Summary
Intuit Inc. reported its financial results for the six months ended January 31, 2015, which concluded with a net loss of $150 million, an increase from the $48 million net loss in the prior year period. This widened loss was primarily driven by a significant increase in operating loss, a 72% rise year-over-year for the six-month period, largely due to changes in revenue recognition for desktop software offerings and increased operating expenses related to staffing, marketing, and share-based compensation. Despite the increased loss, total net revenue grew by 5% year-over-year to $1.5 billion, propelled by a strong 26% increase in the Consumer segment, benefiting from an earlier IRS tax filing season start. The company highlighted a strategic shift in its Small Business segment, with continued growth in QuickBooks Online services offsetting declines in QuickBooks desktop software sales, reflecting a broader move towards cloud-based solutions. The Professional Tax segment experienced a notable revenue decrease, also impacted by the desktop software revenue recognition changes. Intuit maintained a solid liquidity position with $1.4 billion in cash, cash equivalents, and investments at the end of the period and an unused $500 million revolving credit facility.
Financial Highlights
53 data points| Revenue | $749.00M |
| Cost of Revenue | $188.00M |
| Gross Profit | $561.00M |
| R&D Expenses | $188.00M |
| Operating Expenses | $650.00M |
| Operating Income | -$89.00M |
| Interest Expense | $7.00M |
| Net Income | -$66.00M |
| EPS (Basic) | $-0.23 |
| EPS (Diluted) | $-0.23 |
| Shares Outstanding (Basic) | 285.00M |
| Shares Outstanding (Diluted) | 285.00M |
Key Highlights
- 1Net loss from continuing operations widened to $150 million for the six months ended January 31, 2015, compared to $94 million in the prior year period.
- 2Total net revenue increased by 5% to $1.5 billion for the six months ended January 31, 2015, driven by a 26% growth in the Consumer segment.
- 3Operating loss from continuing operations significantly increased by 72% to $212 million for the six months ended January 31, 2015.
- 4Changes in revenue recognition for desktop software products are impacting revenue and are expected to continue to do so.
- 5The Consumer segment benefited from an earlier IRS tax filing season start, contributing to its revenue growth.
- 6Intuit continued to repurchase shares, spending $668 million in the six months ended January 31, 2015, with $1.2 billion remaining authorization.
- 7Liquidity remains strong with $1.4 billion in cash, cash equivalents, and investments as of January 31, 2015.