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  "documentTitle": "Intuit Inc. (INTU)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2024-09-20 00:00:00",
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  "notes": "The slide uses S&P Capital IQ data to compare Intuit's valuation multiples against specific peers (TTGT, HUBS, Klaviyo) to justify a valuation discount.",
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      "text": "As noted, Intuit top-ticked marketing automation multiples when it acquired Mailchimp. Today, Mailchimp’s higher growth (the metric with the highest correlation to SaaS multiples) peer Klaviyo trades at 8.0x after a blowout Q2, a 25% discount to Intuit.",
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      "text": "Lead generation companies such as Credit Karma currently trade at a median NTM revenue multiple of just 1.3x. TechTarget, arguably one of the strongest performers, trades at just 3.3x, a 69% discount to Intuit.",
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      "text": "Credit Karma: INTU and TTGT Since 12/3/20",
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      "text": "As discussed, we believe both the Credit Karma and Mailchimp deals were poorly-timed strategic blunders by Intuit. But even if you believe they will one day be more synergistic with Intuit’s core businesses, there is a strong case to be made that their revenue streams are: (1) more economically sensitive, (2) more discretionary in nature, and (3) less recurring by nature. Moreover, those two companies have very different comparables from Intuit’s core software businesses, and the reality is that those companies (1) trade at lower valuations than software companies for those exact reasons, and (2) have suffered dramatically greater multiple compression since they were acquired.",
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      "text": "Source: S&P Capital IQ, Spruce Point Research",
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      "text": "We Believe The Revenue Added From Deals Should Only Detract From Intuit’s Multiple",
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