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10-QPeriod: Q2 FY2014

INTUIT INC. Quarterly Report for Q2 Ended Jan 31, 2014

Filed February 21, 2014For Securities:INTU

Summary

Intuit Inc. reported a net loss of $37 million for the third quarter of fiscal year 2014, a significant decline from a net income of $71 million in the same period last year. This was driven by a 12% year-over-year decrease in total net revenue, totaling $782 million. The company experienced revenue deferrals in its Consumer Tax and Professional Tax segments due to processing delays and product offering changes, impacting short-term financial performance. Despite the quarterly loss, the Small Business segment demonstrated resilience with an 8% increase in revenue, reflecting growth in its connected services like QuickBooks Online and payroll offerings. The company's long-term strategy remains focused on cloud-based solutions and mobile-first experiences. Intuit also continued its significant share repurchase program, spending $1.4 billion on buybacks in the first six months of fiscal year 2014, while maintaining a substantial cash and investment balance of $1.3 billion.

Financial Statements
Beta
Revenue$711.00M
Cost of Revenue$164.00M
Gross Profit$547.00M
R&D Expenses$186.00M
Operating Expenses$602.00M
Operating Income-$55.00M
Interest Expense$8.00M
Net Income-$37.00M
EPS (Basic)$-0.13
EPS (Diluted)$-0.13
Shares Outstanding (Basic)284.00M
Shares Outstanding (Diluted)284.00M

Key Highlights

  • 1Reported a net loss of $37 million for the quarter, compared to net income of $71 million in the prior year's comparable quarter.
  • 2Total net revenue decreased by 12% to $782 million year-over-year.
  • 3The Small Business segment showed strength with an 8% revenue increase, driven by QuickBooks Online and payroll services.
  • 4Significant revenue deferrals in Consumer Tax and Professional Tax segments impacted quarterly results.
  • 5The company repurchased $1.4 billion of its common stock in the first six months of the fiscal year.
  • 6Cash, cash equivalents, and investments totaled $1.3 billion as of January 31, 2014.

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