Q3 2025 Intuit Inc Earnings Call
Good day, everyone. My name is David now will be your conference operator at this time I would like to welcome everyone to Intuit's third quarter fiscal year 2025 conference call.
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 that time simply press star and the number one on your telephone keypad. It feels like to withdraw your question you can press star into.
Speaker Change: With that I'll now turn the call over to Kim Watkins Intuit's, Vice President of Investor Relations Ms. Watkins.
Kim Watkins: Thanks, David.
Kim Watkins: Good afternoon, and welcome to Intuit's third quarter fiscal 2025 conference call.
Speaker Change: Here with Intuit CEO, Tom Good RC and our CFO Sandeep <unk> Sheila.
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. 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.
Speaker Change: 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 statements.
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.
Speaker Change: Copy of our prepared remarks, and supplemental financial information will be available on our website. After this call ends and with that I'll turn the call over to Siobhan.
Siobhan: Thanks, Ken and thanks to all of you for joining US today, we delivered an exceptional quarter with revenue growth of 15% driven by outstanding performance across our platform.
Speaker Change: As a result, we're raising guidance across all total company metrics, including revenue operating income operating margin and earnings per share.
Speaker Change: The strength across the company is driven by our global AI driven expert platform strategy powering prosperity for consumers small and mid market businesses and accountants, our pace of innovation is accelerating enabling our virtual team of AI agents and AI enabled human experts to redefine what's possible.
Speaker Change: We're feeling the financial success of approximately 100 million customers.
Speaker Change: By automating everyday tasks, managing complex workflows and processes and solving challenges before they arise with predictive insights and taking action today.
Speaker Change: Today I'll focus on three areas our outstanding tax result, our innovation delivering done for your experiences on the business platform and progress in the mid market.
Speaker Change: Starting with tax I am proud of the outstanding results, we delivered and the learnings we gained that will help fuel durable growth in the future.
Speaker Change: We expect consumer with rapid growth.
Speaker Change: Consumer group revenue to grow 10% this year.
Speaker Change: This is driven by an expected 24% growth in turbotax live customers, resulting in 47% growth in turbotax live revenue well above our long term expectation of 15% to 20% revenue growth.
Speaker Change: With our investment in data AI and AI enabled human expertise, we are disrupting the assisted category with experiences that are resonating with customers across both consumer and business tax.
Speaker Change: We also made significant progress unlocking a seamless customer experience across turbotax and credit Karma, which is expected to deliver a point of consumer group revenue growth. This year showcasing the power of our consumer platform.
Speaker Change: Exceptional result are fueled by strong execution of our strategy to win is an AI driven expert platform by delivering the best experience speed the money and the best price for our customers.
Speaker Change: This tax season data and AI powered many elements of our customer experience.
Speaker Change: <unk> done for your experiences drove a 12% reduction in the average time, a customer spent on their return with more than half of our do it yourself and do it with me customers completing their return in under one hour.
Speaker Change: This includes expanding data in from over 200 partners to cover 90% of our customers most common tax documents up from 68% last year.
Speaker Change: Our AI capabilities also help guide customers through the offering it was right for them whether filing on their own or having our AI enabled human expert complete their return for them and as little as two hours.
Speaker Change: Our data and AI platform capabilities had a profound impact on the productivity of our experts by doing a lot of the work for them and helping them finished returns quickly and accurately they spend more time engaging and onboarding customers.
Speaker Change: For our full service offering we saw double digit improvement in conversion and an approximate 20% reduction in the amount of time and expert spent preparing a return.
Speaker Change: Our results also demonstrate the incredible opportunity to win as one consumer platform with Turbotax and credit Karma.
Speaker Change: Our seamless zero click log and was available to approximately 70% of credit Karma members. This season up from 5% last season.
Speaker Change: This drove new customers the turbotax with 22% of these customers choosing our live offerings.
Speaker Change: In addition, we facilitated faster access to more than $12 billion in refunds with our money innovation, including our up to five days early offer and refund advances in our consumer platform.
Speaker Change: This is the power of our platform at scale.
Speaker Change: I am proud of what the team delivered this year.
Speaker Change: We have new insights momentum and are well positioned to disrupt the 35 billion assisted tax category in the years ahead.
Speaker Change: Let me now turn to the business platform, where we are seeing strong momentum in making progress delivering done for your experiences with expertise. Our focus is on automating tasks and workflows and entire processes connecting customers to AI enabled human experts for that last mile of decisions or to complete the work for them.
Speaker Change: Are done for your experiences are resonating with customers with nearly a quarter of our invoicing customers now having used AI generated invoice reminder, since we launched in November.
Speaker Change: With these capabilities, we're seeing more than 10% higher payment conversion rate on overdue invoices when customers use AI generated invoice reminders versus when they don't we.
Speaker Change: We also saw a <unk> increase in Quickbooks live connecting customers to AI enabled human experts.
Speaker Change: Let's now shift to the next chapter of great.
Speaker Change: We are soon launching transformative innovations across our business platform to help our customers achieve success with less effort and complete confidence.
Speaker Change: Accomplish this we'll be introducing a broader set of end to end AI agents, including customer payments.
Speaker Change: Project management and accounting agents to take the next large step in delivering done for you experiences.
Speaker Change: Coupled with insights and recommendations to grow and run a business.
Speaker Change: Our goal is to solve challenges before they arrive with predictive insights.
Speaker Change: Smart action on our customers' behalf and seamlessly connect them to AI enabled human experts when needed with customers always in control. This includes AI agent specific to our mid market offerings. During the work for businesses and accountants saving them time, delivering insights and assisting with decisions to ultimately fuel their growth.
Speaker Change: We are building these AI agents to help customers get paid faster.
Speaker Change: Uncover new growth opportunities and improve productivity by reducing the tedious and repetitive tasks of running our business.
Speaker Change: We plan to introduce a refresh end to end platform that complete key jobs all in one place with a virtual team of AI agents being much of the work side by side with our customers with these new experiences we are evolving our product lineup and pricing for value. This will be introduced in the coming <unk>.
Speaker Change: <unk>.
Speaker Change: Turning to mid market, we continue to make strong progress serving mid market customers, which represents an $89 billion Tam we're focused on winning as an AI driven expert platform to fuel the success of customers with $2 5 million to $100 million in annual revenue with <unk> advanced into an enterprise suites.
Speaker Change: And our ecosystem of connected services.
Speaker Change: This is an accounting firms are over digitized, they're paying two minutes that were paying too many solutions and that don't talk to each other and they are spending too much time trying to connect data to understand what's happening in their business without enough benefit.
Speaker Change: Intuit's platform is becoming a one stop shop, where they can see the performance of their entire business in one place, giving them the insights they need to better run their business.
Speaker Change: This is why mid market customers across industries, including construction.
Speaker Change: Services legal services management consulting financed and churn are choosing Intuit enterprise suite.
Speaker Change: We recently signed a deal with an 18 entity title company as the company outgrew Quickbooks, it's switched to a larger competitive ERP solution. However, just after two months after migrating the company returned to Intuit to use Intuit enterprise suite, despite already making a significant investment in their new ERP.
Speaker Change: Yes.
Speaker Change: The company found is.
Speaker Change: A significant value and Intuit enterprise suite, including a seamless integration with apps. The company was previously using and the consolidated reporting on other multi entity features the company needed.
Speaker Change: All in one place without unnecessary complexity.
Speaker Change: In addition, being able to add merchant marketing capability has strengthened the overall value proposition of Intuit enterprise suite for this customer.
Speaker Change: We're accelerating progress delivering innovation on Ias to quarterly product releases, which we believe will help us more effectively penetrate a larger portion of our Tam and better serve customers across a variety of verticals.
Speaker Change: Our March product release added features to further accelerate how our customers manage their growth and profitability.
Speaker Change: These include new multi entity expense allocation capabilities that reduce manual work by simplifying transaction management between entities and new multi entity hub, where customers can easily monitor kpis, such as sales expenses and profits across entities all in one place enabling them to make faster decisions.
Speaker Change: And new dimensional P&L tools that help customers build more robust forecast that helped unlock more in depth analysis and better decision making.
Speaker Change: We're also strengthening our partnership with the largest accounting firms as we evolve our go to market strategy.
Speaker Change: I've been meeting with many of these accounting firms and see firsthand the growing excitement and Intuit enterprise suite.
Speaker Change: The offering is helping accountant started their business customers more efficiently and helping them grow their practice profitability, we're partnering with them to serve mid market customers in our invested in their success as a result accountants have driven approximately 15% of all Intuit enterprise suite deals.
Speaker Change: Wrapping up I'm proud of the momentum in our business and the grit of our team and more importantly, the inspiration we get every day from all the customers we serve.
Speaker Change: This quarter, we were recognized by fortune as one of America's most innovative companies and with our culture of builders igniting innovation, we are well positioned to win as an end to end platform now let me hand, it over to Sandeep.
Sandeep: We delivered a strong third quarter of fiscal 2025 across the company. Our third quarter results include revenue of $7 8 billion up 15% GAAP operating income of $3 7 billion up 20% non-GAAP operating income of $4 3 billion.
Sandeep: Up 17%.
Sandeep: GAAP diluted earnings per share of $10 <unk> up 19%.
Sandeep: And non-GAAP diluted earnings per share of $11 65.
Sandeep: 18%.
Sandeep: Now turning to our business segments.
Sandeep: Consumer group revenue of $4 billion grew 11% in Q3, and we expect it to grow approximately 10% this year.
Sandeep: Outstanding tax performance reflects strong execution against our strategy to win as an AI driven expert platform by delivering the best experience speed to money and best price for customers.
Sandeep: We made significant progress against our strategic priorities of disrupting the assisted tax category and winning in the DIY category.
Sandeep: This year, we expect turbotax live customers to grow 24% and revenue to grow 47% accelerating 13, and 30 points respectively.
Sandeep: Outstanding results reflect success with AI enabled personalized experiences that guide customers to the offering right for them and strong customer growth in a full service consumer and business tax offerings.
Sandeep: <unk> overall corporate tax slide growth.
Sandeep: Our limited time free mobile App offer resonated and brought new customers into the franchise, many of whom opted for our beneficial pay services.
Sandeep: We expect total online paying units to grow 6% this year on share gains from higher AARP our filers.
Sandeep: Saw strong monetization across simple and complex filers, driving and expected 13% increase in average revenue per return.
Sandeep: Our PR as more customers choose our assisted offerings and faster access to refunds.
Sandeep: We expect pay nothing customers of approximately $8 million down from our over $10 million last fiscal year.
Sandeep: This reduction is a result of optimizing marketing ROI and shifting our focus towards disrupting assisted tax which resulted in yielding share with lower quality AARP customers as anticipated.
Sandeep: We expect online Turbotax unit to decline approximately 1% this year and our share of total returns to decline approximately one point in summary.
Sandeep: Incredibly proud of our performance this season, particularly the progress we've made transforming assisted and a 47% growth. We expect in turbotax live revenue, representing approximately 40% of consumer group revenue, we see a long runway ahead for growth.
Sandeep: Turning to the pro tax group revenue grew 9% in Q3 for the full year, we expect protest group revenue growth of 324%.
Sandeep: Based on our strong performance in test. This season, we are raising our guidance for fiscal 2025 revenue growth for our consumer group to 10% from 7% to 8% previously I am proud of the progress. We've made this season and the learnings, we gained which reinforce our confidence in the future.
Sandeep: Moving on to the business platform.
Sandeep: Global business solutions group revenue grew 19% during Q3, driven by online ecosystem revenue growth of 20%.
Sandeep: 24%, excluding mail chimp.
Sandeep: This momentum in our online ecosystem demonstrates 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 our robust growth was largely consistent with prior quarters and broad based across online accounting and online services.
Sandeep: Quickbooks online accounting revenue grew 21% in Q3, 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 innovation, which we expect to continue to drive strong RPC.
Sandeep: Growth.
Sandeep: Online services revenue grew 18% in Q3 or 29% excluding mail chimp growth in Q3 was driven by money, which includes payments capital and bill pay as well as payroll.
Sandeep: 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.
Sandeep: As well as Quickbooks capital revenue growth.
Sandeep: Total online payment volume growth in Q3 was 18% or 20%, excluding the leap day last year, representing an acceleration from Q2.
Sandeep: Within payroll revenue growth in the quarter reflect customer growth mix shift and higher effective prices.
Sandeep: Within mail Chimp revenue was relatively flat versus a year ago. As we have shared previously we expect it to take several quarters to deliver improved outcomes at scale. In addition to ensuring the merchant offerings resonate with our core small business customers. We continue to make progress with mid market customers, where we can.
Sandeep: Delivered the platform benefit such as the Ies customer. So some cited earlier that is also using merchant we remain confident in and are executing on our vision of an end to end business platform that integrates the power of mail chimp and cookbook services, enabling our customers to both run and <unk>.
Sandeep: Growth their business all in one place.
Sandeep: As we have shared previously we have been as a platform our online ecosystem revenue growth reflect the progress we are making with our strategy of serving both small and mid market businesses with more complex needs.
Sandeep: This represents an addressable market of over 180 billion roughly half of which is mid market in Q3 online ecosystem revenue grew 20%, including approximately 40% growth in R&D ecosystem revenue for <unk> advanced and Intuit Enterprise suite.
Sandeep: Service mid market.
Sandeep: Online ecosystem revenue for small businesses and the rest of the base grew a strong 17%.
Sandeep: Excited about our progress in serving mid market customers, while continuing to focus on smaller businesses.
Sandeep: Looking ahead, we expect online ecosystem revenue growth to accelerate to approximately 21% in Q4 and to grow approximately 20% in fiscal 2025.
Sandeep: Turning to desktop during Q3 desktop ecosystem revenue grew 18% and cookbooks desktop enterprise revenue grew in the high Twenty's.
Sandeep: As a reminder, quarterly desktop ecosystem revenue growth trends in fiscal 2025 to reflect the offering changes we made in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates.
Sandeep: We expect desktop ecosystem revenue to grow in the mid single digits in fiscal 2025.
Sandeep: Based on our strong progress throughout the year, we now expect GBS revenue in the upper band of our previous guidance, representing 16% revenue growth for fiscal 2025. This guidance reflects more than a point of headwind from lower military revenue growth than we anticipated at the start of the <unk>.
Sandeep: Full year.
Sandeep: Excluding mill Chimp, we are seeing strong performance across the rest of our business platform.
Sandeep: Moving to credit Karma.
Sandeep: <unk> revenue grew 31% in Q3, reflecting strength in credit cards personal loans and auto insurance on a product basis credit cards accounted for 14 points of growth personal loans accounted for 12 points in auto insurance accounted for three points.
Sandeep: As a reminder, in Q3, we began lapping the strong growth in auto insurance that began a year ago.
Sandeep: <unk> mentioned earlier, we expect credit Karma to driving point of consumer group revenue growth. This fiscal year as we execute on our vision of one consumer platform.
Sandeep: Seamless customer experience across turbotax and credit Karma.
Sandeep: Based on our continued strong momentum in credit Karma, we have ray.
Sandeep: Using our guidance for fiscal 2025 revenue growth to 28% from 5% to 8% previously.
Sandeep: In summary, I am pleased with our momentum this fiscal year and our opportunities.
Sandeep: Shifting to our balance sheet and capital allocation.
Sandeep: Our financial principles guide our decisions to remain a long term commitment and are unchanged.
Sandeep: We finished the quarter with approximately $6 2 billion in cash and investments and $6 4 billion in debt on our balance sheet.
Sandeep: We repurchased $754 million of stock during the third quarter.
Sandeep: 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.
Sandeep: The board approved a quarterly dividend of $1 <unk> per share payable on July 18, 2025. This represents a 16% increase per share versus last year.
Sandeep: Moving on to guidance.
Sandeep: We are increasing our fiscal 2025 total revenue operating income implied operating margin and earnings per share guidance. This includes the revenue growth of 15% up from prior guidance of 12% to 13% growth.
Sandeep: GAAP operating income growth of 35% up from prior guidance of 28% to 30% growth and reflecting a 390 basis points of margin expansion versus prior year.
Sandeep: non-GAAP operating income growth of 18% up from prior guidance of 13% to 14% growth and reflecting a 100 basis points of margin expansion versus the prior year.
Sandeep: GAAP diluted earnings per share growth of 26% to 27% up from prior guidance of 18% to 20% growth.
Sandeep: non-GAAP diluted earnings per share growth of 18% to 19% up from prior guidance of 13% to 14% growth.
Sandeep: Our guidance for the fourth quarter of fiscal 2025 includes <unk>.
Sandeep: Total company revenue growth of 17% to 18%.
Sandeep: GAAP earnings per share of 84 to 89.
Sandeep: And non-GAAP earnings per share of $2 63 to.
Sandeep: <unk> to $2 68.
Sandeep: We continue to leverage AI to operate more efficiently and increase.
Sandeep: <unk> across the company.
Sandeep: The impact we are seeing from implementing <unk> capabilities across our platform bolsters our confidence in our ability to continue to grow operating income faster than revenue, including the 100 basis point margin improvement, we expect this fiscal year, while investing in growth.
Sandeep: You can find our full fiscal 2025, and Q4 guidance details in our press release and on our fact sheet.
Sandeep: Before I close I want to share my thoughts on the <unk>.
Sandeep: Certain macro environment, we are consistently hearing from customers. The mission critical nature of our offerings is helping them grow their business make better decisions and improve cash flow.
Sandeep: With the breadth of our platform and diversity of our customer base and the insights we gain from a data we are confident in our ability to manage through uncertainty.
Sandeep: I am proud of the strong growth we are delivering this fiscal year, our progress using AI across our platform gives us further confidence in our ability.
Sandeep: To grow our revenue and operate more efficiently over time, enabling us to invest in growth, while continuing to expand margins in fiscal 2025 and beyond.
Sandeep: With that I'll turn it back over to Susana. Thank you Sandy Intuit is on its way to becoming a one stop shop powering the prosperity of consumers businesses and accountants with our AI driven expert platform delivering done for your experiences.
Sandeep: Given our early bet on AI and the significant investments we've made in the last decade.
Sandeep: Data AI and AI enabled human experts, we are positioned extremely well to fuel our customers' growth and save that money. We see an incredible opportunity ahead to further penetrate our massive 300 billion total addressable market and particularly to accelerate serving small and mid market businesses.
Sandeep: With that context, we are doubling down on our focus on the three most critical areas and the global business solutions group, including small business mid market and services, which include money and workforce solutions.
Sandeep: Going forward each of these areas will be led by a proven leader reporting directly to me.
Sandeep: Mariana Tesla has done an incredible job setting us up to win as an end to end platform and going forward. She will lead small business, which includes our quickbooks and merchant businesses.
Sandeep: Phil will lead mid market she joins us from Adobe, where she held senior leadership roles for more than 10 years. During her tenure she grew document cloud and Adobe second largest business.
Sandeep: Most recently she led the creative cloud business to $13 billion in revenue growing double digits and serving a range of customers from individual creators to large businesses.
Speaker Change: David Hohn has a strong leader with decades of experience, leading business and product teams at scale over the last 18 months under his leadership, we have brought to market critical innovation to our customers across our money offerings delivering nearly 40% online revenue growth year to date moving forward David will lead services.
Speaker Change: System of money and workforce solutions, serving both small and mid market businesses together. They remain part of our global business Solutions Group reporting segment. These changes will drive increased focus on velocity on our biggest growth opportunity to help us accelerate winning as a business platform.
Speaker Change: And wrapping up we have exceptional momentum across the company our platform is increasingly becoming more mission critical than ever to our customers. We are confident in our long term growth strategy, including double digit revenue growth and operating income growing faster than revenue and we have a long runway ahead of US now, let's open it up to you.
Speaker Change: Questions.
Speaker Change: Yes.
Speaker Change: Absolutely, ladies and gentlemen, fueled linked to ask a question. Please press the star and the number one on your telephone keypad. If you would like to withdraw your question. Please press star and two we ask that you limit yourself to one question.
Speaker Change: As we'd like to get as many people as we can.
Speaker Change: We'll take our first question from Citi pending Gras with Mizuho. Please go ahead. Your line is open.
Speaker Change: Thank you.
Speaker Change: And congratulation on a great quarter.
Speaker Change: I think outstanding consumer are.
Speaker Change: Tax business so.
Speaker Change: My question is of course last two years has delivered.
Speaker Change: 8% growth now double digit grower.
Speaker Change: And then the light revenue, 47% and if I heard correctly for the service again outpaced that so what have you learned this year in your strategy.
Speaker Change: And how sustainable is this given that you are barely penetrated into our system to further drive this double digit growth.
Speaker Change: Yes. Thank you first of all I want to just commend our team across the entire company with the grit and the focus.
Speaker Change: To deliver for our customers.
Speaker Change: City I would just say.
Speaker Change: Lot of things works.
Speaker Change: Really the focus that we had was to win on experience.
Speaker Change: To win on price and to win on fastest access to money.
Speaker Change: And the investments that we've been making on the platform where data AI agents and AI powered human experts can do the work for our customers really knocked the ball out of the park or.
Speaker Change: Our conversion was up double digits.
Speaker Change: As you heard from Sandeep Ni, a full service consumer and business tax at outsized growth.
Speaker Change: Karma contributed to a point of growth based on all of these seamless experience improvements that we that we made and over 20% of those customers.
Speaker Change: Turbotax live customers.
Speaker Change: And a lot of the work that we did in <unk>.
Speaker Change: The market in terms of how we shape the category, how we showed up on air how we showed up digitally how we showed up locally.
Speaker Change: And as you saw this year and the IRS data.
Speaker Change: That actually grew faster than DIY, and we had a hand in that so I feel very good about our progress it was truly a breakthrough adoption year that we've been waiting for.
Speaker Change: And we're really excited about the future and not just because of our result, because but because actually what didn't work.
Speaker Change: There is a lot of work that we did that created a lot of traffic from prior assisted customers.
Speaker Change: But there's a lot we learned where there was still a lot of friction in their experience to use an example.
Speaker Change: When you rollout.
Speaker Change: The tax pro near me and we showed up.
Speaker Change: You ended up falling on a landing page and the first thing you had to do was authenticate well. The first thing you need to do is connect to an expert and so those are that's just an illustrative example, where although we improve the experience and a superior when compared to last year. There is still so much that we can do to make the end to end experience seamless.
Speaker Change: And Thats, what gives us a lot of confidence looking ahead and the sustainability of what's possible. When we think about the consumer group performance.
Speaker Change: That's great. Thank you.
Speaker Change: Yes, Youre very welcome.
Speaker Change: We will take our next question from Brad Zelnick with Deutsche Bank. Please go ahead. Your line is open.
Brad Zelnick: Great. Thank you so much and congrats again on a spec.
Brad Zelnick: Spectacular.
Brad Zelnick: The tax season and guide for the full year.
Speaker Change: I want to follow up on <unk> question, and specifically drill into the 47% growth in live in full service.
Speaker Change: Well exceeded our expectations and it seems to really validate your disruptive assisted strategy can you maybe further unpack the performance just to understand what really drove this and maybe within that the turbotax offices and local strategy.
Speaker Change: Maybe where you might be constructively dissatisfied and what remains an opportunity for the seasons ahead. Thank you.
Speaker Change: Yes, Brett first of all thank you for your kind words and your question I would.
Speaker Change: Really put it in the bucket of three things one typically customers that we may have lost in the past because there was a life change.
Speaker Change: They bought a home or they sold more stock and they just felt like I'm not sure I can do my taxes. This year. We just did a lot of work to make sure that our own customers actually are aware that our platform now comes with experts whether you just want a holding hands. Our you want somebody to do it for you. So we saw adoption within our base.
Speaker Change: I think the second thing I would just say as we saw breakthrough adoption are.
Speaker Change: New customers in full service across both by the way consumer and business, we see business tax as a massive opportunity along.
Speaker Change: With consumer tax so that really we saw outsized growth and impact this year Ted.
Speaker Change: <unk> two to answer your question of what we're constructively dissatisfied with Theres two sides of the coin a lot of what we did in our go to market campaign to bring interest from those that last year had somebody else do their taxes for them. It works.
Speaker Change: We saw unprecedented traffic, but as I mentioned in answering <unk> question. It was very basic things that we learned although we significantly.
Speaker Change: Improve the platforms that once you got to ask you immediately got engaged with an expert.
Speaker Change: Well, we have room to improve.
Speaker Change: If you did a search.
Speaker Change: Or if you saw that we have a local office the FERC. The first thing you needed to do was to authenticate.
Speaker Change: Any of these prior year assisted customers. They are not used to the first thing they need to do is authenticate. That's a software approach versus a service led approach, but that's an example, but it's a big example of where we saw a lot of fall off this year.
Speaker Change: And we know exactly what we need to do to improve that experience was actually by the way it started improving at towards the end of tax season, but that's an area, where we're constructively dissatisfied at an area that gives us a lot of.
Speaker Change: I would say inspiration in terms of what's possible as we look ahead.
Speaker Change: Fantastic that was really helpful. Thanks again.
Brad Zelnick: Yes, Thank you Brad.
Speaker Change: We'll take our next question from Alex Zukin with Wolfe Research. Please go ahead. Your line is open.
Alex Zukin: Hey, guys. Thanks for taking the question and.
Speaker Change: Congrats to Mr. Zeller for the constructively dissatisfied I'm going to have to take that one.
Speaker Change: And use it for other questions.
Speaker Change: But so far I'm going to ask you the AI question and I'm going to ask it two ways first maybe just clarify the launch around these new age gender offerings the opportunity set that that.
Speaker Change: This brings you into what kind of pricing model Youre contemplating is there a broader pricing opportunity that you now have on the small business solutions segment and on the Opex side.
Speaker Change: How persistent is the current level of head count because.
Speaker Change: To some extent youre starting to reap the benefits of AI from an efficiency gain perspective, so maybe just walk through how that helps you bend the curve on on Opex going forward from here.
Speaker Change: Sure I'll get us started and we're just invite sandeep if he wants to add anything great great set of questions.
Speaker Change: First of all the launch that I alluded to is a really big deal.
Speaker Change: And what we're about to launch is extremely hard.
Speaker Change: Because in essence, what we're launching is.
Speaker Change: The next step and creating a one stop shop.
Speaker Change: Where we do the work for our customers and what we're launching is a set of AI agent.
Speaker Change: NII enabled human experts that are doing the work for customers very specifically, we are launching a customer AI agents a payments AI agents.
Speaker Change: A project management AI agents, a accounting AI agent and what's remarkable about the work that the team has done.
Speaker Change: Is that these agents talks to each other that is not an easy thing to pull off and so what that will do for the customer is the customer agent for instance, I will be able to go into a customer's E mail and decipher the hot leads for them and create a pipeline for them and help them manage those customers through the selling cycle.
Speaker Change: Payments agents actually focuses on cash flow and we will optimize money in and money out what does that mean the payments agent, we will do things like.
Speaker Change: And ensure that the customer has access to our lineup credit or instant deposit or go.
Speaker Change: Customers that invoices are due.
Speaker Change: We will create an estimate and invoice and get the customer paid the agents will do the work for the customer, but the agents also knows how far it can go and it will interact with a human expert. So for instance on the accounting agent, where it does a lot of the categorization for the customer.
Speaker Change: That agent has the ability to engage a human expert SaaS follow up questions. So they know what the <unk>.
Speaker Change: <unk> certain things correctly, so that machine learned the next time.
Speaker Change: Categorize something that was vague appropriately going forward. So that net net if you pull back this is.
Speaker Change: This is in context of what we declared more than a year ago and it's the next phase of now done for you, where we can do the work for our customers which gets too.
Speaker Change: The second point and that is that.
Speaker Change: The work the team has been hard at work in terms of the benefit orientation.
Speaker Change: And the impact and the ROI of what we are launching.
Speaker Change: And evolving our lineup with not only the benefits are.
Speaker Change: <unk>, what you get based on what you pick and what AI agents you get based on what SKU that you're in but also pricing that for value because the biggest thing that we've learned by talking to customers and being in market and doing testing is that what we're about to launch helps customers eliminate the use of other apps, which means in essence, they're getting more for their money.
Speaker Change: Benefits and actually less spending less money on other apps and spending it in one place with US. So one element is just pricing for value one for one the other element, which will I think show up more in our mid market offering across <unk> advanced <unk> into an enterprise suite is there will be certain module I won't name what they are.
Speaker Change: Just what youll need to wait for our launches coming up where based on the customer use the customer will actually pay Additionally for that module. So theres pricing one for one and then theres actually consumption and paying for the benefit of a module. That's ultimately how we are.
Speaker Change: Our thinking through pricing the last thing I would I would say is we've been very consistent in the last whatever decade.
Speaker Change: But particularly in the last several years that we are investing in data and AI for two reasons, one we want to reinvent.
Speaker Change: Experiences for our customers and we want to reinvent how we do the work internally. So we have a lot of based on just what you heard from Sandeep right. We have a lot of hot form leverage based on all of our automation in all of our AI investments.
Speaker Change: So not only make our own folks productive and how we manage opex, ensuring that we're investing enough in growth, but also expanding our margins and we just view. These are continued to be the early days of what's possible, but let me invite to see what sandy put out.
Sandy: Hey, Alex.
Speaker Change: Good question, let me open up the aperture a bit more on the on the question about AI and efficiencies I'll open up to our confidence and continue to expand margins as we demonstrated this year.
Speaker Change: The ability to expand our margin by 100 basis points.
Speaker Change: While bringing new innovations such as the agents us upon just walked through.
Speaker Change: While the scaling assisted tax to 47% revenue growth while building a mid market go to market capabilities are all a testament to us using technology, whether it's AI, whether it's automation is testament to our ongoing spend discipline and Thats. What gives me the confidence should give you the confidence in our ability to adhere to our.
Speaker Change: Principle to grow operating income faster than revenue. So I continue to feel good about it.
Speaker Change: Feel we have the right level of staffing and I think this will this ongoing efficiencies will help.
Speaker Change: Help us reduce our scaling of the head count.
Speaker Change: Less than what would have been without these efficiencies and the years to come.
Speaker Change: Excellent. Thank you guys.
Alex Zukin: Thank you Alex.
Speaker Change: We will take our next question from Raimo <unk> with Barclays. Please go ahead. Your line is open.
Speaker Change: Thank you congrats from me as well I wanted to just switch over to credit Karma and like very very strong results. Like if you think about where you started guiding the year, whereas as youre coming out with me.
Speaker Change: Like a very very big positive Delta can you speak a little bit about.
Speaker Change: You mentioned that drivers as road, but lake that seems like a big step up.
Speaker Change: In a way what did you learn about visibility for that business unit. Thank you.
Speaker Change: Thank you for the question Raimo on good credit Karma there are.
Speaker Change: Two things that are really driving this one is the continued stability in the macro but to a larger point. The majority of the results is driven by our execution teams work on integrating AI that's driving.
Speaker Change: Better connection of the right offers to further between the customer and our partners yielding higher RPC is also helping us with our innovations such as Lightbox take share of partner spend across credit card and personal loan and continue to innovate.
Speaker Change: <unk>.
Speaker Change: Sure and new segments, such as insurance. So this is what I internally referred to as generating management offer and it is that management Alpha that has set the business on a very different trajectory than what we were talking about 12 months ago.
Speaker Change: Okay perfect. Thank you.
Speaker Change: Very welcome.
Speaker Change: We will take our next question from Kash Rangan with Goldman Sachs. Please go ahead. Your line is open.
Speaker Change: Alright. Thank you very much it's super hard to go out so they can see okay.
Speaker Change: I ask all the good questions no I got it.
Speaker Change: It's really hard.
Speaker Change: Especially.
Speaker Change: I don't want to say first of all that.
Speaker Change: Granularity.
Speaker Change: And the level of detail of the presentation.
Speaker Change: So.
Speaker Change: Nice job there.
Speaker Change: Okay.
Speaker Change: Thank you for the question. So when you look at the cycle.
Speaker Change: We certainly have AI.
Speaker Change: Tailwind for you guys.
Speaker Change: Pricing.
Speaker Change: Arguably a much stronger position today than it was.
Speaker Change: If we are too.
Speaker Change: Downdraft of the tariffs.
Speaker Change: Thanks.
Speaker Change: What do you think.
Speaker Change: The pricing power of intuitive.
Speaker Change: Yes.
Speaker Change: Our opinion business space.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: I do not like DOCSIS not ask a tax question because you guys crush it.
Speaker Change: Okay.
Speaker Change: At this.
Speaker Change: Let's start with rock versus.
Speaker Change: Raising inflation rising rates.
Speaker Change: Doug.
Speaker Change: Thank you so much.
Speaker Change: The cash that first of all thank you for the kind words, we will pass it on to the to the team and great Great questions. Let me answer your question.
Speaker Change: Three buckets and let me just try to be brief about it.
Speaker Change: The first bucket is.
Speaker Change: If you look at it into it more than 90% of the company is reoccurring revenue and subscription based.
Speaker Change: And we are mission critical to what customers need to do to manage their life, whether it's actually as a consumer their taxes and getting access to money and as a business. We are the core platform that they use to grow in and run their business. So that's sort of the first bucket and we're actually in many ways.
Speaker Change: More resilient than we were years ago, we were serving the same customers offer we're serving a larger more diversified set of customers and 90% of the company's reoccurring and subscription based so that's bucket one.
Speaker Change: In bucket that I would tell you is when we look at the assisted tax segment, both consumers and businesses and mid market. We are actually the low cost disruptor.
Speaker Change: As I'm out there talking to large accounting firms and larger businesses.
Speaker Change: They are over digitized they are overspending on a bunch of different apps. Their data is locked up in a bunch of different apps. They don't know how their business is performing.
Speaker Change: Sending more time trying to figure out what's going on and more money and we are.
Speaker Change: It may have even more conviction around what is possible around disrupting mid market and moving even faster because we actually save our customers money, we increased our ROI and they pay us less than.
Speaker Change: And then they pay for all of the apps. They use today that 18 entity title company. We used as an example, just one example.
Speaker Change: <unk> customer that falls exactly into that bucket.
Speaker Change: And the same thing when it comes to taxes for businesses and for consumers. We went on experience. We went on price and we went on access to.
Speaker Change: So your refund your money and so when you look at those.
Speaker Change: Three things that I mentioned reoccurring subscription base, the assisted tax segment and mid market. We are incredibly resilient because we're actually.
Speaker Change: The price disruptor, and therefore, we have a lot of RPC.
Speaker Change: Tailwind as we look ahead. So that's the way we think about it the way we run the company and that's how we think about our resiliency.
Speaker Change: We will take our next question from Kirk <unk> with Evercore ISI. Please go ahead. Your line is open.
Speaker Change: Yes.
Speaker Change: Congrats on a really strong quarter Susana just wondering or I guess like the example, you gave on Intuit enterprise services about the about the Boomerang customer was an interesting one because I think a lot of us think about the.
Speaker Change: Market for you all.
Speaker Change: Thank you.
Speaker Change: And your customers in your ecosystem.
Speaker Change: Now that you've had the strongest market for longer are you starting to see more opportunities like that where you can go in.
Speaker Change: Claims customers in medical.
Speaker Change: The ecosystem 612 months ago, maybe even start to replace other vendors that are out in the market. I was just kind of curious if your perspective on that has changed at all over the last six six months or so thanks.
Speaker Change: Yes, Kurt Thanks for Thanks for your question I think the short answer is no. Our perspective has not changed and let me just.
Speaker Change: Refresh.
Speaker Change: <unk> areas we have.
Speaker Change: A huge base of customers that.
Speaker Change: Have the opportunity to upgrade either to Quickbooks advanced which we view as mid market, that's emerging mid market or Intuit enterprise suite and all of the ecosystem of services that comes with it and these are customers in the $2 5 million in revenue up to $100 million in revenue and really that's been the focus.
Speaker Change: We built out our platform capabilities, that's been the focus as we built out our sales force, which is actually covering our own base.
Speaker Change: In parallel we will starting to build out our go to market to actually start hunting outside of our base.
Speaker Change: Example of that 18 entity title companies simply word of mouth.
Speaker Change: They heard about Intuit enterprise suite.
Speaker Change: And they started thinking about well now that that's available and it's the very reason why I left into it I should reconsider going back to into it and then when they assessed or why would I go back. They realize we are superior art experience were superior on price and were superior on the total cost of ownership when.
Speaker Change: When you think about how what it takes to upgrade or migrate to other ERP system. So that was just an example of word of mouth, that's starting to happen more and more it's still a smaller part of where our growth is coming from but it's just an indication of why which is why we use that in the earnings script to talk about what's possible as we start hunting for new outside of <unk>.
Speaker Change: <unk> of our base, but I'll end with where I started our what we've been sharing with you all which is where our focus is unchanged.
Speaker Change: Thank you.
Speaker Change: Very welcome.
Speaker Change: We will take our next question from Alan <unk> with Scotiabank. Please go ahead. Your line is open.
Speaker Change: Hey, guys. Thanks, so much for taking the question.
Speaker Change: I have another one to the congratulations bucket as a truly fantastic quarter. So far and you gave a lot of great color on the AI agents youre rolling out different ways.
Speaker Change: We're going to monetize them can you talk about how youre thinking about general pricing increases going forward in the context of the macro and separately.
Speaker Change: Maybe just update us on your confidence in the drivers.
Speaker Change: Behind being able to continue to grow GBS revenue over 15%.
Speaker Change: Yeah, well, let me let me.
Speaker Change: Your question in a couple of ways and I'll go back to one of the comments that I made earlier, which is I think the most important comment to takeaway in that is.
Speaker Change: Customers actually favorable.
Speaker Change: Larger customers are actually saving money.
Speaker Change: As they migrate more of their platform to us.
Speaker Change: And to be very specific without naming other apps. These larger customers can be using anywhere between three up to 15 applications to run their business and they are paying for each of those apps and what they've realized is they are actually now worse off than they were before when they were manual because there.
Speaker Change: They've got their data trapped in all of these apps. They don't really know how their business is performing they are actually getting less benefit and spending more money. So when you think about what I just articulated that we're rolling out.
Speaker Change: Yes, we're going to create value by in some cases, one for one price increases, but from a customer lens in some cases and in fact in most cases, they're actually paying less because they're there. They have now the option to stop using other applications because ultimately what we're trying to do with this refreshed platform and the AI agents that are going to be.
Speaker Change: The work is to actually create a business intelligence layer, where a customer can see how they are performing all in one place.
Speaker Change: Which is the power of the platform. So that gives us a lot of pricing opportunity because of the innovation from a customer lens. They are actually in many cases spending less money that's really important as you think.
Speaker Change: About what are our pricing power is as we think about customers that are even 500000 million and a half on revenue when you go above that.
Speaker Change: We're actually a price disruptor. So we have a lot of leverage to be able to think about higher RPC and higher pricing and the combination of all of that which is winning in serving small businesses winning in mid market. All the services capability that we have and then getting mail chimp to be accretive to.
Speaker Change: Growth, that's what gives us confidence around long term.
Speaker Change: Staying the ability of the growth of the business franchise.
Speaker Change: Very clear and exciting thank you Stefan.
Stefan: Thank you.
Speaker Change: We'll take our next question from Brent Thill with Jefferies. Please go ahead. Your line is open.
Speaker Change: Thanks, Sissonne, the turbotax breakthroughs that you've highlighted and good CNC machine earlier.
Speaker Change: What would you characterize this as the most impactful thing that really drove this magnitude of positive upside was there one or two things there's a multiple things.
Speaker Change: How would you unpack that.
Brent: Yes, Brent.
Brent: I would tell you.
Brent: A little bit of everything we've been doing not just this year, but over the years based on what we've learned and what we implement it works. It's not just one thing full service consumer and business tax.
Brent: Really I delivered at an outsized way.
Brent: Better conversion.
Brent: Better experts, our productivity well above where we were this time last year.
Brent: Breakthrough adoption of our of our experts and our own base.
Brent: And a lot of that just a go to market changes that we made.
Brent: Just about a little bit of everything works and I just wanted to emphasize the reason why we acquired credit Karma credit Karma was a big contributor not only in terms of the point of growth in tax, but just the early access to money, which really creates the platform our customers are engaging year round.
Brent: So as I said earlier, what we're most excited about because.
Brent: A little bit of everything works is actually the things that didn't work and and what gives us confidence as we look ahead.
Speaker Change: And that durability for next year, what kind of gives you confidence that now we just got through this and you want to take a victory lap for what you've just accomplished but the sense of durability now with Turbotax live into next year. What gives you that confidence is I know, we're a ways out, but what's giving you the continued confidence.
Brent: That that we're in a better position now with tax.
Brent: Well listen that we did our victory lap April 16th where over to al.
Brent: We've been on for next year, while we were in tax season. So thank you for reminding us of the victory lap but that.
Brent: We have done the laps around the building and then we're done where it moved onto the future.
Brent: And it's continuing to really do several big things, but it all starts with we wanted to get an experience we want to win on price.
Brent: Wanted to get an immediate and early access to your money.
Brent: And those are the end to end platform capabilities that allowed us to be where we are this year and what's possible looking at so there's a lot of walking back Sandeep and I were with the turbotax seem all day yesterday are reviewing all of the great work that they're doing to improve the platform and I commend the team because most of the day, we're focused on where they are constructively dissatisfied where we need to move.
Brent: Faster and.
Brent: And listen the thing you all need to think about it just end with really the essence of the question Youre asking.
Brent: Is.
Brent: Turbotax live is now 40% of the franchise and we always said when it gets to 50% plus right the growth formula flips and it changes and so what we said is we're going to grow turbotax live between 15% to 20% we have a lot of confidence in that range. We had an outsized year. This year in our focus is always to have an outsized year.
Brent: Like the year, we just had and please know that we are very focused.
Brent: Our next year and that focus started almost several years ago. So we have a lot of confidence as we think about a run rate here.
Brent: Great. Thanks.
Brent: You're very welcome.
Speaker Change: We'll take our next question from Michael <unk> with Wells Fargo Securities. Please go ahead. Your line is open.
Michael: Hey, great. Thanks, very much I. Appreciate you taking the question just on EPS growth, we're not seeing any high teens growth rates. There Sunday it would be good to hear you just speak through the impacts you are seeing across segments, whether any of the head count optimization, you entered the year with us presenting a bigger expansion opportunity. This year, just how you're thinking about the margin.
Speaker Change: Progression, both this year and into the future. Thank you.
Brent: Yes.
Brent: Thanks for the good question, Michael as I think about this year.
Brent: We saw in the margin was really across the board of course.
Brent: The strong revenue performance across each one of our businesses all of the businesses in essence hitting on all cylinders helped and then when it came to the operating expenses.
Brent: We have embedded utilizing technology utilizing AI utilizing automation throughout.
Brent: It works last quarter I shared the productivity gains we saw on the customer success organization, but beyond that that was just one example, we are seeing productivity gains and our technology organization, where developers are being able to call it up to 40% faster.
Brent: Embedding it across throughout the world.
Brent: Towards the finance organization.
Brent: Towards the marketing organization through sales organization.
Brent: And this is really still in the early chapters, so that's where it's giving me the confidence.
Brent: We have the ability to continue to scale. This business continue to invest in growth and continue to have.
Brent: Expenses grow sorry, operating income growth faster than revenue and deliver margin expansion to you all.
Brent: Thank you.
Speaker Change: We'll take our next question from Scott Schneeberger with Oppenheimer. Please go ahead. Your line is open.
Speaker Change: Thanks, Good afternoon, all and congratulations very nicely done.
Speaker Change: And in the tax category essentially two questions here, one could you touch on on the assisted category the outsized growth.
Speaker Change: For the industry I don't think any of us saw that coming this year and and your role in it you've touched on it but it would be great. If you could elaborate a little bit more there and then also on your marketing spend this year specifically in the consumer category.
Speaker Change: I think it was a little bit earlier, it might've been a little bit higher what were the learnings from what you did and did it did it play the way you expected. Thanks, so much.
Scott: Yes. Thanks for the question Scott I'll Tag team this with.
Speaker Change: Sandeep.
Sandeep Ni: On the assisted category listen you all know.
Sandeep Ni: Our story and what we're trying to do.
Sandeep Ni: When you look when you talk to customers consumers and businesses.
Sandeep Ni: For the most part have others do their taxes for them.
Sandeep Ni: Extremely manual.
Sandeep Ni: It's a long process, there's a lot of back and forth.
Sandeep Ni: There is a lack of transparency in terms of just knowing how much am I going to pay.
Sandeep Ni: And it's just sort of a box you don't know what's happening.
Sandeep Ni: And what we're doing is creating a new way.
Sandeep Ni: What's possible and being disruptive and disruptive in terms of.
Sandeep Ni: Really enabling consumers and businesses to focus on their life, while they while we virtually collaborate in an extremely seamless way to.
Sandeep Ni: To get their taxes done for them, but also.
Sandeep Ni: Guarantee them that they're going to pay less than they paid somewhere else and that we're going to give them early access or immediate access to their money. So.
Speaker Change: I know I, just played back our focus and the customer problem.
Speaker Change: But really as we continue to do that there's going to be ebbs and flows of.
Speaker Change: DIY versus assisted.
Speaker Change: Our platform serves the entire category.
Speaker Change: And our focus is serving the quality of the type of customers, we want to serve across the category and I. Just think we're going to continue to have a bigger hand, and transforming and disrupting how taxes get done for consumers and businesses. So we're excited about.
Speaker Change: The role that we were able to play this year, but listen it's a $35 billion category and we're just getting started.
Speaker Change: And on your question about marketing spend.
Scott: Scott we did.
Scott: As we do every year, our marketing spend does increase.
Scott: Slightly but it was not an outsized marketing increase and what do we really leaned into this time was the timing of the spend if you recall, we shared that we were going to start spending marketing earlier, because we realize that about 30% of the assisted customers decided who they're going to use to do the taxes. Prior to end of December and that was it.
Scott: Changing how consumer group, we think about marketing we focused on marketing messaging towards the assisted category about now. This is how you get taxes done. So when we think about marketing we are always looking at how do we maximize ROI on that and are continuing to feel very good about our why we are getting on our marketing spend on in the tax business, where your question.
Scott: But I'll expand that to say I feel really good about the ROI, we're getting on our marketing spend across the entire business.
Scott: But the business platform as well as the consumer platform.
Speaker Change: Excellent. Thank you both.
Scott: They are very welcome.
Speaker Change: We'll take our last question today from Daniel Jester with BMO capital markets. Please go ahead. Your line is open.
Daniel Jester: Great. Thanks for taking my question and squeezing me in.
Daniel Jester: I think since you've touched on this a couple of times in the conversation today, but maybe just to double click on it in terms of Ies and where do we stand in terms of maturing your go to market motion there and it was great to hear the commentary about the accounting channel.
Speaker Change: And how much they are helping you build out this business. How important is that channel is going to be in the overall success of idea going forward. Thank you so much.
Daniel Jester: Yes, thanks for the question Daniel.
Speaker Change: To re ground when we talk about mid market.
Speaker Change: It's customers that are between two 5 million in revenue up to about $100 million, we're not going to stop there, but that's our.
Speaker Change: Focus at this point in time.
Speaker Change: And that means that some of our fit for Quickbooks advanced and all of the services payments payroll et cetera that come with it and some of our FET far Intuit enterprise suite.
Speaker Change: To answer your question I would tell you we're still in the early days of the go to market. We are learning adjusting improving every single day is the way to think about is we are not yet a finely tuned machine.
Speaker Change: Which should by the way.
Speaker Change: Makes you feel that the opportunity is massive and still ahead of us which is by the way why we continue to bolster our mid market team.
Scott: Particularly with actually still joining us where she has built individual creator businesses, but large businesses and we hope to accelerate with the single threaded focus that we have across the company in mid market last thing is I would just say, we don't view, our accounting partners as a channel we view them as our partners because not only do we need to serve them. So they can run their far more.
Scott: Actively inefficiently, but partner with them in terms of how they serve their end.
Scott: Customers and they are extremely critical to the future of business success and in our success, So and that's something where I would say we're still.
Scott: We serve accountants for years, but we're at the very early innings of now how we partner to serve mid market together and we're excited about the future. It's why I am spending a lot of time out in the field with our large firms.
Speaker Change: Great. Thank you and I think with that Youre.
Scott: Youre very welcome and I think with that that was I believe the last question I know we're out of time I just want to thank everyone for joining until next time bye everybody.
Scott: Yeah.
Speaker Change: Ladies and gentlemen, thank you for your participation. This concludes today's conference call you may now disconnect.
Scott: Goodbye.
Scott: [music].
Scott: Okay.
Scott: Hum.
Scott: [music].
Scott: Okay.
Scott: Uh huh.
Scott: Sure.
Scott: Okay.
Scott: Mhm.