Operator: Your next question will come from the line of Scott Schneeberger with Oppenheimer. Please go ahead.
Scott Schneeberger: Sasan, I’m curious, I’m kind of honing in on Credit Karma and credit cards, which I believe is about half of the revenue. And please correct me if that’s changed, perhaps gone up, based on what personal loans has done. But just how are you looking at credit cards? What are you seeing with consumers there? I understand it was the strength in that segment of the quarter versus personal loans, home loans, auto loans, auto insurance. What — specifically in the credit cards, is that strengthening — or maybe not strengthening, but weakening a lot less? Just honing in on that specific segment, what are you seeing from the consumer?
Sasan Goodarzi: Yes. Sure, Scott. First of all, it is — as you said, it’s a large part of the overall Credit Karma platform. With that said, I’ll start with context that when you look at the 129 million customers or members that we serve on Credit Karma, the majority of our focus has been sub-prime and near-prime customers. And that’s really a lot of our personalized experiences are for those cohorts. And one of the things that we’re very excited about that we have shared at Investor Day is we’re also building out capabilities and innovation for prime customers. And that’s why we shifted Mint over, and we’re combining the Mint and Credit Karma platform. So that context is important because as you hear my answer, just hear it from the lens of the majority of where our business comes from is sub-prime and near-prime.
In the future, we’ll also have capabilities, innovation and ultimately, revenue that will come up front and prime as well, which positions us really well in the marketplace. And with all of that said, in essence, yes, we’re continuing to see growth in credit cards, but we’re actually assuming that, that will really deteriorate the rest of the year based on unemployment going up and delinquency rates going up. And as you heard from both Michelle and I, we have built conservatism into the remainder of the year. And so there’s — which will ultimately result in declining growth rate. But what we saw in Q1 and the growth rate of the 2%, a lot of the headwinds in other verticals was offset by credit cards. But we have assumed that, that will get worse over time.
Scott Schneeberger: Okay. Appreciate that. And then following on — it’s kind of more on the tax side, but overall, the guidance for the second quarter seems to be the most derisked with EPS down year-over-year. And that’s an uncommon sequential change. But it sounds like the levers Michelle is pulling, it sounded like marketing and advertising was one of them. I infer that it’s more in the small business side. But just curious on the tax side, are you doing anything differently now that we may have a more normal tax season versus the past few with regard to advertising timing or overall?
Sasan Goodarzi: Yes. Sure. I’m actually glad you asked about our second quarter guide of 8% to 9%. First of all, our momentum in Small Business continues into Q2. There are two elements that drive our guide of 8% to 9% revenue growth in second quarter. One is we always make assumptions for tax. As you know, tax is tricky between second quarter and third quarter. And we make assumptions around when the IRS will open, forms availability, and those assumptions drive what we assume will happen in our tax business. And in some cases, we have elements of our tax business that actually we’ve assumed may decline in the second quarter. So that drives our guidance overall at the Company level for Q2. And then Q2 generally has been seasonally the weakest quarter for Credit Karma because of the month of November, December and January and then just the number of holidays.
It’s seasonally the weakest quarter. So when you combine our assumptions with tax and you combine our assumptions with Credit Karma, that’s where you get Q2 where it is. And hopefully, that answers your question.
