01—Abstract
Summary
Summary of the 10-K filed September 13, 2013. Cited figures are marked; the original filing is the authoritative source.
Intuit Inc.'s fiscal year 2013 filing highlights continued revenue growth, driven primarily by its Small Business Group and Consumer Tax segments.
The company reported total net revenue of $4.2 billiona, a 10% increase year-over-year, with operating income from continuing operations growing 6% to $1.23 billion. This growth was supported by increasing adoption of online services, particularly QuickBooks Online, and a strong performance in the tax preparation business. Intuit continues to invest heavily in product development and marketing, with R&D expenses representing 17% of total net revenue.
The company is strategically shifting towards connected services and mobile-first solutions, aiming to be the "operating system behind small business success" and to "do the nation's taxes." Significant divestitures were also completed in fiscal year 2013, including Intuit Financial Services and Intuit Health, to sharpen focus on core business areas. The company also maintained a strong commitment to returning capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Total net revenue increased by 10% to $4.2 billion in fiscal year 2013.
- Small Business Group revenue grew 16%, driven by connected services and the Demandforce acquisition.
- Consumer Tax segment revenue increased by 4%, supported by growth in paid federal units.
- Intuit invested 17% of total net revenue ($685 million) in research and development to drive innovation.
- The company divested Intuit Financial Services and Intuit Health to focus on core offerings.
- Intuit continued to return capital to shareholders through dividends ($203 million in FY13) and share repurchases.
- Operating income from continuing operations increased by 6% to $1.23 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Intuit kept $0.22.
- Revenue$3.95B100.0%
- Cost of revenue−$125.0M3.2%
- Gross profit$3.82B96.8%
- Operating costs−$2.61B66.2%
- Operating income$1.21B30.6%
- Interest, other & tax−$350.0M8.9%
- Net income$858.0M21.7%
Where FY2013 revenue went
$3.95B- Other operating costs: $1.97B, 50% of revenue
- Net income: $858.0M, 22% of revenue
- R&D: $647.0M, 16% of revenue
- Cost of revenue: $125.0M, 3.2% of revenue
- Interest, other & tax: $350.0M, 8.9% of revenue
Kept 22% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed September 13, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $3.95B$3.81B | +3.6% |
| Cost of Revenue | $125.00M$146.00M | −14.4% |
| Gross Profit | $3.82B$3.66B | +4.3% |
| R&D Expenses | $647.00M$618.00M | +4.7% |
| Operating Expenses | $2.74B$2.64B | +3.7% |
| Operating Income | $1.21B$1.17B | +3.4% |
| Interest Expense | $30.00M$50.00M | −40.0% |
| Net Income | $858.00M$792.00M | +8.3% |
| EPS (Basic) | $2.89$2.67 | +8.2% |
| EPS (Diluted) | $2.83$2.60 | +8.8% |
| Shares Outstanding (Basic) | 297.00M296.00M | +0.3% |
| Shares Outstanding (Diluted) | 303.00M305.00M | −0.7% |
05—Questions
Frequently Asked Questions
What were Intuit's key revenue drivers in fiscal year 2013?
Intuit's revenue growth in fiscal year 2013 was primarily driven by its Small Business Group, which saw a 16% increase due to strong performance in connected services like QuickBooks Online and the recent acquisition of Demandforce. The Consumer Tax segment also contributed positively with a 4% increase, largely due to growth in paid federal tax units.
How is Intuit positioning itself for future growth?
Intuit is strategically focused on becoming the "operating system behind small business success" and "doing the nation's taxes." This involves a strong emphasis on developing and expanding connected services, adopting a mobile-first strategy for its products, and leveraging data to improve customer experiences. The company is also actively divesting non-core assets to concentrate resources on these key growth areas.
What is Intuit's approach to returning capital to shareholders?
Intuit demonstrated a commitment to returning capital to shareholders in fiscal year 2013 by paying cash dividends totaling $0.68 per share, amounting to $203 million. Additionally, the company actively engaged in share repurchases, with authorization for up to $1.4 billion remaining under an existing plan and a new $2 billion program approved in August 2013, including a $1.4 billion accelerated share repurchase agreement.
How did Intuit manage its investments and liquidity?
Intuit maintained a strong liquidity position, ending fiscal year 2013 with $1.7 billion in cash, cash equivalents, and investments. The company generated substantial cash from operations and strategically invested in R&D and sales/marketing. They also managed their investment portfolio conservatively and had an unused $500 million revolving credit facility available.
06—Continue