01—Abstract
Summary
Summary of the 10-K filed September 14, 2011. Cited figures are marked; the original filing is the authoritative source.
Intuit Inc. demonstrated robust financial performance in its fiscal year ended July 31, 2011, with total net revenue reaching $3.9 billiona, an increase of 11% year-over-year, primarily driven by growth in its Small Business Group and Consumer Tax segments.
The company's strategic shift towards connected services continues to yield positive results, with over 60%b of revenue generated from these offerings. Significant investments in research and development, accounting for 16% of revenue, underscore Intuit's commitment to innovation and adapting to evolving market trends.
The company is actively managing its capital through a strong stock repurchase program and, for the first time in its history, initiated a quarterly cash dividend. Intuit's diversified business portfolio, encompassing small business solutions, tax preparation, and financial services, positions it well for continued growth, although competitive pressures and the dynamic technological landscape remain key areas of focus.
02—Key points
Key Highlights
- Total net revenue grew by 11% to $3.9 billion in fiscal year 2011.
- The Small Business Group and Consumer Tax segments were the primary drivers of revenue growth.
- Connected services accounted for over 60% of total revenue, highlighting a successful transition to cloud-based offerings.
- Research and development expenses represented 16% of total net revenue, emphasizing investment in innovation.
- Intuit initiated its first quarterly cash dividend in August 2011, signaling a return of capital to shareholders.
- The company continued its aggressive stock repurchase program, demonstrating a commitment to enhancing shareholder value.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Intuit kept $0.18.
- Revenue$3.45B100.0%
- Cost of revenue−$143.0M4.1%
- Gross profit$3.31B95.9%
- Operating costs−$2.22B64.5%
- Operating income$1.08B31.4%
- Interest, other & tax−$448.0M13.0%
- Net income$634.0M18.4%
Where FY2011 revenue went
$3.45B- Other operating costs: $1.66B, 48% of revenue
- Net income: $634.0M, 18% of revenue
- R&D: $566.0M, 16% of revenue
- Interest, other & tax: $448.0M, 13% of revenue
- Cost of revenue: $143.0M, 4.1% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed September 14, 2011Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $3.45B$3.40B | +1.4% |
| Cost of Revenue | $143.00M$144.00M | −0.7% |
| Gross Profit | $3.31B$3.26B | +1.4% |
| R&D Expenses | $566.00M$564.00M | +0.4% |
| Operating Expenses | $2.37B$2.50B | −5.3% |
| Operating Income | $1.08B$904.00M | +19.7% |
| Interest Expense | $60.00M$61.00M | −1.6% |
| Net Income | $634.00M$574.00M | +10.5% |
| EPS (Basic) | $2.06$1.82 | +13.2% |
| EPS (Diluted) | $2.00$1.77 | +13.0% |
| Shares Outstanding (Basic) | 307.00M316.00M | −2.8% |
| Shares Outstanding (Diluted) | 317.00M325.00M | −2.5% |
05—Questions
Frequently Asked Questions
What were Intuit's main revenue drivers in fiscal year 2011?
Intuit's primary revenue drivers in fiscal year 2011 were its Small Business Group and Consumer Tax segments. The Small Business Group saw a 12% increase in revenue, attributed to growth in connected services and improved product mix. The Consumer Tax segment experienced a 13% increase, largely due to growth in TurboTax Online units.
How is Intuit positioned for future growth?
Intuit is pursuing growth through a three-point strategy: driving growth in its core businesses (QuickBooks, TurboTax, Quicken), building adjacent businesses and entering new geographies, and accelerating its transition to connected services. The company's significant investment in R&D and its focus on adapting products for Web and mobile platforms are key to its future growth.
What is Intuit's approach to returning capital to shareholders?
Intuit historically focused on stock repurchases to return capital. In August 2011, the company declared its first-ever cash dividend of $0.15 per share, signaling a shift towards a more balanced capital return strategy. The company also continued its substantial stock repurchase program, authorizing an additional $2 billion in repurchases.
What are the key risks Intuit faces?
Intuit faces several risks, including intense competition from both established companies and new entrants, the rapid pace of technological change requiring continuous innovation, potential business interruptions from IT system failures, and risks associated with handling and securing customer data. Additionally, the seasonality of its tax business can lead to significant quarterly fluctuations in revenue and profitability.
06—Continue