Summary
For the fiscal year ended July 31, 2016, Intuit Inc. reported total net revenue of $4.7 billion, marking a 12% increase compared to the previous year. The company experienced strong growth across its segments, with Consumer Tax revenue up 10%, Small Business revenue up 9%, and ProConnect revenue seeing a significant 51% increase. This growth was driven by the shift to cloud-based services, increased unit sales in TurboTax, and a change in revenue recognition for desktop software products, which now recognize revenue over time. Intuit continues to invest heavily in product development, with R&D expenses representing 19% of total net revenue. The company also demonstrated a strong commitment to returning capital to shareholders through dividends and substantial stock repurchases. Management expressed confidence in future growth, driven by its strategy to become the operating system for small business success and its ongoing transition to connected services.
Financial Highlights
58 data points| Revenue | $4.69B |
| Cost of Revenue | $131.00M |
| Gross Profit | $4.56B |
| R&D Expenses | $881.00M |
| Operating Expenses | $3.45B |
| Operating Income | $1.24B |
| Interest Expense | $35.00M |
| Net Income | $979.00M |
| EPS (Basic) | $3.73 |
| EPS (Diluted) | $3.69 |
| Shares Outstanding (Basic) | 262.00M |
| Shares Outstanding (Diluted) | 265.00M |
Key Highlights
- 1Total net revenue grew 12% to $4.7 billion in fiscal year 2016.
- 2Consumer Tax segment revenue increased by 10%, driven by a 12% rise in TurboTax U.S. federal units.
- 3Small Business segment revenue grew 9%, with a 25% increase in the Online Ecosystem driven by a 41% rise in QuickBooks Online subscribers.
- 4ProConnect segment revenue surged by 51% due to the revised revenue recognition for desktop software products.
- 5Research and Development (R&D) expenses remained significant at 19% of total net revenue ($881 million), reflecting continued investment in innovation.
- 6The company returned $318 million to shareholders through dividends and actively repurchased shares, with $360 million authorized for future repurchases at fiscal year-end.
- 7Connected services now represent 73% of total revenue, up from 50% eight years prior, indicating a successful strategic shift to cloud-based offerings.