marketing that started in the fall and improvements in local search for those looking for a pro near them we.

Sasan Goodarzi: This is driven by marketing that started in the fall and improvements in local search for those looking for a pro near them. We estimate that our local experts in 130+ designated market areas will give us access to approximately 80% of the nationwide assisted filers, and we found that filers are historically 5x more likely to convert when given a local option. We are also seeing more than 3x higher starts on the Credit Karma platform driven by an increase in availability of seamless zero-click login to TurboTax from 5% last season to 70% this season. In summary, we're off to a strong start in tax. We're seeing strong growth across simple, and more complex returns as the season progresses and strong overall average revenue per filer. We're also pleased with the power of one consumer platform given the seamless experiences across TurboTax and Credit Karma.

This is driven by marketing that started in the fall and improvements in local search for those looking for a pro near them. We estimate that our local experts in 130+ designated market areas will give us access to approximately 80% of the nationwide assisted filers, and we found that filers are historically 5x more likely to convert when given a local option. We are also seeing more than 3x higher starts on the Credit Karma platform driven by an increase in availability of seamless zero-click login to TurboTax from 5% last season to 70% this season. In summary, we're off to a strong start in tax. We're seeing strong growth across simple, and more complex returns as the season progresses and strong overall average revenue per filer. We're also pleased with the power of one consumer platform given the seamless experiences across TurboTax and Credit Karma.

Speaker Change: We estimate that our local experts in 130, plus designated market areas will give us access to approximately 80% of the nationwide assisted filers and we've found that buyers are historically five X more likely to convert when given a local option.

Speaker Change: We are also seeing more than three X higher starts on the credit Karma platform driven by an increase in availability of seamless zero click log in the turbotax from 5% last season to 70% this season.

Speaker Change: In summary, we're off to a strong start in tax we're seeing strong growth across simple and more complex returns of the season progresses and strong overall average revenue for upper pilot. We're also pleased with the power of one consumer platform given the seamless experiences across turbotax and credit Karma.

Speaker Change: Let me now turn to the business platform and the progress, we're making serving mid market customers, which represent an 89 billion town.

Sasan Goodarzi: Let me now turn to the business platform and the progress we're making serving mid-market customers, which represent an $89 billion TAM. We are focused on winning as an AI-driven expert platform to fuel the success of customers with QBO Advanced, Intuit Enterprise Suite, and our ecosystem of services. Our go-to-market and product investments are fueling accelerated progress with the QBO Advanced platform. We are delivering strong ARPC across our broader ecosystem of services with payroll and payments penetration exceeding QBO Core by 12 points and 9 points, respectively, at the end of the quarter. With Intuit Enterprise Suite, we are seeing growing momentum week to week. This includes the number of contracts we signed in January, which are up 2x versus November.

Let me now turn to the business platform and the progress we're making serving mid-market customers, which represent an $89 billion TAM. We are focused on winning as an AI-driven expert platform to fuel the success of customers with QBO Advanced, Intuit Enterprise Suite, and our ecosystem of services. Our go-to-market and product investments are fueling accelerated progress with the QBO Advanced platform. We are delivering strong ARPC across our broader ecosystem of services with payroll and payments penetration exceeding QBO Core by 12 points and 9 points, respectively, at the end of the quarter. With Intuit Enterprise Suite, we are seeing growing momentum week to week. This includes the number of contracts we signed in January, which are up 2x versus November.

Speaker Change: We are focused on winning as an AI driven expert platform to fuel the success of customers with <unk> advanced Intuit enterprise suite and our ecosystem of services.

Speaker Change: Our go to market and product investments are fueling accelerated progress.

Speaker Change: With the <unk> advanced platform, we are delivering strong RPC across our broader ecosystem of services with payroll and payments penetration exceeding <unk> core by 12 points and nine points, respectively at the end of the quarter.

Speaker Change: With Intuit Enterprise suite, we're seeing growing momentum week to week. This includes the number of contracts. We signed in January which are up to X versus November.

Speaker Change: Ias is resonating with larger businesses and accountants across our ecosystem, particularly those with over $10 million in revenue where win rates are trending nearly <unk> higher versus smaller customers.

Sasan Goodarzi: IES is resonating with larger businesses and accountants across our ecosystem, particularly those with over $10 million in revenue when win rates are trending nearly 2x higher versus smaller customers, and the efficiency of our sales funnel continues to improve. With sales productivity up more than 60% over the last two months, we are winning because of the valuable benefits of our platform, ease of adoption, price, and total cost of ownership. With IES we're able to boost customers' productivity by saving them time and providing deeper insights across the platform to fuel their growth. We are seeing traction with mid-market customers extending across multiple industries including construction, IT services, legal services, management consulting, finance, and insurance. I'll share two examples that highlight our excitement in fueling customer success and Intuit's growth.

IES is resonating with larger businesses and accountants across our ecosystem, particularly those with over $10 million in revenue when win rates are trending nearly 2x higher versus smaller customers, and the efficiency of our sales funnel continues to improve. With sales productivity up more than 60% over the last two months, we are winning because of the valuable benefits of our platform, ease of adoption, price, and total cost of ownership. With IES we're able to boost customers' productivity by saving them time and providing deeper insights across the platform to fuel their growth. We are seeing traction with mid-market customers extending across multiple industries including construction, IT services, legal services, management consulting, finance, and insurance. I'll share two examples that highlight our excitement in fueling customer success and Intuit's growth.

Speaker Change: And the efficiency of our sales funnel continues to improve with sales productivity up more than 60% over the last few months.

Speaker Change: We are winning because of the valuable benefits of our platform ease of adoption price and total cost of ownership.

Speaker Change: With ies were able to boost customers' productivity by saving them time, and providing deeper insights across the platform fueled our growth.

Speaker Change: We are seeing traction with mid market customers extending across multiple industries, including construction.

Speaker Change: Services legal services management consulting finance and insurance I'll share two examples that highlight our excitement and fueling customer success and into the growth.

Speaker Change: We recently signed a financial services firm with five entities that chose <unk> over other competing solutions to optimize its financial operations marketing and sales with AI. All in one place. The firm is using mail chimp and integral part of Ias to optimize sales and marketing by leveraging the insights from dimensional ripped.

Sasan Goodarzi: We recently signed a financial services firm with five entities that chose IES over other competing solutions to optimize its financial operations, marketing and sales with AI all in one place. The firm is using Mailchimp, an integral part of IES, to optimize sales and marketing by leveraging the insights from dimensional reporting to assess product mix and view profitability by product type. The marketing and sales teams tell us they are obsessed with the insights, which enable them to get most out of Mailchimp with more targeted customer engagement to fuel their growth. We also signed a deal with a large professional services and accounting firm which serves clients across 13 industries including construction, dental, government contracting, real estate, and technology. This firm was looking to standardize solutions and consolidate across vendors, and our disruptive price and ease of use was key to their purchasing decision.

We recently signed a financial services firm with five entities that chose IES over other competing solutions to optimize its financial operations, marketing and sales with AI all in one place. The firm is using Mailchimp, an integral part of IES, to optimize sales and marketing by leveraging the insights from dimensional reporting to assess product mix and view profitability by product type. The marketing and sales teams tell us they are obsessed with the insights, which enable them to get most out of Mailchimp with more targeted customer engagement to fuel their growth. We also signed a deal with a large professional services and accounting firm which serves clients across 13 industries including construction, dental, government contracting, real estate, and technology. This firm was looking to standardize solutions and consolidate across vendors, and our disruptive price and ease of use was key to their purchasing decision.

Speaker Change: <unk> SaaS product mix and view profitability by product type the.

Speaker Change: The marketing and sales teams tell us they are obsessed with the insights which enable them to get most out of Belgium with more targeted customer engagement to fuel their growth.

Speaker Change: We also signed a deal with a large professional services, an accounting firm, which serves clients across 13 industries, including construction dental government contracting real estate and technology.

Speaker Change: This firm was looking to standardize solutions and consolidated across vendors and our disruptive price and ease of use was key to their purchasing decision.

Speaker Change: They migrated several clients, including some using competitive solutions to ies in a deal worth six figures annually and we're partnering with them to bring many more clients onto ies.

Sasan Goodarzi: They migrated several clients, including some using competitive solutions, to IES in a deal worth six figures annually, and we are partnering with them to bring many more clients onto IES, wrapping up with our progress and momentum. We are well positioned to win as an end-to-end platform with done-for-you experiences that fuel the success of consumers, small- and mid-market businesses, and accountants. Now let me hand it over to Sandeep.

They migrated several clients, including some using competitive solutions, to IES in a deal worth six figures annually, and we are partnering with them to bring many more clients onto IES, wrapping up with our progress and momentum. We are well positioned to win as an end-to-end platform with done-for-you experiences that fuel the success of consumers, small- and mid-market businesses, and accountants. Now let me hand it over to Sandeep.

Speaker Change: Wrapping up with our progress and momentum we are well positioned to win as an end to end platform with done for you experiences that fueled our success of consumers small and mid market businesses and accountants now.

Sandy: Now, let me hand, it over to Sandy.

Sandy: Thanks Hassan we delivered a strong second quarter of fiscal 2025 across the company. Our second quarter results include revenue of $4 billion up 17% GAAP operating income of $593 million versus $369 million last year up 61% non-GAAP operating.

Sandeep Aujla: Thanks Hassan. We delivered a strong second quarter of fiscal 2025 across the company. Our second quarter results include revenue of $4 billion, up 17%; GAAP operating income of $593 million versus $369 million last year, up 61%. Non-GAAP operating income of $1.3 billion versus $1 billion last year, up 26%. GAAP diluted earnings per share of $1.67 versus $1.25 a year ago, up 34%, and Non-GAAP diluted earnings per share of $3.32 versus $2.63 last year, up 26%. Now let me turn to our business segments starting with our Global Business Solutions Group. Our business platform helps customers run and grow their business end to end. Global Business Solutions Group revenue grew 19% during Q2, driven by Online Ecosystem revenue growth of 21% or 25% excluding Mailchimp.

Sandy: Income of $1 3 billion versus $1 billion last year.

Sandy: 26% GAAP diluted earnings per share of $1 67.

Sandy: <unk> says $1.25, a year ago up 34% and non-GAAP diluted earnings per share of $3 32 versus $2 63 last year up 26%.

Sandy: Now, let me turn to our business segments, starting with our global business solutions group.

Sandy: Our business platform helps customers to run and grow their business end to end global business solutions group revenue grew 19% during Q2, driven by online ecosystem revenue growth of 21% or 25% excluding mail chimp the momentum in our online ecosystem is demonstrating the power of our.

Sandeep Aujla: The momentum in our online ecosystem is demonstrating the power of our business platform and the mission critical nature of our offerings as customers look to grow their business and improve cash flow in any economic environment. QuickBooks Online accounting revenue grew 22% in Q2, driven by higher effective prices, customer growth, and mix shift. We continue to prioritize disrupting the mid-market through ongoing focus on both go-to-market motions and product innovations which we expect to drive ARPC growth. Online services revenue grew 19% in Q2 or 30% excluding Mailchimp. Growth in Q2 was driven by Money which includes payments, capital, and bill pay, payroll, and Mailchimp within Money. Revenue growth in the quarter reflects payments revenue growth which was driven by customer growth, an increase in total payment volume per customer, and higher effective prices and QuickBooks Capital revenue growth.

The momentum in our online ecosystem is demonstrating the power of our business platform and the mission critical nature of our offerings as customers look to grow their business and improve cash flow in any economic environment. QuickBooks Online accounting revenue grew 22% in Q2, driven by higher effective prices, customer growth, and mix shift. We continue to prioritize disrupting the mid-market through ongoing focus on both go-to-market motions and product innovations which we expect to drive ARPC growth. Online services revenue grew 19% in Q2 or 30% excluding Mailchimp. Growth in Q2 was driven by Money which includes payments, capital, and bill pay, payroll, and Mailchimp within Money. Revenue growth in the quarter reflects payments revenue growth which was driven by customer growth, an increase in total payment volume per customer, and higher effective prices and QuickBooks Capital revenue growth.

Sandy: Business platform and the mission critical nature of our offerings as customers look to grow their business and improve cash flow in any economic environment.

Sandy: Books online accounting revenue grew 22% in Q2, driven by higher effective prices customer growth and mix shift we continue to prioritize disrupting the mid market through ongoing focus on both go to market motions and product innovations, which we expect to drive RPC growth.

Sandy: Online services revenue grew 19% in Q2.

Sandy: 30%, excluding mail chimp.

Sandy: Growth in Q2 was driven by money, which includes payments capital and bill pay payroll and merchant within money revenue growth in the quarter reflects payments revenue growth, which was driven by customer growth and increase in total payment volume per customer and higher effective prices and quickbooks capital revenue growth.

Sandy: Total online payment volume growth in Q2 was 18%.

Sandeep Aujla: Total online payment volume growth in Q2 was 18% within payroll. The revenue growth in the quarter reflects customer growth, mix shift, and higher effective prices within Mailchimp. Revenue growth in the quarter was driven by higher effective prices and paid customer growth. We are making early progress with product improvements but continue to expect it to take several quarters to deliver improved outcomes at scale. As a reminder, in Q2 we began lapping the price changes we made in Q2 of last year, which drove a deceleration in growth this quarter versus Q1. We remain confident in and are executing on our vision of an end-to-end business platform that integrates the power of Mailchimp and QuickBooks. This is enabling our customers to both run and grow their business all in one place.

Total online payment volume growth in Q2 was 18% within payroll. The revenue growth in the quarter reflects customer growth, mix shift, and higher effective prices within Mailchimp. Revenue growth in the quarter was driven by higher effective prices and paid customer growth. We are making early progress with product improvements but continue to expect it to take several quarters to deliver improved outcomes at scale. As a reminder, in Q2 we began lapping the price changes we made in Q2 of last year, which drove a deceleration in growth this quarter versus Q1. We remain confident in and are executing on our vision of an end-to-end business platform that integrates the power of Mailchimp and QuickBooks. This is enabling our customers to both run and grow their business all in one place.

Sandy: Within payroll the revenue growth in the quarter reflects customer growth mix shift and higher effective prices.

Sandy: Within mail chimp revenue growth in the quarter was driven by higher effective prices and paid customer growth. We are making early progress with product improvements, but continue to expect it to take several quarters to deliver improved outcomes at scale. As a reminder, in Q2, we began lapping the price changes we made in Q2 of last year.

Sandy: Which drove a deceleration in growth this quarter versus Q1, we remain confident in and are executing on our vision of an end to end business platform that integrates a pair of mail chimp and cookbook. This is enabling our customers to both run and grow their business all in one place.

Sandy: Third we are executing our international strategy, which includes leading with our connected business platform in our established markets and leading with mail chimp and all other markets as we continue to execute on a localized product and lineup on a constant currency basis total international online ecosystem revenue.

Sandeep Aujla: Third, we're executing our international strategy, which includes leading with our connected business platform in our established markets and leading with Mailchimp in all other markets as we continue to execute on a localized product and lineup on a constant currency basis. Total international online ecosystem revenue grew 9% in Q2, or 19% excluding Mailchimp. As we have previously shared, we win as a platform company. Our online ecosystem revenue growth reflects the progress we are making with our strategy of serving both small and mid-sized businesses with more complex needs. This represents an addressable market of over $180 billion, roughly half of which is mid-market. In Q2, online ecosystem revenue grew 21%, including approximately 40% growth in online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite that serves mid-market. Online ecosystem revenue for small businesses, and the rest of the base grew a strong 18%.

Third, we're executing our international strategy, which includes leading with our connected business platform in our established markets and leading with Mailchimp in all other markets as we continue to execute on a localized product and lineup on a constant currency basis. Total international online ecosystem revenue grew 9% in Q2, or 19% excluding Mailchimp. As we have previously shared, we win as a platform company. Our online ecosystem revenue growth reflects the progress we are making with our strategy of serving both small and mid-sized businesses with more complex needs. This represents an addressable market of over $180 billion, roughly half of which is mid-market. In Q2, online ecosystem revenue grew 21%, including approximately 40% growth in online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite that serves mid-market. Online ecosystem revenue for small businesses, and the rest of the base grew a strong 18%.

Sandy: Grew 9% in Q2 or 19%.

Sandy: Including merchant.

Sandy: As we have previously shared we've been as a platform company our online ecosystem revenue growth reflect the progress we are making with our strategy of serving both small and midsized businesses with more complex needs. This represents an addressable market of over 180 billion rub.

Sandy: Roughly half of which is mid market in Q2 online ecosystem revenue grew 21%, including approximately 40% growth in online ecosystem revenue for <unk> advanced and into an enterprise suite that serves midmarket.

Sandy: Online ecosystem revenue for small businesses and the rest of the base grew a strong 18%.

Sandy: We're excited about our progress and serving mid market customers, while continue to focus on smaller businesses.

Sandeep Aujla: We are excited about our progress in serving mid-market customers while continuing to focus on smaller businesses. Looking ahead, we continue to expect Online Ecosystem revenue in total to grow approximately 20% in fiscal 2025. Turning to desktop during Q2, Desktop Ecosystem revenue grew 14% and desktop enterprise revenue grew in the high teens. As a reminder, quarterly Desktop Ecosystem revenue growth trends in fiscal 2025 reflect the offering changes we made in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates. We continue to expect Desktop Ecosystem revenue to grow in the low single digits in fiscal 2025. Turning to our Consumer Platform. Our consumer platform is helping customers make smart money decisions, take steps to improve their financial health year-round, achieve their best tax outcome, and get their tax refund faster.

We are excited about our progress in serving mid-market customers while continuing to focus on smaller businesses. Looking ahead, we continue to expect Online Ecosystem revenue in total to grow approximately 20% in fiscal 2025. Turning to desktop during Q2, Desktop Ecosystem revenue grew 14% and desktop enterprise revenue grew in the high teens. As a reminder, quarterly Desktop Ecosystem revenue growth trends in fiscal 2025 reflect the offering changes we made in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates. We continue to expect Desktop Ecosystem revenue to grow in the low single digits in fiscal 2025. Turning to our Consumer Platform. Our consumer platform is helping customers make smart money decisions, take steps to improve their financial health year-round, achieve their best tax outcome, and get their tax refund faster.

Sandy: Looking ahead, we continue to expect online ecosystem revenue in total to grow approximately 20% in fiscal 2025.

Sandy: Turning to desktop during Q2 desktop ecosystem revenue grew 14% and desktop enterprise revenue grew in the high teens as a reminder, quarterly desktop ecosystem revenue growth trends in fiscal 2025 reflect the offering changes we made in early fiscal 2012.

Sandy: Four to complete the transition to a recurring subscription model, including more frequent product updates. We continue to expect desktop ecosystem revenue to grow in the low single digits in fiscal 2025.

Sandy: Turning to our consumer platform.

Sandy: Our consumer platform is helping customers make smart money decisions take steps to improve their financial health year round achieved their best tax outcome and get their tax refund faster.

Sandy: Consumer group revenue grew 3% ahead of our guidance for a low single digit decline in Q2.

Sandeep Aujla: Consumer Group revenue grew 3% ahead of our guidance for a low single digit decline in Q2. Our strategy is to win as an AI driven expert platform by delivering the best experience, speed to money, and best price for customers. As one consumer platform with a seamless customer experience across TurboTax and Credit Karma, we have incredible skills to win in the DIY and assisted tax categories. We are off to a strong start in tax this season and are reiterating our guidance for Consumer Group of 7% to 8% revenue growth in fiscal 2025. Turning to the Pro Tax Group, the revenue was $272 million in Q2, down 1%, shifting to Credit Karma. Credit Karma revenue growth accelerated again this quarter to 36%, reflecting strength in credit cards, personal loans, and auto insurance.

Consumer Group revenue grew 3% ahead of our guidance for a low single digit decline in Q2. Our strategy is to win as an AI driven expert platform by delivering the best experience, speed to money, and best price for customers. As one consumer platform with a seamless customer experience across TurboTax and Credit Karma, we have incredible skills to win in the DIY and assisted tax categories. We are off to a strong start in tax this season and are reiterating our guidance for Consumer Group of 7% to 8% revenue growth in fiscal 2025. Turning to the Pro Tax Group, the revenue was $272 million in Q2, down 1%, shifting to Credit Karma. Credit Karma revenue growth accelerated again this quarter to 36%, reflecting strength in credit cards, personal loans, and auto insurance.

Sandy: Strategy is to win as an AI driven expert platform by delivering the best experience speed to money and best price for our customers as one consumer platform with a seamless customer experience across turbotax and credit Karma we have.

Sandy: Incredible scale to win in the DIY and assisted tax categories. We are off to a strong start in taxes season and are reiterating our guidance for consumer group of 7% to 8% revenue growth in fiscal 2025.

Sandy: Turning to the pro tax group the revenue was $272 million in Q2 down 1%.

Sandy: Shifting to credit Karma.

Sandy: Credit Karma revenue growth accelerated again, this quarter to 36%, reflecting strength in credit cards personal loans and auto insurance on a product basis.

Sandeep Aujla: On a product basis, credit cards accounted for 15 points of growth, personal loans accounted for 14 points, and auto insurance accounted for 6 points. As a reminder, starting in Q3 we are lapping the strong growth in auto insurance that began a year ago. We are pleased with our early results this tax season as we execute on our vision for one consumer platform with a seamless customer experience across TurboTax and Credit Karma. Let me now touch briefly on our investments in AI and how they are benefiting our operations. In addition to the AI driven experiences we are delivering for our customers to fuel their success that Sasan spoke to earlier, we are also leveraging AI to operate more efficiently and increase productivity internally within a customer success organization.

On a product basis, credit cards accounted for 15 points of growth, personal loans accounted for 14 points, and auto insurance accounted for 6 points. As a reminder, starting in Q3 we are lapping the strong growth in auto insurance that began a year ago. We are pleased with our early results this tax season as we execute on our vision for one consumer platform with a seamless customer experience across TurboTax and Credit Karma. Let me now touch briefly on our investments in AI and how they are benefiting our operations. In addition to the AI driven experiences we are delivering for our customers to fuel their success that Sasan spoke to earlier, we are also leveraging AI to operate more efficiently and increase productivity internally within a customer success organization.

Sandy: Cost accounted for 15 points of growth personal loans accounted for 14 points and auto insurance accounted for six points.

Sandy: As a reminder, starting in Q3, we are lapping the strong growth in auto insurance that began a year ago.

Sandy: We are pleased with our early results. This tax season, as we execute on our vision for one consumer platform with a seamless customer experience across turbotax and credit Karma.

Sandy: Let me now touch briefly on our investments in AI and.

Sandy: And how they are benefiting our operations. In addition to the AI driven experiences we are delivering for our customers to fuel their success.

Sandy: Spoke to earlier.

Sandy: Also leveraging AI to operate more efficiently and increase productivity internally.

Sandy: Within our customer success organization.

Sandy: <unk> and AI capabilities have delivered nearly $19 million in Nols efficiencies in the first half of the year.

Sandeep Aujla: Investments in AI capabilities have delivered nearly $90 million in annualized efficiencies in the first half of the year. That's because we're leveraging AI for expert training, matching customers to experts, automating workforce operations, and eliminating data entry. We're using AI agents to deliver done-for-you experiences, and this has contributed to a 20% reduction in the contact rate for TurboTax's product support year to date. This is Intuit Assist working at scale. We're also seeing improved coding productivity with up to 40% faster coding using GenAI code assistance driving faster innovation for our customers. In summary, I am pleased with the momentum this fiscal year and opportunities ahead. Shifting to a balance sheet and capital allocation, our financial principles guide our decisions. They remain a long-term commitment and are unchanged.

Investments in AI capabilities have delivered nearly $90 million in annualized efficiencies in the first half of the year. That's because we're leveraging AI for expert training, matching customers to experts, automating workforce operations, and eliminating data entry. We're using AI agents to deliver done-for-you experiences, and this has contributed to a 20% reduction in the contact rate for TurboTax's product support year to date. This is Intuit Assist working at scale. We're also seeing improved coding productivity with up to 40% faster coding using GenAI code assistance driving faster innovation for our customers. In summary, I am pleased with the momentum this fiscal year and opportunities ahead. Shifting to a balance sheet and capital allocation, our financial principles guide our decisions. They remain a long-term commitment and are unchanged.

Sandy: That's because we're leveraging AI for expert training matching customers to experts automating work force operations and eliminating data entry. They are using agents to deliver done for your experiences and this has contributed to a 20% reduction in the contact rate for turbotax product support year to date.

Sandy: This is intuit assist working at scale.

Sandy: We're also seeing improved according productivity with up to 40% first according using gender CT assistance driving faster innovation for our customers.

Sandy: In summary, I am pleased with our momentum this fiscal year and the opportunities ahead.

Sandy: Shifting to our balance sheet and capital allocation.

Sandy: <unk> principles guide our decisions to remain a long term commitment and are unchanged.

Sandy: We finished the quarter with approximately $2 5 billion in cash and investments.

Sandeep Aujla: We finished the quarter with approximately $2.5 billion in cash and investments and $6.3 billion in debt on our balance sheet. We recently entered into a $4.5 billion revolving credit facility that we are using to fund our 5-day early refund offering. This facility expires on 30 April 2025. We repurchased $721 million of stock during Q2. Depending on market conditions and other factors, our aim is to be in the market each quarter to offset dilution from share-based compensation. Over a three-year period, the board approved a quarterly dividend of $1.04 per share payable on 18 April 2025. This represents a 16% increase per share versus last year. Moving on to guidance, we are reaffirming our fiscal 2025 guidance.

We finished the quarter with approximately $2.5 billion in cash and investments and $6.3 billion in debt on our balance sheet. We recently entered into a $4.5 billion revolving credit facility that we are using to fund our 5-day early refund offering. This facility expires on 30 April 2025. We repurchased $721 million of stock during Q2. Depending on market conditions and other factors, our aim is to be in the market each quarter to offset dilution from share-based compensation. Over a three-year period, the board approved a quarterly dividend of $1.04 per share payable on 18 April 2025. This represents a 16% increase per share versus last year. Moving on to guidance, we are reaffirming our fiscal 2025 guidance.

Sandy: $6 3 billion in debt on our balance sheet. We recently entered into a $4 5 billion revolving credit facility that we are using to fund our five day early refund offering this facility expires on April 32025.

Sandy: We repurchased $721 million of stock during the second quarter, depending on market conditions and other factors. Our aim is to be in the market each quarter to offset dilution from share based compensation over a three year period.

Sandy: The board approved a quarterly dividend of $1 four per share payable on April 18, 2025. This represents a 16% increase per share versus last year.

Sandy: Moving on to guidance, we are reaffirming our fiscal 2025 guidance. This include.

Sandy: Total company revenue growth of 12% to 13%.

Sandeep Aujla: This includes total company revenue growth of 12 to 13%, GAAP operating income growth of 28 to 30%, non-GAAP operating income growth of 13 to 14%, GAAP diluted earnings per share growth of 18 to 20%, and non-GAAP diluted earnings per share growth of 13 to 14%. Our guidance for the third quarter of fiscal 2025 includes total company revenue growth of 12% to 13%, GAAP earnings per share of $9.22 to $9.28, and non-GAAP earnings per share of $10.89 to $10.95. Building on our strong Q2 results and robust Q3 guidance, we are highly confident in the continued strength and and positive trajectory of our business through Q4 and beyond.

This includes total company revenue growth of 12 to 13%, GAAP operating income growth of 28 to 30%, non-GAAP operating income growth of 13 to 14%, GAAP diluted earnings per share growth of 18 to 20%, and non-GAAP diluted earnings per share growth of 13 to 14%. Our guidance for the third quarter of fiscal 2025 includes total company revenue growth of 12% to 13%, GAAP earnings per share of $9.22 to $9.28, and non-GAAP earnings per share of $10.89 to $10.95. Building on our strong Q2 results and robust Q3 guidance, we are highly confident in the continued strength and and positive trajectory of our business through Q4 and beyond.

Sandy: GAAP operating income growth of 28% to 30% non-GAAP operating income growth of 13% to 14% GAAP diluted earnings per share growth of 18% to 20% and non-GAAP diluted earnings per share growth of 13% to 14%.

Our guidance for the third quarter of fiscal 2025 include.

Sandy: Total company revenue growth of 12%, 13%.

Sandy: GAAP earnings per share of $9 22 to $9 28.

Sandy: And non-GAAP earnings per share of $10 89 to $10 95.

Sandy: Building on our strong Q2 results and robust Q3 guidance. We are highly confident in the continued strength and positive trajectory of our business through Q4 and beyond with the majority of the tax season still ahead, we are well positioned to deliver strong results and look forward to sharing an updated full year outlook.

Sandeep Aujla: With the majority of the tax season still ahead, we are well positioned to deliver strong results and look forward to sharing an updated full year outlook on our next earnings call in line with our usual practice. You can find our full fiscal 2025 and Q3 guidance details in our press release and on our fact sheet. With that, turn it back over to Sasan.

With the majority of the tax season still ahead, we are well positioned to deliver strong results and look forward to sharing an updated full year outlook on our next earnings call in line with our usual practice. You can find our full fiscal 2025 and Q3 guidance details in our press release and on our fact sheet. With that, turn it back over to Sasan.

Sandy: On our next earnings call in line with our usual practice.

Sandy: You can find our full fiscal 2025, and Q3 guidance details in our press release and on our fact sheet.

Stephane: With that I'll turn it back over to Stephane.

Stephane: Great. Thank you Sandeep, we're very confident in our long term growth strategy, including double digit revenue growth and operating income growing faster than revenue we.

Sasan Goodarzi: Great. Thank you, Sandeep. We're very confident in our long-term growth strategy including double-digit revenue growth and operating income growing faster than revenue. We like our momentum in the first half of the fiscal year, which sets us up for a solid second half. Looking ahead. We're confident in our momentum and the progress that we are seeing with Intuit Assist delivering done-for-you experiences with AI-powered human experts increasing our 5% penetration of a $300 billion total addressable market. We have an incredible runway ahead with that. Let's now open it up to your questions.

Stephane: We like our momentum in the first half of the fiscal year, which sets us up for a solid second half looking ahead, we're confident in our momentum and the progress that we are seeing with intuit assist delivering done for your experiences with AI powered human experts, increasing our 5% penetration with $300 billion total addressable market, we have an incredible.

Stephane: Runway ahead.

Stephane: With that let's now open it up to your questions.

Stephane: Thank you, ladies and gentlemen, if you would like to ask a question. Please press Star then the number one on your telephone keypad.

Kim Watkins: Thank you, ladies and gentlemen. If you would like to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star two. Please limit yourself to one question, which we'd like to get to as many people as we can. We'll go first to Siti Panigrahi with Mizuho. Your line is open. Please go ahead.

Operator: Thank you, ladies and gentlemen. If you would like to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star two. Please limit yourself to one question, which we'd like to get to as many people as we can. We'll go first to Siti Panigrahi with Mizuho. Your line is open. Please go ahead.

Stephane: If you would like to withdraw your question Press Star two please.

Stephane: Please limit yourself to one question, we'd like to get to as many people as we can.

Speaker Change: Well go first to CD pantograph with Mizuho. Your line is open. Please go ahead.

Stephane: Greg.

Speaker Change: Congratulation on a great quarter.

Sandeep Aujla: Great. Congratulations on a great quarter. Of course now this is a focus.

Siti Panigrahi: Great. Congratulations on a great quarter. Of course now this is a focus. On taxes and at this point. Sandeep, what's driving your increasing confidence to deliver that 7% to 8% guidance for consumer, any color on the trends? That you are seeing in the assisted. Category since you started promotion this year, earlier in October. Also, if you could cover the same. You know, we hear some concern about.DOGE initiative wondering how Intuit can drive efficiency for IRS.

Stephane: Of course from now this is.

Stephane: Focus on taxes and at this point.

Sasan Goodarzi: On taxes and at this point.

Stephane: What's driving your increased confidence to deliver that 7% to 8%.

Sandeep Aujla: Sandeep, what's driving your increasing confidence to deliver that 7% to 8% guidance for consumer, any color on the trends?

Stephane: Guidance for consumer.

Stephane: Any color on the change that Youre seeing in the assisted category. Since you started promotion this year.

Sasan Goodarzi: That you are seeing in the assisted.

Sandeep Aujla: Category since you started promotion this year, earlier in October. Also, if you could cover the same.

Speaker Change: October also if you could cover the same.

Speaker Change: Here are some concern about door initiative wondering how intuit can drive efficiencies for Iris.

Sasan Goodarzi: You know, we hear some concern about.

Sandeep Aujla: DOGE initiative wondering how Intuit can drive efficiency for IRS.

Speaker Change: Yes sure. Thanks for the question first of all I'll just start with our strength is really across both.

Sasan Goodarzi: Yeah, sure. Thanks for the question, Siti. You know, first of all, I'll just start with. Our strength is really across both DIY and the assisted category. We're actually seeing very strong traction with both simple and complex filers in DIY, and based on all of our innovations.

Andy: Hi, Andy.

Andy: The assisted category, we're actually seeing very strong traction with both simple and complex filers in DIY and based on all of our innovation actually monetization is very strong with things like <unk>.

Andy: Access to expert help.

Andy: In the DIY category, and you know access to lots of money. So.

Andy: Our repositioning.

Andy: Of the lineup has actually really helped us accelerate our paid growth. So we feel good.

Andy: In the DIY category.

Andy: An assistant listen it's really <unk>.

Andy: And all of the work from.

Andy: Reinventing our campaign, which is really resonating in terms of what it means to digitally get your taxes done from anywhere with the best experience immediate access to your money and the best price. So if I'm really from campaign to all the work that we've done to begin to show up near nearly.

Andy: 80% of the assisted filers on where they hold their homes, where we are within a short radius of their homes all the way to the experience we've completely revamped the experience just as a reminder, when it expert connects to one of our customers the.

The conversion rate is 80% and with all of our data and AI investments, we're able to use our algorithms to match customers to experts within seconds.

Andy: Mediately get the expert to engage with the customer while they're engaging upload all of their data. So that the expert can deliver value immediately and then get their taxes done in less than two hours.

Andy: But this is by the way this is across consumer and business and so on.

Andy: Our funnel is strong from the campaigns that we started in the fall and all the work that we've done leveraging data and AI and with our experiences and given where we are so it's a combination of all of our choices and decisions all really powered by data and AI that gives us confidence our city and our guidance.

Andy: The second thing around those I would just reiterate.

Andy: Our ongoing and my personal ongoing engagement with the administration even.

Andy: There's just a couple of weeks ago and they are very focused on.

Andy: Significantly reducing waste, reducing fraud and <unk>.

Andy: And eliminating bureaucracy and there are many areas, where we're talking about contributing and helping them with their goals and with that said their focus is is to really drive that elimination of.

Andy: Tax fraud waste overhead cost in IRS and.

Andy: And those are the actions that they are very focused on taking and.

Andy: We are very focused on helping the administration in any way possible and we don't see by the way any risks.

Andy: Risks to the IRS, providing services to our consumers and businesses.

Andy: Some of the actions that are that have been taken so hopefully that answers. Your question, where we're quite excited about our progress I'm quite bullish about.

Andy: The rest of the season.

Andy: That's super helpful.

Andy: Stick to one question. Thank you.

Andy: Alright, thank you.

Speaker Change: We'll go next to Kirk Mattern with Evercore ISI. Your line is open. Please go ahead.

Kirk Mattern: Oh, yes, thanks, very much and congrats on the good.

Speaker Change: Quarter, so sort of just wondering if you could talk a little bit about just the SMB or the small business environment. I think we all came into this year, hoping that we'd be seeing a little bit of green shoots in terms of the economic activity level.

Speaker Change: Has anything changed on that front in your view just given some of the macro.

Speaker Change: No dislocation, perhaps you have questions around tariffs and things like that I was just kind of curious if you could give us a little bit of an update on what youre seeing on the small business side right now thanks.

Speaker Change: Yeah sure Kirk I would just say it remains very stable.

Kirk Mattern: Or just the macro environment for for businesses, if I give you a I clicked down.

Kirk Mattern: The smaller businesses up to about 10 employees sort of $2 3 million in revenue.

Kirk Mattern: On our platform their profits and cash flows are up year over year of course as you know we're not overly concentrated in any particular industry. It differs a little bit by industry, but overall that should be your takeaway for the smaller businesses that the larger businesses sort of.

Kirk Mattern: $3 million and above 10 million into 50 to 100 million plus the mid market customers that we serve that theyre actually very much are looking towards digitization looking toward.

Kirk Mattern: Being able to save time, finding ways to drive.

Kirk Mattern: Our revenue growth and profitability and I would say the same goes for our accountant partners that also serve these businesses and that's where really where intuit enterprise suite comes in and the power of Intuit enterprise III because these larger businesses.

Kirk Mattern: And based on the proof now that we have with customers using <unk> actually want to lean into because they can see with our AI powered experiences they have a partner by their side and assistant that can help them grow their business and they're actually leading leaning into digitization because it leads into their growth that we're seeing even.

Kirk Mattern: Healthier environment, the larger of the businesses get.

Hassan: Thanks Hassan.

Hassan: Yes, very welcome.

Speaker Change: We'll go next to Keith Weiss with Morgan Stanley. Please go ahead.

Keith Weiss: Thank you guys, taking the question and congratulations on a really solid quarter.

Speaker Change: Maybe one for <unk> on the expense side of the equation.

Keith Weiss: Going into this year.

Keith Weiss: You guys had made room for more aggressive investment sort of get the skill sets needed onboard.

Keith Weiss: For you guys to sort of progress on your plans on a go forward basis. Thus.

Keith Weiss: Thus far in the first half and definitely in this quarter. We saw really impressive margin expansion a lot of leverage shown up on that bottom line is that in any way.

Keith Weiss: Due to expense timing because are you guys still planning on basically like hiring back to the same type of head count levels that we were talking about when we came into the year or is there.

Keith Weiss: And perhaps more sort of opportunity for driving leverage than we're thinking about earlier.

Keith Weiss: Okay. Thanks for that question.

Keith Weiss: Yes.

Keith Weiss: Let me address that question both on the hiring aspect and then also on the on the margin aspect on the hiring we are we saw really good.

Keith Weiss: Take rate in terms of recruiting in the first two quarters of the year.

Keith Weiss: In fact there.

Keith Weiss: Ahead of even our internal expectation in terms of just the reputation of the firm has been.

Keith Weiss: How many people we were able to attract to the company in a short order of time in terms of expectations for the year.

And with what we have shared before I expect it to be flat to slightly up for the year as we continue to lean into investing in areas.

Keith Weiss: The key to our future growth and also using AI internally to drive efficiency in terms of our.

Keith Weiss: Our employees.

Keith Weiss: In terms of the broader question around.

Keith Weiss: Expenses in our margin expansion look we are committed to driving margin expansion over the long term and I feel super confident in our ability to deliver on the guidance that'd be a great given for margin expansion. This year and really the trends you've seen year to date come down to three things. One is the day in day out expense discipline.

Keith Weiss: Of course, this company and that shows up in every aspect of how we allocate our dollars in the ROI, we expect from both daughters.

Keith Weiss: Secondly, the efficiencies from implementation of AI in our customer success that came in.

Keith Weiss: A bit earlier than what we had internally forecasted so that was the.

Keith Weiss: Good trends that we saw and lastly, with the slower start to the tax season that also made it a bit in Q2. So net net you should look at Q2 adds further solidifying our confidence in our margin for this year and beyond.

Keith Weiss: Got it and just.

Keith Weiss: To clarify on point number one on the hiring it sounds like you're hiring is going to plan. So there wasn't like an outperformance in Q2 margins that came from delayed hiring in any sense.

Keith Weiss: Oh no.

Keith Weiss: We had good hiring take rates and we hired a little less than what we thought we would need just given the efficiencies we saw and as such is 40% higher productivity of our engineered using gen AI tools.

Keith Weiss: If I talked about on AI implementation at CES, where we saw 20% lower call.

Keith Weiss: Volume from Turbotax live as we have implemented <unk> experiences.

Keith Weiss: There are a plethora of things such as that that led to us needing fewer people than we thought we would need but.

Keith Weiss: That should be the key areas that you should takeaway in terms of hiring trends.

Keith Weiss: Excellent Super helpful. Thank you guys.

Keith Weiss: Yes.

Speaker Change: Well go next to Brent Thill with Jefferies. Please go ahead.

Brent Thill: Thanks Hassan I know you launched some clever.

Speaker Change: Clever innovative new marquee mean early into the tax season, I'm curious if you've seen any.

Speaker Change: Early signs of a different reaction or traction.

Speaker Change: What's been the response and it is it does it give you a little more confidence heading into this tax season.

Speaker Change: Based on what you're seeing from that or any color would be helpful. Thanks.

Brent Thill: Yes, Brent.

Brent Thill: Thank you for the question. The short answer is yes based on where we are and what we've seen it does give us.

Brent Thill: Just a lot of confidence and a flywheel that we're creating in the assisted segment due to double click it really that the combination of continuing to.

Brent Thill: Raise awareness in the market around really three benefits that matters a lot to do.

Brent Thill: Those that spend over $35 billion, whether it's businesses or consumers to get somebody else to get their taxes done for them. One is about experience. It's from the ease of wherever you are virtually ah.

Brent Thill: And the fact that we can get it done for you in less than a couple of hours. Some by the way in 30 minutes and with immediate access to your money at the best price and just given our scale with all of the data and AI investments that we've made and you think about us and compete.

Brent Thill: With a lot of I would just say, it's smaller players because the majority of our competition is several hundred thousand.

Brent Thill: Local.

Brent Thill: Tax firms and tax pros the experience the scale in which we can deliver the experience.

The price and ultimately immediate access to money is just a really very attractive for both consumers and businesses and the punch line is the accumulation of what we started in the fall.

Brent Thill: Around.

Brent Thill: Beat your price because we know that there is a segment of customers that actually make their decision in the fall to what we've carried through to where we sit today. Our funnel is actually quite strong that's number one number two our experience has significantly improved our given.

Brent Thill: The best way I would put it is.

Brent Thill: When you hear us talk about experience improvement, we finally made the shift from <unk>.

Brent Thill: Being a software provider until it does.

Brent Thill: Drop the assisted segment to being a service provider.

Brent Thill: Which means that we're not just leading with.

Brent Thill: And software where these are these customers have to do the work we're doing all the work.

Brent Thill: For them with the expert engaging customers right upfront and we're just seeing the accumulation.

Brent Thill: Of all of that given where we are in season and are excited about the next six weeks.

Brent Thill: Okay. Thanks.

Brent Thill: Very welcome.

Speaker Change: We'll go next to Steve Enders with Citi. Please go ahead.

Steve Enders: Okay, great. Thanks for thanks for taking the questions here.

Steve Enders: I guess I wanted to ask just on the strength that maybe youre seeing it in the advanced and the.

Steve Enders: Enterprise suite side of the equation just how are you thinking about the productivity ramp of the sales force build out how you're thinking about.

Steve Enders: Further investment in just kind of how youre viewing that opportunity too.

Steve Enders: The move up market.

Steve Enders: Further invest behind.

Steve Enders: The strength you're seeing there.

Speaker Change: Yes, well a couple of things I would say one everyday that passes our sales folks are getting more productive because of just the timing of when we hired them the timing of when we launched into an enterprise suite.

Speaker Change: It was just literally last fall that we launched it and went went GA and of course prior to that we were hiring and ramping up our sales folks so.

Speaker Change: We touched on earlier, we've actually seen at <unk>, 60% productivity improvement in the last couple of months.

Speaker Change: With our sales folks are which is just sort of natural progression.

But I would also say in many ways I don't want to downplay it but it's an easier sell because that's because of the experience because of the total cost of ownership and because of how competitive. It is on price I think the big shift that we are now accelerating.

Speaker Change: It's really coverage of our large accountant partners.

Speaker Change: We initially started really focusing on.

Speaker Change: Talking to the businesses.

Speaker Change: We are now accelerating and shifting to making sure that our large account and partners can actually play around with Intuit enterprise seek they are going viral they're hearing about it so giving them a sandbox to do that you know coming up with.

Speaker Change: Our pricing framework because you know these large accounting firms may have up to 15 different practices from real estate the construction the manufacturing the technology.

Speaker Change: Services, and just having a really a framework to focus by practice to in.

Speaker Change: In essence offer Intuit enterprise suites of their customers and that's the area, where I would say, we're accelerating our coverage.

Speaker Change: But the productivity is significantly improving and it's something that we.

Speaker Change: We watch for this is a business, where we don't want to overly focus on optimization, because we're scaling in the growth is exciting but at the same time.

Speaker Change: Productivity of the sales folks is really important I don't know Sandeep, if you would add anything Steve couple.

Sandeep: A couple of points I would add is that in what we look at internally is that we want to make sure that each cohort of salespeople coming and it is more productive than the prior and each cohort is levering up faster than the prior cohort in terms of their productivity secondly, when we look at these investments.

Sandeep: We also want to make sure they are investing in the right industry specialization as well as product specialization, because we see better close rate when we bring in people with those specializations and lastly, let me touch on AI because AI also the big contributor here to driving productivity, what we were able to do with implementing AI across our sales desk and we were able to give them. The next bet.

Sandeep: Action based on where they are in the sales process, we were able to give them the right top track to address the customers need are too.

Sandeep: What competitive solution. There are using AK was a battle card could be for the product offering.

Sandeep: There are multiple areas that we look at to drive efficiency and the staff that we're looking at we've been disciplined and feeling really good about the about the improvements we're seeing in our productivity.

Speaker Change: Okay, great great to hear thanks for taking the questions here.

Sandeep: Of course.

Kash Rangan: We'll go next to Kash Rangan with Goldman Sachs.

Speaker Change: Please go ahead.

Kash Rangan: Alright, Thank you very much congratulations on the results and something.

Speaker Change: But I can always count on you to be the.

Speaker Change: The beacon of hope for Smbs. So I know that you have been progressively.

Speaker Change: Progressively feeling better and better about it about the SMB spending environment.

Speaker Change: Take a step back online.

Speaker Change: Ecosystem was barely a blip on your income stream now it's a multibillion dollar business unit right. So near term longer term, how should we think about the online ecosystem revenue and within that <unk> had been certainly seems to be afterwards, what is your dream scenario, what would make you ecstatic to be outcome of QB or advanced how big of a business.

Speaker Change: Could that be in although it's a little bit too early but if you dream the dream, how big of a business good.

Speaker Change: S b within the confines of into it. Thank you so much.

Speaker Change: Well Kash thanks for your question.

Speaker Change: We loved the dream and we love to execute so how do I love. The nature of your question in a couple of things I would say one if you just look at the size and scale of our business groups are well.

Speaker Change: Well north of $11 billion in terms of the way we've guided this year, we expect the business group to continue to grow overall between 15% to 28% and the majority of that is really.

Speaker Change: Driven by online growth because we continue to expect that desktop will be very very low single digits.

Speaker Change: As you think about the future. So that's the first takeaway is look at this franchise is growing 15% to 20% which means that the.

The online.

Speaker Change: Portion, which is the largest portion should continue to grow at a healthy rate I think to answer your.

Speaker Change: Your question.

Speaker Change: When you look at the.

Speaker Change: The total size of the addressable market, which.

Speaker Change: For the business group is nearly 200 billion.

Speaker Change: The half of that is mid market and and it's the way we define mid market today, which.

Speaker Change: Does not mean it will stand as is and what I mean by that is today.

Speaker Change: Anything north of $3 million in revenue in terms of the other business, although after a couple of hundred million dollars.

Speaker Change: The other way to look at it as up there like couple of hundred employees is the way we've defined our mid market and that's about $100 billion in Pam and Thats, where <unk> advanced in.

Speaker Change: Stewart Enterprise suite and all the services are truly is a platform you know come in.

Speaker Change: We believe mid market, one day will be bigger than the entire business scope. That's why we started talking about the the growth rate of mid market.

Speaker Change: Separately because.

Speaker Change: It's an area, where we're getting great traction, it's an area, where we are actually more confidence today than even five years ago. When we declared disrupting mid market given our expansion of our innovation on the platform, but also our go to market and we're not going to stop at a couple of hundred million dollars in revenue. We believe we have so much more room and we just had.

Speaker Change: So much more confidence sitting here today than even last fall because we are in market with Intuit enterprise suite and we can see how we're winning on experience total cost of ownership and price and by the way there's still a lot that we're adding to the platform. There are still areas, where we have work to do which actually excites us based on the progress that we're seeing and then what.

Possible. So we think mid market is just for the next 10 years is going to be a significant growth driver and we believe it will be the largest overtime or driver of growth for the business groups. While we continue by the way to serve those that are new entrants in the business market, because we want to grow with them.

Speaker Change: So the dream as it will be far bigger than the business group is at today and we're excited about our potential.

Speaker Change: Loved the dream loved the execution, even more thank you.

Speaker Change: Very welcome.

Alex Zukin: We'll go next to Alex Zukin with Wolfe Research.

Alex Zukin: Hi, This is Patrick on for Alex can you help us contextualize, the result and credit Karma.

Speaker Change: Second quarter in a row with a pretty large outperformance relative to consensus and what are you seeing that is providing such strength in the segment and then given the first half of the year was there any consideration to update annual guidance if not why not thank you.

Speaker Change: Yes, sure. So first of all I would just start by reminding everyone that our strategy is really about the one consumer platform and winning as one consumer platform. It is all of the <unk>.

I would say great execution of the of the team with the integration of credit Karma in Turbotax was our goal is from helping you build credits to helping you build wealth and in the middle helping you manage your money and get your taxes done. So that's ultimately what we're focused on with one consumer platform.

Speaker Change: And all of our innovation is one consumer platform and particularly all of it is sitting on top of all of our data and AI investments, where we've dramatically improved the.

Speaker Change: Shopping experience for members, where we in essence help you make buying decisions, whether it's insurance, whether it's personal loans, whether it's credit cards, whether it's connecting you to lots of taxes and so we need to look at.

Speaker Change: <unk> accelerated growth rate, probably 40% is macro things are just better versus last year's 60% is execution and we love our trajectory more importantly, we love the integration that we've done with turbotax cause for US everything is about helping customers manage their money and helping them get their taxes done and laugh.

Speaker Change: I would just say that this is a segment in the long run that we would expect to grow 10% to 15% overall, we would expect our consumer platform right because the combination of turbotax and credit Karma too.

Speaker Change: To grow double digits and that's the purpose that it serves and as you heard.

Speaker Change: Sandeep touch on this and I'll, then turn it over to him for any additional insight.

Speaker Change: Given where we are in the year, we will look at updating our guidance after Q3.

Patrick: Hey, Patrick.

Speaker Change: The only couple of things I would add is in addition to the partner conference we are seeing.

Speaker Change: Better to get experienced across our.

Speaker Change: Consumer platform. We're also seeing the experiences we embedded across credit Karma drive better shopping experiences are better RPC. So that's also adding in the.

Speaker Change: And the trends Youre seeing there and lastly, as you look ahead and model out the rest of the year just keep in mind that last year credit Karma started with a negative 5% growth rate in Q1, Q1 and exited at plus 14 in Q4, so the comps in the back half of the year for credit Karma do get.

Speaker Change: More challenging so please do take that into kind of the model out the rest of the year.

Speaker Change: Super helpful. Thank you.

Speaker Change: Very welcome.

Brad Sills: We'll go next to Brad Sills with Bank of America.

Speaker Change: Oh, great. Thank you so much I wanted to ask a question on taxes, we're heading into the tax season here.

Speaker Change: You've talked about the effort to advertise to the full service filer and that CPA segment's wanted to get any perspective on how that might be tracking are there any leading indicators that suggest you're seeing the traction there in the full service segment as a result of of some of the as we've all seen on TV and.

Speaker Change: Just general outlook, so for full service as we head into the season. Thank you.

Speaker Change: Yeah sure. Thank you for your question a couple of things I would just say this is the.

Speaker Change: The strength that we're seeing in the funnel and and.

Speaker Change: And really our how we're feeling about the rest of the year is really a combination of reinventing.

Speaker Change: Our end to end from campaign. So the experience focused on three things one is the best experience that you could have virtually.

Speaker Change: Second is immediate access to your money third is the best price.

Speaker Change: And really our campaign of showing how taxes are differ virtually where you can get immediate access to your money and get your taxes done faster than anybody else can do it.

Speaker Change: It's really had.

Speaker Change: That coupled with our campaign that started in the fall is really had a positive impact on the building out our funnel plus we really have revamped our full service experience you know one thing as I mentioned earlier.

Speaker Change: Was that the big change the big from due in our experience. This year as we shifted from a software company to a services company as it relates to disrupting the assisted segment and what that really means that even last year. We were still having full service customers do a lot of the work as if theyre doing it themselves. This year, we know within seconds match.

Speaker Change: A expert with a customer in the background we are.

Speaker Change: Ingesting all of their data and within minutes. The expert is delivering real insights to the customer and while the customers on the goal of getting their taxes done and sometimes it as little as 30 minutes. So just from campaign to the experience and and being disrupted in our price.

Speaker Change: We're seeing strength in the funnel and we're quite bullish about the rest of the year and I'll just end with.

Speaker Change: For us it's about the assisted category, it's about the experiences across do it with me and full service where were seeing end to end strength.

Speaker Change: Very exciting thank you Susana.

Speaker Change: Yes. Thank you.

Speaker Change: We'll go next to Alex Smart craft with Keybanc capital markets.

Speaker Change: Hey, everyone. Thanks for taking my question could you maybe just talk about the consumer group result.

Speaker Change: You noted better than guided just curious kind of what surprised.

Speaker Change: Particularly.

Speaker Change: The context of a slower start to the season. Thank you.

Speaker Change: Yep. Thanks.

Alex Zukin: Thanks for the question Alex.

Speaker Change: Things.

Speaker Change: Did better than expectation on our on our consumer group. One is we just saw <unk> pointed out a strong start to the year in terms of turbotax online as well as the average revenue per return of more customers engaged with an expert NSA.

Speaker Change: Added on offerings, including getting.

Speaker Change: Our defense and.

Speaker Change: Faster access to their refund.

Speaker Change: To what was a key driver in terms of what the units as well as the AARP, our that'd be experienced that drove the results are better than what we had guided you all too.

Speaker Change: And just to clarify I know no sort of.

Speaker Change: Change in expected seasonality as you're modeling the business is that is that a fair statement.

Speaker Change: No expected seasonality, if you're referring to.

The IRS opened on the 27th I'm, assuming you are taking that into account in terms of the seasonality, but we don't expect any any seasonality and even some of the questions we get around the unfortunate events.

Speaker Change: Live, but the fires, we expect that to be non material impact to our Q3.

Speaker Change: Okay, great. Thank you for the answer.

Speaker Change: Gotcha.

Speaker Change: We'll go next to tailor mcginnis with UBS.

Tailor McGinnis: Yeah, Hi, thanks, so much for taking my question, maybe I'll ask on the online services business, because I think he said that that accelerated to 30% growth excluding mail channel, which is really solid so when we think about the growth potential of online services in the second half can you just unpack that a little bit more so is the acceleration.

Tailor McGinnis: Really being driven maybe by scaling in the AP payments business is it possible as that continues we continue we could continue to see 30% plus growth potential and then maybe just as like the offset with mail churn I think you mentioned that we're going to be lapping some pricing changes. So is it possible that we start to see some declines in that.

Tailor McGinnis: And that business. Thanks.

Speaker Change: Yes, maybe Ann Taylor, I'll kick us off and packaging with our Sandeep I think the strength that youre seeing is really the strength of the platform.

Tailor McGinnis: With all of our money offerings, whether it's.

Tailor McGinnis: Payments with estimates and invoicing to AP with Bill pay to line of credit right. All we now have an instant deposit we now have.

Tailor McGinnis: Really a very.

Tailor McGinnis: Large set of all money offerings that our businesses can leverage to be able to manage their cash flow and manage their business and I would also say.

Tailor McGinnis: We're starting to see our.

Tailor McGinnis: AI driven experiences.

Fuel what's possible when it comes to our money growth so that sort of number one but number two is also payroll we're seeing great mixed in payroll great strength in payroll and again it all comes down to the strength of our platform and particularly as we look at mid market. You know one of the things we touched on earlier.

Tailor McGinnis: With <unk> advanced and Intuit Enterprise suite, which serves the mid market, particularly with <unk> advance the <unk>.

Tailor McGinnis: Tache of payroll and payments is 12 points and nine points, respectively higher than <unk>. So that's the strength of that that you are seeing across all of our services and on mail chimp as we talked about earlier there are price increases that were lapping and we also just won.

Tailor McGinnis: Wanted to really call out the strength of our services minus mail chimp, while we bring <unk> to the.

Tailor McGinnis: The level of growth that we expect and if would you add anything.

Tailor McGinnis: The only thing I would add on the payment and payroll side is this is finally us engaging with the customer and across those offerings at the holistic money offering in a holistic workforce solution offering and this is what happens when you get the product teams and the go to market teams actually engaging.

Tailor McGinnis: One holistic portfolio. So that's really driving that strength and that shows up as you noted that as we shared that our payment volume was up 18% this quarter and as you recall it was 17% last quarter. So I was just trying to show up in our results and looking forward at Tucson shared mid market should be increasing contributor to this not just because of the higher Tushar you mentioned.

Tailor McGinnis: But these customers are larger but they are also bringing more volume onto our platform.

Speaker Change: Great. Thanks, so much the thoughts.

Tailor McGinnis: Very welcome.

Speaker Change: We'll go next to <unk> <unk> with RBC capital markets.

Tailor McGinnis: Wonderful thanks, so much for taking my questions.

Speaker Change: Continued success in the business I just wanted to ask a follow up on Ies really nice to see the early traction here.

Speaker Change: We're to think about some of the early customer wins that you highlighted during your prepared remarks are you typically landing greenfield with a lot of these opportunities or are there.

Speaker Change: Wins that you have where you're consolidating budget and displacing a number of different point solutions and maybe alongside that when we think about early customer feedback has there been any push points on additional functionality that customers are looking for that informs your future roadmap with Ias. Thanks.

Speaker Change: Yes, thanks for the question and I'll try to hit on all the different elements that you asked about first of all I'll start with this is a $90 billion total addressable market that we are going after and we.

We have about 800000 of these customers already in our base and then they have these 800000 of the characteristics of a larger businesses over $2 5 million in revenue multi entity that has a knee for either <unk> advanced and or Intuit enterprise suite.

Speaker Change: First and foremost we're we've started has been really focused on our own base and focus on our accountant partners and that's where we've seen the momentum in the acceleration and and in those cases, we have in fact displaced point solutions for sure because the power.

Speaker Change: All the Intuit enterprise suite from the lens of the customer is.

Speaker Change: When all of their kids there the work that they do from estimate to invoicing the payments to bill pay to payroll time tracking depending on the type of business when its all in one place. We then can leverage all of the our AI capabilities to actually make recommendations to the customer.

Speaker Change: That can help them make growth decisions.

Speaker Change: Resource reallocate based on how different segments are performing so the customer is actually motivated.

Speaker Change: To switch from all of their point solutions to Intuit Enterprise suite.

Speaker Change: That's really number one number two they see significant cost savings and time savings are when they do that because generally although they will pay more than they passed today. If they are an existing customer they'll pay significantly more with intuit enterprise suite, they actually end up saving money when they go from different point solutions to Intuit Enterprise suite.

Speaker Change: Well, we're starting to see is actually.

Speaker Change: Accountants and businesses that are on competitive solutions come to us and want to switch to enterprise suite, just because of again the ease of experience is very user friendly the total cost of ownership and ultimately the price.

Speaker Change: So with all of that said the <unk>.

Speaker Change: Majority has been just focused on our own base, but we are beginning.

Speaker Change: To just shift to not only going after those that are greenfield and greenfield by the way. It means that you are just using a bunch of different apps, none of the I've talked to each other you are spending a lot of money, but you don't really know how your business is performing to switching to one digital platform, we consider that non consumption in greenfield and that's where the majority of the the the money is spent in <unk>.

Speaker Change: Tam and that's where the majority of our opportunity will come from as we sort of look at the next several years.

Speaker Change: Okay wonderful thank you.

Speaker Change: Very welcome.

Speaker Change: And our last question today comes from Scott Schneeberger with Oppenheimer. Please go ahead.

Scott Schneeberger: Thanks very much.

Scott Schneeberger: The tax question essentially to.

Scott Schneeberger: Revenue per return and scary the first part of it.

Speaker Change: Change your timber clarify full service pricing to the traditional tiers that you've used with other products more to form based pricing and you noted a very high customer experience for in full service just curious how thats being received do you think it's the right formula now for that product and then the follow up question.

Scott Schneeberger: <unk> hundred 99 cases this year.

Scott Schneeberger: Now that we're about a month into the tax season are you seeing the pick up there with the lower threshold.

Scott Schneeberger: For those who are to go out and and how might that have an impact on revenue per return in this tax season. If in fact, you are seeing that significant volume pick up thanks, so much.

Speaker Change: Yes, Scott. Thanks for your question, let me make one a couple of.

Speaker Change: Broader points one of the one of the things that we've done this year based on all of our investments in data and AI is we actually have AI driven personalized lineup experiences. So that for instance, if you go on our any of our front doors and look to see what our lineup is and have sandeep and I go well.

Speaker Change: They're all going to see very different things and so the days of the past where there was a lineup and everybody sees the same lineup no longer exists and it's important for you to know that because we've gotten a lot of questions like for instance on our standard SKU. The reality is many people don't even see our standard SKU its customers with certain situations.

Speaker Change: That's where our data and AI platform will land them in the right experience, that's partly why we're actually getting.

Speaker Change: I would say there.

Speaker Change: With both simple and complex filers and how we're monetizing because we're really putting customers in the in the right experiences and that really.

Speaker Change: That comment transcends into the assisted segment, which is why I wanted to start there and to answer your question I mean, I think the product recommendation score says a lot and 85 product recommendation score is just one of the highest in any industry and our experience.

Speaker Change: Our price and access the money is very much resonating with our with full service full service customers and we're actually.

Speaker Change: I'm quite excited about the rest of the season and that by the way include.

Speaker Change: Small businesses are we're.

Speaker Change: We're seeing nice uptake with small businesses that are using full service not just our consumers.

Speaker Change: And last thing is just both the comment.

Speaker Change: Sandeep made earlier, because we've gotten questions on it and 10 99 unfortunate situations La 10, 90 nines. We just think it's material we may see a lot of uptake the rest of the season, but.

Speaker Change: We are we don't we view both of them is immaterial.

Speaker Change: Thanks for sharing that congrats on the quarter.

Speaker Change: Yep.

Speaker Change: Thank you.

Speaker Change: This does conclude today's question and answer period, I will now turn the call back over to our presenters for any additional or closing remarks.

Speaker Change: Awesome well. Thank you so much for all the great questions and be safe out there and we will look forward to seeing you next quarter bye everybody.

Speaker Change: Ladies and gentlemen, thank you for participating this concludes today's conference call.

Q2 2025 Intuit Inc Earnings Call

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