01—Abstract
Summary
Summary of the 10-K filed September 16, 2010. Cited figures are marked; the original filing is the authoritative source.
Intuit Inc.'s 2010 10-K report details a strong fiscal year, with total net revenue growing 11% to $3.5 billiona.
This growth was driven by broad-based performance across its key segments, including Consumer Tax, Small Business, and Financial Services. The company highlighted its strategic shift towards connected services, which accounted for nearly 60%b of revenue, with Software-as-a-Service (SaaS) contributing approximately one-third. Intuit also emphasized its ongoing investment in research and development, representing 17% of total net revenue, to foster innovation and adapt to evolving technological and market trends.
Financially, the company maintained a healthy cash position and continued its shareholder return program through stock repurchases. Key financial highlights include a 23% increase in diluted net income per share from continuing operations to $1.66c.
The company's balance sheet remained robust, with cash, cash equivalents, and investments totaling $1.6 billiond at the end of the fiscal year. Intuit's commitment to innovation and customer focus is evident in its product development and strategic acquisitions, positioning it for continued growth in the dynamic financial management and tax preparation markets.
02—Key points
Key Highlights
- Total net revenue increased by 11% to $3.5 billion for fiscal year 2010.
- Diluted net income per share from continuing operations grew by 23% to $1.66.
- Connected services accounted for nearly 60% of total revenue, signaling a successful transition to online and service-based offerings.
- Research and development expenses were $573 million, representing 17% of total net revenue, underscoring a commitment to innovation.
- The company ended the fiscal year with $1.6 billion in cash, cash equivalents, and investments, demonstrating strong liquidity.
- Intuit continued its stock repurchase program, announcing a new authorization of up to $2 billion.
- The Consumer Tax segment saw significant growth, driven by a 19% increase in TurboTax Online units.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2010, Intuit kept $0.17.
- Revenue$3.40B100.0%
- Cost of revenue−$144.0M4.2%
- Gross profit$3.26B95.8%
- Operating costs−$2.35B69.2%
- Operating income$904.0M26.6%
- Interest, other & tax−$330.0M9.7%
- Net income$574.0M16.9%
Where FY2010 revenue went
$3.40B- Other operating costs: $1.79B, 53% of revenue
- Net income: $574.0M, 17% of revenue
- R&D: $564.0M, 17% of revenue
- Cost of revenue: $144.0M, 4.2% of revenue
- Interest, other & tax: $330.0M, 9.7% of revenue
Kept 17% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2010filed September 16, 2010Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $3.40B$3.11B | +9.5% |
| Cost of Revenue | $144.00M$156.00M | −7.7% |
| Gross Profit | $3.26B$2.95B | +10.4% |
| R&D Expenses | $564.00M$556.00M | +1.4% |
| Operating Expenses | $2.50B$2.43B | +3.0% |
| Operating Income | $904.00M$683.00M | +32.4% |
| Interest Expense | $61.00M$51.00M | +19.6% |
| Net Income | $574.00M$447.00M | +28.4% |
| EPS (Basic) | $1.82$1.39 | +30.9% |
| EPS (Diluted) | $1.77$1.35 | +31.1% |
| Shares Outstanding (Basic) | 316.00M322.00M | −1.9% |
| Shares Outstanding (Diluted) | 325.00M330.00M | −1.5% |
05—Questions
Frequently Asked Questions
What was Intuit's revenue growth in Fiscal Year 2010?
Intuit's total net revenue grew by 11% to $3.5 billion in Fiscal Year 2010.
How did Intuit's move to connected services impact its revenue?
Connected services represented nearly 60% of Intuit's revenue in Fiscal Year 2010, with Software-as-a-Service (SaaS) offerings alone contributing roughly one-third, demonstrating a successful shift towards digital and service-based business models.
What is Intuit's strategy for future growth?
Intuit's growth strategy focuses on driving growth in its core businesses (QuickBooks, TurboTax, etc.), building adjacent businesses and entering new geographies, and accelerating its transition to connected services, leveraging trends in social, mobile, and global markets.
How did acquisitions impact Intuit's financial performance in FY2010?
Intuit made several strategic acquisitions in FY2010, including Mint Software Inc. and Medfusion, Inc. These acquisitions expanded its product portfolio and are expected to contribute to its 'Connected Services' strategy. The report indicates that the results of these acquired companies were included in the consolidated results of operations from their respective dates of acquisition.
What was the company's R&D investment in FY2010?
Intuit invested $573 million in research and development in FY2010, which represented 17% of its total net revenue, highlighting its commitment to innovation and product development.
06—Continue