Intuit Inc. (INTU) Q3 2018 Earnings Conference Call Transcript

Intuit Inc. (INTU -0.53%)
Q3 2018 Earnings Conference Call
May 22, 2017, 4:30 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good afternoon. My name is Latif, and I will be your conference facilitator. At this time, I would like to welcome everyone to Intuit's Third Quarter Fiscal Year 2018 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer period. If you would like to ask a question during this time, simply press * then the number 1 on your telephone keypad. If you would like to withdraw your question, press the # key.

With that, I'll turn the call over to Jerry Natoli, Intuit's Vice President of Finance and Treasurer.

Jerry Natoli -- Vice President of Finance and Treasurer

Thanks, Latif. Good afternoon, and welcome to Intuit's Third Quarter Fiscal 2018 Conference Call. I'm here with Brad Smith, our Chairman and CEO; and Michelle Clatterbuck, our CFO. Before we start, I'd like to remind everyone that our remarks will include forward-looking statements. There are a number of factors that could cause Intuit's results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2017, and our other SEC filings. All of those documents are available on the Investor Relations page of Intuit's website at intuit.com. We assume no obligation to update any forward-looking statement.

Some of the numbers in these remarks are presented on a non-GAAP basis. We've reconciled the comparable GAAP and non-GAAP numbers in today's press release. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior year period, and the business metrics and associated growth rates refer to worldwide business metrics. A copy of our prepared remarks and supplemental financial information will be available on our website after this call ends.

With that, I'll turn the call over to Brad.

Brad Smith -- Chairman and Chief Executive Officer

All right. Thanks, Jerry. And thanks all of you for joining us. We delivered very strong results in our third fiscal quarter, with overall revenue growth of 15%, fueled by 15% growth in the Consumer group, and 16% growth in the Small Business and Self-Employed group. The cause of this strength and the continued momentum across the company were raising our revenue, operating income, and earnings per share guidance for fiscal year 2018.

With that headline, let me share some observations on our business overall, and I'll start with tax and our consumer business. Heading into tax season, we foreshadowed that this year's primary drivers of revenue would be do it yourself category group and a higher average revenue for return. That's indeed how the season played out, producing very strong results. As we've communicated over the years, there are four primary drivers in our consumer business. The first is the total number of returns filed with the IRS. And the latest IRS data indicates total returns grew about 1%, in line with our expectations.

The second is the percentage of those returns that were filed using do it yourself software. As a reminder, the DIY category growth is our largest lever of revenue growth. To date, the DIY category share has grown just over half a point, again outpacing the assisted tax prep category. As the leader, we view it as our responsibility to help drive category awareness and growth, so we're pleased with this result.

The third is our share within DIY. We competed well and earned a modest increase in our share of the category this season. When you look beyond DIY to total returns, we've also gained half a point of total share. The fourth is average revenue per return, which increased quite nicely this season. The growth was driven by a combination of attached; mix shift at the higher end of our product line, which includes TurboTax Live; and pricing for value. Bottom line, it was a successful tax season.

As we shared at Investor Day last fall, in addition to extending our lead in DIY, we're increasingly focused on transforming assisted tax prep and expanding our business beyond tax. We've made encouraging progress behind each of these strategic priorities this season. In support of transforming assisted tax prep, we're pleased with the results of our TurboTax Live offering in its first season. We delivered an innovative experience that enabled filers who were seeking more confidence in their personal tax situation to do so by accessing a tax pro with the touch of a screen. Feedback from the nearly 2,000 pros and the many customers they served reinforced our confidence that TurboTax Live has the potential to be transformative to our consumer business in the years to come. It opens up the $20 billion assisted tax prep category, and it provides us with an opportunity to grow our dollar share while increasing our average revenue per return. Michelle will share some additional data around our progress in a moment.

This season was also the first for our Turbo offering, the consumer financial platform that expands our portfolio beyond tax. Turbo provides customers with a full view of their overall financial health by combining their credit score, verified income data, and a debt to income ratio to show customers where they truly stand. This year, TurboTax customers had the option to transfer their tax data into Turbo account when they completed their return. Nearly five million TurboTax customers registered for Turbo in year one, providing us with a strong foundation to extend our business beyond today's user-paid model. The real value of this offering will come as customers engage with it on an ongoing basis.

Overall, we feel good about our results this tax season, and I want to congratulate all the employees throughout the company who played a role in delivering that performance. We're just getting started with TurboTax Live, and we are looking forward to what we can deliver next season.

Jumping to the strategic partner growth, our Professional tax revenue was in line with our expectations for the quarter, with revenue up 4% year-to-date. We continue to focus on multiservice accounting firms that do both books and taxes. This enables us to drive our accountant success while growing our small business ecosystem at the same time.

Turning to small business, we delivered another strong quarter in our Small Business and Self-Employed group. QuickBooks Online subscriber growth continued at a rapid pace, and online ecosystem revenue grew 41%. We exited the quarter with over 3.2 million QuickBooks Online subscribers, a 45% increase year-over-year. Growth remained strong across multiple geographies, with U.S. subscribers growing 40%, to approximately 2.5 million, and international subscribers growing 66%, to about 720,000. Within QuickBooks online, self-employed describers grew to over 680,000, up from 360,000 just one year ago. Approximately 330,000 of those subscribers are from the TurboTax Self-Employed offering.

So, putting a bow around the corner, our strategy of a vibrant, one Intuit ecosystem continues to gain momentum. We performed ahead of our expectations this tax season and delivered continued strong performance in our Small Business and our Self-Employed group.

With that business overview, let me hand it over to Michelle to walk you through the financial details.

Michelle Clatterbuck -- Chief Financial Officer

Thanks, Brad, and good afternoon, everyone. For the third quarter of fiscal 2018, we delivered revenue of $2.9 billion, up 15% year-over-year; GAAP operating income of $1.6 billion versus $1.4 billion a year ago; non-GAAP operating income of $1.7 billion versus $1.5 billion last year; GAAP diluted earnings per share of $4.59, up 24% year-over-year, and non-GAAP diluted earnings per share of $4.82, up 24% year-over-year.

Our non-GAAP tax rate is 26.3%, which is lower than the 27% rate we anticipated earlier this year. The reduction is the result of our continued analysis of the impact from the new U.S. tax legislation. This lower tax rate contributed $0.05 to non-GAAP earnings in the third quarter.

Turing to the business segment, consumer group revenue grew 15% in the quarter and is up 14% year-to-date, exceeding the annual guidance of 7% to 9% we gave at the beginning of the fiscal year. We now expect 14% revenue growth for the year. TurboTax Online units grew 6% this season, while total TurboTax units grew 4%. This unit performance was drive by faster growth in both our paid and free offerings. As Brad mentioned earlier, our share within the DIY category was up slightly, while our share of the total tax preparation market grew half a point.

We're pleased with the performance of TurboTax Live in its first season. We scaled the offering from its in-market test during extension filing last fall to a meaningful contributor this season. This is great progress for a new offering in its first year, and we're encouraged by the positive feedback we've received. Customers who've used our Final Review feature rated their care experience nearly 20 points higher than those who did not. And TurboTax 5 had the highest product recommendation store of any of our consumer tax paid offerings. Additionally, feedback was positive from CPAs, enrolled agents, and tax attorneys serving clients on our platform. We look forward to applying what we learned to scale this offering further in the future.

Turning to the Strategic Partner group, we reported $131 million of professional tax revenue for the third quarter, up 4% year-to-date. We now expect revenue to grow 2% to 3% in fiscal 2018, slightly better than the 0% to 2% growth we guided previously. Total small business and self-employed revenue grew 16% in the quarter. Online ecosystem revenue grew 41%, up from 39% in the second quarter. We continue to expect online ecosystem revenue to grow better than 30%. QuickBooks Online subscribers grew 45%, ending the quarter with over 3.2 million subscribers. TurboTax was a significant channel for QuickBooks Self-Employed, and a total of 330,000 subscribers have come through that channel. We now expect to end the year with 3.35 to 3.375 million subscribers, equating to approximately 41 to 42% growth.

Desktop ecosystem revenue grew 3% in the quarter and is up 7% year-to-date. For fiscal 2018, we expect QuickBooks Desktop units to decline mid to high teens, and Desktop ecosystem revenue to be up mid-single digits.

Turning to our financial principles, we continue to take a disciplined approach to capital management, investing the cash we generate in opportunities that yield return on investment greater than 15%. We finished the quarter with $1.9 billion in cash and investments on our balance sheet. Our first priority for that cash remains investing in the business to drive customer and revenue growth. Next, we need acquisitions to accelerate our growth and fill out or product road map. We return cash that we can't invest profitably in the business to shareholders via both share repurchases and dividends. We repurchased $19 million of shares in the third quarter. approximately $1.2 billion remains on our authorization. The Board approved a quarterly dividend of $0.39 per share, payable July 18, 2018.

Our fourth quarter fiscal 2018 guidance includes revenue growth of 12% to 14%, GAAP diluted earnings per share of $0.04 to $0.06, and non-GAAP diluted earnings per share of $0.22 to $0.24. We now expect a GAAP tax rate of 24% and a non-GAAP tax rate of 26.3% for fiscal 2018. You can find our Q4 and updated fiscal 2018 guidance details in our press release and on our fax sheet.

With that, I'll turn it back to Brad to close.

Brad Smith -- Chairman and Chief Executive Officer

Thank you, Michelle. Before closing, I would like to set some context for the management changes in our Consumer group that we shared in our earnings release today. Effective at the end of the fiscal year, Dan Wernikoff, the General Manager of our Consumer group, will step down as the leader of Intuit's Consumer business. But he will remain at Intuit working with me on strategic projects. Greg Johnson, Senior Vice President of Marketing, will succeed Dan as the General Manager of the Consumer group. Dan's done a tremendous job leading the team, and I couldn't be more proud of the foundation that he's built. Under his leadership, we extended our lead in the do it yourself category, we advanced our efforts to disrupt the assisted tax prep category, and expanded our business beyond tax. I want to thank him for an outstanding tax season, and for repositioning the business for continued growth for years to come.

At the same time, I couldn't be more confident in Greg's ability to lead the Consumer group into the next chapter. Greg has spent the last five years as a key member of the Consumer group's senior leadership team. He's been leading our go-to-market initiatives, commercial innovation, analytics, and marketing capabilities that have accelerated the growth of Intuit's tax business. He's been a driving force in the reinvention of our Consumer business model, spearheading the introduction of Absolute Zero, helping bring TurboTax Self-Employed and QuickBooks Self-Employed Together, and was a key member of the team that brought both TurboTax Live and Turbo to market this season.

For those of you who have followed Intuit for a while, you know that we pride ourselves on being a deep talent bench, and this change is reflective of those efforts. I am excited to watch our momentum continue as Greg takes the baton from Dan to lead the Consumer group. And to sum it up overall, we delivered a very strong quarter, and we feel good about where we stand at this point in the year. While we remain focused on closing out the fiscal year on a high note, we already have our sights set on next year and beyond as we pursue our mission of powering prosperity around the world. But for now, we'll continue to keep our heads down and focus on execution with the finish line in sight.

And with that, Latif, let's open it up and hear what's on everyone's mind.

Questions and Answers:

Operator

Thank you. Ladies and gentlemen, if you would like to ask a question, please press * then the number 1 on your telephone keypad. If you would like to withdraw your question, press the # key.

Our first question comes from the line of Brent Thill of Jefferies. Your line is open.

Brent Thill -- Jefferies -- Analyst

Thank you. Good afternoon. Brad, the consumer business, you start at 7% to 9% guidance here, ending below into that almost double. I was just curious if you could just bridge the outperformance and what you think the primary reasons were, and if you could also highlight a little bit of TurboTax Live? If there's any more numbers of financial impact for that, it would be helpful to get some color on that.

Brad Smith -- Chairman and Chief Executive Officer

Sure, Brent. Happy to do that. Really, as I mentioned in my opening comments, the season played out the way we anticipated. The two primary growth drivers this year was an acceleration of DIY category and our ability to pick up a little bit of share in that category. And then the second was obviously average revenue per customer, which came as a result of increased attached services. We saw a mix shift at the higher end of the product line, really brought on by TurboTax Live, to a large extent. And then we did have some pricing opportunity that we strategically took in key areas where we saw an opportunity to price for value.

Net-net, when you looked at it overall, it was just a well-executed plan. The team was able to go out and compete effectively in the free category, while also two news products, TurboTax Live and Turbo. And then I'll click down on TurboTax Live for a minute and say that if you remember the strategic context, it is tens of millions of people each year end up going to an assisted tax prep method because they have a nagging question. They've lost confidence in their situation because something changed year-over-year. And we would lose about three million customers a year because of that, in addition to the tens of millions who are in a tax store or a CPA. And if they simply had that question answered, they would file taxes on their own using software.

What we saw this year was really encouraging with TurboTax Live. Michelle mentioned the fact that those that went through the final review, those consumers who actually went through a final review with a pro, had a 20-point higher product recommendation score. We also saw very high product recommendation scores from the pros on the other side of that network. Another piece that obviously we were looking for is improved retention. And we did see improved retention. We'll talk more about that at Investor Day.

And then last but not least, the sources of new customers are exactly the ones we wanted to see. First-time filers entering our category because there's also a pro available, and we also saw a ten-point higher conversion from assisted tax prep methods from those who signed up for Live versus those who just did TPO. So, those are the kinds of numbers that we're willing to share. At this point, we're not gonna break down the actual number of customers or revenue, but you should hear in our tone a high degree of confidence and an excitement about next year.

Brent Thill -- Jefferies -- Analyst

And just a quick follow-up for Michelle. Given the outperformance on the top line, we're really not seeing it flow through as meaningful when you look at the margin structure over the last couple years. I'm just curious if you could talk to when you think you can open up the bottom line margin a little more relative to what you've seen in the last couple years.

Michelle Clatterbuck -- Chief Financial Officer

Thanks, Brent. I'd come back to our financial principles. When we think about how we want to use the additional money that we have, it really is, first and foremost, we want to invest in the business and continue to do that so we can drive customer and revenue growth. And that's actually one of the things that we had pointed out earlier this year that we were doing, specifically investing in our transition to AWS, in additional AIML competencies. We also were investing more in our engineering area, helping with software development, and then in marketing efficiencies in our corporate brand. And so, we'll continue to look at opportunities to invest to grow the company. And then obviously, as we get closer, in Investor Day, we'll update you as to what that might look like going forward.

Brent Thill -- Jefferies -- Analyst

Thank you.

Operator

Thank you. Our next question comes Jesse Hulsing of Goldman Sachs. Your line is open.

Jesse Hulsing -- Goldman Sachs -- Analyst

Yeah, thank you. I just wanted to follow up on the last question around Live. Brad, did you see enough out of the product that you feel like you're gonna put your foot on the gas from a marketing perspective for next tax season? And I guess, how does marketing Live change or differ versus marketing your lower-end SKUs?

Brad Smith -- Chairman and Chief Executive Officer

Yeah, Jesse. I want to be cautious not to give too much of next year's game plan away. But what I will say is we are confident enough we're gonna put our foot on the gas with TurboTax Live. In terms of the messaging, our team actually got a little bit of practice in this year. We had dual campaigns going. One was helping people understand that they can move into Free, with "At least your taxes are free," and the other side was "There's nothing to be afraid of," when began to introduce the fact you could have an expert at the touch of a screen. We learned a lot, and we've been running tests in the back half of the season. So, I feel very confident that we can go into market and have a message that basically says, we're here for you regardless of your tax situation. And if you have any reason to need someone to work with, we've got somebody right there and waiting to connect with you. So, I feel pretty good that we've figured out this year how to go out with a campaign that speaks to the entire spectrum of tax filers.

Jesse Hulsing -- Goldman Sachs -- Analyst

Gotcha. And I guess as kind of an extension of that question response, how comfortable do you feel with, I guess, price and mix in higher-end products being the core driver of the consumer business going forward?

Brad Smith -- Chairman and Chief Executive Officer

Yeah, thank you for the question. We have a principle inside the company that has been a great guiding principle across all of our businesses for years. And that is, to grow our customers, and monetization will follow. Many times, that's translated into growing customers faster than revenue. And that is true when you're converting non-consumptions. You're getting a small business out of a spreadsheet or a shoebox, or you're even getting someone off of paper and pencil from a tax filing situation, and maybe getting them into Free. Those often come with lower priced products, and many times, our customer growth outpaces revenue. In the case of tax right now, you have very few people left on paper and pencil, about five million people in total. So, it means we're now converting people who already adopted a method. And with TurboTax Live, we're converting them from higher-priced alternatives. So, when they come into our category, we're getting three times the average revenue per customer for those customers that come in with TurboTax Live. So, we're in an interesting situation right now in tax. And that is that we're able to grow customers and share and grow average revenue per customer, which is accelerating our revenue growth. So, we're not in a trade-off situation there. I think we're actually in a pretty good situation in being able to do both, expand share and grow revenue faster. So, I feel good about the strategy and the way it's playing out.

Jesse Hulsing -- Goldman Sachs -- Analyst

Okay. Thanks, Brad.

Brad Smith -- Chairman and Chief Executive Officer

Thank you.

Operator

Thank you. Our next question comes from the line of Jennifer Lowe of UBS. Your line is open.

Jennifer Lowe -- UBS Securities -- Analyst

Great, thank you. I wanted to drill in on the QuickBooks Self-Employed number, particularly those attached to TurboTax. And it looks like that's slightly more than doubled year-over-year. I know there were some questions about what the renewal rate might look like, given that that was sort of the first experience renewing those types of customers. Can you just give us a little more color on the strength there? How much of that was maybe better renewals, how much of that was better gross ads? What are sort of the major pieces there?

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thanks, Jennifer. First of all, we did see better renewal rates and retention than we had in our original forecast, so we're encouraged by that. The second is, we got better at executing converting customers at the end of their tax filing process with TurboTax into the product itself. And the customer experience and the net promoter scores continued to improve, so it was really strength across the board. It was stronger renewals and retention, it was stronger top of funnel conversion, and it was also a better quality experience that had the customers actively engaged with the product. So, we're feeling good about this particular product combination, and we're looking forward to next year as well.

Jennifer Lowe -- UBS Securities -- Analyst

Okay, great. And one more for me. Looking at the five million Turbo customers that you had registered post-tax season, I think in the past, you've talked about sort of longer-term monetization opportunity there around targeting financial offers to those customers and things like that. At this point, what's sort of the monetization status of that business? Is it really user acquisition mode at this point, or is there sort of near-term opportunities to drive revenue there as well?

Brad Smith -- Chairman and Chief Executive Officer

We're actually executing both, but the priority is customer acquisition, and then turning those customers into active daily users or monthly users, depending on their particular financial situation. So, we were really encouraged to have five million people registered in its first year. That was a number beyond what we had expected, and we had some pretty lofty goals ourselves. The monetization strategy, as you know, was similar to Mint, which is, this is one of the products in our portfolio, and it's, in addition to Mint, the only two products where the less money the customer spends, the more money we make. To say it another way, we introduce them to other financial products to give them better deals and lower fees, and then those particular companies pay us to reach those customers. And we are seeing a very nice monetization strategy with the half a dozen partners we have now. And they're seeing very nice conversion rates on the qualified leads, which gives us a reason to lean in if we look ahead to next year. But I would say the priority right now is more active users and customers. The monetization, we proved out this year for us and for partners is there, and we'll start leaning into that as we head into next year.

Jennifer Lowe -- UBS Securities -- Analyst

Great. Thank you.

Brad Smith -- Chairman and Chief Executive Officer

Thank you.

Operator

Thank you. Our next question comes from the line of Ross MacMillan of RBC. Your line is open.

Ross MacMillan -- RBC Capital Markets -- Analyst

Thanks so much. Brad, I know it's early, but as we go into next tax season, I guess the big change is that with the new tax legislation, it's very possible that we'll see a much higher percentage of the filing population do a simple standard deduction and not an itemized deduction. And I wondered if you had any high-level thoughts at this point as to how that might impact the DIY category growth. And then I had one follow-up.

Brad Smith -- Chairman and Chief Executive Officer

Sure. Thanks, Ross. We spent a lot of time studying the behaviors this year and then working with customers post the end of tax season to better understand their psychology heading into next year. We do know there are some facts. The facts are more people will qualify for standardized deductions, which means they have the opportunity to move to the lower-priced products in the DIY category, but it also means they have the opportunity to move out of the assisted tax prep category into DIY. And when we put all that mass together, we see this as a catalyst to grow the do it yourself category, especially when you introduce services like TurboTax Live, which doesn't force a binary choice between doing it yourself or having an expert ready to help you. So, we're really encouraged. We think this is going to be a tailwind for the category and an opportunity for us as we head into next season.

Ross MacMillan -- RBC Capital Markets -- Analyst

Great. And my follow-up, it was actually just a clarification on the 330,000 QBSE TurboTax units. Is that a base number, or is that a net add number year-to-date? Because I had read that as total number, which implies that the net adds were about flat year-over-year, but Jennifer's question suggested it might be a net add number, so could you just clarify that? Thanks.

Brad Smith -- Chairman and Chief Executive Officer

Yes, Ross, you're correct. 330,000 is the base number of the 683,000 active customers today, so that includes both stronger renewal rates than we had originally anticipated, as well as the net adds.

Ross MacMillan -- RBC Capital Markets -- Analyst

Thanks, Brad.

Brad Smith -- Chairman and Chief Executive Officer

You're welcome.

Operator

Thank you. Our next question comes from the line of Walter Pritchard of Citi. Your question, please.

Walter Pritchard -- Citigroup Global Markets -- Analyst

Hi, thanks. Two questions on . . . seems like business decelerated quite a bit on the Desktop side. It grew sort of a couple percent year-over-year. I'm wondering, you've seen some really good growth there on sort of similar unit performance earlier in the year. Can you talk about what drove the difference in growth? And then I just had a follow-up on subs.

Brad Smith -- Chairman and Chief Executive Officer

Walter, you cut out on the first part of the question. I heard the Desktop question, but I wasn't sure what product line.

Walter Pritchard -- Citigroup Global Markets -- Analyst

Oh yeah. I was trying to ask you if the Desktop, unit growth's been pretty similar. Unit decline's been pretty similar. You've seen stronger revenue performance, I think on a year-over-year basis earlier in the year, and this quarter's sort of just slight growth. I'm wondering what explains the discrepancy that drove the revenue deceleration in QuickBooks desktop.

Brad Smith -- Chairman and Chief Executive Officer

Sure, got it, Walter. Thank you. Really, it's an anomaly of a discontinued product that last year in the third quarter recognized some revenue that had been deferred for a period of time. And let me tell you what that product was. You may recall a couple years ago, we introduced a version of QuickBooks desktop that included an option. We called it the Chooser SKU. When you bought Desktop at retail, you could go in and either choose QuickBooks Desktop, or you could opt into a subscription of QuickBooks Online. And because of accounting rules, we had to defer the revenue on anyone who purchased that product and can't carry it out over the extent of the license. So, what happened was, we found that not a lot of customers were taking that product. But the ones who did, that revenue got recognized last year in the third quarter, so we had a little bit of a balloon payment, if you will, we had to grow over this quarter. If you actually pull that product out, QuickBooks Desktop revenue would have grown 9%, which is in line with the prior quarter. So, it really was a one-time anomaly based upon a discontinued product from a couple years ago.

Walter Pritchard -- Citigroup Global Markets -- Analyst

Got it. Okay, that's helpful. And then just on subs for next quarter, the guide, at the high end, I think even 3.375 implies fewer net adds than a year ago. And all year, you've been seeing growth in the net adds over last year. I'm wondering, is that's just conservatism or something else that would explain why you might be--a more significant detail on the net adds.

Brad Smith -- Chairman and Chief Executive Officer

You know, Walter, conservatism's in the eye of the beholder. We're clearly leaning in and thinking about how do we continue to accelerate our QuickBooks Online subscriber growth, both here and in the international markets. And I do feel good with the momentum we have. We are testing right now, in this fourth quarter of our fiscal year, different promotional approaches, different discounting rates. And so, we give ourselves a little bit of an opportunity to experiment, so that when we head back into peak season in the fall, we really have a game plan we feel confident in. So, you should probably consider that as a little bit of hedge for us as we're testing things as we wrap up this fiscal year and get ready for next year.

Walter Pritchard -- Citigroup Global Markets -- Analyst

Great, thank you. That makes sense. Appreciate the color.

Brad Smith -- Chairman and Chief Executive Officer

Thank you. Yeah, me too. Thanks.

Operator

Thank you. Our next question comes from Scott Schneeberger of Oppenheimer. Your line is open.

Scott Schneeberger -- Oppenheimer -- Analyst

Thanks. Hey, Brad. I have a two-parter for you and then a follow-up for Michelle. When you list revenue per return, you mention in order attached and mix shift and strategic price increase. And I'm just curious, is that the rank order? Were they all three equal or one a little bit more? And then the follow-up on that is, could you elaborate a little bit on attached, particularly if it is truly the number one?

Brad Smith -- Chairman and Chief Executive Officer

Yeah. I appreciate it, and we'll unpack a little more of this on Investor Day, but I will give you this. I would put it in the order of mix shift, attached, and then price. And it's just by small percentage points, so there isn't a significant variation across those. And then in terms of attached, we have different models. We have a Plus bundle you can come in and purchase. We have some security features. We have the ability to do audit defense if you decide that you want to have some protection against being audited by the IRS. We have the refund transfer, which is the ability for you -- it's called Refund -- what is it called now? Refund something Service. The ability to pay for the software out of your refund. And it's a combination of those that basically add up to attached. There wasn't really anything that we did this year that was a breakthrough new offering in attached. It was just continuing to find better ways to expose customers to those products when they have a point of need.

Scott Schneeberger -- Oppenheimer -- Analyst

Great. Thanks for that. And then Michelle, I saw the guide on capex down $50 million for the full year. Could you just remind us how we should think about that, not just this year, but kind of going forward? Thank you.

Michelle Clatterbuck -- Chief Financial Officer

Sure. Thanks, Scott. Our capex for this year, if you look at where we are for the year-to-date, there's a couple different things that are impacting that. And as we talked about transitioning to AWS, what that means then is we don't have to do all of the refreshing in our datacenters. And so, that's having an impact there. One of the other things is we do have some lower software capitalization. And then last year at this time, we were still doing some of the renovation and construction on our Mountainview campus. And so, that had inflated last year. And so, we'll continue to look at that. We'll give you some more insights into that as we think about going forward at Investor Day. But those are the big drivers of the decrease that you're seeing right now.

Scott Schneeberger -- Oppenheimer -- Analyst

Thanks very much.

Operator

Thank you. Our next question comes from the line of Brad Reback of Stifel. Your question, please.

Brad Reback -- Stifel Nicolaus & Co. -- Analyst

Great. Thanks very much. Michelle, if we go back to some of the margin commentary, if we think about it from a high level, is this a situation where the gross profit dollars should continue to outpace opex dollar growth, so cash flow should be a net-net benefit going forward?

Brad Smith -- Chairman and Chief Executive Officer

I'm sorry, Brad, could you repeat the question? She wasn't clear what the question was?

Brad Reback -- Stifel Nicolaus & Co. -- Analyst

Yeah, sure, absolutely. So, should we think about gross profit dollar as growing faster than opex dollars? So, while the market may go down in the future, the cash flow benefit is still positive?

Michelle Clatterbuck -- Chief Financial Officer

I'm not sure how that is actually -- I'm trying to think through that right now. I don't know that I've thought about it that way.

Jerry Natoli -- Vice President of Finance and Treasurer

So, I can jump in. I mean, if you assume that the cost of goods sold is gonna be relatively stable, 15%, then gross margin's gonna be about the same amount of growth as revenue, and our operating margin, dollars usually grow just a little bit faster than revenue. They're not this year, but that's typically what they do. And so, Brad, I think you'll back into an answer that's pretty much what you're expecting.

Brad Reback -- Stifel Nicolaus & Co. -- Analyst

Got it. Oh, sure.

Brad Smith -- Chairman and Chief Executive Officer

No, go ahead.

Brad Reback -- Stifel Nicolaus & Co. -- Analyst

Oh, no. I was just gonna say thanks. So, go ahead, Brad.

Brad Smith -- Chairman and Chief Executive Officer

Well, what I was gonna do, I know this came up earlier, and Michelle answered it, and this question came up just now, and I just thought I'd unpack for you a couple points that I thought Michelle did a really nice job of putting out there. The first is our financial principles in the company remain enduring, and we just reviewed them with the board a couple weeks ago, which is double-digit organic growth on the top line; grow revenues faster than expense, which allows us to grow operating income, dollars, in the mid-teens. As we entered this year, we saw four opportunities that we wanted to lean in to invest that we said would both accelerate our top line growth this year, but would set the foundation for a stronger multiyear growth opportunity ahead. And those are the areas that Michelle walked through. We saw accelerated top line growth this year, and we also saw strong operating income growth of 13%.

We'll come back and talk about our financial principles again in August at Investor Day, but you should hear our anticipation that we're going to not continue to get the operating leverage out of this company in terms of growing our operating income dollars. This was a strategic choice. This was not a business model question. We saw opportunities to invest in technology, data scientists, accelerating as AWS -- by the way, TurboTax ran 100% in second peak in AWS, and we saw a real benefit from that. And then of course, the brand. So, I'm putting that out there just so if there's a question on anyone's mind about is there an issue with the operating leverage of the company, I can tell you with straight eyes and a clear heart, the answer is no.

Brad Reback -- Stifel Nicolaus & Co. -- Analyst

Got it. Very clear. Thanks, Brad.

Brad Smith -- Chairman and Chief Executive Officer

Thank you.

Operator

Next question comes from the line of Keith Weiss, Morgan Stanley. Your line is open.

Keith Weiss -- Morgan Stanley -- Analyst

Excellent. Nice quarter, guys, and thank you for taking the question. I'm gonna try to sort of attack head-on, I think, the question everybody's trying to get at. Consumer had a great quarter this quarter, and a great year-to-date. I think 14%'s the highest I've seen in my model. Is there anything one-time in nature that we should be thinking about in this year versus prior years that makes this special, if you will, over non-repeatable, or can we potentially see a higher durable rate of consumer growth on a going forward basis, given sort of how you expanded the product portfolio there?

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thanks, Keith. We'll talk about what we think the durable growth opportunity is in this business when we get into the fall. We've historically said it's a 5% to 10% grower, and we fully are aware that the last couple years has been double-digits, and this year, versus even further up into teens. But what I do think is different is what I touched on a few minutes ago. Historically, when we tried to grow the category and grow customers, they often came in with a free offering or on the lower end of our product lineup. Now, as we're getting customers to come in with TurboTax Live, and we're getting customers out of the assisted tax prep method, they're coming in at a higher average revenue per customer. So, as we expand the category and grow customers, we're also growing revenue. And so, I don't believe you see a one-time event here. I think you're starting to see a structural shift in the business economics, that if we can continue to execute to give us a really good, sustainable growth rate as we look ahead. But we'll talk much more about what that looks like when we get into the fall.

Keith Weiss -- Morgan Stanley -- Analyst

Thanks a lot. That was very helpful.

Operator

Thank you. Our next question comes from the line of Kartik Mehta of Northcoast Research. Your line is open.

Kartik Mehta -- Northcoast Research -- Analyst

Hi, Brad.

Brad Smith -- Chairman and Chief Executive Officer

Hi, Kartik.

Operator

Mr. Mehta, your line is open. Please proceed. Please make sure your line has been unmuted.

Kartik Mehta -- Northcoast Research -- Analyst

With the TurboTax Live product this year, what was the primary objective for you this year, and what would you say the primary objective will be for that product next year?

Brad Smith -- Chairman and Chief Executive Officer

Kartik, I think that picked up the majority of your question. I heard TurboTax Live, what was the primary objective this year and what will be the primary objective next year? Was that your question?

Kartik Mehta -- Northcoast Research -- Analyst

Yes.

Brad Smith -- Chairman and Chief Executive Officer

Yeah. So, what we did seek this year to do was to see if we could impact the three million customers on average that we tend to lose when something changes in their tax situation. They either have a child, they get married, they move between states, they sell stock. They have that nagging question that we wanted to see if by introducing a pro, we could actually improve our retention in our existing customer base as the primary objective. As I mentioned earlier, we'll talk more about what the results look like as we get into the fall that we did achieve that.

The other thing we wanted to see is if we could change the source of new customers coming into the category, and if we could begin to bring people into the category as first-time filers who may have gone through an assisted method, or actually get people out of tax store and CPAs. And so far, the mix of new customers as we finish this season also looks like we've been successful in proving that hypothesis. So, as we lean into next year, the primary objective is going to be to transform the $20 billion assisted tax prep category and begin to bring more of them into the do it yourself category. We think that will be the big opportunity for us over the long run.

Kartik Mehta -- Northcoast Research -- Analyst

And Brad, as you talked about on the tax side, maybe getting some pricing, do you think, has the market changed, and do you believe there is an opportunity for you to maybe raise prices more than you have in the past because maybe consumers are seeing the value a little bit more now than they have in the past?

Brad Smith -- Chairman and Chief Executive Officer

Well, Kartik, as you know, you follow the space really closely, it's a hypercompetitive market when you get into the free category. And as you mentioned a few minutes ago, the tax legislation will give more people the opportunity to qualify for standardized deductions, so they could move into lower-end products, lower-priced products, or even free. But we have also seen that consumers are willing to pay for value and the ability to have someone answer their question, the convenience of coming through the software and being there at the point of need. And they can schedule when they want to talk to that person. It's something that customer are willing to pay for. So, we do feel like, with the right strategic value proposition, that we can continue to grow revenue while also growing the category.

In terms of taking price, if there's not value add relative to a competitor, that becomes difficult, and so we have to be able to differentiate and deliver more than our competitors can for us to earn a higher price.

Kartik Mehta -- Northcoast Research -- Analyst

Thank you very much. Appreciate it.

Brad Smith -- Chairman and Chief Executive Officer

You're welcome. Take care.

Operator

Thank you. Our next question comes from Kash Rangan of Bank of America Merrill Lynch. Your line is open.

Kash Rangan -- Bank of America Merrill Lynch -- Analyst

Brad, did you say clear-eyed and a straight heart, or a clear heart and a straight eye? That was not a question. That was not a question. Both would apply, actually. Yeah. My question is, when you look at the profile, either the demographic or whatever profile, however you wish to categorize people that came on TurboTax Live, I'm curious how much of that is flow from competition that was bricks and mortar versus upgrade from your existing space, or people that might have, to your point, tried it because the returns got complicated, or even perhaps people that were going to a professional accountant that were using Professional TurboTax? So, could you just characterize the flow of business in TurboTax Live, and where you see the different vectors? I'm hoping that you can actually project these vectors in the future and help us understand the bigger picture of how it all plays out. Let's say TurboTax is gonna be as -- Live is gonna be as big as potentially TurboTax, the core business. Where do you see the inflow coming from?

And from a product standpoint, as you went through drop-off at this season, what changes do you see making to TurboTax Live next year from a product standpoint that will equip the company even better -- forget the go-to-market, but from a products perspective? Thank you.

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thank you, Kash, and thank you for helping me think through the quotes and the things that I use here. Sometimes the West Virginia side of me comes out and I can't even remember what I said, so. Let me start first with, we're gonna break out a lot more detail on TurboTax Live when we get into the fall on Investor Day. And as we always do, we'll show sources of customers. But we'll get into high-level. What we're encouraged by is, as you know, three to five million people enter the tax category for the first time each year. They file their first return. There's a whole host of reasons why people end up filing the first time. They're filing jointly, they're divorced, they're entering the workforce for the first time out of college. So, you take any one of those scenarios. We saw a disproportionate inflow into the category and into TurboTax, so that was exciting. So, we do know that's an evergreen source of customers, and we'll talk more about that in the fall.

The other thing we saw was customers who have been with TurboTax a couple years ago and had left, we saw them coming home. And so, that was a good opportunity for us as well. They had gone to an assisted tax prep method or some other alternative. And then we did see those who had been with an assisted method, whether it was a tax store or a CPA, and actually saw TurboTax Live draw about ten points more from that category than regular TurboTax Online does. So, we do like the sources of customers. They're first-time filers. They're people who used to be with us coming home, or those people who tend to be going to an assisted tax prep method. We'll break out the granularity later.

In terms of the opportunity, we still have a lot to prove to ourselves and to prove to you. But if you look at the tax category, it's about a $20 billion assisted tax prep category, and we have a very small sliver today. So, this could be a very nice business for us if we can continue to execute well and create more value than any of the other alternatives on the market. And we'll just have to see how big that is.

Kash Rangan -- Bank of America Merrill Lynch -- Analyst

The product perspective, thanks, if you have the time, otherwise no big sweat.

Brad Smith -- Chairman and Chief Executive Officer

Yeah, Kash. I would rather at this point in time not to get too ahead of our headlines in terms of sharing what we're gonna do in the products. Obviously, there are a lot of people in the marketplace that are interested in what we felt we did this year with TurboTax Live and what we'll plan to do next year. Not all of the mare investors. And so, we just want to make sure that we keep some of those product plans close to the vest. And we'll talk more about that when we're getting ready to launch the product.

Kash Rangan -- Bank of America Merrill Lynch -- Analyst

Completely understand. Thank you so much. Congratulations.

Brad Smith -- Chairman and Chief Executive Officer

All right. Thank you, Kash. Take care.

Operator

Thank you. Our next question comes from the line of Siti Panigrahi of Wells Fargo. Your line is open.

Siti Panigrahi -- Wells Fargo -- Analyst

Thanks for taking my question. Going back to the QBO internal ensemble, $720,000, that's pretty good growth. How much of that is driven by this QBO Small Business versus Self-Employed? And also, you talked about plans for the India product market state. Could you give some update on that, when we should start seeing some kind of growth on those regions?

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thanks, Siti. So, I would say first of all, predominantly the growth in the international markets was driven by QBO core as opposed to QuickBooks Self-Employed. That product is ramping up, and we're continuing to add functionality that is very country-specific, and we're excited about this prospect. But right now, the core growth, that 56% growth, was really driven primarily by QBO.

In terms of the other markets, so these are the markets where we're still in search of product market fit, France is really looking healthier by the day, and we like what we're seeing in India in terms of prospects. We're actively engaged over there right now on a process where the government is opening up the technology stack and looking for a handful of providers to help them implement GST, which is the new tax situation that impacts small businesses. Brazil right now, we're still walking through. We don't have clarity yet in terms of how best to capitalize on the acquisition we did with ZeroPaper, as well as around QuickBooks Online offering. So, I would just say in terms of sequencing, I would do France and India is a little ahead of the pack, and Brazil is a little bit further behind, but we're on the trail with all of them, and we've got a team actively working to make sure that we turn those dashboards green and get the product market fit.

Operator

Thank you. Our next question comes from the line of Raimo Lenschow of Barclays. Your line is open.

Raimo Lenschow -- Barclays Capital -- Analyst

Hey, thanks for taking my questions. And congrats from me as well, obviously. Quick question on Turbo. Brad, can you talk a little bit about the -- you talked earlier about how you liked what you saw with the early monetization. Can you talk a little about the activity levels of the clients that you saw in the five million? How's that going in terms of what you see, what they're doing with the product, how often they're using it, etc.?

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thanks, Raimo. And this actually has been, as Scott Cook, our founder, would say, "Savor the surprise." We know what the average Mint customer looks like. We know what their credit score is. We know what their decisions tend to be in terms of their financial investments. Turbo's bringing in a different customer. Actually, a customer that's a little more paycheck to paycheck with a lower credit score, and much more in need of the kinds of financial services that these partners that we're working with can bring them. And so, their active use is different than what we might see from a Mint customer or any other product we've had in the past, like Quicken. And so, we're in the process of learning as we speak. What we are finding is things like alerts and notifications, making them aware of changes in their financial situation, are very important to them. And we also know that that drives active engagement. So, we're in the process now of saying we have five million people who've registered. Now, what can we do to actively engage with them and help them make the best decisions to improve their financial health?

And then as we get closer to the fall, we'll be able to share with you some of those insights. And we'll break apart for you the differences we're seeing in these customers relative to other products. But I will say this. We are very encouraged by how many people signed up. We're encouraged by the fact that as they save more money, we make money. And we're encouraged by the fact that the quality of the leads that we're getting to our partners in some cases is 8X to 10X better in conversion than what they've gotten from other sources. And so, that thrust is a real win-win-win. And now if we can just turn them into active users and then get more of them, we think we have a viable business over the long-term.

Raimo Lenschow -- Barclays Capital -- Analyst

Perfect. And one follow-up question for me on the investment side. Can you talk me through like where are you on the move toward AWS? I think I heard earlier you said TurboTax 100% on AWS. That should have been a big benefit for you guys. Just overall, we've heard the investment initiatives, but where are you in the process of kind of doing some of the major ones?

Brad Smith -- Chairman and Chief Executive Officer

Yeah. So, Raimo, as you know, we've been working toward getting into AWS for several years now, a little over four years. And there was a combination of getting our products architected, working with AWS to ensure the levels of security for the kinds of data that we have in our products, and then migrating the products in. TurboTax, as I mentioned, has been in the process of last year and this year moving into AWS. And when we got the second peek, which was mid-April, we were able to round 100% of our volume through AWS. And we were delighted with the performance of the product, the quality of the experience -- everything was really above expectations. QuickBooks Online and the major small business products are in the process of moving in. We hope to get those moved in in the next 12 months. And then we will have a long-tail of other services we'll be moving out of our own datacenter and into AWS, and that'll probably have another 12 months or so after that.

But right now, what we are dealing with is we have a double bubble. We talked about that before, where we have our own datacenter up, and we also have AWS. And so, that's part of the investment that we foreshadowed as we went into this year. We're gonna be paying for volume in AWS while we continue to pay to keep the lights on in our datacenter until we get everything moved out of our garage and into theirs. And we feel good. We actually like what we're seeing in terms of how our products perform when they're in AWS. And we've got another, call it 24-plus months to get everything moved over.

Raimo Lenschow -- Barclays Capital -- Analyst

Perfect. Very clear. Well done.

Brad Smith -- Chairman and Chief Executive Officer

Thank you.

Operator

Thank you. Our next question comes from Jim MacDonald of First Analysis. Your question, please.

Jim MacDonald -- First Analysis Securities -- Analyst

Yeah, good afternoon, guys. Believe it or not, I have another TurboTax Live question. Did you have any capacity issues, either supply or demand, or can you talk a little bit about that? Did you have enough on either side of the equation there?

Brad Smith -- Chairman and Chief Executive Officer

Thanks, Jim. Never apologize for asking about any of the products, and certainly about TurboTax Live. We're very, very proud of this product offering this year. And the short answer to your question is no, we did not. We were delighted by the supply of professionals who wanted to work with us on the platform. We were delighted b our team and the ability to match supply and demand in real-time and maintain service levels where you could be connected within minutes, or you had the ability to schedule at your own convenience when you wanted to have a professional connect with you. And we were also delighted to see that customers and pros were willing to flex.

And in some cases, at the end of the season, they said, "Hey, I'll go ahead and file an extension because I'm not ready to give my stuff to a pro." So, it really did at the end of the day work out much better than we had hoped. And I think at the end of the day, it's also an opportunity to reimagine this entire category, because many times, you're constrained in an office when you have a line sitting in the front office waiting to get their turn to get their taxes done. But in our case, we have pros working from home, and they can come in at any point in time and help you get it done. So, I think this is really a game-changer.

Jim MacDonald -- First Analysis Securities -- Analyst

Very good. And just on a different subject, your QuickBooks Online services seemed to be particularly strong this quarter. Was there anything going on there?

Brad Smith -- Chairman and Chief Executive Officer

Yeah, Jim, it was. We're excited by the fact that our teams -- and we've been talking about this for some time and acknowledged we needed to improve our execution. But our teams have continued to improve our execution behind both payroll and payments. That was helping drive our online services. Then, in addition to that, we did have a core of Tishi, the acquisition, the Time and Attendance acquisition that rolled into those services as well. But it really is a continued improvement in our ability to execute those services beyond just core accounting, and that's what's driving that growth.

Jim MacDonald -- First Analysis Securities -- Analyst

Great, thanks.

Operator

Thank you. Our next question comes from the line of Sterling Auty of JPMorgan. Your line is open.

Sterling Auty -- JPMorgan -- Analyst

Yeah, thanks. Hi, guys. Brad, you mentioned that in the DIY category, that you gained a slight amount of market share. Were you satisfied with the share gains that you saw? Were you surprised that maybe they weren't more? And what did you see in the marketplace that maybe limited some of the share gains that you saw this year?

Brad Smith -- Chairman and Chief Executive Officer

Yeah, thank you, Sterling. You know, we have really good competitors. They continue to invent and reinvent their game every year, as we do. And I think that in the end of the day, it's good for us, because we have to take our game to the next level, and it's certainly good for the consumer. And if you look at everyone who's reported publicly, our sales and the second-place player in the market, it looks like we picked up share, and so far, the others who have reported seem to have not. And in terms of how we performed, of course I would always like to remove the word "slightly" and simply say we gained share. But if I keep things in perspective, given how hypercompetitive it was this year, I'm very proud of the fact that we were able to continue to build on our market share, and at the same time, introduce products like Turbo and TurboTax Live. So, each year we're gonna come out, our game plan's gonna be to try to increase market share in the category while we expand into these other services. And I'm really pleased the team did that this year.

Sterling Auty -- JPMorgan -- Analyst

Got it. Thank you.

Operator

Thank you. Our next question comes from the line of Kirk Materne of Evercore ISI. Your line is open.

Kirk Materne -- Evercore ISI -- Analyst

Oh, thanks very much, and I'll add my congrats on the quarter. Brad, thank you again for sort of reiterating your financial principles and the way you're thinking about that going into next year. I guess my question is, if we're in a situation where consumer growth is gonna be higher for longer, that obviously gives you a lot more flexibility from an investment perspective. Can you just talk about whether or not the success you had in the quarter has allowed you to accelerate some investments, whether it's in areas like AI or in certain products? I guess just, can you offer maybe some just insights into how you're thinking about that, you know, from an investment perspective as we head into the next fiscal year? Thanks.

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thank you, Kirk. Appreciate that kind words on the performance in the quarter that the team delivered. Our financial principles give us the flexibility to continue to invest, and as Michelle talked about, when we produce cash flow, our first priority is to invest in the business, accelerate customer and revenue growth. And then we look for acquisitions and we return cash to shareholders, whether it's stock repurchase or dividends. But you may recall this year, we also talked about an initiative we implemented called Reinvent or Reinvest, where we look across the company at the lower ROI investments, and we basically redirect those resources -- time, people, and dollars -- to higher priority areas.

And this year, under the leadership of Michelle, we found over $190 million that we have been able to redirect to higher priority areas. And we already have plans in place to even increase that number as we look at fiscal year '19 and beyond. So, I do believe that we have the opportunity within our financial principles, and also within our ability to just take a hard look at ourselves and say, look, there are areas where we could spend this more dollar wisely, that we're gonna continue to redirect those dollars to thing like artificial intelligence and machine learning, global expansion, TurboTax Live, Turbo, QuickBooks Capital, and all those other things we talked to you about. And we have that capacity to do so without harming our financial principles

Kirk Materne -- Evercore ISI -- Analyst

Thanks very much

Operator

Thank you. Next question comes from the line of Michael Millman of Millman Research. Your line is open.

Michael Millman -- Millman Research Associates -- Analyst

Thank you. Given the IRS numbers in the past several years, the growth in do it yourself has been about five points higher than it has been insisted. This past year, that dropped to 2.5. I was wondering if you could talk about it, because it seems at variance with what we think. Second question is -- I think this is your number -- that there's about 30 million taxpayers who don't itemize, but yet use assisted. Why do you think, if we increased that number with a higher standard deduction, those people will change to do it yourself? Thank you.

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thank you, Michael. It's good to hear from you. First of all, we would say that relative to the prior years, the thing we keep in mind is, is the assisted category -- is do it yourself outpacing assisted? And obviously, it is. This year was a little bit of a fear, uncertainty, and doubt year. There was a lot of confusion in the market as tax legislation came out. Does it affect this year? Does it affect next year? Which is why TurboTax Live was so important. So, if you had a question, we wanted to let you know that we could help you with a tax professional. So, I can't really tell you why this year, we saw maybe a less accelerated growth. We do know that the category picked up a half a point a share, which is good. And we believe that that opportunity just continues to increase with two things: with tax legislation taking full effect next year, and then us having TurboTax Live out there so that people know that if they do have a question, they can move into our category and still have the assistance of a tax pro. And that really answers your second question.

The 30 million people today who are filing a 1040-EZ or A, or have what could be simple returns, but still go to a tax pro, they're doing so because they don't realize that with just one or two quick answers and a five-minute exchange, they could file their taxes for a much lower price. We believe it's not just tax simplification, but it's TurboTax Live that will allow us to shift the category into do it yourself and to get more of those filers using TurboTax. So, it's the legislation and TurboTax Live that we think will help us fundamentally grow the category.

Michael Millman -- Millman Research Associates -- Analyst

Very good. Thank you.

Brad Smith -- Chairman and Chief Executive Officer

All right. Thank you.

Operator

Thank you. Ladies and gentlemen, I'm not showing any further questions. Would you close with any additional remarks?

Brad Smith -- Chairman and Chief Executive Officer

Yeah. Thanks, Latif, and I want to thank everybody for your time and for your questions today. I hope everyone has a great Memorial Day Weekend. We're looking forward to speaking with you soon. And until then, take care.

Operator

Ladies and gentlemen, thank you for participating. This concludes today's conference call.

Duration: 62 minutes

Call participants:

Jerry Natoli -- Vice President of Finance and Treasurer

Brad Smith -- Chairman and Chief Executive Officer

Michelle Clatterbuck -- Chief Financial Officer

Brent Thill -- Jefferies -- Analyst

Jesse Hulsing -- Goldman Sachs -- Analyst

Jennifer Lowe -- UBS Securities -- Analyst

Ross MacMillan -- RBC Capital Markets -- Analyst

Walter Pritchard -- Citigroup Global Markets -- Analyst

Scott Schneeberger -- Oppenheimer -- Analyst

Brad Reback -- Stifel Nicolaus & Co. -- Analyst

Keith Weiss -- Morgan Stanley -- Analyst

Kartik Mehta -- Northcoast Research -- Analyst

Kash Rangan -- Bank of America Merrill Lynch -- Analyst

Siti Panigrahi -- Wells Fargo -- Analyst

Raimo Lenschow -- Barclays Capital -- Analyst

Jim MacDonald -- First Analysis Securities -- Analyst

Sterling Auty -- JPMorgan -- Analyst

Michael Millman -- Millman Research Associates -- Analyst

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