Full year revenue grew 13 percent, Small
Business and Self-Employed Group revenue grew 19 percent
Intuit Inc. (Nasdaq: INTU) the global financial technology
platform that makes TurboTax, Credit Karma, QuickBooks, and
Mailchimp, announced financial results for the fourth quarter and
full fiscal year 2024, which ended July 31, 2024.
“We delivered very strong results for the fourth quarter and
full year, and made meaningful progress with our AI-driven expert
platform strategy that positions the company for durable growth in
the future,” said Sasan Goodarzi, Intuit's chief executive officer.
“Our strategy and five Big Bets are solving our customers’ biggest
problems as we deliver on our mission to power prosperity for
consumers, and small and mid-market businesses.”
Financial Highlights
For the full year, Intuit:
- Grew total revenue to $16.3 billion, up 13 percent
year-over-year.
- Increased combined platform revenue, which includes the Small
Business and Self-Employed Group Online Ecosystem, TurboTax Online
and Credit Karma, 14 percent to $12.5 billion.
- Grew Small Business and Self-Employed Group revenue 19 percent
and Online Ecosystem revenue 20 percent.
- Grew Consumer Group revenue 7 percent to $4.4 billion.
- Increased Credit Karma revenue 5 percent to $1.7 billion.
- Grew GAAP operating income 16 percent to $3.6 billion,
including a restructuring charge of $223 million recognized in the
fourth quarter related to the organizational changes the company
announced in July.
- Increased non-GAAP operating income 16 percent to $6.4
billion.
- Grew GAAP earnings per share 24 percent to $10.43, also
including the restructuring charge.
- Increased non-GAAP earnings per share 18 percent to
$16.94.
For the fourth quarter, Intuit:
- Grew total revenue 17 percent to $3.2 billion.
- Increased Small Business and Self-Employed Group revenue 20
percent to $2.6 billion and Online Ecosystem revenue 18
percent.
- Grew Credit Karma revenue 14 percent to $485 million.
- Reported Consumer Group revenue of $113 million, down 12
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 Fiscal Year 2024 Full-year Results
GAAP
Non-GAAP
FY24
FY23
Change
FY24
FY23
Change
Revenue
$16,285
$14,368
13%
$16,285
$14,368
13%
Operating Income
$3,630
$3,141
16%
$6,402
$5,503
16%
Earnings Per Share
$10.43
$8.42
24%
$16.94
$14.40
18%
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).
Snapshot of Fourth-quarter Fiscal Year 2024 Results
GAAP
Non-GAAP
Q4
FY24
Q4
FY23
Change
Q4
FY24
Q4
FY23
Change
Revenue
$3,184
$2,712
17%
$3,184
$2,712
17%
Operating Income (Loss)
$(151)
$17
NM
$730
$627
16%
Earnings (Loss) Per Share
$(0.07)
$0.32
NM
$1.99
$1.65
21%
NM = Not Meaningful
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
Small Business and Self-Employed
Group
Small Business and Self-Employed Group revenue grew 20 percent
for the quarter and 19 percent for the year. Online Ecosystem
revenue grew 18 percent for the quarter and 20 percent for the
year.
- QuickBooks Online accounting revenue grew 17 percent for the
quarter and 19 percent for the year. Growth in the quarter was
driven by customer growth, higher effective prices, and mix
shift.
- Online services revenue grew 19 percent for the quarter and 21
percent for the year. Growth in the quarter was driven by growth in
payments, payroll, capital, and Mailchimp.
- Total international online revenue grew 11 percent for the
quarter and 13 percent for the year on a constant currency
basis.
In August 2024, Intuit renamed the Small Business and
Self-Employed Group to the Global Business Solutions Group. This
new name better aligns with the global reach of the Mailchimp and
QuickBooks platform, the company's focus on serving both small and
mid-market businesses, and its vision to become the end-to-end
platform that customers use to grow and run their business.
Consumer and ProTax
Groups
Consumer Group revenue grew 7 percent for the year to $4.4
billion.
- TurboTax Live revenue grew 17 percent for the year,
representing approximately 30 percent of total Consumer Group
revenue, and TurboTax Live customers grew 11 percent.
- TurboTax Online units declined 2 percent and total TurboTax
units declined 1 percent for the year, due to share loss with
customers who pay nothing or have a lower average revenue per
return.
TurboTax Federal Unit Data
Units in millions
Season through
July 31, 2024
Season through
July 31, 2023
Change
Year-Over-Year
Desktop Units
4.6
4.5
2%
Online Units
35.4
36.0
(2)%
Total U.S. TurboTax Units
39.9
40.5
(1)%
ProTax Group revenue grew 7 percent for the year.
Credit Karma
Credit Karma revenue grew 5 percent to $1.7 billion for the
year. Credit Karma revenue grew 14 percent for the quarter to $485
million, driven by strength in auto insurance, personal loans,
credit cards, and Credit Karma Money.
Capital Allocation Summary
The company:
- Reported a total cash and investments balance of approximately
$4.1 billion and total debt of $6.0 billion as of July 31.
- Repurchased $2.0 billion of stock during fiscal year 2024. The
Board approved a new $3.0 billion repurchase authorization, giving
the company a total authorization of $4.9 billion to repurchase
shares.
- Received Board approval for a quarterly dividend of $1.04 per
share, payable on October 18, 2024. This represents a 16 percent
increase versus last year.
Forward-looking Guidance
Intuit announced guidance for the full fiscal year 2025. The
company expects:
- Revenue of $18.160 billion to $18.347 billion, growth of
approximately 12 to 13 percent.
- GAAP operating income of $4.649 billion to $4.724 billion,
growth of approximately 28 to 30 percent.
- Non-GAAP operating income of $7.241 billion to $7.316 billion,
growth of approximately 13 to 14 percent.
- GAAP diluted earnings per share of $12.34 to $12.54, growth of
approximately 18 to 20 percent.
- Non-GAAP diluted earnings per share of $19.16 to $19.36, growth
of approximately 13 to 14 percent.
The company expects the following segment revenue results for
fiscal year 2025:
- Small Business and Self-Employed Group: growth of 16 to 17
percent. This includes online ecosystem revenue growth of
approximately 20 percent, and desktop ecosystem revenue growth in
the low single digits.
- Consumer Group: growth of 7 to 8 percent.
- ProTax Group: growth of 3 to 4 percent.
- Credit Karma: growth of 5 to 8 percent.
GAAP guidance reflects an expected $24 million restructuring
charge related to the reorganization the company announced in
July.
Intuit also announced guidance for the first quarter of fiscal
year 2025, which ends Oct. 31. The company expects:
- Revenue growth of approximately 5 to 6 percent, including:
- Small Business and Self-Employed Group revenue growth of 6 to 7
percent. The company expects online ecosystem revenue growth, the
company's growth catalyst, to accelerate to approximately 19
percent in the first quarter of fiscal 2025. The company expects
desktop ecosystem revenue to decline approximately 20 percent in
the first quarter of fiscal 2025, but return to growth in the
second quarter. The first quarter desktop growth outlook reflects
changes the company made to its QuickBooks desktop offerings in
early fiscal 2024 to complete the transition to a recurring
subscription model, including more frequent product updates. The
company expects these changes to lower revenue in the first quarter
of fiscal 2025 by approximately $160 million. This includes
approximately $50 million that was recognized in the first three
quarters of fiscal 2024, approximately $60 million recognized in
the fourth quarter of fiscal 2024, and approximately $50 million
that the company expects to shift from the first quarter of fiscal
2025 to later quarters in fiscal 2025.
- Credit Karma revenue to grow in the first quarter.
- Consumer Group and ProTax revenue to decline in the first
quarter, as the company laps the period a year ago that included
the extended California tax filing deadline.
- GAAP earnings per share of $0.61 to $0.66.
- Non-GAAP diluted earnings per share of $2.33 to $2.38.
GAAP guidance reflects an expected $19 million restructuring
charge that the company expects to incur in the first quarter
related to the reorganization the company announced in July.
Conference Call Details
Intuit executives will discuss the financial results on a
conference call at 1:30 p.m. Pacific time on Aug. 22. The
conference call can be heard live at
https://investors.intuit.com/news-events/ir-calendar. 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 800-938-1595, or 402-220-1544 from international
locations. There is no passcode required. The audio webcast will
remain available on Intuit’s website for one week after the
conference call.
Investor Day 2024
Intuit will host its annual Investor Day on Sept. 26 at 8:00
a.m. Pacific time, at its headquarters in Mountain View, CA and it
can be viewed live at
https://investors.intuit.com/news-events/ir-calendar. The half-day
event will include presentations from Sasan Goodarzi, chief
executive officer, Sandeep Aujla, chief financial officer, and
other leaders.
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 contain forward-looking statements, including
expectations regarding: 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 2025 and beyond;
Intuit’s growth outside the US; timing and growth of revenue from
current or future products, features, and services; innovation
across our ecosystem; demand for our products; customer growth and
retention; average revenue per return and average revenue per
customer; Intuit's corporate tax rate; changes to our products,
including the impact of AI; the amount and timing of any future
dividends or share repurchases; our capital structure; availability
of our offerings; our expectations regarding the timing and costs
associated with our plan of reorganization (“Plan”); and the impact
of acquisitions and 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 or
geopolitical conditions, which have caused significant global
economic instability and uncertainty. Given these risks and
uncertainties, persons receiving 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 an acquisition 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; our ability to realize the anticipated benefits of the
Plan; risks related to the preliminary nature of the estimate of
the charges to be incurred in connection with Plan, which is
subject to change; and risks related to any delays in the timing
for implementing the Plan or potential disruptions to our business
or operations as we execute on the Plan. 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. First quarter and full-year fiscal
2025 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
Twelve Months Ended
July 31,
2024
July 31,
2023
July 31,
2024
July 31,
2023
Net revenue:
Service
$
2,670
$
2,340
$
13,861
$
12,317
Product and other
514
372
2,424
2,051
Total net revenue
3,184
2,712
16,285
14,368
Costs and expenses:
Cost of revenue:
Cost of service revenue
733
656
3,250
2,908
Cost of product and other revenue
14
16
69
72
Amortization of acquired technology
36
41
146
163
Selling and marketing
1,104
840
4,312
3,762
Research and development
725
680
2,754
2,539
General and administrative
377
341
1,418
1,300
Amortization of other acquired intangible
assets
123
121
483
483
Restructuring
223
—
223
—
Total costs and expenses [A]
3,335
2,695
12,655
11,227
Operating income (loss)
(151
)
17
3,630
3,141
Interest expense
(60
)
(68
)
(242
)
(248
)
Interest and other income, net
71
46
162
96
Income (loss) before income taxes
(140
)
(5
)
3,550
2,989
Income tax provision (benefit) [B]
(120
)
(94
)
587
605
Net income (loss)
$
(20
)
$
89
$
2,963
$
2,384
Basic net income (loss) per share
$
(0.07
)
$
0.32
$
10.58
$
8.49
Shares used in basic per share
calculations
280
280
280
281
Diluted net income (loss) per share
$
(0.07
)
$
0.32
$
10.43
$
8.42
Shares used in diluted per share
calculations
280
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 (loss) for the periods shown.
Three Months Ended
Twelve Months Ended
(In millions)
July 31, 2024
July 31, 2023
July 31, 2024
July 31, 2023
Cost of revenue
$
102
$
83
$
402
$
374
Selling and marketing
137
119
506
429
Research and development
161
148
639
532
General and administrative
94
98
368
377
Restructuring
25
—
25
—
Total share-based compensation expense
$
519
$
448
$
1,940
$
1,712
[B]
We recognized excess tax benefits on
share-based compensation of $183 million in our provision for
income taxes for the twelve months ended July 31, 2024 and $32
million for the twelve months ended July 31, 2023.
Our effective tax rate for the twelve
months ended July 31, 2024 was approximately 17%. Excluding certain
tax benefits primarily related to share-based compensation, our
effective tax rate was approximately 24%. This rate differed from
the federal statutory rate of 21% primarily due to state income
taxes and non-deductible share-based compensation, which were
partially offset by the benefit we received from the federal
research and experimentation credit.
Our effective tax rate for the twelve
months ended July 31, 2023 was approximately 20%. Excluding tax
benefits related to share-based compensation and a transfer of
certain intangible assets during the three months ended July 31,
2023 from our United Kingdom subsidiary to the United States, our
effective tax rate was approximately 24%. This rate differed from
the federal statutory rate of 21% primarily due to state income
taxes and non-deductible share-based compensation, which were
partially offset by the 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
Full Year
GAAP operating income (loss)
$
307
$
369
$
3,105
$
(151
)
$
3,630
Amortization of acquired technology
38
36
36
36
146
Amortization of other acquired intangible
assets
120
120
120
123
483
Restructuring [A]
—
—
—
223
223
Professional fees for business
combinations
—
—
—
5
5
Share-based compensation expense
495
475
451
494
1,915
Non-GAAP operating income
(loss)
$
960
$
1,000
$
3,712
$
730
$
6,402
GAAP net income (loss)
$
241
$
353
$
2,389
$
(20
)
$
2,963
Amortization of acquired technology
38
36
36
36
146
Amortization of other acquired intangible
assets
120
120
120
123
483
Restructuring [A]
—
—
—
223
223
Professional fees for business
combinations
—
—
—
5
5
Share-based compensation expense
495
475
451
494
1,915
Net (gain) loss on debt securities and
other investments
1
(3
)
1
1
—
Loss on disposal of a business
1
—
9
(1
)
9
Income tax effects and adjustments [B]
(198
)
(235
)
(202
)
(298
)
(933
)
Non-GAAP net income (loss)
$
698
$
746
$
2,804
$
563
$
4,811
GAAP diluted net income (loss) per
share
$
0.85
$
1.25
$
8.42
$
(0.07
)
$
10.43
Amortization of acquired technology
0.13
0.13
0.13
0.13
0.51
Amortization of other acquired intangible
assets
0.42
0.42
0.42
0.43
1.70
Restructuring [A]
—
—
—
0.79
0.79
Professional fees for business
combinations
—
—
—
0.02
0.02
Share-based compensation expense
1.75
1.67
1.59
1.74
6.75
Net (gain) loss on debt securities and
other investments
0.01
(0.01
)
—
—
—
Loss on disposal of a business
0.01
—
0.03
—
0.03
Income tax effects and adjustments [B]
(0.70
)
(0.83
)
(0.71
)
(1.05
)
(3.29
)
Non-GAAP diluted net income (loss) per
share
$
2.47
$
2.63
$
9.88
$
1.99
$
16.94
Shares used in GAAP diluted per share
calculations
283
284
284
280
284
Shares used in non-GAAP diluted per
share calculations
283
284
284
283
284
[A]
Restructuring charges for the three and
twelve months ended July 31, 2024 includes $25 million in
share-based compensation expense. See "About Non-GAAP Financial
Measures" for further information on restructuring charges.
[B]
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)
July 31, 2024
July 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
3,609
$
2,848
Investments
465
814
Accounts receivable, net
457
405
Notes receivable held for investment,
net
779
687
Notes receivable held for sale
3
—
Income taxes receivable
78
29
Prepaid expenses and other current
assets
366
354
Current assets before funds receivable and
amounts held for customers
5,757
5,137
Funds receivable and amounts held for
customers
3,921
420
Total current assets
9,678
5,557
Long-term investments
131
105
Property and equipment, net
1,009
969
Operating lease right-of-use assets
411
469
Goodwill
13,844
13,780
Acquired intangible assets, net
5,820
6,419
Long-term deferred income tax assets
698
64
Other assets
541
417
Total assets
$
32,132
$
27,780
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Short-term debt
$
499
$
—
Accounts payable
721
638
Accrued compensation and related
liabilities
921
665
Deferred revenue
872
921
Income taxes payable
8
698
Other current liabilities
549
448
Current liabilities before funds payable
and amounts due to customers
3,570
3,370
Funds payable and amounts due to
customers
3,921
420
Total current liabilities
7,491
3,790
Long-term debt
5,539
6,120
Operating lease liabilities
458
480
Other long-term obligations
208
121
Total liabilities
13,696
10,511
Stockholders’ equity
18,436
17,269
Total liabilities and stockholders’
equity
$
32,132
$
27,780
TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(In millions)
(Unaudited)
Twelve Months Ended
July 31, 2024
July 31, 2023
Cash flows from operating
activities:
Net income
$
2,963
$
2,384
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
159
160
Amortization of acquired intangible
assets
630
646
Non-cash operating lease cost
81
90
Share-based compensation expense
1,940
1,712
Deferred income taxes
(554
)
(628
)
Other
92
81
Total adjustments
2,348
2,061
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
(52
)
42
Income taxes receivable
(48
)
64
Prepaid expenses and other assets
(30
)
(75
)
Accounts payable
133
(97
)
Accrued compensation and related
liabilities
257
88
Deferred revenue
(49
)
111
Operating lease liabilities
(71
)
(81
)
Income taxes payable
(691
)
690
Other liabilities
122
(141
)
Total changes in operating assets and
liabilities
(429
)
601
Net cash provided by operating
activities
4,884
5,046
Cash flows from investing
activities:
Purchases of corporate and customer fund
investments
(780
)
(1,015
)
Sales of corporate and customer fund
investments
526
240
Maturities of corporate and customer fund
investments
676
449
Purchases of property and equipment
(250
)
(260
)
Acquisitions of businesses, net of cash
acquired
(83
)
(33
)
Originations and purchases of loans held
for investment
(2,538
)
(1,983
)
Sales of loans originally classified as
held for investment
234
—
Principal repayments of loans held for
investment
2,068
1,727
Other
(80
)
(47
)
Net cash used in investing
activities
(227
)
(922
)
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
)
(1,009
)
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
180
222
Repayments on borrowings under secured
revolving credit facilities
(25
)
(23
)
Proceeds from issuance of stock under
employee stock plans
282
228
Payments for employee taxes withheld upon
vesting of restricted stock units
(1,002
)
(633
)
Cash paid for purchases of treasury
stock
(1,988
)
(1,967
)
Dividends and dividend rights paid
(1,034
)
(889
)
Net change in funds receivable and funds
payable and amounts due to customers
3,436
(197
)
Other
(2
)
(1
)
Net cash used in financing
activities
(397
)
(4,269
)
Effect of exchange rates on cash, cash
equivalents, restricted cash, and restricted cash equivalents
(13
)
—
Net increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
4,247
(145
)
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
$
7,099
$
2,852
Reconciliation of cash, cash equivalents,
restricted cash, and restricted cash equivalents reported within
the consolidated balance sheets to the total amounts reported on
the consolidated statements of cash flows
Cash and cash equivalents
$
3,609
$
2,848
Restricted cash and restricted cash
equivalents included in funds receivable and amounts held for
customers
3,490
4
Total cash, cash equivalents,
restricted cash, and restricted cash equivalents at end of
period
$
7,099
$
2,852
Supplemental disclosure of cash flow
information:
Interest paid
$
200
$
272
Income taxes paid
$
1,881
$
484
Supplemental schedule of non-cash
investing activities:
Transfers of loans originated or purchased
as held for investment to held for sale
$
231
$
—
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 October 31,
2024
Revenue
$
3,114
$
3,145
$
—
$
3,114
$
3,145
Operating income
$
231
$
251
$
653
[a]
$
884
$
904
Diluted earnings per share
$
0.61
$
0.66
$
1.72
[b]
$
2.33
$
2.38
Twelve Months Ending July 31,
2025
Revenue
$
18,160
$
18,347
$
—
$
18,160
$
18,347
Operating income
$
4,649
$
4,724
$
2,592
[c]
$
7,241
$
7,316
Diluted earnings per share
$
12.34
$
12.54
$
6.82
[d]
$
19.16
$
19.36
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 $477 million;
amortization of acquired technology of approximately $37 million;
amortization of other acquired intangible assets of approximately
$120 million; and restructuring charges of approximately $19
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 acquired technology of approximately $148 million;
amortization of other acquired intangible assets of approximately
$482 million; and restructuring charges of approximately $24
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 August 22, 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. Beginning with the
fourth quarter of fiscal 2024, we exclude from our non-GAAP
measures restructuring charges, as described below. There were no
restructuring charges in any prior period presented.
We exclude the following items from all of our non-GAAP
financial measures:
- Amortization of acquired technology
- Amortization of other acquired intangible assets
- Restructuring charges
- Share-based compensation expense
- 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, restructuring, 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.
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 and trade names.
Restructuring charges. This consists of costs incurred as a
direct result of discrete strategic restructuring actions,
including, but not limited to severance and other one-time
termination benefits, and other costs, which are different in terms
of size, strategic nature, and frequency than ongoing productivity
and business improvements.
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.
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 2024 and fiscal 2025.
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/20240822939959/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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