Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Bryan Keane of Credit Suisse.
Bryan Keane - Credit Suisse
The first one I have is on the consumer tax guidance of 5% to 9%. Traditionally, that's been 8% to 12% grower and normally you would think of being not really susceptible to economic conditions. So can you talk about why the lower guidance there?
Brad Smith
I think in the headline if you look at the last several recessions, the number of tax filers entering in the market tends to be flat year-over-year, and we are assuming no uptick in the economy in the next 12 months in our plans. So with that ability to basically have year-over-year flat filings, we think that the guidance we provided continues to show that we are going faster than the category. However, it is also reflective of the fact that we aren't going to see any upsides from new filers entering the market. So, that's basically what's driving the guidance we've provided for Consumer Tax.
Bryan Keane - Credit Suisse
In previous recession you were still able to grow double digits. Is that just because there was less penetration in the market?
Scott Cook
The way to view the effective recession is reducing the growth rate by about three points, because normally you've got market growth of about three points in the tax category and in recession you don't get it. So just take whatever the growth rate was at that time in a recession, take off about three points.
Bryan Keane - Credit Suisse
I don't know Neil if you can breakout the acquisitions that's in the guidance's, PayCycle and anything else, that will add to fiscal year 2010 revenue growth?
Neil Williams
PayCycle is clearly far and away the most significant one. You may recall we had some other small technology acquisitions earlier in the year that add to our capability in our Small Business Group offerings. So, they are part of what we have baked in for our Small Business revenue guidance.
Bryan Keane - Credit Suisse
How big is PayCylce?
Neil Williams
The revenue that they had come in was about $30 million in annual revenue but remember their plan is to integrate that with our online payroll offering and accelerate the growth of both. So, I am not sure their historical run rate is terribly relevant.
Bryan Keane - Credit Suisse
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