01—Abstract
Summary
Summary of the 10-K filed September 13, 2012. Cited figures are marked; the original filing is the authoritative source.
Intuit Inc. (INTU) reported strong performance for the fiscal year ended July 31, 2012, with total net revenue increasing by 10% to $4.2 billiona.
This growth was primarily driven by robust performance in the Small Business Group and the Consumer Tax segment. The company continues its strategic shift towards connected services, which now represent 64%b of total revenue, highlighting the increasing importance of online and mobile offerings. Intuit demonstrated effective cost management, leading to a 14% increase in operating income from continuing operations.
The company also returned value to shareholders through significant stock repurchases totaling $900 millionc and initiated its first cash dividend in fiscal year 2012, signaling a growing confidence in its financial stability and future prospects. The company is well-positioned to capitalize on the ongoing trend of digital transformation in financial management and tax preparation services.
02—Key points
Key Highlights
- Total net revenue increased by 10% to $4.2 billion for the fiscal year ended July 31, 2012, primarily driven by growth in the Small Business Group and Consumer Tax segments.
- Connected services now represent 64% of total revenue, indicating a successful transition towards online and mobile solutions.
- Operating income from continuing operations grew by 14% to $1.18 billion, reflecting effective revenue growth and cost management.
- The company repurchased $900 million of its common stock during fiscal year 2012 and initiated a cash dividend program, returning capital to shareholders.
- Research and development expenses were $669 million (16% of revenue), highlighting Intuit's commitment to innovation and product development.
- The company experienced strong growth in its Payment Solutions segment, with revenue up 20%.
- Seasonality remains a key factor, with revenues typically peaking in the second and third fiscal quarters due to the tax preparation business.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Intuit kept $0.21.
- Revenue$3.81B100.0%
- Cost of revenue−$146.0M3.8%
- Gross profit$3.66B96.2%
- Operating costs−$2.49B65.5%
- Operating income$1.17B30.7%
- Interest, other & tax−$376.0M9.9%
- Net income$792.0M20.8%
Where FY2012 revenue went
$3.81B- Other operating costs: $1.88B, 49% of revenue
- Net income: $792.0M, 21% of revenue
- R&D: $618.0M, 16% of revenue
- Cost of revenue: $146.0M, 3.8% of revenue
- Interest, other & tax: $376.0M, 9.9% of revenue
Kept 21% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed September 13, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $3.81B$3.45B | +10.4% |
| Cost of Revenue | $146.00M$143.00M | +2.1% |
| Gross Profit | $3.66B$3.31B | +10.8% |
| R&D Expenses | $618.00M$566.00M | +9.2% |
| Operating Expenses | $2.64B$2.37B | +11.5% |
| Operating Income | $1.17B$1.08B | +7.9% |
| Interest Expense | $50.00M$60.00M | −16.7% |
| Net Income | $792.00M$634.00M | +24.9% |
| EPS (Basic) | $2.67$2.06 | +29.6% |
| EPS (Diluted) | $2.60$2.00 | +30.0% |
| Shares Outstanding (Basic) | 296.00M307.00M | −3.6% |
| Shares Outstanding (Diluted) | 305.00M317.00M | −3.8% |
05—Questions
Frequently Asked Questions
What were the main drivers of Intuit's revenue growth in fiscal year 2012?
Intuit's revenue growth was primarily driven by its Small Business Group, which saw a 14% increase, and its Consumer Tax segment, which grew by 11%. The company's shift towards connected services, including online and mobile offerings like QuickBooks Online and TurboTax Online, was a significant contributor to this growth.
How is Intuit returning value to its shareholders?
In fiscal year 2012, Intuit demonstrated its commitment to shareholder value by repurchasing $900 million of its common stock. Additionally, the company initiated its first cash dividend program, declaring and paying $0.60 per share during the fiscal year, indicating increased financial confidence.
What is Intuit's strategy regarding its product and service offerings?
Intuit's core strategy is to drive growth in its established businesses (QuickBooks, TurboTax), build adjacent businesses, and accelerate its transition to connected services. This includes a 'mobile-first' approach and leveraging data to enhance customer experience across its product portfolio.
What are the main risks highlighted by Intuit in this filing?
Key risks identified include intense competition (from both established players and emerging free services), the need to adapt to rapid technological change and successfully launch new products, potential business interruptions from IT system failures, and increased government regulation in its various business segments.
06—Continue