Intuit Investor Day 2019 – Sasan Goodarzi


– Good morning everyone. I’d like to welcome all of
you in the room and on the webcast to Investor Day 2019. So we are very excited about
today, it should be a fun day. Let me just kick off the
three objectives that we have for today. The first one is we want to share with you
the very large and durable customer problems that
the company is pursuing. The second is proof points,
that our strategy is working. And the third is we’ll
give you a glimpse into our secret sauce, which starts
and ends with our people that are accelerating
incredible innovation across the company. So with that, let me get started. So, you all have heard
Brad talk about this slide. We are a 35 year old company. That falls in love with
what’s most important for our customers and never the
solutions that we create. Which is why we’ve
reimagined the company in the last thirty five years and
we’ve never been afraid to disrupt our own profit pulls to deliver for our customers. And that is the essence of
why we’ve been able to lead through four significant platform shifts. And, because of that we’ve
had a great track record of delivering great results
for all of our stakeholders. This is a company with
incredible reputation and an incredible culture where
employees want to be apart of solving the most important
problems for our customers and we’ve been recognized
externally for that. And because of the incredible
work of our employees we’ve accelerated customer growth and, if you’ve been a
shareholder, you’ve been a very happy camper. Now, Scott started this
company thirty-five years ago, Brad did an incredible job of
leading us for eleven years and we have the distinct
pleasure of building on this incredible foundation as we
look at the next chapter. And I am blessed to be able
to serve with this team. And as Kim mentioned, they’re here. And you’ll have an
opportunity to speak with them during the breaks and during
the platform immersion. But this is a team that I’ve
served with in all parts of the company and or handpicked
from outside of the company and they have incredible
traits, but one of them is that they are all customer obsessed. And together we have defined
what’s most important, that we’ve got ten thousand plus
employees in our partner’s focused on solving. And that is, every customer
has a common set of needs. They’re all looking to make ends meet. They’re all looking for the
largest pay check of the year, which in some of the countries,
starting right here in the United States, is the tax refund. They’re trying to find
ways to save money and get out of debt. For those that have been
bold enough to decide to be an entrepreneur and to go
into business for themselves there’s an addition set
of needs that they have. And those needs are to be
able to find customers. To get paid for their hard work. To get access to capital to be
able to grow their business. To be able to pay their
employees, and lastly, but most importantly from a compliance
perceptive, to be able to ensure that their books are right. Which, by the way, gets more
and more stringent when you go outside of the United States. These are very large durable
problems that we’ve focused the entire company on. This, along with five trends
that I want to hit on, are enormous catalyst for growth. The first one is the fact that AI is reinventing new experiences. Now AI is actually not new. It’s been around for more
than thirty years, it’s just become something that many
talk about this day and age. But it’s always needed
access to large data sets and compute power. And now both are available
in this day and age. And it’s very relevant to the
problems that we try to solve for our customers. When you think about how we
insure that we deliver the largest deductions for our
customers when they are doing their taxes, what questions are
relevant for them to answer? How to actually get paid, how
to get them access to capital because we believe that
they can pay it back, how to automate all of pay roll,
how to ultimately help them grow their business. AI, in essence, can automate
everything that gets done today and it can also take the
predictions that we have to make today for customers,
and automate all of it. So, this is a catalyst for growth. The second one is access
to digital expertise. (Audience member sneezes) First of all, bless you. Those that have been born
after the smartphone, they expect digital help. Whether it’s chat, whether it’s video, they expect it instantly. But now, folks even my
age, across every industry are expecting digital help. This is very relevant to our industry. Cause if you think about the
biggest problem that we’re trying to solve for our
customers, it’s confidence. People want to get help
with running their business. People want help to get their
taxes done and we believe this is an enormous catalyst for
growth, marrying technology and digital expertise with technology. The third is about the fact
that every consumer is trying to make ends meet. They are looking for free
consumer financial apps to help them run their life. Whether it’s investing,
whether it’s improving their credit score, whether it’s
having access to financial products that are right for
them, credit cards, personal loans, home loans, they are
looking for ways to be able to run their financial life, which is why “Fintrac” is exploding. We view this as a catalyst for growth because we have fifty million
customers trusted brand and they look to us to help
them run their financial life beyond taxes and accounting. There’s a significant rise
in Omnichannel commerce. E-commerce is going three times
faster than Brick and Mortar forty percent of small
businesses are product based businesses and they are
looking for help to be able to sell their products online,
to know what customers are profitable and to be able
to understand how their business is performing. We view this as a catalyst
for growth because we’ve primarily been serving
service based businesses. And then, last but not least,
small businesses have always legged embracing the cloud and
they have legged consumers. And we are now seeing a
significant shift for those that are in the mid-market, we
define that by small businesses that are ten to a hundred
employees wanting to shift to the cloud because they see
that as a catalyst to be able to run their business,
grow their business, and manage their profitability. So, with the context of
these large, durable customer problems that we’re solving,
and these key trends that we believe are catalyst for
growth, let me walk you through our game plan. And it starts with our
mission, and it ends with our metrics and how we measure
performance across the company. As you’ve heard us talk in
every interaction, our mission is to power prosperity around the world. When you walk through middle
of America, middle of UK, France, Canada, Australia and
every country that we’re in that we serve, people
are trying to figure out how to make ends meets and
prosperity is defined differently by every individual. Some are simply trying to
just put food on the table. Some are trying to help
their ailing parents. Some are trying to help the community. Our mission is to power their prosperity. And we are guided by the
values that have been in place for years. There’s eight of them. Two of which have not changed. One is doing right when nobody is looking, integrity without compromise. The other is leaving the
planet a better place than we found it. Now, we’ve taken our aspirations
and we’ve turned them into bold golds for 2025,
because we believe we can aspire to even greater things. And the goals are around
prosperity, reputation and growth. We are now in a place where
we’ve declared a goal as to how we wanna measure our mission. Our goal around prosperity, is we want to double household savings. In the United States is seven percent, by 2025 if you are on our
platform we want you to be saving at fourteen percent rate. Fifty percent of businesses
have a success rate. Which means fifty percent fail. Anyone that’s on our small
business platform, we want to increase that by ten points,
and if that number moves over the years, we always
want to be ten points better than those that are not on our platform. To measure ultimately
how we power prosperity around the world. We want to be best in class. As one of the most reputable
companies in the world. Because what we do, every
interaction that we have, every choice that we make
matters and it impacts our reputation and we want to
be known as best in class, just like we are when it
comes to employee engagement. And last but not least, we’ve set some very bold goals for 2025. I can’t share the details of it with you. But what I would tell you
today, we have fifty million customers, we aspire to have
two hundred millions by 2025, and we also have a growth rate target that we’ve set internally. And this informs our
three in one year plan, our True North goals. And as you know, ’cause you’ve
heard Brad talk about it for years, we are very intentional
in terms of running the company focused on delivering
for employees, to create an environment where they
are can do amazing work, because by doing that they
will deliver incredible experiences for customers and
doing that with our partners drive shareholder goals. As you can see, all the metrics are empty. Staying true to tradition, we
share with you what we measure but not the actually goals. But please know, that we have
very specific goals for each of these stakeholders and
it’s what me and my team get held accountable for, to
deliver for the company. Now with these bold goals,
we have a crystal clear strategy that we are pursuing. And the essence of our
strategy is focused on three core customer benefits. It’s about putting more
money in their pocket. It’s about eliminating work
and drudgery, so they can focus on what matters to them. And it’s about complete confidence. If you forward the clock
twenty years from now, these three benefits will still matter. And the essence of our strategy
that we’ve been talking about, it about an AI
driven expert platform. Let me unpack that very quickly. The platform element is
truly to be an open platform, where we and others can build
on the platform to help solve customer problems that I mentioned. The second is about
significantly accelerating the application of Artificial Intelligence. We’ve defined Artificial
Intelligence as machine learning, knowledge engineering and
natural language processing. For us, machine learning is
about taking rich data sets that are customer’s data sets and
building decision engines and algorithms to automate all experiences for our customers. Knowledge engineering is
about turning rules and the relationships between data into code. And natural language
processing is about taking the interaction that all of you
have in this room and others with products and services and revolutionizing those experiences. We have shifted a significant
amount of our resources to revolutionize experiences because of AI and very specifically those
areas that I mentioned. And then, last but not
least, is expertise. The largest customer
problem that our customers face is confidence. No matter how easy you make
the platform, they still want to know somebody’s going
to be there to help them. Whether it’s through chat,
whether it’s through video, whatever the means may be. And so we view that the marriage
of technology and people on our platform will revolutionize
experiences and will give us the opportunity to digitize
the entire service industry. Hence, AI driven expert driven platform. With that context, let me share
with you the five bets that we actually shared with you
in the February earnings, but let me make them more explicit. Five bets that we’ve
declared across the company. Now, these bets in essence are priorities. These bets go after the
largest customer problems that matter most. And we believe that they are
the largest drivers for growth for the company, so we can have
a healthy company ten years from now, as we do today. Let me walk through each of the five. The first one is about
revolutionizing speed to benefit. When a customer comes to us, whether it’s to help them do their taxes, or they simply want an
invoice and get paid, or they want to pay their
employees, whatever reason they come to us for they are looking
for that benefit instantly. If they are managing their business in Word, in Excel or in Google
Sheets, we’ve got to deliver benefit instantly or they’ll
go back to the old way. We have a hundred and fifty
five million customers that come to us and a hundred
and ten million of them are not our customers. Hence the size of the opportunity. The focus here is two things, never inner data and accelerating
the application of AI to revolutionize experiences
because we believe that there’s a big conversion opportunity to turn all one hundred
and fifty five customers, folks that come to us, into customers. So revolutionizing speed to
benefit for our customers. Now, no matter how great
we make this platform, whether it’s an app we’ve
built on our platform, or it’s an app somebody else
has built on our platform, by revolutionizing speed to
benefit we believe that it’s also critical to connect people
to experts on our platform, which is our second bet. The largest problem our
customers face is confidence. It’s why just in the United
States there are eighty six million people that choose to have somebody else do their taxes. It’s why small businesses go
to pros, enrolled agents or bookkeepers in the United
States and in every country that we serve to help them run their business. And we believe that the marriage
of an incredible platform that focuses on speed to
benefit and having people connect with experts on our
platform can revolutionize experiences for our customers. Hence what we’ve been talking
to you about Turbo Tax Live and Quickbooks Live. Whether it’s helping you get
set up, whether it’s giving you help along the way, whether
you’re trying to run your business or do your taxes,
or run your financial life or if you want all of us to do
it for you, we will connect people to experts. The third bet is about
unlocking smart money decisions. As I mentioned earlier,
customers are looking to make ends meets, every customer that we serve. They live pay cheque to
pay cheque every week, they are trying to figure out
how to put food on the table, and they’re actually
looking to figure out how do I best save money? How do I ensure I’m
actually getting the best personal loan, auto loan? What can I do to improve my credit rating? We have an opportunity
to move beyond just tax and accounting, to truly
unlock smart money decisions because we have fifty million
customers, a trusted brand, and with the permission of
our customers leveraging their data to deliver benefit
beyond taxes and accounting. To be far more relevant than we are today. The fourth bet is about
being the center of small business growth. Fifty percent of small
businesses go out of business in a five year period. And the largest reason
they go out of business is cash flow issues. We want to be the place where
in your pocket you have an assistant that helps
you run your business. Whether it’s do you want us
to help you get paid faster, do you want an access to the
money based on the invoices that are coming in, we can
give you access to your money earlier than even before it comes in. You’re going to run out of
money by Friday, would you like access to capital, to be
about to make your payroll. Can we just make your
payroll payments for you? We believe that we have an
opportunity, and you’re gonna see this in the platform immersion, to an essence being the center
of small business growth so they can actually focus
on their growth and not on running their business,
which is not where their core competency is. We also want to transform the
Omnichannel Commerce world. Forty percent of small businesses are product based businesses and we have an opportunity
to help them sell online, know which customers are
profitable, and being able to connect that to their
inventory so they can run their business in one place. Being the center of small business growth. And then, last but not
least, is about disputing the small business mid-market. We have defined that as
customers that have a between ten to a hundred employees, these
are customers that in some ways are very similar to
very small businesses but in some ways are very different,
are like mini corporations. They sent out a lot more invoices,
they have more employees, they have to there’s a lot
more payroll transactions and what they are looking for
is to be able to run their corporation, very mini
corporation, compared to the small business that they were. So before it may have been
just Mary and I running the business and now there’s a
CEO, a CFO, a head of sales, a head of marketing, which means
there’s only certain people that can have access to invoicing. There’s certain people that can have access to payroll information. So, roles, permission, doing
things in volume matters a ton. This is a problem we’ve
solved on desktop, and we know how to play this game, and
we’re aggressively moving to solve it in the cloud, in the mid-market. Those are our five bets
that we’ve declared across the company. We’ve galvanized the entire
company around these bets. We’ve mobilized our investments
of focus on these bets. And this is our entire plan
on a page, with the bottom of the page the key metrics that we review. Please know that each one
of these metrics has a goal, we’ve just removed the
goals for your viewing. But, we know exactly what our
targets are and what we want to achieve for our customers. Now, we have saying in the company that life is about one
percent inspiration, ninety nine percent perspiration. So let me give you a quick
lens as to what we do to ensure that we can execute
against what we’ve delivered. And this is the essence of
our secret sauce, it’s been around for thirty plus
years, we just focus on strengthening every year. The first and the reason
why we fall in love with our customer problems and not the
solutions is because of the methodology that we teach. In fact, three years ago Brad
and Scott got out on the road and they trained every single
employee on the method of customer driven innovation
and design for delight. This is about a methodology
that helps us understand what problems matter most to our customers. Can we solve them well? And then the second is how we go solve it. Which is an essence designed for delight. We’ve trained the whole
company and now Diego, that you saw the picture of
earlier, you’re going to meet him when you go to the platform immersion, one of his measurements is to
ensure that everybody in the company is trained and applying
this methodology because this is part of our secret sauce. The second is Intuit’s Operating System. Which, in it’s essence,
what we focus on and how we run the company. When I took over earlier this
year, but when I was announced last August, I went out of the
road and talked to a lot of our employees and I wanted to
know what are the things that they most want to preserve and what they love about the company. I also asked “what do you
believe we need to improve?”. I got a long list of what they want us to keep doing and preserving. There are four things that
we’re focused on improving that came from the inside of the
company, and that’s what you see here, I’ll just
highlight a few of them. One of them is to take our
game to the next level, to be much more customer obsessed. And the second is having data and code win arguments, not opinions. And so that has informed
our Intuit Operating system and how we run the company. I’m not gonna go through the
details of this, but to simply give you some exposure that
we have a system in which we run the company. It starts in December when
we actually declare our six year plan, it’s what I
just walked you through, our 2025 goals. The bets for the company. We then agree on our three
in one year plan, True North goals and what we’re going to
execute in the year to come, and then we focus the rest of the year on premium, on execution. I’ll give you a lens into
one thing that we focus on. It is called our Operations
and Input goal review. Operations, in simply, is
looking at our CPI’s availability performance quality, how are
we delivering for customers. An input goal we define as
things that we are going to deliver against our
bets or core innovation. It could be deliver x, y, z in payments, deliver x, y, z in payroll, deliver x, y, z improvement
in Turbo Tax Live. We get the officers of the
company together once a month. An officer owns each input
goal across the company. And we review how we’re
doing against the operations of the company, and
how we’re doing against each of the input goals. And you can see that we have
a hundred plus input goals against each of the bets
that I just walked through, and a hundred and eighty
input goals that are driving core innovation across the company. I simply share this back
to the broader point, that we have a methodology
for execution excellence. Because that is what has made
the company great for the last thirty plus years. And it is ultimately what’s
allowed us to lead us through the four platform shifts,
starting with Scott and with Brad has lead for eleven years. And what we are excited about,
which is leading in the era of Artificial Intelligence and transforming experiences
for our customers. And it is this premium on
execution, if you look at the right hand side of the page,
that will allow us to deliver for customers, and build advantage. It’s about getting more and
more customers to use products on the platform, whether we
built it or somebody else, to deliver the benefit that
we’ve committed to them. It’s about ultimately using
Artificial Intelligence to automate putting more money
in their pocket, eliminating work and drudgery, and doing
it with total confidence. And it’s about the more
people we get on the platform, customers, experts,
partners, the more we create a network advantage. And it is this that will allow
us to penetrate a very large TAM that we have. Almost a two hundred and
fifty billion dollar TAM that consists of growing
the core, it’s financial management solutions and
taxes in the United States, both do-it-yourself and assisted, it’s about connecting our
customers to the ecosystem of services, payroll payments,
going beyond the taxes, and it’s about expanding globally. Let me end with where I started. We are a mission based company. We are a purpose driven company. We are guided by our values
and we have a crystal clear strategy and a set of bets that
we’ve galvanized the entire company around, and we view
everyday it’s about execution because that’s when we make the difference for our customers. Now, what you’re going to
experience the rest of the day, and I’ll bring Kim up in a moment, the bets that I just went through, you’re gonna experience what
that feels like and looks like so it becomes very real for you, both in the room and on the webcast. And then Alex and Greg will
come up here and bring all of this to life in terms of
how we deliver for customers in the segment. So there’ll be great to
catch up with you throughout the day, and with that
let me bring Kim back up.

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