“We now expect the do-it-yourself category share of total IRS returns to be flat this year below our expectations after growing an average of approximately 1 point per year over the last 2 years.”

In context

“in fiscal year 2022, growing approximately 30% and customers growing 20%. Note that last year, TurboTax Live customer growth significantly benefited from the introduction of the free basic offer. We are proud of the progress against our strategy. However, slower total IRS returns growth is resulting in expected Consumer Group revenue growth of 10% this fiscal year. We now expect overall IRS returns to decline 3% through July 31 compared to IRS returns growth of 3% to 4% the last 2 seasons. This was driven by onetime stimulus filers that did not return this season and overall IRS extensions up significantly year-over-year, with the number of TurboTax customers filing extensions nearly doubling. As a reminder, every point of IRS return growth equals about 1 point of TurboTax revenue growth. We now expect the do-it-yourself category share of total IRS returns to be flat this year below our expectations after growing an average of approximately 1 point per year over the last 2 years. Our hypothesis is that the do-it-yourself category performance was weaker than we expected due to the onetime stimulus filers, approximately 30% of whom were paid customers for us last season. While the last 3 years were anything but normal, over the period, IRS returns grew on average 1 percentage per year and the do-it-yourself category gained an average of just over 0.5 point of share per year consistent with long-term trends. Looking ahead, we expect more normal total IRS returns growth. More broadly, our AI-driven expert platform strategy is accelerating innovation, and our 5 Big Bets are solving the largest problems our customers face. We continue to deliver strong proof points that demonstrate the success and are well positioned for durable growth in the future. As a reminder, thes”