Intuit Inc INTU
Q1 2013 Earnings Call Transcript

Transcript Call Date 11/15/2012

Operator: Good afternoon. My name is Saeed, and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit's First Quarter Fiscal 2013 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.

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

Matthew Rhodes - IR: Thank you very much. Good afternoon and welcome to Intuit's first quarter 2013 conference call. I'm here with Brad Smith, our President and CEO; Neil Williams, our CFO; and Scott Cook, our Founder.

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, as well as our Form 10-K for fiscal 2012, 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 statements.

Some of the numbers in this report 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. 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 Brad Smith.

Brad Smith - President and CEO: Thanks, Matt, and thanks to all of you for joining us. We are off to a strong start in fiscal year 2013. We grew first quarter revenue 12% and we're reiterating our guidance of double-digit top line and bottom line growth for the full year. You will hear more on that from Neil in a minute. The key driver of our performance continues to be in the secular tailwind that we are riding towards a connected services economy backed up by continuous innovation and strong execution. In the first quarter our total small business revenues grew 18% with 13% growth excluding the benefit of Demandforce. Our connected services offerings are powering this performance.

Financial Management Solutions revenue grew 20% with subscriber growth of 29% in QuickBooks Online, 25% in QuickBooks Enterprise and over 60% in Demandforce. Employee Management Solutions revenue grew 12% with our Intuit online payroll subscribers growing 20% in the quarter and our payments revenue is also grew 21% with customers growing 16% behind the strong adoption of GoPayment, our mobile payment solution.

As we shared at Investor Day in September, we have a refreshed approach to our connected services strategy to further capitalize on the structural shifts that will continue to service growth catalysts for many years to come. Our refreshed three-point strategy has grounded in first delivering awesome product experiences. Computing devices have moved to the palm of our hands in the form of tablets to smartphones and we're increasingly focused on reimagining our products with a mobile first and in some cases mobile-only design. A key success factor to winning in this mobile world is ensuing that we deliver an amazing first-use experience. That means our customers get the value they signed up for as easily and as quickly as possible.

Read our Earnings Call Transcript disclaimer.
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