Sasan Goodarzi
Chief Executive Officer at Intuit
Great. Thank you, Kim, and thanks to all of you for joining us today. We had a strong first quarter as we executed on our strategy to be the global AI-driven expert platform powering prosperity for consumers and small businesses. We continue to feel bullish about our momentum and execution across small business and tax. We're innovating at a high velocity using the power of our platform and modern technology capabilities to deliver new offerings at scale focusing on breakthrough adoption. We continue to be focused on putting more money in our customers' pockets, saving them time, and ensuring complete confidence in every financial decision they make. This is more important than ever in the current uncertain economic environment and helps us penetrate our large total addressable market of over $300 billion.
Now let's turn to our first quarter results. Revenue grew 29%, including 13 points from the addition of Mailchimp. Total revenue growth was fueled by the Small Business and Self-Employed Group revenue growth of 38%, or 19% excluding Mailchimp, and 25% revenue growth in the Consumer Group driven by a strong October peak with new customers and extension filers. The scale of our platform, along with our rich data, gives us the unique ability to see charge volume growth, the number of employees paid, the hours worked per small business, and cash reserves. These measures remain strong for those on our platform and inform our perspective on the health of small businesses.
TurboTax had a robust finish to the tax season with a record number of innovations launched and tested in the October peak. I'm excited about this upcoming season, particularly our strategy to transform the assisted category, including the launch of Business Tax and TurboTax and Credit Karma platform integrations.
Now turning to Credit Karma. At Investor Day and on our fourth quarter earnings call, we shared that all Credit Karma verticals had been negatively impacted by the macro uncertainty. In the last few weeks of the quarter and into November, we saw further deterioration in all verticals. Consumer default rates remained relatively low by historical standards, reflecting strong consumer cash balances coming out of the pandemic. However, we continue to see partners pull back from extending credit, reflecting the uncertainty in the economic environment and the risk of deterioration in credit performance.
Given this context, Credit Karma revenue came in lower than expected for the quarter. We are lowering our fiscal year 2023 revenue guidance for Credit Karma to a decline of 15% to 10% versus our previous guidance of 10% to 15% growth. At the same time, we are reiterating our fiscal year 2023 revenue guidance for all other segments and reiterating our fiscal 2023 GAAP and non-GAAP operating income and earnings per share guidance. Our ability to maintain earnings power despite the lower Credit Karma revenue guidance shows the power of our diversified platform and our ability to balance platform and product investments for the future while delivering on our commitments. Regardless of the near-term macro volatility, we remain confident in our long-term revenue growth expectations of 20% to 25% for Credit Karma driven by our vision and innovation to become the self-driving financial platform fueling prosperity for all consumers.
At Investor Day, we shared how our AI-driven expert platform strategy is accelerating our innovation and how our five Big Bets are solving the largest problems our customers face. We continue to deliver strong proof points that demonstrate our success and are well positioned for durable growth in the future. As a reminder, our Five 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 first Big Bet is to revolutionize speed to benefit. Our platform enables us to innovate for our customers with speed and at scale, which is foundational to all of our Big Bets. Our evolution from a siloed technology stack to a platform leveraging shared capabilities is well underway. Our development environment enables speed and innovation. Engineers now have 6 times the velocity of deploying code, resulting in accelerated innovation compared to fiscal year 2020. Our AI and fintech capabilities are well positioned to solve our customers' biggest problems, such as our money innovations across payments and payroll, advancements in TurboTax Live, QuickBooks Live, and QuickBooks Advanced, just to name a few. And we're doing that today with over 730 million AI-driven customer interactions per year, 2 million AI models in production, 58 billion machine-learning predictions per day, and over $465 billion in money moved during fiscal year 2022.
Our second Big Bet is to connect people to experts. We're solving one of the largest problems our customer face, lack of confidence, by connecting people to experts virtually. During the October tax peak, our team launched a record 50 innovations to test and learn. Our learnings have helped us transform our go-to-market campaign for the assisted segment, revamp the end-to-end TurboTax Live platform experiences with faster access to money via Credit Karma, and better serve the investor, Latino, and self-employed segments. We are looking forward to the upcoming tax season.
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. With Mailchimp, we're 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, delivering 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. This quarter, we launched a new brand campaign, refreshed our website, and launched an improved first-time-use experience for new customers that helps them more quickly find and use the feature that aligns with their unique business needs. We also launched a one-hour, assisted onboarding process for our high-value Mailchimp customers, with the goal of guiding them to more advanced features to increase awareness and usage. This program was launched in a record four weeks by leveraging components of our virtual expert platform, another example of the power of Intuit platform capabilities. As a result of these enhancements and others, we are seeing a positive impact on customer growth and expansion, and a lift in customers converting to paid.
Turning to our money portfolio, we've made a tremendous investment over the last few years to expand our suite of money offerings to help small businesses get paid, pay others, and access capital and manage their money. We continue to see strength in our charge volumes driven by easier discovery, auto-enabled payments, instant deposit, and getting paid upfront. This quarter we made it even easier for more customers to access their cash quickly, by removing friction and opening the funnel to more customers. We're also rolling out a new invoicing experience with a more streamlined workflow and improved design, which is driving an increase in the percentage of companies that send payment-enabled invoices.
Looking ahead, we're tackling another big challenge for our small business customers, B2B payments. More than $2 trillion of invoices were managed in QuickBooks in fiscal year 2022. As we shared at Investor Day, we are launching the QuickBooks Business Network, which connects small business customers to each other, making it easier for them to do business. It's currently in beta testing, and we expect to launch more broadly later this fiscal year. We're also building our own bill pay functionality in QuickBooks, and plan to launch this capability in the future. We're excited about our opportunities for growth with Mailchimp and payments becoming the center of small business growth.
Wrapping up, we feel confident in our long-term business strategy and the power of our platform. In an uncertain macroenvironment, the benefits of our global financial technology platform are more important and more mission-critical than ever for our customers. We have a large TAM with low penetration, secular shifts working in our favor, a diversified, large-scale platform where we continue to invest heavily in innovation across our Five Big Bets to deliver benefits for our customers, resulting in top line growth and margin expansion. We're proud to be an employer of choice as well as the financial technology platform of choice for over 100 million customers around the world who rely on Intuit to prosper.
Now let me hand it over to Michelle.