Sasan Goodarzi, Intuit CEO on fiscal Q1 2025 earnings and guidance

Good to be with you, John. We really delivered for consumers and businesses across the platform. We've seen strength end to end. Our business platform grew 20%, this is our online ecosystem. Credit Karma grew 29%. Those were really the big drivers behind our performance in Q1. We're quite excited about the year, which is why we reiterated our guidance for the year. If I were to call out two big things: one, very excited about our progress in midmarket, serving businesses particularly with Intuit Enterprise Suite, and two, Intuit Assist, which is our gen AI powered financial assistant. We're making great progress. We actually made it generally available to all businesses this week, and really excited about the vision of we do the work for you to drive your profitability and revenue growth as a business. So those areas are one of huge gratitude and excitement.

John, I would say really two things. Starting just with the consumer, one things are stable, but two, you have to remember it's in context of credit scores are down like 20 points in the last couple of years. Balances, credit card balances are up 55 to 65% depending on the cohort of consumer that you're talking about compared to two years ago. So when you hear the word stable, it's also important to understand the context of where we are today versus two years ago. With that said, our Credit Karma performance first of all comes on the back of we're creating one consumer platform, so consumers can build credit, get access to financial products right for them, get their taxes done either themselves or we do it for them, and build wealth on one platform in one place, integrating TurboTax and Credit Karma. Our performance across Credit Karma, there are a few elements: macro, which is insurance, personal loans, but really the other half is our innovation. We're actually increasing our share across key financial products just based on all the innovation and leveraging customers' data on their behalf to connect them to the products that are right for them, really personalized assistance, and that's helping us increase share. So those are the two reasons behind the progress that we're seeing in Q1 and what we expect in the coming quarters.

Our overall guidance for Q2 topline is 13 to 14%, so we feel very good. Delivering 10% topline in Q1, we're accelerating in Q2, and really on a great path to deliver the 12 to 13% for the year. For the second quarter, our consumer group TurboTax will deliver a single digit decline, and it's really because we changed some promotional activities for TurboTax desktop in retail. So imagine the Costcos and the Walmarts of the world, and the promotional activity is good for consumers, but the timing of when we're doing it just shifts revenue from Q2 to Q3. It doesn't impact the year at all, so it's just a shift between quarters.