Specialist
Former SVP at Intuit Inc
Agenda
- Intuit's (NASDAQ: INTU) operating environment and the broader small business software category
- Value-add of the Mailchimp acquisition to QuickBooks offering and cross-sell potential, highlighting addition of AI and machine learning capabilities
- Product investment, highlighting QuickBooks and Credit Karma, and traction of Intuit’s strategic Big Bets
- Outlook for 2022 and beyond – longer-term positioning and emerging threats
Questions
1.
What key trends are impacting Intuit’s operating environment? What industry headwinds or tailwinds should investors pay attention to?
2.
Intuit updated its TAM assumption to USD 300bn in the aggregate. What are your thoughts on the company’s market penetration, your overall growth expectations and how your demand outlook factors in?
3.
Intuit acquired Mailchimp in November 2021, which brings in 13 million total users globally, 2.4 million MAUs [monthly active users] and 800,000 paid customers. Do you think the USD 12bn price tag is warranted for this acquisition, particularly considering the deal’s strategic nature?
4.
How might the Mailchimp acquisition – including the product additions, the combined assets’ value and
the addition of the AI and machine learning capabilities you mentioned – play into Intuit’s ability to disrupt
the SMB software category and become the centre for small business growth?
5.
How do you expect the integration of Mailchimp to go, considering some of Intuit’s previous acquisitions? How long before Intuit might begin realising synergies?
6.
What’s your outlook for cross-sell potential between Mailchimp and QuickBooks, especially given Intuit
wants to build an end-to-end platform for SMBs? What should we monitor when tracking performance on that
end?
7.
What do you consider the potential hurdles to integration execution? Would it be around technology or
merging with corporate culture? What other headwinds should we keep in mind?
8.
What kind of competitive response do you expect from QuickBooks and Mailchimp’s respective competitors? Does this open the door for peers in each of these categories to take existing customers?
9.
What’s your outlook on QuickBooks’ competitive landscape moving into 2022? To what extent could the competitive pressures you outlined increase or converge across different solutions areas?
10.
What excites you about QuickBooks Online services and how Intuit is expanding this offering over the next 12-18 months, considering product investment and the broader Big Bets strategy?
11.
Can we expect a mix of Intuit going deeper and tighter with some of the current offerings, but it seems
most of the pieces are in place across TurboTax and QuickBooks?
12.
Intuit has been phasing out the traditional packaged products such as QuickBooks Desktop. What might be this move’s short-to-medium-term impact?
13.
Credit Karma has been posting quite rapid performance recently. How do you think about the progress and
overall performance of this division?
14.
What might be the hurdles to executing around Credit Karma and TurboTax? Alternatively, do you
consider it mostly tailwinds in light of the current environment?
15.
Q1 2022 is already showing really strong promise at 52% YoY top line growth, obviously based on a much weaker Q1 FY21, especially in the SMB segment. What does this signal to you about 2022? What’s your outlook for this relative growth dynamic?
16.
If Intuit can hit even 18-20% growth – which would be quite massive – what might be the relative revenue
contribution from customer growth in the aggregate vs increased upsell and cross-sell opportunities with the company’s existing base, especially if it can effectively leverage the synergies between QuickBooks and
Mailchimp?
17.
ARPC [average revenue per customer] grew 13% during 2021 and management expects that to increase across its products in 2022. What do you think is achievable for 2022 based off of that performance? What might be some of the main drivers there? Could there be certain products with really strong attach rates, or shifts in pricing strategy?
18.
How much room do you think there is for QuickBooks price increases? Could Intuit continue to drive those up, or could they level off due to customer purchasing habits?
19.
Do you think mid-market growth will come more from scaling with existing customers who have reached
that size or from landing new customers already in that market?
20.
How has your outlook on Intuit’s international revenue opportunity evolved since the Mailchimp acquisition, given that company’s 50/50 domestic vs international split? Do you think this could help accelerate Intiut’s ability to penetrate other markets?
21.
What do you consider the main hurdles to international success for Intuit?
22.
What do you consider the main risk and opportunity in light of Intuit’s market environment and
positioning?
23.
What’s your best- and worst-case scenario for Intuit over the next 1-2 years?
24.
Is there anything else that you’d like to highlight?
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