{
  "docId": "019dd923-622c-750b-8b99-91010c0bd592",
  "docSlug": "937587dba6b9",
  "documentTitle": "Intuit Inc. (INTU)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-09-20 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 30,
  "pageCount": 125,
  "prevPage": 29,
  "nextPage": 31,
  "slideType": "market_sizing",
  "function": "size_opportunity",
  "density": "overcrowded",
  "nDataPoints": 12,
  "notes": "Uses a combination of historical peer data (Harland Clarke 2008) and current Intuit disclosures to build a revenue estimate.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "callout_box",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-91010c0bd592/30",
  "deckHref": "/decks/019dd923-622c-750b-8b99-91010c0bd592",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-91010c0bd592.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-91010c0bd592#slide-30",
  "components": [
    {
      "bbox": {
        "h": 0.05,
        "w": 0.75,
        "x": 0.24,
        "y": 0.9
      },
      "kind": "callout",
      "text": "Either financial supplies revenue is in decline (making it a bad business) or it remains larger than investors expect (meaning there is even more revenue not deserving an 11x multiple).",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9682ddd9-d08f-48a7-9a91-946db6b787f2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "revenue: $200 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-1ac4-74a6-be36-517a76f1803f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.96,
        "x": 0.02,
        "y": 0.7
      },
      "kind": "paragraph",
      "text": "Financial Supplies. We offer a range of financial supplies designed for individuals and small businesses that use our QuickBooks offerings. These include standard paper checks and Secure Plus checks with CheckLock fraud protection features, a variety of stationery, tax forms, and related supplies.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2d6c1866-0a9d-4e03-a261-a0a909c51992",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.13,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "We found that sole supplier Harland Clarke's check segment revenue in 2008 was nearly $1.3 billion. Assuming Intuit was a meaningful customer and recognizing the Company marked up prices for the supplies sold, it is quite possible that Intuit generated between $200-300 million at the time, which at the midpoint would have represented about 15% of total revenue. While check usage has declined by approximately 50% since then, Intuit has expanded its offerings to include multiple types of point-of-sale hardware. Thus, we believe it is possible that financial supplies revenue exceeds $200 million today.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "965fca5a-cff8-45c2-91e7-5fca6fb463ce",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.96,
        "x": 0.02,
        "y": 0.77
      },
      "kind": "paragraph",
      "text": "Revenue from the sale of our financial supplies, such as printed check stock and hardware, including credit card readers for mobile phones, is recognized when control is transferred to the customer, which is generally when the products are shipped.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c4d4287f-f46c-45c5-bd08-bce18f21472f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.75,
        "x": 0.24,
        "y": 0.84
      },
      "kind": "quote",
      "text": "Today, there are over $20 trillion in B2B payments in the U.S. and approximately 80% of businesses still pay other firms via paper checks.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e8c7e452-edb7-456c-95dc-fc64402bf28b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Today, there are over $20 trillion in B2B payments in the U.S. and approximately 80% of businesses still pay other firms via paper checks.\" — Dave Talach, SVP of QuickBooks, at Intuit 2023 Investor Day",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-1ac4-74a6-be36-4c3ffdcfe41c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.72,
        "x": 0.14,
        "y": 0.33
      },
      "kind": "table",
      "text": "Harland Clarke Holdings 2008 Financial Results",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e9fc74a2-062c-4b59-a5cf-3fc6d84c4ba6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "We Believe The \"Financial Supplies\" Business Could Be Over $200 Million In Revenue",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0258bd20-7e39-43ae-b926-c01b68f9fb49",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "market_sizing",
      "slug": null,
      "matchId": "134321dc-6a9a-4267-bcf2-d0d272c2a923",
      "evidence": "Extrapolation from historical peer data to current company revenue",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [
    {
      "to": 40,
      "from": 30,
      "name": "Iceberg",
      "slug": "10-iceberg",
      "bestFor": "Consulting, complex problem solving, organizational change",
      "matchId": "b3a6a812-d4e9-4efe-bfae-3f7d086ba77e",
      "evidence": "The authors present a detailed critique of Intuit's lending activities, highlighting potential risks and concerns.",
      "position": 1,
      "objective": "to expose the risks related to Intuit's small business lending activities",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.8,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}