Sasan Goodarzi: Yeah, Brad, thank you for your question. The short answer is no. We’re very bullish on the business. And in fact, a couple of things that I would share with you, which we can talk more about at Investor Day, but just not to leave you hanging, the monetization model in Credit Karma is how many members you have, how frequently they engage. And there’s a model for — every time a customer engages, there is a average revenue per customer that we benefit from. And in fact, this past year, in ’23, when our results were down year-over-year, our frequency of engagement is actually higher than the prior two years where we had 37% growth and 58% growth. Now why is that? It’s because of all of our innovation. It’s because the customer is engaging but in many areas, credit is still tight.
So when credit begins to open up, and that’s the stability that we’re seeing now, we view this business will accelerate back to the 20% to 25% growth rate. Plus I’ll remind you that, that plus the integration with TurboTax drives actually more stickiness, more monetization and truly created this one consumer platform, which was our vision from day one when we acquired Credit Karma. And with all of the data and AI capabilities that we have in our accelerated GenAI experiences, as I said earlier, you’re going to see on September 6, some of the new innovations that are coming that will make it easier for customers to find what they need, the benefits that they need to engage in the financial products that they want and manage their money. And so all of that leads to our view is completely unchanged relative to the long-term expectations of 20% to 25% growth in Credit Karma.
Sandeep Aujla: And Brad, the one thing I would add to this because you asked about a scenario in which interest rates are higher. When interest rates are higher, the consumer have a higher propensity to shop around because even a small improvement in the rates that they’re getting, has a bigger difference in terms of the interest rate they’re paying and a bigger difference to their bottom line. So in fact, the product becomes more important critical to the end user in a higher rate environment.
Brad Reback: That’s great. Thank you very much.
Sasan Goodarzi: Very welcome.
Operator: Our next question comes from Kartik Mehta with Northcoast Research. Your line is open.
Kartik Mehta: Good evening, Sasan. This year, you’re really focused, at least from a TV advertising standpoint on full service, really trying to get the message out. And I’m wondering, one of the things you talked about is being a little bit more prudent on revenue growth on the consumer business. I’m wondering are — will your strategy change at all and how you’re marketing the full-service product? And how did the full-service product perform compared to your expectations this quarter as well — this year as well?
Sasan Goodarzi: Yeah. Great question. Let me give you an answer that I think you’ll find somewhat helpful and somewhat vague intentionally. We learned a lot this year. We came into the year with a full service offering that has product markets, that as you know, it’s all AI-driven. And we can virtually get things done within an hour or same day. We learned a lot around health and scaling and how to have customers find our full-service offering. And a lot of it also has to do with what I mentioned earlier, which is local marketing. If I’m in San Diego, if I’m in Kansas City, even if I see that TurboTax can provide experts, I go to start to see locally if there’s somebody there. Well, all of our experts that we have are within 10 miles of many of the households in the United States, but we’ve never marketed that way.
And so that’s going to inform our marketing going forward. So there’s a lot that we learned in terms of how to evolve our marketing, so it becomes an and, and not an either/or, and we’re excited about it.
Kartik Mehta: Thank you.
Sasan Goodarzi: Yeah. Very welcome.
Operator: Our next question comes from Kirk Materne with Evercore ISI. Your line is open.
Kirk Materne: Yeah. Thanks very much. Sasan, I’d love to hear you just give a little bit more detail on what you’re counting on Mailchimp to do this year and maybe not if you don’t want to get too much into the quantitative side. Qualitatively, you guys have done a lot of work around the product, the monetizaiton. How important is sort of a continued acceleration of Mailchimp as you look at sort of the small business in aggregate for next year? Thanks.
Sasan Goodarzi: Yeah, Kirk, thank you for your question. It’s really — to answer your question, it’s really threefold. First and foremost, as you know, we made this acquisition ultimately to create one growth platform, so we can help a small business in one place, be able to grow their business and manage their cash flow and manage their workforce all in one place. And really the key to all of this has been data, AI and now our accelerated investments in GenAI. And so first and foremost is we want to make significant progress in this area, and you’ll actually see some of this on both September 6, our Intuit Innovation Day and at Investor Day. That’s number one. The second is, as I mentioned earlier, we had the largest release in June that we’ve ever had in Mailchimp’s history.
We had 150 new and updated features that we released on top of the multiple GenAI-driven announcements that we had made a couple of weeks prior to that. So our second focus is adoption, getting our customers to adopt these benefits because not only will it help fuel their success, but it will help us with monetization, particularly in the mid-market, which is where our focus is very similar to the focus that we’ve had with QuickBooks’ mid-market. And then third is international. Mailchimp is the lead horse internationally. And we’ve done a lot to localize the product. I mentioned earlier in the five languages and more is coming. We’ve also been doing a lot of price studies and price testing because we’ve had like one class price internationally.
That doesn’t work. Some countries should be higher, some countries should be lower. And so we’ve learned a lot in terms of some of our testing and many of that we’re going to be scaling this year. So those are — if I were to just sort of carve out your question, those are the three big areas that we are very focused on in the coming years.
Kirk Materne: Great. Thanks, Sasan.
Sasan Goodarzi: Yeah. You’re welcome.
Operator: Our next question comes from Brad Zelnick with Deutsche Bank. Your line is open.
Nick Giovacchini: Hi, everyone. It’s Nick Giovacchini on for Brad this evening. Congratulations on the strong end to the year, and welcome, Sandeep. I appreciate you taking the question. International growth has decelerated since the beginning of the year. Can you talk us through how you see that growing going forward? Thanks.
Sandeep Aujla: Thanks for the question, Nick. A couple of things on the international growth. On international growth, as I shared earlier, our focus, our refreshed strategy is to lead with both Mailchimp and QuickBooks in the markets where we have product market fit. And in other areas to lead with Mailchimp at the tip of the spear. Our growth decelerated for a couple of reasons, and some of that Sasan shared. As we lead into rightsizing the pricing for Mailchimp in some of these geographies, historically, it was the same price. It was basically the price in the US simply converting into the local currency and applied in that geography. We went in, and we looked at what the price should be based on the competitors in the market, based on the GDP per capital and all these other factors and we rightsized the price.
