Summary
Intuit Inc. reported its financial results for the second quarter and first half of fiscal year 2011, ending January 31, 2011. Total net revenue for the quarter increased by 5% year-over-year to $878 million, and for the first half, it grew by 8% to $1.41 billion. The Small Business Group was a primary driver of this growth, particularly the Financial Management Solutions segment. However, operating income and net income from continuing operations saw significant declines, primarily due to a shift in tax-related revenue to the third quarter caused by IRS processing delays, alongside increased operating expenses related to acquisitions, staffing, and marketing. The company's balance sheet shows a decrease in cash and cash equivalents and investments compared to the prior fiscal year-end, largely due to significant share repurchases. Intuit continues to actively return capital to shareholders, with a substantial authorization remaining for future stock buybacks. The company also noted ongoing investments in its core businesses and a strategic focus on its key segments, while managing potential risks associated with competition, technological changes, and economic conditions.
Financial Highlights
51 data points| Revenue | $911.00M |
| Cost of Revenue | $162.00M |
| Gross Profit | $749.00M |
| R&D Expenses | $158.00M |
| Operating Expenses | $556.00M |
| Operating Income | $193.00M |
| Interest Expense | $15.00M |
| Net Income | $118.00M |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 308.00M |
| Shares Outstanding (Diluted) | 318.00M |
Key Highlights
- 1Total net revenue for Q2 FY2011 increased 5% to $878 million, and for the first half, it increased 8% to $1.41 billion.
- 2Small Business Group revenue grew 15% in Q2 and 18% year-to-date, driven by strong performance in Financial Management Solutions.
- 3Operating income from continuing operations decreased significantly by 20% in Q2 and 82% year-to-date, primarily due to revenue shifts and increased operating expenses.
- 4Net income from continuing operations declined 9% in Q2 and 73% year-to-date.
- 5The company repurchased $860 million of common stock in the first half of fiscal 2011, with an additional $1.14 billion authorized for future repurchases.
- 6Investments in municipal auction rate securities held as long-term investments totaled $85 million.
- 7Intuit continues to manage its liquidity effectively, with cash, cash equivalents, and investments totaling $892 million at the end of the period.