Summary
Intuit Inc. reported strong financial performance for the nine months ended April 30, 2013, with total net revenue increasing by 8% to $3.8 billion compared to the prior year period. This growth was primarily driven by the Small Business Group and the Consumer Tax segment. The Small Business Group saw a 17% revenue increase, bolstered by connected services and the acquisition of Demandforce. The Consumer Tax segment grew 5%, with a 4% increase in paid federal units. Operating income from continuing operations rose by 4% to $1.3 billion, despite higher operating expenses related to staffing, marketing, and a $46 million goodwill and intangible asset impairment charge in the Intuit Health business. Net income from continuing operations increased by 5% to $842 million, resulting in diluted earnings per share (EPS) from continuing operations of $2.78, a 7% increase year-over-year. The company ended the period with a robust cash position of $2.0 billion and maintained significant authorization for stock repurchases, underscoring a commitment to returning capital to shareholders.
Financial Highlights
54 data points| Revenue | $2.09B |
| Cost of Revenue | $145.00M |
| Gross Profit | $1.95B |
| R&D Expenses | $166.00M |
| Operating Expenses | $664.00M |
| Operating Income | $1.28B |
| Interest Expense | $8.00M |
| Net Income | $822.00M |
| EPS (Basic) | $2.77 |
| EPS (Diluted) | $2.71 |
| Shares Outstanding (Basic) | 297.00M |
| Shares Outstanding (Diluted) | 304.00M |
Key Highlights
- 1Total net revenue for the first nine months of fiscal 2013 increased 8% to $3.8 billion, driven by growth in the Small Business Group (17%) and Consumer Tax (5%).
- 2Operating income from continuing operations grew 4% to $1.3 billion, reflecting revenue increases partially offset by higher operating expenses, including a $46 million impairment charge for Intuit Health goodwill and intangibles.
- 3Diluted earnings per share (EPS) from continuing operations increased 7% to $2.78 for the nine-month period.
- 4The company ended the period with $2.0 billion in cash, cash equivalents, and investments, demonstrating strong liquidity.
- 5Significant stock repurchase programs were active, with $292 million spent in the first nine months of fiscal 2013, and $1.4 billion authorized for future repurchases.
- 6Connected services revenue continues to be a strategic focus, representing 64% of total revenue in fiscal 2012 and expected to grow as a percentage of total revenue.
- 7Seasonality remains a key factor, with the third quarter ending April 30 contributing significantly to annual revenue, partly due to tax season acceleration.