Intuit Inc. (NASDAQ:INTU) Q2 2015 Earnings Conference Call - Final Transcript

Feb 19, 2015 • 04:30 pm ET


Intuit Inc. (NASDAQ:INTU) Q2 2015 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Sayeed, and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit's Second Quarter Fiscal 2015 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions]

With that, I would now like to turn the call over to Mr. Matt Rhodes, Intuit's Director of Investor Relations. Mr. Rhodes, you may begin.

Matt Rhodes

Thank you, sir. Good afternoon and welcome to Intuit's second quarter fiscal 2015 conference call. I am here with Brad Smith, our President and CEO; and Neil Williams, our CFO.

Before we start, I'd like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit's results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2014, and our other SEC filings. All of those documents are available on the Investor Relations page of Intuit's website at We assume no obligation to update any forward-looking statement.

Some of the numbers in this report are presented on a non-GAAP basis. We have reconciled the comparable GAAP and non-GAAP numbers in today's press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends.

And with that, I'll turn the call over to Brad Smith.

Brad Smith

All right, thank you, Matt, and thanks to all of you for joining us. It has been an eventful few weeks at Intuit, and I suspect you have lots of questions. Before we get to your questions, I would like to provide as much context around the recent events as possible, while keeping the bigger picture in mind.

The bigger picture is straightforward. Our financial results are strong through the first half of fiscal 2015, and we are reiterating our guidance for the full fiscal year. Furthermore, our small business momentum has taken a step rate change in a positive direction. With growth in our QuickBooks Online subscribers continuing to accelerate at a very healthy rate.

With that said, I know the tax is on everybody's mind, given the time of year and the recent press coverage. So let me start there first. At the highest level, our tax strategy is on track. We are in the second year of a multiyear journey to achieve our product vision of taxes are done. This year's TurboTax significantly expanded its data import capability. Nearly 75% of customers can now digitally import W2s directly into the product that is up from less than 30% last year. This is a huge step towards our vision if taxes are done, making tax spreads easier and more