Intuit Inc. (NASDAQ:INTU) Q1 2023 Earnings Call Transcript

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Operator: Your next question will come from the line of Brad Zelnick with Deutsche Bank. Please go ahead.

Brad Zelnick: Can you guys hear me?

Sasan Goodarzi: Yes. Perfect.

Brad Zelnick: Great. Sasan, you guys are always very transparent, great disclosure. And my question is maybe a little bit bigger picture. Can you talk about the opportunity to open up and externalize into its platform services to third parties for developing their own apps with live expert functionality, rich data services, money movement perhaps, and the things that are making you so successful?

Sasan Goodarzi: Yes. Absolutely. Great question. This was actually at Investor Day one of our, what we call Horizon 3 ideas that we have invested in, which is around externalizing services. So first and foremost, we do see a big problem space out there where developers and partners and firms look to access and have a need for things like around our virtual expert platform services to connect people to experts or had to use for our identity services and have a use for our fraud and risk capabilities. So there’s a lot of services that we have across our platform that you heard Mariana talk about of which there is a need for those services externally. Now we want to be very choiceful and intentional what we choose to externalize and what we choose not to externalize and what problems we choose to solve and which ones we intentionally choose not to solve.

But we do believe it as an opportunity, it’s actually something that we funded about a little bit over 15 months ago, and we have a mission-based team that is working on it. And when we have more to share in terms of launches and anything that we think over time will be material for all of you to be aware, we’ll be the first to share with you. But we do see it as an exciting Horizon 3 idea that’s been funded and are excited about the prospects of it.

Operator: Your next question will come from the line of Raimo Lenschow with Barclays. Please go ahead.

Raimo Lenschow: I wanted to ask on Mailchimp. So last quarter, you pointed out that you were kind of working on go-to-market a little bit. You wanted to adjust that. This sound — this quarter, you sounded better, and it looks like you’re using Mailchimp like the lead to go — to attack the international markets more broadly. Can you speak a little bit about what you do there, the progress that you’re making, where you are in that journey, please?

Sasan Goodarzi: Yes. Absolutely. First of all, I’ll just state that I’m really excited about Rania that we just put into the business and the leadership team that she is building in. It is the result of that leadership team where we are seeing accelerated innovation. And as I mentioned a moment ago, there’s been a lot of innovation just in the last sort of three to four months in Mailchimp from an entirely new brand campaign where we communicate the benefit to how you can grow your business to SMBs, both on air and on — through digital assets. We’ve redesigned our website. So when you come to us, you’re very clear about the benefits that we offer, the choices that you have and why it can help fuel the success of your business to then revamping the first-time use experience, along with what we have just implemented for, I would say, higher-value, larger Mailchimp customers and new customers that we want to pursue, which is a one-hour assisted onboarding to help you get on to the platform to help you understand the benefits of the platform.

And in context of what we’ve shared around international and Mailchimp as sort of the lead internationally, we are right now focused on localizing the language. Where we have localized language versus not, we have more than 13 points conversion variants. And so of course, localized language is one of our largest levers internationally along with having a playbook that we’re putting in place around go-to-market to raise awareness. So a lot of those things we have already launched that I mentioned and the localizing languages we’re working on as we speak. And a lot of what we — what I just shared, we’re starting to see a real impact from customer uptick, expansion revenue. And we’re excited about the possibilities and the momentum that the leadership team is building.

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