Small Business and Self-Employed Group Revenue
Grew 18 Percent
Intuit Inc. (NASDAQ: INTU), the global financial technology
platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and
Mailchimp, announced financial results for the third quarter of
fiscal 2024, which ended April 30.
“The era of AI is one of the most significant technology shifts
in our lifetime and our strategy to be the global AI-driven expert
platform is delivering significant benefits to our customers and
strong results across the company,” said Sasan Goodarzi, Intuit's
chief executive officer. “I'm proud of our innovation and
performance, and because of our momentum, we are raising Intuit's
revenue, operating income, and earnings per share guidance for the
fiscal year.”
Financial Highlights
For the third quarter, Intuit:
- Grew total revenue to $6.7 billion, up 12 percent.
- Increased Consumer Group revenue to $3.7 billion, up 9
percent.
- Grew Small Business and Self-Employed Group revenue to $2.4
billion, up 18 percent; increased Online Ecosystem revenue to $1.8
billion, up 19 percent.
- Grew Credit Karma revenue to $443 million, up 8 percent.
- Increased ProTax Group revenue to $254 million, up 3
percent.
Unless otherwise noted, all growth rates refer to the current
period versus the comparable prior-year period, and the business
metrics and associated growth rates refer to worldwide business
metrics.
Snapshot of Third-quarter Results
GAAP
Non-GAAP
Q3
FY24
Q3
FY23
Change
Q3
FY24
Q3
FY23
Change
Revenue
$6,737
$6,018
12%
$6,737
$6,018
12%
Operating Income
$3,105
$2,778
12%
$3,712
$3,358
11%
Earnings Per Share
$8.42
$7.38
14%
$9.88
$8.92
11%
Dollars are in millions, except earnings per share. See “About
Non-GAAP Financial Measures” below for more information regarding
financial measures not prepared in accordance with Generally
Accepted Accounting Principles (GAAP).
Business Segment Results
Consumer Group
Consumer Group revenue grew to $3.7 billion, up 9 percent, in
the third fiscal quarter.
For the full fiscal year, Intuit expects:
- TurboTax Live revenue to grow 17 percent to $1.4 billion,
representing approximately 30 percent of total Consumer Group
revenue.
- Average revenue per return to increase approximately 10
percent.
- TurboTax Live units to grow 12 percent and TurboTax Online
paying units to grow approximately 2 percent, versus total IRS
returns growth of 1 percent.
- Total TurboTax units to decline 1 percent, due to share loss
with pay-nothing and lower average revenue per return customers,
and TurboTax share of total IRS returns to decline approximately 80
basis points.
- Customers paying nothing to be over 10 million, down from over
11 million last year.
Unless otherwise noted above, all growth rates refer to Intuit's
expectations for the tax filing season through July 31, 2024
compared to the prior season through July 31, 2023.
Intuit plans to provide a TurboTax federal tax unit comparison
in its fourth quarter 2024 earnings release.
Small Business and Self-Employed
Group
Small Business and Self-Employed Group revenue grew to $2.4
billion, up 18 percent, and Online Ecosystem revenue increased to
$1.8 billion, up 19 percent.
- Online Services revenue grew 20 percent, driven by growth in
payments, payroll, and Mailchimp offerings.
- QuickBooks Online Accounting revenue grew 19 percent in the
quarter, driven by customer growth, higher effective prices, and
mix-shift.
- Total international online ecosystem revenue grew 12 percent on
a constant currency basis.
Credit Karma
Credit Karma revenue grew to $443 million, up 8 percent, driven
by strength in Credit Karma Money, credit cards, auto insurance,
and personal loans.
Capital Allocation Summary
In the third quarter, the company:
- Reported a total cash and investments balance of approximately
$4.7 billion and $6.0 billion in debt as of April 30, 2024.
- Repurchased $584 million of shares, with $2.1 billion remaining
on the company's share repurchase authorization.
- Received Board approval for a quarterly dividend of $0.90 per
share, payable July 18, 2024. This represents a 15 percent increase
compared to the same period last year.
Forward-looking Guidance
Intuit raised total company guidance for the full fiscal year
2024. The company expects:
- Revenue of $16.164 billion to $16.200 billion, growth of
approximately 13 percent, up from previous guidance for growth of
11 to 12 percent.
- GAAP operating income of $3.815 billion to $3.835 billion,
growth of approximately 21 to 22 percent, up from previous guidance
for growth of 15 to 18 percent.
- Non-GAAP operating income of $6.360 billion to $6.380 billion,
growth of approximately 16 percent, up from previous guidance for
growth of 12 to 14 percent.
- GAAP diluted earnings per share of $10.78 to $10.83, growth of
approximately 28 to 29 percent, up from previous guidance for
growth of 11 to 15 percent.
- Non-GAAP diluted earnings per share of $16.79 to $16.84, growth
of approximately 17 percent, up from previous guidance for growth
of 12 to 14 percent.
The company also updated full fiscal year 2024 segment revenue
guidance:
- Small Business and Self-Employed Group: $9.467 billion to
$9.481 billion, growth of approximately 18 percent, up from
previous guidance for growth of 16 to 17 percent.
- Consumer Group: $4.440 billion to $4.455 billion, growth of
approximately 7 to 8 percent, at the high end of the previous
range.
- ProTax Group: $597 million to $599 million, growth of
approximately 6 to 7 percent, up from previous guidance for growth
of 3 to 4 percent.
- Credit Karma: $1.660 billion to $1.665 billion, growth of
approximately 2 percent, updated from previous guidance for a
decline of 3 percent to growth of 3 percent.
Intuit announced guidance for the fourth quarter of fiscal year
2024, which ends July 31. The company expects:
- Revenue of $3.063 billion to $3.099 billion, growth of
approximately 13 to 14 percent.
- GAAP diluted earnings per share of $0.25 to $0.30.
- Non-GAAP diluted earnings per share of $1.80 to $1.85.
Conference Call Details
Intuit executives will discuss the financial results on a
conference call at 1:30 p.m. Pacific time on May 23. The conference
call can be heard live at
https://investors.intuit.com/events-and-presentations/default.aspx.
Prepared remarks for the call will be available on Intuit’s website
after the call ends.
Replay Information
A replay of the conference call will be available for one week
by calling 800-723-0549, or 402-220-2657 from international
locations. There is no passcode required. The audio call will
remain available on Intuit’s website for one week after the
conference call.
About Intuit
Intuit is the global financial technology platform that powers
prosperity for the people and communities we serve. With
approximately 100 million customers worldwide using products such
as TurboTax, Credit Karma, QuickBooks, and Mailchimp, we believe
that everyone should have the opportunity to prosper. We never stop
working to find new, innovative ways to make that possible. Please
visit us at Intuit.com and find us on social for the latest
information about Intuit and our products and services.
About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP
financial measures. For a description of these non-GAAP financial
measures, including the reasons management uses each measure, and
reconciliations of these non-GAAP financial measures to the most
directly comparable financial measures prepared in accordance with
Generally Accepted Accounting Principles, please see the section of
the accompanying tables titled "About Non-GAAP Financial Measures"
as well as the related Table B1, Table B2, and Table E. A copy of
the press release issued by Intuit today can be found on the
investor relations page of Intuit's website.
Cautions About Forward-looking Statements
This press release contains forward-looking statements,
including expectations regarding: the size, components and our
share of the tax preparation software space; forecasts and timing
of growth and future financial results of Intuit and its reporting
segments; the impact of macroeconomic conditions on our business,
segments and products; Intuit’s prospects for the business in
fiscal 2024; timing and growth of revenue from current or future
products and services; Intuit's corporate tax rate; the amount and
timing of any future dividends or share repurchases; and the impact
of acquisitions and other strategic decisions on our business; as
well as all of the statements under the heading “Forward-looking
Guidance.”
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our
actual results to differ materially from the expectations expressed
in the forward-looking statements. These risks and uncertainties
may be amplified by the effects of global developments and
conditions or events, including macroeconomic uncertainty and
geopolitical conditions, which have caused significant global
economic instability and uncertainty. Given these risks and
uncertainties, persons regarding this communication are cautioned
not to place any undue reliance on such forward-looking statements.
These factors include, without limitation, the following: our
ability to compete successfully; potential governmental
encroachment in our tax businesses; our ability to develop, deploy,
and use artificial intelligence in our platform and products; our
ability to adapt to technological change and to successfully extend
our platform; our ability to predict consumer behavior; our
reliance on intellectual property; our ability to protect our
intellectual property rights; any harm to our reputation; risks
associated with our ESG and DEI practices; risks associated with
acquisition and divestiture activity; the issuance of equity or
incurrence of debt to fund acquisitions or for general business
purposes; cybersecurity incidents (including those affecting the
third parties we rely on); customer concerns about privacy and
cybersecurity incidents; fraudulent activities by third parties
using our offerings; our failure to process transactions
effectively; interruption or failure of our information technology;
our ability to maintain critical third-party business
relationships; our ability to attract and retain talent and the
success of our hybrid work model; any deficiency in the quality or
accuracy of our offerings (including the advice given by experts on
our platform); any delays in product launches; difficulties in
processing or filing customer tax submissions; risks associated
with international operations; risks associated with climate
change; changes to public policy, laws or regulations affecting our
businesses; legal proceedings in which we are involved;
fluctuations in the results of our tax business due to seasonality
and other factors beyond our control; changes in tax rates and tax
reform legislation; global economic conditions (including, without
limitation, inflation); exposure to credit, counterparty and other
risks in providing capital to businesses; amortization of acquired
intangible assets and impairment charges; our ability to repay or
otherwise comply with the terms of our outstanding debt; our
ability to repurchase shares or distribute dividends; volatility of
our stock price; and our ability to successfully market our
offerings.
More details about these and other risks that may impact our
business are included in our Form 10-K for fiscal 2023 and in our
other SEC filings. You can locate these reports through our website
at http://investors.intuit.com. Fourth-quarter and full-year fiscal
2024 guidance speaks only as of the date it was publicly issued by
Intuit. Other forward-looking statements represent the judgment of
the management of Intuit as of the date of this presentation.
Except as required by law, we do not undertake any duty to update
any forward-looking statement or other information in this
presentation.
TABLE A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
April 30, 2024
April 30, 2023
April 30, 2024
April 30, 2023
Net revenue:
Service
$
6,048
$
5,404
$
11,191
$
9,977
Product and other
689
614
1,910
1,679
Total net revenue
6,737
6,018
13,101
11,656
Costs and expenses:
Cost of revenue:
Cost of service revenue
1,014
924
2,517
2,252
Cost of product and other revenue
17
17
55
56
Amortization of acquired technology
36
40
110
122
Selling and marketing
1,419
1,203
3,208
2,922
Research and development
671
604
2,029
1,859
General and administrative
355
332
1,041
959
Amortization of other acquired intangible
assets
120
120
360
362
Total costs and expenses [A]
3,632
3,240
9,320
8,532
Operating income
3,105
2,778
3,781
3,124
Interest expense
(60
)
(66
)
(182
)
(180
)
Interest and other income, net
27
22
91
50
Income before income taxes
3,072
2,734
3,690
2,994
Income tax provision [B]
683
647
707
699
Net income
$
2,389
$
2,087
$
2,983
$
2,295
Basic net income per share
$
8.53
$
7.44
$
10.65
$
8.17
Shares used in basic per share
calculations
280
281
280
281
Diluted net income per share
$
8.42
$
7.38
$
10.51
$
8.11
Shares used in diluted per share
calculations
284
283
284
283
See accompanying Notes.
INTUIT INC.
NOTES TO TABLE A
[A]
The following table summarizes the total
share-based compensation expense that we recorded in operating
income for the periods shown.
Three Months Ended
Nine Months Ended
(In millions)
April 30, 2024
April 30, 2023
April 30, 2024
April 30, 2023
Cost of revenue
$
98
$
114
$
300
$
291
Selling and marketing
121
96
369
310
Research and development
155
116
478
384
General and administrative
77
93
274
279
Total share-based compensation expense
$
451
$
419
$
1,421
$
1,264
[B]
We compute our provision for or benefit
from income taxes by applying the estimated annual effective tax
rate to income or loss from recurring operations and adding the
effects of any discrete income tax items specific to the
period.
For the three and nine months ended April
30, 2024, we recognized excess tax benefits on share-based
compensation of $40 million and $123 million, respectively, in our
provision for income taxes. For the three and nine months ended
April 30, 2023, we recognized excess tax benefits on share-based
compensation of $17 million and $15 million, respectively, in our
provision for income taxes.
Our effective tax rates for the three and
nine months ended April 30, 2024 were approximately 22% and 19%,
respectively. Excluding discrete tax items primarily related to
share-based compensation, our effective tax rate for both periods
was approximately 24%. The difference from the federal statutory
rate of 21% was primarily due to state income taxes and
non-deductible share-based compensation, which were partially
offset by the tax benefit we received from the federal research and
experimentation credit.
Our effective tax rates for the three and
nine months ended April 30, 2023 were approximately 24% and 23%,
respectively. Excluding discrete tax items primarily related to
share-based compensation, our effective tax rate for both periods
was approximately 24%. The difference from the federal statutory
rate of 21% was primarily due to state income taxes and
non-deductible share-based compensation, which were partially
offset by the tax benefit we received from the federal research and
experimentation credit.
In the current global tax policy
environment, the U.S. and other domestic and foreign governments
continue to consider, and in some cases enact, changes in corporate
tax laws. As changes occur, we account for finalized legislation in
the period of enactment.
TABLE B1
INTUIT INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP
FINANCIAL MEASURES
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2024
Q1
Q2
Q3
Q4
Year to Date
GAAP operating income (loss)
$
307
$
369
$
3,105
$
—
$
3,781
Amortization of acquired technology
38
36
36
—
110
Amortization of other acquired intangible
assets
120
120
120
—
360
Share-based compensation expense
495
475
451
—
1,421
Non-GAAP operating income
(loss)
$
960
$
1,000
$
3,712
$
—
$
5,672
GAAP net income (loss)
$
241
$
353
$
2,389
$
—
$
2,983
Amortization of acquired technology
38
36
36
—
110
Amortization of other acquired intangible
assets
120
120
120
—
360
Share-based compensation expense
495
475
451
—
1,421
Net (gain) loss on debt securities and
other investments
1
(3
)
1
—
(1
)
Loss on disposal of a business
1
—
9
—
10
Income tax effects and adjustments [A]
(198
)
(235
)
(202
)
—
(635
)
Non-GAAP net income (loss)
$
698
$
746
$
2,804
$
—
$
4,248
GAAP diluted net income (loss) per
share
$
0.85
$
1.25
$
8.42
$
—
$
10.51
Amortization of acquired technology
0.13
0.13
0.13
—
0.39
Amortization of other acquired intangible
assets
0.42
0.42
0.42
—
1.26
Share-based compensation expense
1.75
1.67
1.59
—
5.00
Net (gain) loss on debt securities and
other investments
0.01
(0.01
)
—
—
—
Loss on disposal of a business
0.01
—
0.03
—
0.04
Income tax effects and adjustments [A]
(0.70
)
(0.83
)
(0.71
)
—
(2.24
)
Non-GAAP diluted net income (loss) per
share
$
2.47
$
2.63
$
9.88
$
—
$
14.96
Shares used in GAAP diluted per share
calculations
283
284
284
—
284
Shares used in non-GAAP diluted per
share calculations
283
284
284
—
284
[A]
As discussed in “About Non-GAAP Financial
Measures - Income Tax Effects and Adjustments” following Table E,
our long-term non-GAAP tax rate eliminates the effects of
non-recurring and period-specific items. Income tax adjustments
consist primarily of the tax impact of the non-GAAP pre-tax
adjustments and tax benefits related to share-based
compensation.
See “About Non-GAAP Financial Measures”
immediately following Table E for information on these measures,
the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons
management uses each measure and excludes the specified amounts in
arriving at each non-GAAP financial measure.
TABLE B2
INTUIT INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP
FINANCIAL MEASURES
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2023
Q1
Q2
Q3
Q4
Full Year
GAAP operating income (loss)
$
76
$
270
$
2,778
$
17
$
3,141
Amortization of acquired technology
41
41
40
41
163
Amortization of other acquired intangible
assets
121
121
120
121
483
Professional fees for business
combinations
2
1
1
—
4
Share-based compensation expense
422
423
419
448
1,712
Non-GAAP operating income
(loss)
$
662
$
856
$
3,358
$
627
$
5,503
GAAP net income (loss)
$
40
$
168
$
2,087
$
89
$
2,384
Amortization of acquired technology
41
41
40
41
163
Amortization of other acquired intangible
assets
121
121
120
121
483
Professional fees for business
combinations
2
1
1
—
4
Share-based compensation expense
422
423
419
448
1,712
Net (gain) loss on debt securities and
other investments
—
2
6
1
9
Loss on disposal of a business
—
—
—
8
8
Income tax effects and adjustments [A]
(156
)
(136
)
(150
)
(241
)
(683
)
Non-GAAP net income (loss)
$
470
$
620
$
2,523
$
467
$
4,080
GAAP diluted net income (loss) per
share
$
0.14
$
0.60
$
7.38
$
0.32
$
8.42
Amortization of acquired technology
0.14
0.14
0.14
0.14
0.57
Amortization of other acquired intangible
assets
0.43
0.43
0.43
0.43
1.71
Professional fees for business
combinations
0.01
—
—
—
0.01
Share-based compensation expense
1.49
1.50
1.48
1.58
6.05
Net (gain) loss on debt securities and
other investments
—
0.01
0.02
—
0.03
Loss on disposal of a business
—
—
—
0.03
0.03
Income tax effects and adjustments [A]
(0.55
)
(0.48
)
(0.53
)
(0.85
)
(2.42
)
Non-GAAP diluted net income (loss) per
share
$
1.66
$
2.20
$
8.92
$
1.65
$
14.40
Shares used in GAAP diluted per share
calculations
284
282
283
283
283
Shares used in non-GAAP diluted per
share calculations
284
282
283
283
283
[A]
As discussed in "About Non-GAAP Financial
Measures - Income Tax Effects and Adjustments" following Table E,
our long-term non-GAAP tax rate eliminates the effects of
non-recurring and period-specific items. Income tax adjustments
consist primarily of the tax impact of the non-GAAP pre-tax
adjustments and tax benefits related to share-based
compensation.
See “About Non-GAAP Financial Measures”
immediately following Table E for information on these measures,
the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons
management uses each measure and excludes the specified amounts in
arriving at each non-GAAP financial measure.
TABLE C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions)
(Unaudited)
April 30, 2024
July 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
4,215
$
2,848
Investments
463
814
Accounts receivable, net
790
405
Notes receivable held for investment,
net
698
687
Notes receivable held for sale
7
—
Income taxes receivable
4
29
Prepaid expenses and other current
assets
337
354
Current assets before funds receivable and
amounts held for customers
6,514
5,137
Funds receivable and amounts held for
customers
2,722
420
Total current assets
9,236
5,557
Long-term investments
129
105
Property and equipment, net
1,032
969
Operating lease right-of-use assets
428
469
Goodwill
13,778
13,780
Acquired intangible assets, net
5,950
6,419
Long-term deferred income tax assets
512
64
Other assets
495
417
Total assets
$
31,560
$
27,780
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
886
$
638
Accrued compensation and related
liabilities
689
665
Deferred revenue
843
921
Income taxes payable
437
698
Other current liabilities
586
448
Current liabilities before funds payable
and amounts due to customers
3,441
3,370
Funds payable and amounts due to
customers
2,722
420
Total current liabilities
6,163
3,790
Long-term debt
5,952
6,120
Long-term deferred income tax
liabilities
3
4
Operating lease liabilities
468
480
Other long-term obligations
217
117
Total liabilities
12,803
10,511
Stockholders’ equity
18,757
17,269
Total liabilities and stockholders’
equity
$
31,560
$
27,780
TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended
April 30, 2024
April 30, 2023
Cash flows from operating
activities:
Net income
$
2,983
$
2,295
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
111
127
Amortization of acquired intangible
assets
470
484
Non-cash operating lease cost
63
68
Share-based compensation expense
1,421
1,264
Deferred income taxes
(361
)
(389
)
Other
69
48
Total adjustments
1,773
1,602
Originations and purchases of loans held
for sale
(96
)
—
Sales and principal repayments of loans
held for sale
98
—
Changes in operating assets and
liabilities:
Accounts receivable
(384
)
(269
)
Income taxes receivable
25
91
Prepaid expenses and other assets
18
(286
)
Accounts payable
286
212
Accrued compensation and related
liabilities
20
45
Deferred revenue
(79
)
18
Income taxes payable
(262
)
646
Operating lease liabilities
(45
)
(59
)
Other liabilities
130
(91
)
Total changes in operating assets and
liabilities
(291
)
307
Net cash provided by operating
activities
4,467
4,204
Cash flows from investing
activities:
Purchases of corporate and customer fund
investments
(564
)
(566
)
Sales of corporate and customer fund
investments
491
196
Maturities of corporate and customer fund
investments
489
335
Purchases of property and equipment
(208
)
(220
)
Acquisitions of businesses, net of cash
acquired
—
(33
)
Originations and purchases of loans held
for investment
(1,926
)
(1,600
)
Sales of loans originally classified as
held for investment
101
—
Principal repayments of loans held for
investment
1,688
1,365
Other
(46
)
(26
)
Net cash provided by (used in)
investing activities
25
(549
)
Cash flows from financing
activities:
Proceeds from issuance of long-term debt,
net of discount and issuance costs
3,956
—
Repayments of debt
(4,200
)
(509
)
Proceeds from borrowings under unsecured
revolving credit facility
100
—
Repayments on borrowings under unsecured
revolving credit facility
(100
)
—
Proceeds from borrowings under secured
revolving credit facilities
95
212
Repayments on borrowings under secured
revolving credit facilities
(25
)
(22
)
Proceeds from issuance of stock under
employee stock plans
226
150
Payments for employee taxes withheld upon
vesting of restricted stock units
(632
)
(376
)
Cash paid for purchases of treasury
stock
(1,707
)
(1,495
)
Dividends and dividend rights paid
(773
)
(667
)
Net change in funds receivable and funds
payable and amounts due to customers
2,212
(196
)
Other
(3
)
(1
)
Net cash used in financing
activities
(851
)
(2,904
)
Effect of exchange rates on cash, cash
equivalents, restricted cash, and restricted cash equivalents
(12
)
2
Net increase in cash, cash equivalents,
restricted cash, and restricted cash equivalents
3,629
753
Cash, cash equivalents, restricted cash,
and restricted cash equivalents at beginning of period
2,852
2,997
Cash, cash equivalents, restricted
cash, and restricted cash equivalents at end of period
$
6,481
$
3,750
Reconciliation of cash, cash equivalents,
restricted cash, and restricted cash equivalents reported within
the condensed consolidated balance sheets to the total amounts
reported on the condensed consolidated statements of cash flows
Cash and cash equivalents
$
4,215
$
3,745
Restricted cash and restricted cash
equivalents included in funds receivable and amounts held for
customers
2,266
5
Total cash, cash equivalents,
restricted cash, and restricted cash equivalents at end of
period
$
6,481
$
3,750
Supplemental schedule of non-cash
investing activities:
Transfers of loans originated or purchased
as held for investment to held for sale
$
106
$
—
TABLE E
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING
GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE,
OPERATING INCOME, AND EPS
(In millions, except per share
amounts)
(Unaudited)
Forward-Looking
Guidance
GAAP Range of
Estimate
Non-GAAP Range of
Estimate
From
To
Adjmts
From
To
Three Months Ending July 31,
2024
Revenue
$
3,063
$
3,099
$
—
$
3,063
$
3,099
Operating income
$
34
$
54
$
654
[a]
$
688
$
708
Diluted net income per share
$
0.25
$
0.30
$
1.55
[b]
$
1.80
$
1.85
Twelve Months Ending July 31,
2024
Revenue
$
16,164
$
16,200
$
—
$
16,164
$
16,200
Operating income
$
3,815
$
3,835
$
2,545
[c]
$
6,360
$
6,380
Diluted net income per share
$
10.78
$
10.83
$
6.01
[d]
$
16.79
$
16.84
See “About Non-GAAP Financial Measures”
immediately following Table E for information on these measures,
the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons
management uses each measure and excludes the specified amounts in
arriving at each non-GAAP financial measure.
[a]
Reflects estimated adjustments for
share-based compensation expense of approximately $497 million;
amortization of other acquired intangible assets of approximately
$121 million; and amortization of acquired technology of
approximately $36 million.
[b]
Reflects estimated adjustments in item
[a], income taxes related to these adjustments, and other income
tax effects related to the use of the non-GAAP tax rate.
[c]
Reflects estimated adjustments for
share-based compensation expense of approximately $1.9 billion;
amortization of other acquired intangible assets of approximately
$481 million; and amortization of acquired technology of
approximately $146 million.
[d]
Reflects estimated adjustments in item
[c], income taxes related to these adjustments, and other income
tax effects related to the use of the non-GAAP tax rate.
INTUIT INC. ABOUT NON-GAAP FINANCIAL
MEASURES
The accompanying press release dated May 23, 2024 contains
non-GAAP financial measures. Table B1, Table B2, and Table E
reconcile the non-GAAP financial measures in that press release to
the most directly comparable financial measures prepared in
accordance with Generally Accepted Accounting Principles (GAAP).
These non-GAAP financial measures include non-GAAP operating income
(loss), non-GAAP net income (loss), and non-GAAP net income (loss)
per share.
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. These non-GAAP financial measures
do not reflect a comprehensive system of accounting, differ from
GAAP measures with the same names, and may differ from non-GAAP
financial measures with the same or similar names that are used by
other companies.
We compute non-GAAP financial measures using the same consistent
method from quarter to quarter and year to year. We may consider
whether other significant items that arise in the future should be
excluded from our non-GAAP financial measures.
We exclude the following items from all of our non-GAAP
financial measures:
- Share-based compensation expense
- Amortization of acquired technology
- Amortization of other acquired intangible assets
- Goodwill and intangible asset impairment charges
- Gains and losses on disposals of businesses and long-lived
assets
- Professional fees and transaction costs for business
combinations
We also exclude the following items from non-GAAP net income
(loss) and diluted net income (loss) per share:
- Gains and losses on debt securities and other investments
- Income tax effects and adjustments
- Discontinued operations
We believe these non-GAAP financial measures provide meaningful
supplemental information regarding Intuit’s operating results
primarily because they exclude amounts that we do not consider part
of ongoing operating results when planning and forecasting and when
assessing the performance of the organization, our individual
operating segments, or our senior management. Segment managers are
not held accountable for share-based compensation expense,
amortization, or the other excluded items and, accordingly, we
exclude these amounts from our measures of segment performance. We
believe our non-GAAP financial measures also facilitate the
comparison by management and investors of results for current
periods and guidance for future periods with results for past
periods.
The following are descriptions of the items we exclude from our
non-GAAP financial measures.
Share-based compensation expense. This consists of non-cash
expenses for stock options, restricted stock units, and our
Employee Stock Purchase Plan. When considering the impact of equity
awards, we place greater emphasis on overall shareholder dilution
rather than the accounting charges associated with those
awards.
Amortization of acquired technology and amortization of other
acquired intangible assets. When we acquire a business in a
business combination, we are required by GAAP to record the fair
values of the intangible assets of the business and amortize them
over their useful lives. Amortization of acquired technology in
cost of revenue includes amortization of software and other
technology assets of acquired businesses. Amortization of other
acquired intangible assets in operating expenses includes
amortization of assets such as customer lists, covenants not to
compete, and trade names.
Goodwill and intangible asset impairment charges. We exclude
from our non-GAAP financial measures non-cash charges to adjust the
carrying values of goodwill and other acquired intangible assets to
their estimated fair values.
Gains and losses on disposals of businesses and long-lived
assets. We exclude from our non-GAAP financial measures gains and
losses on disposals of businesses and long-lived assets because
they are unrelated to our ongoing business operating results.
Professional fees and transaction costs for business
combinations. We exclude from our non-GAAP financial measures the
professional fees we incur to complete business combinations. These
include investment banking, legal, and accounting fees.
Gains and losses on debt securities and other investments. We
exclude from our non-GAAP financial measures credit losses on
available-for-sale debt securities and gains and losses on other
investments.
Income tax effects and adjustments. We use a long-term non-GAAP
tax rate for evaluating operating results and for planning,
forecasting, and analyzing future periods. This long-term non-GAAP
tax rate excludes the income tax effects of the non-GAAP pre-tax
adjustments described above, and eliminates the effects of
non-recurring and period specific items which can vary in size and
frequency. Based on our long-term projections, we are using a
long-term non-GAAP tax rate of 24% for fiscal year 2024 and fiscal
year 2023. This long-term non-GAAP tax rate could be subject to
change for various reasons including significant acquisitions,
changes in our geographic earnings mix or fundamental tax law
changes in major jurisdictions in which we operate. We will
evaluate this long-term non-GAAP tax rate on an annual basis and
whenever any significant events occur which may materially affect
this rate.
Operating results and gains and losses on the sale of
discontinued operations. From time to time, we sell or otherwise
dispose of selected operations as we adjust our portfolio of
businesses to meet our strategic goals. In accordance with GAAP, we
segregate the operating results of discontinued operations as well
as gains and losses on the sale of these discontinued operations
from continuing operations on our GAAP statements of operations but
continue to include them in GAAP net income or loss and net income
or loss per share. We exclude these amounts from our non-GAAP
financial measures.
The reconciliations of the forward-looking non-GAAP financial
measures to the most directly comparable GAAP financial measures in
Table E include all information reasonably available to Intuit at
the date of this press release. These tables include adjustments
that we can reasonably predict. Events that could cause the
reconciliation to change include acquisitions and divestitures of
businesses, goodwill and other asset impairments, sales of
available-for-sale debt securities and other investments, and
disposals of businesses and long-lived assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240523669287/en/
Investors Kim Watkins Intuit Inc. 650-944-3324
kim_watkins@intuit.com
Media Kali Fry Intuit Inc. 650-944-3036
kali_fry@intuit.com
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