Intuit CEO Sasan Goodarzi said generative AI is increasing the company's total addressable market as TurboTax users flocked to its data, AI and virtual expert platform. Now the company has learned from its genAI efforts, Intuit will double down on what's working.
"TurboTax live revenue is expected to be $1.4 billion representing approximately 30% of total consumer revenue growing at a significant scale. This gives us confidence that we can digitize a very manual, disaggregated and high price assisted category," said Goodarzi on Intuit's third quarter earnings call.
Under Goodarzi, Intuit has built out its data platform on AWS and then scaled into generative AI. He said genAI financial assistance played a big role in the TurboTax experience. Goodarzi added that 24 million customers used intuitive AI to explain refunds, answer questions and check for accuracy.
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"GenAI is working at scale for both our customers and our AI powered experts. I'm excited about what we're working on for next season to accelerate innovation and deliver even more customer benefit," he said.
Now that Intuit has one tax season of generative AI enhancements in the books, it can revamp experiences and add new models as needed via Amazon Bedrock and other services. The current generative AI models are much more advanced than a year ago.
Goodarzi said Intuit is looking to AI to reinvent customer experiences and drive revenue growth. He reiterated the big bets for genAI on TurboTax and QuickBooks.
"To increase our investments in the outline focus areas given the green shoots we're observing, we are taking a hard look at what we can stop doing and where we can reallocate investments to accelerate top line growth while remaining committed to delivering operating margin expansion in fiscal year 2025 and beyond," said Goodarzi.
Goodarzi's remarks were on Intuit's third quarter earnings call. The company reported third-quarter revenue of $6.7 billion, up 12% from a year ago, with earnings per share of $8.42 a share. Non-GAAP earnings were $9.88 a share.
As for the outlook for the fiscal year, Intuit expects TurboTax Live revenue to grow 17% to $1.4 billion and average revenue per return to increase 10%.
Overall, Intuit said its fiscal 2024 revenue will be between $16.16 billion to $16.2 billion, up 13%. Non-GAAP earnings will be $16.79 a share to $16.84 a share. Small business and self-employed group revenue will be up 18% and consumer revenue up 7% to 8%.
More on genAI:
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- Generative AI spending will move beyond the IT budget
- Enterprises Must Now Cultivate a Capable and Diverse AI Model Garden
- Secrets to a Successful AI Strategy
- Return on Transformation Investments (RTI)
- Financial services firms see genAI use cases leading to efficiency boom
- Foundation model debate: Choices, small vs. large, commoditization
