Intuit Inc. F2Q08 (Qtr End 1/31/08) Earnings Call Transcript

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2008-02-21 18:54:09.0

Tags: Intuit Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Our first question comes from Heather Bellini of UBS.

Heather Bellini - UBS

Hi, excuse me, thank you very much. Brad I was wondering if you could comment a little bit on the type of weakness you're seeing in the QuickBooks market and in particular, what in your view is that the result of? Is it the lack of new businesses starting up because maybe they can't get financing or is there something else that's just causing people – is it just kind of a general freeze in the market?

Brad Smith

Yeah. Thanks Heather. It's actually tough to nail note down definitively. What I would say is the press that you see is the same press we see. Small businesses are out there competing in this market and the small business customers we serve are very much like consumers. And so a lot of small businesses today will operate their business with lines of credit, credit cards, home equity loans- and we know the condition there.

But I also want to be careful, because we are unable to prove any causality with the economy. There is other thing at play. The category is down 4 points. We are the category leader. And I would say that in addition to the fact that we know that some of our marketing efforts are more backend loaded. The other thing is this year as we released our products we put a lot of efforts into making sure we are Vista compatible and quite frankly, that hasn't played out the way we hoped.

So I think we can put a combination of variables together. The economy is definitely one piece of that. Yeah it is showing up in small business sentiment, but once again we are a product that's pretty affordably priced and it's a mission critical [lap]. So I think it's a combination of things that are playing into the QuickBooks segment, for this point here.

Heather Bellini – UBS

Okay, thank you.

Operator

Our next question comes from the Brent Thill of Citi.

Brent Thill - Citi

Thanks. Just on the consumer and Protax: are there any hurdles left in some of these certain tax forms that need to be uploaded to not be filed or are all those constraints now removed from the process?

Brad Smith

Hi Brent this is Brad. Actually those constraints have now been removed from the process. As you can see from the results that we've reported, we think there's somewhere between $8 million to $12 million of revenue that shifted from Q2 to Q3, but by and large all the delays that we had seen have already been resolved and now it's just up to the tax-payers to get their tax returns filed.

 

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