Sandeep Aujla: Kartik, we are continuing to invest across our product, across the Big Bet, across GenAI, across marketing and particularly as we go to Full Service, we want to make sure that we are expanding our brand’s equity beyond the DIY category to the Full Service. But I would not expect any meaningful shift in the seasonality of our marketing spend, which I think is the question that you’re asking. So — and I feel pretty good about the campaigns and the investments we’ve been making across the go-to-market motion across tax as well as the other segments.
Kartik Mehta: Thank you. Yes. That was the question I was asking. I just did a poor job of it. So thank you.
Sasan Goodarzi: Thank you.
Operator: Our next question will come from Brad Sills with Bank of America.
Brad Sills: Great. Thank you so much. Another question here on TurboTax as you’re kind of heading into the next tax season here. Now that the focus is more on full service and TurboTax Live, is there something different about the end user, the end consumer filer that you’re targeting now, say, going after that CPA segment that’s different from traditionally, where you’ve gone after that tax store, you’ve had tremendous success there against tax stores. Now that CPA segment. Is there some difference there? And is there some learning from last year in go-to-market that you can apply this year to gain more traction there at that end of the market? Thanks, again.
Sasan Goodarzi: Yeah, Brad, thank you for your question. And it’s actually spot on the way you asked it, and that is we view our opportunity as nearly 100 million customers that are either consumers, which is about 88 million of the 100 million and the rest are our business customers, small businesses. We view our opportunity going after them, which is a combination of small pros, mom-and-pop shops, stores is actually a smaller part of the whole pie. And in the last, I would say, 18 months, we’ve experimented a lot with how do we go after these customers, how do we raise awareness, how do we get them to consider and ultimately, how do we ensure that when they come to our front door, front door is a service front or not a software front door because of the behaviors that they have.
And a lot of those both go-to-market and platform insights and learnings is what has informed a number of things that I touched on earlier that we experimented with and ran test in the tax extension season and what we feel good about going into this coming season. So it was a long answer to your question, but yeah, a lot of those insights have informed our game plan because we’re not just the software platform, we’re a software and service platform, given who we’re focused on serving. And by the way, while I have the floor, the same thing applies to small businesses as we think about what we’re doing to embed QuickBooks Live in our offering.
Brad Sills: Wonderful. Thank you, Sasan.
Sasan Goodarzi: Yeah. Very welcome.
Operator: Our last question will come from Scott Schneeberger with Oppenheimer.
Scott Schneeberger: Thanks very much. I have a follow-up for Sandeep and then one for you, Sasan. Sandeep, on the margins in the quarter, you cited marketing, which I assume was predominantly that. Was there anything else in the quarter that was beneficial? Or was that the lion’s share? And then you mentioned spread over the balance of the year and in Kartik’s answer, I felt you kind of were speaking to TurboTax but it looks like you’re expecting a bit of a down quarter on margin in the second quarter. So we’ll — and it seemed like it was mostly in small business, the real benefit in the first quarter. So will that end as of second quarter? Is that truly something that is going to tail off in the second half as well? And then I’ll come back to the follow-up. Thanks.
Sandeep Aujla: Sure. Thanks for the question, Scott. The way I would think about the Q1, we had multiple expenses that moved out of the quarter into later parts of the year, and marketing was one of those expense lines, and I would not say that marketing was the lion’s share of it. There were several things that we expected will hit us in October that got pushed out, but I would definitely not take away as marketing being the lion’s share of items that got pushed out. And you’re right, some of those will get caught up, and we’ll have those expenses in Q2 and so once you look at Q1 and Q2 spent together, those things will start normalizing out. Again, I’ll bring you and the team back to the fact that you should all be focusing on our margins on a full year basis. In any given year, we could have different expense trend lines. So again, we remain confident in our guidance for the full year across the margins for the company.
Scott Schneeberger: Thanks. Appreciate that. And Sasan, we’re pretty well along now into Karma Guarantee. Would love just to get an update on that and Credit Karma was a bit stronger than we had anticipated in the quarter. Is it something that could potentially inflect a positive year-over-year growth in the fiscal first half? Or is that something that you’d expect more in the back half? Thanks.
Sasan Goodarzi: Yeah. Thank you for your question. First of all, I’ll start with, based on our insights and learnings from last year, we really took an approach to be intentional and prudent about the guidance that we provide, which means taking into account not only a macro environment, but also not just banking, a bunch of initiatives in the back half of the year. We’re aggressive in the initiatives that we’re working on, but we did not make them into our guidance because we just wanted to be thoughtful and prudent. With that as context, I would — I love your question about Karma Guarantee because we haven’t explicitly been talking about it and it’s not because it’s not important anymore. It’s because of the way we are now thinking about it and incorporating it into several areas.
