10-QPeriod: Q3 FY2010

INTUIT INC. Quarterly Report for Q3 Ended Apr 30, 2010

Filed May 28, 2010For Securities:INTU

Summary

Intuit Inc. reported solid financial performance for the nine months ended April 30, 2010, demonstrating robust revenue and income growth compared to the prior year. Total net revenue increased by 10% to $2.9 billion, driven by strong performance across all business segments, notably the Consumer Tax and Small Business groups. Diluted net income per share from continuing operations saw a significant 15% increase, reflecting improved operational efficiency and strategic acquisitions. The company's balance sheet strengthened, with total assets growing to $5.4 billion, supported by increased cash and investments. Intuit also actively managed its capital through substantial stock repurchases, demonstrating a commitment to returning value to shareholders while continuing to invest in growth initiatives, including the recent acquisition of Mint. The company exited the period with a healthy liquidity position and positive outlook for the remainder of the fiscal year.

Financial Highlights

50 data points
Beta

Revenue

$1.83B

91.1% Gross Margin

Net Income

$688.00M

37.7% Net Margin

EPS (Diluted)

$2.20

Total Assets

$5.43B

Cash & Equivalents

$430.00M

Free Cash Flow

$1.01B

Financial Statements
Beta
Revenue$1.83B
Cost of Revenue$162.00M
Gross Profit$1.67B
R&D Expenses$141.00M
Operating Expenses$598.00M
Operating Income$1.07B
Interest Expense$15.00M
Net Income$688.00M
EPS (Basic)$2.27
EPS (Diluted)$2.20
Shares Outstanding (Basic)314.00M
Shares Outstanding (Diluted)323.00M

Key Highlights

  • 1Total net revenue increased by 10% to $2.92 billion for the nine months ended April 30, 2010, compared to the same period in fiscal 2009.
  • 2Net income from continuing operations increased by 13% to $587 million for the nine months ended April 30, 2010.
  • 3Diluted net income per share from continuing operations grew by 15% to $1.80 for the nine months ended April 30, 2010.
  • 4The company repurchased $750 million of its common stock during the nine months ended April 30, 2010.
  • 5Intuit completed the acquisition of Mint Software Inc. in November 2009 for approximately $170 million.
  • 6The company sold its Intuit Real Estate Solutions (IRES) business in January 2010, recording a net gain of $35 million.
  • 7Total assets increased to $5.43 billion as of April 30, 2010, up from $4.83 billion as of July 31, 2009.

Frequently Asked Questions

Revenue growth was driven by strong performance across all business segments. Key contributors included the Consumer Tax segment, with a 13% increase due to growth in TurboTax Online units, and the Small Business Group, particularly Financial Management Solutions and Employee Management Solutions, benefiting from acquisitions like PayCycle and customer growth.

Intuit is actively managing its capital through significant stock repurchase programs. During the nine months ended April 30, 2010, the company repurchased $750 million of its common stock. Additionally, the company has $150 million remaining authorization for future stock repurchases.

Intuit made two notable strategic moves: the acquisition of Mint Software Inc. for approximately $170 million to enhance its online personal finance offerings, and the sale of its Intuit Real Estate Solutions (IRES) business for approximately $128 million to focus resources on core products and services. The company also completed the acquisition of Medfusion, Inc. for approximately $91 million after the reporting period.

The company reported strong year-to-date performance with increased revenue and net income. Intuit expects its cash and cash equivalents, investments, and cash generated from operations to be sufficient to meet its liquidity needs for at least the next 12 months. The company also anticipates continued seasonality in its business, with revenue typically highest in the second and third fiscal quarters.