Portfolio: Zacks Earnings Certain Proxy

Intuit is best known for its TurboTax and Quickbooks software services, holding a commanding 85% market share in tax preparation services in the United States. It is estimated that 30% of all US federal tax returns are prepared using TurboTax, and another 7 million small and medium businesses relying on Quickbooks – both unmatched in their respective categories. The company enjoys a wide moat thanks to its closed-loop ecosystem that generates significant network effects with seamless integration between all of their popular services: Turbotax, Quickbooks, Mint, Credit Karma, and Mailchimp.

The company is in the middle of an AI-powered transformation, anchored by Intuit’s “Five Big Bets” strategy: revolutionizing speed to benefit, connecting people to experts, unlocking smart money decisions, becoming the center of small business growth, and disrupting the mid-market. The AI-driven approach has already yielded tangible results, with developer velocity in code deployment increasing 8x compared to previous years, and developers with AI assistance showing 30% higher productivity.

The company has compounded revenue at a 10% CAGR and earnings per share at 13.5% CAGR for twenty years with extremely high consistency even through today. We believe the company has strong secular tailwinds, an unmatched economic moat, and a very large growth runway with the company estimating its Total Addressable Market between tax preparation, small business accounting at $326 billion.