Sandeep Aujla: Taylor, the one thing I would add, and just to build on Sasan’s point, you asked a question around pricing, pricing power. Our tenant around pricing is around the power of our offerings and the innovation we’re building into the offerings. And the perceived actual value that we’re delivering to our customers is not related to the macro environment. So that’s another point I just wanted to emphasize in terms of how we think about our pricing.
Taylor McGinnis: Thanks. Really appreciate the thoughts.
Sasan Goodarzi: You’re very welcome.
Operator: The next question comes from Alex Zukin with Wolfe Research.
Alex Zukin: Hey guys, thanks for taking the question and congrats on the quarter. Sasan, maybe a GenAI question for you. Clearly it’s something that continues to really evolve and become a core part and parcel of the company, both on the SMB side and the consumer side. I wanted to ask, if you look at the coming tax season on the consumer side, how do you expect to see the benefit of some of the assist functionality? Is it more converting kind of free to pay? Is it pay to pay more? And then similarly on both Credit Karma and on the SMB side, if you think about the progression of the year, kind of where are you seeing the biggest opportunities as you start to see the interactions build on the platform?
Sasan Goodarzi: Yes, Alex, thank you. Great question. Let me start with one headline, particularly as we’ve been in beta or with certain capabilities at scale and GA. I’ll start with a headline which is we believe that over time, and I want to emphasize the overtime piece, that this is going to create an entirely new category of experiences and growth that is not even possible today because of truly creating a set of experiences where the work is done for customers. And there’s always a gateway to human expert that’s all AI powered. And the more we’re in market, the more we’re learning, adjusting, adapting, the more we are convinced that we’re going to be able to create a new category of services and what’s possible to penetrate our $300 billion in TAM.
Now with that said, let me get real specific and sort of real tactical. The second headline news that I would give is none of the work that we’re doing with Intuit Assist, which is really about what we’re doing across the platform. It’s not a feature. None of it is in our results today, and we’re not counting on it to be in our results in the near future. But with that said, to answer your question in tax, to start with, there’s a couple of areas where it will have profound impact. One is full service. And the profound impact, by the way, is from the investments that we’ve made in the last five years. I mean, to do what we’re doing in full service at scale and think about it, it’s really based on data, AI, ecosystem of apps, because now we can do your taxes through Credit Karma, through the cookbooks platform and one of the largest networks of experts that we have.
And all of that sits on machine learning, knowledge engineering and now GenAI capabilities. So the biggest in our view, based on what we’re seeing in market, right, the biggest opportunity is about the ease and the speed of getting people’s taxes done. So imagine a world where you’re a full service customer that we can get your taxes done in less than an hour, maximum refund and extend your dollars because of what we can do with you on the Credit Karma platform and excellent service, the best service you can imagine in the world, which by the way is supported by our product recommendation score of 88. So really it’s full service that will have the biggest impact. Now the whole underlying platform is what full service uses. And so the other is over time.
Yes, it will help with conversion. And really it’s about confidence. And we’re seeing that right now where Intuit assist when it’s engaged to understand my tax outcome and refund outcome, the helpful rating is one and a half times better than we’ve ever seen and by the way, we are very early, we haven’t perfected it by any means. So that’s on the tax front. Just very quickly, let me touch on Credit Karma. As you know, one of the powers of Credit Karma on behalf of our customers is we know everything about the customer. We know have all the data and leverage AI to deliver personalized credit cards that are right for them, or personal loans, whatever it may be. One thing that’s profound with GenAI that we’re learning and seeing in market today is now customers can interact with Credit Karma, whereas before they couldn’t.
The from to is, the from is, I would show you the three credit cards that are right for you based on everything that I know about you. But now you can interact with Credit Karma and ask, hey, I’m looking for travel rewards, which of these three credit cards are the best for me? And then we interact with you and help you understand, which one is the best for you based on an additional set of questions that you’ve asked, where we now know more about you. That’s profound, because that will, over time, drive higher engagement, monetization, et cetera. And on the small business front, our entire focus is revenue and profitability increase. Everything that we are testing in market, learning in market is so that we can help you with campaigns that increases your revenue or manage your cash flow that better helps you with profitability.
And one of the things we’re testing with is to have experts that actually provide insights to you and those insights could be, hey, it’s time to take out capital because your sales are strong, or hey, I just finished doing your books for you. Would you like to have a conversation so you can understand your cash flow and how your books close for the month? And that’s a monetizable event for us. So probably a longer answer that you were looking for, but those are the things that are in market where we’re learning and adjusting and we think over time. We haven’t perfected any of this yet, because it’s actually hard, but we believe it’ll create an entirely new category of services and growth.
Alex Zukin: Super insightful. Thank you, guys.
Sasan Goodarzi: Yes. Thank you, Alex.
Operator: The next question comes from Kirk Materne with Evercore ISI.
Kirk Materne: Yes, thanks very much. And I’ll echo the congrats on the quarter. Yes, Sasan, can you just remind us where we are in terms of some of the cross-sell of QuickBooks into the Mailchimp base and vice versa? And when Intuit Assist goes GA for QuickBooks, will that be the point at which Intuit – can answer questions across sort of the front office and back office for customers? Can you just talk about that a little bit? Thanks so much.
Sasan Goodarzi: Yes, great question, Kirk. Let me start with the Intuit Assist question first. And I’ll share with you how we’re sequencing it. Right now our entire focus and remember, everything that we are doing here is based on data and AI. A lot of our investments are what you don’t see, which is ensuring that the data is usable, that it’s clean, that it’s structured the right way, and that our machine learning, knowledge engineering and GenAI capabilities can digest all of the data. Inclusive of data by the way, that’s contributed by the customer, like access to their Gmail account, access to their Excel spreadsheet, because a lot of customers data are in those two places, or they’re in shoeboxes and being able to take pictures.
And for us to be able to digest that data and actually deliver insights. So our first priority of order is to ensure that if you’re using our small business platform and if you are looking to put together marketing campaigns, that Intuit Assist is doing that for you. The second element of what we are focused on is then being able to transfer and use Intuitive Assist across QuickBooks and Mailchimp, because all the data points are connected. That is absolutely where we are headed and it’s sequenced in second place compared to what I just articulated, because we have to nail via the basics. But that’s actually where the power of our platform will show up for our customers, where whether you’re in Credit Karma or TurboTax, you can ask whatever question you want that is relevant in your life and we can answer it because all of our data points are connected and our AI capabilities are, in essence, working across the product.
So that is sequence, but we’re working on that as we speak. The second is cross-sell. First of all, I’ll start with we’re not thinking about it in terms of cross-sell. We’re thinking about it in terms of product integration. So what we are really focused on, and this is, by the way, this applies to TurboTax and Credit Karma. This applies to Mailchimp and QuickBooks. What we’re really focused on is integrating the product at moments of truth that matters most based on how the customer does the work. Like, for instance, if you are in QuickBooks on your left lap [ph]. This is just an illustrative example because we’re actually testing a lot of this, is that you can actually see how you can manage your customers and put together marketing campaigns.
And when you engage and click on that, you have the Mailchimp engine that is working behind the scenes. And after maybe a couple of free trials, then we share with you how much it is to pay for these capabilities. So that’s what I mean by product integration. We want to nail the benefits at the moment of truth that matters versus just try to sell you Mailchimp within the platform. We’ve found over time that that’s not as effective. What’s most effective is the product integration. So that’s the approach that we’re taking across all of our platforms.
Kirk Materne: That’s it. Thanks so much.
Sasan Goodarzi: Thank you. You’re very welcome.
Operator: The next question comes from Brent Thill with Jefferies.
Brent Thill: Just on for [ph] Credit Karma to get back to growth, what are the key ingredients that you need to see for that to get back to growth versus the declines we’ve seen the last year?
Sasan Goodarzi: Yes, a good question. A couple of things. One, which we are starting to see, which is just stability of partners and the environment. For the most part, other than some select partners, we’ve actually seen stability with our partners. And we’ve actually seen verticals like insurance come back, which saw a big decline last year. So one is just stability, and then the second is just the areas of innovation that we are focused on. One is we’ve redesigned the entire app. Now it’s rolled out to all members, which is a massive, massive feat. And based on the redesign of the app, there are many ways in which we can engage customers more so than we could before. And that will actually drive monetization. So that’s one lever beyond the macro that I mentioned.
The second is Intuit Assist. It’s the example I provided earlier where now customers can actually interact with us and ask questions and let us know what’s important to them and we can personalize things in a way that we could never before. And based on very early testing, we see the engagement is higher when customers are interacting with Intuit Assist, which over time will lead to monetization. That’s the second area. Third is just a number of initiatives that we have around prime. As we’ve mentioned before, prime is actually quite a large part of our monthly active users, but we’ve never really focused on it and now that’s an area of focus. And then last but not least is TurboTax. And TurboTax, the way we’re thinking about it is actually about product integration because the more we can engage members year round around, if they took out a mortgage or having them take a snapshot of their W-2 and letting them know what their refund could be, the more we can actually penetrate more of the members to use TurboTax as a method to get their access to the refund, all those things creating one platform is what we believe and are confident actually that will get us to accelerated growth and it’s really in that order.
So let me pause there hopefully, is that helps Brent?
Brent Thill: Yes, it was great. Thank you.
Sasan Goodarzi: You’re very welcome.
Operator: The next question comes from James Friedman with Susquehanna.
James Friedman: Hi. Thank you. I was hoping to get your thoughts on the opportunity for additional bill pay options. I believe Sasan, you mentioned in your prepared remarks rolling out same day ACH. But any high level thoughts on other bill pay options, including virtual credit cards? Thank you.
Sasan Goodarzi: Yes, thank you for the question. First of all, the key to success for us, given where we are on the rollout is one network connections. And as you heard in our remarks, albeit very early, the number of business network connections has doubled since August. And that’s important because it helps, it’s a huge step forward to then digitize how we in essence help customers get paid and pay bills. The second is just executing on our roadmap. The big thing that we’re starting to roll out that we talked about earlier is just faster payments and that’s through both paid ACH next day that we’re rolling out and also batch payments. And so we’re going to continue to look at what’s most important for our customers and that’s what’s informing our roadmap.
