Good morning. My name is Andrea, and I will be your meeting operator for today. At this time, I would like to turn the call over to Kerry McLean, Intuit's General Counsel and Corporate Secretary.
Hello, and welcome to the 2024 Annual Stockholder Meeting of Intuit Inc. I'm Kerry McLean, General Counsel and Corporate Secretary of Intuit. Thank you for joining us today, wherever in the world you're located. We'll begin with the business portion of our meeting. After that, Sasan Goodarzi, Intuit's CEO and President, and a director, will give an update on our business and answer your questions. We'll do our best to answer as many questions as possible, and we'll address any unanswered questions on the investor relations section of our website shortly after the meeting. This meeting is now officially called to order. We are joined today by Steve Mayer, representing Ernst & Young, our independent auditor. We also have Cathy Weeden, representing Broadridge, the Inspector of Elections for this meeting.
In addition to Sasan, Sandeep Aujla, Intuit's Chief Financial Officer, is also on this call and will be available to take your questions. A list of stockholders of record entitled to vote at this meeting has been available for examination for the past 10 days at the company's principal place of business. Now, let's turn to the formal portion of the meeting. I have an affidavit from Broadridge certifying that the meeting notice, proxy statement, and 2023 annual report, or the notice of internet availability of these documents, were sent on or about November 22nd, 2023, to all stockholders as of the November 20th, 2023, record date. These documents will be incorporated into the minutes of this meeting. The Inspector of Elections has executed their oath, which will be filed with the minutes of this meeting.
Broadridge has counted the votes cast on each proposal, and Ms. Weeden has informed me that we have a quorum. Any stockholder who hasn't yet voted or wishes to change their vote may do so by clicking on the voting button on the web portal and following the instructions there. Stockholders who have sent proxies or voted by telephone or internet and who do not want to change their vote don't need to take any further action. The polls will close in a few moments, after which the formal business of today's meeting will be concluded. After Sasan's business presentation, we'll provide time for general questions. Only validated stockholders may ask questions in the designated field on the web portal. You can submit your questions before the Q&A portion of the meeting begins. Please limit yourself to one question.
Only questions on the proposals to be voted on at this meeting that are consistent with the rules of conduct will be considered. Please note, this meeting is being recorded, and a replay will be made available after the conclusion of the meeting. We do not authorize any other recording of this meeting. Now, we'll turn to the matters being voted on. We have 5 management proposals that will be voted on at this meeting. Proposal number 1 is the election of 11 directors to hold office until the 2025 Annual Meeting of Stockholders or until their successors are duly elected and qualified. Proposal number 2 is the advisory vote on executive compensation or Say on Pay vote. Proposal number 3 is the advisory vote on the frequency of future Say on Pay votes.
Proposal number 4 is the ratification of Ernst & Young as our independent registered public accounting firm for fiscal 2024. Proposal number 5 is the approval of the amended and restated 2005 equity incentive plan, increasing the share reserve and duration of the plan. This year, we received a stockholder proposal, and the sponsor of the proposal wishes to make a brief presentation. Operator, please open the line for Grant Bradski from As You Sow, the sponsor of proposal number 6.
Good morning. Thank you for the opportunity to present this proposal. I'm Grant Bradski from the shareholder representative, As You Sow. This shareholder resolution is of the utmost importance as it asks the critical question: How will Intuit protect its employees' life savings from the economic consequences of climate change? Climate change poses material risk to retirement plan beneficiaries. The CDP reports that 215 global companies, including Intuit, have almost $1 trillion at risk from climate impacts, with many losses expected within the next five years. Over three-quarters of Intuit employees are invested in the company's default target date option, which is heavily exposed to high carbon and deforestation-intensive industries. These investments contribute to climate change, create systemic portfolio risk, and are poor long-term investments, particularly for younger beneficiaries whose retirement benefits are likely to be harmed due to climate-related financial losses.
Intuit knows we must address climate risk head-on. It's why shareholders are proud of our company's climate goals, including a goal to become carbon negative by 2030. Yet, how will we meet these goals if Intuit is at the same time directing over $189 million of employee 401(k) savings into fossil fuels and burning down the Amazon? These investments undermine the company's climate goals, expose employees' savings to financial risk, and harm the company's reputation on climate, which may make it difficult to attract and retain top employee talent and could expose the company to litigation risk, as occurred recently.... Just as Intuit has taken operational climate action, shareholders ask that Intuit now begin to address its target date funds and the $ billions of our employee retirement plan funds invested in fossil fuels.
This will not only protect our company from the economic impacts of climate change, but also protect our employees' life savings. Thank you.
Thank you, Mr. Bradski. We will now continue with the meeting. The board recommends that you vote for all 11 director nominees, for Proposal Two, one year for Proposal Three, for Proposals Four and Five, and against Proposal Six. We'll now pause briefly for anyone voting live to complete their votes. Now that everyone has had the opportunity to vote, the polls are officially closed. We'll publish the final vote totals in a Form 8-K that we expect to file within the next four business days.
Based on the preliminary results of the vote, the stockholders have elected the 11 board nominees named in our proxy statement, approved the advisory Say on Pay proposal, selected 1 year for the advisory proposal on future Say on Pay votes, ratified the selection of Ernst & Young as our independent registered public accounting firm for fiscal 2024, approved the amended and restated equity incentive plan, and not approved the stockholder proposal. That concludes our formal business today, and the formal portion of the meeting is now adjourned. In just a moment, we'll turn the meeting over to Sasan to give you his business update and answer any questions. Sasan's remarks may contain forward-looking statements, and there are a number of risks that may cause actual results to differ materially from our expectations.
For more information about those risks, please see our SEC filings, which can be found on the investor relations page at intuit.com. Thank you for your time this morning, and now I'll turn things over to Sasan.
Well, welcome to Intuit's annual stockholder meeting. I'm delighted to be with you this morning, and I will focus on two objectives. First, a look back at our performance. Second, I want to talk to you about our growth plans as we look ahead. One of the wonderful things about Intuit's history is that we have always focused on one thing, which is our customers. We've always reimagined the company, we've reimagined our experiences through many economic cycles, many technology cycles, all focused on what needs to happen to innovate for our customers and deliver the benefits that matter the most. This has taught us a lot over the years, and I would say has prepared us for the largest technological shift that I believe we will ever experience in our lifetime, and that is AI.
Five years ago, we declared that AI would change the world in every industry across the world, and particularly the one that we are focused on. We refreshed the company's strategy, we refreshed the company's bets, we refreshed our values and set a goal to lead in this era of AI. And particularly, what we talked about was creating a future of done-for-you experiences for our customers, with a gateway to expert help. In essence, being the assistant for our consumers and small businesses. And we believed at the time, five years ago, that data and AI was going to be core to create a future of done-for-you experiences, for our customers. And we have made a lot of progress in the last five years, and I would tell you that we are in the most exciting era of Intuit, and we are about to paint our masterpiece.
Now, as we look back, our performance has been noticed externally, where we have been on Fortune's Best Place to Work, and we've delivered shareholder value. Prior to declaring our refresh strategy and five bets, we had strong growth as a company, growing high single digits, and since we've declared our refresh strategy and five big bets, we've accelerated the company's growth to high double digits while expanding our margins. Last year, in a very tough economic environment, we grew our revenues 13%, and we grew our GAAP and non-GAAP operating income 22%. We've started the year strong, where we beat every metric that we committed to in the first quarter. So that's a very brief highlight of looking back at our company's performance.
We have the privilege to be able to serve, many consumers and small businesses and look forward to powering their prosperity as we look ahead. And with that, let me now talk about the future. And our growth plans are really based on what matters most to our customers, and there are a set of customer problems that we've declared that we believe are very, very important.... First of all, as we think about our consumers, our focus is to help our consumers make ends meet, find ways to get out of debt, save money, and when it comes to the largest check of the year, particularly in the U.S. and Canada, to help them with their tax refund. Now, many consumers decide to be entrepreneurs.
They decide to follow their passion and start a business, and our focus there is to help small businesses thrive by focusing on helping them grow customers, get access to capital, be able to get paid for their hard work, be able to manage their employees, and ultimately be compliant and thrive, as a small business. And these are the most important problems that we are focused on as a company. And the great news is we have a privilege of a very large total addressable market in the countries that we have declared. It's over $300 billion in size, and we have about 5% penetration. Now, most of the consumers and small businesses in our total addressable market are what we call non-consumption.
What that means is, and I'll use small businesses as an example, that they are using email, Word documents, Excel, Google Sheets, a shoebox, and bookkeepers, accountants, to be able to manage their life and manage their business. And our goal is to help accelerate the benefit that they are looking for by digitizing their entire way in which they run their business or their personal life as a consumer. Now, we are very fortunate, where we believe there are three secular shifts that are coming together simultaneously, and this has been converging, for the last five years, and we believe the next five to 10 years is gonna be an accelerant, where consumers and small businesses, particularly small businesses, are looking to digitize everything.
There is a generational shift of Gen Z and Gen Alpha, whereby 2030, 45% of the workforce are gonna be Gen Z and Gen Alpha. And last but not least, the largest technological shift in our era that I just talked about a moment ago, which is AI. So the convergence of these three things, digitization, the generational shift in Gen Z and Gen Alpha, and AI, together create an opportunity where as long as we execute well, we can create a digital platform with a gateway to AI-powered human experts to revolutionize the experiences that we deliver for our customers. So with that as context, well, let me talk about how we will position ourselves to deliver for our customers. We are a very mission-based, purpose-driven company.
We focus on inspiring our team members to focus on what matters most, all the way to what we choose to declare as metrics and how we inspect our progress against our metrics. Let me highlight what that looks like as we look ahead. Every day, we show up to work to power prosperity for our customers. Every single one of our employees are looking for ways to help consumers and small businesses thrive and power their prosperity as they see it fit. Now, we are guided by very intentional values for the company, behaviors and standards that we live up to every day.
From the trust that we expect and doing what's right when nobody is looking, to being bold and fearless in what we declare and delivering the great innovation for our customers, being very focused on our customers' largest problems, delivering unrivaled benefits, while sweating every detail of the experience that our customers expect of us. Being a champion of our diversity and inclusion and creating an environment where our team members can do amazing work for our customers and deliver amazing results, while at the same time, making the environment around us better. These are the values that we live by every single day, and as I mentioned a moment ago, one of the values is actually about being bold, and that informs how we think about setting goals.
We have set bold 2030 goals to measure ourselves against the mission that I just talked about, creating an amazing reputation as a company, and accelerating our growth as a company. Let me focus on one of these, bold goals that we've declared by 2030, and that is, we wanna double household savings rates, and we want to increase the success rate of small businesses. Today, those that are on our platform, consumers, have a savings rate that is 1.6 times better than those that are not on our platform. And small businesses, 50% go out of business after 5 years, and those on our platform, as of last year, were 19 points more successful than those that are not on our platform.
So we have set very aspirational goals as we look out in the next 5-6 years to power prosperity for our customers, increase and improve the reputation of the company so that we're one of the most reputable companies around the world, and accelerate our growth rates. Beyond the bold aspirational goals that we set for the long term, we also have very operational goals that we set for 1 and 3 years. Now, the way we run the company is across 4 stakeholders. We focus on creating an environment, a high-performance culture environment, where we have the best talented employees to do the best work for our customers, delight our customers and deliver the benefits that matters most, improve the communities around us, and we believe by doing, doing those three things right, we will increase and create shareholder value.
Now, for each of these areas, we have very specific goals. We have very specific metrics for the year that we are in and for the next three years, that the board holds me accountable to, my staff, and we hold the whole company accountable to. Now, with that as context, let me talk about how we will achieve these goals. It starts with our strategy, and there are two things that I will amplify around our strategy. One is the benefits that we are focused on for our customers. We are focused on helping our customers put more money in their pockets, doing it with less or no work, and being completely confident in the decisions that they make, whether it's a consumer or a small business.
The second is, five years ago, when we declared that we would be an AI-driven expert platform, the essence of what that means is we wanted to create a set of experiences where the future is done for our customers, where we deliver experiences of done for you, where the customer is always in control, with never a dead end and always a gateway to expert help. We believe that we must be the assistant in the pocket of our customers to help power the prosperity of consumers and small businesses. Now, in order to achieve this strategy, we declared five big bets. Now, our bets go after the largest customer problems. They go after the largest total addressable market and position us for the best growth in the company as we look ahead. Let me highlight the key things in each of these big bets.
The first one is about revolutionizing speed to benefit. The biggest need that customers have when they come to us is they want the benefit that they are looking for, and this has really been a data and AI bet. This is where we have focused on, with our customers' permission, getting as much of the data that's required for a customer, applying machine learning, knowledge engineering, and Gen AI to revolutionize the experience and deliver experiences where the work is done for our customers to revolutionize speed for benefit. Now, that is important in context of never having a dead end, always having a gateway to expertise, which is our second bet, connecting people to experts. The largest unsaid problem that our customers face is confidence.
It's why there is such a large marketplace for bookkeeping, for accounting, for tax pros, for, for business pros, because consumers and small businesses need human expertise to be able to make decisions, run their business, manage their life. And what we are doing with this bet is creating a virtual expert platform, where we have experts that are AI-powered, that sit on our digital platform, where a customer can access an expert, whether it's a small business or a consumer, at any time in which they need, to be able to help get financial advice, tax advice, get their taxes done for them, and if it's a small business, to help them run their business, give them advice, do their bookkeeping for them, do their business taxes for them. It is about connecting people to experts. Our third big bet is about unlocking smart money decisions.
This goes after the largest pain point of helping our customers make ends meet. This is about helping our customers save money and get out of debt. And really, what we are doing here is creating a platform where we are integrating all the capabilities of Credit Karma and TurboTax into one platform, so a consumer can save money, get out of debt, make ends meet, find ways to improve their credit score, and get their taxes done, and get advice on what to do with their refund, all in one place to unlock smart money decisions. Our fourth big bet is about becoming the center of small business growth. The largest problem small businesses face is twofold. One, they're looking to grow customers, to retain customers, to know which customers are the most profitable, and manage their cash flow. It is the reason why they thrive.
It is the reason why 50% of businesses go out of business after 5 years. Our vision here is to have a platform in one place, leveraging our customers' data and applying AI, so we can automagically help our customers grow their customers, retain their customers, manage their cash flow, and thrive all in one place. This is where we are integrating all the capabilities across Mailchimp and QuickBooks, and all of the data and AI capabilities to create a platform of done for you with a gateway to expert help. It's why I led earlier with the stat of small businesses that are on our platform are nearly 20 points more likely to be successful and thrive versus those that are not. Then our last bet is really about disrupting the small business mid-market, which is taking our current game and going mid-market.
Mid-market, as we define it today, is small businesses that are between 10-100 employees. They have the same needs, just higher scale. They have more customers, more employees, more vendors, and it's building out our platform to be able to serve these customers that we know very well. Those are our 5 bets to achieve the strategy that I touched on earlier. Now, with that as context, I wanted to just share with you what gives us a lot of confidence in the assets that we have to really create experience advantage for our customers. It's data, it's AI, it's the largest network of experts that we have, and an ecosystem of applications with a very large reach of customers.
In order to create a future of done-for-you experiences, you have to know the customer, and so we have, on average, about 500,000 data points per small business and over 60,000 data points per consumer. That allows us to leverage everything that we know about our customers, with their permission, to deliver insightful recommendations and experiences for them. And one of the things that's very different regarding the many technological shifts that we've led through over the last 40 years is we were one of the first to declare AI is key to our growth plans moving ahead. And so we have invested heavily in machine learning, in knowledge engineering, and generative AI to begin to create these done-for-you experiences.
And then we have the largest network of experts, AI-powered human beings on our platform, that are there to assist our customers and to give them advice, to do the work for them and with them, so that we can power their prosperity. And of course, the largest ecosystem of apps that allows us to see a lot of money coming in, a lot of money going out, and allows us to really transform our experiences for our customers. Now, let me highlight a few data points that shows you our strategic progress. Couple of things that I would highlight is in the QuickBooks business, our QBO subs grew 10% with our revenue growing, online revenue growing 30%. The second thing I would call out is our QuickBooks Advanced, which really serves mid-market.
We grew our new subs over 30%. In essence, serving higher value customers that are over $5,000 in ARPC, that grew over 63%. Our TurboTax Live business, which is really going after the assisted market, revenues grew 17%. And these are all, I think, important strategic highlights around the progress that we've been making in the last several years. Another set of metrics that are important to call out, even in a very tough economic environment, the frequency of our Credit Karma members engaging increased year-over-year. So we have over 40 million monthly active users in Credit Karma, where they engage on a frequency of 5.1 times a month, which is higher than it was last year.
Our payroll new customers in mid-market, serving mid-market, grew over 30%. And then again, in a very tough economic environment, because of all of our innovation, our total payments volume grew 18%, while Mailchimp-paying customers grew 17%. So these are really metrics that we are very proud of, that demonstrates our strategic progress. And I think last but not least, that I would call out is, in countries where we've gotten to product market fit, we've really demonstrated internationally the ability to accelerate monetization, and it shows up with our, our revenue growth of over 30%. So those are some key highlights around our strategic progress and what gives us confidence as we think about the long term. Now, a lot of this is driven by innovation across all of our five bets and across the entire company.
But if I could, let me highlight what, what I would say is, is the largest innovation, because it's not a feature, it's not a functionality. It is the accumulation of five years of focus to create and begin the journey to create a future of done-for-you experiences, with a gateway to expert help. So in September of last year, we launched Intuit Assist. It is the culmination of our strategy in five bets, where we want to be the assistant in the pocket of our customers, whether it's a consumer or a small business, to really help power their prosperity, to help small businesses thrive, to be successful, to grow, because by doing that, we actually help the global economy.
And so, let me ask you to look at a video of the offerings that we launched in September. Now, we've been in market, we've been learning, we've been pivoting, and several things have actually evolved and changed from the video you're about to see. But this is a good refresher of the journey that we are on, to create a future of done for you, with a gateway to expert help. Here's the video. ... I hope you can see how revolutionary this is going to be in the long term.
As you saw, in these experiences that we launched in September, imagine having an assistant that can help you with which customers to target if you're a small business, which ones are the most profitable, as we automatically run the campaign for you, with you always in control. As we help you with what your cash flow projection is going to look like, and what choices and decisions to make to be able to grow your business. It is really about bringing the power and the insights of a large enterprise to our customers, so they are never alone. And that we can always provide the best recommendations and engine.
Because of our investments in data and AI, and particularly what I talked about earlier around knowledge engineering, which is really focused on, accuracy and generative AI capabilities, we're really able, to provide personalized perspectives and insights and always learn and get better, which is why we are so excited about the future of what is possible to deliver done-for-you experiences with a gateway to AI-powered human expertise. To give you a glimpse in terms of, our hypothesis as to how we will, monetize, and we're learning and testing with a lot of this as we speak.
One, is we believe that this will serve as an opportunity to accelerate new customer growth and breakthrough of our adoption of our services, because in essence, we are engaging customers in the moment of truth, where it matters to provide benefits, which allows us to accelerate adoption of services and new customer growth. Two, we believe that this will be one of the largest gateways to increased adoption of our live expertise, because again, we are engaging customers at the moment of truth when they need it most, to help them understand that an expert is there to help, that an expert is there to provide advice, to do their bookkeeping, to do their taxes for them, to give them advice, whatever it may be.
And last but not least, of course, an opportunity not only to price for value, but we will be testing standalone offerings that are just Gen AI offerings, which will be higher valued SKUs, that we'll experiment with. So this is just a little bit of a glimpse in terms of how we think about the monetization and how we believe in the long term this will be an accelerant of growth, for Intuit. So let me begin to wrap up by hitting on two things. One, what we believe is the company's competitive advantage, and then I'll talk about our opportunities and risk.
You know, one of the things that we talk about a lot in the company is life is about 1% inspiration and 99% perspiration, and you have to be intentional in terms of how you run the company. And the way we run the company is really at the highest level, threefold. It's about how we set expectations, then declare where we're headed. It's about focus on execution, which is how we focus on delivering and transforming the company, and also how we always continue to align and inspire our 18,000+ very talented team members.
And to give you a glimpse of specifically what that looks like, we have a process as we think about setting expectations and strategy, where we think about the long term, 6+ year insights, looking at the landscape and how that may inform our big bets, to very specifically our focus areas around our 3- and 1-year plans, and an intense focus on building a high-performance culture, which is around talent and succession planning, 'cause at the end of the day, we're in the people business. Then the second element of our Intuit Operating System is focusing on outcomes, inputs, and ultimately experiences. Then last but not least is the mechanisms that we have to galvanize our leaders and galvanize all 18,000+ employees in the company.
We call this our Intuit Operating System, and it is our belief that it is core to delivering innovation, experiences, building capability, not only for today, but for the next 40 years. To begin to close things out, you know, we have a lot of opportunities ahead of us, and we always think about risks that we need to manage. Our biggest opportunity is truly how we deliver a future of done-for-you experiences with gateway to expertise. We believe this can revolutionize the $300 billion in TAM that we have and accelerate our, our penetration. A big part of that is really about how that allows us to become the center of small business growth, to improve the success rate of small businesses.
And we believe, and we focus, heavily on always architecting the company for improved velocity. We believe that, our customers' standards are the standards in which we need to live by, which means we always need to move fast, to be able to deliver for our customers. So we always think about what things we need to do to continue to architect the company for velocity, while at the same time continuing to make progress, in international and those, we view as, critical areas and potential risks at a company, you know, as we look ahead. So let me end with where I started.
We wake up every morning, focused on what matters most to our customers, to power their prosperity around the world, because we believe doing our job right, and powering prosperity, we can drive economic growth around the globe and in the countries that we've chosen to be in. So hopefully, you have a good feel, for not only our performance as we look back, but our growth plans to deliver for our customers, as we look ahead.
... So with that, let me open it up to any questions that you may have. Thank you.
As Sasan mentioned, we'll now open it up for stockholder questions and comments. I'm Kim Watkins, Intuit's Vice President of Investor Relations. I will read the questions that are germane to the meeting. If there are germane questions that we don't get to during the time allotted, we will respond to them on the investor relations section of our website. Our first question is: Intuit has taken public stances on numerous hot-button issues, such as abortion, trans issues, gender identity content in Florida public schools, as well as others. Why not stay out of politics?
So thank you very much for your question. I'll start by saying, you know, our focus is really about building a high-performance culture and accelerating innovation for our customers. It is not about spending time on politics. As I mentioned just a moment ago, we are a mission-based company, and we have values that, you know, really inspire us in terms of how we expect to behave, how we expect to lead with all 18,000 employees across the company. And one of our values is about being stronger together, which is really a very strong belief in diversity and inclusion. You know, our perspective is that in order to deliver innovation for our customers, our customers are diverse.
So we have to ensure that we have the diversity of experiences and perspectives across our team. Secondarily, you know, diversity is a fact, inclusion is a choice, and we believe inclusion is very important relative to an environment where our employees can bring their whole selves to work and be comfortable to be who they are to innovate and deliver amazing results for our customers. So that's our focus, that's what we stand for, and we believe it's really important to drive shareholder value not only today but for the future.
We'll pause briefly to allow others now to submit their questions. We have no further questions.
All right, well, let me maybe bring us to a close. Thank you so much for spending time out of your day and your busy schedule with us. Hopefully, we painted a good picture of not only our performance looking backwards, but our plans to deliver for our customers looking ahead. Wish all of you an amazing day and an amazing 2024. Talk to you all next year. Bye-bye!
Ladies and gentlemen, thank you for participating. This concludes today's meeting.