10-KPeriod: FY2012

INTUIT INC. Annual Report, Year Ended Jul 31, 2012

Filed September 13, 2012For Securities:INTU

Summary

Intuit Inc. (INTU) reported strong performance for the fiscal year ended July 31, 2012, with total net revenue increasing by 10% to $4.2 billion. 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% 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 million 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.

Financial Highlights

57 data points
Beta

Revenue

$3.81B

96.2% Gross Margin

Net Income

$792.00M

20.8% Net Margin

EPS (Diluted)

$2.60

Total Assets

$4.68B

Cash & Equivalents

$393.00M

Free Cash Flow

$1.11B

Financial Statements
Beta
Revenue$3.81B
Cost of Revenue$146.00M
Gross Profit$3.66B
R&D Expenses$618.00M
Operating Expenses$2.64B
Operating Income$1.17B
Interest Expense$50.00M
Net Income$792.00M
EPS (Basic)$2.67
EPS (Diluted)$2.60
Shares Outstanding (Basic)296.00M
Shares Outstanding (Diluted)305.00M

Key Highlights

  • 1Total 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.
  • 2Connected services now represent 64% of total revenue, indicating a successful transition towards online and mobile solutions.
  • 3Operating income from continuing operations grew by 14% to $1.18 billion, reflecting effective revenue growth and cost management.
  • 4The company repurchased $900 million of its common stock during fiscal year 2012 and initiated a cash dividend program, returning capital to shareholders.
  • 5Research and development expenses were $669 million (16% of revenue), highlighting Intuit's commitment to innovation and product development.
  • 6The company experienced strong growth in its Payment Solutions segment, with revenue up 20%.
  • 7Seasonality remains a key factor, with revenues typically peaking in the second and third fiscal quarters due to the tax preparation business.

Frequently Asked Questions

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.

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.

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.

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.