Summary of Key Points from Conference Call Records Industry and Company Involvement - **ServiceTitan**: A vertical software company providing an end-to-end operational platform for various industries, including residential and commercial sectors [2] - **Via Transportation**: A transportation service company that recently went public [4] - **Intuit**: A financial software company aiming for significant revenue growth through new product cycles [5] - **Oracle**: A technology company focusing on GPU as a service, facing challenges in execution [6] - **Microsoft Azure**: A cloud computing service experiencing strong demand but facing capacity issues [7][8] - **OpenAI**: A partner of Microsoft, with significant revenue implications for Azure [9][10] - **ServiceNow**: A cloud computing company with a focus on IT service management [16] Core Insights and Arguments - **ServiceTitan's Competitive Advantage**: The company has a strong moat due to proprietary data and end-to-end process control, which limits competition. Its AI features are additional purchases, enhancing value and market confidence [2] - **Via Transportation's Stock Performance**: The stock dropped significantly post-IPO due to only slightly exceeding expectations. However, if the company can maintain over 30% growth, it may lead to a reassessment of its valuation [4] - **Intuit's Growth Potential**: Intuit aims for a 20% revenue growth driven by advancements in tax services and expansion into the mid-market accounting sector, potentially doubling revenue and earnings per share by FY2030 [5] - **Oracle's GPU Service Challenges**: The company requires substantial investment (over $400 billion in the next 3-4 years) to develop its GPU service, with execution risks reflected in its stock price [6] - **Azure's Capacity Issues**: Azure faces a supply-demand imbalance, with strong growth in commercial bookings. New data centers will take time to build, but contracts with emerging cloud vendors may accelerate growth [7][8] Additional Important Insights - **OpenAI's Risk Exposure**: Microsoft's partnership with OpenAI presents risks due to reliance on a single client for significant revenue. Transparency in order growth and diversification of client base is crucial [9][10] - **ServiceNow's Performance**: Despite lowering guidance due to federal business risks, ServiceNow's core business remains strong, with growth in IT asset management and new AI solutions contributing to revenue [16] - **Microsoft 365 Copilot's Market Position**: The usage of Microsoft 365 Copilot is increasing, indicating strong market acceptance despite competition. CIOs prioritize infrastructure and data governance when evaluating competing products [11][12] - **Investor Focus Areas**: Investors should monitor Azure's growth, operational efficiency, and the impact of rising memory and electricity costs on margins [14][15]

Core Insights - Intuit aims to double household savings for consumers and revenue and profit growth for businesses over three years, leveraging a "system of intelligence" that integrates data, AI, and human intelligence [1] Business Update - CEO Sasan Goodarzi highlighted Intuit's growth from approximately $5 billion to nearly $20 billion, with a growth rate increase from 8% to 16% over seven years, and an 18% growth in the first quarter of the current fiscal year [5] - Intuit's total addressable market exceeds $300 billion, with penetration rising from 5% to 6%, and the company is addressing "over-digitization" in businesses [6] Product Performance - TurboTax Live has grown 47% and surpassed $2 billion in revenue, while Credit Karma contributed to tax growth, lifting ARPC by 38% [9] - QuickBooks Live doubled in growth over the last year, with payments and payroll growing by 37% and 25% respectively, and mid-market segment growth at 40% [10] Financial Metrics - CFO Sandeep Aujla reported revenue growth from $9.5 billion in 2021 to nearly $19 billion, net income doubling from $2 billion to over $4 billion, and free cash flow doubling from $3 billion to over $6 billion over five years [12] - Intuit returned about two-thirds of free cash flow to shareholders during this period, with stock performance increasing more than three times compared to the S&P Software and Services ETF [12] Strategic Focus - Intuit's strategy includes delivering "done-for-you" experiences through AI agents and integrated human expertise, focusing on cash flow for businesses and outcomes for consumers [8] - The company is targeting mid-market customers with revenues between $10 million and $100 million, with plans to serve larger businesses in the future [8] Shareholder Meeting Insights - The 2026 Annual Stockholders' Meeting was held virtually, where stockholders voted on four proposals, including the election of directors and an advisory vote on executive compensation [4][3] - A stockholder proposal regarding the ROI of Intuit's diversity and inclusion programs was presented but did not pass [2]

Company Overview - Intuit (INTU) is currently priced at approximately $548 per share, which is about 32% below its 52-week high [2] Investment Opportunity - Acquiring INTU stock at a 30% discount, around $380 per share, presents a potential trading opportunity with a 9.0% annualized return by selling Put Options [3] - Selling a long-term Put option expiring on 1/15/2027, with a strike price of $380, can yield approximately $1,850 in premium for each contract, translating to an annualized yield of about 5.0% on the $38,000 reserved for the potential purchase of the stock [3][10] Competitive Advantage - Intuit possesses a wide economic moat characterized by high switching costs, which reinforces its leading market position [7] - The company has consistently increased prices for its QuickBooks offerings, with the Plus plan rising by over 64% and the Advanced plan by 83% over five years (2020-2025), demonstrating strong pricing power [11] - QuickBooks maintains a dominant market share, encompassing almost half of the accounting software sector, reinforcing its status as the industry standard [11] Industry Trends - The industry is experiencing a strong tailwind, with a projected compound annual growth rate (CAGR) of 10.1% [9] - There is a secular trend towards the transition to Software as a Service (SaaS) in the financial sector [11] Financial Health - As of July 31, 2025, Intuit reported a robust cash and investment balance of approximately $4.6 billion against total liabilities of $6.0 billion, illustrating a healthy balance sheet and minimal bankruptcy risk [15]

Core Viewpoint - The article compares Progress Software (PRGS) and Intuit (INTU) to determine which stock is a better undervalued investment opportunity for investors interested in Computer - Software stocks [1]. Group 1: Zacks Rank and Earnings Estimates - Progress Software has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while Intuit has a Zacks Rank of 4 (Sell), suggesting a less favorable analyst outlook [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for investors assessing stock potential [2]. Group 2: Valuation Metrics - PRGS has a forward P/E ratio of 7.35, significantly lower than INTU's forward P/E of 22.69, indicating that PRGS may be undervalued relative to INTU [5]. - The PEG ratio for PRGS is 1.47, while INTU's PEG ratio is 1.60, suggesting that PRGS offers better value when considering expected earnings growth [5]. - PRGS has a P/B ratio of 3.83 compared to INTU's P/B of 7.56, further indicating that PRGS is more attractively valued based on market value versus book value [6]. Group 3: Value Grades - Based on various valuation metrics, PRGS holds a Value grade of A, while INTU has a Value grade of D, reinforcing the notion that PRGS is the superior choice for value investors at this time [6].

Financial Data and Key Metrics Changes - The company scaled its revenue from $9.5 billion in 2021 to nearly $19 billion in the past year, doubling its net income from $2 billion to over $4 billion [49] - Free cash flow also doubled from $3 billion to over $6 billion in the last fiscal year [49] - The stock performance over the last five years has increased more than three times compared to the S&P Software and Services ETF [50] Business Line Data and Key Metrics Changes - TurboTax Live grew 47%, becoming a $2 billion business [39] - QuickBooks Live, which utilizes human intelligence, doubled in growth over the last year [40] - The mid-market segment grew by 40%, indicating strong demand for the Intuit Enterprise Suite [40] Market Data and Key Metrics Changes - International revenue currently accounts for 8% of the company's total revenue [53] - The total addressable market is over $300 billion, with significant opportunities in the mid-market segment [19][32] Company Strategy and Development Direction - The company aims to create a system of intelligence that does all the work for customers, from lead to cash and credit to wealth [15][28] - The strategy includes three big bets: delivering done-for-you experiences, accelerating money benefits for customers, and focusing on the mid-market segment [29][32] - The company emphasizes the integration of AI and human intelligence to enhance customer experiences [28][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a nearly fourfold increase in size from $5 billion to almost $20 billion over the past years [16] - The focus remains on solving complex problems for consumers and businesses, with a commitment to doubling household savings rates and improving business success rates [25][18] - Management acknowledged areas of constructive dissatisfaction, particularly in the growth of Mailchimp and international markets, but expressed confidence in leadership and plans [17] Other Important Information - The company has a strong focus on culture and values, emphasizing integrity and customer-centricity [24][23] - The integration of technology and human intelligence is seen as essential for delivering value to customers [35] Q&A Session Questions and Answers Question: What is the company's current relationship to Human Rights Campaign's corporate index? - The company is rated by various organizations, including those focused on sustainability and the Human Rights Campaign [47] Question: What is Intuit doing to improve the message and increase value for retail investors? - The management team focuses on executing a strategy that has scaled revenue and net income significantly over the past five years, returning two-thirds of free cash flow to shareholders [49][50] Question: What percentage of Intuit's revenue is coming from international markets today, and what is the strategy to increase that? - Currently, 8% of revenue is international, with a global strategy focused on executing unique strategies for different geographies [53] Question: Will AI agents be coming to TurboTax? - Yes, AI agents are already part of the consumer platform and TurboTax, aimed at delivering customer benefits [54] Question: Would a sale or spinoff of QuickBooks' desktop business line be considered in future plans? - No, the company intends to continue serving its desktop customers as part of its integrated platform strategy [60]

Financial Data and Key Metrics Changes - The company scaled its revenue from $9.5 billion in 2021 to nearly $19 billion in the past year, doubling its net income from $2 billion to over $4 billion, and also doubling free cash flow from $3 billion to over $6 billion in the last fiscal year [49][50] Business Line Data and Key Metrics Changes - TurboTax Live, which assists customers with their taxes, grew by 47%, becoming a $2 billion business [39] - QuickBooks Live, which provides human intelligence services, doubled in growth over the last year, while payment services grew by 37% and payroll services by 25% [40] Market Data and Key Metrics Changes - International revenue currently accounts for 8% of the company's total revenue, with strategies in place to enhance growth in international markets [53] Company Strategy and Development Direction - The company aims to create a system of intelligence that does all the work for customers, focusing on doubling household savings rates for consumers and revenue growth for businesses [14][28] - The strategy includes three big bets: delivering done-for-you experiences, accelerating money benefits for customers, and targeting the mid-market segment [29][32] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's growth trajectory, citing a nearly fourfold increase in company size from $5 billion to almost $20 billion and a doubling of growth rate from 8% to 16% [16] - The management highlighted the importance of addressing complex customer problems and leveraging data, AI, and human intelligence to enhance customer experiences [18][20] Other Important Information - The company has a total addressable market of over $300 billion, with significant opportunities for growth in the mid-market segment [19][32] - The management emphasized the importance of culture and systems in driving the company's strategy and customer focus [42][43] Q&A Session Questions and Answers Question: What is the company's current relationship to Human Rights Campaign's corporate index? - The company is rated by various outside organizations, including those focused on sustainability and the Human Rights Campaign [47] Question: What is Intuit doing to improve the message and increase value for shareholders? - The management highlighted strong execution, with revenue growth and significant returns to shareholders, noting that the stock performance has outpaced the S&P Software and Services ETF [49][50] Question: What percentage of Intuit's revenue is coming from international markets today, and what is the strategy to increase that? - International revenue is currently 8%, with a focus on executing geographically unique strategies to deliver for customers [53] Question: Will AI agents be coming to TurboTax? - Yes, the company has already implemented AI agents that assist customers as part of the TurboTax platform [53][54] Question: Would a sale or spinoff of QuickBooks' desktop business line be considered in future plans? - No, the desktop business is an integrated part of the company's platform, and the goal is to serve these customers while transitioning them to the cloud [60]

Financial Data and Key Metrics Changes - The company scaled its revenue from $9.5 billion in 2021 to nearly $19 billion in the past year, doubling its net income from $2 billion to over $4 billion, and also doubling free cash flow from $3 billion to over $6 billion in the last fiscal year [47][48] - The company has been returning two-thirds of its free cash flow to shareholders over the past five years, indicating strong performance and focus on shareholder returns [47] Business Line Data and Key Metrics Changes - TurboTax Live grew 47%, becoming a $2 billion business, while QuickBooks Live, which utilizes human intelligence, doubled in growth over the last year [39][40] - The services for small businesses, such as payments and payroll, grew by 37% and 25% respectively, showcasing the impact of the system of intelligence [40] Market Data and Key Metrics Changes - International revenue accounts for 8% of the company's total revenue, with a strategy focused on executing geographically tailored strategies to enhance local customer delivery [49] - The total addressable market is over $300 billion, with significant opportunities in the mid-market segment, which grew by 40% [18][40] Company Strategy and Development Direction - The company aims to create a system of intelligence that handles all customer tasks from lead to cash, credit to wealth, emphasizing the integration of AI and human intelligence [14][27] - The strategic focus includes delivering done-for-you experiences, enhancing cash flow for customers, and targeting the mid-market segment for growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to solve complex customer problems and highlighted the importance of being customer-obsessed to drive future growth [17][22] - The company is excited about the secular shifts in the market, including the over-digitization of businesses and the rise of new generations of customers who expect seamless, expert-driven solutions [19][20] Other Important Information - The company has a strong focus on culture and systems to ensure it remains customer-centric and willing to innovate [42] - The integration of AI and human intelligence is seen as a key differentiator in delivering value to customers [35][36] Q&A Session Summary Question: What is the company's current relationship to Human Rights Campaign's corporate index? - The company is rated by various organizations, including those focused on sustainability and the Human Rights Campaign [46] Question: What is Intuit doing to improve the message and increase value for retail investors? - The management team focuses on executing a strategy that has scaled revenue significantly and returned substantial cash flow to shareholders, outperforming peers [47][48] Question: What percentage of Intuit's revenue is coming from international markets today, and what is the strategy to increase that? - International revenue is 8%, with a strategy tailored to local markets to enhance customer delivery [49] Question: Will AI agents be coming to TurboTax? - Yes, AI agents are already part of the consumer platform, including TurboTax, aimed at delivering customer benefits [49][50] Question: Would a sale or spinoff of QuickBooks' desktop business line be considered in future plans? - No, the company intends to continue serving its desktop customers as part of its integrated platform strategy [53]

Core Viewpoint - Intuit (INTU) stock presents a solid investment opportunity due to its high margins and discounted price, indicating strong pricing power and cash generation capacity [2] Financial Performance - INTU stock is currently 25% cheaper based on its Price-to-Sales (P/S) ratio compared to a year ago [3] - Recent increases in QuickBooks Online pricing and a shift to higher-value products demonstrate sustained pricing power, contributing to revenue growth [4] - Intuit anticipates ongoing double-digit revenue growth and increasing margins for fiscal 2026 [5] Fundamental Strength - INTU has strong fundamentals, with nearly 33.4% operating cash flow margin and 26.7% operating margin for the last twelve months [11] - Long-term profitability averages approximately 32.3% operating cash flow margin and 24.2% operating margin over the last three years [11] - Revenue growth for Intuit was 17.1% in the last twelve months and an average of 13.5% over the last three years [11] Valuation - INTU stock is available at a P/S multiple of 7.5, reflecting a 25% discount compared to a year ago [11] Investment Criteria - The company meets several investment criteria, including a market cap greater than $10 billion, high cash flow from operations margins, and a significant decrease in valuation over the past year [12]

January 22, 2026 Forward-looking statements This presentation contains forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled "Cautions about forward-looking statements" in the Appendix accompanying this presentation for information regarding forward-looking statements and related risks and uncertainties. You can also learn more about these risks in our Form 10-K for fiscal 2025 and our other SEC fili ...

Company Performance - Adobe (ADBE) stock has decreased by 33.5% over the past 12 months, while Intuit (INTU) has declined by 13.2% [1] - Over the past five years, Adobe's stock has lost 38.5% of its value, with significant losses occurring between July 2025 and January 2026 [4] - The SPDR S&P 500 ETF (SPY) has had an annualized total return of 13.6% during the same period, highlighting Adobe's underperformance [4] Analyst Sentiment - Among 37 analysts covering Adobe, 20 currently rate it a Buy, a decrease from 25 three months ago, indicating a shift in sentiment [5] - The average 12-month target price for Adobe is $436.21, which is 50% above its current price, suggesting potential upside despite recent declines [5] Industry Outlook - Earnings for SaaS stocks in the S&P 500 are projected to grow by 14% this year, a decrease of 500 basis points from 2025, reflecting concerns about future growth [3] - Investor apprehension regarding the impact of artificial intelligence (AI) on SaaS companies is contributing to the negative sentiment surrounding stocks like Adobe and Intuit [2][6]