Good morning, and welcome to Intuit's Virtual Investor Day. My name is Kim Watkins. I'm Vice President of Investor Relations. We really appreciate you taking the time to join us today. We have a great event planned for you.
Sasan will kick off and walk us Through progress on our AI driven expert platform strategy, then we'll head to a platform immersion experience to help you more deeply understand our strategy and latest innovations. I'll share more about what you can expect in just a minute. Then we'll take a short break and then you'll hear from Alex And Greg will take a deep dive into our small business and consumer groups. This will be followed by Kenneth Lynn, the Founder and CEO of Credit Karma, who I know many of you are eager to hear from. And after Michelle wraps up with a financial perspective, we'll have live Q and A from the sell side analysts.
And anyone else can submit a question online using the Submit a Question button. Please reach out to someone on my team if you have any issues. I also want to mention that we posted 2 pre recorded videos on our Investor Relations site that you won't want to miss. One is Laura Baloche, You heard from last year and she'll provide an update on our corporate responsibility strategy and how it intersects with our business strategy. The other is Sheldon Cummings, our Chief Diversity, Equity and Inclusion Officer, who discusses our approach to DEI.
Sheldon has been a frequent participant in our past Investor Days as a member of our sales team, so I'm sure he will be a familiar face to many of you. We included both speakers after hearing questions on these topics from many of our investors. But before we get started, the part everyone loves, the forward looking statements. This presentation contains forward looking statements. There are a number of factors that could cause our results to differ materially from our expectations.
See the section entitled cautions about forward looking statements in the accompanying appendix for information regarding these statements and related risks and uncertainties. You can also learn more about these risks in our Form 10 ks for fiscal 2021 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 statements. The presentation includes certain non GAAP financial measures. See the section entitled About Non GAAP Financial Measures in the accompanying appendix For an explanation of management's use of these measures and reconciliations to the most directly comparable GAAP financial measures. In this presentation, you may also announce plans or intentions regarding functionality that is not yet delivered.
These statements do not I represent an obligation to deliver this functionality to customers. Some members may not agree with some of the components nor with the SEC filings due to immaterial routing adjustments. Financial results are reported under ASC 606 unless otherwise noted. As I mentioned, after Sasan's comments, we'll have a virtual platform immersion experience with the goal of helping you more deeply understand our strategy. We'll be showcasing our 5 big bets and how we're leveraging our AI driven expert platform to solve our customers' biggest pain points.
The experiences are hosted by senior leaders, including many members of Sison's staff, and we've done our best to make each session interactive in a virtual environment. I'll be back shortly to provide additional information for what you can expect. And with that, let's get started. I'll turn it over to you, Sasan.
Thank you very much, Kim. Well, good morning, good afternoon and good evening. To everyone around the world, welcome to our 2021 Intuit Investor Day. I am delighted to be with you today and very excited to share with you Our growth plans across the company and give you a sneak preview into some of our platform innovation that's delivering exceptional benefits for our customers. I will start by talking about the company at Game Plan.
Now as most of you know, we have 38 years of an incredible foundation and experience that has allowed us to reinvent ourselves and disrupt the industries that we play in. And early in 2019, we built on that foundation and declared bold 2025 goals, we refreshed the company's strategy And we declared 5 big bets. And all of those are intended to accelerate growth for the company as we look at the next 10 plus years. Now our 38 year history and our performance has landed us in some of the best places to work. It's demonstrated the strength of our culture, we've accelerated our customer growth and created tremendous shareholder value.
And 2021 was a great year where we beat on every key metric that we communicated to all of you. Now we're very proud of our progress, but I'd love to talk to you a little bit about our reflections beyond the numbers. This is something that I share with our Board of Directors and it's something that we walk all employees through. And these are 7 dimensions that are very important to us, where we talk about where we've made tremendous progress and where we have room to improve. I'll start with what matters most, which is the strength of our culture.
We have engagement score of 85, which is best in class. We have a belonging score of 88 plus And we have been able to retain our employees and bring on exceptional talent into the company. The area where we need to improve is we set Some bold diversity goals for ourselves and we fell short of those diversity goals, but it has informed our plans as we look ahead. We have tripled The number of innovations for our customers across our platform and not only tripled the innovation across our platform, We actually have more new ideas today than we did this time last year. And we view our innovation across horizons, horizon 1, 23.
Horizon 1, simply put, is innovations that will deliver for our customers between 0 to the next 18 months. Horizon 2 is 18 to 36 months and Horizon 3 is 36 months plus. We are very pleased with our progress across All of those horizons. Of course, as we look ahead, we want to do a far better job of ensuring that every innovation that we deliver, Delivers unrivaled impact for our customers and that's where we expect more progress from ourselves. One of our True North goals His goal is around making the communities around us a better place.
It's about job creation, job readiness and improving climate. We had an exceptional year where we beat all of our goals. Across distressed communities, where there's great talent, but not enough opportunities, we've created more than 6 1,000 jobs. We trained over 360,000 students and we are 2x carbon positive. Now the opportunity to get better is simply doing more of what we are doing.
For every dollar that we invest, it has $2.02 Impact locally in the communities that we serve. On the platform front, data, AI and services is reinventing and fueling all of our innovation. We are modernizing all of our technology. We're ensuring that our customers never have to lift a finger so that the data is there that they need to run their business, do their taxes or achieve financial freedom. And in fact, this year, we've increased by 50% the number of AI models that we've deployed to fuel our innovation.
That's on top of 2x Last year. And the amount of code that our developers deployed this past year is up 4x compared to the year before, Significant progress. So for us, it's not just about the technology and speed as we look ahead to get better. It is about creating a culture of speed. In fact, We just had our Intuit Leadership Conference, where we spent 2 days with all of our directors and above, talking about how we create a culture of speed, Because speed is a leadership decision and it's an area where we believe that we are better today than we were a year ago and will be better a year from now than we are today.
Our 5 bets are durable bets that will continue to contribute for our customers and contribute to growth even 5 to 10 years from now. We're very pleased in terms of our progress across all of our bets. First of all, for each bet, one of the things that we do at the beginning of each year is we agree on input goals, The key things that we want to deliver for each of the input goals. This past year, not only did we make tremendous progress against all of our bets and you'll see this in some of platform Immersion later today, but 70% of our input goals were green. And we actually liked the fact that 30% were yellow and red because We set a very high bar for our deliverables and we'd rather shoot for the stars and fall a little bit short to inform our game plans looking ahead.
Now the opportunity areas for improvement, our big bets, we have grand visions. We have big plans. And we have an opportunity to continue to improve the adoption of each of our products that we innovate on our platform And to do that at such a speed so we can increase our TAM and ultimately achieve the grand visions that we set for each of our bets. We had a great year when it comes to customer growth, net promoter improvement and retention in a very, very tough environment. At the same time, we believe we have an opportunity to increase our wallet share.
For instance, we have 14% revenue share in tax. We have an opportunity to increase our payments and payroll penetration.
And we
have an opportunity to continue to improve our penetration Outside of the U. S. With Cookbook's platform and those are the areas that inspires us for our future actions. And last but not least, we had a very strong Financial year on top of a strong financial year the year before and we believe that we are now positioned to accelerate And potentially even go beyond the 2025 goals that we've set for the company. So as we look back, we're very proud of our progress.
We know where our opportunities are and we're very bullish about the future. Now the best place to start when we talk about the future is our customers. We galvanized the entire company around the set of customer problems that we want to solve about 3 years ago. We believe that everyone that we serve behaves like a consumer. They're trying to make ends meet.
They're trying to save money and they're trying to get out of debt. And those that chose to be entrepreneurs and go into business for themselves, they have an additional set of needs. They're trying to get customers. They want to get paid for their important work. Businesses look to access capital, take good care of their employees and ensure that they are compliant.
These are the problems we've galvanized the And what's important about these customer problems is the only way to truly serve these problems is to actually be a platform. And it positions us to shift from a company that's a platform that only solves tax and accounting problems to a platform that truly becomes the source A financial freedom and fuels your success as a business to power your prosperity. Now 3 years ago, we also talked about Key trends that informed all of our bets. I want to focus on the 3 in the middle. These 3 key trends, These catalysts have become even more of a catalyst in the last 18 months when we hit the pandemic.
We've seen a significant acceleration 5 to 10 years leap forward as more and more people are looking for virtual solutions to be able to run their life. They're moving to digital platforms to be able to access money offerings that will help put more money in their pocket and help them make ends meet. And there's been an acceleration of moving online to be able to run your business or to run your financial life and a shift to an omnichannel world, especially If you're a small business. These trends have been very critical as it has informed our future bets, But it has leaped forward 5 to 10 years. Now in that context, let me walk you through our game plan.
This is very important because we inspire the company relative to the purpose and why we wake up every day all the way to the metrics that we deliver. Our mission is to power prosperity around the world. We focus on ensuring that everything that we create on our platform will in one way, shape or form Power the prosperity of those that we serve, but not just through our products and services, but what we do in our communities to make the world a better place. We are guided by our values and two elements of our values have been changed in years. 1 is integrity without compromise, which is always doing the right thing when no one's looking And we care and give back, which is making the communities around us a better place.
But about a year ago, we refreshed our values And it's the 3 in the middle. It's to really rewire the company to become even a better version of ourselves, to be more courageous in the choices that we make, To deliver unrivaled customer benefits in everything that we do and bring the power of all of our partners and employees By focusing on diversity and inclusion, which is being stronger together. And in that context, we also declared bold goals for 2025. Now this for us is about dreaming big. It's about reaching for the stars.
It's about doing things that we never imagined possible. And we set goals such as anyone that's on our platform, we want to double their household savings rate and we want to improve the success rate of Small Businesses by 10 points better than industry. We want to be one of the most reputable companies that our customers and our employees and our partners admire. And last but not least, we want to ensure that we have a platform that accelerates growth because of what we deliver for our customers. Now these big dreams inform very specific tangible True North goals.
There are two elements of our True North goals. 1 is it's for stakeholders And it's in this order for a deliberate reason, we focus on creating an incredible culture with incredible talent that delivers unrivaled benefits for our customers, Makes the communities around us a better place and ultimately exceeds shareholder results. The other is these goals are both short and long, 1 3 year goals. And it's what I, my team and the whole company is held accountable for and we have key metrics across all of these goals that you see. We have a very clear strategy to not only deliver against these goals, but to deliver for our customers.
And there are two elements of our strategy. One, it's about creating a platform that singularly focuses on putting more money in the pocket of our customers with total confidence. It's about being an AI driven expert platform. The only way to solve the customer problems that I talked to you about earlier is to be a platform And to be an open platform where us and others build on our platform to ensure that customers can transact and run their business or their financial life on our platform. And the more customers interact with our platform, the more we can take their behavior, learnings and data and apply AI and accelerate Invention and Innovation.
And last but not least, do that with experts on the platform digitally, AI driven expert platform. Now in context of the refresh strategy that I just walked you through that we declared about 3 years ago, we also declared 5 big bets. And I will just remind you that these big bets go after the largest customer problems where we believe we can make the biggest difference And 5 bets that fundamentally will accelerate the growth of the company. And these bets Again, position the company from a platform that's a tax and accounting platform to a platform that is truly an end to end platform Where a consumer and small business can run their life on our platform. Let me quickly walk you through the big bets.
The first one is about revolutionizing speed to benefit. The big problem here is that customers need data and they do a lot of work to get to the ultimate benefit That they are looking for. And this is a data and tech bet. It's about ensuring that a customer never has to lift a finger and all their data is available for them And accelerating the application of AI so that we can put more money in our customers' pockets and doing it with total confidence. The second bet is about connecting people to experts.
One of the largest customer problems that's unsaid is confidence. Those that we serve and the spaces that we play in look to experts to help them, whether it's financial advice, whether it's to get their taxes done, whether it's to run their business. And our vision is to have a virtual expert platform on top of a very powerful digital platform, Where you can access an expert to help you run your life and run your business at any time in which you need it. And we have a grand vision to move beyond spaces that we are in today like Bookkeeping, Accounting and Tax. Our 3rd big bet is about unlocking smart money decisions.
This goes after the customer problem of making ends meet. Our vision here is to have a platform where we can connect you to any Financial product that's right for you, to find ways to put more money in your pocket and give you expertise, insights and advice, So on our platform, you can achieve financial freedom. Our 4th big bet is about being the center of small business growth. 50% of businesses go out of business after 5 years. The majority of businesses, more than 2 thirds, Their biggest issue is actually getting customers.
And more than 75% of customers look to be able to run their business and finances in one place. So our vision here is to have a platform that truly is the source of truth for your business, a platform that fuels Your business growth and that just accounts for your business growth. And last but not least, taking our game up market, which we've initially defined As mid market being between 10 to about 100 employees, a platform that is easy to use And is the right price for you and disrupting the opportunity in the mid market. Now these are the 5 big bets that we declared 3 years ago And we have a 10 year plus run with these 5 bets. Now, let me talk about Mailchimp.
We could not be more excited about Mailchimp joining our family. It is an absolute game changer and it significantly accelerates Our vision to deliver against Big Bet 4 and Big Bet 5. Let me just quickly share with you again the biggest problem that our customers face. One, they go out of business after 5 years, 50% of them. The majority of the businesses will cite that getting customers as their number one issue.
And what customers tell us is, I wish I could run my business in one place versus a bunch of different platforms where it's hard for me to understand how my business is truly doing. And it's in context of the vision that I just shared, truly becoming the source of truth for your business, where you can grow your business And run your business in one place, Mailchimp and QuickBooks platform in one. Now, What does Mailchimp bring us? They bring some incredible capabilities and technology that will help us achieve this vision that I just shared with you. They help small businesses take their business online.
They help small businesses market their business and they help small businesses manage They're customers through CRM tools and they have reporting and capabilities like AB testing that is very hard for small businesses to get their hands on. Now you take those capabilities along with the capabilities of QuickBooks, where we can help you do things like estimate, invoice, get paid, Get access to capital, manage your employees and human capital and to be compliant. Now it's about creating one platform that All the capabilities in one place, but here is the real magic. The magic is combining Not only the customer data, but the purchase data that actually gives you real insights as a small business. So now I know Based on who I've marketed to, what they've bought, how many things they've bought, what other things they could buy and actually be very insightful in how I grow my business.
The combination of the data on behalf of our customers truly will fuel their success. Now Mailchimp brings us incredible scale, 13,000,000 plus total users, 2,500,000 almost 1000000 active monthly active users And incredible scale on their platform. They have over 250 partners that are integrated on the platform. And to give you a sense, More than 170,000,000,000 API calls in 2020, almost 40,000,000,000 database queries per month And they have 70,000,000,000 contacts with over 2.2 AI predictions per month. These are impressive and staggering data and they bring scale to the family where we can do things that we never imagined possible for our customers.
And this has resulted in about an $800,000,000 business in 2020 that's growing over 20%. And what really is spectacular is that 60 Net Promoter, it's a subscription business very much by QuickBooks, a highly reoccurring business and over 50% of their customers and revenues outside Of the U. S, where frankly they've spent very little time to achieve those incredible outcomes. That is all of our game In one place from our mission, which is the power of prosperity around the world to our refresh strategy, big bets and the key metrics that we measure. Now, as the company, we talk a lot about life is about 1% inspiration and 99% preparation, it's about how we execute against what we do.
And I just want to share with you a couple of our secret sauces that combined with this very clear game plan allows us do things that we never imagined possible. 1 is CDI and D4D. It's customer driven innovation. It's focusing On the customer problem and falling in love with our customer problems, not our solutions. Figuring out how we can solve those problems well and if we can actually add value to How we solve those problems.
And while we are in the midst of figuring that out, big to small in terms of the number of ideas that we come up with I'm narrowing to a couple of ideas that we then test and experiment to find the biggest problem that delivers undisputed benefit for our customers. The second is our Intuit operating system. It is how we run the company, which is focused on execution excellence. There's an element of it, which is about setting expectations and clarity of strategy. There's another element, which is delivering and transforming experiences for our customers.
And there's another element, which is aligning and inspiring the whole company around what we choose to do to win the hearts of every one of our employees and our partners. And you can see the elements that the mechanisms that we have to run the company and I'll just point to 2 of them. At the top, which is looking 6 years out and looking backwards to see, are we thinking about things that will fundamentally change the world for our customers? So what we do on a weekly and a monthly basis, which is reviewing How we're delivering for our customers, reviewing our input goals and making adjustments as necessary. Now our strategy, our secret sauce And our incredible assets is what sets us apart.
If you look at the scale of customers that we have, especially with Mailchimp coming in, The amount of money that we move, the opportunity that we have to leverage our customers' data on their behalf to put the power of their data in their hands, It allows us to truly create a growth flywheel, because ultimately the more customers we bring on, the more experts and partners will be on our platform, The more we can leverage their data and the more we can innovate for our customers. And this truly allows us to go after a very large TAM where we have secular tailwinds. And this large TAM will be added to when Mailchimp joins the family, will have nearly 300 $1,000,000,000 opportunity to go after, so a very, very large TAM. Now let me share a couple of proof points around the progress that we've made Just this past year. Now when you look at QuickBooks, we have continued to accelerate the growth of QuickBooks, Almost our online ecosystem revenue growth at $2,700,000,000 growing at 26%.
Our ARPC and the focus of the growth of customers with high ARPC continues to grow a large part due to QuickBooks Advance. And last but not least, durable impactful progress in TurboTax, where now we have Another year of 1 point increase from the total IRS share returns, 2, with TurboTax Live growing over 100% And delivering 14% revenue growth. And we continue to accelerate connecting our ecosystem With Credit Karma with over 120,000,000 members, ARPC of over 29% and that's because of the incredible Innovation across the many verticals that they're in, payments over $90,000,000,000 in volume growing over 40% and incredible green shoots with QuickBooks Commerce And QuickBooks Cash. And of course, our game internationally, even in the context of the COVID environment, continues to strengthen With over 30% of our QuickBooks subscribers outside the U. S.
And over 40% growth, we're very pleased with the proof points In context of our strategy and big bets. But I will share with you that we are equally as excited about our innovation across horizons. As I mentioned to you earlier, we think about Horizon 1 as 0 to 18 months, Horizon 2 is 18 to 36 months and Horizon 3, 36 months and above. And what you can see here is we've got incredible innovation. This gives you a little bit of an illustration and a purview of how we think about The impact of our innovations relative to what revenue they will contribute over a certain timeframe.
And as I shared with you earlier, Our innovation is up 2x compared to last year and particularly our ACE3 ideas are also double where they were this time last year. Now you can see under longer term, there are some H3 ideas that we share with you and we've communicated with you, but there are a number that we've not Yes, shared and we will when the time is right. So not only are we delivering proof points today, but we're very excited as we look into the future. And if I could, let me end with where I started. It is our We imagine what we do and reinvent ourselves to deliver Impactful innovations for our customers.
And when we declared in 2019 our refreshed strategy, Our big bets in context of 2025 bold goals, we are rewiring the company for accelerated durable growth, All in service of powering prosperity around the world with both our products and services and what we do to make the communities around us a better place. With that, let me turn it over to Kim.
Thanks, Hassan. All right, we're ready for the platform immersion experience. We'll be taking you through experiences for each of our 5 Big Bet covering our first Big Bet last as it accelerates innovation across our platform and it's foundational to all of us. For each Big Bet, you'll view a demo followed by live sell side Q and A with the leaders in each area after each experience. If you're not a sell side analyst, stay right where you are, there's no need to do anything.
If you are a sell side analyst, please paste down on your agenda and launch Zoom at the beginning of We'll give you more instructions before the Q and A begins. After the platform immersion experience, we'll take a short break. We'll have a countdown
Hi, I'm Mark Notreani, Chief Customer Success Officer at Intuit. And I'm here to talk about our 2nd big bet, connecting people with experts. One of our biggest challenges our customers face is confidence, Whether they're making a decision about their small business or preparing for tax time, when the stakes are high, it can feel overwhelming to manage on your own. We at Intuit are uniquely positioned to connect our customers with the right expert Through our AI driven expert platform. Today, we're going to show you how those experiences come to life in QuickBooks Live And in TurboTax Live.
I'm going to hand you off to my colleague, Areej, who's going to walk you through our QuickBooks Live experience.
Thanks Mark. Hi, my name is Eddie Janshengi and I'm the Vice President and Expert Segment Leader for Small Business. Today, I'm going to show you how QuickBooks Live leverages the power of our AI driven expert platform to deliver moments of truth For common small business experiences. Dana recently started a general contracting business. She's growing fast, but She lacks confidence in how she's managing her business.
Like 40% of small businesses, Dana finds bookkeeping and taxes overwhelming, Which is why she hasn't used accounting software in the past. She's done her research though and she's ready to give QuickBooks Live a shot. Once she creates her QuickBooks account, Zaina answers some basic questions about what she wants to focus on with her bookkeeper And she scheduled the call for later that day. The first moment of truth Is Expert Matching powered by the platform? When Dana joins the call that afternoon, our AI matching algorithm Connects her to an expert.
Erica is a bookkeeper with several years of experience. She knows QuickBooks inside out And best of all, she specializes in working with contractors just like Dana. This gives Dana a ton of confidence. The next moment of truth is where we dramatically simplify data gathering. During her appointment, Erica Geisinga through connecting her banks, which serves two purposes.
First, It triggers automatic categorization through our machine learning algorithm. And second, it automatically pulls in bank statements, saving both Erica and Zena time. Our goal is to eliminate hours of work and build confidence By automating document collection, financial institutions are just one way we do this today and we're already connected to 24,000 of them. We're also eliminating work for experts through automation and artificial intelligence. In the future, Erica and Zena's conversation will be automatically transcribed in real time, giving both of them A great reference tool down the road.
AI will make intelligent suggestions to Erica Based on the conversation and what we know about Xena, such as what chart of accounts Xena should use Or whether Zena might be co mingling personal and business finances. This is the 3rd moment of truth showing how we leverage the platform to deliver effortless collaboration and inspire confidence in Dana. Now, I'm going to hand it over to Mark, who will show you how the same platform comes to life through TurboTax.
Thanks, Arish. Each year 88,000,000 consumers use a tax expert to file their tax returns. With TurboTax Live, we believe we can leverage The same powerful experiences we just saw between our small business and bookkeeper to create an ongoing relationship between our Consumers and our tax experts. For example, Curtis is an investment analyst living in New York City, He travels a lot for work and this can make his taxes pretty complex. Curtis contacts the TurboTax assistant via video call, A platform capability that spans all of our live offerings.
The assistant acts as a concierge, learning more about Curtis' job, Where he lives, his specific tax situation. Based on Curtis' complicated tax situation, the assistant confirms that TurboTax full service is the right choice for him. This upfront dialogue is key to building a deep relationship with our experts and provides the confidence to Curtis That we will match him with the expert that is best qualified to manage his unique tax situation. Here's what happens next. The platform matches Curtis with Enrique, a tax expert who has served thousands of investment analysts.
Enrique has a net promoter score of 95, understands multistate returns and Curtis can see that Enrique Has 20 years of experience. This expert matching is a moment of truth that gives Curtis the confidence He needs to hand over his taxes to someone he trusts. However, there are many life events that happen throughout the course of a year that can have Tax implications, things like getting married, switching jobs or buying a home. Curtis Now has year round access to those experts to ensure that he's planning ahead for next year's taxes. For example, when Curtis' spouse starts a new job mid year, he can reach out to the TurboTax Live team to get help on adjusting withholdings, Ensuring there are no year end surprises as his spouse makes this transition.
This is year round effortless collaboration in action. This year round experience builds confidence and next year Curtis can continue working with Enrique, Which will ensure an even smoother tax preparation experience. In the future, we believe we have more opportunities to deepen our relationship. If Curtis applies for a mortgage through Credit Karma with his permission Enrique can proactively reach out To help with any tax withholding adjustments. As we saw today, our AI driven expert platform allows us to reach more customers, deepen our relationship with those customers and grow our average revenue per customer.
And this opportunity is large with a $20,000,000,000 assisted tax preparation market and a $22,000,000,000 Assisted bookkeeping market. TurboTax Live this season accelerated total customer growth Nearly 100% and new customers to Intuit grew more than 100%. By building this AI driven expert platform instead of point solutions, We're able to leverage its capabilities to solve our customers' most critical problems with speed and confidence. Thank you.
Great. Well, thank you to Mark and Arish for your Big Bet 2 presentation Connects People to Experts. It's now time for Q and A. And so we have both Mark and Arish here. We'll give just a few instructions for our sales finalist who will be asking questions.
Within your Zoom, if you look at the bottom, there's a reaction button. Go ahead and select the raise your hand icon and we'll add you to the queue. Keep in mind, stay muted until we call on you. And once you come over, make sure to unmute both your audio and your video so you can ask your question. Once you see yourself in
the live frame, you can go ahead and ask
So I think we are ready to get started. We do have a first question from Alex Zukin.
Hey, guys. Thanks for the presentation. It's quite remarkable to watch it in action. I guess maybe the first one for me is just As we think about the incremental the average incremental monetization that you're seeing from engage as customers engage with the live platform, What's it doing to the ARPU, both within the QuickBooks product and the TurboTax product? I think you mentioned some of the New customer engagement is driving, but curious what is happening around monetization trends as people use the product?
Thanks, Alex. And I'll take part of that and Naresh, if there are specifics as we talk about QuickBooks Live and what we're seeing there, please Jump in. But what we're really excited about as we talked in the presentation It's definitely a higher priced product and we do drive average revenue per customer. It's our highest based product in our portfolio. But more importantly, what we're seeing is we're seeing attach go up as well as they engage with us, Which is really exciting for our business, not just in consumer group, but also in our small business offering as well.
And then what we see is retention across the entire network, because customers start to get confidence Working with us and ensuring that someone's always got their back in those moments of truth where they have those questions, It creates much more stickiness in the platform overall, whether it's TurboTax or QuickBooks. And we're really excited about new opportunities that we're looking at to even dive deeper into those relationships. So as we build those relationships, we see our ARPU grow through not just the product, but attach and retention. Areej, I don't know if you'd add anything on QuickBooks Live specifically?
Yes, I'd be happy to Mark.
Great.
So with QuickBooks Live, we're in the early stages. Our objective right now is to get to product market fit and we're laser focused on that, but we're seeing some really early promising results. I'll give you one example of what Mark just described And I'll share the example of our QuickBooks Live setup offering. One of the things that we found last year was a quarter of our new to the franchise customers within QuickBooks who canceled or abandoned their subscription did so because they didn't know how to get started and that's something that experts and our AI driven expert platform can help us solve. So we launched QuickBooks Live Setup last year and this year we're seeing a 3x increase in customers using QuickBooks Live Setup And among them, their QBO retention rate, 90 day retention rate has gone up 5 points.
In addition to that, customers who've gone through QuickBooks Live setup I'm much more likely to engage with another expert like those through QuickBooks Live bookkeeping. So we're just as Mark said, we're seeing both retention and attach increased through our live offerings. Great.
Thank you so much, Alex, for the question. We have a next question up from Ken Wong.
Great. Thank you for taking my question. You guys just highlighted a year round experience. Just wondering how will that be priced relative to that single use case That we're used to at the end of tax season.
Yes. Ken, that's a great question. And what we see evolving over time With our products. I mean, I won't get into specific pricing because I think the team is still working through those elements. But what we're really looking at Especially through our full service in TurboTax Live is to be able to deepen our relationship with those customers, so that we can actually Stay connected to them.
As life events happen, in particular, which we know a lot of tax decisions are actually made During the year, not just in that January to April 15 kind of timeframe. And so what we're really excited about is to be able to connect and create that relationship over time, not just In tax season, but between tax seasons and then also when they come back the next year is matching that customer back through our full service offering. It's what we've learned in our bookkeeping. We had to do that in our bookkeeping service. And that relationship becomes really valuable over time as Trust is built and knowledge of that customer.
And so we're still working through all the pricing models and how we'll price products this year. But we're very, very excited. We're running tests through that right now on TurboTax Live. And again, it's all based on what we learned in QuickBooks Live and building relationship between bookkeepers and our small businesses.
Great. Thank you so much. Unfortunately, that's all that we have time for I know some of you have your hand raised. We will have Q and A later as well. Up next is Big Bet 3 with Unlock Smart Money Decisions with Ken and Polanyi.
Hi, I'm Ken Lin, Founder and CEO of Credit Karma. Our third big bet is to unlock smart money decisions. Many consumers don't understand their finances and struggle to make ends meet. We know 77% of Americans feel overwhelmed by their So Credit Karma is creating a personal financial system to help members tackle their challenges by helping them find the right financial products, putting more money in their pockets And providing access to financial expertise and insights. We started out by pioneering free credit scores, but we've evolved significantly over the years.
Today, we're uniquely positioned data platform with powerful network effects that connect members to personalized financial products, Everything from credit cards and personal loans to auto insurance and mortgages. The company is built on trust and relationships with over 100 financial partners And more than 121,000,000 members in the U. S, Canada and the UK. Our goal is to make financial progress possible for everyone, No matter where they are in their financial journey. Let me show you how it works.
From our front door, members can see all of the things they can do on Credit Karma, Customize for them and then take action. They can check their credit scores, view checking and savings account balances, Our review updates their credit report and loan balances. They can take out a personal loan. Credit Karma shows approval odds, So members can see the loans that they're likely to be approved for before applying. Members come to us when they're looking to buy a home.
We help calculate how much home they can afford, get a mortgage pre qualification letter and compare curated home loan offers. We're also an auto hub. We've learned through testing that when people shop for cars, Malone is often an afterthought and people generally just take whatever the dealership offers. That's why we've been testing new integrated features, so our members can see the value of the car they've matched with us, See their vehicle records, buy a car, find the right auto loan And save on our insurance, all on Credit Karma. Members can also view credit card offers based on their unique credit profiles And see there are chances of approval.
In addition to more certainty, we also simplify the application process. We can pre sell applications and even show approvals without them ever leaving our site. In the future, our card partners will allow direct uploading of their cards into digital wallets in real time. We make credit card and personal loan recommendations through a one of a kind proprietary technology we developed called Lightbox. The true differentiator for our platform is allows us to use the same datasets, automated valuation models and credit files that the lenders are using.
As a result, Lightbox more than doubled the average approval rate for credit cards booked outside of Credit Karma. For our financial partners, Lightbox allows them to leverage Thousands of financial and tax attributes from Credit Karma members, so they can find the right customers. It sounds pretty technical, but for our members, it's simple. It means they could be confident that they're getting the right personalized offer for their specific needs. And with that, I'll hand it over to my colleague, Paul Meade to take you through our newest product, Credit Karma Money.
Thanks so much, Tim. I'm Paula Meedimani. I'm the General Manager and Vice President of Credit Karma Money. Credit Karma Money is a savings and checking account with no fees from us. It's really designed to change our members' relationship with money and puts him on the path to spending wisely, saving for the future and building wealth.
So what does that look like? Let's talk about a couple of features. First, we've reinvented the idea of cash back rewards for this category with a feature we call Instant Karma. Every time you use your debit card, you could be randomly refunded that entire purchase. That's rewarding good spending behavior, because you're only spending the money you have that's in your checking account and not increasing your debt.
2nd, Members who deposit their paycheck and credit karma money can access the money 2 days early. 3rd, we can remind our members to make on time credit card payments or even recommend when and how much they should pay. This protects or improves their credit score. Now let's switch gears and talk a little bit about integrations across the Internet platform. Let me highlight a couple of examples.
We know that a tax refund can be a person's biggest paycheck of the year. So it's a good way to start saving. This past tax season, we offered approximately $38,000,000 TurboTax filers the ability to directly deposit their refund into a Credit Karma Money account and access it 2 days early. Further, we know consumers pay more than $30,000,000,000 in banking fees each year. That's why we recently announced an integration between Credit Karma Money and QuickBooks Payroll.
This enables eligible small business employees to have their paycheck automatically deposited into a Credit Karma Money account. We're excited about the progress we've made, But we're just getting started. Longer term, we see the adoption of Credit Karma Money as key to driving our members to visit the platform more frequently. We really wanted to come in every day heaven. Now I'll turn it back to Ken to close this out.
Thanks, Palome. We understand the We will continue to build a personal financial assistant to help them tackle their challenges. It's a virtuous cycle. As we add more offers and add new partners to the platform, the marketplace attracts more members who are highly engaged And take advantage of more offers and products. We're proud of the progress we've made, but we'll never stop working to help our members make financial progress.
We hope you'll download our app and check it out for yourself. Thank you so much for your time.
Great. Well, we are back for Q and A with Ken and Palome. So up first, we have Michael Turrin, you can go ahead and ask your question.
Hey, Ken. Thanks for doing this and nice job you've ever won with the investment analyst example for the first segment, Clearly the right audience for that. I was hoping maybe Ken, you
could just touch on some of
your initial observations around coupling Credit Karma with the broader Intuit ecosystem. Are there Additional product lines, other drivers you see now that can maybe drive member monetization levels higher over time? And if so, What are some of those product lines you've highlighted? Thank you.
Sure. Thanks for the question, Michael. So, first, What we primarily focus on is the member experience and the value that we create for them. And from our perspective, one of the key attributes here It's the data that drives the underwriting and we think there's a huge opportunity. Oftentimes credit is roughly 70% to 80% of the credit decisions for most of our lenders With the other 20% or 30% being income and assets.
And I think that's where there's a huge opportunity. And we think this is fundamentally important because for most consumers and maybe not this Audience, the challenge of getting approved, knowing your credit line and knowing the right product, that continues to be a big issue and oftentimes it's what keeps Consumers are making movements ahead and they're financialized. So that's fundamentally important. But from an integrations perspective, we see a ton of There is over $100,000,000,000 worth of tax refunds each and every year that can go into the Credit Karma Money account. There's QuickBooks Payroll.
I think the list goes on and on and we'll talk a little bit more about it, but we're extremely excited about the opportunity that is ahead of us in terms of both product, but most importantly, what we can On behalf of our members and consumers, both in the U. S. And around the world.
Thank you.
Great. Thank you, Ken. Up next, we have a question from Kirk Materne.
Hi. Thanks very much, Ken. I was wondering just to follow-up on your points there. So how far are we through sort of The data on the back end with you all and Intuit meaning, can your members right now opt in if they're also a TurboTax Client to sort of blend those 2 data fields. I'm just trying to get a sense On where you are in terms of the integration aspects of Credit Karma and say TurboTax today versus maybe a year ago and Where we should expect that to go maybe over the next 6 to 12 months?
Thanks.
Sure. Well, I would say that first, it's Probably more of a journey than it is a destination. I'll just say that there is a continuous cycle of innovation that has happened in the space. But with that said, we've made tremendous inroads in terms of putting together the data and making sure that consumers have a cohesive experience. So I don't know if there's an actual number I can give you, but we're excited about all the data assets that we've put together.
But most importantly, we've already seen Early traction points of the data making a difference in underwriting. And just very simple examples. Income, as I've talked a little bit about, is A hugely important aspect of the ability to determine somebody's eligibility for a loan. And here for the first time, I would think as a form of innovation, We're able to do it in a way that is coming from the sort of tax returns, which might be one of the most unique and maybe consistent and important piece of information. So those are the inroads that we're making.
There's probably 100 and if not 1000 of other data attributes over time that we'll be able to integrate. The key here is, we want to go at the speed that our consumers are going at and also the speed that our partners, our financial partners are going at. And that's the We want to make sure that we're bringing innovation at a rate that makes sense to both of those constituents.
Thank you. Great.
Thank you both. Again, all the time we have for questions for this section. We'll now move on to Big Bad 4, see the center of small business growth with Ramya and Cassie.
Hi, I'm Rania Sukkar, Senior Vice President and leader of our small business money offerings. Our 4th big bet is to become the center of small business growth. Now we know that 60% of small businesses struggle with cash flow. So we have been on a mission to give our customers a unique advantage in managing cash flow With a single place to get paid, pay others, manage money and access capital. And as QuickBooks becomes the center of small business growth, we see an opportunity to help solve problems for the 30% of businesses that are product based.
Last year at Investor Day, we unveiled QuickBooks Commerce. And this year, my colleague, Cassie Devine, is going to walk you through the progress we've made so far. Let's jump right into money offerings. As consumers and small businesses are shifting rapidly towards digital payments, We've expanded the payments tools available to small businesses in QuickBooks. And we started with the very first experience of Business Path as a platform.
This year, we've made accepting payments automatic, eliminating the need to complete an application before getting started. We did this by tapping into our advanced AI and risk capabilities. Once customers start accepting payments in QuickBooks, They can choose to have the funds flow instantly into their QuickBooks cash account and be available to spend on their QuickBooks debit card, Bill pay or payroll. Now a big part of putting small businesses in control of their money is helping automate decisions So they can focus on running their business. So this year, we'll begin to roll out automated money movement within the QuickBooks Cash account.
And our first application will be automated savings for sales tax. Soon with QuickBooks Cash, small businesses will be able to set up a rule to automatically move funds collected for sales tax into a dedicated envelope. Once that rule is set up, QuickBooks will automatically calculate and set aside funds for taxes. That's the power of our ecosystem. The most natural place to organize your money is the platform you're using to run your business.
So we've talked about automated money movement. Let's talk about the work we're doing to smooth cash flow. The root cause of most cash flow problems is the long wait time for getting paid. On average, it's 29 days. So I'm thrilled to share that we designed and launched a powerful new Invoice Advanced feature targeted at solving this problem for small businesses.
Now, when an eligible small business creates an invoice, They can choose to get paid upfront. They'll receive 97% of the invoice value And if the invoice advance is paid back within 30 days, there's no interest or additional cost. We're able to make this offering hassle free as a result of the sheer volume of invoices sent from within the QuickBooks platform, enabling us to quickly assess the risk of each borrower and each invoice. All of this is incredibly exciting, but there's more. We see an opportunity to become the center of growth for businesses at the earliest stages of their journey before they have a need for accounting.
And there's no more important time to serve this segment than now given the high volume of business starts coming out of the pandemic. So we've launched a standalone mobile business bank account called Money by QuickBooks. With this new banking app, Early stage businesses will be able to send professional looking payment requests, pay bills and see insights related to money in and money out. It's all that simple and it's all in one place. So there you have it.
With this sustained investment across Payments and Capital and Banking, we're strengthening our leadership and presence in the financial technology space. And we could not be more proud about the work we're doing to put small businesses in complete control of their money. With that, I'll hand it over to Kathy, who'll walk you through the latest with QuickBooks Commerce? Thanks, Rania. Hi, I'm Cathy Devine, Senior Vice President for the QuickBooks Online Platform.
As Rania said, 30% of small businesses are product In our major markets that translates to roughly 6,400,000 businesses and we only serve 1,000,000 of them with QuickBooks today. More than ever, these small businesses need our help. Getting customers is more important than ever and more and more of those customers are shopping online. However, half of product based businesses only sell in one channel and 36% say they're afraid to open a second channel because of the complexities that it While managing with pen and paper duct tape solutions may have worked initially, it becomes untenable And it makes getting a view of your business performance next to impossible. Let me show you how QuickBooks Commerce makes the complex simple.
Once a customer signs up for QuickBooks Commerce, connecting e commerce stores is easy. For example, connect Shopify in a few clicks And now products and stock levels are automatically pulled into QuickBooks Commerce. When a customer adds and connects more channels, whether it's Amazon, Station or eBay, QuickBooks becomes a one stop shop for managing inventory and orders across all online stores. This saves customers time and provides a full picture of sales and inventory. QuickBooks Commerce is already connected to over 35 of the top e commerce providers and marketplaces and we're just getting started.
Now connecting sales channels is only part of the equation. Many small businesses are using manual methods to manage order and inventory Cross channels which gets in the way of growing a business. QuickBooks Commerce makes it simpler and automatic. Customers can add products and include detailed descriptions, images, pricing and number of units And then published to multiple channels at once, QuickBooks Commerce synchronizes inventory across every store. So if 5 units of an item are sold on Shopify, inventory across all other connected sales channels is automatically updated.
This prevents customers from selling inventory they don't have, which also helps avoid penalties from marketplaces. Orders are tracked in one place, making it easy to manage the entire order lifecycle from payment To packing to fulfillment. In addition to helping customers with their B2C stores, QuickBooks Commerce has a customizable B2B storefront helping customers manage their wholesale business, bringing a process traditionally run by fax, Phone, pen and paper totally online. With QuickBooks Commerce, customers have one centralized hub to see all of their data holistically across channels. They can easily identify which products are selling best and get a complete understanding of revenue.
Soon they'll be able to see which channels are most profitable. Having all of this data in one place means smarter insights to make better business decisions. All of the data in QuickBooks Commerce combined with the powerful insights in QuickBooks Online, not to mention automated taxes and accounting That creates magic because it gives customers a handle on their business they were never able to get before. All of the innovation we've shown you is in service becoming the center of small business growth. We are well positioned to better product based businesses and early indicators give us confidence in our approach.
We are building momentum in our core money offerings, Processing $91,000,000,000 across our payments ecosystem, up 40% from last year. We are well on our way to becoming the source of truth for small business and we will continue to accelerate innovation on our AI driven expert platform. Thank you.
Thank you to Rania and Kathy. Just as a reminder, if you're looking for how to ask a question, go to the bottom of your Zoom, the reactions button and you can just simply raise your hand. We have a question from Brent Thill.
Thank you. The Get Paid feature seems like just a no brainer. It would assume That your customers would stampede into the future. What are the governors? How open are you going to be in terms of opening this up to the broader Installed base, really encouraging to see that feature set.
I love that question. It's an excellent question and an offering we couldn't be more excited about. And you're exactly right about the way we believe that we've already seen customers start reacting to the offering. Now you're touching on a reason that we believe we're uniquely positioned to play in this market and it's because of our ability to open this up widely. That's a unique thing that we can do that others aren't positioned to do.
And it comes from the data inside the QuickBooks ecosystem and it comes from our advanced risk capabilities. And so this year, we expect to open this broadly to customers. We expect to make it seamless and frictionless. So on any invoice, even an invoice as low as $500 They will have access to this offering and in most cases it will be instantly approved and eligible for them to have their account Instantly, soon and within one business day to start. So massive, massive opportunity.
This is also deeply integrated into invoicing, which makes it A tremendous advantage for small businesses. They don't need to go to another place to get the invoice advanced. It's right there where they do their invoicing. So we think not only will this be an offering that we see huge uptake Because it caused a massive customer problem, but it will also fuel more customers to choose QuickBooks to choose QuickBooks for invoicing and to choose QuickBooks for payments.
Great. Thank you, Brent, for your questions. Up next, we have Michael Turrin again with a question.
Hey there. Thanks again. You mentioned 6,400,000 product based businesses versus 1,000,000 using QuickBooks Today, are there other things you can do within QuickBooks with marketing and partnerships that can increase that penetration level? And are there any High level impressions around Mailchimp. You can share on maybe what that could add here as well.
Thank you.
I'm going to turn it over to Kathy to kick us off and then I'll jump back in with Perspectives after she Excellent. There's a lot that we can do to serve product based businesses. There are so many things that we've all been in terms of benefits that we want to give to these customers. And in terms of Mailchimp, I'll let you save that question to ask Alex his presentation, but there are a number of things as we think about solving these problems. One big piece of this is the commerce problem I I talked about and we're going to stay laser focused on how do we help customers open up new channels, sell to the customers that are out of reach today And automate and simplify that entire process end to end.
There are also a lot of tools that these businesses need That might be based on their size. So for example, if you hear Kelly and Bobby talk about mid market, there's a fair bit of the mid market Ecosystems is a product based business. Those businesses can benefit from any of the 3rd party integrations such as At HubSpot or Salesforce, as they go order to cash, they can benefit from the workflow engine and all of that automation. And then just across the board, there are things that we're doing and heard Ronnia touch on sales tax. So a lot of different things that we bring to bear to serve this customer and you'll see us Expand QuickBooks Online in lots of ways.
Rania, I'd love to share have you share any other thoughts on here. Sure. I mean, it all comes down to whether they're product based or service based. We are really working on a connected ecosystem strategy Where 1 plus 1 equals much more than 2. And so, for example, as you use sales tax With payments and banking, we automatically move the money into an account to save.
That's a great offering for a product based business or a service based business. As you use payments and banking, you get the money instantly as opposed to having to wait till the next day, a fantastic offering for product based businesses who have cash flow needs as well. So just touching on that, everything we're doing for products and service based businesses is to connect the ecosystem and create benefit and advantage as they start using more services in the ecosystem.
Great. Thank you both, Rania and Kathy, and thank you for the question, Michael. I know we have other questions, save your questions. We'll have time later for Q and A. So don't worry, we'll get to them at some point.
We are going to now move on to Big Bet 5, and we'll have Kelly and Bobby talk about disrupt Small Business
Mid Market.
Hi, I'm Kelly Vincent, Vice President and Mid Market Segment Leader for the Small Business and Self Employed Group. Our 5th big bet is to disrupt The small business mid market with QuickBooks Online Advanced. Many mid market customers struggle to manage their business using spreadsheets, But when they look for a solution, existing offerings are often too complicated and costly for their needs. Our strategy for mid market customers is to deliver a customizable financial management system that meets their unique needs at a disruptive price point of just over $2,000 per year. It's a $47,000,000,000 market opportunity with 1 point 7,000,000 high value customers and we can disrupt this space from beneath.
After I walk you through our Product Innovation, I'll turn it over to my colleague, Bobby, to share how we're evolving our go to market strategy to attract new customers as well. First up, let's talk about how we're connecting the ecosystem for mid market businesses. Last year, we showed you the 1st premium app integration with Salesforce And we've accelerated these integrations, including HubSpot, DocuSign, PandaDoc and Centage, helping customers save time by automating workflows across their business ecosystem. For example, when an estimate comes through HubSpot, a task It's automatically generated in the task manager so that the estimate can be reviewed and sent to a customer to sign. Anomaly detection enabled by AI checks the estimate catching common errors.
The estimate is then sent to the customer, the customer receives a notification and they can easily sign and approve with DocuSign. Of course, that's not all that task manager can do. As teams are more distributed, we must empower them to collaborate seamlessly. Last year, we showed you how Task Manager allows managers to Signed tasks to their team and this year we've added automation. Now a manager can set up a recurring task Student businesses can even create tasks from anywhere in the product.
For example, if a manager is reviewing their expense report and decides to share it on a weekly basis, they can set up that recurring task with the report attached. We know efficiency and coordination of work is critical. Automation helps reduce operational delays and the chance for errors. We continue to deliver new capabilities in our workflow automation platform. For example, when a bill over a certain amount comes in, A workflow can automatically generate a path for the bill to be approved by the CEO.
Once the CEO approves the bill, it can We've been sent for payments. Workflows automatically sends reminders to clients about open or pending balances, helping our customers save time and get paid faster. Finally, let's talk about enabling end to end business reporting. Each mid market business is unique and needs to slice and dice their data to optimize understanding of their business performance. Last year, we introduced you to Performance Center and Custom Reports, delivering powerful customizable views of KPIs and reports.
New this year, customers will be able to seamlessly sync data from Advance into their spreadsheets for financial modeling, business analysis and branded chart creation for board presentations or quarterly business reviews. In addition to automatically updating data in their spreadsheets, they can also easily update From their spreadsheet back into Advance with just a few clicks, accelerating innovation for our mid market Increases efficiency, so our customers spend more time with their customers to grow their businesses. And with that, I'm going to hand it over to Bobby to take you through the evolution of our go to market strategy. Bobby, over to you.
Thanks, Kelly.
I'm Bobby Morrison, Chief Sales Officer at Intuit. While we've had strong initial traction with existing QuickBooks Online customers upgrading to Advance, We see a huge opportunity to attract new mid market customers to Intuit. As businesses grow, they want confidence in an offering that can grow with them. And customers have actually been very clear with 3 things they expect from a partner and here's what they told us. First, we need to know their business.
Mid market businesses are very different and in order to best serve them, our new go to market strategy is deeply rooted in understanding their industry, competitive landscape and customers. 2nd, we need to truly understand their technology. Mid market businesses rely on complex and integrated apps, websites and desktop software to run their That's why we are expanding and diversifying our partner ecosystem to develop industry specific bundled solutions. And third, mid market customers Expect expert recommendations based on their specific needs. This past year, we've launched a new global sales certification program to elevate the product Expertise and business acumen of our sales team to meet the needs of our customers.
These go to market improvements coupled with the power of the QuickBooks Online
Because they use services such as
payments and payroll time tracking at a 30% higher rate and their ecosystem services ARPC is 4x I'm Ben of our standard QuickBooks Online offering. We are now at 118,000 QuickBooks Online customers, growing 57% over last year And we are just getting started.
Thank you.
All right. Thank you to Kelly and Bobby. We now have them here for questions as well. The first person we'll go to is Kirk Materne.
Sorry about that. Bobby, I wanted to ask you about sort of the go to market motion when you get into the mid market. You mentioned that you've started to do more Verticalization. How long have you been doing that for? I guess you mentioned that you've had obviously really good growth in this segment.
But how early are you on in terms of sort of refining those marketing techniques for the mid market? And are there any other things that You're preparing on or preparing for this year, that could go another level deep as you face new competition and you have clients with new requirements? Thanks.
Yes. No, great question. We're still early days in the work that we're doing in industries. We've been out in the market for the last 6 months In select verticals, we've seen great success there. The ARPCs in partnership with our 3rd party systems integrators and Managed service providers have been materially higher than when we were horizontal.
So we're excited about that. And we're Adding 7 additional verticals to the 2 that we started with, starting literally in the month of September. So We see a tremendous amount of traction when we change the conversation from a generic discussion to one that is very much focused on the industry unique needs of our customers And the response that we've been getting today has been very positive. So look for us to continue to do more of that into the future.
Okay. Thank you.
Thank you, Bobby, and thanks, Kirk, for the question. Up next, we have Ken Wong with his question.
Great. This question is for Bobby as well. Just you mentioned kind of change in the approach on sales. I guess, how does it differ versus a smaller QuickBooks customer where I think in the past besides the website you guys also lean on your Book's Pro Advisors, is that a channel that is beneficial to this particular end market? Or is it a completely
Different sales partnerships that you guys have to seek out?
Yes, another great I'll take a stab at it and then I'll offer up to Kelly in case she has a point of view as well. So mid market is all about leveraging all of our channels. So we have a strong channel, the one that you mentioned. We have a very strong web asset, a digitally assisted journey that we manage through our inbound and outbound sales teams. We're complementing that with these dedicated vertical teams that are going out to market hand in hand with a new partner ecosystem that's very different than what we've used in the past.
So we have depth and strength within the accounting space. Our accountant channel has been a tremendous advocate for QuickBooks and we think a competitive differentiator. But now we're complementing that advisory kind of accountant in approach to the marketplace with a technology in approach. This is where new managed service providers like Pax8 or systems integrators like Knowify, SOS and others really help us differentiate the offering from a Tech and Advisory. So we're going to leverage all of those channels.
We'll leverage the ones that we have today and we're building new ones that complement the strength that we have in place. Kelly, anything you would add to that?
Yes, I think you've nailed it, Bobby. And the only thing that I would add is, To your point, a lot of those motions are these net new mid market customers. When we look at within our ecosystem, Customers that have been growing and need that additional support through advanced semi mid market services that we're offering, Our existing accountant and pro advisor channel is a critical part of that. They're helping their customers grow and we want to help Them help their customers grow. So to your point, it's really not an either or, it's a both.
Great. Thanks to all of you. That's all the time we have questions for this section. We're going to move into the last section of our pie experience With Big Bag One, with Revolution, I see the benefit with Mariana and Alex.
Hi there. I'm Mariana Sessel, Chief Technology Officer here at Intuit. Our first big bet is to revolutionize speed to benefit for our customers. It is foundational for all of our other big bets in our AI driven expert platform strategy. Our goal is to use data and AI to deliver more money to our customers' pocket, eliminate friction And we're confident of every step of the way.
The journey of Big Bet 1 is ongoing, but we made some tremendous progress. Let me turn it over to my colleague, Alex, to show you a few examples of the progress we've made this year.
Thanks, Mariana. I'm Alex Balazs, Chief Architect and Senior Vice President of Platform Acceleration at Intuit. The first example of how we've increased speed to benefit Is one we can all relate to. In fact, it's the number one error we see across all of our products mistyped bank account numbers. Every year, 350,000 customers mistype their bank information.
In a product like TurboTax, This can lead to 1,000,000 of dollars in delayed tax refunds, putting serious time between customers and what might be their biggest paycheck of the year. Our new machine learning models predict the likelihood that a bank account number was mistyped. This model learns these patterns through All the bank account data we have across millions of customers in our ecosystem and alerts the customer that there is a high likelihood of a mistake. So far, it's reduced mistakes by 50%, an improvement that's led to about $450,000,000 in refunds Arriving on time that would have otherwise been delayed. This capability was first implemented across QuickBooks, Then scale to TurboTax and Mint.
It's a great example of how we're building reusable AI models To scale innovation. The next example demonstrates scaling efficiency within our virtual expert platform. This is the platform we use to provide access to Live Experts and offerings such as TurboTax Live or QuickBooks Live. Every year, millions of Intuit customers contact us over the phone. After each conversation, Our experts spend about 1 or 2 minutes writing a summary, so they can document, learn and improve our service.
Understandably, these summaries are pretty short, usually less than the length of a tweet, making it hard to really capture all the information that's needed. We incorporate AI that leverages a variety of learning models to automatically summarize on behalf of our product care experts. Not only does that save them millions of minutes per year, the comprehensive summaries build expertise And save customers almost an entire minute per call. Last year, we rolled out this technology in QuickBooks Live And today it's being used company wide. It's another great example of how our platform approach allows us to adopt new technologies Across Intuit with little effort.
Our platform approach to data has unlocked opportunity within Credit Karma. In fact, Credit Karma's modern tech stack easily consumes data. It is now the model for how we are designing all Intuit apps. With consent, we can stream customer data from Intuit products to optimize their Credit Karma experience And better solve their financial problems. For example, TurboTax customers are introduced to Credit Karma If they don't have a bank account to deposit their refund, all the customer needs to do is create a Credit Karma Money account, Which makes it simple and fast for them to get started.
Additionally, because we empower them to use their data across All of our products, once a customer starts using Credit Karma with permission, we can provide personalized recommendations To truly fit their needs. So far, millions of consumers have registered with Credit Karma through seamless data exchange. We're excited about the opportunities ahead. Finally, we've enabled cryptocurrency exchanges across our platform. In just the last month alone, 150,000 users have connected their crypto accounts across TurboTax, QuickBooks and Mint, and we're committed to staying ahead of what our customers need.
Back to you, Marianna.
Thank you, Alex. All of this work is core to our AI driven expert platform strategy. We have served the use of AI, delivering tremendous benefit for our customers, saving them millions of hours of work. We increased the use of AI models across our platform by nearly 50%, Number of experiments by over 35%. We also increased our release velocity 4x, allowing us delivering feature and products faster than ever before and solving our customer problems in a fraction of a time it wants to.
Thank you all so much.
Welcome back. We now have Alex and Mariana here for questions. And the first question is from Brent Thill.
Thank you. If you can just remind us on the AWS transition, it seems like you made a big bet here. Are you fully over Completely on the AWS stack across all of your products. And if you could maybe just talk to the synergy and relationship with Amazon and what you With Amazon
and what we couldn't do in the past?
I'll take that one. As you know, we embarked on a cloud journey several years ago. And at this point, we are fully in the cloud. We have chose AWS as our partner and we architected though in a way that allows us to really be in any cloud. And we have been using whatever modern services that we find right for us to use from The AWS stack or whatever stack we see around in the cloud and we're able to interoperate with other clouds as needed.
Great. Thank you.
It looks like we have no other questions at this I'll give it just a few seconds and if not, we'll go ahead and wrap up.
I can see the team typing. All right. One last question.
Siti Pannag Gharahi, and apologies for fumbling your name, but you're up to ask your question.
Siti Pannag Gharahi. Well, my question is, this cloud and AI, ML initiative, we started 3 years back and it's good to see how you guys are now leveraging that in the platform. But what are the new trends that at this point you're tracking to bring it next to the Intuit platform? Like we keep hearing about RTA So bringing automation, a lot of enterprise is now trying to focus on, are any of these trends that you can think your small business and consumer can benefit And that you're working on next few years.
Yes, let me start and let Alex continue. We actually you're right, we continue monitoring development in AI, in data, but also in other technologies. And we continue to modernize our stack, embrace new AI modules and protocols, we use RTA where needed within our stack And we continue looking at other things like for example, we completely modernize our CICD and continuous integration, continuous development deployment. And a lot of our staff, we're looking at what's modern and we are utilizing that. So it's something we're continuously doing, Starting all the way in the app, in UI, in AI, all the way in the infrastructure.
Alex, do you want to add more things that answer the question?
Sure. Thanks, Mariana. We have a team set up that specifically is designed to track Trends and areas of both technology and interaction that are important to our customers that are things that likely we should be Testing and or adopting inside of Intuit. Now the other examples that I would provide are interaction models, so conversational UI, voice UI. These are things that obviously With all the work going on with all the cloud providers and other technology providers, these technology stacks are really becoming much more powerful.
And so we're looking at opportunities to provide some early adoption. In fact, we have some early adoption already in CUI and voice UI, conversational voice UI models. And so that is something we're going to continue to lean into. And we're tracking other technology trends as well to make sure that we can actually adopt them as our customers need them.
Great. Thanks to all of you. This wraps up our platform Immersion experience. Thank you for joining us. We'll have a quick 10 minute break.
So go ahead and take your break and when you rejoin us, just make sure
to go back to the Investor Day site
and we'll start the next set of presentations. Thank you.
I hope you enjoyed the platform and merger experience and thanks for joining us again. Before we continue, I have one announcement. We'll be sending out a short survey via e mail following today's program. We are always looking for feedback and how we can make this day more valuable to all of you. And after you fill out the survey, a code for a free copy of TurboTax Online will be emailed to you as a token of our appreciation.
So with that, next we'll hear from Alex Chris on our strategy for the Small Business and Self Employed Group.
Thank you, Kim. Good morning. As I walk through the small business and self employed group story, I'm going to start as I always do, by grounding us in our mission, our customers' needs And how we are tackling them with our durable 3 pillared strategy. We will then look back at fiscal year 2021 results and the drivers behind our success. And finally, I'll quickly highlight some exciting innovations with deeper dives on our money portfolio, mid market and Mailchimp, All demonstrating how our rich data connections across our ecosystem position us as the source of truth for small businesses And allow us to deliver a customer experience unlike anyone else.
Our mission is to power prosperity around the world. We do this when more businesses survive and thrive. The COVID-nineteen pandemic obviously made this more challenging, But also more important than ever, each week I spend time talking with customers and I'm constantly reminded of how resilient Small businesses are. They are problem solvers. They are looking for products and more importantly partners to help them prosper in the face of so much uncertainty.
And while it has been exciting to see SMBs in the U. S. Bounce back, the recovery in our international markets Has been uneven with many businesses facing a challenging road ahead. This is why we are so committed to innovating rapidly And delivering for our customers around the world. As always, our innovation is focused on solving the most critical problems small businesses face.
These are not discrete challenges to be solved by a collection of single point solutions. 76% of customers tell us They are looking for a true partner to help them solve all of these problems in one ecosystem, which is what led us to our transformation of our strategy a couple of years ago from being the source of truth for your books to the source of truth for your business. We will continue to strengthen our position as the source of truth for your business through our durable 3 pillared strategy. We will grow the core, transforming the financial management software category and meeting customers where they are. We will connect the ecosystem, Meeting a wider range of customer needs in a single end to end platform and we will continue to grow internationally serving small businesses around the world.
Becoming the source of truth for your business has been a multiyear journey as we have added services such as payroll, payments, Time tracking, business checking, capital, commerce and third party applications. But we didn't just add them, We connected them, not just to accounting, but to one another, leveraging and sharing the data for seamless and unique customer experiences And Unparalleled Insights. Later in the presentation, we will show you the power of our ecosystem and these data connections through the lens of our money Mid Market Portfolios. And with the proposed acquisition of Mailchimp, we will be able to help small businesses and mid market businesses grow By helping them get, engage and retain customers, leveraging the power of our combined data. But before we get to those deep dives and all the exciting innovation, let's unpack our strong FY 'twenty one results.
Let's start with our customer and ARPC strength in FY 'twenty one. As a reminder, last year we shared that we expect to grow Customers and ARPC 10% to 20% as our formula to drive 30% online ecosystem revenue growth over the long term. In FY 'twenty one, we grew our customer base to $5,300,000 up 16% year over year. In balance with customer growth, our ARPC grew by 13% as we targeted acquisition of high value offerings and realized more value from the base. The top customer segment of customers who pay over $1,000 per year continues to be the fastest growing segment with 38% growth, Driven by QBO Advanced and increased ecosystem engagement with products like payroll and payments.
Attracting new customers and increasing monetization are Key drivers of online revenue growth. And in FY 'twenty one, we generated $2,700,000,000 in online revenue, growing 26%. We had a strong balance of growth across the platform with U. S. Online accounting revenue growing 24% and online services growing 24%.
Overall, QBO customers are increasing their engagement and deriving value from our ecosystem with 40% of QBO customers Now using an ecosystem service or 3rd party application, up 4 points year over year. Outside the U. S, online revenue grew 43% On a constant currency basis, amidst greater macro headwinds. Now that we've gone over FY 'twenty one results, let's shift focus to our innovations that are setting the stage For our next phase of growth in FY22 and beyond. As we execute on growing the core, QBO Advanced And QuickBooks Live are broadening our total addressable market or who we can serve.
The mid market is a $47,000,000,000 ecosystem opportunity that we are uniquely positioned to capture. In FY 'twenty one, we grew our base 57% to 118,000 customers, While increasing our new customer mix by 10 points. QBO Advanced customers are engaging with our ecosystem With a services ARPC 4 times that of QBO. In QuickBooks Live, while still early, we continue to see positive traction. To meet the increased demand, we doubled the number of experts on the platform and are seeing a 5 point retention uplift for QBO customers who use our QB Live offering, showing the ecosystem benefit of increasing customer confidence.
Moving to connect the ecosystem, 100% of our new payroll customers now come in on our full service offering with over 30% choosing the higher end of our lineup, Which features expert help and beyond payroll services like time tracking, HR and expert onboarding. And for QuickBooks Commerce, while still very early days, we are making progress building out capabilities to centralize omni channel complexity and inventory management. We are now connected to the top 35 e commerce providers and marketplaces. We also launched a B2B wholesale marketplace in the U. S, An exciting opportunity that allows our merchants to interact and transact with each other.
In our payments business, we've seen Tremendous momentum in the last year, reaching $91,000,000,000 total payments volume and 40% growth. In money management and capital, our rich data and proprietary risk models allowed us to expand eligibility for QuickBooks Capital by 66% Compared to pre COVID levels. We also launched a QuickBooks business checking account QB Cash with over $200,000,000 in balances funded Since its launch in February. And we'll show you in just a few minutes, we've integrated these offerings in a way that delivers unparalleled customer benefits. Moving on to expand globally, despite the slower pace of economic recovery, we grew our established market customer base 12% and revenue 38% by improving ecosystem engagement and making strides in customer delight.
In emerging markets, we grew revenue 46% as we improved product Market fit in Brazil and France. We are excited by the progress we've made internationally and now with 50% of Mailchimp's customers Being outside of the U. S, we are poised to accelerate our international pace even faster as one growth platform after the acquisition closes. FY 'twenty one was an incredible year and I am so proud of what our teams delivered for our customers. Let me take you through a couple of areas of our ecosystem to bring to life how being a source of truth for your business allows us to bring more unique benefits To our customers, let's start with our money portfolio.
Cash flow and managing money is central to numerous customer problems, such as getting paid and paying workers. We have solutions for these problems ready at the time of need, Arming our customers with an end to end money offering unlike any other. What makes us different is that we aren't just offering a menu of point solutions for Our data further solidifies us as the source of truth for your business. We see the whole picture With transaction history, cash flow data and 60,000,000,000 small business data points to create unique offerings that are only possible Because of these connections. For customers, this is game changing.
It finally gives business owners control over their money when so often They feel like money controls them. It's another big way we are powering prosperity and helping small businesses succeed. Let's make this real for you with a customer story. Sandra's graphic design studio is growing fast, but she is juggling a lot day to day. Because projects range in length, her cash flow is uneven.
And like so many other businesses, she is forced to sometimes pay late fees on bills Or take high interest short term loans to make payroll for her 5 employees. She just wants to focus on the creative elements of the business And less so on managing cash flow. Now that she uses QBO, as soon as she sends an invoice to a customer, She doesn't have to be like the 64% of small businesses who have outstanding invoices at 60 days or deal with the uncomfortable and time consuming task I'm chasing down a customer for payment. When invoices are sent pay enabled on QuickBooks, the median days to pay is 2. But sometimes businesses can't afford to wait even days to get the invoice paid.
When Sandra looks at our cash flow planner, Which uses AI to predict cash flow up to 90 days in advance, she gets an alert that she will not have the funds to cover her next payroll run. It is clear that Sandra needs the cash she and her team have earned right now. Knowing this Sandra applies to get paid upfront, The ability to get paid as soon as the invoice is sent. If approved, the funds from Get Paid are deposited into our QB Cash checking account and she allocates a portion to a smart envelope earmarked just for payroll. Once it's time to pay her employees with one click, funds are drawn down from the smart envelope and dispersed through QB payroll.
Crisis averted. Sandra has the products, tools and insights she needs to control her money and she avoided the stress and high fees She may have incurred otherwise. We want to keep more money in the pockets of our small businesses for longer, powering their And giving them the tools and confidence they need to thrive. As you can see, our end to end money portfolio with the billions of data points, Our AI driven platform leverages puts us in an extraordinary position to deliver that. Next, let's make this real for the mid market too.
The $47,000,000,000 market opportunity that QuickBooks is uniquely positioned to disrupt and win. What we have learned over the past few years is that the mid market customers look a lot like small businesses. They share fundamental needs like getting paid And accessing capital, it's the complexity of the solutions that is different. Take Bill Pay. When you are a small business with less than 10 employees Paying 8 bills a month, you can reasonably manage it.
But when you have dozens or hundreds of bills a month, you really need better and often completely different work Close. That customer driven approach is in our DNA and it's what has made QBO Advanced so successful thus far. Building an entire ecosystem for the mid market will take time, but we have the perfect foundation and we're off to a good start. Where we don't have capabilities today, we are partnering so that we can be the source of truth for mid market businesses as well. Here's a common example we see with mid market companies.
Kevin is the owner of AB Electric, a regional electric company operating across 3 states. Business has grown considerably in the last few years and they expanded their workforce from 6 to 25 employees. But with that growth came greater complexity and some real growing pains. Kevin and his team want to deliver the best service they can, But operations have become a cumbersome distraction. That's where QuickBooks comes in.
Kevin's biggest challenge was managing his employees. But with QuickBooks' time, he can manage his fleet of electricians with ease. Thanks to location enabled time tracking, Kevin can see exactly how much Time each employee spent working on their job site. Once an employee finishes a job, they are able to create an invoice for the client And use QuickBooks card reader to accept both card and digital payments on the spot. As soon as the payment is processed, The transaction is recorded in QBO Advanced with dozens of transactions happening every day across the fleet, automated accounting Saves the company hours each month.
Once all the payment and time tracking data is in QBO Advanced, payroll is also automated, Saving Kevin hours each month. With so much of the operational load carried by QuickBooks, Kevin can focus on growing his business. Custom reports allow him to see which regions are growing the fastest, so he can determine where to hire his next electrician. As the source of truth for mid market businesses, QuickBooks is able to offer unparalleled insights and automation and ultimately Help mid market businesses like Kevin's prosper. Now let's talk about our recently announced plan to acquire Mailchimp.
You've all been so patient waiting for this. I could not be more excited to talk to you about Mailchimp And emphasize how game changing this will be for our small and mid market businesses. As you heard from Sasan, the proposed acquisition of Mailchimp Significantly accelerates 2 of our big bets, be the center of small business growth and disrupt the small business mid market. Our vision is to become the source of truth for small and mid market businesses by not only helping them run, But also grow their business. With Mailchimp, we will be able to provide our customers with the tools they need to get, engage And retain customers, so they can grow and run their business with less work and more confidence.
I'll start by sharing a little more about Mailchimp. Today, 13,000,000 users use Mailchimp to get their business online, market their business and manage their customer relationships, All while benefiting from Mailchimp's AI driven automation at scale with 70,000,000,000 contacts and over 2,000,000 daily AI driven predictions. To help businesses get online, Mailchimp offers landing pages, web stores, shoppable social, pay enabled appointment scheduling and more. While web stores and appointments only launched in May of this year, Mailchimp has been helping customers get and sell online With promotional emails, abandoned cart automations and more for much longer. For instance, in 2020, Mailchimp's customers sent a staggering 6 1,000,000,000 emails between Black Friday and Cyber Monday to drive sales.
In short, this is an amazing set of tools To help both product and service based businesses get online. To help businesses with marketing, Mailchimp has a robust toolkit that empowers small and mid market businesses to send the right messages to the right customers at exactly the right moments. One powerful example of marketing automation is the customer journey feature, a marketing automation based on prospect behavior. For example, when a shopper signs up for a business mailing list, they are tagged as a new customer in Mailchimp CRM and immediately receive a welcome email with a discount code. If a shopper puts an item in his or her cart, but doesn't finish checking out, the business can automatically send abandoned cart emails Or follow-up with a targeted digital ad on Google, Facebook or Instagram.
Mailchimp is a marketing and growth platform That makes small businesses look like marketing geniuses. Mailchimp also helps small and mid market businesses manage their customer relationships. Contact data is centralized in an audience dashboard equipped with tags, predictive insights, behavioral targeting and more To drive customer value and loyalty. Mailchimp's customer lifetime value models provide businesses with actionable predictions About future purchase behavior using predictive modeling. With this information accessible right in the audience dashboard, It is easy to target high value customers.
All of these offerings are driven by more than 2,000,000,000 data points. Customers are able to leverage these data points from others to test, track and optimize each and every customer engagement. Now that we've given you a glimpse of what Mailchimp offers, let's talk about what we'll do together as one platform. Together, Mailchimp and QuickBooks We'll become a powerful engine for small and mid market businesses, helping them take their business online, market their business And manage customer relationships on the same platform where they get paid, access capital, pay employees, Optimize cash flow, get organized and stay compliant. Combining customer data from Mailchimp and purchase data from QuickBooks We'll turbocharge our ability to power prosperity for small businesses.
Think back to those abandoned cart emails we spoke about earlier. We will actually be able to tell if those prospects made a purchase or not and use that data to get a better understanding of customer behaviors and look alikes. When a small business is struggling with the decision on where to spend their marketing dollars, we will be able to predict That a $2,000 investment in digital ads targeted at high ROI customers should translate into $5,000 of revenue for their business. And if they need access to capital, we have that at their fingertips with QB Capital. Like you've seen Across our platform, these data connections allow for incredible and unique customer experiences at the moment of need.
Mailchimp is an amazing addition that furthers our vision to be the source of truth for small and mid market businesses, Providing an end to end customer growth platform to help our customers grow and run their business, putting the power of data in their hands To Thrive. So to conclude, we're coming off a very strong year and are incredibly excited about the new ways We are shaping our business and the trajectory ahead. Our strategy has proven durable, driving acceleration in our business amid the macro recovery. We're serving more customers and meeting more of their needs in so many ways. We're leveraging billions of data points across the ecosystem That enable us to offer unique experiences like get paid upfront, which is only possible because of our e invoicing, capital and Small Business Checking Account Capabilities.
When we're able to integrate Mailchimp and its data, we will be able to bring to market even more new unique experiences And delight our customers and demonstrate the value of our connected platform. And last, all this work on delivering superior customer benefits Translates into attractive financial results. We are growing our customer base and increasing ARPC with a multitude of levers to drive both of these outcomes in parallel. Looking to the future, we expect to grow customers 10% to 20% And ARPC 10% to 20% as our formula to drive 30% plus online ecosystem revenue growth over the long term. All of which gives us confidence in our long term total SBSEG revenue growth of 10% to 15%.
Next up, I'd like to bring on Greg Johnson to speak to our consumer group strategy. Greg?
Thanks, Alex. Hey, I'm Greg Johnson, the General Manager of the Consumer Group here at Intuit. I've been in the Consumer Group almost 9 years And I've seen a lot of innovation and a lot of growth, but I'm more excited about the puts to come. Now when we look back at last year, we were able to grow our customers That followed with us up to over $45,000,000 Now when you think about the elements of growth, That's 6% growth year over year. Our TurboTax Live platform was able to grow at 100% year over year.
Now beyond that, our winning with underpenetrated segments, which are self employed, Latino and investors, We're able to grow at an average of 13% per year. And at the end of the day, we delivered a net new customer add number of 1,900,000 followers Now we know customer growth leads to accelerated revenue. This last year, our revenue on our platform Accelerated at $3,600,000,000 Now that is 14% year over year growth on revenue, 14%. This marks the 4th year in a row that we've delivered double digit growth in our tax business or in the consumer group. Now drivers of that growth, Number 1, we need to look at just the continued mix of TurboTax Live.
We also have to think about the winning with underpenetrated segments, where we were able to deliver 20% +agenualgrowththispastyear. And so 14% overall growth. And now as we look ahead, let's talk about our scorecard. In tax, we're building a tax platform and this platform is going to enable us to Extend our lead in DIY as well as transform the assisted market. Now, if you look at some of the key stats from this last year That signify how well we executed.
Number 1, our goal is to grow our total share of returns. We're able to do that by almost a point. Point number 2, We wanted to establish TurboTax Live and we're able to grow that by 100% this past year. Number 3, we aim to deliver That our consumers and our experts love and that shows up with improved product recommendation scores. And then finally, Innovation.
We innovated on TurboTax Live platform by introducing full service. And full service opens the doorway For us to file more complex returns and us to deliver delightful experiences to assist it that's better than what they're currently receiving. And then finally, as I mentioned, the revenue growth, 14% year over year growth and over 8% average revenue per return increase Among our paying customers. Now, as we shift from looking backwards to looking forwards, everything we do starts with our customers. The customers and the problems they hire us to solve, problems like making ends meet, Holding on more to their hard earned money and maximizing our refund, helping them pay down debt, save more money, Understand where they are with respect to all of their financial goals.
Those plans inspire us, inspire all of Intuit For our mission, to power prosperity around the world. Our strategy for powering prosperity Is to become an AI driven expert platform, a platform that has the data, The assets, the trust to solve problems for small businesses, self employed and for consumers. And with that platform, we are also creating And Advantage Network. This network advantage comes from the trusted relationships we have, The trust they have with us, the data that they provide us that with their consent we're able to leverage to deliver benefits. Data that we derived from the $56,000,000 tax filers, the $54,000,000 W-2s, The $40,000,000 plus 1099s, when you look at Credit Karma, there are 121,000,000 match members, $41,000,000 that are monthly active and over $7,200,000,000,000 of visibility into the debt they carry.
With Mint, 29,000,000 registered users, 3,600,000 monthly active And visibility to $190,000,000 weekly transactions on the platform. And let's not forget about QuickBooks payroll, Where we're paying workers on our platform, over $232,000,000,000 of payroll going through our platform. This creates opportunity that with their consent, We can deliver unimaginable benefits. Now with that, we're able to deliver on a very bold vision of financial freedom for all consumers in tax And beyond. Our roadmap, our roadmap first starts with number 1, we're going to build this tax platform.
This platform that effectively are going to allow us to give customers experiences that they can choose their own adventure. In other words, they can decide, hey, I'll just do it myself, I'm confident. Maybe they want on demand Access to an expert at the push of a button because as they file, they might run into some challenges. And now with our latest innovation, They can simply just hand it off, because either that's what they used to do or because that's what they wanted they desire to do now. Now with that platform, we have 2 bold strategies.
Number 1, we're extending our lead in DIY even further than it already is. And we're going to do that by leveraging data and AI to deliver a taxes are done experience. Number 2, transform the assisted category. By connecting people to experts and experts to people on our virtual expert platform, we will be able to revolutionize the way taxes are done with complete confidence. Number 3, we want to disrupt consumer finance.
Disrupt consumer finance by unlocking smart money decisions for our customers. Those smart money decisions will be enabled through Credit Karma and Mint. And along with data in our platform, We should be able to unlock the best decisions that put more money into our customers' pockets. And finally, What I would like to say is that the problems we're trying to solve are not unique to the U. S.
Or just to North America. The problems we're trying to solve are global problems. So we see the opportunity to expand our reach globally with our technology
To
solve those problems, we're customers around the world. Now, a little bit of context around the industry. There were 165,000,000 returns filed last year. And when you look at the returns on our history over the last 10 years, you'll see the fastest growing part of the industry is TurboTax. Now let's talk about the drivers of that growth.
Number one driver is TurboTax Live, our transform assisted Strategy. We envision continuing to add capabilities, continuing to solve more and more complex Tax returns and ultimately delivering experiences that cause customers to switch from the old way into the new way. The second driver is our passion to win with underpenetrated segments. Today's underpenetrated segments are Latino self Employed an investor, but there are other underpenetrated segment opportunities in the future in front of us. The 3rd driver of growth is for us to innovate, Innovate and improve the experiences for both consumers and experts, delight them with our AI, with our data, With the kind of experiences that are more reductionist, that's the key for us to continue to build experiences on our tax platform and drive growth.
And then finally, simpler filers, simpler filers that shouldn't have to take as long as they do to file their taxes. With our data AI, with our reductionist design, we should be able to get taxes done in just a click of a button. We're not there yet, but that's our aspiration. The other way that we think about growth is to look at our funnel. Look at the 165,000,000 customers Filed in the IRS last year, we had 127,000,000 of those customers actually came to our front door.
We had over 50,000,000 that actually logged in with us $37,700,000 completed. Now when you look at that, you see 2 things, a lot of opportunity And you also might question about our conversion. Our conversion rate was actually up 2 points last year when you account for the stimulus only filers, the filers that just came to TurboTax in order to get their stimulus payment. Our retention rate, strong last year and slightly up again this year. So the reality of it is, we should never have to lose a customer or prospect because of the capabilities we now have and that we're developing.
So, 3rd way we think about growth is to look at the total addressable market. In zeroing on that $20,000,000,000 there are 88,000,000 customers That actually seek out an assisted method, dollars 10,000,000 of which actually churn because of an experience they're not satisfied with To look for another assisted preparer, there's our opportunity. Our opportunity is to help our customers choose their own adventure. Those customers can file by themselves do it yourself, they can access experts on demand with a click of a button, Or finally, they can just hand it off because of our new full service capability. The way we mark our success Is the total share returns?
Number 1, our share returns is 31% this past year. That's up a point year over year. So the way we mark our success is the revenue share of returns. Our revenue share was 14%, up a point last year. And then finally, it's not only about growing our share returns, but are we doing it in a healthy way?
Is our average revenue per return growing? What you see here over the last 10 years, a steady progress in our average revenue per return, but then you'll also see is our Paying customers and the average revenue per return for our paying customers, which is up over 8% and now over $105 So we are a healthy and growing business and that will lead us into the strategies I'd like to share. Strategy number 1 will be to extend our lead in do it yourself. Now the opportunity at the top of the funnel I shared already With 0 in on that $16,700,000 file that start with this, but don't file. The reality for us to extend our lead is going to take trust, Data, AI models, a reductionist experience bring it all together to delight customers in very unique ways.
Now some signs of our progress, the 36,000,000 customers forms that were inputted. The fact that we are actually able to convert 2,000,000 filers to our mobile native app, which is a very simple experience. We had 3,000,000 underpenetrated customers that are new to our platform. Fundamentally, we continue to retain customers in driving that growth year after year. So very happy with the progress we've made and that's the strategy we have to extend our lead and do it yourself.
Transforming the Assisted category is our next opportunity. Now to transform the assisted category, that's about connecting customers to experts of experts to customers on our virtual expert platform. The opportunity is those 10,000,000 customers that churn because they're overpaying and being underserved and our TurboTax Live offering Can really be delightful for them. Now we see this in the fact that we have 100% growth on our TurboTax Live platform. We have 100% increase in new filers new to Intuit on our platform.
We also have improved conversion And we also have improved product recommendation scores from our experts, meaning that they love it, our consumers love it, And then we are delivering a solution where we never have to lose a customer or prospect. And finally, Our strategy and ambition to disrupt consumer finance by bringing together Credit Karma with Intuit And delivering experiences that unlock smart money decisions for our customers. Now Ken is going to talk about Credit Karma strategy and the consumer finance strategy more in-depth. Let me zero in on one opportunity that brings Credit Karma and TurboTax together. We bring those together inside Credit Karma.
Inside Credit Karma, there are tens of millions of customers that are going to assist overpaying, being underserved and not really delighted by their tax experience. We see an opportunity to bring those together, leverage our data, our AI, the relationships to deliver killer value propositions that Inspire customers to switch from the old way and adopt the new way. That's what Credit Karma and Intuit together means. So finally, what I'd like to do is just describe what does it look like when it all comes together. When it all comes together, we imagine a single platform that wraps around our customers and their financial lives and their tax lives.
It enables customers to file however they want to, lay off customers to start incredibly simple, not pay us anything To get the biggest paycheck of their life, but that customer may get more complex and that customer may go on to take advantage of the benefits they can get from Credit Karma. And that customer that was worth $0 1 year could be worth $200 the next year or maybe $400 or 600 As our lives become more complex, as they need more and more assistance or they take advantage of more of the opportunities To reengineer their financial life on Credit Karma. So let me wrap by sharing our long term expectations. Our long term expectations is 8% to 12% growth. And again, I'd like to remind you that the last 4 years we've delivered double digit growth.
And as we look forward, we're excited about the growth that's in front of us. Thank you so much. Let me turn it over to Kim.
Thanks so much, Greg. Now we'll take a
10 minute break and when we come back, Ken will take us through the Credit Karma strategy.
I am in a lot of debt. Turn 18, the credit cards Came and I was just spending and spending like it was free money.
Last year, we ended up owing taxes. It just killed us.
Everything that I had in my savings, the little that I did have in the beginning of this pandemic was completely depleted.
We took a 401, Spent all of it.
I started spending money that I didn't have
and found out that a lot of jobs Turning me down because my credit was bad.
We see retirement just around the corner and we want to try and position ourselves that Where we can retire
I just hope I can provide for my family.
I don't have a choice. I have to Not do what I love, but do what's going to bring basically put food on the table.
Work harder, more hours, overtime, Whatever it takes.
I'm a hardworking single mom who goes above and beyond for anybody.
I'm excited to just only go up from here.
I want to be debt free. I would like to retire.
Just have what we need.
I want to keep building my savings.
A little bit of help can
go a wrong way. Tell me
how much extra each month I should be putting into my taxes, so I don't Oh, at the end and have to pay a penalty for not paying enough.
I'm sure there's someone who could tell me where I could be Cutting down.
Just tell me what to do, that's all.
I'm Ken Lynn, Founder and CEO of Credit Karma, and I'm excited to share a story with you today. Let's start with the consumer problem that we're addressing. Just like the people you saw in the video, 77% of Americans feel overwhelmed by their finances. And when you look at just a few of the data points, it's Easy to see why. 75 percent have concerns about their ability to pay bills and loans.
There's $14,000,000,000,000 in total household debt And 62% live paycheck to paycheck. Finances are complicated and as a result, people feel stuck, discouraged and end up doing nothing. It's clear they need help, but financial resources and expertise are often reserved for the wealthy. I founded Credit Karma in 2007 with one mission in mind, To build a company that can make money by making financial progress possible for everyone. I believe finances should be transparent People should have access to their data and it should be used to their advantage.
We started out by pioneering free credit scores, but we've evolved significantly over the years. Today, we anticipate members' needs and offer the right financial products and tools, everything from credit cards and personal loans to mortgages and auto loans Savings and checking accounts. Since joining Intuit last year, we've introduced TurboTax users, Turbo users And employees pay by QuickBooks payroll to Credit Karma. We've built up data platform on trust, relationships with over 100 financial Partners and more than 121,000,000 members in the U. S, Canada and UK.
We now have 55,000 tax and financial attributes per member And 35,000,000,000 daily model projections. At the same time, through intense signaling and observed behaviors, We know how the financial lives of tens of millions of people involved. Just as a few examples, we know that when a member is in market for a home, they're less Likely to apply for other credit products. We know that 80% of members are active on Credit Karma 90 days Prior to having a new mortgage trade line appear on the credit report. When a member becomes to us more often than normal, we know that they're more likely to be in market for our financial products.
Throughout our 13 year history, we've leveraged critical data together with members' behaviors to generate actual insights And feed the AI recommendations, creating a powerful network effect that drives our business forward while helping our members. Our vision for Credit Karma is to be a personal financial assistant that autonomously helps members save, pay down debt and get faster access to their money. Amid a fragmented and confusing financial ecosystem, our vision needs to be grand and requires the unmatched scale and technology that only we can bring. Credit Karma connects all the financial points, offering a solution that's easy to use and has everything that the member needs in one centralized place that will help our members Find the right financial products, put more money in their pockets and provide access to financial insights. Here's what it looks like.
We want to help members find the right financial products that are personalized for them. More than half of all credit card applications I rejected because consumers have no idea what sorts of products they're qualified for. With credit cards and loans, our outstanding badge lets the member know that they have High likelihood of approval before they apply. The badge is very important because it creates certainty and protects their credit We can personalize offers through our proprietary Lightbox technology that allows lenders to deploy their targeting models In an encrypted environment that leverages thousands of financial and tax attributes from Credit Karma members and TUIT customers. This is something that no one else can replicate.
We have the scale and the partnerships that enable us and us alone to build this technology. Lightbox more than doubles the average approval rate for credit cards booked outside of Credit Karma. For car insurance, Karma Drives gives U. S. Members The opportunity to try usage based insurance to see if their good driving habits might qualify them for a discount on their insurance policy Without committing to a new policy, customer acquisitions is the largest revenue driver for the multibillion dollar insurance And more than 18,000,000 members have matched their vehicles with us.
And for prospective homebuyers, HomePulse tracks Equity of members' homes and connect them with the right products like cash out refinance and home equity line of credit to maximize their borrowing power based on the equity in their home. Next,
we want
to put more money in the consumer's pocket and help them save. To do this, we created Credit Karma Money. Credit Karma Money is an interest bearing savings and checking account with no fees from Credit Karma, designed to change the way that members have a relationship with money. Features like Instant Karma help us differentiate our product and random reimburse members for everyday purchases when they spend their money that they have in their Credit Karma Money accounts. With Credit Karma Money, we can help consumers deposit up to $105,000,000,000 worth of tax refunds and $232,000,000,000 worth of QuickBooks Payable into a Credit Karma Money account.
We're also leveraging Intuit's consumer data on money platforms to help members pay down debt And access their paychecks early. We are also offering bill tracking and notifications for any account on a member's credit report, sending reminders for upcoming bills So they can make on time payments or early payments and to improve their credit score. We help members understand their finances so they can make better decisions about their money by providing expertise and insights. By combining our credit and assets data with the verified income and cash flow data of Intuit's customers, We can offer unparalleled financial insights to help members understand their complete financial pictures. We also use machine learning To provide optimal credit building and borrowing strategies, customized for members' savings and to automate the process to remove friction and complexity.
For example, we can advise members which credit card they should pay down first with any extra funds that they may have in a given month. Ultimately, we want to help our members build wealth and achieve their financial goals through personalized offers, education and automation. Here's the strategies for how we're going to deliver on the vision. 1st, we're going to grow the core business and this includes credit cards and personal loans. We're going to continue to deepen our relationships with existing partners through our proprietary Lightbox technology and grow relationships with new partners, providing more choice and different products for our members.
We're going to expand the success of our growth verticals and this includes home loans, auto loans and insurance. Here we're going to focus on simplicity, transparency and rewards. We're going to offer prefilled mortgage applications, Home Equity and Equity Tracking. We're also going to build on the momentum of Karma Drive, our usage based auto insurance. And we're going to continue to develop emerging verticals focused on Credit Karma Money, offering direct deposit and faster funds transfers, Early access to Paychex, bill pay alerts and notifications, instant karma and in the future automated bill pay, Mobile check deposits, retailer cash back rewards and peer to peer payments.
And there are several opportunities to accelerate our business by combining our capabilities with Intuit's. Together, we're going to unlock smart money decisions, Helping consumers make ends meet. We're going to grow our membership base by introducing Credit Karma to Intuit customers, TurboTax and Turbo customers accounted for 40% of new Credit Karma members since deal closed. And as you We expect the boost here to be more seasonal in nature matching our tax season. We're going to accelerate Credit Karma Money with TurboTax.
This year, we integrated Credit Karma Money into the TurboTax filing experience, offering approximately 38,000,000 TurboTax customers, The opportunity to deposit $105,000,000,000 in tax refunds into a Credit Karma Money account. We also integrated Credit Karma Money with QuickBooks Payroll, offering all the benefits of Credit Karma Money to the 16,000,000 employees Paid by QuickBooks payroll and allowing eligible employees to deposit $232,000,000,000 in payrolls into a Credit Karma Money Verified income is a critical component of lending decisions. With consent, this Intuit consumer data will help ensure members are getting the right and best Product recommendations, while helping ensure partners are getting the very best customers for their loan products. We're uniquely positioned to do all of these things through Combination of our data and the power of our platform. Together, we have a customer base of approximately 121,000,000 people.
40,000,000 Credit Karma members are active each month and return to our platform on average 5 times a month. 89% of them are on our app in our mobile devices. We have over 55,000 tax and financial attributes per member. We have an AI platform with With 35,000,000,000 daily machine learning predictions, we have connections to over 24,000 financial institutions And we have a net promoter score of 76. Together, we provide consumers a powerful combination of unique capabilities, allowing us to offer customer benefits at Unprecedented speed and scale.
Each year financial institutions spend 1,000,000,000 of dollars on marketing. For virtually all of those companies, There's a target customer based on their financial attributes. Do they have a high credit score? What's their income? Do they own a home?
Have they recently purchased a car? Just to name a few. On Credit Karma, our financial partners win because we help our members understand how likely it is that they're going to be approved for our financial products before they apply. With Lightbox, members who apply for products through Credit Karma have more than doubled the average approval rate for credit cards booked outside of our platform. This saves our partners money in the form of declination letters, incremental data costs and brand, not to mention nobody likes to be declined.
Our partners are able to update their offers near real time and get qualified customers. Now our members win because we're able to match them with financial products that are personalized for their financial When they apply for a product to Credit Karma, they have a high likelihood of approval. The average consumer has no idea what products they qualify for. And as an example, 81% of subprime credit card applications are rejected. So on Credit Karma, members don't waste I'm applying for products they aren't qualified for.
This personalization and certainty drives member engagement. Our Credit Karma wins because when a member is Proof for a financial product that we recommend, we typically get paid. We also build further trust with our members. Over time, we create a virtuous cycle. As we have more offers on the platform, we attract more members.
And as we do this, we believe we'll remain one of the most effective and efficient channels for our financial partners, allowing us to gain share of wallet within mature verticals and to grow into new verticals. Our strategy and business model focuses on helping solve our members' financial problems This unlocks the large opportunity for durable growth going forward. Our strategic focus is to grow the core, including credit cards and personal loans, Expand growth verticals including home loans, auto loans and insurance and developing emerging verticals focused on digital money offerings such as our savings and checking Across these three verticals, we see a TAM of $85,000,000,000 And looking at just our core verticals, which includes cards and personal loans, we have about 5% share of the transactions today.
So how are we
going to do this? First, by expanding our penetration within growth and emerging verticals, Both as we provide our members personalized offers and as we evolve our Credit Karma Money offering. 2nd, by growing our share of our existing members' transactions. Today, our members take out approximately 1.2 financial products per year, meaning they originate 1.2 new credit card, auto loan, mortgage or other trade guide. Now, not all of these transactions are on our platform and we see an opportunity to increase our share of these transactions by driving higher engagement.
And lastly, we see secular tailwinds as more originations occur digitally, allowing our partners to better target the customers they seek versus Other channels and methods like direct mail. Credit Karma is an important foundation for us as we execute against these opportunities. Not only can we go after the $32,000,000,000 TAM we see in the emerging verticals, but Credit Karma Money is key to driving more frequent engagement with members. This is critical to engagement across our growth in core verticals as well. So how does this virtuous cycle translate into revenue?
Well, our business model is relatively simple and driven by 3 key metrics: the number of members we have, how often they engage And the average revenue per monthly active user. We increased our members by adding new verticals such as home, auto and savings. The great part about all these new verticals is they're effectively driven by the same credit and financial data that powers our core verticals. In regards to our return rates, we build engaging and innovative products that help consumers solve pain points. For example, direct Dispute allows members to dispute inaccuracies in their credit report directly and digitally.
ID Protection scans the dark web for stolen data and identities. Our credit simulators helps people understand one of the most abstract ideas in finance. This focus on driving value for our members is essential to our brand and the trust that we've built with our When we get the first two right, we find that average revenue per month increases because we have more credibility and often have more data than the banks offering the products. As we increase our data platform, our average revenue goes up because the AAI platform really understands what members are in market for based on their behavior. Lastly, proprietary technology such as Lightbox makes our platform the most efficient, ensuring that we are able to match the right lender with the right member.
Looking ahead, we have a large platform today with more than 121,000,000 members or roughly 1 in 3 Americans. The two key drivers of our long term growth rates are MAUs, which we expect to grow 6% to 8% and the average revenue per MAU, which we expect to grow 10% to We expect the average revenue per MAU growth to be driven by factors including the frequency of visits, transactions for MAU And revenue per transaction. Putting this all together, we expect these drivers to fuel long term Credit Karma growth rate of 20% to 25%. To close, the problems that people face with their finances aren't new, but Credit Karma is uniquely positioned to create a personal financial assistant that offers new ways to help consumers Find the right financial product, put more money in our pockets and gain access to expert financial insights. We're really proud of the progress that we've made, but we're never going Stop working to help our members make financial progress.
Thank you for your time and I'm going to pass it over to Michelle.
Thanks, Ken. Good morning, everyone. Thank you for spending part of your day with us and for your support of Intuit over the last year. I'm going to share how our AI driven platform strategy translates into our financial results and how our financial principles continue to guide our thinking. Similar to what I've done in the past, let me start with a look back.
On the left of the slide, you'll see the key objectives we outlined at last year's The right side shows how we performed against those objectives. Our performance in 2021 was strong across each of our businesses And we achieved our goal of double digit revenue growth with 25% growth at the company level, including Credit Karma, which contributed 11 points to growth. Our combined platform revenue, which includes QuickBooks Online, TurboTax Online and Credit Karma, grew 39% to $6,600,000,000 in fiscal 2021. And we grew GAAP operating income by 15% and non GAAP operating income by 31 for the year. We also remain pleased with our ROIC and consistent increases in our dividends.
Now Sasan mentioned earlier that we've taken our Aspirations and turn them into bold goals for 2025, because we believe we can aspire to even greater things. And the goals are around prosperity, reputation and growth. Our prosperity goal is to double the household savings rate for our customers. In the United States, this rate is 14% and for those on our platform, it's 17%, which is approximately 1.2 times the average For small businesses, we want to increase the success rate by 10 points above the industry. According to the Bureau of Labor Statistics, the 5 year survival rate for small businesses is 50%, close to 50% of businesses fail within the 1st 5 years.
The 5 year survival rate for QuickBooks customers was 69% in fiscal 2021. On reputation, we want to be the best in class as one of the most reputable companies in the world and we've made significant progress against our reputation goal. You'll notice Our reputation score in fiscal 2021 went down slightly from last year, mainly due to a tough macro environment. But our score remains Higher than many of our tech peer companies whose average score was down 6 points from last year. And lastly, we're growing our customers and accelerating our revenue growth.
We use our financial principles to guide the decisions we make. Let me provide a bit more color 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. You'll notice that we added ARPC We'll see growth here in addition to customer growth as we're increasingly focused on growing higher value customers.
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. While we're not driving towards a particular level of annual margin expansion, we are seeing 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, Considering acquisitions or as we invest more deeply into our core technology platform, this threshold is key to making all internal investments that will deliver for years to come. 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 And then finally, we managed to a conservative investment grade balance sheet that can sustain our business through all types of economic cycles. And this has served us well in the recent past through the pandemic, which allowed us to lean into Emerge even stronger. I mentioned in my opening that our combined platform revenue is driving accelerated revenue growth and we expect this will remain the case going forward.
In 3 years, we expect more than 80% 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. As we've shared before, we have a highly predictable revenue model and more than 80% of our revenue this year to come from existing customers. And with 95% recurring revenue, Mailchimp should increase this after the transaction closes. Customer growth remains an important part of our strategy across all of our businesses.
Starting with QBO, on the left side here, you'll see total paying customers. This includes QuickBooks Online, This fall, we made a decision to transition to a subscription model for our desktop lineup with the 2022 release. This means we will be exclusively selling our desktop offerings as a subscription beginning in fiscal 2022 and no longer be selling desktop units. We've already been seeing our customers gradually migrate to subscriptions, which allows them to be on the latest version of the software, while also providing access to customer success for an improved customer experience. Once again, our total net adds grew in fiscal 2021 And our desktop base remains relatively sticky, but we continue to see the majority of customers who are new to QuickBooks choosing QuickBooks Online.
On the right side, you'll see we grew total QBO subscribers by 16%, excluding subscribers from the discontinued TurboTax and QuickBooks Self Employed bundle. And we grew our highest value subscribers, more than 20 points higher than overall QBO subscribers. As Alex shared earlier, we're opening up new opportunities for growth by broadening who we serve, how we serve them and what we serve them with. 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. Moving on to the consumer group, we continue to see traction with our goal of growing our share of total tax returns. This year again was unusual with the late opening of the tax filing season and the delayed IRS filing deadline. But we're pleased to drive growth in our share of IRS returns by approximately 1 point to 31%. We continued to transform the $20,000,000,000 assisted segment with TurboTax Live, Accelerating total customer growth by nearly 100%.
This contributed to an 8% increase in average revenue per return this season. TurboTax Live is now a meaningful revenue contributor to our business and we continue to see plenty of runway ahead. We also grew the base of customers paying us nothing by more than 6% this season to over 17,000,000 filers. Moving to Credit Karma. We have a large $85,000,000,000 TAM with significant opportunity to increase penetration in each of the 3 verticals that Ken described earlier, With just 5% share of credit card and personal loan transactions on the platform today.
The business exited the year with revenue And the team is focused on continuing to drive growth through innovation. On the right side, you'll see the key drivers of Credit Karma's revenue growth. First is members, which reached an all time high of 121,000,000 and grew 8%. 2nd is average monthly active users, a measure of engagement, which ended the year at $41,000,000 and grew 6% and third, average revenue per monthly active user of $28 Which grew 29%. As we innovate for our members and expand beyond core verticals and into the growth in emerging verticals, We expect to drive higher member engagement and higher average revenue per monthly active user.
Everything we do is customer back 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're making regarding customer and revenue growth. We see an increase in our ARPC this year across all of our businesses. As I mentioned earlier, we're increasingly focused on growing higher value customers And we're seeing traction with this strategy as we expand into the mid market, virtual expertise and omni channel.
Going forward, we expect QBO Worldwide ARPC to continue increasing. In the U. S, this will be driven by our maturing and increased monetization via online services and higher value offerings like QBO Advanced and QBLive. 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 saw an increase in ARPC due to the mix shift of customers from outright units to subscriptions And mid single digit growth in our mid market desktop enterprise solution, which we expect to continue. And in the consumer segment, we expect See an increase in ARPC as we continue to transform the assisted category. Durable revenue growth And disciplined investment have driven our operating income growth historically and we remain focused on both going forward. On this slide, you'll see our long term Expectations for the P and L, which are unchanged from last year. We expect each expense line to be flat to down as a percentage of revenue
over time as our platform evolution enables new drivers
of operating margin expansion. Form evolution enables new drivers of operating margin expansion. However, we acknowledge that GAAP operating income will grow Slower than revenue in fiscal 2022 due to the decisions we made around stock based compensation and the impact of Credit Karma. We're confident these are the right decisions to drive long term growth. A key element of our financial principles is to grow Operating income dollars faster than revenue.
And as we lean into our platform strategy, we see the opportunity for margin expansion over time. We are 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 efficiently serve our customers leveraging AI. And our go to market capabilities leverage a common infrastructure to effectively target and manage the sales and marketing process efficiently.
At a high level, our approach to investment has not 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 Bats And 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. Now, I'd like to provide some additional context around our operating margin expectations.
As I shared during the fiscal Q4 2021 earnings call, we continue to see opportunities to leverage the platform and drive margin expansion over time. However, our fiscal 2022 guidance implies GAAP operating margin declines in fiscal 2022 versus fiscal 2021. This is due to an increase in the stock based compensation expense. There are 2 elements driving stock based comp expense higher in fiscal 2022. First is the investments we're making in stock comp to attract and retain talent, which is driving more than 50% of the increase year over year.
And second is the full year impact of the Credit Karma acquisition. Our fiscal 2022 non GAAP guidance implies operating margin expands about 60 bps. This marks a point of expansion on average each year since fiscal 2019. It's important to us to be effective stewards of capital. 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 4 years, we've returned approximately $4,000,000,000 to our shareholders through share repurchases and dividends. We repurchased approximately $1,000,000,000 in shares during fiscal 2021 and I'll touch more on repurchases in a minute as this remains an important tool to return That can't be invested profitably in the business. As for dividends, our Board declared a 15% increase in the dividend for fiscal 2022. 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 shared in the past.
That 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 this Processed by utilizing a smart grid to drive various levels of repurchases 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. Subject to market conditions and other factors, our aim is to be in the market every quarter.
Looking ahead, we're pleased to be guiding double digit revenue growth of 15% to 16% for the company in fiscal 2022. This guidance is what we released back in August, so there's no change this year. We exited the year with strong momentum across our businesses and we expect to continue as we make our way through fiscal 2022. Here is our guidance for operating income and EPS. No changes here versus what we communicated in August.
We remain focused on making the right investments to drive durable growth Our businesses and remain committed to growing operating income dollars faster than revenue over time. Moving on to the next slide, I'm very excited about our momentum. And as you've heard from Sasan, we have many innovations across the horizon that are not only delivering strong results today And tomorrow, but 3 years plus out. We've planted the seeds for the future as we focus on durable growth across our business. In summary, we had a dynamic fiscal 2021 and are set up to continue our strong performance for fiscal 2022 and beyond.
Our AI driven expert platform unlocks opportunities to better serve customers across our businesses as we focus on offering them the products Services that solve their biggest problems. And we're excited about Mailchimp strengthening our capabilities and accelerating growth after close. I look forward to connecting with you all throughout the year and keeping you apprised on our progress. And now, I'll pass it back to Kim.
Thank you, Michelle. We'll be starting Q and A soon. We'll be taking live questions from sell side analysts. If you're not a sell We'll take a quick 5 minute break before
we start Q and A.
Welcome back. We're ready for the live sell side Q and A. To ask a question, please click on the reactions button towards the bottom of your Zoom screen, Then select the raise hand icon to be added to the queue. All other investors can ask a question using the submit a question button in the agenda. We will try to take as many questions as we can, but we will be prioritizing live questions, so we may not get to everyone.
As the queue forms, I want to highlight that all of today's presenters are available to take your questions. Sasan will either take your question or direct it to a member of his team. Okay. Let's get started. Our first question comes from Siti Panagrahy.
Siti?
Thank you. Thanks for hosting this event and kudos to Kim and her team. So I have two questions, Starting with QBO, QBO customer base grew almost 16% in fiscal 2021. That was pretty impressive during that pandemic time. And also, I think ARPC grew 13%, which I assume mostly driven by mix shift to the higher Steve Rodarte.
So as you're looking into FY 2022, what sort of trends are you seeing in new business acquisition to drive that QBO base? And also are you expecting the same kind of mix shift in the QBO base for ARPC?
Great, Citi, thank you for your question and very nice to see you. First of all, the way we want you all To be thinking about your models and the way we think about growth is, we expect customers to grow between 10% to 20% And ARPC to grow between 10% to 20%. If you exclude what's coming into our family with Mailchimp, The businesses that start brand new are not immediately the businesses that began to use QuickBooks. There is a lag time Between new businesses and when they start using our platform to do things like estimating and invoicing and getting paid, etcetera. And so we are really benefiting as you look back the last 18 months and the great momentum that we have right now.
We're simply benefiting from more and more customers Shifting to virtual solutions, accelerating shift to using online and ultimately Really looking at QuickBooks as a platform to be able to fuel their growth. And so we expect that momentum to continue. Now what's very exciting is when we join forces with Mailchimp, we'll actually be a position to help even businesses that 1st, start out their business because they're trying to figure out how do I get my business online? How do I get a website up? How do I get my store up?
How do I actually market my business on digital platforms? And so we're going to now be able to leverage the power of Mailchimp To help customers get their business started and then ultimately help them with things that matter most, which is invoicing, getting paid, access Capital. So that's the way you should be thinking about it. But the headline news is our momentum continues and we would expect this year that we will be in the range of 10% to 20% customer growth and 10% to 20% ARPC growth.
Okay, that's great. And then another follow-up to QuickBooks Payments, if you think that seems to be a very powerful platform that you have with your own payment processor as well. Right now, you mostly use it for QuickBooks customer. But what sort of opportunity you're seeing on the payment side now that you have Mailchimp and Credit Karma? Basically, I'm thinking about like now you have Commerce with Mailchimp, anything like consumer payment, you see the opportunity to leverage In both that platform.
Yes, sure. Maybe let me tee it up and would invite Alex, if he wants to add to this perspective. First of all, I think Alex did a wonderful job of laying out really our money platform and all the innovation that's happening across money movement from e invoicing to making payments easier to helping you access capital, to giving you business banking capabilities with QuickBooks Cash And of course, all the employee management capabilities through our payroll offering. And so we are really positioned based on The investment in the prior years and the innovation that you heard from Alex and Rania and Cassie earlier, We're very well positioned to help small businesses with all of their money needs. Now the beautiful thing is, as you asked, When Mailchimp comes in, we can ensure everything is payment enabled.
So that if you have a purchase button on the website, You can ultimately have it all payment enabled and leverage all the payment capabilities that we have across the company. With that said, let me just see, Alex, if you'd like to chime in.
Yes, absolutely. So those examples that we have from the entire investment That we've made over the years with Money Movement in general will allow us to accelerate what we're getting with Mailchimp as well. So just to give you a couple of examples, Sasan used The example of a commerce website, Mailchimp also allows appointments. So you can imagine someone being able to create an appointment and actually purchase online with an embedded Purchase flow, as well as just being able to have an email being sent out or some sort of engagement where now They can actually take payment right there embedded in the experience. So we think those opportunities to come together will create a lot of interesting Synergies for
us. Great. Thanks for your question, Citi. Next question is from Brent Thill.
Thanks, Sasan. As a small business owner that uses Intuit, I think we can all dream of a lot of Solutions that we can consolidate onto your platform with the Mailchimp front office to back office. Now when you think about just The low hanging fruit and the excitement around this, how would you frame kind of the first wave of integration and what you think you can achieve? And I'm curious if you could also maybe Michelle or someone else just follow-up in terms of some of the financial profile of the company. Yes, there's in terms of profitability and where they're at today and ultimately kind of how you see this going forward financially.
All right, Brent. Well, thank you for your question and very nice to see you. Let me set the stage and then I'll invite Alex to see what I've missed in this Opportunity that we believe is fundamentally game changing for our customers. One of the things that we are very excited about is Alex, His team and the Mailchimp team have declared a very clear set of priorities that are all about acceleration. And the three priorities are 1st and foremost, to create a one platform where you can grow your business and run your business In one place.
Now for the customer, it will be seamless. And we've actually begun this process months ago when we actually started As partners with Mailchimp, integrating them onto the platform. So from a customer perspective, it'll be very seamless and it will deliver against the tasks So they want to complete, but that's the first priority is to create in essence one platform. And it's really about the magic that will happen behind the scenes Where the power of the data, both the customer data and the purchase data will be in one place, so we can fuel the insights and the decisions of the Small Business. So that's the first priority.
The second priority is taking that game to upmarket. As you know, about 2 years ago, we declared with our global online platform, QuickBooks Advanced, to move to mid market and the progress has been staggering. You heard this from Kelly and Bobby earlier. And we will now take our combined growth platform to the mid market. And the need is significant in the mid market.
And frankly Mailchimp is where we were several years ago where sometimes they lose some of their larger customers To others and but they actually have all the capabilities that you need to go to market today. And so that's going to be the second priority is really winning and disrupting mid market, which is where it fits Yes, into our Big Bet 5. And the third is a stat that you heard both I and Alex talk about earlier. 50% of Mailchimp's customers and revenue is outside of the U. S.
And other than very important work that they've done to localize the platform, They've actually not spent much time in their go to market efforts. And so we are excited with our 3rd acceleration priority to really Accelerate a global acceleration, both in the U. S. And outside of the U. S.
So those are Our three acceleration priorities that we've really galvanized our teams and the Mailchimp team around what we want to execute. And again, the foundation element It's all about the data and the technology. So that's what our plan is. That's what our focus is from day 1. And Alex, I just I invite you if there's anything more you want to add to our game plan.
Yes. Thank you, Sasan. So I mentioned previously the opportunity we have to bring our money Into the Mailchimp user experience. Let me share a little bit about the other direction as well. We have over 8,000,000 customers in the QuickBooks ecosystem And over 2 thirds of them say that getting customers is their number one challenge.
Well, they're actually using QuickBooks As sort of their proxy CRM today, we have over 4,000,000,000 customer records stored within QuickBooks. But other than being able to send an invoice or an estimate, We really don't enable our customers to engage with their customers, to be able to prioritize them, to be able to find out who their high value customers are and engage with them In a CRM or any type of conversation, that's what Mailchimp is going to be able to enable us to do. Take those 4,000,000,000 customer records And suddenly give our customers the ability to have a conversation, understand who their best customers are, be able to target them in the right way, be able to have a single source of truth For their customer record as well as their business. So really it is expanding our capability to be able to help our customers not only run their business, But grow their business.
And maybe if I could just add a few things on the financials that you asked about. First of all, after close, we will share More around not only what you can expect in terms of guidance, but the financial profiles. But the few things I would want to remind us of that actually gets us very excited is, First of all, it's a highly reoccurring business. It's a subscription business just like QuickBooks is. Dollars 800,000,000 growing at 20% in Fiscal year 2020 and actually quite profitable.
And this showed up in what we communicated when we made the announcement that The three priorities that I just mentioned, a few of them will actually take a bit more investment, especially on the marketing side. That's already included in our thought process moving forward. And therefore, we believe that it will be accretive in the fiscal year that we are in. So it tells you a little bit about the profitability and the scale of the platform.
Great. Thanks so much for your question, Brent. Next question is from Michael Turrin.
Hey there. Thanks again for hosting, informative as always. Michelle, you spent some time just discussing some of the margin trade offs and what's driving some of the near term dynamics there. Can you also just as part of that discussion And talk about the use of M and A, the appetite as part of just taking advantage of the opportunity sets you have in front of you with some of those near term Margin impacts and trade offs that you're seeing?
Hi. Thank you for
the question. Yes, We're very excited about the opportunities that we see going forward for continuing to Leverage the platform that we have and to be able to expand margins in the future. We see that across The company, across multiple P and L lines, whether that's in technology, customer success or in our go to market areas. And we're very excited about that. And we do believe that there are also opportunities, as you've mentioned, for M and A.
We look at M and A as An opportunity to whether we're adding talent or we are looking at filling out our roadmap, But we do see more opportunities for that. First, we would like to get Mailchimp closed, which
we expect to have closed at
the end of Q2. But We do think that we will have opportunities going forward. As we've seen with Credit Karma and with Mailchimp really being able to focus on some of the Key innovations that we think we can make a lot more progress with from an acquisition standpoint versus developing inside.
Thank you.
Thanks so much for your question, Michael. Next question is coming from Kirk Materne.
Okay. Thanks very much. And I'll echo the thanks for the presentation today. Sasan, I was wondering if you could just talk a little bit about The global nature of the opportunity in your view, you mentioned that Mailchimp is bringing you obviously a business that's a little bit more balanced, I guess, from an international perspective. Greg mentioned obviously the opportunity to go after the opportunity to consumer more globally.
How are you thinking about the international opportunity maybe today versus a few years ago? And what are sort of the how are you measuring Success from an international perspective, so that when you talk about powering prosperity around the globe, that last part of the Praise really resonates with people. Thanks.
Yes. Thank you. Thank you for your question and very nice to see you. There's Two dimensions that maybe I can use to paint the picture. The first one is we are very intentional about leveraging Our investments across horizons, horizon 1, 23.
And when we look at our international investments, Some of the investments by geography fall into different horizons. And horizon 1 again is more 0 to the next 18 months. Horizon 2 is 18 to 36 months and then Horizon 3 is 36 months plus. And so when we look at Canada, UK and Australia, They actually fall into a horizon too. And we view those countries as countries that where there's product market fit.
Now there's never a destination with product market fit. There's always an opportunity to fill out your platform, which is what we're doing in those three countries. But really the key success measures in those countries are continued customer growth, Seeing our share, which means we're serving more and more customers. And ultimately, we have a different expectations on LTV to CAC and the revenue that we would expect From those countries. And then when you look at countries like France and Brazil and what we put in bucket of rest of world, H3 ideas are all 36 months out, which means we're really continuing to focus on Solving the most important customer problems, net promoter, customer virality, and we have a lower LTV to Expectations in those countries because we're really focused on creating a network advantage.
And that means when you look at our rest of world bucket, We are actually we have more countries that are now in compliance from an accounting platform perspective in rest of world. And we use that as a really experimentation and testing bed. And depending on what we learn, there can be new countries in ACE3, which eventually Come and become Horizon 2 Countries. With all of that said in terms of how we think about international, and by the way, we are more excited about the possibilities in Today than we were even a couple of years ago because we believe that one, it truly serves our mission and truly It is a growth opportunity for the company. When you look back 5 to 10 years from now, we expect more of our revenue to be outside of the U.
S. Than it is today. And Mailchimp really propels that. We I know we've shared our excitement around this, but frankly we've been surprised as to The fact that 50% of customers and revenue of Mailchimp are outside of the U. S.
And what they've really done is localize it. Now I'm downplaying that a little bit. The only reason they have that kind of attraction is because the platform is self serve. It is easy to use, no sales, no customer Success, but customers, small businesses are using it to be able to grow their business. And I think now with the combination of the 2 of us, International becomes a lot even more interesting than it already was because one, we have now new ways to penetrate the market Where we can just help customers get up and started and then when they need all the other capabilities of the QuickBooks platform and what we can do with the data, it positions us And much more strongly outside of the U.
S. As it does in the U. S. Than it did yesterday. So that's how we think about international headline news is Big put long term potential, we're excited about it and we strongly believe that with Mailchimp and QuickBooks becoming one platform, It really paints a whole different picture of what the opportunities are as we look ahead.
Thanks, Hassan.
Very welcome.
Thanks so much for your question, Kirk. Next question is from Scott Schneeberger.
Thanks very much And very well organized as always. Appreciate it. Two questions, Sasan, probably for you and or Greg. First on TurboTax, the second one on staffing in TurboTax Live and QuickBooks live. So the first one is I was noticing in the slides that the TurboTax key drivers for growth, that updated this year versus years past where It looks like you anticipate getting a bit less growth from category share, do it yourself category share Going forward and a little bit more lift from revenue per return, which Greg did mention, just want to know a little bit more about what is behind that?
And then for the second question, I can repeat it later if it's helpful, but just get it out there quickly. If you could speak to TurboTax Live this season And just relative to the pandemic season before and more normalized upstart seasons prior to that, how what your lessons learned were from Staffing that, how you're looking at that going forward. And then the QuickBooks Live part because it's less seasonal and something you may be encountering now. Obviously, labor shortage is an issue. I would think not for your business, it might with work from home, it might be an opportunity, but any issues with QuickBooks Live staffing and developments there?
Thanks, Sasan.
Great to see you, Scott. Thank you for your question. Let me maybe tee it up and I would like for you to hear from Greg as well and maybe at the end, Both Greg and I can tag team on your question around the live platform in general. First of all, we are 3 years Plus in declaring 2 things that are very important strategic That's that we've made. One is about going after under penetrated segments.
The other is about transforming the assisted segment. Now there's overlap between the 2, But for us, they are distinct opportunities. And in that context, being several years in executing against that plan, What we continue to grow confidence in is the fact that we can serve these customers, we can Have a platform that becomes a better method than the method that they used to use, and these are just higher priced products and therefore that increases ARPC. I would just I know you hear almost the same thing from me in the last couple of years. I would just remind us, we're in the very early innings.
There is Almost 90,000,000 people that use the assisted method and there's over a $20,000,000,000 opportunity in the assisted And we're going into our 4th year with the live platform that not only serves the assisted segment, but also targets The underpenetrated segments. And so we have a lot of confidence as we look ahead, not only continuing to lean on our learnings and our experimentation And the velocity and the pace of innovation to serve these customers, but also to be able to increase our ARPC, Which is why you saw what Greg shared at the end, changing and increasing our ARPC expectations as a Lever to grow the business. With that said, Greg, I'd invite you to please add and share your perspective.
Yes, Hassane. Maybe just reinforcing your point, what we see is that our average revenue per return is growing, our mix is becoming more favorable, Particularly as we go after segments like self employed, investor, and with full service, that's going to open up opportunities for us to even grow average revenue Per return even faster. The math associated with that yields a little bit change in our sensitivity Where we might have been at 3% to 5% before 4.0 DIY growth, now it's at 2% to 4%. But the value of our average revenue per return growing NOW has gone up from where it used to be from 3% to 4% plus. So fundamentally, the growth drivers are really exciting.
Our growth is driven by innovation and our outlook of 8% to 12% growth and biased more towards double digit growth in the future It's absolutely exciting for us.
Maybe now I can take the question that you asked around experts and the live platform. This is one of the wonderful things about having Mark and his team that looks after the live platform across the company inclusive of How we think about experts? I think it's important to state that this is all technology driven and AI driven. And so this is really about How do we leverage technology to make our experts efficient, effective at what they do? I start there to say that actually informs not only the number of new hires, but also their experience.
With that said, their experience really sits on the incredible culture that we have. One of the reasons the Net promoter of our experts went up is, they love our culture, they love what we stand for, they love how Much focus we have on our employees and growing our employees, but also how customer back we are and the innovation that they see on the platform. The more we can make our platform smarter, the more we can deliver insights for them, the more we can make it easier for them to do their job, the more they actually want to be a part of our platform. And so we continue to have a number of experts that return from the prior year because they love being part of the Intuit culture and delivering for our customers. They also love the variety of the work because now they can help customers in tax time and some of them can help customers that are small businesses being part of the QuickBooks Live platform.
So we have a lot of confidence in the ramp that we expect in bringing experts on board. And part of that confidence is actually the culture that we have as a company, what we stand for and the experience that they have on our platform. Now last thing I would say is our expectations are very high for experts because this is now you're truly talking about service as a software, Where they are the interface to customers and the standard in which we expect them to deliver for customers, the value that we expect them to create Is very, very high. And that not only inspires them, but it actually attracts great talent that wants to be part You know, of a high performing culture. So net net, it's not easy to find the right folks, but we have our ways and methods and our culture brings a lot of them back, which is a wonderful place to be.
Thanks very much.
Thanks so much for your questions, Scott. Next question is from Kartik Mehta.
Two questions. First is on big picture. Obviously Mailchimp gets you into the front office and you talked about the opportunity there. I'm wondering from a other product standpoint, what other products you think you could really leverage that QuickBooks infrastructure you have?
Yes, Kartik, good to see you and thank you for your question. I would just say for the time being in context of our strategy, in context The bets that we declared across the company, our focus, which is really important when you look at an acquisition, We're very intentional about focusing on acceleration versus just integration and we're very focused on momentum and momentum is created by Doing what's right for each employee and making sure that there is a real impact for customers. And so I think the first part of the answer I would give you is, we have a lot of capabilities on the cookbooks platform. I think Alex And his team, when we went through the platform Immersion, demonstrated all the capabilities that we have. And now bringing on Mailchimp, it really expands Our capabilities to help customers grow their business and run their business.
So really our focus right now is to create this one platform where it becomes seamless for customers And the real innovation will actually happen behind the scenes with the data and AI. And then we will continue to see where that leads us over time and what other Capabilities we want to build internally, what that may mean in terms of gaps that we have. But right now, looking ahead, We love the capabilities that we have coming together plus all of the internal innovation, which you only saw a small glimpse of it today. And so we're right now just focused on our own roadmap, Bringing these capabilities together to make a huge impact for customers and of course in the future if there's any other big gaps and opportunities we'll share with you all.
And then just on Credit Karma, I was wondering what kind of pricing opportunity there is, especially today when you see credit card issuers really Fighting each other to get that next customer. So I'm wondering over the years what kind of pricing opportunity Credit Karma Has had and what they have going forward, especially with Lightbox coming online.
Yes. You know what, this is a great Question for Ken, I'd love for you all to hear from him. So let me turn it over to Ken.
Yes, thanks for the question. So our Primary focus is not on pricing, it's actually on the consumer experience. So for us, we focus our time effort, our technology on Is ensuring that those 80% of subprime consumers are getting declined for a product that they get approved and they get a good experience. What we focus on is the certainty and the simplicity. What we find is that most consumers aren't taking advantage of great financial products.
There's too much friction in the space, there's too much uncertainty and the pricing transparency doesn't exist. So for us from a technology perspective, from a data perspective, from a partnership with And everything that we do together, it's about that mission. And that's where our primary focus is today. And we think with that, we'll be able to drive Greater market share, greater share of transactions and that's what's key for us. That is our focus is driving benefit to our members.
And the pricing piece Come over time, but key and central to our thesis is our member, our focus on our members and driving great value for each and every one of them.
Well, thank you. And Sasan, good luck to the Clippers.
Thank you. Good luck to the Cavs.
Thanks so much for your question, Kartik. Next question comes from Ken Wong.
Great seeing everyone today. Glad you guys could host this event. I had a question for, I guess it could be Sasan, Greg Or Ken, try to tag as many of you guys as possible. During the immersion session, we saw a demo where a TurboTax Live rep advised the Client on the potential tax implications on our Credit Karma mortgage. Do you see potential opportunities the other way where perhaps a TurboTax Live Accountant might interact with a customer to cross sell some of the Credit Karma functionality just for kind of a general The consumer wellness purpose, whether it's again, maybe mortgage, maybe it's insurance, maybe it's wealth management?
Yes, Ken, very good to see you and I actually love your question because one, I will tag team. I'll turn it over to Ken first and then Ken I can hand it over to Greg. What I love about your question is, it's very much customer back and that's why we are Putting the capabilities of these assets together and creating one platform, because our ultimate goal is to help customers make ends meet, It's to help them connect to financial products that are right for them and ultimately be able to find ways to put more money in their pocket inclusive of the largest tax refund And have expertise and advice at their fingertip and it could be all automated or it could be an expert that Comes online to engage customers with whatever questions they have. So maybe with that as context, because you are in essence, your question articulates Our strategy and the areas of our priorities. Let me turn it over to Ken to maybe take the first part of your question and then Greg can chime in.
So the short answer is absolutely. The longer, more detailed answers. And when you think about it, most of us realize that we can save money just simply by refinancing. But if you think about the friction associated with refinancing a mortgage, for example, we know that we have to go and gather our W-2s. We know that we have to be credit qualified.
We know we're going to have to send Back and forth around their paychecks and how much in terms of other dollars that we have. And that's a friction point that keeps consumers from doing what they should do. This is where the AI platform, the partnership with Intuit and TurboTax really make a difference. We actually have all of that data centralized and with the consumer's permission, We can look into that and we can give you specific information as to you will save $75 a month. And if you think about that, that's a lot of money for a vast majority of consumers.
And you will see that over this duration and this is the process that you need to do. And by the way, that process is greatly condensed because we already have that information On our platform and because you've been a Credit Karma member and a TurboTax user for the last 10 years, that makes a difference. And I think that ability to give concise, Personalized targeted information to each specific instance, that is the AI platform and that's the power that what Credit Karma brings together and that's what we're really excited about.
And Kim, just to pick up with that, when you look at the questions around expertise, With our live platform, we have an opportunity to syndicate that experience and actually have our experts be available at the point of need. In your example, you mentioned around investments. Well, I think if you think about the specialization of our experts and making them accessible On a platform that maybe already exists or even a platform that we're expanding into, the live platform that the experts we have become a True opportunity for us. That's why you see us talk so much about matchmaking, making sure that the experts we have, the experts we hire Our specialized, they're trained and they're prepared to have those kind of experiences and leverage our technology platform to amplify not only their experience, But also there is humanity, so they can deliver that benefit of confidence at the point of need as well. So we do see those kind of opportunities for us in the future.
Got it. And if I could maybe ask Sasan or Alex a follow-up question just more on the Mailchimp side. I think the last Year, year and a half, we've seen a lot of data restrictions. You've got Apple introducing fake emails into iOS. And just wondering there's a potential headwind here for the Mailchimp business or do you see this as a potential opportunity as you guys start to blend some of these data sets Longer term to drive value for customers?
Yes, Ken, thanks again for your question. Let me get us started and I'll turn it over to Alex. 1st and foremost, the real power of what we are doing across the company Is leveraging our customers' data with their permission to actually fuel their success. And I think there are 2 things that are important in what I just articulated. 1 is permission, the second is success.
And when you think about specifically your question around Mailchimp, All we're really doing is combining the customer data and the customer list with purchase data. So if Alex Where to come to the website and become a customer, we'll actually know if Alex bought something, what products Alex bought. And if Alex didn't buy, if we should go back to Alex and make sure that we understand why he didn't or offer him discounts. So that's really The way we leverage the data that doesn't really fall into the crosshairs of data privacy or security or some of the What you cited around the recent Apple announcement. But with that said, Alex, I'd invite you to add your perspective.
Sasan, I think that's absolutely right. It's one of the things that gets us the most excited about the power of the Mailchimp platform. They are leveraging data and AI connections that are Far beyond just email. And so again, as a very specific customer example, if it's Cyber Monday and You're a small business and you're trying desperately to nail that Cyber Monday opportunity. The ability to target exactly who in your customer base are the right customers.
Send them a targeted message, whether it be email or text or however social method you want to Understand who's showing up, what they're putting into their cart. If they're abandoning their cart, leveraging that data and information to now be able to follow-up with them And then have all of that data after Cyber Monday, the purchase data come back through QuickBooks and through a combined end to end innovative platform To be able to now say, okay, what am I going to do the next week and the next week and the next week, that's the power of the data and the power of the platform and that's what gets us excited.
Great. Thanks so much for your questions, Ken. Next question is going to come from Alex Zukin.
Hey, thanks guys for taking the question. I want to Sasan, I want to First, let me start with you, just a really big picture question, because something you've been kind of saying over and over during Today's event has stuck with me and it's the fact that you're going from a piece of software that businesses and consumers Ultimately used to react to events to actually software where you're enabling both people and businesses to act And people generally pay more for software that enables them to act versus just react. So And connecting that to a financial metric, how are we to think about ASRPC growth Over the course of time, if you look at all the items that Michelle laid out, where do you see the most Opportunities to drive that ASRPC growth in the future?
Yes, Alex, good to see you and it's Wonderful question. And I'll just state 2 things. 1, it's actually the core of the shift that we are making And frankly, we are well into getting to the other side of that shift, which is going from really a tax An accounting platform to a platform that you can run your life and your business on the platform. And the second is a shift from a platform that is more inter data, and you'll know how you're doing, to a platform that delivers insights, value and answers. That is why the core of our strategy and investments is about an AI driven platform is to not only make that shift from the breadth and depth of what we provide customers, But to actually do it for them.
And ultimately what that will mean for shareholders is Over time, durable accelerated growth, much more of our growth even being Highly reoccurring and subscription based than it is today, but more of our services being used. One of the things I talked about earlier Today, when I was going through our FY 2021 reflections, one of the things that gets us excited about the future is we have such an incredible opportunity for deeper penetration Across the board. And even with Mailchimp and coming into our family and Credit Karma, whether it's deeper penetration in the financial products that provide deeper penetration and helping you run your business and use our CRM tools, so deeper penetration with payments and payroll, a deeper penetration with tax Revenue. And all of those things will translate into highly reoccurring business, Durable accelerated growth, which means more of our services will end up getting used and that drives ARPC. So that's How it all will come together in terms of sustaining and accelerating long term growth?
Got it. And I'm sure we'll start parsing your words about durable accelerated growth quite soon. But I want to ask about Credit Karma because I think coming in even before you made the Mailchimp acquisition, one of the things we're all Kind of waiting to hear and we've heard today is around all the synergies that you're unlocking leveraging the Karma platform Across the consumer, the SMB and the free business, there are free users that you have. And I want to just get your sense for from as a management team, Where have you been most surprised by some of the synergies that you've been realizing to date across those business lines?
Yes, thanks for the additional question. First of all, I would just start by saying, there's what you choose to declare, Then there is the management team actually believing as a team that the opportunity is there to Fundamentally power prosperity for our customers. And so one of the things I really enjoy watching is how Ken and Mariana and Greg and Alex And Mark and the team interact with respect to what is possible and what we can do for our customers and of course then that role models Excitement and clarity for their teams. That's really, really important because you can declare things, but you also need excitement and buy in, Which is why, by the way, was not one of the first things on our list at the beginning when we declared our acceleration priorities, It's actually why Ken and Alex got together and said, hey, let's actually roll out the Credit Karma platform as part of the payroll platform Because there are things that we can do together that we otherwise would have never thought about until a couple of years down the road. So that I just wanted to start with What excites me is about how the team is actually working together in context of the priorities.
I'll share with you and I'm going to then turn this over to Ken. I'll share with you the biggest thing that I've actually learned from Ken and really the history of how they've developed their platform, which gets To your question around the biggest surprises, we look at opportunities to combine our platforms across the company to deliver for customers. And that is contextual awareness Matters. So one of the biggest things that we've learned is Credit Karma's history as you learned from Ken is they went from credit Scores to credit card products, personal loans and eventually auto insurance, home loans, etcetera. But the contextual awareness of Why am I here and why would I look to Credit Karma for auto insurance matters a lot.
So that means that when we Launch TurboTax as part of the Credit Karma platform or Credit Karma as part of the TurboTax platform, there are things that we need to do to ensure that the contextual awareness And understanding and benefit is there for customers, so they begin to engage in what you have launched. So I want to first share sort of my biggest learning and surprise, which by the way It's going to help us as we think about any new innovation across the company. But with that said, Ken, I'd love For the team here to hear from your words.
Yes. So, well, first, I think there's the data synergy, right? And I think that is the opportunity that we talked about from a lending perspective To actually make transparency, to make certainty, to make simplicity happen on behalf of our members, I think that is very important. Next, when you bring in all the capabilities, right, you think about $100 plus 1,000,000,000 of tax refunds each and every year. When you think about the $230 plus 1,000,000,000 worth of QuickBooks payroll, that is a hugely impactful aspect of Credit Karma Money.
But let me bring it back to the most important piece. What we're able to do with the platform is we're able to transform a consumer's life. We're finally able to bring together all the disparate parts of the consumer's financial life And put it into an AI platform, that actually changes the way that consumers think about money, changes and removes all the friction, Removes all the reasons why we don't do what's best in our own self interest because there's too much work associated with it. And I think that is the biggest synergy and I think that's the biggest opportunity because I think we're going to be the 1st To realize that opportunity, to do it at scale and most importantly, deliver impact to our members and customers, That's what I'm most excited about.
Great. Okay. Thanks, Alex, so much for all of your questions. This is going to come from Matt Pfau.
Hey, guys. Thanks for taking my question. And just wanted to follow-up with The comments around the acceleration for Credit Karma as well as the synergies. So the long term target you put out there is 25% or 20% to 25% growth. I believe that's a bit higher than what the business was growing pre acquisition.
When we look at that acceleration, how much of that is driven by some of those synergies with other areas of Intuit's business that you called out Versus gaining more traction with some of the non core products for Credit Karma.
Yes, thank you for your question. It's really both and I'll put it in context of that one Slide that we shared with all of you around horizons. We there are things that are really driving significant Impact and growth today in Horizon 1, there are things that we expect will be far more material in 18 months And things that will be far more impactful 36 months out from now. And so really the long term expectation of the 20% to 25% Growth really takes into account all the possibilities of both new verticals and leveraging The distribution and the data and the platform capabilities of Intuit that now Ken and his team can leverage, but also the The synergies that we walk through. So all of that is what informs the long term expectations.
And Frankly, as we prove out things that are 36 months out from now, then we'll have a far better idea of what's the possibilities Even beyond the long term expectations that we've shared with all of you.
Okay. Thanks so much, Matt, for your question. Next up, we've got Brad Sills.
Great. Thanks, guys. And thanks for all the information today. Great to see you all. Question on Mailchimp here.
When you think about the profile of the customer that values the front office with the back office suite, Does that resonate more with that mid market? In other words, could this accelerate your move into the mid market with QuickBooks Online Advanced? They obviously have a higher international footprint. Maybe that suggests that these are larger businesses, larger organizations that could also you could pull up market For QuickBooks as well. So just any commentary on how this might affect that move up market with QuickBooks Online advancing to the market?
Thank you.
Yes, sure. Let me kick us off, but I do want you to hear from Alex. The short answer is absolutely. But what we're very excited about is Mailchimp actually Helps us deliver for all small businesses because what we've seen is, if a small business is starting out, they ultimately need ways to get started. They need to get their business exposed.
They need to get A website, they need to be able to get on different channels and whether they're service based business or product based business. And then of course, as you become a mid market customer, the need even becomes grander and more pertinent and more important. So the short answer is absolutely. We see it as a We always saw mid market as a huge opportunity. It becomes even more exciting as we think about QuickBooks and Mailchimp coming together, But it really also positions us to serve all customers from small to big, which is actually one of the reasons why we chose Mailchimp.
There are Several distinct things that got us excited about Mailchimp. 1 is they're just pure scale, customer scale, data scale and technology scale. 2, it's just it's the breadth and depth of their product portfolio that allows us to do things that we never imagined possible. And ultimately, you combine that with QuickBooks, it allows us to serve both product and service based businesses, Small to mid market. But Alex, I'd love to invite you to add to this.
Sure. So I would say something very similar. First, the simplicity of the product That Mailchimp has been winning with for many, many years really gets us access to customers at their very beginning, right? Just when they're starting their business, They want to get online. They want to get those first customers.
We can start with them and then grow all the way up. And it's very similar to how we thought about QuickBooks. We declared a couple of years ago when we launched QuickBooks Online Advanced that customers love the platform. They love using the interface. They shouldn't outgrow us.
And we can build the features and functionality to be able to allow them to continue to scale with us. Mailchimp has done the same thing. They started with a very, very simple product, Self-service onboarding, but now have built the products and the technology to enable those businesses to be able to scale. I think as we think about the mid market, the data integration is going to become more and more critical. Being able to tie together who are my best customers and what is their purchase data Is what real mid market companies are going to need.
And we're going to be really the only platform out there that allows you to connect customer and purchasing data together And be able to get the insights that you need to be able to grow your business. So we think this will accelerate us into the mid market and we're excited to see those integrations. Good to hear guys. And then one more if
I may just on Mailchimp. When you think about the go to market for both products, it's primarily product led, QuickBooks And Mailchimp. QuickBooks, you also have that CPA channel, the influencer channel that you're famous for, a huge advantage. Are there any unseen channel synergies here between Mailchimp and QuickBooks, either on their side or on the QuickBooks side, Where you could accelerate through a channel that's already available. It could be digital or it could be expert network channel.
Yes. Let me I'm happy to take that. So first of all, you're right. We have an accountant channel that has been A huge advantage for QuickBooks Online. Mailchimp has a similar channel when it comes to their marketing advisory business.
They have 20,000 partners from a channel that they've launched actually quite recently that are now helping businesses figure out how to grow. They may A small business may not be a marketing expert, but they want the advice to be able to come in. So we have channels on both sides. There's actually synergies between those two channels as well. All of those marketing agencies are small businesses.
Many of those accountant businesses are trying to grow their customer base. So we think there will be interesting channels there. We also think just in general, you've seen us expand how our franchise is being viewed by customers. We are now that place That people are coming to for AI driven expertise. And this may be not just how to run your business, but to grow your business as well.
Thank you so much.
Great. Thanks so much for the questions, Brad. We are now going to take our last question from Kash Rangan. Kash?
Hey, I've got 6 minutes with you guys. That's awesome. Congratulations on a terrific Analyst Day. Thank you, Kim, And thank you, Sasan and Michelle. I hope you can hear me okay.
First, can you hear me okay?
Yes. Perfect.
Make sure that I'm not speaking into the wind. All right. Okay. First question is, as I listen to the story today, I'm drawn to some really big numbers. You talked about that $30,000,000,000 of fees that consumers pay in the banking industry.
It feels like Intuit could potentially start to disrupt What we commonly believe to be a huge consumer finance subsidiary, maybe the acquisition of Credit Karma has awakened your consciousness To more opportunities in what we consider to be traditional banking, maybe you could just expand your thoughts on that, especially as we mull over your fiscal 'twenty five and beyond And secondly, Sasan, I wanted to get your thoughts on the whole movement of front office with Mailchimp. Do you envision Mailchimp going up market Alongside QuickBooks Online Advanced. And also as you get thought to how it's played out in the industry, Generally, the front office and back office players have been largely separate and it's been NetSuite and Salesforce in their respective domains. How do you change that industry order and make sure that Intuit can be the defining front office and back office platform for small businesses? Thank you so much.
Kash, great to see you. And I've always wanted at least 5 to 6 minutes to answer a question, but the team always tells me I'm long winded. So Let me take your second question because then I'm going to turn it over to Ken for the first part of your question. First of all, depending on the size of the small business, we think this whole front office, back office is It's the old way to think about it, not the new way to think about it. And that's customer driven, not so much just Intuit driven.
When you spend time talking to these small businesses and these businesses that are in the mid market that have several 100 employees, Because of the power of the cloud, they are actually more than 75% of businesses are actually looking To have the power of their data, their transactions and how they run their business in one place, so that they don't have to bounce back and forth Between multiple platforms that don't talk to each other and the talking is about their data, because they actually want to know what is going on in their business, Who are their customers? Who's the most profitable? Where are their opportunities for wallet share increases? How do they compete with other small businesses or Some of the larger channels. So when we take what the insights that we are seeing and learning from our customers And particularly what's happened in the last almost 20 months because of the pandemic.
We have seen a significant acceleration to customers Embracing virtual solutions, online solutions, omnichannel solutions, all in one place. And in fact, When they see that their data is in different places and they can't leverage the power of their data, it's one of their biggest frustrations. So looking ahead, it's no longer about front and back office. And the great news is that behavior is changing from the customer, which actually makes it easier for us to really solve Their problem because their mindset is already there. And that is the magic of QuickBooks and Mailchimp coming together.
And what you've heard, Alex and I and others describe today, which is truly creating a platform that's customer backed, that puts the power Of insights and fueling your business in your hands. So we see that as a big opportunity for the mid market And frankly, all businesses, but particularly for the mid market as we look ahead. And we don't believe based on everything that we see and we see it a lot with QuickBooks Advanced, We don't think we have a lot of convincing to do. It's actually what they want and we're going to now be able to deliver for them what they're looking for. With that, let me turn it over to Ken to answer your first question.
Yes. I love the note about disruption in the space. I think in many ways we grew up in the category. And the way that we think about the opportunity is probably a little bit different than everyone else. From our perspective, people are reinventing banks and that is great.
But what a company hasn't done is really become the champion of the consumer. And by that, I mean, there is so much data that is being used to determine the eligibility, the profitability of consumers that bank use, machine learning, all the platforms, all the jargon That we understand as business people, consumers don't have that same access. So our perspective from Credit Karma and our idea of disruption is What if you put that power in the hands of the consumer? What if you take all of that data, the machine learning algorithms, the ability to save money And you put the algorithm to help consumers save money rather than maximize profit. What type of world do you get?
What type of relationship do you create with your members? What kind of value do you instill on the economy? That's our version of disruption. And that's really what we're going after day in and day out is the focus How do you drive value for our members? And we think that in a way will drive inordinate value for Intuit and that is our strategy
Awesome, Ken. Thank you. And since I think that was the last question, All of you have been so thoughtful in thanking us for today. On behalf of the whole team, we would like to thank you for investing the time in today, participating And your wonderful questions, both in the platform immersion and the questions that you just asked a moment ago. So It was great to see those that we saw on the screen.
Be safe, be well and we look forward to talking to you again very soon. Thank you everybody. Bye bye.