Intuit Inc. (NASDAQ:INTU) Q3 2019 Earnings Conference Call Transcript

May 23, 2019 • 04:30 pm ET

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Intuit Inc. (NASDAQ:INTU) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Deron, and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit's Third Quarter Fiscal Year 2019 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'll now turn the call over to Jerry Natoli, Intuit's Vice President of Finance and Treasurer. Mr. Natoli, the floor is yours.

Executive
Jerry Natoli

Thank you, Deron. Good afternoon, and welcome to Intuit's third quarter fiscal 2019 conference call. I'm here with Intuit's CEO, Sasan Goodarzi; and Michelle Clatterbuck, 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 2018, and our other SEC filings. All of those documents are available on the Investor Relations page of Intuit's website at intuit.com. We assume no obligation to update any forward-looking statement.

Some of the numbers in these remarks are presented on a non-GAAP basis. We've 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.

With that, I'll turn the call over to Sasan.

Executive
Sasan Goodarzi

Thanks, Jerry, and thanks everyone for joining us. We had a great third quarter and we are on track to exceed the guidance we provided at the beginning of the year. We are seeing momentum across every part of the Company, and as a result we are raising our revenue, operating income and earnings per share guidance for fiscal year 2019.

During the third quarter, total revenue grew 12% overall, fueled by 10% revenue growth in the Consumer Group and 19% revenue growth in the Small Business and Self- Employed Group. With that context, let me start with the Consumer Group.

We had a great tax season. We grew the DIY category and grew our share within the category driven by our innovation and significantly improved customer experiences. We produced our most robust free offering yet and made significant progress in our effort to transform the assisted category. As we've communicated, there are four primary drivers in our Consumer business. At first, the total number of returns filed with the IRS. The latest IRS data indicates total returns were up 0.2% through May 10th, below historical trends and our own expectation of 1% to 2% growth. The second is the percentage of those returns filed using do-it-yourself software. Category share grew over a point, the fastest pace since 2016, once again outpacing the assisted tax prep category. We