Summary
Intuit Inc. reported its financial results for the second quarter and first half of fiscal year 2010, ending January 31, 2010. Total net revenue for the quarter increased by 8% year-over-year to $837 million, driven by growth in several segments including Consumer Tax and Payment Solutions, partially offset by a decline in Financial Management Solutions. For the first half of the fiscal year, total net revenue grew 6% to $1.31 billion. The company successfully divested its Intuit Real Estate Solutions (IRES) business, recording a gain on disposal. Acquisitions, including Mint Software Inc. and PayCycle, Inc., contributed to revenue growth and expanded service offerings. Despite revenue increases, net income from continuing operations saw a decline, particularly for the six-month period, primarily due to higher interest expenses and the absence of significant discrete tax benefits realized in the prior year. Diluted earnings per share from continuing operations also decreased year-over-year. Intuit continues to manage its capital through stock repurchases and has authorization for further repurchases. The company remains focused on its core products and services while navigating a challenging economic environment.
Financial Highlights
50 data points| Revenue | $857.00M |
| Cost of Revenue | $175.00M |
| Gross Profit | $682.00M |
| R&D Expenses | $144.00M |
| Operating Expenses | $560.00M |
| Operating Income | $122.00M |
| Interest Expense | $15.00M |
| Net Income | $73.00M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 314.00M |
| Shares Outstanding (Diluted) | 323.00M |
Key Highlights
- 1Total net revenue for the second quarter increased 8% to $837 million, and 6% to $1.31 billion for the first half of fiscal 2010.
- 2Sold Intuit Real Estate Solutions (IRES) business for approximately $128 million, resulting in a net gain of $35 million.
- 3Acquired Mint Software Inc. for approximately $170 million and PayCycle, Inc. for approximately $169 million, integrating them into relevant business segments.
- 4Net income from continuing operations decreased for both the quarter and year-to-date periods compared to the prior year, impacted by higher interest expense and tax rate fluctuations.
- 5Diluted earnings per share from continuing operations declined to $0.25 for the quarter and $0.03 for the year-to-date period.
- 6Strong performance in the Consumer Tax segment, with revenue up 18% year-to-date, driven by TurboTax Online growth.
- 7The company maintained a strong cash position, ending the period with $946 million in cash, cash equivalents, and investments.