Intuit Inc. (INTU) Earnings Call Transcript & Summary

Hello, everybody. I'm delighted to welcome Intuit to the conference. We're very fortunate today to be having Varun Krishna, newly appointed Executive Vice President and GM of the Consumer Group for TurboTax and the Consumer Group. Delighted to have you here, Varun. Thank you so much for joining us.

Absolutely. Thanks for having me. Good to be here.

Absolutely. So why don't we just start? You recently took on this job, this role. What was your previous role at Intuit?

Yes. So I've been with the company almost 7 years now. I recently was the Head of Growth for the Consumer division. And prior to that, I was the General Manager of our Mint business, and I originally joined the company as the Head of Product for TurboTax. And so I love taxes. I love TurboTax. I've been in the kind of the product world before that. Spent some time at Microsoft, Groupon and PayPal. And just have always kind of been interested in FinTech and how to take -- make products that take things that are complicated and mundane and make them sort of simple and easy for consumers.

Sure. That's great perspective. And so the role, I would assume it's similar to Greg's role. Any changes at all that you see in that responsibility?

Yes. I've been very lucky to be part of the Consumer Group for the past 7 years and so have been very deeply connected to our fundamental strategy. And so what I'm really looking forward to is just extending and building on that strategy, heavy focus on innovation, heavy focus on leveraging data, technology, artificial intelligence, just to transform the way taxes are done. That's a big part of our strategy already, and I'm just looking forward to building on that.

That's great. And coming off of the tax quarter that you reported a couple of weeks ago, nice results there. Maybe we could just start with that slower forming tax season that you called out heading into the tax quarter, actually heading into the Q2 results. What was behind that? What was that slower forming tax season that took the filings a little bit of time before we kind of caught up to what was a normal season?

Yes. I've been in the tax business for 7 years, and every season has a little bit of an element of unusual. But I would say just the past 3 years in totality were anything but usual. You have the pandemic. You have changing dates. You have inflation and so many factors. The biggest thing that we noticed this past season was just the overall IRS returns declined. And as we think about just through the quarter as we report up to July 31, it actually declined 3%, and then that had an impact on the overall category. There are 2 other dynamics that were also at play that were quite unusual this year. One was that we had a huge sort of influx of stimulus filers over the past years. And so many of those filers did not return this year across the industry. And then the other thing that we noticed was just a massive increase in extension. I think for the IRS, something like 50% higher extensions than any normal season. And then even within our own TurboTax base, extensions also doubled. And so a lot of procrastination, a lot of late filers, a lot of extensions. Those are some of the big dynamics on how this particular season played out.

Makes sense. And that 3% decline. What -- in your opinion, what drove that? Why would you see filings down 3%?

I think the biggest impact, as I shared earlier, we think is the impact of the onetime stimulus filers. So those are the users that just didn't come back. Yes.

Understood. And I think you also alluded on the earnings call -- the company alluded to do-it-yourself as a category. You didn't see the same share gains as you had seen in the past. If you could elaborate on that a little bit. Was that something type comparison that was driving that, if you can describe it?

I think, again, some of these are just correlated to that same macro around stimulus and extensions. But if you think about just overall IRS return growth, I mean, typically, what happens is every year IRS returns grow by about 1% whereas the DIY category grows by about 0.5 point relative to that 1% growth. If you kind of normalize that over the past 3 years, you would see sort of more normal growth. But we think that part of the reason that the DIY category was probably closer to flat this year through July is because of that decline in IRS and then also because of the impact of both stimulus as well as just a much higher volume of extensions.

Makes sense. Makes sense. And when you think about the category -- the DIY category and the opportunity to gain share from here, where do you see those opportunities?

Yes. So I think -- I mean, first off, let me just take a minute and just kind of unpack our strategy. And there are really 2 vectors to our strategy and growth for tax. The first one is that we want to extend our lead in do-it-yourself taxes. And what that's about is fundamentally leveraging data, artificial intelligence, automation and workflow to just change the way the taxes are done. And I'm really proud that, that strategy is paying off for us. In particular, when you think about how we've applied that toward what we call underpenetrated segments, which are segments like self-employed, investor, Latinx, we've started to see that strategy really starting to pay off. These are places where we had double-digit growth. We've had -- we've seen a massive growth in our investor segment, and so that's kind of where our focus is there. Our second vector and strategy is really to kind of go after what we call the assisted market. So these are customers that typically go to a brick-and-mortar tax store or a CPA or an EA. And they're kind of going after more of an assisted way of getting their taxes done. And so we've introduced a couple of new sort of virtual service offerings with TurboTax Live. That's our newest business. It's growing like crazy, and we're really excited about that because it's an opportunity for us to just use virtual services to be able to provide access to consumers using a combination of sort of automation and virtual access to an expert. And so that's sort of the second part of our strategy. And the reason that, that strategy is important is because if you look at the assisted market, that's a $20 billion total addressable market. There are around 88 million filers who typically file using an assisted mechanism. And we just see a lot of inefficiency in that space. We think there's a chance just to do something very transformative with services and to be able to offer a more disruptive offering that is easier to use, more convenient and just allows you to be able to do taxes with an assisted mechanism much, much better than what's available today.

That's great. And while we're on that topic, why don't we talk a little bit? We could start first with TurboTax Live. I think it's several years now that you've had the offering out. What have been some of the learnings from over the last several years? Where have you seen success? How are you driving adoption? Any color you can provide on the integration that you're at today and where that can be over time.

Yes, absolutely. I think we're extraordinarily proud of the TurboTax Live business. And one of the things that we're excited about is also that we are now at $1 billion in revenue. We have our customers and revenue are growing at 20% and 30%, respectively. And where I think the biggest opportunity is really around just continuing to increase the perception of TurboTax as a brand that has assisted services. For years, we have really marketed and invested in the brand and almost built a household neighbor on TurboTax that is very rooted in do-it-yourself. And as we've now introduced both TurboTax Live do-it-with-me, where you can basically connect with an expert on any aspect of your return and they can answer questions. They can review it for errors. They can give you confidence. And then we now also have a full-service offering where you can actually delegate the entire return off to an expert who can finish that return for you. Just kind of increasing the awareness and perception that we do have those offerings is our biggest opportunity. Another thing that I'll also share is that we ran a number of tests this season that are actually increasing our confidence in our strategy. And one of the things that we've learned is that something that really matters to consumers is just the speed of the outcome, the speed to getting your taxes done and then the speed to actually getting that refund. And so those are some of the learnings that are informing our strategy for next year. But we're very excited to see TurboTax at $1 billion in revenue, growing customers and growing revenue, and we're excited to continue to grow. We think there's a lot of addressable market out there that's very underserved in such a space, and we're continuing to invest.

That's great. And we see the TV ads before -- during the tax season on the assisted category. Would you say that TT Live is bringing in more new filers to the franchise? Or would you say it's more existing filers that are -- you're upselling on to TT Live?

Yes, yes. It's a great question. And I would say we're always interested in bringing new filers to our platform. A big part of our strategy is going after the assisted market where we're very underpenetrated as well as some of those underserved markets, self-employed, investor, Latinx, that we can talk about that are both in the DIY and the assisted category. So I would say new is definitely a big part of our strategy and how do we continue to attract new customers to what we think is a faster, easier and better way to do your taxes in assisted mechanism. But what's also great about TurboTax Live is it's great for retention. Oftentimes, a lot of people leave TurboTax because they feel that life has gotten a little bit complex. They move. They had a job change. They have a kid. They get married. They get divorced. They buy a home. And these are all things that erode confidence. And they sort of make you feel like, okay, well -- they get into investments, crypto, things like that. And what's great about TurboTax Live is it's also a solution for those customers that choose to leave just because they don't know that we have that expertise. And so by bringing that into the product, it's been a great driver to both retaining and strengthening our DIY business, but then also really attracting new customers from the assisted space as well.

That's great. And are there any learnings now that you've been at this for several years? You've got the CPA talent pool now managing more assisted-type scenarios. How does that lend to TurboTax Full Service? Do you feel like you have that quality of CPA talent pool such that now is the time to go after this? Any commentary on what comprises that talent pool, finding these CPAs? And how has that evolved over the last several years?

Yes. So I mean one thing I would just step back and say that we're building a virtual expert platform. That is a part of our company-level strategy that we call Big Bet 2, which is focused on connecting people to experts. Over the years, we have built up a huge community of experts, and that's been something that we've been able to tap into. And our expert network is very important to us. This is a huge investment. And one of the things that I'm very proud of is that we have very high loyalty among our experts. Year-over-year, they come back to us and they return to us. I think the reason for that is that we give them amazing tools, right? We give them tools that allow them to connect with customers, that allow them to do better error checking, that allow them to use AI and machine learning, that allow them to compare with other experts to collaborate. And so the experts are a big part of our strategy. We have thousands and thousands of networks in our -- of experts in our network, and we're going to continue to invest in that network to make it more robust and more capable. And our experts obviously are serving both our TurboTax Live do-it-with-me offering where they're available for more ad hoc questions and reviews with customers and then they also offer a full service as well where they can -- you can hand off everything to a pro and they can just get the returns as quickly as possible.

That makes a lot of sense. And we've seen TurboTax over the years really gain traction and share against tax stores. Now with assisted, that 88 million CPA assisted filing category, where is the initial focus? I mean why now? Where do you see the opportunity to disrupt? Why would a filer go from a CPA to TurboTax? What's the value proposition?

Yes. So again, I think part of it is if we -- a couple of things that we're seeing in the industry is that we know that consumers are interested in virtual solutions. Some of the things that we saw during the pandemic and over the past couple of years is there's a lot of stress around the brick-and-mortar experience. And so something that we've seen from consumers is just the demand for virtual digital solutions. And the reason for that is they're convenient, right? You can access them wherever you are. You can access them from your phone, and that gives you kind of more flexibility as a consumer. So that's kind of a big part of our strategy. The other thing is as we've learned from a number of experiments that we've run over this past year, can we offer an assisted offering at a disruptive price? And that's because we don't have to deal with some of that same overhead. And so, fundamentally, our strategy is to -- we pay a lot of attention to our customers. We try to figure out where the biggest pain points are. And if you look at the assisted market, we just see a lot of inefficiency in the way that the processes are. They're manual. They're expensive. And so as we apply our strategy from Big Bet 1, Big Bet 2 to basically bring AI and data to the forefront of the experience, we're both making experts more efficient as well as consumers. And then as we kind of create more collaborative experiences with experts, the combination of those things, we feel, allow us to create an offering that is more disruptive and inexpensive.

That's great. And you alluded to some AI initiatives on kind of the -- enabling the CPA and the experts. What about on the consumer side? What are some of the things you're doing to leverage data to kind of insert TurboTax at the right time for that upsell to TT Live or even full service?

Yes, yes. Let me highlight a few of the areas that we're focused on AI. And just again, just recapping that the Big Bet 1, which is our company-level initiative, is really focused on what we call revolutionizing speed to benefit. And what that means is leveraging data, automation, machine learning and models to improve workflow experiences of taxes. And there are a number of different areas in which we're implementing those technologies into our product. One of the areas that I'd highlight is something that we call AI-driven expert matching, where, based on your data, based on look-alike modeling, based on our understanding of experts that have specialties in those areas, our full-service offering will actually match you to an expert that is very tailored to you. So that's one example. We also use AI in our self-employed experience, specifically around industry expenses. We have a model that understands the most overlooked expenses that typically a self-employed customer may not know or may not remember, and then we present those to you. We use AI for error checking. We have an algorithm that runs at the end of TurboTax that compares to other returns to determine where the most common errors are applied. And we're going to continue to invest in more and more opportunities to leverage data and AI because, fundamentally, taxes are very data-driven. And so the tax product lends itself very nicely to being a sort of AI-driven experience, which is also, by the way, our company level strategy as well.

Makes a lot of sense. Thanks, Varun. On the earnings call and really in the last several years, you've focused on Latinx investor. Those are newer segments of the market. Can you talk about the effort there? Where have you seen this with us? And where does that -- where do those 2 categories go from here?

Yes, absolutely. When we look at what we call our underpenetrated segments, I would specifically just step back and highlight probably 3. I think the first is the investor category. The second is the self-employed category and then Latinx. And so I'll share a couple of different examples for where we're innovating there. Looking at probably across the board, specifically Latinx, one of the things we've invested in is our expert network and making sure that we have experts that are available in both Spanish and English. And so having experts that are personalized, that understand self-employed, Latinx as well as investors, is a big part of our strategy, so expert-level personalization. When you look at our self-employed experience, I mean we basically overhauled the experience from the icons to the navigation to the workflow. We've got the industry expenses AI that I mentioned to you. And so that's a big part of it. And so a lot of our self-employed customers, really about understanding how you manage those expenses. It's about understanding your specific industry, and so you'll see a lot more industry-level personalization that's gone into the product. We've also introduced this concept that we call guided workflows, where, if a customer is not very clear on how they want to navigate the product, we have like a little flow that just says, okay, here's step 1, here's step 2, here step 3. And so that's been something that's worked really well in TurboTax, and we've now extended that into the self-employed space. The investor space I'm really excited about because we've seen just -- and by the way, just I'll also share that across all of our underpenetrated segments, we've seen double-digit growth, and we're really excited about that. But we still feel like we're very underpenetrated. We still feel like there's an opportunity to drive significant growth in that space. But coming back to the investor space, a couple of the things that we've done. We have increased our level for supporting high-volume transactions. So for the investor, we can support up to 10,000 transactions now, which helps us kind of develop more to kind of high volume as well as retail investors. Also for crypto, we support over 4,000 transactions as well, which is something that we're starting to see more and more growth. I think we had 4x the number of crypto investors this year using our product, which is great to see just more of being able to capitalize on that growth trend. And then the last thing I'll share is that we have a new crypto import feature where you can basically connect to any number of crypto exchanges. And we've significantly increased the number of exchanges that we support. And the integration is very seamless. With a couple of clicks, you could import all your crypto data. And what's tricky with crypto is that there's a lot of gains and losses. The markets fluctuate quite a bit, as I'm sure we all know. And importing that data manually or trying to figure out how to upload a CSV is very cumbersome. And so because of this integration, we're able to kind of import that seamlessly, do the gains and loss calcs automatically. And what we find is that saves customers a lot of time, and they really like it. And that's why we've seen a lot of great adoption with that capability. So those are just some examples of new innovation that we've introduced across those underpenetrated segments that are really kind of focused on driving convenience, ease of use and just kind of a more seamless experience.

That's great. Thanks, Varun. That's great to hear. You've also talked about kind of a bigger push into that top-of-funnel lead, if you will, via web acquisitions. So if you could elaborate a little bit on the efforts there. And why the renewed focus now?

Yes, absolutely. I think just stepping back, as I mentioned earlier, the TurboTax brand has been marketed as a do-it-yourself brand for many, many years. And one of the biggest opportunities that we have is just to increase the awareness of the fact that, you know what, we are more than do-it-yourself. We're do-it-with-me, we're full service, and we have this amazing virtual expert platform. And so increasing top-of-funnel awareness for us is like super critical, and it's a big priority for us over this past year, but it's also an ongoing priority for us in upcoming years to kind of escape that calcification. A couple of examples of things that I would highlight are: one is we introduced a $0 Any Way offer, and this is really designed to help simple filers that had -- that wanted to kind of get into the TurboTax business be able to file for free. And that's full service as well as do-it-with-me. And that was designed just to kind of get lift heads and get folks to really understand that we have these capabilities as part of our TurboTax Live experience. Another thing that we have is our brand campaign this year, which was very focused on You do you (sic) [ your thing ]. We've got your taxes, right? And the concept behind that is just really just lifting the confidence of consumers to realize that, hey, tax prep doesn't require a lot of work. It's not a DIY-centric product. It's not a software experience. It's really handing off your taxes to experts. And so that's been a big part of our strategy as well. And the last thing that I would highlight is that what's really important, especially seasonally, is that you want to be where the consumer is when they're thinking about filing their taxes and in places of relevance. And one of the partnerships that I'm really excited about is the partnership that we have with the NFL. Some of you may remember that we sponsored the AFC, NFC Championship games. We were a big part of the Super Bowl. And I think we're excited about that just because we want to be more connected to consumers as they're thinking about taxes and to be sort of seasonally relevant. So those are a couple of examples of the things that we're doing to drive top-of-funnel awareness. This is a big priority for us just because, again, we have an amazing brand in DIY and extending that to represent more of what we can do now and the amazing capabilities we have it's a big priority for us.

Yes. Makes a lot of sense. And you've seen real solid ASP growth in TurboTax over the last couple of years in the high single digits. You've got the top-of-funnel initiatives, and you've got these premium offerings with TT Live and TT Full Service. How are you thinking about that metric going forward balancing those 2 dynamics?

Yes. So ASP is something that we do look at. And I would say probably the biggest contributors to ASP are the mix shift. So as we start to serve customers in the assisted category, specifically with offerings like TurboTax Live as well as TurboTax Live Full Service, that's driving more of a mix shift in a positive direction, where we're starting to see higher ASP. The other thing that's also driving ASP is us being able to serve more complex customers. So as you think about the self-employed customer who's having to do -- categorize expenses and engage multiple times per year, that's driving ASP. As you think about the investor category where you have, again, a more complicated customer, whether it's a retail investor or crypto, those are all examples of customer segments that are pushing our mix and our ASP higher.

Okay. Great. Let me shift gears to the competitive environment a little bit. You've been competing with Free now for years, effectively. And you recently saw the acquisition of Square, Credit Karma tax prep business. More free offerings are kind of coming into the market. We're seeing that. How has TurboTax effectively competed against Free over the years? And how do you see that dynamic changing at all, if at all from here?

Yes. I think stepping back a little bit, rather than thinking about competition, I think for us, we focus on the customer, and that's been sort of our philosophical ethos as a company is customer-driven innovation. I mean we believe in the philosophy, if you follow the customer and you understand the customer and you build a product that's right for them, you're going to win. And so for us, that is our focus. And so as we think about TurboTax, we think about TurboTax Live, as we think about full service, we invest in direct customer observation. We deeply understand the customer problem, and we try to build a solution that delivers the best value for them. And that is our competitive strategy. It's to focus on the customer. And we believe that as long as we keep doing that, we're going to have the best product in market. One thing I would say is that, again, we have -- as you said, we have been competing with different tax products for years and we've been competing with Free tax products for years as well. And one thing that I am extraordinarily proud of is that we are -- we have a great free product. And if I look at the last decade, 9-plus years, I think we've enabled something like 113 million consumers to be able to file for free. And I believe that, that is more than every other tax product -- software product in the world put together. So we're focused on the customer. We're focused on understanding their needs, delivering value and innovating. And that's going to be our strategy for competition.

That's great. Thank you, Varun. Why don't we shift to Credit Karma and that kind of cross-sell/upsell that you saw last year in the tax quarter? You saw it was pretty remarkable. In the first quarter of the acquisition, you saw some real nice upside in Credit Karma as a result of some conversion from TurboTax. Can you talk about what drove that? And how did that trend this year? And how do you see that dynamic going forward?

Yes, yes. I think, look, we're very excited about the power of Credit Karma and what it brings to Intuit. There are a couple of things that we did this past year. We connected TurboTax to Credit Karma. So when you file, at the end of post file, we give you the opportunity to connect into Credit Karma. And what's been great about that ecosystem connection is that we were able to grow Credit Karma customers by over 40% -- Credit Karma members, I should say, by a combination of the TurboTax funnel as well as the Turbo offering that we had last year that we also migrated to Credit Karma. What's also great about that experience is that it's not just about moving customers into Credit Karma, but it's about connecting the ecosystem and driving more engagement. So now that those customers are in Credit Karma, their tax refund and their tax insights can be used to drive more engagement with Credit Karma that they can understand more about their personal finance, they can build their credit and they can continue to engage. The other thing that we did is we also encouraged TurboTax customers to deposit their refunds with the Credit Karma money offering. And we're very excited about that because it enables them to get their refund up to 5 days earlier, kind of going back to that learning about speed. For a lot of customers, it's like I just want to get my taxes done. I want that refund money. I've got bills to pay. And so speed is a big part of what drives value with the Credit Karma money experience. And I think this year, we had 3x the number of customers that connected to that experience. And then -- and so -- and then the third thing that we did is that we also embedded the TurboTax experience into Credit Karma. And so Credit Karma members can actually connect back to TurboTax and then come back to us and file their taxes in the season. So we really think about this as sort of a connected flywheel that is powered by data and engagement. And of course, the best thing of all is that not only do those customers engage with Credit Karma, but they're able to get access to financial products that help them improve their credit, lower their debt, refinance their loans. And so we really think about the power of what Credit Karma and TurboTax can do together. We are just getting started, and I think that we're going to continue to invest in this space significantly next year.

That's great. Thanks for that. And when you think about the overarching trends in the industry that you've been outlining last several years, filings growing in that 0% to 2% range, DIY gaining 2 to 4 points and then TurboTax gaining 1 to 2 points. Do you see any changes in those trends? Do you think that those are sustainable over the longer term?

Yes. I would say we're -- the last 3 years were pretty unusual with the IRS decline and the DIY category being closer to flat. But if you kind of normalize that over 3 years, I think we do see sort of some opportunity for things to kind of normalize. I would say it's a little early to tell because we still have a lot of extensions out there. We still have a lot of late filers. And so I think that as we get closer to Q1, we'll be able to unpack that more clearly just based on how these trends shake out over the next quarter. But for now, as we look at through July 31, we think returns will be around -- total returns will be around 3% down. And then we see the DIY category as flat. But what we're excited about is, even despite that, we're taking share, we're growing customers, and we are very confident in our strategy to extend our lead in DIY and transform the assisted category. We think that's a durable strategy. It's multiyear, and we think we're going to be able to be successful.

That's great. Maybe we could talk a little bit about retention. And anything you can share in terms of how that played out this year? Where is the focus on retention? Where have the retention rates been? And where could they go?

Yes. I would say that retention was slightly down this year. And as we've looked at it, we think the biggest contributor to that is really the stimulus. We had just a huge influx of stimulus filers that were onetime stimulus filers. And we think that, that was the biggest contributor to retention. As we think about the -- our strategy, our strategy is to just build a tax platform, right? And as I talked about earlier, the combination of TurboTax, TurboTax Live and full service are going to allow us to drive retention higher. We are going to be a place that you can do your taxes any way you want. We're going to be the easiest and fastest, and we're going to be able to offer that at a disruptive price. And so that's going to be our focus, and we think that those are the things that are really going to drive retention gains. But retention was slightly down. Again, we think the primary contributor to that was really just the stimulus filers.

Understood. Maybe we can go back to TT Live and full service, the CPA talent pool. Where -- I guess where are these CPAs coming from? Or what would make it interesting for a CPA to go from their own firm or maybe a tax store service to join this talent pool? I guess what's in it for them? What do the economics look like for a CPA working perhaps full time with TT Full Service?

Yes, yes. I mean I think the reality is, this is all grounded in our Big Bet 2 strategy, just stepping back. The virtual expert platform that we're building is designed to be an expert network that delivers best-in-class tools for experts. And so one of the things that we've been doing over the years, just with our PCG and just with the broader Intuit network, is we've just cultivated a network of experts. And that is a pool of experts that we can continue to sort of tap into. We invest in things like credential training programs that help experts uplevel their skills, collaborate and build toward the future. And as I mentioned, I think the biggest incentive for experts that we provide is just amazing software and amazing technology, the ability to connect with other experts, the ability to have better error checking, the ability to leverage AI and machine learning and just be able to do the things that they love best. The -- one of the things that we've learned from experts over the years is that they like working on returns versus trying to think about demand generation and acquiring customers. And so one of the benefits of our expert network is that it allows our experts to focus on what they do best, which is serving customers. So these are some of the incentives that are very tied to our Big Bet 2 strategy. And our expert network is just -- it's an ongoing investment for us. And as I mentioned, our loyalty with experts is very high. They come back to us year-over-year. And so we know that they -- it's sticky and that they like the experience.

That's great to hear. And then on the full service, I asked this question earlier on TT Live and the efforts in kind of cross-promoting upsell within the TT installed base to go -- to convert to Live. What are the efforts to do that similar motion for TT Full Service? In other words, do you see that as an upsell from TT Live to full service? Or is that more of a new customer acquisition strategy that you're kind of going after a net new filer to full service?

Yes. I think the way we look at our assisted strategy is against both vectors. On one hand, it's an amazing retention tool for customers that feel like TurboTax has served their needs really well, but then they have a life event and they start to feel a little bit less confident, right? And so we have invested in -- we have amazing capabilities in the core experience that help understand, hey, where is the customer struggling, where are they spending too much time, how do we then intervene and give them the option to be able to connect with an expert for both do-it-with-me or full service. I also think that there's a huge opportunity for us to introduce our full service as well as our do-it-with-me offering to new customers as well. And this is really focused on lifting heads to help customers understand that, hey, we have this amazing offering and we can do it better than anything else that's out there. And so that is a combination of both product improvement that we're focused on. I mentioned we had a number of learnings around speed, and that's going to reflect in some new innovation that we're going to be focused on next year, but it's also really focused on more top of funnel awareness. And so you can expect that next year, we're going to be investing significantly in both of those. So the great thing about full service is it's both kind of an opportunity to drive retention and stickiness within our existing base but it's also an opportunity for us to bring new customers into the franchise which is a better way to do your taxes fundamentally.

Understood Well, there's a lot -- I'll end with this last question. And there's a lot that we talked about here that are exciting things within TurboTax, top of funnel, Latinx, investor, TT Live, TT Full Service. Company is just doing a tremendous job of finding more use cases, more relevancy within consumer tax and more ways to monetize and gain share. What are you most excited about? Now that you've come in, you stepped into this role, you're now the new leader of this organization, what are you most excited about? What are perhaps maybe investors underappreciating?

Yes. Look, I think the biggest thing is just the unserved market that we have in front of us to take a space that hasn't been modernized, that is somewhat antiquated, that is expensive and it just doesn't serve the consumers well and modernize it. I think that's been the legacy of TurboTax from the beginning. And I think the opportunity that we have to transform the prior assisted category and just change the way taxes are done with technology, automation, artificial intelligence and then virtualized services is a game changer. And so this is a strategy that I've been a big part of over the past 5 to 6 years. I'm also very grateful to be supported by an amazing and resilient organization and a leadership team. And we're just excited to get after it this year. I think we have a lot of room to grow. We have a huge, underserved, underpenetrated market, both in terms of the assisted category as well as some of these underpenetrated segments that are just growing like crazy. And we don't feel like we have anywhere close to our fair share. And so we're going to change the way taxes are done, and we're excited to keep growing the business.

That's awesome. Varun, thank you so much for joining us.

Pleasure.

Thank you all for joining us as well.