Arti Vula: Hi, this is Arti Vula on for Mark Murphy. Congrats on the quarter and thanks for taking the question. I just wanted to touch on QuickBooks Advance. You mentioned at your Investor Day that the success of that product is more about just the go-to-market versus kind of a new product or feature development. So can you kind of discuss progress from your perspective on that front? And then in terms of the mid-market, is that — can you talk about how that’s faring in terms of overall health? And maybe compare that to the lower end of the market? Thanks.
Sasan Goodarzi: Yeah, sure. Thank you for your question. First of all, just to play back what I shared at the Investor Day, I said if I had to pick one that was the most important lever going forward, it’s go-to-market. We are continuing feverishly to build out the product capabilities that we need on the platform because we don’t plan to stop at 100 employees. Our plan is to serve mid-market customers over time that are far larger than 100. However, in the near term, sort of near and midterm, the biggest needle mover is go-to-market. And I would tell you that it continues to be bringing on the right skill sets of talent in sales and marketing. And so even in the last, I think, couple of quarters, it’s been — we’ve hired a very strong marketing leader.
We’re — we’ve hired a very strong sales leader. We’re hiring a couple of more sales leaders. We’re bringing on account managers that have a lot of skill in selling and nurturing customers. Because when we think about mid-market, it’s really about a lot of the examples I was using earlier, which is really helping customers understand they can run their business in one place on one platform and the benefits of doing so and what it will mean to their cash flow and particularly helping them understand our roadmap as a company and what we are doing with Intuit Assist, which is really creating a feature of done for you with always having a gateway to human expertise. And that’s enticing for mid-market customers. So net-net, that’s the way I would describe our focus area.
But we want you to walk away to be we’re continuing to invest in the product and in the platform because that’s a big opportunity in the long term as well. In terms of health, I think it really — it comes down to the sector, if you just use US as an example, comes down to the state, the sector that you’re in. Generally speaking, based on our history looking backwards, larger, more tenured customers can withstand more of economic turmoil versus someone that literally just started out their business and they only have $100,000 in their savings and if that $100,000 is spent, then they’re done, right, they go bankrupt. So it really depends on the size of the business, how long that they’ve been in business and then the segment that their business is in, all those variables play in.
I wouldn’t say younger ones are more or less healthy and the older ones are healthier. I would just say it depends on the components that I just described a moment ago.
Arti Vula: Perfect. Thank you.
Sasan Goodarzi: Yeah, very welcome.
Operator: Our next question comes from Kartik Mehta with Northcoast Research.
Kartik Mehta: Good afternoon. Sasan, maybe we’ve talked a lot about the Full Service business. And as you look at that business and all the learnings you’ve talked about, how will you define success for that business at the end of the tax season? Is it the number of returns of process? Is it — I guess, what are the metrics that you will use to figure if you had success or not?
Sasan Goodarzi: Yeah. Thanks for your question. First of all, I’ll start with something that’s really, really important, and that is the investments that we’ve made over the years where TurboTax is now one platform, and that platform is built on an incredible rich sort of data layer, AI layer and expert network. and now an ecosystem of apps, which is consumer app and business taxes. And the reason I start there is because now we have the ability in one place for you to do your taxes yourself, get help with an expert that’s matched specifically to your needs and we can do your taxes for you. And in fact, you can request the same person to do your taxes for you year in and year out and provide advice along the way. The reason I started with that foundational element that we are one platform is as we go to market and start talking to customers about the notion of that choice with us, and we can do everything for you, it actually creates a halo effect.
And so what we will look at are metrics around number of customers, conversion, retention, ARPC across the entire franchise. And we also look at it by area. So very specifically, Full Service plays a very important halo effect because it’s an element of confidence. It’s actually knowing that if I want to hand everything off to someone that Intuit can now do it for me, whether it’s virtually or now locally, if I want to connect to an expert. But ultimately, the metric that will matter the most for Full Service is going to be ARPC because it’s not just the numbers game. It’s the value of these customers. We, of course, will measure a number of customers and ARPC, but ARPC will have the largest impact to our outcomes this year and in the future because now we do your taxes for you as a consumer and as a business.
Kartik Mehta: Perfect. And Sandeep just one quick question. You talked about not wanting to focus on one quarter for margins. But I’m wondering, as you look at the year, any differentiation or movement in marketing especially as the tax season unfolds?
