10-KPeriod: FY2018

INTUIT INC. Annual Report, Year Ended Jul 31, 2018

Filed August 31, 2018For Securities:INTU

Summary

Intuit Inc. (INTU) reported strong performance for the fiscal year ended July 31, 2018, with total net revenue growing 15% to $6.0 billion. This growth was driven by robust performance across its key segments, particularly Small Business & Self-Employed, which saw an 18% increase in revenue, and the Consumer segment, which grew revenue by 14%. The company highlighted the significant expansion of its online ecosystem and strong customer acquisition, particularly in QuickBooks Online. Diluted net income per share increased by a substantial 25% to $4.64, aided by a lower effective tax rate resulting from the Tax Cuts and Jobs Act. Intuit continues to invest heavily in product development, with R&D expenses representing 20% of total net revenue. The company also demonstrated a commitment to returning capital to shareholders, with significant stock repurchases and an increase in quarterly dividends. Looking ahead, Intuit is focused on its 'One Intuit Ecosystem' strategy, leveraging artificial intelligence and machine learning to deliver personalized experiences and expanding its platform through partnerships. Despite facing intense competition and ongoing technological evolution, Intuit's strategic focus on innovation and customer needs positions it for continued growth.

Financial Highlights

56 data points
Beta

Revenue

$6.03B

Net Income

$1.33B

22.1% Net Margin

EPS (Diluted)

$5.09

Total Assets

$5.13B

Cash & Equivalents

$1.46B

Free Cash Flow

$2.07B

Financial Statements
Beta
Revenue$6.03B
R&D Expenses$1.19B
Operating Expenses$4.46B
Operating Income$1.56B
Interest Expense$20.00M
Net Income$1.33B
EPS (Basic)$5.18
EPS (Diluted)$5.09
Shares Outstanding (Basic)256.00M
Shares Outstanding (Diluted)261.00M

Key Highlights

  • 1Total net revenue increased by 15% to $6.0 billion in fiscal year 2018.
  • 2Small Business & Self-Employed segment revenue grew 18%, driven by customer acquisition in the Online Ecosystem, with QuickBooks Online subscribers reaching 3.4 million.
  • 3Consumer segment revenue increased 14% due to higher average revenue per customer and growth in TurboTax federal units.
  • 4Diluted net income per share rose 25% to $4.64, benefiting from a lower effective tax rate.
  • 5Research and Development (R&D) expenses were $1.2 billion, representing 20% of total net revenue, underscoring a commitment to innovation.
  • 6Intuit returned significant capital to shareholders through $407 million in dividends and substantial stock repurchases, with $1.2 billion remaining under its authorization at the end of the fiscal year.
  • 7The company is strategically focused on developing its 'One Intuit Ecosystem' through personalization, an open platform, and indispensable connections, utilizing AI and machine learning.

Frequently Asked Questions

Intuit's revenue growth was primarily driven by its Small Business & Self-Employed segment, which saw an 18% increase, largely due to customer acquisition in its Online Ecosystem, particularly QuickBooks Online. The Consumer segment also contributed significantly with a 14% revenue increase, attributed to higher average revenue per customer and increased TurboTax federal units.

Intuit demonstrated strong profitability in fiscal year 2018. Operating income from continuing operations increased by 7%, and net income from continuing operations saw a significant jump of 25%. This growth was reflected in diluted net income per share, which increased by 25% to $4.64. The company's effective tax rate was also lower due to the Tax Cuts and Jobs Act.

Intuit's growth strategy is centered around its 'One Intuit Ecosystem,' focusing on delivering personalized experiences through AI and machine learning, maintaining a trusted open platform, and building indispensable connections between customers and partners. To support this, the company invested heavily in product development, allocating $1.2 billion (20% of total net revenue) to R&D in fiscal year 2018.

Intuit returned value to shareholders through both dividends and stock repurchases. In fiscal year 2018, the company paid out $407 million in cash dividends. It also continued its stock repurchase program, with $1.2 billion remaining authorization at the end of the fiscal year, indicating a commitment to capital return.