Chief Executive Officer at Intuit
Thank you, Kim, and thanks to all of you for joining us today. Second quarter results reflect continued strong momentum across the company as we execute on our strategy to be a global AI-driven expert platform, powering the prosperity of consumers and small businesses. We have a nearly $300 billion addressable market, driven by tailwinds that include a shift to virtual solutions and acceleration to online and omnichannel capabilities and digital money offerings. This, combined with the team's excellence in execution, is contributing to the strength of our performance. Second quarter revenue of $2.7 billion was driven by strong results from our Small Business and Self-Employed Group, Credit Karma and reflects an earlier start to the tax season compared to last year in the Consumer Group. Since tax season is now underway, let me start there. We are confident in our strategy of extending our lead in the do-it-yourself category and transforming the assisted segment. Based on our analysis, we are on track to gain share overall again this season. This, and other early indicators, gives us reason to be excited about our innovation and go-to-market decisions. Our focus this season is threefold. First, we continue to aggressively transform the assisted category by reshaping how 88 million filers get their maximum refund with confidence virtually. This opens up the $20 billion assisted tax prep category for Intuit. Second, we're serving the underpenetrated segments of LatinX, Self-Employed and investor segments, which are growing faster than the overall tax filing. And third, we're serving millions of members on the Credit Karma platform with personalized experiences. Our team has developed a strong game plan to win this season, and we are on track to achieve our full year Consumer Group guidance of 10% to 11% revenue growth. Our AI-driven expert platform strategy is accelerating innovation and our five Big Bets are solving the largest problems our customers face. We continue to deliver strong proof points that demonstrate the success and are well positioned for durable growth in the future.
As a reminder, these Big Bets are: revolutionize speed to benefit, connect people to experts, unlock smart money decisions, be the center of small business growth and disrupt the small business mid-market. Today, I'd like to highlight examples of our recent progress across three of these Big Bets. Our second Big Bet is to connect people to experts. We're solving one of the largest problems our customers face, lack of confidence, by connecting people to experts virtually with TurboTax Live and QuickBooks Live. With TurboTax Live, we're transforming the $20 billion assisted category by providing the 88 million filers who have previously relied on an in-person assistant the opportunity to access expert help or have an expert to file their taxes for them. We have improved the experience for customers by applying artificial intelligence to match them with an expert who is right for their specific situation and to deliver insights to experts so they can provide excellent service. These capabilities are also now available in the Credit Karma app for members that use an assisted method to file their taxes last year. We are off to a strong start in our busy season with QuickBooks Live. We're now giving customers earlier visibility as to how their business is performing, getting their books cleaned up faster and connecting them with an expert easier. We've seen some of our strongest weeks of new customer acquisition in January and retention rates in our target customer segment increased several points versus a year ago. We believe QuickBooks Live will enable us to reach small and mid-market businesses that have not used financial management software. And we are eager to continue accelerating our momentum for this offering. Our third Big Bet is to unlock smart money decisions. Credit Karma is a data platform with powerful network effects solving a two-sided problem. Our vision is to unlock smart money decisions by creating an autonomous financial platform that helps consumers find the right financial products, puts more money in their pockets and connects them to insights and advice.
In Credit Karma, we are innovating across all verticals. Our proprietary Lightbox technology allows us to better personalize and connect members to the products that are right for them, providing more certainty. Credit Karma's data platform and engagement model creates powerful network effects. We continue to see strength in credit cards and personal loans. Lightbox approximately doubles the average approval rate for members who apply for credit cards on Credit Karma versus outside of Credit Karma, making it a competitive differentiator for both our members and partners. We are solving a larger set of financial challenges for consumers in the auto and home verticals. And in auto insurance, we'll continue to strengthen the Karma Drive program. We launched new features and experiences this tax season designed to help the majority of Credit Karma members filed easily with TurboTax and gain deeper insights into their finances. We're also offering tax filers early access to their refunds through direct deposit and refund advance program. First, Credit Karma launched a capability for members who previously filed with TurboTax to provide them with insights about their finances and taxes. Second, most Credit Karma members are able to file with TurboTax within the Credit Karma app and are eligible for special offers. And third, tax filers who choose to deposit their refund into a Credit Karma Money account will receive the refund up to five days early with direct deposit or get a portion of their refund in as little as one hour after the return is accepted through the TurboTax Refund Advance program. These TurboTax customers drive Credit Karma member growth and get access to personalized products across the platform, which accelerates engagement over time. Big picture, we continue to grow members by delivering personalized financial products, helping members save money, pay down debt and get faster access to their money while providing insights and advice.
Over time, we are creating a virtuous cycle, which we expect to increase the frequency of engagement, transactions and monetization across our ecosystem. Our fourth Big Bet is to become the center of small business growth by helping our customers get customers, get paid fast, manage capital, pay employees with confidence and grow in an omnichannel world. 60% of small businesses struggle with cash flow, and we continue to innovate to help customers overcome this challenge. In payments, we continue to improve discoverability, increased usage of features like Instant Deposit and roll out new innovations like Get Paid Upfront to help qualified customers get paid soon after the invoice is set. All of this innovation is driving strength in our charge volume. And in payroll, we continue to focus on making it easier for small businesses to pay their employees and provide them with expanded benefits. Nearly 40% of Americans say that they would struggle to pay an unexpected $400 emergency expense. We recently announced QuickBooks Early Pay, which will allow eligible employees pay through QuickBooks Online payroll to access money between paydays. Getting and engaging customers remains a significant pain point for small and mid-market businesses. With Mailchimp, we are well on our way to becoming the source of truth for our customers to help them grow and run their business. We have three acceleration priorities with Mailchimp. First is to deliver on our vision of an end-to-end customer growth platform; second, disrupting the mid-market by developing a full marketing automation, CRM and e-commerce suite; and third, accelerating global growth with a holistic go-to-market approach. Since the acquisition closed in November, we've been moving with speed to deliver for our customers. We're aggressively building a seamless integration between QuickBooks and Mailchimp to create a growth platform, investing in marketing and introducing the Intuit leadership playbook and operating system to execute at scale.
Together, we are uniquely positioned to enable small and mid-market businesses combine their customer data from Mailchimp and purchase data from QuickBooks to deliver actionable insights they need to grow and run their businesses with confidence. And this is where the real magic happens. Now shifting to the long term. We're also looking far ahead to anticipate our customers' future needs through our six-year planning process, a part of Intuit's operating system, which we use to run the company. In December, our top leaders studied our customer problems and industry trends, the progress we've made since declaring our Big Bets three years ago and where we can have the largest impact in the future. This led to refreshing our five Big Bets to accelerate innovation, powering the prosperity of those that we serve. While our strategy remains durable and the essence of our big bets are the same, we have expanded the customer problems we want to solve and our vision for each Big Bet. For instance, as part of first Big Bet, revolutionize speed to benefit, we are accelerating investments in decentralized technologies such as blockchain and cryptocurrency, enabling us to help customers put more money in their pockets faster. As part of our second Big Bet, connecting people to experts, we'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. We'll unpack this evolution in more detail at our Investor Day in the fall. We remain focused on our role as a strong corporate citizen and the impact we are making on the communities where we live and work to further our mission. Intuit was recently recognized by JUST Capital on its JUST 100 top-performing companies list for 2022 for our progress on DEI, along with our focus on climate change, worker wellness, job creation and customer privacy.
Wrapping up, our strong business fundamentals, including our balance sheet, our speed of innovation and demand for our platform, continue to put Intuit in a position of strength. Despite macro conditions such as rising inflation, supply chain issues, the Great Reshuffling and geopolitical conflicts, our platform continues to thrive as digitization is more important now than ever, supporting our customers' needs to put more money in their pockets and helping them run and grow their businesses. We are proud to be the platform of choice for over 100 million customers around the world who rely on Intuit to prosper.
Now let me turn it over to Kim.