Good morning and welcome to Intuit's Virtual Investor Day. My name is Kim Watkins. I'm Vice President of Investor Relations here at Intuit and we are thrilled that you're joining us here today. We have a great event planned for you. We'll start off with Sasan taking us through our AI driven expert platform strategy.
From there, we'll head to a platform immersion experience where you'll get to be intimately familiar with our strategy, including actually experiencing our 5 Big Bets. After that, we'll take a short break. Then we'll have Greg and Alex come up into a deep dive on our 2 largest businesses. From there, we'll have Lara Balazs who will take us through our corporate responsibility strategy and really help us understand how that strategy intersects with our business strategy. We added Lara to the lineup this year because based on questions from many of you, we know what's on your mind.
After that, Michelle will wrap it up with some financial perspective and then we'll have plenty of time for Q and A. And just know that for Q and A, you do need to be registered. So if you're not on a registered link, but you anticipate wanting to ask questions, please reach out to someone on my team and we can make sure to send you a link. But first, before we get started, the obligatory housekeeping, forward looking statements. These presentation materials include forward looking statements.
There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled cautions about forward looking statements in the enclosed appendix for information regarding forward looking statements and related risks and uncertainties. You can also learn more about these risks in our Form 10 ks for fiscal 2020 and our other SEC filings, which are available on the Investor Relations page of Intuit's website at www.intuit.com. We assume no obligation to update any forward looking statement. Non GAAP Financial Measures.
These presentations include certain non GAAP financial measures. Please see the section entitled About Non GAAP Financial Measures in the enclosed appendix for an explanation of management's use of these measures and reconciliation to the most directly comparable GAAP financial measures. In this presentation, we may also announce plans or intentions regarding functionality that is not yet delivered. These statements do not represent an obligation to deliver this functionality to customers. Some numbers may not agree with the sum of the components nor with SEC filings due to immaterial rounding and adjustments.
Financial results are reported under ASC 606 unless otherwise noted. As I mentioned, after Sasan's comments, we'll take you through a virtual platform immersion experience with a goal of helping you become much more familiar with our strategy, including our 5 Big Bets. Many of these demonstrations will be presented by some of the senior leaders at Intuit, including many members of Sasan's staff and we'll also give you an opportunity to ask them questions. Okay, I think we're ready to get started. Now I'll hand it to our CEO, Sasan Bedarzhi.
Thank you, Kim, and a very warm welcome to all of you. I'm coming to you from my home office in the Bay Area and thank you so much for letting me into your homes. I'll tell you I'm very excited about today and if there is only one thing you are going to take away from your time with us, I hope that you see that we are accelerating innovation across the company. Now, I'm going to spend my time on 3 topics. 1, I'm going to do a look back for FY 2020.
2, I'm going to do a look forward and I'll talk about our game plan to accelerate innovation and deliver for our customers. And third, I will share proof points that gives you confidence around our trajectory as we look ahead. Let me get started. One of the things that we take pride in and it's what Scott Cook started 37 years ago is a company that is obsessively focused on customers. Scott taught us to focus on customer problems and not fall in love with our solutions.
And that is why over the last 37 years, we have not been afraid to self disrupt ourselves and reimagine the company. And we're one of very few companies that was born in the era of DOS and has led through 4 significant platform shifts. And not only have we led through these 4 platform shifts, it's created a DNA in the company of delivering strong results for each stakeholder. We've been on the top great place to work on Fortune's list. We've doubled customer growth.
And if you've been a shareholder in the company, you've enjoyed nice returns. Now FY 'twenty was another very strong year in context of a pandemic. We grew our top line by 13%, operating income grew faster than revenue, and we expanded our margins. And one of the things that we are most proud of is that our platform revenue ended the year at 4,800,000,000 growing at 22%. Now beyond the results, let me just step back and share with you our view across 7 performance drivers, and I'll start with our employees.
This was a year where our culture stood tall. Overnight, we moved 10,000 of our employees to go work from their home. And in the midst of adjusting to working from home, I personally was amazed how our teams came together to deliver for customers at a time that mattered most. At the same time, this is a high stress environment for our employees, whether they're right out of college and sharing an apartment with 4 others and trying to get their work done and being cooped up in their apartment or folks with families where they're trying to homeschool their kids and still deliver for customers. And it's a year that we realize that we can really up our game around diversity and inclusion.
When it comes to customers, this was a year where our innovation accelerated 3x compared to this time last year. We measure innovation by code deployments per week and we were very impressed with the incredible work of our teams. But not only did innovation accelerate and the benefits that we delivered for customers accelerated, we delivered better site performance, better availability and better security for our customers. At the same time, we believe that we have an opportunity to continue to improve our first time use to nail the experience and speed the benefit for our customers. Now our mission is to power prosperity around the world and it's not only through our products and services, but making our communities a better place.
And what we're really focused on is to create jobs in distressed communities, to be able to train folks in distressed communities that are more prepared to go to the job market and improve our impact to climate around the world. Now this past year, we have 7 prosperity hubs where we hired folks to deliver for our customers and customer success. We made a $70,000,000 economic impact in those distressed communities. We trained over 150,000 people that were now better fit for the job market and we are carbon neutral as a company. And we are tripling down on our efforts and the goals that we have set to not only create more jobs, to train more folks to be ready for the job market and also the positive impact we want to make around climate around the world and we're going to talk about that more later.
Core to our strategy is about being an AI driven expert platform. This past year, we increased the number of AI models that we put in production by 50%. It's a key reason for accelerating our innovation across the company. And at the same time, we accelerated the services on our platform. The virtual expert platform is one example.
When you think about TurboTax Live, it took us years to build out the platform for TurboTax Live. It took us months to leverage that same platform for QuickBooks Live and it took us weeks for Mints Live. At the same time, our view is we are just getting started and we can significantly accelerate our speed and our innovation on the platform. It was just 18 months ago that we declared 5 big bets. And once we declared the big bets, we also implemented an execution system, which is around input goals, which means we are very clear about all the key deliverables to achieve the outcome for the input goals with very clear Now the reason we are proud of the 60% is we want our teams to swing for the fences.
We want to learn to live in an environment of yellow and reds because it only build our muscle to move faster, take bigger swings and deliver more innovation for our customers. And of course, we could not be more excited about the acquisition of Credit Karma and I will talk about that in a moment. At the same time, we are constructively dissatisfied because we believe we continue to up our game and having healthy paranoia to take bolder swings relative to our input goals in context of our big bets. And last year, we were not happy with our progress on Big Bet 4. And this is the bet that's about being the center of small business growth, but specifically around transforming omnichannel commerce.
Now I could not be more excited about what we are going to reveal today around that bet. When it comes to market results, we grew our active users. In fact, retention went up in TurboTax and held very well in a very tough environment in QuickBooks and our product recommendation scores and net promoters all went up and to the right. At the same time, we have an incredible relationship with 57,000,000 customers and we believe we can deliver more benefits, more innovation to increase our wallet share and at the same time accelerate our share gains internationally. And last but not least, our financial results, as I mentioned earlier, what we feel great about is our 13% top line growth.
The fact that we grew operating income faster than revenue and our platform revenue is $4,800,000,000 growing at 22%. But we have set very bold goals for ourselves for 2025 and we are constructively dissatisfied because we believe we are better than the results that we are delivering. So that is a look back at FY 'twenty. Let me now shift to a look forward and talk about what we are going to do to accelerate our innovation to deliver for our customers. Now we've gotten all of our employees and our partners focused on the most important customer problems that we want to solve.
All of those that we serve behave like consumers. They're trying to make ends meet. They're trying to get out of debt and they're trying to save money. And depending on the country that we serve, they're looking for their largest paycheck of the year, which is the tax refund. And for those that have been bold enough to be entrepreneurs and to go to business for themselves, they are trying to get customers, get paid, get access to capital, ultimately ensure that they can take care of their employees and be compliant.
The whole company is focused on these customer problems. Now these customer problems also have a catalyst Now these customer problems also had a catalyst behind them around growth. Now I shared this with all of you at Investor Day last year. These 5 trends still hold, but I want to just focus on 3 of them. The pandemic accelerated 3 trends by 5 to 10 years.
First, a shift to a virtual world and it is happening in every industry, whether it's medicine, whether it's education, whether it's fitness and it's happening in taxes and bookkeeping and in accounting and in financial services. The second is money has always mattered. Folks have always tried to figure out how to get out of debt and save money. And for those that have experienced the pandemic, it matters more now than ever before, which is why the FinTech Industry is exploding because of the benefits that's being delivered. And third, it's accelerating a shift to online and a shift to omni channel.
And our bets are positioned to take advantage of these three trends. And so let's get into that. Let me walk through our game plan. And our game plan starts with our mission. This is what gets our heartbeats going faster every single day.
It is to power the prosperity of our customers, which matters more now than ever before. It's through our products and services and our innovation, but it's also what we do to make the communities around us a better place. And in that context, as we look ahead, for the 4th time in our history, we have refreshed our values. We have 5 values. Now 2 remain unchanged are the cornerstones of the company.
It's integrity without compromise, which is ultimately doing what's right when nobody is looking and we care and give back, which is helping our communities around us and leaving the world a better place. We evolved free to ensure that not only we preserve what we love about who we are, but the company that we want to create. And it's about courage. It's about setting very bold goals and being bold about our innovation and taking risks and building a company that's all about learning and speed. It is about customer obsession.
It's a focusing obsessively over what matters for our customers and delivering unrivaled benefits and having every single person in the company starting with me sweating the details of what matters most to our customers. And third is stronger together. It is important that we create an environment around diversity and inclusion. Diversity is a fact. Inclusion is a choice and it's how you make people feel.
And in order for us to continue to accelerate innovation, it's important that we represent our customers from a diversity of perspective and experiences. And at the same time, create an environment of inclusion so that people can bring the best self to work and do amazing work. In that context, if you recall last year, one of the things that we talked about is we set for ourselves a very high bar for 2025. We want to set ambitious goals for ourselves that measures our progress against our mission, the reputation that we want to uphold and growth. The prosperity goal that we set was that we want to double household savings rate for anybody on our platform and we want to increase the success rate of small businesses by 10 points above the 50% success rate.
We want to be one of the best in class reputable companies in the world and we want to achieve 200,000,000 customers and accelerate our revenue growth. Now I am happy to report that we have a progress across each of these dimensions year over year. For those that are on our platform, they save 1.2 versus the average household savings. And in fact, we are already 10 points above industry average when it comes to the success rate of small businesses. We improved our reputation score this year compared to last year and we are in the top quartile of tech companies.
And we grew our customers 10% and achieved 13% growth. So we are making progress on those very bold goals that we set for 2025. Now these are ambitious goals. We are setting goals that we can strive towards. And at the same time, we also hold ourselves accountable to our true north goals.
And for those of you that are new following Intuit and for those of you that have followed us for years, you know that we measure ourselves against several stakeholders. There was one important change that we made this year, but I'll start with our focus is to empower the world's best talent to ultimately deliver amazing innovation for customers to make the communities around us better and deliver great shareholder results. The one change we made this year is we had partners, partners are very important and ones that we will continue to work with and measure our progress against, but we replace partners with communities because we believe is a higher order of focus that we need to have to ensure that we make the communities around us a better place. We also evolved a few of the goals. Now I know you don't see any metrics here.
Trust me when I tell you that we have metrics for FY 'twenty one and FY 'twenty three. It is what we share with our Board. It's what me and my team in the company is held accountable for. There's one change that we made under employees and that is we have publicly set diversity and inclusion goals because we believe that we need to up the bar for ourselves and become a role model and a gold standard for companies around us. We simplified our metrics for customers and the focus is growing active customers that ultimately buy more services and recommend us.
And then you can see the community goals which is around creating jobs in distressed communities, training folks in distressed communities so they are better fit for the job market and improving the impact on the climate around us. With our mission of powering prosperity around the world, refreshed values and goals, let me talk about our strategy. Our strategy remains unchanged. It is focused on 3 core benefits. Every innovation that we focus on is about helping customers put more money in their pocket, eliminating work and drudgery and doing things in a way that delivers total confidence.
And we do that through an AI driven expert platform, a true open platform where us and others build on our platform to solve the very problems that I mentioned earlier, accelerating the use of AI to the data that we have on our platform to deliver more innovation, to eliminate work and put more money on our customers' pockets and bring expertise on our platform so that ultimately customers have confidence in everything that they do, an AI driven expert platform. Now in that context, we set 5 big bets about 18 months ago. These bets are grounded in our customers' biggest problems and they represent areas where we have a right to win and the biggest opportunities for growth for Intuit. The first is about revolutionizing speed to benefit. This is really a data and AI bet.
We ultimately want to have a platform and a set of experiences where the customer never has to lift a finger that all their data is available for them on their platform, whether it's things they have in Google Sheets, Excel, W-2s, 1099s, their bank information, their commerce information, we want to make sure that all the data is available for the customer and we then apply AI to that data so that the customer never has to do any work, revolutionizing speed to benefit for our customers. 2nd bet is about connecting people to experts. The largest customer problem that's unsaid is confidence. We are dealing with people's money and the reason there is a $30,000,000,000 TAM where folks go to others to get their taxes done, their bookkeeping done, their accounting done and get help to run their business and get financial advice is because they are looking for confidence. And our vision for this bet is to create a virtual expert platform so that we can bring the expertise into your home, however, which way you want it and in the pocket of your hands.
And this is why TurboTax Live is thriving with our new innovation with Cookbooks Live and Mint Live, we believe that we can truly revolutionize delivering confidence to our customers in ways that they never imagined possible, connecting people to experts. Our 3rd bet is about unlocking smart money decisions. This is all about going after savings and debt. Now if you just look at some numbers in the United States, we are consumers are in significant debt in the United States over $14,000,000,000,000 and they are overpaying for credit card fees, overpaying for auto loans and just in 2018, 23,000,000 people paid a lot of money for a payday loan and customers are looking for advice. And so our vision is to fundamentally transform the FinTech industry.
It's to have a platform, a mobile app in your pocket that leverages your data to connect you to financial products that are right for you, an agnostic platform that will connect you to the right credit cards that are right for you, the right auto loans, home loans, auto and home insurance, personal loans, an app that ultimately will help you get early access to your tax refund, early access to your paycheck, give you high yield savings accounts and one that will bring expertise onto the platform to give you advice. I just want you to imagine an app that ultimately where you can get your taxes done with expertise at your fingertips, get connected to any financial product that you want, get access to your paycheck and your tax refund sooner than when you may want it because of the fact that you're trying to make ends meet and ultimately be able to get the expertise and help that you need. And with Credit Karma, we can fundamentally change the game for consumers. We couldn't be more excited about the Credit Karma acquisition. They bring over 100,000,000 customers, 37,000,000 monthly active users.
They have machine learning capabilities. They have one of the highest net promoters in the industry. And ultimately, they have built an incredible equity to solve a lot of the problems that I just mentioned. And when you bring their 100,000,000 customers and our 57,000,000 customers, we have well over 100,000,000 customers. We have over $88,000,000,000 in tax refunds.
We have the power of the customers' data in their hand. We have 2 industry leading brands where we can fundamentally go after debt and savings for consumers. And in February, when we made the announcement, we brought Ken in. We got very excited about the possibilities of Intuit and Credit Karma and ever since then, have of course been working on the close and getting ready for day 1 so we can innovate and thrust the benefits that we can deliver for our customers. That's big bet number 3.
Big bet number 4 is about being the center of small business growth. It is about shifting from being just a source of truth for your books to being the source of truth for your business. What that means is we want in one place for you to be able to get customers, get paid, get access to capital, be able to pay your employees and ultimately ensure that you're compliant. We had a particular focus on this bet, which is around also transforming omnichannel commerce. I am so excited that today there are 2 innovations that we are going to highlight.
One is QuickBooks Cash and QuickBooks Cash in essence is the one place where you can receive and send money and the one place where ultimately your accounting can get done for you without lifting a finger. You're going to hear more about that from Alex and Rania. The second is today we are revealing our launch of QuickBooks Commerce, which we couldn't be more excited about to help transform omnichannel commerce for our customers. The last bet is about disrupting the mid market small business. Same customers we've been serving for years on desktop enterprise and we are now going to do it on the cloud.
We just launched QuickBooks Advanced about 18 months ago. This team is innovating at a pace that's staggering, delivering a very simple platform that's easy to use and ultimately at a disruptive price. Our refreshed strategy and our 5 big bets is going to allow us to lead through the next platform shift and leverage AI to thrust innovation for our customers. And we are inspired by our mission, inspired by refreshed values, our strategy and the 5 bets that we have to truly do things that you could never imagine possible for our customers. Now in that context, we're really focused on creating a company that takes pride in creativity, takes pride in innovation and takes pride in the speed in which we deliver innovation.
And this is where we have 2 secret sauces that we are continuing to strengthen. One is what Scott Cook taught us 37 years ago, fall in love with the customer's problem, focus on how you can design many different solutions and narrow to 1 and ultimately let the code and the data decide whether the customer loves that product. The second is how we run the company. It's our second secret sauce. It's about ensuring that we're very clear about long term expectations and strategy, obsessively focused on the capability and the talent that we need and make sure that we are monitoring and reviewing the progress against our input goals to ultimately expose friction and what we need to do to unleash the potential of our engineers while inspiring our employees, which is what this circle is about.
Now in that context, executing well, when you look at the right side of this page, this is where we can build advantage, which is the more customers that we solve their problems on our platform, the more we leverage their data with their permission and apply AI to solve additional problems and the more partners we get on our platform, the more experts we get on our platform, it really creates a network advantage. And that is what allows us to go after a very large TAM. It's ultimately about growing our core, connecting the ecosystem and expanding globally, which brings me to my last point, which is sharing with you some results and proof points that share with you the trajectory of our future. 1st and foremost, when you look at QuickBooks, based on all the innovation that the team is delivering and what you're going to hear later today, we had new customers grow at 36% that's at an ARPC of greater than 1,000 because of the benefits that we are delivering. The second is with QuickBooks Advanced, we had 100% customer growth and we are just getting started.
And if I shift to TurboTax, we had the fastest customer growth in 4 years and TurboTax Live specifically grew 70% where almost 70% of new customers came from the assisted method, which is exactly what we are going after. When you look at all the innovation and being the center of small business growth, we now have total charge volume of 65,000,000,000 and our actual online charge volume grew by 30%. The innovation we're doing in payroll, our full service payroll customers doubled in the last year. And by focusing on unlocking smart money decisions, our turbo active users doubled year over year and our registered users went up by 8,000,000 at now 22,000,000. And of course, we take all of this game around the globe.
We're now nearly 30% of our total customers in QuickBooks are international with 52% online revenue growth. Let me end with where I started. Our heartbeats go fast because ultimately it's about powering prosperity around the world. It is really about creating products and services that changes the lives of our customers and makes the communities around us a better place. I can't wait for you to experience the rest of the day and hopefully walk away with the fact that our innovation across the company is accelerating.
So with that, let me turn it back over to Kim. Thank you.
Thanks, Sasan. Okay, we're ready to kick off our platform immersion experience. We'll be taking you through demos of each of our 5 big bets and you'll also have the opportunity to ask questions from the leaders in each area. But first, I need to run through some logistics. If you do not plan to ask a question, you don't need to do anything.
You can stay right here. Note that you must be a registered attendee to ask a question. And so if you plan to do that, please click the breakout button on the agenda below to enter the 1st big bet. Please raise your hand to be added to the queue. And once your name is called, please turn on your video and microphone.
And be sure to state your name and your company name before asking your question. After the platform immersion experience, we'll take a short break. We'll have a countdown timer on the screen to help you manage time so you can be back in your seat before the presentations begin again. You'll need to navigate back to the main player to rejoin the presentations. Now we're ready to start the platform and immersion experience.
I really hope you enjoy it.
Hello, I'm Mariana Tessa, Executive Vice President and Chief Technology Officer at Intuit. Our first big bang is to revolutionize Fitbit benefit for our customers, foundational to all other big bets and our strategy of becoming AI driven expert platform. Our goal is to use data and AI to put more money in our customers' pocket, eliminate friction and deliver confidence at every touchpoint. At Intuit, we define AI as machine learning, knowledge engineering and natural language processing. This year, customers face unprecedented financial challenges as a result of the pandemic.
We leveraged AI to rapidly launch 3 tools for consumers and small businesses on our technology platform. First, our seamless payment registration team helped millions of consumers who aren't typically required to fund tax return, easily register with the IRS and access 1,000,000,000 of dollars of stimulus checks. 2nd, Intuit Aid Assist provides guidance for any small business or self employed person to determine the right to be programmed in their specific circumstances. Circumstances. And lastly, we help QuickBooks customers apply for Patriot Protection Program loans right from QuickBooks.
Now let's have Alex, my colleague, take you through 2 of these in more detail.
Thanks, Mariana. I'm Alex Balaj, Chief Architect and Senior Vice President of Data Engineering at Intuit. The U. S. Government passed the CARES Act to put $2,200,000,000,000 into the pockets of Americans to weather the pandemic.
The Paycheck Protection Program was designed to help struggling small businesses access relief and keep employees on payroll. But the program is new and required substantial documentation to apply, which left many businesses scrambling to access funds. We knew our small business customers couldn't wait for relief and that the data needed to apply was already in our ecosystem either in QuickBooks Payroll or TurboTax. In a matter of days, leveraging the data curation technology acquired with Origami Logic and our QuickBooks Capital capabilities, we launched a fully automated application and approval process that takes only minutes to complete. Let me show you how it works.
When a customer applies for a PPP loan, QuickBooks pulls the relevant data including average payroll expenses. The small business owner confirms data and answers a couple of additional questions about their business type, tax filings, number of employees and legal standing. Once they provided the last bit of info about themselves, they add their bank account information. The small business owner submits their application, QuickBooks registers it with the Small Business Association, and in a matter of minutes, they're approved with funds arriving as early as the same day. Historically, applying for a loan involve wrangling reams of paperwork, multiple trips to the bank and waiting days if not longer to get approved and funded.
With the data from QuickBooks and TurboTax, our customers could apply for a loan in under 10 minutes. And our money movement infrastructure allowed us to fund the loans within 24 hours while staying compliant. The numbers speak for themselves and demonstrate the impact we had on the smallest, most vulnerable businesses. The average loan size for customers funded through QuickBooks is $38,000 compared to the national average of $110,000 To date, we've helped provide access to over $1,200,000,000 for approximately 37,000 small businesses and self employed, money that kept over 220,000 people on payroll. Now we all know that's not where the story ends.
The Cares Act required small businesses to provide detailed records of spending in order to meet strict forgiveness criteria and many had questions about how to use the funds. This is where AI comes in. Intuit Aid Assist transformed the 8 80 pages of the CARES Act into a simple interview style questionnaire. It delivers a personalized experience and an estimate of potential loan forgiveness based on how the small business uses the funds. That's knowledge engineering at work.
Since April 4th, Intuit Aid Assist has helped over 600,000 small businesses and self employed navigate these uncertain times. And thanks to the AI investments we've made and knowledge engineering, Intuit Adasys required 0 engineers, 0 designers and only one tax expert to bring it all to life in a mere 21 days. Back to you, Mariana.
Thank you, Alex. The progress we made in our technology platform in the last year positioned us to help customers during this critical time of need. But that's not all, this year we also increased the number of AI models in Poitrotter offerings by over 50%. Among other things, AI help improve the self-service experience, reduce expert review time, detect errors and tags and increase accuracy of routing calls to agents. We tripled the speed of delivery on our modern development platform and increased mobile application deployments by 60%.
We're launching new products and features in a fraction of time it wants to, delivering benefits and solving our customer problems faster than ever. Thank you.
Good morning, everyone. Welcome. We are now to our live Q and A portion. I'm going to be joined by both Marian or Anna and Alex, you just heard from. I'm just going to give a couple of logistics and then we'll get started.
At the bottom of your Zoom, you have a raise your hand icon. So if you just click on that icon, you will be entered into a queue and we will go ahead and bring you in 1 by 1. Make sure to turn on your camera and audio and you can ask your question live. So with that, we'll go ahead and get started. And the first person we have is Sterling, who's going to be joining us to ask the first question.
Yes, thank you. So with the PPP program, I didn't catch as you went through the presentation. What about the servicing of it? So I think there's some components that small businesses need to comply with going forward. How does the system help with the monitoring and compliance of the loan once issued?
I'll start and Alex you can add. Obviously, we took the description of PPP and we applied it for customers to make sure we basically the customers that are QuickBooks customers, they were able to get loans pretty quickly approved for PPP. We with that, we follow them throughout the loan duration and to make sure we can help them throughout. So they're getting the PPP through us etcetera. So we have applied and we helped them get the loan and then service the loan throughout.
Alex, do you want to add to that?
Yes, sure. Thanks, Mariana. It's a great question, Sterling. One of the big advantages of the investment that we've made in knowledge engineering is that it allows us to encode the knowledge of things like tax law. It's one of the foundations of how we build TurboTax.
And as it relates to PPP, it allowed us to encode the knowledge of what the law states. Not only can we actually get people to apply, we know what it actually takes to stay compliant over the course of time. So we can actually build the service and experiences on top of that knowledge and have it all be knowledge driven to make sure that as this small businesses situation changes, we continue to track what it is that they're doing and we can actually alert them and say, hey, make sure you're doing these kinds of things to stay compliant. So that's one of the really big advantages of the investments that we've made in knowledge engineering.
Great. Thank you.
Thank you, Sterling. All right. Just a reminder, if you'd like to ask a question, you can click on the raise your hand icon at the bottom. It looks like we have a question from Ken Wong. So we will bring Ken in to ask his question.
Hi, thank you for taking my question. You guys became an SBA approved lender for the PPP program. I was just wondering, how does that SBA designation impact your lending business going forward as it relates to small businesses?
This is a great question. And obviously, gives us an opportunity to gain more loans just as we did with PPP with Payroll Protection Honestly, this is a question that are asked of our investor team to understand a little bit more of the status of like long term. Technology wise, as Alex mentioned, the things we invested in the platform are absolutely durable and allow us to also then translate to other loans that we might be providing because what we did is we have a knowledge engine that allow us to take any basically compliance pages and translate them to code and then use it very easily to then apply it to other rules and other loans and other compliance needs. So that is totally durable. And again, the status helps us to get more information of what are we going to do with it.
It's a great question for our Investor Relations team.
Thanks so much, Ken. All right. It doesn't look like we have any other questions. Thank you very much, Mariana and Alex. We will go ahead now and move on to Big Bet 2, where we'll hear from Mark Notioni and Cassie Devine about Connect People to Experts.
Hi, I'm Mark Notreani, Chief Customer Success Officer and Executive Vice President at Intuit. Today, I'm here to talk about our 2nd big bet, connecting people to experts. But let's start with some context. One of the largest problems our customers face is a lack of confidence, a lack of confidence in repairing their taxes at tax time or managing their business. In Big Bet 2, we're actually connecting those customers to a network of experts through our platforms of QuickBooks Live and TurboTax Live.
This allows us to reach more and more customers. It deepens our relationship with our customers and it allows us to grow our ARPC or our average revenue per customer. This opportunity is extremely large as we have a $20,000,000,000 assisted tax prep market that we're going after and a $10,000,000,000 assisted bookkeeping market. We're in our 3rd year of TurboTax Live and we're just getting started. Many of you are familiar with TurboTax Live, but today what we're going to show is some exciting new features and capabilities that we're building for tax year 2020 with TurboTax Live full service.
Carrie, our customer is a little bit nervous about filing her 2020 returns and opts to have an expert file for her and selects TurboTax Live full service. She begins the product by answering some very simple questions, but gets hung up on one about claiming dependence. Thankfully, she sees the TurboTax digital here is that we've helped Carrie and answered her question without actually engaging with an expert that gives her the confidence to continue filing with TurboTax. However, Carrie does have a relatively complex return and after getting stuck once more, she really wants the advice of an expert. She's matched with the right expert for her and easily schedules an appointment.
When it's time for her appointment, our expert Emily calls Carrie through SmartLook, our one way video tool where the expert can't see the customer, but both are able to look at tax documents and discuss them together. Later, Emily requests some missing documents from Cary and a notification is sent to Cary's app. Carrie submits the outstanding documents and Emily completes her tax return and schedules 1 my SmartLook call to review the return with Carrie. Emily walks Carrie through her return and explains what's changed this year and Carrie feels confident she'll get the maximum refund she deserves. So after their call, Carrie pays for TurboTax Live full service and authorizes Emily to file her return, all right from her mobile phone.
Now, I'll hand it over to Cassie, who will give you an inside view of our expert experience through our virtual expert platform.
Thanks, Mark. Hi, I'm Cassie Devine. I'm the Senior Vice President of the QuickBooks Online platform, and I'm thrilled to dive into the expert platform. Using capabilities like knowledge engineering, we're creating augmented intelligence that sits on the shoulders of our experts, helping them more effectively and efficiently solve customer problems. With each interaction, the platform gets smarter, further automating repetitive tasks, increasing accuracy, and allowing experts to focus on providing value to customers to increase their confidence.
Let me show you how we're transforming the experience this year. First up, the Virtual Expert platform will scale client management capabilities through a new engagement list. This rules based engine will automatically prioritize experts QuickBooks and TurboTax Live full service clients based on their needs. Experts will no longer need to sift through multiple client engagements to figure out what actions require immediate attention. This is key to making experts more productive as they serve a variety of customers.
Next, let me show you how our product platforms put our experts at an advantage. TurboTax Online interview mode supercharges the expert in ways only Intuit knows how. For example, soon with Intermodal Tax Online, experts will be able to follow the same interview that millions of our customers use, streamlining data entry rather than filling in tax forms. Now this screen may look basic, but what you don't see are the tens of screens that were skipped before we got here. Using interview mode is quicker for the expert.
Machine learning models skip tax forms that are not relevant to the specific customer and automate error detection. Lastly, we're doubling down on scaling our experts. For example, if a customer asks a question, the system will use real time speech and text analytics to recommend expert responses. And after completing a customer call, a call summary will be automatically generated to send to the customer. These automation features save experts time and enable fast response.
The power of the virtual expert platform enables us to deliver new services from TurboTax Live, QuickBooks Live and in the future Mint Live and each subsequent deployment has been faster than the last. With the power of the Virtual Expert platform and the scale and intelligence of our products, we can elevate experts to advisors and deliver value for customers. That is an AI driven expert platform And we have proof that it enables us to grow efficiently as the number of TurboTax Live customers in season grew nearly 70%, while average handle times declined 15%. Among experts, we also saw higher satisfaction and lower attrition. We are poised for even further growth as we deliver confidence to our customers across the platform.
And like Mark said, we are just getting started. Thank you.
Great. Thank you so much to Cassie and Mark. And they'll be joining me now as well to take any live questions. It looks like we have a question from Brad. So Brad, we will bring you over to ask your question.
Good morning. Brad, you are live. You can go ahead and ask your question.
Good morning. Thank you so much, and thank you to Cassie and Mark. So connecting people to experts is a massive opportunity in helping to drive confidence in making financial decisions. And what you just demonstrated is clearly very compelling. Can you maybe speak from a platform perspective?
Things like SmartLook seem to really enhance the experience. How should we think about that which is common across the live offerings and versus that which is differentiated? And just in terms of futures, I appreciate you're not going to detail a product roadmap for us from here, but you said you're just getting started. Can you maybe speak about the directions perhaps in where we can see you invest and where this can go from here? Thank you.
Yes. Great question, Brad. I'll take a part of that. And Kathy, I'll turn it over to you to expand. But there are many, many components that are actually leveraged across the platform.
There are layers like our operations, how we plan and how we build our capacities and our forecasts, which are kind of at the center of our operations. Those are all extremely common and very much driven by AI actually now. And so that gives us an opportunity to build an operation and scale the business. The second is the experience layer, things like SmartLook, things like our AI and our intelligence that we use in our digital health platform, you saw the digital assistant. Those are all scalable and our models actually learn from the different products.
Where it gets different is in specific workflow. The workflow for bookkeepers might be different than the workflow for preparing taxes or personal finance. However, because we're embedding ourselves right into the core product, right, so we're deeply embedded in TurboTax and in Mint and in QuickBooks. It allows us actually to leverage that workflow that's within those products. So you can see that we are very much leveraged from a platform perspective and it's very, very scalable.
And in fact, the people behind it, our experts, can usually traverse the products pretty easily as well. A CPA can provide personal finance, can do taxes and can be a bookkeeper. And so we also have, scalability there. And then I would say, our area of differentiation is really in the workflow and the specifics around what we want to engage in the service at a QuickBooks Live versus a TurboTax Live. And Cassie can speak to QuickBooks Live in particular where we're really rapidly growing our capabilities there.
Thanks, Mark. I'll add one of the areas we're just getting started is what we bring to bear to solve for these problems that we've been tackling for decades. We've been focused on figuring out how to help experts, whether they're tax preparers or accounting professionals, be more efficient in getting information from their clients. We've also been really focused on the small business problem of thinking about how we make accounting more delightful and make running your business more focused on the things you care about and doing all the accounting automation in the background. And so you could imagine, as we look at helping a bookkeeper get something like access to a bank statement.
But then you think about our platform and the ability to connect bank accounts and get documents automatically and be able to scan them using AI and highlight what might be different from the transaction we see logged in QuickBooks, there's just a huge opportunity. But that document management, for example, is a capability that can also solve customer problems on the TurboTax side. And so the use case might be different, but the platform capability of our bank connectivity with 100 of 1000 of financial institutions and the intelligence we can layer on top of it is really an advantage that we can bring to bear to solve customer problems.
Great. Thank you so much.
Thank you, Brad. Next up, we're going to bring over Alex Zukin to ask his question.
Hey, guys. Thanks for taking my question. I guess, during the pandemic, I'm curious what you've seen in terms of the differentiating the tax rates between both TurboTax Live through a full season during a pandemic as well as Quick Books Live? And is this something if you stack rank the opportunity set from a monetization perspective over time and also talk about just the what percent of the base of customers do you think over time will actually be consistently using the product? Because from given different just given different preferences of engagement.
So maybe just talk through how much of your offerings will ultimately be a good type of functionality and help us just again gauge from a monetization perspective how you're thinking about it longer term?
I think, great question, Alex. We definitely believe that we're we have an advantage post pandemic, right, because we've been on this virtualization journey of work for 3 years prior to this when we first launched TurboTax Live. And we know that it's a really it's a far better experience for customers, right, because you exchange data. It's very, very convenient. Sasan mentioned, right, you've got literally an expert.
And as you saw in our demos, you're going to have an expert actually in the palm of your hand right through the mobile devices where we're really, really expanding. In terms of monetization and those types of things, Alex and Greg will touch on those in their presentations later. But what we're very excited about is being ahead of the curve, using and building a platform that enables these experts and customers to engage and collaborate in a virtual world that we know gets a very high net promoter on both sides. And we believe that the migration and those changes will probably be more permanent than maybe other changes, right, that post pandemic and because we saw it happening before the pandemic hit.
So maybe I'll ask it a different way then. What have been the biggest learnings as you look at the TurboTax or the QuickBooks Live platform? What have been the biggest surprises around the engagement trends you've observed that you think could actually be durable over the course of the next few years?
Yes, I'll take that and then, and Kasci, I'll ask you maybe to jump in. What we see is we don't differentiate between the product usage and the live, right? They're actually it's an AI expert driven platform, so they're actually connected, right? So our usage actually of the core product, if you will, increases with the engagement of the expert because the expert is providing them the guidance that they need to make really great decisions. And that's what we are building for, right?
So we can use the data, the information, the automation takes care of a lot of the work and we're advising customers on how to make great decisions every month based on their financials. And that's been the surprise for us has been the amount of need there and how important it became certainly during the pandemic with PPP, etcetera, there was an increased sense of urgency around compliance and other areas that our experts were actually able to help customers through. And that is enduring over time. Cassie, I don't know if you'd add anything on any other surprises that we've seen in QuickBooks Live?
Well, I'd add for QuickBooks Live, what you see in the feedback from customers is not only was it the boost to help them get confidence to run their business, but it was the boost to help them have confidence to run their business on QuickBooks Online. And as we help them do that, one of the amazing opportunities we have is we now have a deeper relationship with that customer. We understand what they're aiming to do and how their business works better than we did before. And so not only do you see monetization in terms of ARPC growth of that live service, but you see the opportunity for us to help them get their payments set up, to help the right payroll plan get set up, time tracking, the right third party apps. And so once small businesses start getting that expert on demand, you've got somebody in your corner, there are customers who will only want it on demand to get what they need and go.
But what we're finding is a lot of customers really get hooked on that opportunity to have someone help them along the way as they run and grow their business. And I think that is a huge opportunity, not only here in the U. S, but that is a universal problem that small businesses face around the world.
Yes. And if I could, Alex, just close on that. I think that's an incredible point. The power of the platform and exchanging data and information and having that expert literally at your kitchen table besides you making decisions is actually universal across our product sets. And as we think about new services like MintLive, we're extremely excited about unlocking that personal finance potential for our consumers as well.
And so that's really at the core.
Great. And as MintLive, is that like a wealth planner or wealth manager or what exactly what kind of service I think you're talking about coming?
Yes. We're testing different models right now for MintLive and what services to offer within it. But think about budgeting, think about credit management, those types of things.
Great. Thank you so much, Alex. Thank you, Cassie and Mark. We have lots of questions still in this area. We have Q and A coming up a little bit later on.
We're going to need to move to the next section. But if you had a question, there will still be time later in the event. So we're going to go ahead and move on to Big Bet 3, which is unlock smart money decisions with Varun and Ryan.
Hi, I'm Varun Krishna. I'm a Senior Vice President with Intuit's Consumer Group. Our 3rd big bet is about unlocking smart money decisions. Today, more than ever, consumers are struggling to make ends meet. Household debt in the United States has hit an all time high of $14,100,000,000,000 In fact, in 2018 alone, over 23,000,000 consumers had to rely on at least 1 payday loan.
Together with Credit Karma, we will build a consumer finance platform to address this massive unsolved problem. Our platform will put more money in consumers' pockets, enable faster access to their hard earned paychecks, create easier ways to manage and move money, and use AI and automation to simplify tasks and decision making. And last but not least, we will enable consumers to access experts when they need advice. Credit Karma is the perfect partner for us to accelerate our strategy, and we're excited to share more with you after the deal closes. Today, we will focus on the success and learnings that we had with Turbo over this past season.
Over to you, Ryan.
Thanks, Bahram. I'm Ryan Seckler, Vice President of Product Management. 84% of TurboTax customers get a refund after they file. The average refund amount last year was roughly $2,500 which for many people is their largest paycheck of the year. Turbo starts the year round conversation about people's financial health at this critical point.
Understanding consumers' financial goals and how they plan to spend their refund allows Turbo to completely personalize the experience. This year, we saw that 27% of TurboTax customers plan to save part of their refund and 22% plan to use it to pay down debt. Turbo knows people's refund amount is the number they care about most. So when a customer sets their goals, their Turbo refund tracker is always front and center. The refund tracker is a powerful way for us to transition people from thinking about tax prep into thinking about their financial health throughout the year.
After 3 months, those who saw the refund tracker retained nearly 10 points higher. This year, we also continue to experiment on how Turbo can help motivate customers to improve their financial habits. Our customers love the GOLs experience and has quickly become the foundation for other motivational and gamification oriented features. We introduced different types of goals, including reducing debt and increasing savings, but the number one goal our customers choose is to improve their credit score. These motivational features have a positive impact on customers' lives.
Turbo users who set a credit score goal saw more growth in their credit scores than those who didn't. A higher credit score translates into more monthly savings through lower rates on credit cards and personal loans to refinance high cost debt. But what about the harder part, staying on track towards your goals? Our ongoing research into the psychology of finances shows that celebration of behaviors is just as important as recognizing outcomes. Celebrations of continuous improvement are what we call streaks.
For example, Turbo celebrates when a user continuously pays monthly bills on time because ultimately it leads to a better credit score. A user can tangibly see how their behavior impacts their outcomes. Lastly, we created different badges for milestones throughout users' financial journey. Achieving a 700 credit score unlocks the 700 Club badge and creates a moment of celebration to recognize their progress, further increasing engagement. Gamification capabilities such as goals, streaks and badges enable Turbo to leverage more effective notifications that lead toward year long relationships with customers.
Turbo users who set a goal have nearly a 25 point higher retention rate after 3 months than those who don't. Users who log in to Turbo once a month or set a credit score goal saw credit score improvements that were 3 to 5 times higher than users who were less engaged. All of this combined doubled turbo monthly active users last year and increased customer retention rates as registered users grew by 8,000,000 totaling 22,000,000. But at the end of the day, we're most proud of how we improve the financial lives of our customers. Back to you, Varun.
Thanks, Ryan. We are making it possible for consumers to save money with a platform that works like a personalized financial assistant in their pocket. As their standing improves through AI and automation, they'll automatically be matched with financial products that are right for them, creating a flywheel that continuously saves the money. The traction that we've had with Turbo this past year gives us tremendous confidence that we're on the right track, and we're thrilled that Credit Karma will accelerate our strategy. Ultimately, what I'm most excited about is the opportunity to unlock prosperity for millions of customers.
Thank you.
Great. Thank you so much, Varun and Ryan. And same drill as last time, we have them both joining us for open Q and A. We will go ahead and start with Kartik to ask the first question for this section.
There
we go. Good morning.
Good morning. Arun, I'd be interested in how once I understand you can't talk right now much about it, but just in broad pictures, as you have Turbo, which sounds it's that sounds like you've had a lot of success with and now you'll have Credit Karma. How you intend to integrate the 2 and maybe how you'll go to market with them? Will you use a single brand or will you keep both brands out there?
Yes, thank you for the question, Kartik. Obviously, at this point, as the deal hasn't closed, we're kind of operating as separate companies. So we'll share more information about our strategy as we get closer into the future. At this point, our main strategy is to deliver an experience that empowers customers to make smart decisions about their money. And we think that the combination of Credit Karma, Turbo and Mint give us a massive opportunity to have impact on the customer space.
And so we've had with Turbo and Mint almost 47,000,000 registered users and we've learned a tremendous amount about what it takes to really solve meaningful problems. So ultimately, these products are going to be all part of our strategy and we'll share more about our go to market and other integration plans as we get closer to the close date.
Thank you. Thanks.
Great. Thanks so much. Up next, we have Dan with his question.
All right, great. Good morning, everyone. Thanks for taking my question. Dan Juster from Citi. So in Cezanne's comments earlier today, he made some reference to being sort of the hub for consumer finance.
He talked about linkages to banks, linkages to Google Sheets and being really a hub for consumer finance. So if you look at turbo and mid today, how far are you along the journey to actually being able to be that one stop shop for consumers? Maybe just help us think about the journey from that perspective. Thanks.
Yeah, thank you for the question. So I think at the end of the day, this is a major unsolved problem for consumers. And so our strategy is threefold, as Hassan said. 1st, we're going to connect customers to financial products that are right for them. 2nd, we're going to find ways to put more money in their pockets using capabilities like money movement, ability to access your paychecks and better ways to save using high yield.
And then 3rd, we're going to use AI and automation to deliver insights to consumers that provide unbelievable value in helping them improve their financial health. We think that the problem is massively unsolved, but we've seen tremendous success across both Turbo and Mint in terms of helping customers improve their credit score, helping them set goals and delivering insights and automation through the capabilities that we have. So we think that we've made tremendous progress on this journey. Ultimately, we think Credit Karma will be a massive accelerant to help us really deliver more value at massive scale using a lot of the capabilities that Sasan talked about. Let me ask Ryan if there's anything that he would add.
I think the only thing
I would add is just when you take the combination of the user base that we have across Credit Karma, Turbo and Mint, plus everything that we've learned about the psychology of finances and what keeps people motivated to be in control of their finances and improve their own financial health, plus the AI capabilities across both companies. When I think about bringing all of that together and solving the same customer problems that we've been solving separately, but as one company, That's where I really see just kind of this tremendous opportunity in front of us to get after those customer problems in a way we haven't been able to before.
Great. Thanks very much.
Great. Thanks to all of you. That's all the questions that we have for this section. So we'll go ahead and move on to Big Bet 4 with Rania, the Center of Small Business Growth.
I'm Rania Sukkar, Senior Vice President and leader of the QuickBooks Money platform. We all know the statistic that 50% of small businesses fail in their 1st 5 years, most often because of cash flow challenges. This year, the odds are worse. Our 4th big bet is to become the center of small business growth by helping our customers get paid, access capital and pay their employees with confidence. We also see an opportunity to help product based businesses grow and manage their business to deal with an increasingly omni channel world.
This is all part of
the transformation underway to move QuickBooks from being the source of truth for our customers' books to the source of truth for their business. We're going to bring our work on Big Bet 4 to life through QuickBooks Cash and QuickBooks Commerce.
I'm going to walk through a demo
of QuickBooks Cash and Alex is going to talk more about the exciting launch of QuickBooks Commerce later this morning. QuickBooks Cash launched in July as a reimagined small business bank account where we're putting our customers in control of their money. Let me paint a picture. Let's take a small construction company. This is an example of a company that has more work than they can handle, but cash flow challenges still keep them up at night.
It all starts with not getting paid on time. And when a business doesn't get paid on time, they struggle to manage their expenses and to make payroll. And often it means they don't take home any income. They also struggle to understand how much their upcoming tax bills will be and to save enough throughout the year to manage those bills. To make things worse, they manage their business in multiple places, different bank accounts, QuickBooks, payment systems.
All of this makes it extremely difficult to know where they stand financially. Let me show you how QuickBooks Cash brings the power of our ecosystem together to change the game when it comes to money management for small businesses. The construction company opens QuickBooks Cash where they see their balances across all linked bank accounts, including their new QuickBooks Cash account. Many industries like construction have a long lead time to getting paid. But when this small business gets paid through QuickBooks Cash, the deposit arrives instantly into their FDIC insured QuickBooks Cash bank account and is immediately available to spend or pay others.
They have $40,000 across all their linked accounts, but tomorrow they need $21,000 of it to make a payday for their crew. What we see many businesses doing today is setting up multiple bank accounts to be able to set aside funds for different needs like payroll. With QuickBooks Cash, they use envelopes to plan for payroll, a feature that allows you to set aside cash for specific uses like payroll or new equipment. They see they're currently $9,000 short in their payroll envelope and instantly transfer the remaining funds from their QuickBooks Cash account. Using the QuickBooks payroll app, they pull funds straight from QuickBooks Cash.
With same day payroll, their team gets paid that day, skipping the 3 to 6 days it usually takes to process payroll. Because all their money is in one location, it's available for whatever they need, whenever they need it. When it's time to stock up on supplies, they use their QuickBooks debit card at the hardware store and the transaction is automatically tracked and reconciled in book books, saving them hours of manual bookkeeping. Last year, we introduced the cash flow planner, which enabled small businesses to get visibility into their predicted daily cash flow 90 days into the future. This year, we've integrated the planner into QuickBooks Cash to help inform goals for envelopes and to inform overall cash flow health, like predicting when an invoice will be paid.
Knowing that a customer is likely to pay late enables a small business to delay the payment of a bill or to send a reminder on an outstanding invoice. And all of that enables a small business to avoid a common cash flow pitfall. No fee instant deposit envelopes, a high yielding interest rate and the deep integration into the QuickBooks ecosystem are the reasons for small businesses to choose QuickBooks Cash. And the best part, all of this is available on the web and all features except Instant Deposit are available on iOS and Android and Instant Deposit will be coming to mobile soon. Intuit is uniquely able to bring this offering to our customers.
We have one of the most robust money ecosystems in the industry across our payroll, payments and capital offerings, and our AI driven expert platform enables us to build an incredibly powerful cash flow prediction engine. We're excited to roll out more features across QuickBooks Cash throughout the year and to truly change the game for small businesses. And stay tuned, in Alex's presentation later today, he'll be unveiling the new QuickBooks Commerce, which will enable us to help product based customers grow and manage their businesses. Thank you.
Great. Thank you so much, Rania. And Rania will join me in the Zoom room to answer any questions. Up first, we have Brent to ask his question. Brent put his hand down.
Let's see who we have up next. We have Michael who is up next to ask his question.
Hey there. There we go. Hi, can you hear me okay?
Good morning, we can.
Thanks. It's Michael Turner with Wells Fargo. You've talked about the long term aspiration to improve the SMB success rate overall. COVID was obviously an interesting test case. You were able to set a number of product initiatives into motion to help customers during that period.
Are there any lessons learned more recently that you can share? And does that alter that goal around success rate at all or maybe help reinforce confidence there? Thank you.
It's a great question. As I talked about at the beginning of the demo, one of the biggest contributors to the success of small businesses is cash flow health. 82% of small businesses who go out of business have some form of cash flow problem. And so that's why bringing an offering like QuickBooks Cash to Market really enables us to make a massive difference towards that. And we're seeing significant uptake in this offering, especially in the context of COVID, where small businesses don't want to go into a bank account anymore to manage their finances.
They want it all digitally available. We're seeing a big uptake in things like electronic bill pay with the new bill pay integration in QuickBooks. Small businesses no longer want to cut a check or deal with manual processes. We're seeing significant uptakes in electronic invoices. So small businesses, because of things like COVID, are increasingly looking to do things digitally and they're turning to solutions in QuickBooks to do that.
But the most important thing in all of that is cash flow matters more than ever. It mattered before COVID. It matters even more in COVID as small businesses are getting paid less and not getting paid as frequently. And so the promise of what QuickBooks Cash can do in this context is critically important. I'll give you some examples.
In the past, we've seen small businesses run to a customer, they'll drive hours to get a check and then they'll go to the bank and cut cashier's checks because they need to run payroll that day. They can now use QuickBooks cash and we're seeing this happen to get paid the very same day they're paying their employees. So it saves them significant time and in a time like this it matters quite a bit. They're very worried about balancing checks because of tight cash flow, because when they bounce checks they face fees and sometimes higher premiums on things like insurance. And so they're using things like our cash flow forecaster to predict when a credit card bill is due the specific day, the amount it's going to be, when an invoice is likely to get paid to avoid things like that.
So success rate for small business is critically linked to cash flow and we're seeing significant engagement in this offering as a result of that.
Thank you for your question, Michael. Up next, we have Keith Weiss. Keith will join us to ask his question.
Excellent. Thank you for the presentation. I was wondering if you could give us a little bit of visibility into what these customers actually look like, both in terms of when a small business is using something like QuickBook Cash, is it generally they're using a fuller suite of the services? Is it like customers are either kind of all on board with the platform, they tend to use a lot of the different services and Cash is one of them? So like does it tend to become a bundled suite, number 1?
And number 2, how often do they come to the well, if you will? How often do they utilize that service is something that takes place all the time that they do it on a monthly basis or this is only in case of emergency and they'll come in and dip once and then not really utilize
the service for extended period of time?
Great question, Keith. The whole promise of QuickBooks Cash, the reason we're so excited about it is because it will be a catalyst to driving the transformation underway to move QuickBooks to becoming the source of truth for your business. As you're alluding to, we have an unbelievable set of services in QuickBooks from helping small businesses get paid through our payments offering to capital to managing and paying employees and now to omni channel commerce. And today our small businesses are using those services and we'd love to move to a position where we're seeing most of our small businesses using multiple services to your point, so deeper engagement in the service offering. QuickBooks cash will become that glue.
And I'll give you examples of that and then I'll tell you how people are using it today. But QuickBooks, we're integrating it into every aspect of QuickBooks. It's becoming so central to what QuickBooks is used. So today, when you sign up for a payments account, the default for small businesses is the funds from payments are getting deposited into the cash account. And then when they get their money in the cash account, they're then having the opportunity to discover what they can do with those funds.
So they see they have the opportunity to go pay bills through our new integrated bill pay service. And that is delighting our small businesses. They're seeing the opportunity that they can now pay contractors or use our full payroll offering. Or they can use the integrated debit card. So the idea and the promise and then the more they get delighted by this, the more of their payments accounts and processing they'll bring to QuickBooks.
If they were doing part of it through QuickBooks before, they'll be incentivized to bring more of it over. And so that's the promise of QuickBook Cash is that it's going to deepen engagement across the ecosystem. The amazing thing that we're seeing, you heard me describe that we've built this on mobile entirely, built it mobile first and on web. But the amazing thing that we're seeing is mobile adoption is where we're seeing incredible strength, which is exactly what we were hoping for as we try to transition QuickBooks becoming a daily use offering and at the center of small business success. And so now in mobile, we're seeing the highest active engagement rate and increasingly small businesses come in.
They try QuickBooks, it's one QuickBooks Cash, it's one source where they keep their funds. But these early businesses are increasingly saying, I'm not we've heard stories where they're closing their existing bank account and they're using this as their primary bank account because they're saving fees and getting all these benefits. So that explains the promise and also what we're seeing early in the tenure of this offering.
Excellent. That's very helpful. Thank you.
Thank you for the question.
Great. Thank you, Rania and Keith. We're going to go ahead and move on. Again, I know we had a couple of questions left, but we do have Q and A time later. So hold your questions and you can ask them a little bit later on today.
We're going to go ahead and move on to Big Bet 5, which is disrupting the small business mid market with Kelly Vincent and Sheldon Cummings.
Hi, Sheldon Cummings, Vice President of Sales at Intuit. Our 5th big bet is to disrupt the small business mid market with QuickBooks Online Advanced. As QuickBooks customers grow and become more complex, their needs change and their satisfaction with QuickBooks actually declines. In fact, 10% to 12% of QuickBooks customers are outgrowing the offer. These mid market businesses are our most valuable and they do not want to spend $10,000 to $25,000 on an enterprise glass solution that's far more than they need.
QuickList Online Advanced scales to the needs of these mid market customers at a disruptive price of $2,000 per year and we know now more than ever a cloud based solution is both necessary as well as a fantastic growth opportunity. And over the last year, we doubled down on the needs of these in the market customers, which is truly deep customization. I'm going to pass it to Kelly and she's going to take us through the evolution of features that we shared with you last year.
Thank you, Sheldon. Happy to dive into the product. I'm Kelly Vincent, Vice President and Mid Market Segment Leader. First up, let's talk about connecting the ecosystem. In the past year, we've laid the groundwork for extensible integrations and are really excited to announce our integration with Salesforce, which is our first deeply connected ecosystem partner.
This integration allows customers to personalize their work flows, saving them time and reducing errors. For example, when a deal is closed in Salesforce, the integration automatically creates an invoice for the integration automatically creates an invoice for the customer in QuickBooks Online Advanced and then triggers an approval workflow for the bookkeeper or accountant. As part of enabling a customized ecosystem, we're expanding custom fields. We support as many as 48 custom fields and will soon have advanced custom data mapping capabilities, again showing why QuickBooks is the source of truth for their unique business. A connected ecosystem means that more people across the company will need access.
Mid market companies have larger workforces with a variety of functional roles, and they need to be able to set up different levels of delegation to ensure that people get their work done, but while also keeping their books secure. Last year, we showed you how a payroll admin should only see payroll data. This year, businesses can be even more specific. So a payroll admin can only see payroll data for, say, Ohio. Additionally, customers can now manage permissions across their entire ecosystem, leveraging the deep integration capabilities between Advanced and their premium applications.
Going deeper than just providing access to people to get their work done, we know efficiency and coordination of work is critical for mid market companies. Automation reduces operational delays and the chances for errors. That's why we've delivered workflow automation templates, and we will soon have even more coordination across premium apps. Soon, customers will be able to build their own custom workflows. We are also testing industry specific workflows and AI driven suggestions, powered by the data in our QuickBooks ecosystem.
And here's the all new task manager, the place where people can find out what they need to do next to keep their business moving along. As teams are more distributed, we must empower them to collaborate seamlessly across platforms. Task Manager allows managers to assign tasks to their teams like invoice approvals through the Salesforce integration. In the future, we will expand this capability to deliver workflow update notifications and the ability to include attachments to tasks. While all of these innovations are game changing for mid markets, it all comes together in our updated performance center.
Customers see a snapshot of how their business is performing, and soon they'll be able to build custom dashboard widgets to view critical KPIs and import budgets and forecasts to see their business performance versus their plan. Performance Center will also leverage AI driven machine learning models to proactively detect trends and anomalies in 3 critical KPIs mid markets care about: revenue, expenses and profit. Through the power of technology, we are helping businesses automatically monitor their performance. Reporting and insights are critical to mid market customers. Each business is unique and needs to slice and dice their data differently to get to their specific key insights.
QuickBooks Online Advanced delivers powerful customer reporting capabilities, so businesses can understand revenue specifics like filter by or group by, advanced sorting and column rearranging. All of these innovations have helped us continue to scale QuickBooks to the complex needs of our mid market small businesses. Back to you, Sheldon.
Thanks, Kelly. We've laid the foundation for critical capabilities that these mid market customers need. And through the customers, we have learned deeper about their needs both on how they can grow their business as well as become more efficient operationally. QuickBooks Online Advanced is available to these mid market customers at a disruptive price of $2,000 a year And today, we have roughly 75,000 customers on QuickBooks Online Advanced, double from what it was just a year ago. Thank you.
Great. Thanks so much to Sheldon and Kelly. They will both join me now and answer any questions that you have. Up first, we have Brent with his question.
Great, thanks. And the 75,000 customers you have, is there kind of an average customer number that you're seeing any metrics to give out in terms of just trying to gauge the size of those customers? And then my second follow-up is just $2,000 pricing versus the peers at $10,000 to $25,000 seems like you're leaving a lot of economics on the table. Why that price point so far underneath where the peer group is? Thanks for the time.
Great. Thank you for the question, Brent. Let me tackle the first question first, which is on the size of the customer. So the way that we have looked at the market in terms of segmentation is we were seeing people outgrow QuickBooks, as Sheldon mentioned, at a clip of about 10% to 12%. And then in addition, we also saw, though, the dissatisfaction with needing to pay a high price point and potentially being over served with an overcomplicated product.
So we are really targeting companies with about 10 to 100 employees as the sweet spot because we really uncovered that they were being underserved. And so what we're seeing right now with Advance is we're definitely seeing people grow into Advance as their businesses grow. And the average employee size for the customer today is around 25 employees. However, we're also seeing a lot of interest even in terms of new customers to the franchise coming in around 30% of our mix is those new customers and we are seeing them coming in with a higher employee count. So we're thrilled to be able to serve this customer base in the right way, the way that they need it at the price point they need.
And before I jump to the price question that you had, I'd love to ask Sheldon if there was anything he had to add to your first question.
No, I think that you answered that very well. I do want to sort of step into the to build on the second question and then pass back. I think that from a value perspective, we're offering an amazing value of the 2,000 as well as the ecosystem that we can unlock to add incremental opportunity and revenue opportunity. So it's an initial place and then we're building from there. So think about it from an ecosystem lens and not only from the fantastic accounting solution.
The value piece is super critical for these customers and it's think of it as sort of that right price for the value as well as what we're unlocking. Back to you, Kao.
Yes. Thanks, Sheldon. Great point. In fact, sometimes I think we have a mind meld going on because that was exactly the point that I was going to make. If you think about it, Brent, we're charging that price point for the core offering.
But remember, we're offering a lot of flexibility with these deep integrations of what people can connect. And that is a huge, to Sheldon's point, revenue opportunity for both us as well as our partners.
Thank you.
Thank you.
Thanks so much, Brent. Up next, we have Raimo with the next question.
On that note, could you talk a little bit about where are these customers coming from? You said you doubled the you doubled the size over the last year. Is that kind of guys moving out of your system or coming from like old solutions like a MAS 90 or a MAS 200? And what tools are you offering if you're going from like a like coming out of the normal QuickBooks, how difficult is it to move up? What extra help are you giving people to do that?
And similarly, if they come from other solutions, like what can you do to help them to move quicker?
Great questions, Raimo. So we're seeing we're actually seeing customers in our ecosystem that are growing. And we're seeing about 70% of the mix of our customers needing the higher end solutions, the more scalable solutions. And so that's about 70%. About 30% of our customers are new to QuickBooks overall.
And we are seeing a mix of people competitively switching. But actually, there's a lot of customers in that space that are not consuming a core accounting product at this point. And so they're seeing the value, particularly now, as companies grow and they need an online solution to coordinate work, they're seeing the value and actually investing and coming into the QuickBooks franchise, and we're thrilled to welcome them and to help them sustain and grow their business. So that's to your first question. To your second question with regards to migration, we do offer migration tools for customers that are potentially on a desktop solution that feel like they want to move online, we're happy to help them do that if they choose.
And we actually have a tool that we've been investing in to make life a lot easier, making it more one click, and we'll walk you through it and we'll ensure data integrity. It also offers the opportunity for, as you heard Cassie and Mark talk about our big bet with regards to offering expert help in that migration. And so we're helping customers migrate. We're also investing in competitive migration tools as we move forward because of the fact that we have seen interest from customers to seamlessly move from a competitive system or even non consumption into QuickBooks. And we want to make their lives very easy because we know that, that can be a painful transition, And we're here to help them.
Sheldon, do you have anything to add to either of those questions?
I think that the one point I wanted to double down on is I think that the migration tools that we have are continuing to evolve and get better, as well as the circle of experts that Kelly mentioned that when that extra help is needed, we have the help available. And so, there is both the fantastic technology components as well as the human elements that help migrate our customers.
Okay, perfect. Thank you.
Great. Well, thank you to everyone. This concludes the platform Immersion Experience section. I know there were questions that we didn't get to, but please save them. We will have a lot more time for Q and A at the end.
You guys get a quick 10 minute break. So take the break and then please join us again back on the main Investor Day site. We'll see you then.
Hi, everyone. Welcome back. I hope you enjoyed the platform immersion experience. I have one quick housekeeping item before we get started again, which is at the end of today, we will send you a survey. We would love to get your feedback so we can really understand how we can make this day more valuable for you.
And as a parting gift, once we receive your survey, we will send you a code for a free version of TurboTax and I know you won't want to miss that. Okay, I think we're ready to get started again. Next up, Alex Chris is going to talk about our strategy for the small business and self employed group. Alex?
Thank you, Kim. Good morning.
As I walk through
the small business and self employed group story, we're going to start as we always do, grounding ourselves and our customers' needs and how we are tackling them with our durable 3 pillared strategy. We will then look back at FY 2020 results and the changes we've made as we execute on our strategy. And finally, I'll showcase some of the exciting innovations that are driving our long term growth. To begin, we'll start with what's most important to our customers. Small businesses always need to get customers, get paid, pay their employees and access capital when they need it the most.
And solving these customer problems inspire our purpose. The reality is the odds are stacked against small small businesses with 50% going out of business within 5 years and that's in a stable economy. COVID-nineteen has created a black swan event for many small businesses. But small businesses are scrappy. They will fight, they will pivot and they will persevere.
I'm reminded of a recent conversation with Freddie, the owner of Stag Coffee in London, who pivoted on a dime when shelter in place hit. With 0 foot traffic, he leveraged his social network and instantly set up an e commerce storefront to continue to serve his customers. Freddie will continue to persevere and we will continue to innovate on his behalf. Our mission to power prosperity has never been more critical than in the past 6 months. Our platform is well positioned in these turbulent times with customers leveraging features such as cash flow forecasting at record numbers.
QuickBooks and our entire platform is critical for the success and survival of small businesses and we take this responsibility very seriously. So how will we continue to help customers thrive? Let me turn to our durable 3 pillared strategy to become the source of truth for your business. That one integrated platform to address customers' needs. We will grow the core, transforming the financial management software category and meeting customers where they are.
We will connect the ecosystem, meeting a wide range of customer needs in a single integrated platform. And we will continue to expand our geographic footprint, serving small businesses around the world. What this looks like in action is a robust ecosystem, personalized with AI to deliver a suite of right for me solutions to a wide range of customers globally. We are opening up our TAM and creating multiple growth vectors as we serve a broader variety of customers and meet more of their needs. As a reminder, we started out as a DIY small business accounting software company.
Over time, we've continued to build out a dynamic online platform that can serve more customers and meet more of their needs, fueling exciting long term growth for our franchise. These are substantial businesses. Our payments business processed $65,000,000,000 in payments volume in FY 2020, putting Intuit among the top merchant processors in the U. S. Our payroll and time tracking together form a best in class worker management solution with 1,400,000 businesses using Intuit payroll.
In addition to meeting more customer needs through payments, payroll, time tracking and capital, we are opening up new ways to penetrate the large small business TAM. Let me share some examples. With the rise of digital banking accelerated by COVID, there's even more opportunity down market, serving customers early in their lifecycle. We will continue to lean into building solutions for customers even earlier in their journey at a time when access to money, tools to get paid easily and cash flow management are at their top priorities. Our QB Cash and QB Self Employed offerings meet these needs.
We are also expanding who we serve through the launch of QuickBooks Commerce. For many years, QuickBooks was built with a focus on service based businesses, but now we have over 1,000,000 product businesses in the franchise and we have the opportunity to serve many more. With our years of experience building a source of truth for your books, where all data leads to 1 central hub, we are creating an open platform commerce solution to help small businesses move to e commerce or manage their existing omni channel strategies. With Kube Commerce, small businesses will be able to connect key tools and services and see a holistic view of their business, making it easy to see which channels are most profitable. The recent acquisition of TradeGecko is just one piece of our commerce solution with its critical inventory and order management capabilities.
As the acceleration to e commerce and omni channel continues, this solution will only become more critical. Next, we are expanding our penetration into the mid market. QBO Advanced is still a new product only in its 2nd year, but is experiencing significant traction with upgraders and new to the franchise customers. We've evolved our sales motions to acquire these customers as we scale. And with our open ecosystem strategy and connections to the most critical third party apps, mid market customers are able to personalize and customize their solution to meet their specific needs, ensuring they pay only for what they need.
And lastly, this past year, we broke open the assisted category with QB Live and full service payroll, unlocking non consumption and bringing these customers into our robust ecosystem. SMB customer behaviors are not all that different from consumers. They both struggle with confidence when it comes to things like taxes and accounting. With QB Live, virtual expert bookkeepers are there to walk small businesses through these crisis of confidence moments and save small businesses time by taking over some of the required, but often undesired tasks. This latter point comes into play in full service payroll where the time spent on manual tasks per pay period was reduced from 4.5 hours to mere minutes.
This is a massive opportunity for our business as we serve customers who want the confidence to do it with me or do it for me experience and were previously unaddressable for us in our traditional DIY offerings. Further, our bet on virtual expert platforms could not have come at a better time. We spent the year scaling our solution accelerated by leveraging some virtual expert platform, the same virtual expert platform as TurboTax Live and we're just scratching the surface of what's possible here. So to bring it all together, we've been opening up new opportunities for growth and revenue by broadening who we serve, how we serve them and what we serve them with. And the best we've been making in virtual expertise, mid market and omni channel are key innovations that are helping us accelerate during this period.
We also made some significant changes in FY20 as we increased our focus on higher value offerings and improved platform monetization. These were very deliberate go to market and operational adjustments to drive our next chapter of growth. 1st, we changed our go to market and sales motions, targeting acquisitions and high value offerings like QB Live and QB Advanced. We achieved 36% growth in new subscribers with an ARPC greater than $1,000 which shows up with our QBO Advanced space doubling in FY20. We also focused heavily on the quality of the core product With word-of-mouth among small businesses and accountants as the most powerful driver of adoption, our focus on customer benefits drove our QBO product recommendation score up by 14 points worldwide, supporting our strategy to lean less on discounting to attract new small business customers.
And finally, as we delivered more value across our products, we improved mix driven ARPC and monetization. We continue to accelerate our pace of innovation, releasing new features and products that fully leverage our rich data, delivering a customer benefit at a time when they need us the most. You see the impact of this on the shape of our customer base. We grew the top ARPC customer bucket by 56%, while keeping the lower ARPC bucket flat. To be clear, we are still very focused on small businesses with simpler needs and the self employed.
This is a large and exciting opportunity and you'll see breakthrough innovation on this front with offerings such as QB Cash and QB Self Employed. These changes help deliver a milestone year. We grew our base to 5,100,000 QBO customers, which is up 12% from last year. This reflects the go to market changes I just highlighted as well as the macro tailwinds from small businesses adopting FMS as one of their top investment priorities. This was offset of course by many small businesses adversely impacted by this environment, which drove our retention rate down by 2 points to 77%.
We're very proud of how we delighted customers as evidenced by PRS improvements across the board and how we monetize them further as a result. This combination of continued customer growth, delight and monetization is our formula for driving long term revenue growth. That formula with 12% customer growth and 15% ARPC growth helped us achieve our 30% online revenue growth goal. We generated $2,200,000,000 in online revenue in FY20 growing 31%. In the core, we added 38 percent online accounting revenue growth worldwide and 11% customer growth in the U.
S. Amidst the challenging macro environment for small businesses. Higher effective prices and overall mix shift to higher ARPC SKUs drove much of that goodness. In the ecosystem, we saw 21% online ecosystem revenue growth. We are seeing a shift towards full service payroll, a recovery in payments with invoices paid on Intuit rails up 20% in July year over year and expect a growing need for capital, which we are advantaged in serving due to our platform data.
Again, we're just scratching the surface and new products like QB Live, QB Advanced, QB Cash and QB Commerce will significantly ramp up our opportunity. Globally, we are still in the early days penetrating this large opportunity as we see 100 of millions of small businesses and self employed around the world with similar needs. We are laser focused on ensuring local product market fit in emerging markets and a clear path to scale profitably where we're more established. We grew online revenue outside the U. S.
By 52% by growing our customer base 14% to 1,500,000 and simultaneously growing international ARPC by 24% as we significantly improved monetization. Now that we have gone over FY 2020 high level results, let's shift focus to innovations that supported that growth and more importantly are setting the stage for a strong FY 'twenty one and beyond. When we launched QBO Advanced 2 years ago, our mission was disrupt the small business mid market. We knew there were customers who had grown up using our solution, but were outgrowing our product. We are now changing this trend.
These customers already know the user experience of QuickBooks. Their data is in one place and they have already invested significant time training on the product. With QBO Advanced, we gave these QBO customers an opportunity to grow with us and our connected ecosystem. And for new mid market customers, we gave them a product that meets their needs as evidenced by 14% PRS improvement resulting in 39 PRS, while costing significantly less than most mid market alternatives. This past year, we've seen traction in both populations, upgraders and new to the franchise.
We've grown our QBO Advanced customer base over 100% to 75,000 customers. Looking forward, we will continue to build out the feature set, making sure we have all the tools available in the ecosystem to support mid market businesses from advanced reporting, full service payroll, capital, time tracking and fleet management, bank accounts and commerce. And we will leverage this data we already have to provide a personalized end to end experience for each customer. The next innovation I'd like to highlight in the core is QuickBooks Live. Before the pandemic forced us to communicate through digital video platforms rather than face to face, we were already betting on a digital virtual expert future.
COVID-nineteen only accelerated this transition and we are well prepared. Our QuickBooks Live customers are getting expert help they need when they need it in the comfort of their homes. We have over 600 experts that are not only supporting continuous bookkeeping services, but are helping customers get their books set up for the first time. This also serves as a personal tour of the offering and we have seen 10% of the customers who complete QB Live setup upgrade to full QB Live bookkeeping, a conversion rate that is above our expectations. We are still in the early days of QB Live and QB Advanced, but believe they are positioned to become significant drivers of our revenue growth for years to come.
Our payments, capital, payroll and time tracking offerings are key components of our connected ecosystem. Each offering is an additional growth opportunity to deliver greater value to customers and generate higher ARPC. In alignment with our aim to deliver our customers more money, no work and complete confidence, we are in the midst of bringing to market a full service payroll offering to all of our payroll SKUs, unlocking DIY non consumption and delivering a solution that saves small businesses significant time and provides peace of mind. In FY20, we more than doubled the number HR and health benefits, we provide tax penalty HR and health benefits, we provide tax penalty protection where we cover the payroll tax penalty if there is an error, of which 44% of customers had gone through the requisite expert payroll setup review to activate this protection. As we build out and attract customers to these higher SKUs, we are also expanding into higher ARPCs.
Next, I'd like to focus on our new innovations. You got an introduction to QVCash during the platform immersion experience. This free small business bank account provides full visibility into a small businesses current and future financial picture with the ability to move money instantly and to ensure their money is working for them while leveraging the built in accounting of QuickBooks. The cash account earns an attractive interest rate, enables small businesses to set aside funds for upcoming expenses in envelopes and comes with a debit card. It is fully integrated with QuickBooks payments and payroll, enabling a small business to pay workers or vendors the same day they receive funds from a customer.
It also includes an integrated cash flow planner to predict future cash needs. With over $2,000,000,000,000 of transactions recorded in and out of QuickBooks each year, we're excited to get this offering into our customers' hands and remove friction on how they manage their business. And now I'd like to formally introduce QuickBooks Commerce. Let me set up the customer problem. With e commerce on a tear expected to grow 85% by 2023 and with many product based small businesses suddenly hit with decreased in person traffic due to shelter in place orders, millions of small businesses are racing to establish or grow multi channel presences.
But this is easier said than done. With 84% of small businesses using pen and paper to manage their orders and reconcile their inventory, adding a second online channel or selling online in the first place can quickly become a nightmare. 50% are afraid to add another channel because of the operational complexity, but we thrive in complexity and are best positioned to be their solution. Small businesses need a single source of truth for their commerce management. This is the vision for Qubecommerce.
Qubecommerce is an open platform commerce solution that connects to key small business tools and services through one centralized hub, allowing for end to end management of an omni channel strategy. We are taking care of managing the complexity across channels of order and inventory management right inside of QuickBooks. Our open platform allows small businesses to connect their existing solutions where they sell today, whether it be a retail point of sale solution, an e commerce storefront or a marketplace and with one click expand their channels. They can mix and match where and how they want to reach their customers, while QuickBooks does the heavy lifting of order and inventory management as well as connecting to the most popular customer acquisition channels and fulfillment services. We will build this as an open global ecosystem, but are excited to announce today our solution already connected to over 50 of the top channels for our small businesses to take advantage of.
With over 1,000,000 product based businesses in our QuickBooks space today, we'll get started instantly, helping customers expand their channels, grow their customers and manage the complexity of omni channel commerce as the source of truth for their business. Moving to our international business, we have a well defined global playbook for how we expand to new markets, how we operate and if and when we need to exit, how we will exit. The starting point is always product market fit. And once we nail that, we scale rapidly and profitably. Of the 1,500,000 Qubio customers we have internationally, 1,200,000 of them are in our established international markets, the UK, Canada and Australia.
We continue to build on the existing product market fit by improving first use, building our account and influencer network and scaling up the connected ecosystem. This focus on innovation drove PRS increases of at least 10 points in each market, which helped us improve monetization and drop 55% revenue growth. Our focus in emerging markets is ensuring product market fit, giving us a right to win. We're seeing tremendous progress in France and Brazil as we address heavy compliance needs. In France, we're using breakthrough artificial intelligence technology to solve complex first use hurdles, while building critical mass with accountant influencer networks in targeted regions.
In Brazil, we've scaled up QBO as our priority offering in the market and started building out our account network. Adhering to our playbook, we decided to move India into the rest of world portfolio this year. We will continue to serve India with our locally compliant offering, but we also are being intentional to focus our resources and energy in the markets with the highest growth potential across both customers and revenue. To recap, we're coming off a milestone year. We are incredibly excited about the new ways we are shaping our business and the runway ahead.
We stayed true to our strategy and the needs of our customers, providing them with business critical solutions that allow them to not only survive, but thrive during this time. We are disrupting up and down market with QBO Advanced and QVCash. We are unlocking portions of our TAM that previously we couldn't serve or didn't serve well with offerings like QB Live and QB Commerce. And finally, as we grow our customer base, we are also increasing ARPC with a multitude of levers to drive both of these outcomes in parallel. Looking to the long term, we expect to grow customers 10% to 20% and ARPC 10% to 20% as our formula to drive 30% plus online revenue growth over the long term.
All of which leads us to long term total SBSEG revenue growth of 10% to 15%. So next up, I'd like to bring on Greg Johnson to speak to our consumer group strategy. Greg?
Thanks, Alex. Hello, I'm Greg Johnson, the General Manager of our consumer group. I've been with Intuit the last 8 years, all of which I've spent in the consumer group on businesses like TurboTax, TurboTax Live, Turbo and Mint. Let me start by talking about our customer growth. Our customer growth this past year grew at 11%.
That's the fastest growth rate we've seen in over 4 years. We now have over 43,000,000 customers on our platform. Now when it comes to customer growth, there are 5 strategically important segments to us. Number 1, our ability to grow the total number of, we call them pay nothing filers on our platform. We are able to grow our pay nothing filers by over 20% this past year.
The other 4 segments are fast yet undergoing penetrated segments of Latinx, Self Employed and Investors. Those segments were underpenetrated in DIY, but our growth rates this past year were over an average of over 13%. And finally, when it comes to TurboTax Live, TurboTax Live, we had experienced approximately 70% growth on that platform. And as you know, growth leads to revenue. Our revenue performance this past year was 13%, our 3rd year in a row of double digit growth.
As a matter of fact, we've now eclipsed the $3,000,000,000 mark in our consumer group of businesses. Now the drivers of that revenue growth are the customers. If you look at our fast growing yet underpenetrated segments, we grew the average revenue for those segments by over 20%. And fundamentally, when you look at the number of customers that pay us nothing and the pride we take in growing that segment, we also concurrently simultaneously grew our average revenue per paying customer by 8%. Now into it we are fond of saying and we are known to say that winners keep score.
And if you look at our scoreboard, the big headline is that we were successful in executing and really delivering on our strategy, but we do see plenty of opportunities. But let's talk about our scoreboard and the core tax business. Our scoreboard in Vertex is really strong. Not only we're able to grow the category, we're also able to just grow our share of total IRS returns. We're able to grow our retention.
And fundamentally we continue to grow the number of free followers on our platform because it's so strategically important to our future. The second thing I would like to share with you is TurboTax Live. Our ambition of transforming the assisted category through TurboTax Live is scaling well. We continue to scale the platform. We continue to add more experts on our platform as well.
And fundamentally, we are delivering better experiences for both customers and pros and ultimately driving more new followers onto that platform. The third area is with Turbo and Mint, where we aim to disrupt consumer finance. We drove significantly more engagement in registered users with 6,000,000 monthly active users and 47,000,000 registered users. And beyond that, not only do we have more offers on the platform, but we are generating revenue, an average of $44 revenue per conversion on our platform. The ultimate score is revenue up 13%, customers up 11%, and we're happy about our performance.
Customers in focusing on our customers, not only does it explain our past success, our current success, but it will explain our future success. We need to focus on our customers because that's what drives the growth of our business. Now we're motivated to understand our customers and what they're going through in this tough time. The number one need they have is helping making ends meet and with record unemployment levers, it's never been more important. Maximizing a refund this is oftentimes the biggest paycheck of the year.
Our ability to get more money in their pockets is critical, so is helping them save more money, paying down debt, understand where they are financially, all those needs are more critical now than ever before and that's why they shine a light on our future. And quite honestly, it's why our mission is so inspiring to each of our 10,000 employees. Powering prosperity around the world is a galvanizing mission for our company. And the way that we go about doing that is become an AI driven expert platform, a platform that really delivers 3 massive benefits: We put more money in the pockets of our customers We remove the work, the friction, the effort associated with the applications on our platform, in the jobs they hire us to do, and fundamentally deliver complete confidence. That mission as well as that AI driven expert platform enables us and the consumer group to pursue a vision of fighting for financial freedom for all consumers in tax and beyond.
Now we are able to fight for financial freedom and deliver that because of an amazing ecosystem that we have, an ecosystem defined by the number of relationships we have, the trust we have with those customers, the data they entrust to us and our ability to be very careful stewards of their data. I want to expose the ecosystem a little bit more. Number 1, it starts with TurboTax. We have greater than 55,000,000 unique filers on our platform that generate significant revenue dollars, dollars 88,000,000,000 of revenue flows into our ecosystem. We have 55,000,000 W-2s that get ingested into our platform.
The relationships we have and the data they use to enable them to do their taxes, we're able to put to use on their behalf in personalized experiences and actually remove friction and ultimately deliver the benefits they seek. Beyond TurboTax, we have QuickBooks, where we have 15,000,000 workers that get paid on our platform. That's 1 in every 5 small business using our QB payroll. That also translates to $208,000,000,000 of revenue that flows through our ecosystem. On our ecosystem, we enjoy the relationships associated with tax pros and advisors where we have over 600,000 of those.
We also have over 20,000 financial institutions and ultimately we now have good 47,000,000 registered users, 6,000,000 monthly active that come to us not for tax but for consumer finance help and assistance. So that ecosystem coupled with our mission and our capabilities defines our roadmap. The first ambition we have is to extend our lead in DIY and we're going to do that by revolutionizing the speed to benefit. Our ability to deliver experiences that are data- AI driven that fundamentally revolutionize the way the taxes are done. No work, no effort is our value proposition and how we will extend our lead.
We also aim to transform the assisted tax category by connecting people to experts and connecting experts to people. That's our second big bet number 2 Sasan referred to earlier. We envision creating and we have created a virtual expert platform that will revolutionize the way taxes are done by delivering complete confidence. Our third ambition is to disrupt traditional consumer finance by unlocking smart money decisions for our customers. Developing an AI driven platform that autonomously helps our customers save more money, pay down debt and put more money in their pockets.
And ultimately, we want to take those businesses, those opportunities, those capabilities and expand our reach globally. Now with that, I'd like to transition and really get into our tax business in-depth for a few minutes. Many of you are familiar with the category and the structure. The thing I would point out here is that there are 160,000,000 IRS filers this past year. The fastest growing segment this last year and over time is the do it yourself category.
And so fundamentally, the industry that we're in continues to grow and the fastest part of that category growth is do it yourself online filing. Now we see it as our responsibility as championing online filing for the industry and for our customers actually more importantly. We champion that filing by innovating in free, developing amazing experiences that attract customers from assisted where they are overpaying to an online platform where they can file for free. We also are focused on using data and using our capabilities around AI to remove the complexity out of complex returns. It's important for us to drive the awareness of this hybrid tax category and TurboTax Live because that represents a new way for customers to get their taxes done with complete confidence and with complete control.
And ultimately, another big driver of the way that we think about growing the category is by focusing on customer segments, particularly the fast growing underpenetrated that are underserved by the market today, Latinx, self employed and investors. And then finally, it's not just about tax. We will grow the category by taking tax relationships and extending beyond tax and giving consumers the opportunity to deliver great benefits on our consumer finance platform. Now one way to look at our business is our funnel. There are 160,000,000 filers this past year, 112,000,000 unique visitors actually came to our website showing intent to consider filing in our business.
That ultimately translated into 51,000,000 filers logging into TurboTax, then ultimately 35,800,000 filing with us. One thing I'm particularly proud of is the continued progress we've had year after year of driving retention. Our retention rate now is up 2 points, up to over 81%. Now the other way we think about the opportunity space has to do with the way we think about the size of the total addressable market. The total addressable market that we're interested in penetrating is that $20,000,000,000 market with over 80 6,000,000 assisted filers that are actually paying a lot more money to get their taxes done than they need to be.
That's the offering and that's the opportunity we see in front of us. It's important to know that as we look at the scoreboard, we see gains share of our total Irish returns as incredibly important, both customer share as well as revenue share. We saw our customer share growth to 30%, up 2 points this past year and our revenue share is now up 1 point versus a year ago. So we are making progress in the way that we penetrate that segment and the other part of this is that we do it by having high quality, high end products that consumers are willing to pay for. That's always been our secret of consistent year over year improvement in average revenue per return.
And in particular, now that we have this focus that we brought to light regarding pay nothing customers in the 20% growth, but what about the paying customers? Those paying customers who we continue to innovate on or for rather continue to accelerate their average revenue per return. This last year we're approaching almost $100 per return. So that's our playbook. That's our key to success around the tax business.
But now we need to also talk to you about consumer finance. Consumer finance is a platform that we have that we can solve many problems beyond tax by reengineering our customers' financial lives, help them save more, help them pay down debt and actually help them address the habits that they have that may be digging them into a hole versus helping them get out of a hole. Now one thing I would share with you is what about the size of the TAM in this market? We see a massive opportunity in terms of financial advice as well as the lead gen opportunity in the market. We see significant number of customers, over 100,000,000 customers that actually we can capitalize on because of lead gen and beyond user paid type revenue streams.
And so when you look at the size of that TAMI opportunity, I would point you towards not only the $12,000,000,000 of financial advice, but the $10,000,000,000 that we see as an opportunity when it comes to lead generation. So with that, I want to do a quick click on each of the three areas, the opportunities and maybe more important, the reasons why the proof points point towards success. Let me start by saying extend our lead in DIY tax prep by revolutionizing the speed to benefit. That is an opportunity I talked to you about that shows $112,000,000 net visit, but ultimately only $35,800,000 net file. As a matter of fact, we have $15,000,000 that started in our product but don't finish and they leave because of some kind of friction along the way.
So we know we can revolutionize the speed to benefit and actually grow customers through innovation and leveraging data. That would allow us to think about all the forms that we ingest, the millions of forms that we ingest so we can prefill the return and actually help fill file with confidence and remove errors that come in preparing your tax filing just by fat fingering keys. We ultimately see opportunities to grow the number of mobile filers by over 2,000,000. We see opportunities for us to grow the number of underpenetrated segments. This last year was 2,700,000 new Latinx, self employed and investor filers.
We see opportunities to improve conversion to drive retention and to actually ultimately make it easier for taxes to get done faster. So those are the opportunities and strategies for growing and extending our lead in DIY. Now let me share with you transforming the assisted tax category. This is the $20,000,000,000 of TAM that we spoke with, dollars 86,000,000 of filers that are going to an assisted tax prep method because they lack the confidence to do it themselves or they're unaware of the opportunity to file with a product like TurboTax Live. They describe TurboTax Live opportunity in a way that helps you understand all the opportunities for growth that we see.
Number 1, TurboTax Live is a new category. We need to focus on driving awareness of that offering. But beyond awareness, it's not just becoming aware of it, it's actually consideration. How do we communicate and demonstrate the benefits of DT Live so it breaks through those filers who are now overpaying assisted consider coming to DT Live and actually not only consider it but trial. This last year we won a lot of experiments trying to understand how to accelerate trial and accelerating trial is key to our success in this platform.
And then fundamentally, it's not just about trial, we ultimately want to drive conversion and retention. Let me tell you the conversion and retention come because we know people leave us historically because they lose confidence. With TT Live, we have the ability to surface professional experts that can engage them even before they leave and make sure that we are able to offer them all the help and assistance they need to file with confidence. We also see this platform growing, growing way beyond where we are today. Imagine when we go from a do it with me offering to one where we have full service.
We have a full service experience, a do it for me experience. That will actually attract and appeal to many other assisted fathers who currently haven't raised their heads yet, but they will when they understand that we can deliver a full service experience from the comforts of their home. The other thing is that currently our T2Life tax base is similar to our TurboTax online tax base in terms of the amount of complexity, but our pros and our experts have much more opportunity to serve and satisfy the needs of much more complex customers and businesses. So we see a lot of growth opportunity by optimizing the funnel and continue innovating in TT Live and that's how we're going to penetrate the $20,000,000,000 of TAM. So let me transition finally to disrupting consumer finance, unlocking smart money decisions for our customers, helping them make ends meet, helping them take the $86,000,000,000 in refunds and putting that to work in a better way, dollars 2 $8,000,000,000 of payroll, helping them use that in a better and a smarter way.
We shared the opportunity a few slides before, but fundamentally with our 47,000,000 registered users and our 6,000,000 monthly active users, we have many opportunities to address the needs that they have to make their lives better. And so what drives that on the platform, it starts with data. That data needs to be consented data based on the trust we offer our customers and we use that to drive notifications as an example. We see a 6x improvement on click through rates. Whenever we actually have customers establish a goal, we're able to see the conversion rate on the program, the retention rate rather on our platform go up by 2x.
When we see a customer track their refund in our app, be it Turbo or Mint, what we do see is almost 1.4x improvement on retention rate by that activity. So fundamentally, what we're seeing is that when you provide data and that data drives the experience in your engagement and you couple that on a platform with financial partners that are looking to find high intent customers at that moment of need, that creates opportunity and that opportunity creates the opportunity to monetize. For us this last year that was about $44 per conversion on our financial platform. Credit Karma, not only do they have massive skill that Sasan shared with you, not only do they have an engaged customer base, but they actually are the world's best when it comes to delivering benefits, following customer solving needs and translating that into beyond user paid revenue or indirect monetization. Quite honestly, the opportunity we see of our business combined, as Sasan shared, is why we're so excited about our ability to truly unlock smart money decisions for customers as well as help better serve financial partners who are looking to serve customers better.
So with that, I want to bring this together for you. Our history has been 30 some odd years focusing on driving tax customers and then monetizing them as our lives became more complex. As they hit a life event, had a baby, a new job, that opportunity was to deliver benefits. And also they would pay more money for those. And then about 5 years ago, in earnest, we went after the opportunity for us to figure out how to stop customers from abandoning that $16,000,000 or how to stop the $6,000,000 that leave us on average each year.
We know that by delivering confidence through TTL, I have been bringing in pro and experts and engaging customers proactively that we never have to lose a customer or a prospect on our platform and guess what they pay more money for those. It's a higher average revenue per return and customers are more than happy to pay that because they're paying more for that by the way whenever they're in the assisted market, but ultimately they really appreciate and value the value of confidence when it comes to something so important as doing their taxes. Then the last part of our strategy in the last couple of years is we've layered on to becoming a consumer finance platform. A consumer finance platform that allows consumers to reengineer their financial life that allows consumers not only to reengineer their financial life, but effectively allows them to pay down debt and to save more, to set financial goals, to get rid of bad habits. When they do that, whenever they trade in a credit card for a lower interest rate credit card, whenever they refinance a student loan, originate a mortgage or refi a mortgage, refinance an auto loan, all those create opportunities to put more money in their pocket.
And all those represent opportunities for us to generate revenue through a beyond user paid model. That's what Credit Karma has perfected. They are the world's best at that. And if you couple Credit Karma along with our platform and bring that data and the relationship in the scale together, we think we can make a big dent in fighting for financial freedom for all consumers. With that, I would just share my last slide, which effectively talks about our expectations of the future.
As we shared with you and we remain committed and confident in our ability to grow this business 8% to 12% each year, not just in the future sometime, but each year. That was true this last year, it's true this year coming up. We know the biggest drivers of the growth is the IRS category growing at 1%, DIY category expansion, just fundamentally average revenue that we're able to generate per return and then the share that we're able to generate across all of the IRS tax category. Those drivers as I shared with you today all look positive in our favor and they fuel our growth last year and they will fuel our growth for years to come. So with that, I'm going to hand it off to Laura to talk to you about corporate responsibility.
Thanks, Greg. Hi, everyone. I'm Lara Baloche and I'm Intuit's Chief Marketing Officer and General Manager of our strategic partner group. As part of this role, I head up our corporate responsibility efforts at Intuit. In this capacity, I am responsible for all the good we do in service of supporting our communities and the world.
This is something I'm personally very passionate about, given how critical I believe these initiatives will be for the long term health of our society and the planet. As you know, our mission as a company is to power prosperity around the world. And you just heard from Alex and Greg about how we create products and services to support the prosperity of our customers. We also power prosperity through all the good we do through 3 key areas with our corporate responsibility initiatives, which are aligned to our business strategy and making our world a better place. Today, I'm going to walk you through those three areas.
But first let me share with you a little context to show how all of this fits together. You've seen our alignment triangle, which shows our company strategy all on one page. You know from Sasan's introduction, we've added communities as a critical part of our True North goals. As a senior leadership team, we felt our impact on the world was missing and we agreed it was critically important to begin to recognize these efforts in this area. This addition of communities represents how important we think supporting the world and the communities we serve is as part of our total Intuit strategy.
As we step back to codify a corporate responsibility strategy to support our communities, we started by first defining ownable assets to deliver at scale, while being aligned with United Nations' sustainable development goals. These three principles are 1, aligning to our mission 2, aligning to our values and 3, supporting our Big Bets, Bold Goals and True North goals. Using these principles, we selected 3 areas of focus, job creation and job readiness, climate and diversity and inclusion. Each of these areas are distinct and unique to Intuit, while allowing us to have impact at scale. As you see here, we have identified measurable targets, which allow us to measure our progress and hold ourselves accountable to these clear outcomes.
We know it's important for you to understand where we're headed and be able to track our progress. We are extremely proud of what we've already accomplished and we are committed to achieving these outcomes by 2023, which I'm going to unpack for you in the rest of the presentation. On the job creation and job readiness front, numerous studies show there's a rising economic inequality in communities driven by shifts in technology, the environment and society, which can be uniquely addressed by Intuit. Our response to this serious issue is through continuing to build on the success of our Prosperity Hub program. We launched the Prosperity Hub program in 20 16 to bring jobs, training and educational resources to communities in need.
The program is designed to spark economic prosperity in regional communities as well as provide remote job opportunities for people in need. Through this program, we have already created thousands of new jobs in physical and virtual locations, employing those in distressed communities. We are preparing individuals for the jobs of the future by providing education on critical 21st century skills and providing skills to train entrepreneurs to start and grow their own businesses. The impact of this Prosperity Hub program is significant. By fiscal year 'twenty three, we expect to create over the 7,000 jobs, prepare over 1,000,000 individuals for jobs, all while yielding an economic impact of well over $1.50 for every dollar we invest.
Intuit is also focused on making a positive impact on climate, one of the most significant issues of our time. Science reveals that even if companies achieve the goal of reducing their emissions by 50%, it will not be enough. At Intuit, we've long been focused on decreasing our carbon footprint, becoming carbon neutral and moving well beyond carbon neutrality. This past year, we announced what we call our 50x30 goal, 50x30, where we are committed to making a positive impact on the planet equal to 50x greater than our own carbon footprint by 2,030. To accomplish this, we are working well beyond the walls of Intuit and collaborating with and providing innovative carbon reducing solutions to our employees, our customers, our partners and the communities we serve.
For example, to support our customers, we are testing a sustainable shipping option, so that small business customers that leverage e commerce can use this to sell their products. This initiative provides financial savings for shipping goods while reducing their carbon footprint. Customers are saving on average 25% of their shipping costs compared to the previous vendor, all while taking down the carbon footprint. Today, we are incredibly proud, we are carbon neutral and by fiscal year 2023, we expect to be 10 times carbon positive as compared to our 20 18 footprint, well on our way to being 50 times carbon positive by 2,030. We are very passionate as a company about diversity and inclusion.
It has always been part of our values and what we stand for. And we know we must do more. Sasan and Scott Beth, our Chief Diversity Officer have often said diversity is a fact, but inclusion is a choice. Given the current environment, our commitment and focus on racial and gender equity is more important than ever. We have made progress, but we need to get better and we will get better, especially when it comes to ensuring we have a greater percentage of underrepresented minorities within our employee population, in particular an increasing representation of black employees.
It starts with our leadership, setting goals and holding us accountable. We've been guided by a group within Intuit's African American ancestry group called the REALTEAM, which stands for Racial Equity Advancement Leadership. Working with the Real team, we are dedicated to creating durable change as it relates to racial equity. The team is now providing input into a variety of key work streams and in the next month we'll be announcing initiatives to drive durable, sustainable change in this area. A few things the team is helping us work on are tangible plans to expand our traditional talent pipelines to generate a more diverse pool of the candidates, help ensure representation at all levels of the company, ensure any promotional and compensation gaps are addressed, confirm black representation is present when developing all of our products and reviewing our marketing campaigns for an inclusive approach to everything we create and produce, ensure our corporate giving and philanthropy work supports communities in need, in particular black communities and invest in the education of our black employees.
To drive the sustained change, we have created a new position of Director of Racial Equity to ensure this is not just a check the box initiative. We are doing this while providing all employees with visibility to our progress to build transparency, trust and a culture of belonging so that everyone can bring their full authentic selves to work every day. For example, we have a diversity dashboard that's available to all 10,600 employees across Intuit, so everyone can see where we stand against our goals. By fiscal year 'twenty three, our goal is to have 35% of our tech roles filled by women and 16% of our total workforce comprised of underrepresented minorities. This is just one way we stay accountable to our goals, because as I mentioned, we know we can and we must do more.
In summary, while the corporate responsibility community work we do is inspired by those we serve, guided by a core set of principles and focused on making the world a better place, there are clear business benefits as well, benefits aligned to our business strategy empowering prosperity for current and future customers. Our focus on job readiness provides exposure to Intuit and our products to the next generation of users, providing entrepreneurs with training they need to start a business and then helping them reduce expenses by reducing their carbon footprint increases the number of small businesses and improves small business success rates. And finally, by having more diverse perspectives ensures we will create even more relevant and successful products and services for customers. Next up, Michelle will take you through our financial outlook. Thanks, Laura.
Good morning, everyone. It's great to be here with you all in this virtual environment. Thank you for spending part of your day with us and thank you for your support of Intuit over the last year. We've gone through a lot of content this morning, so thank you for staying with us and we're almost to Q and A. I hope you found the platform immersion experience helpful again this year for understanding how we're solving some of our customers' most important problems in the current environment as we make progress against our strategy of becoming an AI driven expert platform.
And I hope you enjoyed hearing from Lara, how our strategy intersects with our principles for corporate responsibility. We added that this year in response to many of your questions. Before jumping into the numbers, I want to acknowledge what was a very dynamic fiscal 2020. This year was full of challenges for both our small business and consumer customers, but I'm proud of how resilient our platform was as we focus on helping our customers. In small business, we saw an immediate impact from shelter in place orders during the Q3.
And while we saw trends improve in the 4th quarter, demand remained below pre COVID levels, yet we still delivered revenue at the high end of our 10% to 15% long term revenue growth range. In tax, we faced an unprecedented delay in the IRS filing date. Yet we had a remarkable year. We're very pleased with the 13% revenue growth we delivered in the consumer group. We estimate the DIY category grew over 2 points this season.
Our share of total tax returns grew over 1.5 points and we grew customers at the fastest rate in 4 years. Additionally, the longer season gave us the opportunity to experiment as we prepare our strategy for next season. And underpinning all of this is our AI driven expert platform and 5 big bets, which are focused on solving our customers' biggest challenges and will drive durable growth for our platform. Let me remind you how we are managing the business in this environment. First, we remain focused on keeping our employees safe and healthy.
This is our number one priority, so they can continue delivering for customers. 2nd, we're focused on doing the right things for customers, giving them access to the tools and products they need most. 3rd, we're managing for the short and long term and controlling discretionary spend to deliver results while investing in what is most important for future growth. And lastly, these principles are designed to accelerate our execution and innovation in the future and help both our customers and Intuit emerge from a downturn in a stronger position than when it began. And while the year had plenty of surprises, we executed well against the objectives we outlined for you at Investor Day last year, which are on the left side of the slide.
On the right, you'll see the outcomes we delivered against those objectives, even in the uncertain environment we faced. We achieved our goal of double digit revenue growth with 13% growth at the company level. Our 2 main online platforms, QuickBooks and TurboTax are now $4,800,000,000 and growing 22% combined with small business online ecosystem revenue growth of 31% for the year. And we grew GAAP and non GAAP operating income by 17%, driving a point of operating margin expansion and I'll touch more on that in a minute. We also remain pleased with our ROIC and the consistent dividend increases we've been able to provide.
We use our financial principles to guide the decisions we make. These should look very familiar as they remain unchanged. Each year, we challenge and discuss them during our planning process, reaffirm them as a management team and confirm them with the Board. Let me provide a little bit more color and context on each. First is double digit organic revenue growth.
We continue to see a large opportunity ahead in serving consumers, small businesses and self employed to grow the company's revenue double digits as we expand the set of customer problems we address through a broader set of products and services. Next, we focus on growing operating income dollars faster than revenue. It's good discipline for us to approach each year with expenses growing slower than revenue. And as we said, we manage margins at the company level, so I wouldn't focus too much on small changes you see in the operating margin at a business unit, given the leverage we get from the technology platform that supports many of our products and services. And I'll share more on this in a minute.
And while we are not driving towards a particular level of annual margin expansion, we are starting to see the leverage of our platform. Next, we deploy cash to the highest yield opportunities targeting a 15% ROI over 5 years. This principle is key to managing our business for both the short term and the long term. Whether we're looking to expand into new products and services or as we invest more deeply into our core technology platform, this threshold is key to making all internal investments that we'll deliver for years to come. And we also apply the same hurdle to any acquisitions that we're considering.
After this, we return excess cash to shareholders. This speaks to our stewardship of how we handle the capital we generate and comes in the form of buybacks and dividends. On share repurchases, we utilize the smart grid to achieve a rate of return over time that exceeds our own cost of capital.
While we were out in
the market in the Q4 due to our pending Credit Karma acquisition, we do expect to be back in the market in the future. And finally, we managed to a conservative investment grade balance sheet that can sustain our business through all types of economic cycles. This has served us well in the past and lets us lean in during downturns like we're experiencing today to emerge even stronger on the other side. Our QBO and TTO platforms are driving our revenue growth and we expect this will remain the case going forward. In 3 years, we expect more than 70% of our revenue to come from these offerings.
We'll continue to support customers using our desktop offerings as these remain very profitable, which allows us to invest in new products and services. And as we've shared before, a large amount of our revenue we expect to see in fiscal 2021 will come from existing customers, which means we have a highly predictable revenue model. Similar to what I shared last year, we expect more than 80% of our revenue this year to come from customers we already have or who are expected to return based on past behavior. Customer growth remains an important part of our strategy across both of our businesses. As Alex and Greg shared earlier, we're solving a broader set of customer pain points across a larger customer base in each of our businesses.
Starting with QBO, on the left side here, you'll see total paying customers. This includes QuickBooks Online, our desktop subscribers and desktop unit sales. Once again, our total net adds grew in fiscal 2020 despite COVID related headwinds. Our desktop base remains relatively sticky, but we continue to see the majority of customers who are new to QuickBooks choosing QBO. We still have a large runway ahead in the U.
S. As well as internationally with a broader set of customers from the self employed to the small business mid market. And as Alex shared earlier, we're opening up new opportunities for growth and revenue by broadening who we serve, how we serve them and what we serve them with. This includes virtual expertise, the mid market and omni channel customers. We're also delivering more value across our products, which improves our monetization over time and this resulted in 56% customer growth in our top ARPC bucket in fiscal 2020.
Moving to the consumer group, we continue to see traction with our goal of growing our share of total tax returns. This year was highly unusual with the delayed IRS filing deadline. We were pleased to help drive growth in DIY category share of over 2 points, the fastest in 15 years, and we increased our share of total returns by over 1.5 points. As we focus on transforming assisted, TurboTax Live opens up the $20,000,000,000 assisted segment of the tax prep market. Our TurboTax Live customers grew nearly 70% this season and this offering was again a meaningful revenue contributor, but we continue to see plenty of runway ahead.
We also grew the base of customers paying us nothing, just over 20%. Bringing customers onto our platform via our free offering remains a key element of our long term strategy as we seek to solve a broader set of customers' financial needs and disrupt consumer finance with Turbo, Mint and upon closing Credit Karma. Lastly, when free customers are removed, you'll see that our average revenue per return has seen very healthy growth for a number of years. Everything we do is customer backed and across all of our businesses, we're able to improve monetization as we increase the value we're providing to our customers. ARPC is not something that we manage to, it's the output of the various decisions we make regarding customer and revenue growth.
But that being said, we recognize that it's a key input for many of your models. So looking at QBO Worldwide, we saw an increase in our ARPC this year across our U. S, international and self employed businesses. We're increasingly focused on growing higher value customers and we're seeing traction with this strategy as we expand into virtual expertise, the mid market and omni channel. We continue adding value across all of our products, which improves monetization opportunities over time.
Going forward, we expect QBO Worldwide ARPC to continue increasing. In the U. S, this will be driven by our maturing customer base and increased monetization via online services and higher value products like QB Live and QBO Advanced. Outside of the U. S, we expect to see an increase in ARPC from our maturing base and lower promotional activity.
Turning to QuickBooks Desktop, we see an increase in ARPC due to strong growth in our mid market desktop enterprise solution, which we expect to continue. And in consumer tax, we saw another year of ARPC increases due to the contribution by TurboTax Live and some minor price increases. And this was offset by strong growth again in free this season. Durable revenue growth and disciplined investment have driven our operating income growth historically and we remain focused on both going forward. We expanded operating margin by 1 point this year as we followed our playbook for operating in a downturn, while we also began reaping the benefit of a platform approach.
On this slide, you'll see our long term expectations for the P and L and this looks a bit different than it has in the past as we've evolved how we manage our cost base as we become an AI driven expert platform. Gross margin has been relatively stable in the low to mid 80% range and we expect that to continue. While we look at each of these lines individually during our planning process, we expect each to be flat to down as a percentage of revenue over time as our platform evolution enables new drivers of operating margin expansion. Sales and marketing is an important area of focus as we grow our businesses and build our brands. LTV to CAC targets provide the guardrails for our investment in small business, while the consumer team focuses on a 1 year payback in our tax business.
As for R and D, we expect to invest more effectively and efficiently as we leverage key services and capabilities across our businesses to accelerate innovation, which is our ultimate compass. And we continue to see an opportunity in G and A to generate some leverage as we grow and we're working hard to make sure we're best in class. A key element of our financial principles is to grow operating income dollars faster than revenue, resulting in some margin expansion each year. However, as we lean into our platform strategy, we're starting to see the opportunity for faster margin expansion than we have in the past few years as we leverage key services and capabilities across our businesses. We're increasing the velocity of development on the platform to deliver even faster benefits for customers across all of our products and services.
This includes our AI capabilities, our expert services, money movement and fraud and risk capabilities. We're scaling our customer success platform across our products and services to more effectively and efficiently serve our customers. And our go to market capabilities leverage a common infrastructure to effectively target and manage the sales and marketing process efficiently. Our platform evolution in each of these areas creates opportunity for faster margin expansion over time. At a high level, our approach to investment hasn't changed.
We invest in the highest yielding opportunities with a focus on investing to drive durable growth and accelerating speed and velocity, all within the context of our financial principles. Making deliberate trade offs to allocate investment to the best opportunities remains a core element of our DNA. We continue to prioritize investments in our big bets, including connecting people to experts, unlocking smart money decisions, being the center of small business growth and disrupting the small business mid market. And underpinning all of this is the focus on revolutionizing speed to benefit through the technology platform I shared earlier. We'll be allocating more of our investment dollars into these areas to drive durable growth over the long term, while being very deliberate about investments in core innovation and running the business.
It's important to us to be effective stewards of capital, especially in the current environment. This includes investments in organic growth drivers as well as acquisitions to accelerate progress against our strategy, whether it be in talent and technology or to help fill out our product roadmap. Over the last 5 years, we've returned over $6,000,000,000 to our shareholders through share repurchases and dividends. We repurchased nearly $320,000,000 in shares during fiscal 2020. And I'll touch more on repurchases in a minute as this remains an important tool to return capital that can't be invested profitably in the business.
Though we temporarily suspended share repurchases in conjunction with the Credit Karma acquisition, we expect to be back in the market in the future. As for dividends, our Board declared an 11% increase in the dividend for fiscal 2021 and we continue to expect our CapEx to remain at approximately 2% to 3% of revenue. Our philosophy and principles on share repurchase remain consistent with what we've shared in the past. That being said, let me quickly remind you how we manage our program. We limit repurchases to cash that can't be profitably invested in the business or used to make prudent acquisitions.
We apply rigor to the process by utilizing a smart grid to drive various levels of purchases at each price range with a goal to exceed our cost of capital on average. At a minimum, we expect to offset dilution over a 3 year period. However, we don't expect to be compliant with this principle in the short term following the Credit Karma acquisition. Looking ahead to this year, we are not providing guidance, reflecting the uncertainty in the macro small business trends. In the consumer group, we're confident in our plan and strategy next season, though we acknowledge that we face a challenging comparison after the acceleration we saw in our results this season.
We've grown consumer group revenue double digits 3 years in a row and we continue to expect growth in the range of 8% to 12% each year. We believe the current environment is accelerating the trend towards virtual solutions and TurboTax Live is well positioned to help customers in this environment. We don't see anything that would lead us to believe will be outside of our longer term range this year. In Small Business and Self Employed, we see several scenarios for how the economic recovery may impact our performance this year. These are consistent with what we shared on our Q4 earnings call, so I won't review them again here in detail.
But these are the scenarios we're considering as we run the business in this environment. Though we're not providing guidance for fiscal 2021 at this time, don't confuse the lack of guidance with a lack of confidence in our strategy and big bets. In fact, we have more confidence than ever in our ability to drive long term growth across our platform given our accelerated innovation across the company. I want to quickly highlight something we shared in our 10 ks, which is that Intuit could incur arbitration fees of approximately $120,000,000 beginning in fiscal 2021. I want to give you a little bit more context on this item.
Intuit is the target of a law firm whose standard approach seems to involve making a demand that companies pay a settlement amount to the law firm instead of paying fees associated with arbitration. An increasing number of companies are facing similar attacks by the same law firm. There were approximately 42,000 arbitration claims pending against Intuit at the end of fiscal 2020. We're in the process of disputing these fees and we believe this is an abuse of the arbitration system. One other housekeeping item, going forward, we're changing the name of our strategic partner group to the ProConnex Group beginning in fiscal 2021.
This better aligns the name of this reporting unit with the segment that is driving revenue. So in summary, we had a dynamic fiscal 2020. We're set up to continue our strong performance for fiscal 2021 and beyond. Our AI driven expert platform unlocks opportunities to better serve customers across our businesses as we focus on offering them the products and services that solve their biggest problems. And as our investments on this platform can be used across all of our offerings, we see new opportunities of operating margin expansion in the years ahead.
I look forward to connecting with all of you throughout the year and keeping you apprised on our progress. Thank you. And next up, I'll pass it back to Kim to open Q and A. Thanks, Michelle.
We are ready to get started with Q and A. If you don't plan to ask a question, you don't need to do anything. You can stay right here. However, if you are a registered user and you would like to ask a question, please click on the breakout room button below in the agenda to join us for Q and A. We will get started in just a moment.
Okay. Let me run through a few logistics before we get started. First, I'll remind you that to ask a question, you need to raise your hand by clicking on the raise your hand button at the bottom of your screen. Once I call your name, please turn on your video and unmute your line. Be sure to state your company name as well as your name and just note there'll be a slight delay while we promote you to ask your question.
As the queue forms, I'll share who is available to answer questions today. In addition to all the presenters who you saw previously, we also have 3 additional members of Sasan's staff participating: Mariana Tetzel, our CTO Mark Notioni, our Chief Customer Success Officer and Turi MacLean, our General Counsel. Sasan will be the quarterback on our call today and either take the question himself or pass it all along to a member of his team. So now we have our first question from Kash Rangan. Kash, we'll wait a minute for you to join us.
Hooray. I think we're in. I don't know if you can hear me and see me. First of all, congratulations on a terrific Analyst Day, the kind of metrics you disclosed to us and the narratives and the quality of the narratives made it really, really very compelling. So great job to the team for putting this event together.
A question for Sasan, as you look at digitization initiatives on part of your customers and catalyzed by the pandemic, how do we think about life post pandemic? In other words, does life get more digitized? Does digital transformation accelerate post pandemic? Or is there a chance we actually go back to our old ways? I mean, as weird as it might sound, maybe there is a chance we go back to post a vaccine normal life.
And if that's the case, will digitization slow down or will nonetheless accelerate? And secondly, maybe Michelle can opine on this as well. As Intuit is concerned, how are you internally going through your own digital transformation, albeit you're facilitating this on part of your customers? And as you look at your internal transformation, what are the key priorities and key investments you're making to digitally transform yourself if that is the case? That's it.
Thank you so much and congratulations again.
Great, Kash. Hey, thank you very much. Great to see you and hope you're well and safe. In essence, what I would say is we're never going back. I think we've kind of leaped ahead 5 to 10 years.
And I believe that there's going to be behavioral and structural changes across the globe. And really there are 3 areas that's actually propelling a lot of the innovation that we're delivering and a lot of the uptake around our innovation. 1 is our virtual solutions with TurboTax Live, QuickBooks Live and Mint Live. That is just a thrust. It's happening in every industry and it's happening in the segments that we serve.
The other is there is just an incredible focus on figuring out how to save more money and get out of debt. And that's really where our better on unlocking smart money decisions and the work that we had laid out earlier today, which will get completely propelled with Credit Karma that positions us to in essence give consumers in the palm of their hands the ability to save money, get out of debt and get connected to financial products that are right for them. And I think the third is a acceleration to a shift online and omni channel. And you heard about the exciting new innovation with Cookbooks Commerce. But our new acquisition of Cookbooks is now back at pre COVID levels, while we're still in this pandemic, because I think folks are seeing that a shift to online to run their business, to get paid faster, to run payroll, to get access to their money faster is just going to be essential for cash flow and their livelihood.
So that is what we are seeing, what we are experiencing. I don't think we're going to go Now the reality is there will be some sense of wanting to connect in a physical world, but in these three areas, we won't go back. And internally, I would tell you that we've started the transformation of being in this virtual world, shifting to the cloud, shifting our tools to be all online years ago, which is actually one of the reasons and I thank the team for this, where our 10,000 employees were actually able literally on a dime to go work from home and be able to still deliver for customers because a lot of what we do internally is already in the cloud, is already virtual. And I actually don't think the pand the pandemic is not exciting. I'm looking forward to getting through this health crisis, but I'm actually excited for how all these behaviors will change around the world and what it will mean for our customers.
Thank you very much. Congratulations.
Great to see you. And I'll turn it back over to Kim.
Great. Thanks so much, Kash. Okay. Our next question will come from Kirk Materne. Kirk, we'll bring you up and you can go ahead and unmute and turn on your camera, please.
You should unmute.
There we go. Do you have me?
Yes. Perfect.
Perfect. Thanks very much for all the time and the presentations you take. I guess maybe for you, Dusan, on the QuickBooks side, e commerce today being launched, just kind of curious what you're seeing in terms of clients wanting to consolidate the number of SaaS vendors they're using within the small business ecosystem. Meaning, all the trend SaaS still ongoing, there's a lot of apps that people are using. To your point, I think some earlier points, people are trying to figure out how do I make my life easier and not more complicated with services.
So
where do you
see those trends developing? And then I guess specifically around commerce, what do you think you can do in that particular area maybe around inventory management or order management as they weren't being helped out with via?
Sure. Great. No, thank you for your question and very nice to see you. Let me take the first part of your question then I'll turn it over to Alex to add a little bit more perspective on QuickBooks Commerce. First of all, I would say that customers really care about cash flow management and they're really looking to understand where do I stand and how do I ensure that I have as much cash in my account as possible, which means that they're looking to get paid fast.
They're looking to hold on to their money as long as possible before money comes out to make payroll. They're looking to get access to QuickBooks Capital. So it's all about cash management. And really that's the essence of why our strategy is about being an open platform. We want to ensure that anything that the customer needs is on one platform, whether it's an app that we've created or it's an app that somebody else has created.
We want to make it seamless for the customer. And that's why our focus is on kind of deep integration of the applications and being able to leverage their transactional data to be able to ultimately give them some of the insights that you for instance heard Ronia talk about. That can only happen by having an open platform where we can leverage the data to provide insights to customers. So ultimately the customer is looking for being able to manage their cash flow and they're comfortable using multiple different apps as long as those apps are talking to one another and it helps them understand how to manage their business. Where they get into trouble is when there's multiple different things that they're using there in very different places and they're having to manage their own cash flow through Excel and that's where things fall apart.
And that's actually why I'm so excited about our cookbooks commerce strategy, which is being an agnostic platform to help customers connect to mega channels like Instagram, Facebook, Etsy and others to be able to put up their own website and store to ultimately be able to accept payments in any which way that they want. And then equally as important, ensure that it connects to their inventory and ultimately so they can fulfill the orders. So they can use multiple different applications. That's why you heard Alex talk earlier that we have 50 plus partnerships and we're just getting started. In fact, moments after we went live, we got our first customer organically and we're really excited about the possibilities.
Alex, would you like to add anything?
Yes. Thank you, Sasan. So just what you described was in terms of multiple apps coming together, these small businesses are fighting for survival. And our job is to make sure that we are removing friction across the board. You know, whether it's using multiple apps, that's fine.
But if they don't talk to each other, then there's a challenge. And that's why our strategy to be the source of truth for your business is so critical. We're removing the friction. You saw it in the cash flow example that Sasan gave. You saw it in being able to do workflows across in our QuickBooks Online Advanced product, all of that is in service to removing friction.
And then when we think about QB Commerce, it's the same thing. You know, I painted the picture, if you're just focused on inventory for a moment, if you're selling through a single channel, you can manage your inventory on a spreadsheet or on pen and paper. But as soon as you add that second channel, what do you do? You're now trying to reconcile orders from multiple different places and have a source of truth that is inconsistent. And that's where we thrive.
We want to be that source of truth for our businesses to help them manage that inventory, help them manage their orders and remove friction across the board. So we're very excited about this because by unleashing our small businesses for growth, we think we're going to get them access to channels they couldn't have even dreamed of before. So excited to launch this today and how we help our customers accelerate their growth. So Simon, back to
you. Awesome. Thank you, Alex.
Thank you.
All right. Next question.
Okay. Thank you so much, Kirk. Our next question comes from Jen Lowe. So it will take just a minute, Jen, while we promote you into the webinar. Please unmute your line and be sure to turn on your camera.
Great. Thanks for taking the question. I wanted to talk a little bit around the trend line in QuickBooks Online. And clearly this year, there was a lot of challenges out there that we're all well aware of, but that did just sell art maybe even a bit more sharply than I would have thought. So can you talk a little bit about what that trend line might have looked like first half versus second half?
And should we expect that over time to get back to that $1,000,000 or $1,000,000 customer plus ad rate or was last year kind of a peak as you focus on expanding with an existing base?
Yes, sure. Good to see you and thank you for your question. Let me start with the latter part of your question. I would tell you that we now have more front doors and the ability now to serve the entire marketplace from those that have no employees all the way to 100 plus employees. And now with today's announcement, both service based businesses and product based businesses and vastly greater set of services than we've ever had.
And so we actually feel very good about the opportunity and the TAM is significant. So when you think about the opportunity to penetrate the TAM, the penetration is still very low and we're just getting started. I think what we wanted you to take away from today is the fact that we want you to think about a formula, which is growing customers between 10% to 20%, growing ARPC between 10% to 20%, and that will lead to 30% plus online revenue growth and ultimately the 10% to 15% long term expectations. We've not at all peaked out. We just wanted to simply give you a formula as to how to think about it because that mirrors how we are now going to market and being very intentional about how to go to market.
So that's kind of one element of your question. I think the second is from the trends that we shared at earnings, which actually had improved from when the pandemic first started, we're continuing to see an improvement in trends. In fact, our new acquisition trends are back at pre COVID levels. Our payments volume continues to improve. We're now about 7 to 8 points below pre COVID levels, but that's just been a continuous improvement.
The number of companies running payroll is now only 4 points below pre COVID levels again continuing to improve. And so the great news is, we're inspired by our small businesses. They're scrappy. They're starting to come back as the economy opens up. Now it looks different by part of the country, but those overall trends continue to improve and we feel like we've got incredible runway back to the latter part of your question as we look ahead based on the number of front doors serving product and service based businesses and then the number of services that we now have.
So think about it not about a peak, but more about now the opportunity is vastly
Hey, can you hear me now?
Sure can.
Great. Matt Pfau with William Blair. Just wanted to ask on the QuickBooks Online on the international side. So when we think about expanding QBO into new geographies, if we look at that chart that you put up, France and Brazil have been in that sort of emerging market category for several years now. So what does it take to move them into that established market category?
And then when you think about the experience that you've had with expanding into France, anything there that could be used to more directly target other European countries?
Yes, great question and very good to see you. So a couple of things I would say, if you go back a few years, we implemented a global playbook and that's really been instrumental in the clarity that it's provided us both in terms of how we think about execution in the countries that we're in and how they get promoted from kind of a horizon 3 to horizon 2, which is an established country and how they get demoted back to what we call rest of world where we shift investment level. So the global playbook has really been instrumental and it also informs which countries that we enter and how we enter those countries. So that's I think element number 1. Element number 2 is we're very pleased with France and Brazil.
Let me just focus on France since that was the focus of your question. We believe the opportunity in France is actually quite interesting and quite large. France is sort of where the United States was 10 years to 15 years ago when it came to the usage of a platform and accounting software, high usage, but a lot on the desktop. And now what we're seeing and I think we think it's going to move much faster than the U. S.
Did. Now what we're seeing is a shift to the cloud. Both accountants are seeing as an opportunity to be much more effective and efficient than their business by being in the cloud and small businesses. And I think this current environment when in essence France like the rest of the world had to in essence shut down and shift to virtual and online solutions, they're actually seeing more so than ever the criticality of being online. And so we're now in a place where based on incredible work by our teams, we're at a point where we have product market fit and it's now continuing to expand what we build out on the ecosystem and then continuing to raise awareness in France.
And so I wouldn't be able to give you a timetable at this point because it's really driven by uptake by customers and the velocity of our execution. But we would foresee France being one of the countries that at some point will shift into horizon 2, which is one of our established markets with a big opportunity ahead.
Great. Thank you.
Yes. Thank you. Kim, back to you.
Great. Thanks, Sasan, and thank you, Matt. Next, we're going to go to Citi Panagogy. And Citi, while we promote you, I'm just going to remind you to unmute your line and please turn on your camera. I'll wait for just a minute for somebody to join us.
All this technology at work.
All right. First of all, congratulation for a successful virtual analyst. Shout out to team and our team. Now, yes, so on the QuickBooks side, I see you're expanding your TAM moving upmarket and in Sinepon also driving ARPC. I just want to dig into these 2 new products.
First of all, on the quick look at, what percentage of your installed base, what are the potential addressable like you see, dollars 65,000,000 do not have a bank account? And I see that you're partnering with a bank. So what's your monetization strategy there in terms of monetizing there? And where I mean, where do you see an opportunity further for this to help you acquire more customer?
Yes, sure. Well, first of all, thank you for your compliment. It's all the accolades go to Kim and the team for pulling this off. And let's knock on wood that nothing goes wrong until we're done with Q and A. The way I would think about QuickBooks Cash is less about going after the under bank than whether or not you have a bank account or not.
But if you think about the framing that Rania used, it really goes after the core problem of having one place where I can in essence receive and send money and where all my accounting gets done for me. So that's the power of QuickBooks Cash. And in essence, when you send an invoice, that money will get deposited into your cookbooks cash account, which is in essence your checking account. Then you can ultimately send money to your employees because it's connected to payroll right from that bank account and it will happen the same day. You can get access to a loan that can get deposited into that account.
So think about it and by the way, because of all the transactions happening in the app, the accounting can just get done in essence for you in the background, leveraging our knowledge engineering and ML models. So we believe that and this is our belief is based on several years of work and the behaviors that we're seeing from customers now. We believe this will be very disruptive because it will be very simple for a small business just to manage all of their money in one place. And we believe it will actually entice them to shift some of their bank accounts to use QuickBooks Cash because it's the one place where they can manage everything. They don't have to worry about multiple different bank accounts.
And we believe that those that just started businesses will be very attractive to and also those that already have businesses, they'll find this attractive because it's going after a core problem of cash flow management where we make it just drop dead easy. So that's the way to think about QuickBooks Cash.
Okay. Thank you.
Thank you for your question. Kim?
Yes. Thank you, Sasan, and thank you, Citi. Okay. Next, we're going to go to Scott Schneeberger. So Scott, as we open your line and bring you up, just a reminder to unmute your line and turn on your video, please.
We'll just wait for 1 minute as Scott joins us. Okay. Scott is stuck. We'll move to the next question. Just one minute.
Okay. Darren Baker, you have the next question and we'll promote you and we'll go back to Scott in a few minutes. But Darren, just a reminder to turn on your camera and unmute your line. We'll give Darren just a minute to join us. Okay, Darren, you're on.
Hey, guys. Good morning, and thank you as always for taking the time to talk to us about the business. My question is actually on the consumer side of the house. And it's focused on kind of the shock that we've seen to the parts of the consumer economy this year due to COVID impacts. You've talked about with your, I think it's big bet number 3, trying to help people unlock those money decisions that are important to their financial wellness.
And I feel like my assessment kind of from a distance is that there's probably a much greater need for that at this point in time, just given the financial impacts that many have felt this year. But there's also been effects where banks are tightening lending standards, pulling back on some products and things like that. I wonder if you could just tell us how you see the situation changing or the needs changing, I guess, for those consumer products, both turbo and Mint as well as upcoming Credit Karma, in this environment that we're in right now and how you would anticipate that situation evolving over the next couple of years?
Yes, sure. Thank you for the question. First of all, I would say the need will not change. When we look at all the data over the years and spend time with customers, 1, they really strive to get access to the money that they have earned, whether it's a tax refund, whether it's their week to week paycheck, they really would love rather than getting that money on Friday, they'd love to get access to it on Wednesday or rather than waiting 2, 3 weeks to get their tax refund after they file their tax, they'd love to get access to that money right away. So that need hasn't changed.
It's become a lot more acute given the current environment, but the need hasn't changed. The other need is you know, consumers don't really know if they're applying for a credit card, if they're getting that credit card at the best rate or if they go and buy a car, if they're getting they're mainly negotiating the monthly payment of that car, but never focused on how much interest am I paying. When they're getting insurance, they really are focused on just that insurance provider and whether or not that fits their needs. And so they don't have the power is not in the hands of consumers. And that's that need and that problem has been the case for years.
And so the reason we shared the vision that we did today that Credit Karma is going to propel is really we want to put the power in the hands of the consumer. We want them to be able to get early access to that paycheck without having to pay tons of interest. We want them to get access to their refund earlier without having to pay a ton of money. We want to be able to offer them multiple different financial product choices if they have a need, whether it's personal loans, credit cards, home and auto insurance and loans that's right for them. And ultimately, if they actually just need expertise and help on a click of a button, they can chat with 1 of our experts or have the expert come on their phone just like you see with TurboTax Live to provide insight.
And so those needs haven't changed. This environment is significantly propelling it, which is why we felt like we needed to speed up our time to market. Although we've made tremendous progress with Turbo and Mint, we felt like we had an opportunity to really accelerate our innovation. And so when we come together with Credit Karma, what we bring together is the combination of our data, which is our customers' data that will allow us to accelerate innovation, all of our money movement capability and our risk fraud capabilities, which actually allows us to give early access to your paycheck or your tax refund. And we have experts that we can bring on You're bringing just an incredible amount of customer data together to put the power You're bringing just an incredible amount of customer data together to put the power of the data in the hands of our customers and 2 brands that customers trust so that we can put the power in the hands of the customers.
And more acutely to your question, I think this environment has made those needs much more acute, which is why we're so excited about the possibilities as we look ahead to closing Credit Karma and then ultimately what we'll be able to deliver for consumers. Thank you. Thank you. Kim, back over to you.
Great. Thanks, Sasan, and thank you so much, Darren. Next, we'll go to Keith Weiss. So while we bring you up, Keith, I'm just going to remind you to please unmute your line and turn on your video. We'll give Keith just a minute to join us.
Okay, Keith, go right ahead.
Thank you. And again, echoing the thanks for hosting this event, another great event by you guys. Sasan, a question for you on sort of the commerce play. It seems to be sort of a big new introduction of what you're talking about today. Can you help us understand how you're thinking about the competitive environment there?
Because we hear similar kinds of kind of back end stories being pulled by the de commerce vendors like Amazon's given fulfillment and invoicing, Shopify. And those guys have a ton of momentum in the marketplace. They have huge customer business, small business. Is this competitive? I mean, it has to be in some way competitive to what they're trying to do, number 1.
And number 2, where do you guys see the differentiation and sort of working into it sort of carve out a role for themselves in there?
Yes. Keith, first of all, great to see you and glad you're safe and sound. Let me start with an example, a parallel example that we've been executing on our platform for years and then I'll focus specifically on your question. When we talk about this notion of solving our customers' problem and specifically the area of getting paid and this essence of the fact that we are an open platform. When you look at our platform, we've got our own payment capabilities.
We've got PayPal on our platform. We've got Square on our platform. And the reason we do is because we want to ensure that small businesses can get paid the way they want to get paid by their customers. And we don't think about it from the mindset of well PayPal and Square, there are days that we compete with them. We think about it in context of we want the customer to be able to transact on our platform because eventually all roads lead to QuickBooks.
You have to be able to stay compliant. You have to be able to do your accounting, which is by the way why we now have an expert with QuickBooks Live that can be there along the way to help you. And so that has worked very well for us over the years. And yes, there are days where we may be competing with Square and I could say the same for Augusto, Payroll. We have them on our platform.
Many days where we compete, many days where we don't. So our mindset is this is truly about an open platform focused on the customer problems that we've articulated to get customers to use our platform to run their business because then we can leverage all of that insight and data to deliver more innovation for them. So I wanted to start with that parallel example because it's very real. We've been executing it for years. The same applies here.
Ultimately, we have, as you heard Alex talk about, we actually have a 1,000,000 product based businesses and our focus has not been product based businesses. We've primarily been focused on service based businesses. And our customers, especially in the last couple of years, have talked to us a lot about, hey, I'm using QuickBooks, but I want to be able to serve customers on multiple different channels. I want to be able to use different POS providers, but ultimately I want to be able to do all of this on your platform. And so we've got a lot of customers that have given us feedback and ultimately we are now at a point in our journey where we were prepared to really declare going after product based businesses to serve them because ultimately they're going to use QuickBooks, but we want them to use QuickBooks as a source of truth for their business and not just the source of truth for their books.
And so therefore, just like payments, we're an agnostic platform. We actually have as part of this launch, Shopify is on the platform. And really our differentiation is we're not just trying to be a channel for you. We're simply focused on your needs. We want to help you get set up on multiple different channels.
Amazon is one of our partners. Shopify is one of our partners. And ultimately to help customers with order management, inventory management to make it easier to use QuickBooks. So there will be days when we are competing with some of the players that you mentioned. And there will be days where we are partners just like in payments.
And so it gives us the opportunity to really serve these customers more broadly, be able to really play in serving product based businesses and be able to expand our services and ultimately help some of our partners. So that's the way we think about it. It's been a very successful strategy over the years and we believe it's going to work very well based on the 18 months of planning that we've done and the launch that we just shared. We believe it will be equally as successful because ultimately our focus is the customer.
Excellent. That sounds great. And if I can sneak in one follow-up, just on kind of the overall kind of philosophy that you guys are talking about today. I mean, I feel like the Intuit story for a long time, especially within QuickBooks is, there's a huge market opportunity out there. A lot of small businesses that don't use anything, right, for small business accounting and a ton of new customers to come go after.
It seems like we're shifting a little bit today towards more so higher value of the solutions that we're selling to those customers, whether it's QuickBooks Advanced,
sort
of
a broader commerce play or is am I correctly sort of picking up this shift that it's a little bit less of a focus on just going out there and getting as many new subscribers and many new customers as we can and more of a balance or maybe even a shifting towards higher value solutions for those existing customers.
Yes, Keith, I would say you nailed it and it's an end. In the past, you nailed it in that, if you wind the clock backwards and you think about the way Alex kind of walked through the story today, we were in essence very satisfied to serve customers from an accounting perspective. And really it was just do it yourself accounting. And over time, we built some of the payments and payroll capabilities. When you look at us today, we've really expanded our services to ensure that the customer can run their entire business on our platform.
So we're interested in those that are new to the franchise and getting new customers. But now we have the capability based on all of our front doors to actually serve customers that have no employees all the way to 100 plus, both service based and product based businesses. And then we've expanded our services with things like QuickBooks Live, QuickBooks Payroll, full service. And so we just have a gamut of front doors and services. And I think that's critical if you're going to play in the cloud.
You have to be able to have those services to serve customers. And our very strong view is you have to be an open platform, because you don't want to corner a customer to only use what you have, but to ensure that you're truly customer friendly because if you are and they're using other apps, they'll choose to transact on your platform more than others because you're serving their needs. So I would ask you to think about it as an and just to put a bow around it. That's why we wanted to give you a formula. For years we've given you a formula in tax, right.
It's been IRS growth, category growth, our share growth and then ARPC gives you the long term expectation of 8% to 12%. Here we wanted to give you a formula that 10% to 20% customer growth, 10% to 20% ARPC growth because of all of our services will lead to the 30% plus growth. And that's mapped to the strategy and the way we're kind of executing our innovation. So hopefully those that's clear.
Excellent. Super helpful. Thank you.
All right. Great to see you. Okay. Pam, back to you.
Thank you, Sasan, and thank you, Keith. Next, we'll go to Scott Schneeberger. Give him a minute to get over. Hopefully, he doesn't get stuck this time. Great.
Good to see you, Scott.
Go ahead.
I guess, I have 2 questions. First one is on in the consumer segment, in tax, The last 2 years have been really nice growth revenue per return reiterated today about 3%. Curious if you can just compare and contrast how that will come via rate versus TurboTax Live penetration, because obviously on the paying customer chart that Greg had, I think it went 80% to 89% to 97% now on average revenue per return. Just curious how those break out going forward? Thanks.
Sure. Very good to see you. Yes, first of all, if I could just start with, our focus is 1 on under penetrated segments. It's those that are investors, Latinx and self employed. And then there is the assisted segment, which you heard Greg talk about, you know, there's a $20,000,000,000 TAM, it's 86,000,000 customers.
And based on the research that we've done, well over 70,000,000 customers are actually willing to switch as long as they have confidence that their taxes can get done with an expert in the comfort of their home or office. And so as we think about growth moving forward, we see the growth in those two buckets. It's going after the underpenetrated segments. And those underpenetrated segments are both do it yourself and do it for me or with me. And of course, the vast majority of the opportunity and growth is with TurboTax Live.
And so I would just say that that will translate into probably more ARPC growth over time because we're going after a segment where they're actually paying more for their taxes and we have we deliver more value and we have more pricing power. We've not shared the specific mix that you should expect. I think the big thing to just expect is as you look at our growth, it will come from category growth, share growth, share of the total IRS bucket and also ARPC growth just because of our TurboTax Live platform and the fact that we're just getting started. I mean our growth is incredible, but the penetration is very low. So we believe this we've got a 10 year runway here.
Great. Looks like Scott continues to have a few problems. So thank you so much for your question, Scott. Glad you were able to get it in. Next, we're going to move to Brad Zelnick.
So we'll promote you Brad. Just take a minute to do that and then please turn on your camera and unmute your line.
I like the idea of getting promoted to the Zoom room.
Yes. It's pretty cool.
Oh.
Hey, sorry about that.
You're on, Brad. Please ask your question.
Excellent. Thank you so much. What a great day. And it's one I look forward to every year and covering into it. My question is for Michelle.
Michelle, you talked about driving faster core margin improvement near term, and which I think you attributed to your platform approach with investments such as innovation and AI really paying off. If I think of that in the context of your principle of allocating capital to the highest value opportunities with a 15% IRR hurdle over 5 years. Should we think about this as seeing stronger IRR or more a compression of the time horizon of the investments you've made? And maybe related, how do you handicap the IRR on longer duration projects like the investments and the best that you're making in AI long
term? Brad, since they have assigned me as the quarterback, let me get started. I'll start over to Michelle, so they can then Kim can bring her in, so she can answer also your great question. Brad, the way I would think about it is we are now simply starting to get platform leverage. And truly, I know you've heard us talk about this the last couple of years, we are truly getting started.
When you think about our virtual expert platform, where it took us years to build out TurboTax Live, it took us months to build out QuickBooks Live and literally weeks for Mint Live or you look at all this money innovation. Alex didn't even talk about some of the incredible innovation that's going on in payments because we didn't have time for it. We let Ronnie get the room for talking about QuickBooks Cash. But QuickBooks Cash, the same day instant payments or instant deposit, same day payroll, this is all using our money movement capabilities, which is about risk and fraud. And so the reason I wanted to just refresh us on those two examples is we're just getting started to get leverage in terms of building things once and then innovating on top of these services, which is really what gives us the opportunity for margin expansion.
We're just going to get a lot more leverage for the investments that we're making. The other is what you said, it's velocity of investment to innovation to turning into revenue and ultimately operating margin. This past year, our innovation accelerated 3x compared to the year before. And our view is we're not even close to being at our best. And so the faster you code, you put that code in production, you get data to optimize and then release it at scale, the faster you're going to get a return on that investment.
So it's both platform leverage and it's just time to market. And those 2 combined is really what gives us the ability to expand margins over time. But I think more importantly, for us, it's all about growth. So we want to get the customer growth and the revenue growth and the margin expansion will come with it. Michelle, would you like to add anything based on what I just shared?
You did a great job, Sasan. The only thing I would say is that Brad, yes, our financial principles still play. I mean, we're still focused on driving organic revenue double digits. And of course, as you mentioned, our target of how we invest in the highest yielding opportunities. We're still targeting the 15% ROI over 5 years.
Other than that, I would say, Sussan did a great job there and we're continuing to look for ways that our platform can help us drive accelerated growth, especially as we are investing in the 5 big bets.
So thank you.
Thank you so much both of you and really appreciate the thorough answer.
Great to see you, Brad. Thank you. Likewise.
Okay, great. Thank you so much, Brad, for your question. Next, we're going to go to Brent Thill. And as he is promoted up to the Zoom room, I just wanted to share, we have a quite a few questions that are remaining in the queue. We'll try to get to as many of those as we can.
Okay, Brian, you're up. Go ahead.
Thank you. Sasan, my question is around pace of innovation. It really feels like you're on offense. I don't know if that's Michael Jordan behind you, but you feel like you're running like Jordan. Maybe if you can just talk to in the last 15 years you've been at the company, have you seen a period, at least for many of us that have covered you that long, I don't think we recall a period where we've seen this level of innovation.
So if you could just give us a sense of where you're at? And I've got a follow-up for Michelle.
Sure. Well, first of all, that's Kobe Bryant behind me. I'm a big Lakers fan, but I stand on the shoulders of my team. They're actually the ones that are leading this incredible company and I just happen to be the talking head on this call. The reality, I would just tell you that we are standing on the shoulders of many prior to us that have built some of the foundations that we're now simply accelerating.
And the accelerated innovation is very, very real. I give a lot of kudos truly to this team and those that you heard today from Mariana and Mark that are truly focused on solving the problems in a way that's focused on not only being a platform, but also ensuring that we apply AI because the other element is our AI models into production are up 50% year over year. And again, we're just getting started. And the second is just the boldness of our general managers to focus on the customer being the compass and having the courage to push us to be bold to deliver for customers. So it is just simply years of building on each other's foundation that now we're starting to experience this innovation.
And we're just we're asking ourselves to be more courageous. We're asking ourselves to be much more customer obsessed. We're asking ourselves to set a higher bar. And I think everybody is just stepping up to that bar. But at the end of the day, it's about truly building out a platform and executing on our strategy.
And I think that's what you're seeing here. And I think our innovation is going to continue to accelerate.
Great. And then a quick follow-up to Brad's question for Michelle. On margins, You hit roughly 35% at the end of last year. Many of your software peers that are at scale are above 40. Is that a long term aspiration target?
Do you believe that there's anything that would prohibit you from getting closer to that 40 plus percent mark?
I'll just make one statement. I'll let Michelle jump in. There is nothing that prohibits us. And as I just said, some of the those that we admire that we watch, they've reached a level of scale and building out their platform. We have not yet.
We're just getting started. And as we do, we're just going to be much more effective and efficient in our innovation to drive growth, which means operating margins can expand. So nothing there's nothing that prohibits us structurally to get there as a company. And I would foresee us to be able to accelerate in that area. But Michelle, the question was for you, so I'll let you jump
in.
Yes. I mean, that's absolutely correct. Thanks for the question, Brian. It's really there isn't anything structurally. And as you have seen now with the point of margin expansion that we had in FY 2020 and as I talked about earlier, we specifically see in the 3 different areas when you think about the P and L.
We look at opportunities in technology, in customer success, in go to market, we actually see opportunities in all of those areas to be able to leverage key services and capabilities to really be able to help us expand margins and deliver for our customers as we become more of an AI driven expert platform. So we actually see opportunities across the board to enable us to do that. And we don't have a set goal. We don't have a set cap on margins. It really is about continuing to invest so we can drive customer growth and revenue growth, and then using the opportunity to leverage expand margins across as we become more of an AI driven expert platform.
Great. Thank you.
Thank you.
Great. Thanks so much, Brent, for your question. Next in the queue, we've got Alex Kien. And as we bring him up to ask his question, I just wanted to share we've got about 3 more questions in the queue. So we'll take all of those.
So Alex, you are up. Go ahead and ask your question.
Hey, guys. Thanks for having me. It's Hassan. Great job today, as well as everybody else. I guess a lot of my questions have been asked, but what I'll ask is, you did mention, I think in the previous remarks, has seen continued improvement in core metrics since the last earnings call.
And I guess in the demand environment, I'm wondering if you could expand a little bit about how close we are to a full recovery, where are the kind of key risk points incrementally from here? And then as you look at kind of, let's call it, lapping the peak impacts of the pandemic on the underlying business. When you think about the growth contribution margin of your Big Bets, where kind of how do you stack rank them in terms of impact?
Got it. Got it. Very good to see you again. Let me parse your I think there's 2 elements of your question. I think the first one is, we look at the data on a weekly basis and the recovery is very different by state and by industry.
So I of course shared aggregate data, but for instance in places like New Jersey, Arizona, Georgia, those states are actually recovering much faster when you compare them to states like New York, California, Michigan, where the recovery is actually slower. So that's at a state level. And then when you look by industry, as you can imagine, industries like fitness, education, restaurant is actually recovering much slower than industries like computer, software, bookkeeping, landscaping, etcetera. So it's different by state and it's different by industry. And I think it's just as it's a really a result of the virtual world that we live in and what's open and what's not.
And so I think and that's what's driving the shift by the way to a virtual world and to the cloud, because ultimately these small businesses are really trying to survive and they're just very, very scrappy. So I think as we get through this health crisis, what we would foresee because it's watching the data on a weekly basis is that the states will become more even, the industries will become more even. But I think the way they'll do it will be very different. It will be more in a virtual world, online world and more focused on money and cash flow, which is that's where our bets and our innovations that you are today are really focused. I think the second part of your question, we talk about our bets as 5 bets and we talk about them separately, but it is truly incredible how interconnected they are.
Revolutionizing speed to benefit is actually the core thrust to everything that you heard today. It's all about data and it's all about AI. So it just runs across all of our bets and our core innovation priorities across the company. Connecting people to experts is not only helping customers virtually to get their taxes on or to run their business, but also those that may need financial advice. Now when you think about disrupting mid market, we see some good usage of QuickBooks Live with our mid market customers in conjunction with QuickBooks Advanced.
So there's just an incredible connection between these bets, which is actually what makes them powerful because they're really focused on what matters most to our customers. And I wouldn't distinguish between which ones will give us more leverage and which ones won't. They work so well together and so focused and core to our customer problems and all based on a platform play, which is why we treat these vets as they all have to be resource to win. It's the top focus of myself and the management team and we review progress with our top Vice Presidents that own input goals for these bets every single month to ensure that we can make consistent progress against all of them. So that's the way we think about it internally.
I would say the leverage comes from all 5.
Perfect. Thank you guys so much. Congrats on a great day putting this together.
Thank you.
All right, Ken.
Thanks
so much. Thanks, Hassan, and thank you so much, Alex. Okay. We're on the home stretch. We're going
to get a couple more
of you in. Really appreciate all the engagement and the questions. Next, we're going to go to Josh Beck. So Josh, as we bring you over, please remember to unmute and turn on your camera. 1 minute for Josh to join.
Okay, Josh, go right ahead.
Thank you so much for doing this day. It's been incredibly helpful. I wanted to go back to the QuickBooks Cash product that stands out to, I look over time, one that really has a lot of potential. So when you think about how successful you've been with some of the other products, for example, payroll, payments, is this the type of product that has that type of ceiling or is it maybe more something that is adjacent? We'll love
you. Sure. Well, first of all, great to see. I'm going to turn this over to Alex and Anova, but I just want to start with sort of a couple of underlying points. One is all the services that we've been building over the years around our money movement capabilities is what QuickBooks Cash sits on.
So the capabilities that we built over the years that enables payments, enables payroll, enables QuickBooks Capital, enabled how quickly we were able to move with the Paycheck Protection Program. We have all these capabilities that really allows us a lot of leverage when it comes to innovation and what we can do because of the fact that we have a lot of data that it's our customers data and a lot of machine learning capabilities that allows us to innovate very fast. I think the second thing is, and this is where I'm probably feeling Alex's thunder. So Alex, you got the floor after this. We just we see unlimited potential here because it goes after the core problem that matters most to our customers, which is the one place where I can manage my cash.
My money comes in, my money goes out. My accounting is getting done for me and it's connected to the ecosystem, which is what we've been investing in for years. So for us, there isn't a limit of could it be as big as a payments or payroll. We actually think it leverages and it stands on the shoulders of these capabilities to solve the problems for customers. But let me let Alex build on this please.
So Alex, go ahead.
Thank you. So thanks, Hassan. So just to echo that, we hit on 2 things. 1, right where you were just now on the customer problem. Our customers are trying to solve money in and money out challenges and ultimately that leads to cash flow.
And what's so exciting about cash, you heard Rania talk about it, is this is really hitting at the core of how do we get their money into their hands faster, how do we make it drop dead easy for them to hang on to their money longer, understand how to pay their bills, make their payroll, get access to capital when they need it the most, and actually reduce all the friction of what they're doing now, which is multiple accounts, multiple entries into ultimately into their bookkeeping and trying to manage a cash flow headache. So we're really excited because it solves a key customer problem. From an opportunity standpoint, it is also dead in line with our strategy to shift from being the source of truth for your books to the source of truth for your business. Just to put that into context, we have over a couple of $1,000,000,000,000 of money that's entered into QuickBooks every year, either as a money in or a money out transaction. And then our history, that's been great for us.
We have been the source of truth for your books. We've been there to reconcile those transactions. But that's extra friction. That's added work for our customers to be able to put all that money in. What QB Cash does is it unlocks us and puts us in the middle of those transactions.
And so from an opportunity standpoint, we think, we're we're sitting on a real opportunity to make it drop dead easy for that money come in, the money to come out and us to do your books automatically. So unlimited opportunity there and excited to see it scale. Sasan?
Thank you.
Yes, that's great. Certainly, it seems like a very timely product launch with everything that's happening. So again, Steve, thank you. I thought it was an excellent day.
Thank you. Very nice to see you.
Thank you. Thanks so much. Next, we're going to go to our last question for the day, Dan Jester. And thank you again everyone for all of your questions. Really appreciate them.
So we'll give Dan a minute to join us.
Great. All right. Well, thank you, everyone. Thanks, Kim, for squeezing me in. I really appreciate it.
I think maybe just to double click on that last question from a different angle. I think in Alex's presentation, he talked about
sort
of client growth at the very low end of the average revenue per customer and that slowed very meaningfully relative to sort of the client growth for higher ARPC customers. So how deliberate is that versus sort of the economy? So that's question number 1. And then question number 2 is when you think about innovation, where to invest incremental innovation dollars, do you think about sort of targeting your customer base and seeing all the opportunities sort of that mid market level or are there more opportunities for the down market or do you think it's across the entire portfolio? So maybe just
a couple of questions. Thanks.
Yes. No, very helpful. Thank you for your question. I got I was so focused on the second part of your question because our air conditioning came on and I couldn't hear you that I forgot the first question. Can you repeat your first question again?
Sure. So just in the earlier presentation, you broke out customer growth by ARPC over the past year and it was much faster at the higher end.
Oh, right.
Lower at the lower end. So how much of that is deliberate versus how much of that is just the economy?
Yes, very helpful. Thank you. Welcome to the world of working virtually. I never thought I couldn't hear questions because of our air conditioning. I would say it has very little of anything to do with the economy and everything to do with intentionality of the fact that we now have just a gamut of services that we provide and we're in essence increasing our wallet share.
And so if you remember when I walked through our 7 performance drivers, one of the things I articulated is I believe and we believe that we can get better at even more innovation and increasing wallet share. And I think that's what you are seeing here. And in fact, we believe that when the economy bounces back to pre COVID levels will actually be in essence a tailwind. So that's one element of how we think about it. I think the other is all the areas that we are focused on around our 5 bets and how we then very intentionally and choicefully go to market.
We truly believe they are all critical. The good news is we don't have 100 priorities. We have 5 bets that we focus the entire company on and how we choicefully focus on innovation, how we choicefully focus on investment levels and then how we think about our go to market, both new customers and existing customers is really focused on the bets and the customer problems that they go after. So that's the approach that we use and the way we think about it and I think this is something Mark said earlier. We've been working on these bets and these innovations for more than 18 months and it just so happen that some of them are hitting at a time that customers need it most.
And we just believe as we look ahead, it's our obligation to help customers when they need it most. And I think we've got these three trends, shift to virtual, a shift to money matters more than ever and a shift to online and omni channel that just will be a tailwind for the company as we look ahead.
Great. Thank you very much for the event guys. Appreciate it.
Thank you. And Kim, if that was the last question, maybe I'll go for close, but I'll need to get a head nod from you. Was that the last question?
That was the last question. It's all you.
Okay. Well, I would tell you, I can't thank all of you enough on behalf of our entire team for hanging in there and making it through Q and A. We know it's harder in a virtual environment to hang in there in front of your screen. So thank you very much for your time. Thank you for all of the questions and we look forward to seeing you in the very near future and please be safe and stay well.
Thank you very much. See you later.