“First on tax, our tax businesses are very resilient, and we do not expect a mild recession to have any significant impact.”

In context

“tuit is even more mission-critical for our customers we serve. We have highly predictable reoccurring revenue and much of our business is subscription-based. Additionally, the scale of our platform along with our rich data gives us the unique ability to see leading indicators, such as growth in charge volume, number of hours employees are working and number of workers paid, bank account balances of our small business customers, credit card utilization and delinquency rates for members. This allows us to be forward-looking and adjust quickly. Let me share how we think about our business in context of a mild recession. To start, in fiscal year 2022, 51% of our revenue came from the Small Business and Self-Employed Group, 35% from our Consumer and ProTax businesses and 14% from Credit Karma. First on tax, our tax businesses are very resilient, and we do not expect a mild recession to have any significant impact. Next, with Small Business and Self-Employed Group, QuickBooks and Mailchimp are mission-critical for our customers whose livelihood depends on our platform. In fiscal year 2022, approximately 80% of the Small Business and Self-Employed Group revenue was subscription-based. As a reminder, Mailchimp is also primarily subscription-based which adds to the scale of our subscription volume. The approximately 20% is transactional-based and includes revenue from QuickBooks payments, capital and per employee pricing for time tracking and payroll. In a mild recessionary environment, we may see an impact on these transactional businesses. In Q4, we did not see any impact. This demonstrates how mission-critical our platform is, especially in this environment. Finally, turning to Credit Karma. This is”