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  "documentTitle": "Intuit Inc. (INTU)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2024-09-20 00:00:00",
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  "notes": "The slide uses red boxes to highlight the inflection point in 2018 (TurboTax Live launch) and the subsequent trend in COGS SBC and margin erosion.",
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      "text": "GAAP gross margin is down 565 bps since 2017.",
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      "text": "As discussed, we find Intuit's segment operating income margin trends suspicious, particularly for its Consumer Group where the revenue mix shift toward the labor-intensive “Live” offering is barely evident in segment financials and incremental margins. However, scrutinizing COGS stock-based compensation expense provides a clear indication of the massive increase in the labor cost component involved in delivering “expert” services as part of the TurboTax and QuickBooks Live offerings.",
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      "text": "Source: Intuit SEC filings, Spruce Point Research",
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      "text": "Spruce Point Analysis of Stock-Based Compensation and Gross Margin Trends",
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      "text": "We Question The True Cost Impacts Of Intuit's Move Toward A Labor-Intensive Model, But The Signs Of Margin Compression Are Real",
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