10-QPeriod: Q3 FY2014

INTUIT INC. Quarterly Report for Q3 Ended Apr 30, 2014

Filed May 21, 2014For Securities:INTU

Summary

Intuit Inc. reported strong financial results for the nine months ended April 30, 2014, with total net revenue increasing by 7% to $3.8 billion. This growth was primarily driven by the Small Business and Consumer segments. The company demonstrated robust operational efficiency, with operating income from continuing operations up 6% year-over-year, and a 7% increase in diluted net income per share to $3.06. This performance was supported by strategic initiatives focused on mobile-first experiences, cloud-based platforms, and leveraging data for customer benefit. The company also continued its commitment to returning capital to shareholders, repurchasing $1.4 billion in stock during the nine-month period and declaring $0.57 per share in dividends. Intuit maintains a strong liquidity position with $2.6 billion in cash, cash equivalents, and investments at the end of the period, positioning it well for continued investment in growth and strategic opportunities.

Financial Highlights

53 data points
Beta

Revenue

$2.32B

93.2% Gross Margin

Net Income

$984.00M

42.5% Net Margin

EPS (Diluted)

$3.39

Total Assets

$5.61B

Cash & Equivalents

$1.57B

Free Cash Flow

$1.36B

Financial Statements
Beta
Revenue$2.32B
Cost of Revenue$158.00M
Gross Profit$2.16B
R&D Expenses$186.00M
Operating Expenses$673.00M
Operating Income$1.49B
Interest Expense$8.00M
Net Income$984.00M
EPS (Basic)$3.47
EPS (Diluted)$3.39
Shares Outstanding (Basic)284.00M
Shares Outstanding (Diluted)290.00M

Key Highlights

  • 1Total net revenue increased 7% to $3.8 billion for the nine months ended April 30, 2014, driven by growth in the Small Business and Consumer segments.
  • 2Operating income from continuing operations rose 6% year-over-year, reflecting strong operational performance.
  • 3Diluted net income per share from continuing operations increased 7% to $3.06 for the nine months ended April 30, 2014.
  • 4The company repurchased $1.4 billion of its common stock during the nine-month period, demonstrating a commitment to shareholder returns.
  • 5Intuit declared a total of $0.57 per share in dividends for the nine-month period.
  • 6Cash, cash equivalents, and investments totaled $2.6 billion as of April 30, 2014, indicating a healthy liquidity position.
  • 7Discontinued operations, primarily the sale of Intuit Financial Services, contributed positively to the overall financial picture.

Frequently Asked Questions

Revenue growth was primarily driven by the Small Business and Consumer segments. Specifically, the Small Business segment saw growth from connected services like QuickBooks Online and payment processing, while the Consumer segment benefited from increased paid federal TurboTax units.

Intuit is actively returning capital to shareholders through significant stock repurchase programs, with $1.4 billion spent in the nine months ended April 30, 2014, and through cash dividends, totaling $0.57 per share for the same period. The company also maintains a strong liquidity position with $2.6 billion in cash, cash equivalents, and investments.

Intuit has reclassified its Intuit Websites, Intuit Financial Services (IFS), and Intuit Health businesses as discontinued operations. The sale of IFS in August 2013, for example, contributed positively with a gain on disposal, allowing the company to focus resources on its core offerings for small businesses, consumers, and accounting professionals.

Intuit's QuickBooks, Consumer Tax, and Professional Tax offerings are highly seasonal. Revenue is typically highest in the second and third fiscal quarters (ending January 31 and April 30, respectively), while the first and fourth quarters often show lower revenue and potential losses. The company often focuses on year-to-date results for its seasonal businesses as they can be more meaningful than quarterly figures alone.