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  "documentTitle": "Intuit Inc. (INTU)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-09-20 00:00:00",
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  "notes": "Uses a combination of financial disclosure tables and qualitative argument to challenge management's accounting estimates.",
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      "kind": "callout",
      "text": "The catalyst for consumer use of Credit Karma is an episodic interest in financial product offers. Since the Company was founded in 2007, a 15-year user relationship assumption is only supportable if it had never lost a customer in its history. Mailchimp is a freemium product targeting SMBs, a market acknowledged to have typical churn rates exceeding 35% per year, or an average customer life of less than three years. Thus, we find Intuit’s assumptions very aggressive.",
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      "text": "Intuit’s two major acquisitions of Credit Karma and Mailchimp generated a massive $5.9 billion of intangibles related to the value ascribed to user relationships and customer lists. Remarkably, the Company has assumed 15- and 13-year useful lives, respectively, for those intangibles for the purpose of amortization.",
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      "text": "useful life: 15 years",
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      "text": "Intuit’s two major acquisitions of Credit Karma and Mailchimp generated a massive $5.9 billion of intangibles related to the value ascribed to user relationships and customer lists. Remarkably, the Company has assumed 15- and 13-year useful lives, respectively, for those intangibles for the purpose of amortization.",
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      "kind": "source-note",
      "text": "Source: Intuit FY 2022 10-K, SaaStr:: The Challenge With SMB SaaS, Spruce Point Research",
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      "text": "Intuit Disclosures Related to Useful Lives of Acquired Intangibles: Credit Karma",
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      "text": "Intuit Disclosures Related to Useful Lives of Acquired Intangibles: Mailchimp",
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      "text": "We Believe Intuit’s Assumptions Regarding The Useful Lives For Acquired Intangibles, Specifically Customer Lists, Are Very Aggressive",
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