10-KPeriod: FY2013

INTUIT INC. Annual Report, Year Ended Jul 31, 2013

Filed September 13, 2013For Securities:INTU

Summary

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 billion, 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.

Financial Highlights

56 data points
Beta

Revenue

$3.95B

96.8% Gross Margin

Net Income

$858.00M

21.7% Net Margin

EPS (Diluted)

$2.83

Total Assets

$5.49B

Cash & Equivalents

$1.01B

Free Cash Flow

$1.24B

Financial Statements
Beta
Revenue$3.95B
Cost of Revenue$125.00M
Gross Profit$3.82B
R&D Expenses$647.00M
Operating Expenses$2.74B
Operating Income$1.21B
Interest Expense$30.00M
Net Income$858.00M
EPS (Basic)$2.89
EPS (Diluted)$2.83
Shares Outstanding (Basic)297.00M
Shares Outstanding (Diluted)303.00M

Key Highlights

  • 1Total net revenue increased by 10% to $4.2 billion in fiscal year 2013.
  • 2Small Business Group revenue grew 16%, driven by connected services and the Demandforce acquisition.
  • 3Consumer Tax segment revenue increased by 4%, supported by growth in paid federal units.
  • 4Intuit invested 17% of total net revenue ($685 million) in research and development to drive innovation.
  • 5The company divested Intuit Financial Services and Intuit Health to focus on core offerings.
  • 6Intuit continued to return capital to shareholders through dividends ($203 million in FY13) and share repurchases.
  • 7Operating income from continuing operations increased by 6% to $1.23 billion.

Frequently Asked Questions

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.

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.

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.

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.