Mid-Market Expansion
Q: How big is the opportunity to expand into the mid-market?
A: Intuit is doubling down on its focus on the mid-market, a strategy five years in the making. - The company now offers a business suite that provides all the capabilities for businesses to grow customers, manage cash flow, and handle accounting—all in one place. - They plan to announce a platform at Investor Day that will take them further upmarket, aiming to serve businesses beyond 10 to 100 employees. - This positions Intuit to grow with existing customers and acquire new ones, tapping into a market where many mid-market customers are currently nonconsumption. -

TurboTax Live Growth and Guidance
Q: Why adjust guidance for TurboTax despite strong momentum?
A: While TurboTax Live grew 17% this past year, with full-service customers doubling and new customers tripling, Intuit adjusted its long-term expectations to be prudent. - Until TurboTax Live, which is currently 30% of the franchise, becomes a larger part, they wanted to be cautious. - They still expect TurboTax Live to grow between 15% to 20%. - The total tax market is $35 billion in TAM, with $5 billion in DIY and $30 billion in assisted services. - The focus remains on both assisted growth and being assertive in pursuing lower-income customers based on positive experiments. - -

QBO Growth and Q1 Acceleration
Q: What drives confidence in QBO's Q1 acceleration?
A: Acceleration comes from three areas: increased services adoption (payments, payroll, live platform, Mailchimp), mid-market traction with QBO Advanced growing 28%, and price increases. - Larger customers are adopting services at a higher rate, and more than half of growth comes from volume and mix. - The business suite offering attracts customers who value having everything in one place. -

Reinvestment from Restructuring
Q: How are savings from restructuring being reinvested?
A: All savings are being reinvested in five key areas, including marketing, customer success, and additional engineering headcount. - The restructuring affected about 8% of talent across the company, focusing on areas with opportunities for better performance. - Intuit is positioning for the next 2–3 years, with no expectations of immediate payoff in the coming year. -

Mailchimp Reacceleration
Q: What is needed to reaccelerate Mailchimp's growth?
A: Intuit focuses on three areas: integrating Mailchimp with the QuickBooks platform, accelerating mid-market growth, and expanding internationally. - Data and tech integration is a priority, and they are building momentum in mid-market with integrated offerings and enhanced go-to-market capabilities. - This positions Mailchimp to contribute more significantly in the coming year and future. -

Impact of AI and Intuit Assist
Q: How will AI and Intuit Assist impact future growth?
A: Intuit Assist currently engages about 1 million businesses and will play a significant role in the future. - Examples include automating marketing campaigns and streamlining invoicing and payment processes. - While no impact from Intuit Assist is included in this year's guidance, it is expected to drive new customer growth and adoption of services over time. -

Global Business Solutions Group Growth
Q: What's the growth outlook for the Global Business Solutions Group?
A: The group is expected to be north of $11 billion, growing 16% to 17% in the coming year, with online growth at 20%. - Intuit aims to serve larger customers in the mid-market and believes there is significant room to grow beyond the current $10 billion run rate. -

QBO Live and Mid-Market Push
Q: How does QBO Live support moving upmarket?
A: QBO Live has more than tripled its client base by offering expert services in bookkeeping and accounting. - The platform addresses businesses' needs for integrated expert support, and larger customers expect such services. - Intuit sees higher adoption of services like payments and payroll among QBO Live users, which will aid in accelerating their upmarket push. -

Health of Small Business Customers
Q: Any changes in the health of small business customers?
A: The overall health is stable. - Small businesses show increased revenue and profitability compared to last fiscal year. - Cash reserves are down 6% to 7% from last year but remain significantly higher than pre-pandemic levels. - Hours worked are also higher, indicating steady business activity. -

Impact of AI on Costs and Productivity
Q: What is the impact of AI on revenue and costs?
A: While AI's revenue impact is immaterial this year and not included in next year's guidance, it's expected to be a significant driver in future years. - AI initiatives are broad-based, enhancing services, conversion, and retention. - Intuit is not building its own data centers but uses AWS, keeping investments asset-light. - The company is also seeing improvements in internal productivity through AI. - -