News From Intuit's 2nd Quarter Earnings Call

Last week Intuit's Sasan Goodarzi (CEO) and Michelle Clatterbuck (CFO) conducted an earnings call to provide investors with results from the second quarter of the company's 2022 Fiscal Year which ends July 31, 2022. The call (transcript can be found here) included not only Q2 financial details but also highlighted Intuit's strategic directions.

Progress on the "Five Big Bets"

Intuit's five Big Bets are: 

• Revolutionize speed to benefit
• Connect people to experts
• Unlock smart money decisions
• Be the center of small business growth
• Disrupt the small business mid-market

Goodarzi highlighted the company's progress on connecting people to experts through both the TurboTax Live and the QuickBooks Live services. TurboTax Live now uses artificial intelligence to match Credit Karma members with the expert who is right for their situation in addition to existing and new TurboTax Live customers. QuickBooks Live has seen its "strongest weeks of new customer acquisition in January and retention rates in our target customer segment increased several points versus a year ago."

Credit Karma not only figures in new customer acquisition for TurboTax Live but also is key to Intuit's third big bet - unlocking smart money decisions. Intuit is continuing to innovate within this area, including Karma Drive (auto insurance with usage-based pricing), credit card and personal loan applications through Credit Karma, and QuickBooks integrations such as with QuickBooks Online Payroll. As a result, Intuit saw rec, Credit Karma saw another quarter with record revenue. 

Intuit continues to invest in the fourth and fifth big bets - to be the center of small business growth and disrupt the small business mid-market - through their acquisition of Mailchimp. The company is accelerating three priorities with Mailchimp. - deliver an end-to-end customer growth platform; disrupt the mid-market with a full marketing automation, CRM, and e-commerce suite; and accelerate global growth with a holistic g0-to-market approach.  

Intuit and Technology

Sasan Goodarzi made two comments that should be highlighted. 

1. "(W)e are accelerating investments in decentralized technologies such as blockchain and cryptocurrency, enabling us to help customers put more money in their pockets faster."

2. "(W)e're reframing how we think about virtual experiences by exploring metaverse technologies and expanding the segments we serve beyond tax and accounting to play a more meaningful role in our customers' lives.

It is clear that Intuit is fully invested financially and strategically in capitalizing on ever-increasing technology advances. 

Intuit's Q2 Financial Results

Here are some of the numbers:

• Q2 revenue - $2.7 billion, up 70%
• GAAP Operating income of $56 million versus operating loss of $25 million last year
• non-GAAP operating income of $612 million versus $235 million last year
• Small Business and Self-Employed Group revenue growth of 47% (See note)
• Online Ecosystem revenue grew 74% (See note)
• QuickBooks Online accounting revenue grew 35%
• Online services revenue, which includes Mailchimp, payroll, payments, capital and time tracking grew 139% (See note)

Note: Mailchimp recorded $240 million in revenue during Q2. This revenue was included in the growth in 

Mailchimp revenue recorded in online services was $240 million in the quarter. This revenue was reflected in the growth lines above. When the Mailchimp revenue was excluded, revenue growth is as follows:

• Small Business and Self-Employed Group revenue growth of 27% with Mailchimp revenue excluded
• Online Ecosystem revenue grew 37% with Mailchimp revenue excluded
• Online services revenue, which includes Mailchimp, payroll, payments, capital and time tracking grew 39% with Mailchimp revenue excluded