Summary
For the three months ended October 31, 2014, Intuit Inc. (INTU) reported a net loss of $84 million, or $0.29 per share, compared to a net loss of $11 million, or $0.04 per share, in the prior year period. This widened loss is primarily attributed to an increase in operating expenses, including higher costs for staffing, outside services, and share-based compensation, coupled with a change in revenue recognition for certain desktop software products. Despite the net loss, total net revenue saw an 8% increase year-over-year, reaching $672 million, driven by growth in the Small Business segment, particularly its online ecosystem. Key financial highlights include an 8% increase in total net revenue to $672 million, driven by a 5% increase in the Small Business segment. However, operating loss from continuing operations widened significantly to $114 million from $77 million in the prior year. The company ended the quarter with $1.6 billion in cash, cash equivalents, and investments, and maintained a strong liquidity position with an unused $500 million revolving credit facility. Intuit continues to focus on its growth strategy of delivering innovative product experiences, building network effect platforms, and leveraging data, with a continued emphasis on cloud-based services.
Financial Highlights
53 data points| Revenue | $612.00M |
| Cost of Revenue | $159.00M |
| Gross Profit | $453.00M |
| R&D Expenses | $189.00M |
| Operating Expenses | $562.00M |
| Operating Income | -$109.00M |
| Interest Expense | $7.00M |
| Net Income | -$84.00M |
| EPS (Basic) | $-0.29 |
| EPS (Diluted) | $-0.29 |
| Shares Outstanding (Basic) | 286.00M |
| Shares Outstanding (Diluted) | 286.00M |
Key Highlights
- 1Total net revenue increased by 8% to $672 million for the three months ended October 31, 2014, compared to $622 million in the prior year period.
- 2Operating loss from continuing operations increased to $114 million from $77 million year-over-year, primarily due to increased operating expenses.
- 3Net loss from continuing operations widened to $84 million ($0.29 per share) from $57 million ($0.20 per share) in the prior year.
- 4The Small Business segment was the key driver of revenue growth, increasing 5% year-over-year, with strong customer acquisition in its online ecosystem.
- 5The company ended the quarter with $1.6 billion in cash, cash equivalents, and investments, indicating a solid liquidity position.
- 6Intuit repurchased $114 million of its common stock during the quarter and has $1.8 billion authorized for future repurchases.
- 7A change in revenue recognition for future QuickBooks and Quicken desktop products and Professional Tax solutions began in fiscal 2015, with revenue recognized over service periods, impacting short-term revenue recognition.