Yahoo Finance

Sandeep Aujla

Thanks, Sasan. We delivered a strong third quarter of fiscal 2025 across the company. Our third-quarter results include revenue of $7.8 billion, up 15%. GAAP operating income of $3.7 billion, up 20%. Non-GAAP operating income of $4.3 billion, up 17%. GAAP diluted earnings per share of $10.02, up 19%. And non-GAAP diluted earnings per share of $11.65, up 18%.
Now, turning to our business segment. Consumer Group revenue of $4.0 billion grew 11% in Q3, and we expect it to grow approximately 10% this year. This outstanding tax performance reflects strong execution against our strategy to win as an AI-driven expert platform by delivering the best experience, speed to money and best price for customers.
We made significant progress against our strategic priorities of disrupting the assisted category and winning in the DIY category. This year we expect TurboTax Live customers to grow 24% and revenue to grow 47%, accelerating 13 points and 30 points, respectively. Our outstanding results reflect success with AI-enabled personalized experiences that guide customers to the offering right for them, and strong customer growth in our full-service consumer and business tax offerings outpacing overall TurboTax Live growth.
Our limited time free mobile app offer resonated and brought new customers into the franchise, many of whom opted for our beneficial paid services. We expect online paying units to grow 6% this year on share gains from higher ARPR filers. We saw strong monetization across simple and complex filers, driving an expected 13% increase in average revenue per return or ARPR as more customers chose our assisted offerings and faster access to refunds.
We expect pay-nothing customers of approximately 8 million, down from over 10 million last fiscal year. This reduction is a result of optimizing marketing ROI and shifting our focus towards disrupting assisted tax, which resulted in yielding share with lower quality ARPR customers as anticipated. We expect online TurboTax units to decline approximately 1% this fiscal year, and our share of total returns to decline approximately 1 point.
In summary, I’m incredibly proud of our performance this season, particularly the progress we made transforming assisted and the 47% growth we expect in TurboTax Live revenue, representing approximately 40% of Consumer Group revenue. We see a long runway ahead for growth.
Turning to the ProTax Group. Revenue grew 9% in Q3. For the full year, we expect ProTax Group revenue growth of 3% to 4%. Based on our strong performance in tax this season, we are raising our guidance for fiscal 2025 revenue growth for Consumer Group to 10% from 7% to 8% previously. I’m proud of the progress we made this season, and the learnings we gained, which reinforce our confidence in the future.
Moving on to our business platform. Global Business Solutions Group revenue grew 19% during Q3, driven by Online Ecosystem revenue growth of 20% or 24% excluding Mailchimp. This momentum in our online ecosystem demonstrates the power of our business platform and the mission-critical nature of our offerings as customers look to grow their business and improve cash flow. Our robust growth was largely consistent with prior quarters and broad-based across online accounting and online services.
QuickBooks Online Accounting revenue grew 21% in Q3, driven by higher effective prices, customer growth and mix-shift. We continue to prioritize disrupting the mid-market, through ongoing focus on both go-to-market motions and product innovations, which we expect to continue to drive strong ARPC growth.
Online Services revenue grew 18% in Q3 or 29% excluding Mailchimp. Growth in Q3 was driven by Money, which includes payments, capital and bill pay as well as payroll. Within Money, revenue growth in the quarter reflects payments revenue growth, which was driven by customer growth, an increase in total payment volume per customer and higher effective prices, as well as QuickBooks Capital revenue growth.
Total online payment volume growth in Q3 was 18% or 20% excluding the leap day last year, representing an acceleration from Q2. Within Payroll, revenue growth in the quarter reflects customer growth, mix-shift and higher effective prices. Within Mailchimp, revenue was relatively flat versus a year ago. As we’ve shared previously, we expect it to take several quarters to deliver improved outcomes at scale.
In addition to ensuring the Mailchimp offering resonates with our core small business customers, we continue to make progress with mid-market customers where we can deliver the platform benefit, such as the IES customer Sasan cited earlier that is also using Mailchimp. We remain confident in and are executing on our vision of an end-to-end business platform that integrates the power of Mailchimp and QuickBooks services, enabling our customers to both run and grow their business, all in one place.
As we’ve shared previously, we win as a platform. Our Online Ecosystem revenue growth reflects the progress we are making with our strategy of serving both small and mid-market businesses with more complex needs. This represents an addressable market of over $180 billion, roughly half of which is mid-market. In Q3, Online Ecosystem revenue grew 20%, including approximately 40% growth in Online Ecosystem revenue for QBO Advanced and Intuit Enterprise Suite that serves mid-market.
Online Ecosystem revenue for small businesses and the rest of the base grew a strong 17%. We are excited about our progress in serving mid-market customers while continuing to focus on smaller businesses. Looking ahead, we expect Online Ecosystem revenue growth to accelerate to approximately 21% in Q4, and to grow approximately 20% in fiscal 2025.
Turning to desktop. During Q3, Desktop Ecosystem revenue grew 18%, and QuickBooks Desktop Enterprise revenue grew in the high twenties. As a reminder, quarterly desktop ecosystem revenue growth trends in fiscal 2025 reflect the offering changes we made in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates. We expect Desktop Ecosystem revenue to grow in the mid-single digits in fiscal 2025.
Based on our strong progress throughout the year, we now expect GBSG revenue in the upper band of our previous guidance, representing 16% revenue growth for fiscal 2025. This guidance reflects more than 1 point of headwind from lower Mailchimp revenue growth than we anticipated at the start of the fiscal year. Excluding Mailchimp, we are seeing strong performance across the rest of our business platform.
Moving to Credit Karma. Credit Karma revenue grew 31% in Q3, reflecting strength in credit cards, personal loans and auto insurance. On a product basis, credit cards accounted for 14 points of growth, personal loans accounted for 12 points and auto insurance accounted for 3 points. As a reminder, in Q3 we began lapping the strong growth in auto insurance that began a year ago.
As Sasan mentioned earlier, we expect Credit Karma to drive a point of Consumer Group revenue growth this fiscal year, as we execute on our vision of one consumer platform with a seamless customer experience across TurboTax and Credit Karma. Based on our continued strong momentum in Credit Karma, we are raising our guidance for fiscal 2025 revenue growth to 28% from 5% to 8% previously. In summary, I’m pleased with our momentum this fiscal year and our opportunities ahead.
Shifting to our balance sheet and capital allocation. Our financial principles guide our decisions, they remain our long-term commitment and are unchanged. We finished the quarter with approximately $6.2 billion in cash and investments and $6.4 billion in debt on our balance sheet. We repurchased $754 million of stock during the third quarter. Depending on market conditions and other factors, our aim is to be in the market each quarter to offset dilution from share-based compensation over a three-year period. The Board approved a quarterly dividend of $1.04 per share, payable on July 18, 2025. This represents a 16% increase per share versus last year.
Moving on to guidance. We are increasing our fiscal 2025 total revenue, operating income, implied operating margin and earnings per share guidance. This includes the revenue growth of 15%, up from prior guidance of 12% to 13% growth. GAAP operating income growth of 35%, up from prior guidance of 28% to 30% growth and reflecting 390 basis points of margin expansion versus prior year.
Non-GAAP operating income growth of 18%, up from prior guidance of 13% to 14% growth and reflecting 100 basis points of margin expansion versus prior year. GAAP diluted earnings per share growth of 26% to 27%, up from prior guidance of 18% to 20% growth. And non-GAAP diluted earnings per share growth of 18% to 19%, up from prior guidance of 13% to 14% growth. Our guidance for the fourth quarter of fiscal 2025 includes total company revenue growth of 17% to 18%. GAAP earnings per share of $0.84 to $0.89 and non-GAAP earnings per share of $2.63 to $2.68.
We continue to leverage AI to operate more efficiently and increase productivity across the company. The impact we are seeing from implementing AI capabilities across our platform bolsters our confidence in our ability to continue to grow operating income faster than revenue, including the 100 basis point margin improvement we expect this fiscal year, while investing in growth. You can find our full fiscal 2025 and Q4 guidance details in our press release and on our fact sheet.
Before I close, I want to share my thoughts on the uncertain macro environment. We are consistently hearing from customers the mission-critical nature of our offerings is helping them grow their business, make better decisions and improve cash flow. With the breadth of our platform, diversity of our customer base, and the insights we gain from our data, we are confident in our ability to manage through uncertainty.
I’m proud of the strong growth we’re delivering this fiscal year. Our progress using AI across our platform gives us further confidence in our ability to grow our revenue and operate more efficiently over time, enabling us to invest in growth while continuing to expand margins in fiscal 2025 and beyond.
With that, I’ll turn it back over to Sasan.

Sasan Goodarzi

Thanks, Sandeep. Intuit is on its way to becoming a one-stop shop powering the prosperity of consumers, businesses and accountants with our AI-driven expert platform, delivering done-for-you experiences. Given our early bet on AI and the significant investments we’ve made in the last decade in data, AI, and AI-enabled human expertise, we are positioned extremely well to fuel our customers’ growth and save them money. We see an incredible opportunity ahead to further penetrate our massive $300 billion total addressable market and particularly to accelerate serving small and mid-market businesses.
With that context, we are doubling down on our focus on the three most critical areas in the Global Business Solutions Group, including small business, mid-market and services which include money and workforce solutions. Going forward, each of these areas will be led by a proven leader reporting directly to me.
Marianna Tessel has done an incredible job setting us up to win as an end-to-end platform, and going forward she will lead Small Business, which includes our QuickBooks and Mailchimp businesses. Ashley Still will lead Mid-Market. She joins us from Adobe, where she held senior leadership roles for more than 10 years. During her tenure, she grew Document Cloud into Adobe’s second largest business. Most recently she led the Creative Cloud business to $13 billion in revenue growing double digits, and serving a range of customers from individual creators to large businesses.
David Hahn is a strong leader with decades of experience leading business and product teams at scale. Over the past 18 months, under his leadership, we have brought to market critical innovation for our customers across our Money offerings, delivering nearly 40% online revenue growth year-to-date. Moving forward, David will lead Services consisting of money and workforce solutions, serving both small and mid-market businesses.
Together, they remain part of our Global Business Solutions Group reporting segment. These changes will drive increased focus and velocity on our biggest growth opportunities to help us accelerate winning as a business platform.
Wrapping up, we have exceptional momentum across the company. Our platform is increasingly becoming more mission-critical than ever to our customers. We are confident in our long-term growth strategy, including double-digit revenue growth and operating income growing faster than revenue and we have a long runway ahead of us.
Now, let’s now open it up to your questions.

Question and Answer Session

Operator

(Operator Instructions)
Siti Panigrahi, Mizuho.

Siti Panigrahi

Thank you and congratulations, it's a great quarter, Sasan, I think, outstanding consumer tax business. So my question is, of course, last two years, you delivered sub-8% growth, now double-digit growth, and even the Live revenue, 47%. And if I heard correctly, full service even outpaced that. So what have you learned this year in your strategy? And how sustainable is this, given that you barely penetrated in the assisted category to further drive this kind of double-digit growth?

Sasan Goodarzi

Thank you, Siti. First of all, I want to just commend our team across the entire company with the grit and the focus to deliver for our customers. Siti, I would just say a lot of things works. Really, the focus that we had was to win on experience, to win on price and to win on fastest access to money. And the investments that we've been making on the platform, where data, AI agents and AI-powered human experts can do the work for our customers really knock the ball out of the park.
Our conversion was up double digits as you heard from Sandeep and I. Full service consumer and business tax at outsized growth. Credit Karma contributed to 1 point of growth based on all of the seamless experience improvements that we made, and over 20% of those customers were TurboTax Live customers. And a lot of the work that we did in our go-to-market in terms of how we shaped the category, how we showed up on air, how we showed up digitally, how we showed up locally.
And as you saw this year in the IRS data, assisted actually grew faster than DIY and we had a hand in that. So I feel very good about our progress. It was truly a breakthrough adoption year that we've been waiting for. And we're really excited about the future not just because of our results but because actually of what didn't work. There's a lot of work that we did that created a lot of traffic from prior assisted customers. But there's a lot we learned where there was still a lot of friction in their experience.
To use an example, when you Google a tax pro near me and we showed up, you ended up following on a landing page. And the first thing you had to do was authenticate. Well, the first thing you need to do is connect to an expert. And so those are -- that's just an illustrative example where although we improved the experience in a superior way compared to last year, there's still so much that we can do to make the end-to-end experience seamless. And that's what gives us a lot of confidence looking ahead and the sustainability of what's possible when we think about the Consumer Group performance.

Siti Panigrahi

That's great. Thank you, Sasan.

Sasan Goodarzi

Yeah, you're very welcome.

Operator

Brad Zelnick, Deutsche Bank.

Brad Zelnick

Thank you so much And congrats again on a spectacular end to tax season and guide for the full year. I want to follow up on Siti's question and specifically drill into the 47% growth in live and full service. Just well exceeded our expectations and seems to really validate your disruptive assisted strategy.
Can you maybe further unpack the performance just to understand what really drove this, and maybe within that, the TurboTax offices and local strategy? And maybe where you might be constructively dissatisfied and what remains an opportunity for the seasons ahead? Thank you.

Sasan Goodarzi

Yeah, Brad, first of all, thank you for your kind words and your question. I would really put it in the bucket of three things. One, typically customers that we may have lost in the past because there was a life change. They bought a home or they sold more stock and they just felt like, I'm not sure I can do my taxes this year. We just did a lot of work to make sure that our own customers actually are aware that our platform now comes with experts, whether you just want holding hands, or you want somebody to do it for you. So we saw adoption within our base.
I think the second thing I would just say is we saw breakthrough adoption of new customers in full service across both, by the way, consumer and business. We see business tax as a massive opportunity along with consumer tax. So that really, we saw outsized growth and impact this year.
To answer your question of what we're constructively dissatisfied with, there's two sides of a coin. A lot of what we did in our go-to-market campaign to bring interest from those that last year had somebody else do their taxes for them, it worked. We saw unprecedented traffic. But as I mentioned in answering Siti's question, it was very basic things that we learned. Although we significantly improved the platforms, so once you've got to us, you immediately got engaged with an expert.
Where we have room to improve is if you did a search or if you saw that we have a local office, the first thing you needed to do is to authenticate. And these prior year assisted customers, they're not used to the first thing they need to do is authenticate. That's a software approach versus a service-led approach. So that's an example, but it's a big example of where we saw a lot of falloff this year.
And we know exactly what we need to do to improve that experience, which actually, by the way, started improving it towards the end of tax season. But that's an area where we're constructively dissatisfied and an area that gives us a lot of, I would say, inspiration in terms of what's possible as we look ahead.

Brad Zelnick

Fantastic. That was really helpful. Thanks again.

Sasan Goodarzi

Yeah, thank you, Brad.

Operator

Alex Zukin, Wolfe Research.

Alex Zukin

Congrats to Mr. Zelnick for the constructively dissatisfied. I'm going to have to take that one and use it for other questions. But Sasan, I'm going to ask you the AI question, and I'm going to ask it two ways. First, maybe just clarify the launch around these new agentic offerings, the opportunity set that this brings you into what kind of pricing model you're contemplating? Is there a broader pricing opportunity that you now have on the Small Business Solutions segment?
And on the OpEx side, how persistent is the current level of headcount? Because to some extent, you're starting to reap the benefits of AI from an efficiency gain perspective. So maybe just walk through how that helps you then the curve on OpEx going forward from here.

Sasan Goodarzi

Sure. I'll get us started, and we'll just invite Sandeep if he wants to add anything. Great set of questions. First of all, the launch that I alluded to is a really big deal. And what we're about to launch is extremely hard because in essence, what we are launching is the next step in creating a one-stop shop where we do the work for our customers. And what we are launching is a set of AI agents and AI-enabled human experts that are doing the work for customers.
Very specifically, we are launching a customer AI agent, a payment AI agent, a project management AI agent, an accounting AI agent. And what's remarkable about the work that the team has done is that these agents talk to each other. That is not an easy thing to pull off. And so what that will do for the customer is the customer agent, for instance, will be able to go into a customer's e-mail and decipher the hot leads for them and create a pipeline for them and help them manage those customers through the selling cycle.
The payments agent actually focuses on cash flow and will optimize money in and money out. What does that mean? The payments agent will do things like ensure that the customer has access to a line of credit or instant deposit or go remind customers that invoices are due, or will create an estimate invoice and get the customer paid. The agents will do the work for the customer. But the agent also knows how far it can go, and it will interact with a human expert.
So for instance, on the accounting agent, where it does a lot of the categorization for the customer, that agent has the ability to engage a human expert to ask follow-up questions so they know what to categorize certain things correctly. So that machine learns and next time, it knows how to categorize something that was vague appropriately going forward.
So the net-net, if you pull back, this is in context of what we declared more than a year ago. And it's the next phase of now done-for-you where we can do the work for our customers, which gets to the second point, and that is that the work -- the team has been hard at work in terms of the benefit orientation of and the impact and the ROI of what we are launching and evolving our lineup with not only the benefits of what you get based on what you pick and what AI agents you get based on what SKU that you're in, but also pricing that for value.
Because the biggest thing that we've learned by talking to customers and being in market and doing testing is that what we're about to launch helps customers eliminate the use of other apps, which means, in essence, they're getting more for their money, more benefits and actually spending less money on other apps and spending it in one place with us. So one element is just pricing for value 1 for 1.
The other element, which will, I think, show up more in our mid-market offering across QBO Advanced and Intuit Enterprise Suite is there will be certain modules, I won't name what they are, just you'll need to wait for our launches coming up. We're based on the customer use. The customer will actually pay additionally for that module. So there's pricing 1 for 1, and then there's actually consumption and paying for the benefits of a module. That's ultimately how we are thinking through pricing.
The last thing I would say is we've been very consistent in the last, whatever, decade, but particularly in the last several years, that we're investing in data and AI for two reasons: one, we want to reinvent the experiences for customers, and we want to reinvent how we do the work internally. So based on just what you heard from Sandeep, right, we have a lot of platform levers based on all of our automation, all of our AI investments to not only make our own folks productive and how we manage OpEx, ensuring that we're investing enough in growth but also expanding our margins. And we just view these continue to be the early days of what's possible. But let me invite to see what Sandeep would add.

Sandeep Aujla

Alex, love your question. Let me open up the aperture a bit more on the question about AI and efficiencies. I'll open it up to our confidence and continue to expand margins. As we demonstrated this year, our ability to expand our margin by 100 basis points while bringing new innovations such as the AI agents that Sasan just walked through, while scaling assisted tax to 47% revenue growth, while building a mid-market go-to-market capabilities are all a testament to us using technology, whether that's AI, whether it's automation, is testament to our ongoing spend discipline.
And that's what gives me the confidence and should give you the confidence on our ability to adhere to our principle to grow operating income faster than revenue. So I continue to feel good about it. We feel we have the right level of staffing. And I think these ongoing efficiencies will help us reduce our scaling of headcount less than what would have been without these efficiencies in the years to come.

Alex Zukin

Excellent, thank you guys.

Sasan Goodarzi

Thank you, Alex.

Operator

Raimo Lenschow, Barclays.

Raimo Lenschow

Thank you. Congrats from me as well. I wanted to switch over to Credit Karma, and obviously, like very, very strong results. Like if you think about where you started guiding the year whereas you're coming out would be like a very, very big positive delta. Can you speak a little bit about -- you mentioned the drivers as well, but that seems like a big step up. In a way, what did you learn about visibility for that business unit? Thank you.

Sandeep Aujla

Thank you for the question, Raimo. On Credit Karma, there are two things that are really driving this. One is the continued stability in the macro, but to a larger point, the majority of the results is driven by our execution. The teams work on integrating AI that's driving better connection of the right offers to -- for the -- between the customer and the partners yielding higher ARPC.
It's also helping us with our innovations such as Lightbox take share our partner spend across credit card and personal and continue to take share in new segments such as insurance. So this is what I internally refer to as generating management alpha. And it is that management alpha that has set this business on a very different trajectory than what we were talking about 12 months ago.

Raimo Lenschow

Okay, perfect. Thank you.

Operator

Kash Rangan, Goldman Sachs.

Kash Rangan

It's super hard to go after Zelnick and Zukin. They ask all the good questions so I got to think really, really hard, and after Raimo especially. But I want to say, first of all, that the granularity, the openness, the level of detail, the presentation, best-in-class. So really nice job there, Sasan and Sandeep and rest of the team.
So with that, thinking more about the question. So when you look at the cycle ahead, Sasan, we certainly have AI as a tailwind for you. You've got pricing as a tailwind arguably a much stronger position today than it was two, three years ago. If we are to enter a downdraft, the tariffs do become a thing, what do you think is the pricing power of the Intuit especially in the small and medium business space?
And how resilient is the Intuit business that you see that -- not like taxes, not asking you a tax question because you guys crush it, but how resilient is the company from an SME standpoint this time around versus the rising inflation, rising rates issue that we all uncomfortably dealt with three years ago. Congratulations. Thank you so much. That's it from me.

Sasan Goodarzi

Kash, first of all, thank you for the kind words. We will pass it on to the team and great questions. Let me answer your question in three buckets and let me just try to be brief about it. The first bucket is if you look at Intuit, more than 90% of the company is reoccurring revenue and subscription-based. And we are mission-critical to what customers need to do to manage their life, whether it's actually as a consumer, their taxes and getting access to money. And as a business, we are the core platform that they use to grow and run their business. So that's sort of the first bucket.
And we're actually, in many ways, more resilient than we were years ago. We may be -- we're serving the same customers but we're serving a larger, more diversified set of customers, and 90% of the company is reoccurring and subscription-based. So that's bucket one.
The second bucket that I would tell you is when we look at the assisted tax segment, both consumers and businesses and mid-market, we are actually the low-cost disruptor. As I'm out there talking to large accounting firms and larger businesses, they are over-digitized. They are overspending on a bunch of different apps. Their data is locked up in a bunch of different apps. They don't know how their business is performing. They're spending more time trying to figure out what's going on and more money.
And we have even more conviction around what's possible, around disrupting mid-market and moving even faster because we actually save our customers' money. We increase their ROI and they pay us less than they pay for all the apps that they use today. That 18-entity title company we used as an example was just one example of a customer that falls exactly into that bucket. And the same thing when it comes to taxes for businesses and for consumers. We went on experience, we went on price and we went on access to your refund, to your money.
And so when you look at those three things that I mentioned, reoccurring subscription base, the assisted tax segment in mid-market, we are incredibly resilient because we're actually the price disruptor. And therefore, we have a lot of ARPC tailwinds as we look ahead. So that's the way we think about it is the way we run the company, and that's how we think about our resiliency.

Operator

Kirk Materne, Evercore ISI.

Kirk Materne

Yeah. I'll echo the congrats on a really strong quarter. Sasan, I was wondering, or I guess, the example you gave on Intuit Enterprise services about the boomerang customer was an interesting one because I think a lot of us think about the [sort of upper market for you] all to sort of just turn it in keeping your customers in your ecosystem.
Now that you've this pricing market for longer, are you starting to see more opportunities like that where you go reclaim customers that might have left the ecosystem 6, 12 months ago, maybe even start to replace other vendors that are out in the market? I was just kind of curious if your perspective on that has changed at all over the last six months or so?

Sasan Goodarzi

Yeah, Kirk, thanks for your question. I think the short answer is, no, our perspective has not changed, and let me just refresh our focus areas. We have a huge base of customers that have the opportunity to upgrade either to QuickBooks Advanced, which we view as mid-market, as emerging mid-market or into an enterprise suite and all the ecosystem of services that comes with it. These are customers in the $2.5 million in revenue up to $100 million in revenue.
And really, that's been the focus as we built out our platform capabilities. That's been the focus as we built out our sales force, which is actually covering our own base. In parallel, we're starting to build out our go-to-market to actually start hunting outside of our base. The example of that 18-entity title company is simply word of mouth. They heard about Intuit Enterprise Suite, and they started thinking about, well, now that, that's available and it's the very reason why I left Intuit, I should reconsider going back to Intuit.
And then when they assessed, well, why would I go back, they realized we are superior on experience, we are superior on price, and we are superior on the total cost of ownership. When you think about how -- what it takes to upgrade or migrate to other ERP systems. So that was just an example of word of mouth. That's starting to happen more and more.
It's still a smaller part of where our growth is coming from. But it's just an indication which is why we used that in the earnings script to talk about what's possible as we start hunting for new outside of our base. But I'll end with where I started. Our -- what we've been sharing with you all, which is where our focus is, is unchanged.

Kirk Materne

Thank you.

Sasan Goodarzi

Yeah, very welcome.

Operator

Allan Verkhovski, Scotiabank.

Allan Verkhovski

Hey guys, thanks so much for taking the question. I'll add another one to the congratulations bucket, a truly fantastic quarter. Sasan, you gave a lot of great color on the AI agents you're rolling out and the different ways, you're going to monetize them? Can you talk about how you're thinking about general pricing increases going forward in the context of the macro?
And separately, maybe just update us on your confidence in the drivers behind being able to continue to grow GBSG revenue over 15%.

Sasan Goodarzi

Yeah. Well, let me address your question in a couple of ways, and I'll go back to one of the comments that I made earlier, which is I think the most important comment to take away, and that is customers actually, particularly the larger customers, are actually saving money as they migrate more of their platform to us. And to be very specific, without naming other apps, these larger customers can be using anywhere between 3 up to 15 applications to run their business, and they are paying for each of those apps.
And what they've realized is they're actually now worse off than they were before when they were manual because they've got their data trapped in all these apps. They don't really know how their business is performing. They're actually getting less benefit and spending more money. So when you think about what I just articulated that we're rolling out, yes, we're going to create value by, in some cases, one-for-one price increases.
But from a customer lens, in some cases, in fact, in most cases, they're actually paying less because they're -- they have now the option to stop using other applications. Because ultimately, what we're trying to do with this refreshed platform and the AI agents that are going to be doing the work is to actually create a business intelligence layer where a customer can see how they're performing all in one place, which is the power of the platform.
So that gives us a lot of pricing opportunity because of the innovation. From a customer lens, they're actually, in many cases, spending less money. That's really important as you think about what our pricing power is as we think about customers that are even $500,000 to $1.5 million in revenue.
When you go above that, we're actually a price disruptor. So we have a lot of leverage to be able to think about higher ARPC and higher pricing. And the combination of all of that, which is winning and serving small businesses, winning in mid-market, all the services capability that we have and then getting Mailchimp to be accretive to growth, that's what gives us confidence around long-term sustainability of the growth of the business franchise.

Allan Verkhovski

Very clear and exciting. Thank you, Sasan.

Sasan Goodarzi

Thank you.

Operator

Brent Thill, Jefferies.

Brent Thill

Sasan, the TurboTax breakthroughs that you've highlighted in good in CNBC earlier, what would you characterize as the most impactful thing that really drove this magnitude of positive upside? Was there one or two things or was there multiple things? How would you unpack that?

Sasan Goodarzi

Yeah, Brent, I would tell you a little bit of everything we've been doing, not just this year but over the years based on what we've learned and what we implement it works. It's not just one thing. Full-service consumer and business tax really delivered in an outsized way, better conversion, better experts productivity, well above where we were this time last year. The breakthrough adoption of our experts in our own base and a lot of just the go-to-market changes that we made. Just about a little bit of everything works.
And I just want to emphasize the reason why we acquired Credit Karma. Credit Karma was a big contributor, not only in terms of the point of growth in tax but just the early access to money, which really creates a platform where customers are engaging year-round. And so as I said earlier, what we're most excited about because just a little bit of everything works is actually the things that didn't work and what gives us confidence as we look ahead.

Brent Thill

And that durability for next year, what kind of gives you confidence? I know we just got through this and you want to take a victory lap for what you just accomplished. But the sense of durability now with TurboTax Live into next year, what gives you that confidence is -- I know we're a ways out, but what's giving you that continued confidence that we're in a better position now with tax?

Sasan Goodarzi

Well, listen, we did our victory lap April 16. We're over it. We've been on to next year while we were in tax season. So thank you for reminding us of the victory lap, but we've done the laps around the buildings and we're done. We're moved on to the future.
Listen, it's continuing to really do several big things, but it all starts with we want to win on experience, we want to win on price, and we want to win on immediate and early access to your money. And those are the end-to-end platform capabilities that allowed us to be where we are this year and what's possible looking ahead. So there's a lot of work. In fact, Sandeep and I were with the TurboTax team all day yesterday, reviewing all the great work that they're doing to improve the platform. And I commend the team because most of the day was focused on where they are constructively dissatisfied, where we need to move faster.
And listen, the thing you all need to think about to just end with really the essence of the question you're asking is TurboTax Live is now 40% of the franchise. And we always said, when it gets to 50%-plus, right, the growth formula flips and it changes.
And so what we've said is we're going to grow TurboTax Live between 15% to 20%. We have a lot of confidence in that range. We had an outsized year this year, and our focus is always to have an outsized year like the year we just had. And please know that we are very focused on next year and that focus started almost several years ago. So we have a lot of confidence as we think about our run rate here.

Brent Thill

Great thanks.

Sasan Goodarzi

You're very welcome.

Operator

Michael Turrin, Wells Fargo Securities.

Michael Turrin

Hey, great, thanks very much. I appreciate you taking the question. Just on EPS growth, we're not seeing many high-teens growth rates there. Sandeep, would be good to hear you just speak through the impacts you're seeing across segments, whether any of the headcount optimization you entered the year with is presenting a bigger expansion opportunity this year or just how you're thinking about the margin progression both this year and into the future. Thank you.

Sandeep Aujla

Yeah. Thanks for the good question, Michael. As I think about this year, the strength we saw in the margin was really across the board. Of course, the strong revenue performance across each one of our businesses, all the businesses, in essence, hitting on all cylinders helped. And then when it came to the operating expenses, we have embedded utilizing technology, utilizing AI, utilizing automation throughout how Intuit works.
Last quarter, I shared the productivity gains we saw on the customer success organization. But beyond that, that was just one example. We're seeing productivity gains in our technology organization, where our developers are being able to code up to 40% faster. We are embedding it across throughout the finance organization every -- through the marketing organization, through the sales organization. And this is really still in the early chapters.
So that's what's giving me the confidence that we have the ability to continue to scale this business, continue to invest in growth, and continue to have expenses grow -- sorry, operating income grow faster than revenue and deliver margin expansion to you all.

Michael Turrin

Thank you.

Operator

Scott Schneeberger, Oppenheimer.

Scott Schneeberger

Thanks. Good afternoon all and congratulations. Very nicely done. In the tax category, essentially two questions here. Sasan, could you touch on the assisted category, the outsized growth for the industry? I don't think any of us saw that coming this year and your role and you've touched on it, but it would be great if you could elaborate a little bit more there.
And then also on your marketing spend this year, specifically in the consumer category, I think it was a little bit earlier, it might have been a little bit higher. What were the learnings from what you did? And did it play the way you expected?

Sasan Goodarzi

Yeah. Thanks for the question, Scott. I'll tag team this with Sandeep. On the assisted category, listen, you all know our story and what we're trying to do. When you talk to customers, consumers and businesses that, for the most part, have others do their taxes for them, it's extremely manual. It's a long process. There's a lot of back and forth. There's a lack of transparency in terms of just knowing how much am I going to pay. And it's just sort of a box. You don't know what's happening.
And what we're doing is creating a new way of what's possible and being disruptive and disruptive in terms of really enabling consumers and businesses to focus on their life while they -- while we virtually collaborate in an extremely seamless way to get their taxes done for them but also guarantee them that they're going to pay less than they paid somewhere else, and that we're going to give them early access or immediate access to their money.
So I know I just played back our focus and the customer problem. But really, as we continue to do that, there's going to be ebbs and flows of DIY versus assisted. Our platform serves the entire category. And our focus is serving the quality of the type of customers we want to serve across the category. And I just think we're going to continue to have a bigger hand in transforming and disrupting how taxes get done for consumers and businesses.
So we're excited about the role that we were able to play this year. But listen, there's -- it's a $35 billion category and we're just getting started.

Sandeep Aujla

And on your question about marketing spend, Scott, we did -- as we do every year, our marketing spend does increase slightly but it was not an outsized marketing increase. And what we really leaned into this time was the timing of the spend, if you recall, we shared that we were going to start spending marketing earlier because we realized that about 30% of the assisted customers decide who they're going to use to do their taxes prior to end of December. And that was a change in how Consumer Group would think about marketing.
We focused on marketing messaging towards assisted category about now this is how you get taxes done. So when we think about margin, we are always looking at how do we maximize ROI on that. And I continue to feel very good about ROI we're getting on our marketing spend on -- in the tax business, where your question was, but I'll expand that to say I feel really good about the ROI we're getting on our marketing spend across the entire business, across both the business platform as well as the consumer platform.

Scott Schneeberger

Excellent, thank you, both.

Sasan Goodarzi

You're very welcome.

Operator

Daniel Jester, BMO Capital Markets.

Daniel Jester

Great. Thanks for taking my question and squeezing me in. I think, Sasan, you've touched on this a couple of times in the conversation today, but maybe just to double-click on it in terms of IES and where do we stand in terms of maturing your go-to-market motion there. And it was great to hear the commentary about the accounting channel and how much they're helping you build out this business. How important is that channel going to be in the overall success of IES going forward? Thank you so much.

Sasan Goodarzi

Yeah. Thanks for the question, Daniel. Just to reground, when we talk about mid-market, it's customers that are between $2.5 million and revenue up to about $100 million. We're not going to stop there but that's our focus at this point in time. And that means that some are fit for QuickBooks Advanced and all the services, payments, payroll, et cetera, that come with it, and some are fit for Intuit Enterprise Suite.
To answer your question, I would tell you we're still in the early days of the go-to-market. We are learning, adjusting, improving every single day. And so the way to think about it is we are not yet a finely tuned machine, which should, by the way, make you feel that the opportunity is massive and still ahead of us, which is, by the way, why we continue to bolster our mid-market team particularly with Ashley Still joining us, where she's built individual creator businesses but large businesses. And we hope to accelerate with the single-threaded focus that we have across the company in mid-market.
Last thing is I would just say we don't view our accounting partners as a channel. We view them as our partners because not only do we need to serve them so they can run their firm more effectively and efficiently, but partner with them in terms of how they serve their end customers. And they are extremely critical to the future of business success and our success.
And that's something where I would say we're still -- we've served accountants for years, but we're at the very early innings of now how we partner to serve mid-market together. We're excited about the future. It's why I'm spending a lot of time out in the field with our large firms.

Daniel Jester

Great. Thank you.

Sasan Goodarzi

Yes, you're very welcome. And I think with that, that was, I believe, the last question. I know we're out of time. I just want to thank everyone for joining. Until next time. Bye, everybody.

Operator

Ladies and gentlemen, thank you for your participation. This concludes today's conference call. You may now disconnect.