Intuit Inc

Economic and market conditions · Inflation and deflation pressures

Adverse macroeconomic conditions, and perceptions or expectations about current or future conditions, such as volatility or distress in the financial markets, recession or inflationary pressures, slowing growth, rising interest rates, rising unemployment could negatively affect our business and financial condition.

Natural and catastrophic events · Natural disasters and extreme weather

Our business operations, information technology and communications systems are vulnerable to damage or interruption from natural disasters, effects of climate change, human error, malicious attacks, fire, power loss, telecommunications failures, computer viruses and malware. In addition, since our corporate headquarters and other critical business operations are located near major seismic faults, our recovery in the event of a major earthquake or other catastrophic event may require us to expend significant time and resources.

Natural and catastrophic events · Climate change and environmental impact

Climate change may have an impact on our business. Our environmental programs and efforts to partner with organizations that are also focused on mitigating their own climate-related risks may not be sufficient to mitigate the business risks associated with climate change. Any of our primary workplace locations may be vulnerable to the adverse effects of climate change.

Digital transformation and innovation · Artificial intelligence and automation

While we continue to enhance the AI capabilities of our offerings, there can be no assurance that our new or enhanced solutions and AI innovations will be successful, adopted, or monetizable or that we will innovate effectively to keep pace with the rapid evolution of AI across the industries in which we compete.

Cybersecurity and data protection · Third party data security and vendors

A cybersecurity incident affecting the third parties we rely on could expose us or our customers to a risk of loss or misuse of confidential information and significantly damage our reputation. We depend on a number of third parties, including vendors, developers and partners who are critical to our business. We or our customers may grant access to customer data to these third parties to help deliver customer benefits.

Technology infrastructure · Technology systems and infrastructure failure

Failure of our systems or those of our third-party service providers may result in interruptions in our service and loss of data or processing capabilities, all of which may cause a loss in customers, refunds of product fees, material harm to our reputation and operating results. Our tax businesses must effectively handle extremely heavy customer demand during critical peak periods.

Technology infrastructure · Cloud services and data center operations

We have designed a significant portion of our software and computer systems to utilize data processing and storage capabilities provided by public cloud providers. If any public cloud service that we use is unavailable to us for any reason, our customers may not be able to access certain of our cloud products or features, which could significantly impact our operations, business, and financial results.

Digital transformation and innovation · Technology implementation and upgrades

We regularly invest resources to update and improve our internal information technology systems and software platforms. Should our investments not succeed, or if delays or other issues with new or existing internal technology systems and software platforms disrupt our operations, our business could be harmed.

Cybersecurity and data protection · Data privacy and protection regulations

Complex and evolving privacy and data protection regulations or changing customer expectations could result in claims, changes to our business practices, penalties or increased cost of operations or otherwise harm our business. Regulations related to data privacy, cybersecurity, the collection, processing, storage, transfer and use of data, and the use of AI are evolving and becoming increasingly complex and fragmented.

Customer and revenue · Customer retention and subscription renewal

Our consumer and professional tax businesses depend significantly on revenue from customers who return each year to use our updated tax preparation and filing software and services. Encouraging continued use of our offerings in successive years can become increasingly difficult if customers do not perceive our offerings to provide continuing or meaningfully incremental value.

Innovation and product development · Intellectual property protection and infringement

Many of our products and services utilize our own intellectual property, as well as the intellectual property of third parties, which we license under agreements that may need to be renewed or renegotiated from time to time. If we are unable to obtain the rights necessary to use certain intellectual property in our products and services, we may not be able to provide the affected offerings.

Strategic execution · Merger acquisition and divestiture risks

Our acquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of the transactions. Acquisitions involve significant risks and uncertainties, including: inability to successfully integrate the acquired technology, data assets and operations into our business; inability to realize synergies or anticipated benefits within the expected time frame or at all; disruption of our ongoing business and distraction of management.

Reputation and brand · Brand damage and negative publicity

Our business depends on our strong reputation and the value of our brands. Adverse publicity (whether or not justified) relating to events, activities, or views attributed to us, members of our workforce or Board of Directors, agents, third parties we rely on, or our users, may tarnish our reputation and reduce the value of our brands.

Reputation and brand · Esg environmental social governance performance

Sustainability matters continue to be an area of focus for stockholders, regulators, customers, employees, and other stakeholders. Our efforts and reporting on these matters expose us to risks that could adversely affect our reputation, operations, and performance if we fail, or are perceived to fail, to meet evolving and often conflicting stakeholder expectations.

Data and privacy · Data protection and privacy laws

Our use of Credit Karma user data is also subject to a Federal Trade Commission (FTC) order that requires maintenance of a comprehensive security program and biennial independent security assessments through 2034. Our failure to fulfill the requirements of the FTC's order could result in fines, enforcement action, and reputational harm.

Industry regulation · Regulatory compliance and changes

Increasing and changing regulation of our businesses may adversely affect our ability to operate or harm our operating results. We are subject to an increasing number of local, state, federal, and international laws, regulations, and rules and standards. The legal and regulatory environment in which we operate is complex, varies across jurisdictions and is subject to frequent change and evolving interpretations.

Core operations · Operational disruption and business continuity

Business interruption or failure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation and harm our future financial results. Our reputation and ability to attract, retain and serve our customers is dependent upon the reliable performance of our products and our underlying technical infrastructure.

Human capital and workforce · Talent acquisition and retention

Competition for our key employees is intense and we may not be able to attract, retain and develop the highly skilled employees we need to support our strategic objectives. Much of our future success depends on the continued service and availability of skilled employees, including members of our executive team, and individuals in technical and other key positions.

Core operations · Quality control and product defects

If we experience significant product accuracy or quality problems or delays in product launches, it may harm our revenue, earnings and reputation. Our customers rely on the accuracy of our offerings. All of our tax products and many of our non-tax products have rigid development timetables that increase the risk of errors in our products.

International and currency · International operations and emerging markets

Our international operations are subject to increased risks which may harm our business, operating results, and financial condition. In addition to uncertainty about our ability to generate revenues from our foreign operations and expand into international markets, there are risks inherent in doing business internationally, including: different or more restrictive privacy, data protection, data localization, and other laws.