Intrado Inc INTU
Q3 2013 Earnings Call Transcript

Transcript Call Date 05/21/2013

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 Third 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, Saeed. Good afternoon and welcome to Intuit's third 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, 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 to 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 Brad Smith.

Brad Smith - President and CEO: All right. Thank you, Matt. I want to thank all of you for joining us as well. Today, we reported third quarter revenue of $2.2 billion, up 13% from last year. Yesterday, we also announced a series of organizational changes to better focus our efforts develop our leadership bench and accelerate our progress.

We anticipate the combination of these two announcements has generated many questions in your mind. So, we are going to keep our prepared remarks brief and leave the majority of our time for your questions. But let me begin by proactively addressing one of the questions that I suspect is on everyone's mind. What happened this tax season? As we announced last month, TurboTax paid unit increased 4% and we now anticipate TurboTax revenue will also grow about 4% for the fiscal year.

Needless to say, it was a challenging tax season in almost every dimension and things played out differently than we had expected. There are four key drivers that form the foundation of our tax planning and results each year. The first is the number of overall tax returns filed with IRS. IRS returns were down nearly 1% this year through May 3 versus our expectation of 1% to 2% growth. This was a meaningful difference as each of point of total return growth equals about $15 million in TurboTax. So, this delta and returns filed accounted for about two points of TurboTax growth that did not materialize.

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