Intuit Investor Presentation August
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Transcript of Intuit Investor Presentation August
Intuit Investor Presentation
August 2013
FY’13-15 Operational Priorities
g
Using Data to Create Delight
Delivering Awesome Product Experiences
Enabling the Contributions of Others-
“Network Effect Platforms”
Intuit’s Growth Strategies
Intuit’s Strategy: how we accelerate results
• Amazing 1st Use Experiences: delivering the customer benefit
• Reimagining Mobile 1st/ Mobile Only: design and capabilities
• Solving Multi-Sided Problems Well: creating a virtuous circle
• Expanding Globally: platforms localized by users and developers
• Enabling Customer Data: better products & break-through benefits
To be a premier innovative growth company…
Accele
rati
ng
to
Co
nn
ecte
d S
ervic
es
Small Business Group
We improve the bottom line of small businesses by >20%…
Get and keep customers
Manage finances
Make/Accept payments
Hire/Manage employees
Intuit Full Service Payroll
SBG Vision and Offerings
SMB Market is Big and Growing
• 29M SMBs in the US
• 500M SMBs Globally
• $60B in US SMB Spend in Target Markets
$3.3 $12.0
$21.0 $24.0
FMS Payments EMS Acquire
Customers
+7%
+5%
+12% +15%
• Acquire Customers segment growing fast
• Non-Consumption is biggest opportunity
Growth Rate Current SMB Spend ($B)
~2B Invoices
~1.5B Bills Paid
1.6B Vendors
4.2B Customers
30M Employees
$2T in Commerce
The New Opportunity
5M SMBs
100K Developers
250K Accountants
1.2M Payroll SMBs
>90% Retail Share
360K Payments SMBs
FY
08
FY
11
FY
12
FY
13
FY
14
FY
15
FY
09
FY
10
Our Emerging Assets
2M Company Files in the Intuit Cloud
Our Enduring Assets + =
133K
2M
Continue to grow attach
Penetrating QuickBooks ecosystem
remains key
Lifetime Value of QBO exceeds desktop
$5B attach opportunity
remains
1 Yr 5 Yr 1 Yr 5 Yr
QB Pro QB Online
$409
$978
$382
$1409 Software
Ecosystem Attach
Current Attach
Attach Opportunity
Desktop Online
Use data for in product discovery
29% 17%
$1.1B Payroll Attach Opportunity
Current Attach
Attach Opportunity
Desktop Online
Payments as a QB Feature
5% 6%
$4B Payments Attach Opportunity
Extending the Core: Demandforce
Effortless Communication Use email, text, social and search to grow your business and keep customers coming back
Online Reputation Build, maintain and leverage your most valuable asset – a good online reputation
Demandforce Network
Increase exposure to your local community and maximize results
Helping SMBs thrive in an evolving & increasingly complex, connected world
Automated marketing & communications solutions
Value proposition based on generating 3x ROI each month
What: We solve small business payments needs
QuickBooks Payments Mobile Payments Retail Payments
Get paid anywhere, with any payment type, on any device
Consumer Tax
Lots of room for long-term growth
Manual
Software
Tax Stores
Pros
Revenue (Intuit Estimate)
Est. FY12 Returns (Intuit Estimate)
TurboTax has just 21% of Total Tax Returns, 7% of Revenue
~146M ~$20B
* Software $ represents TurboTax estimated average revenue per return.
Source: Intuit estimates, surveys
Manual
Franchise/Tax Store
Pro / CPA
Software ~5M filers enter
~3.5M filers exit
$239
$203
$46*
$0
51
28
38
-44
1%
-1%
7%
-14%
Price Net
Promoter 5 yr
CAGR
FY08 FY09 FY10 FY11 FY12
Strategically positioned in the sweet spot
Manual is not our largest customer source
Sources of FY’09-’12 TurboTax customers
Retention of existing customers
Competitive prep methods
Manual
New filer
Opportunity: reacquire & retain customers
70M+ unique visitors to TT.com
~35M unique customers over last 3 years
Customer gains and losses
Acquisition Attrition
55 63
72
FY10 FY11 FY12
21
24 25
FY10 FY11 FY12
7.1 7.8 7.5
FY10 FY11 FY12
1 pt conversion = $40M and 720k customers 1 pt retention= $14M and 250k customers
We are striving for one True North outcome for Intuit (best we can be)
• Grow organic revenue double digits
• Grow revenue faster than expenses
• Deploy cash to highest-yield opportunities
• Maintain a strong balance sheet
Financial Principles
Drive Growth In Our Core Products
Acquire New Users Retain Existing Users Increase Offerings/User
$1 Billion+ Opportunity
10M+ customers leave Intuit annually
Average 1.5 apps/user with low awareness
1st use experiences not as easy as expected
For every 100 we attract…
Between 2-14 convert!
Improve Conversion 50% = up to $1 Billion
Save 1 out of 10 = $75+ Million
Increase 0.5 apps/user = $500 Million