Summary
Intuit Inc. reported a net loss of $31 million for the three months ended October 31, 2015, which represents an improvement from a net loss of $84 million in the same period of the prior year. Total net revenue increased by 17% to $713 million, driven by growth in the Small Business and Professional Tax segments. The company is strategically shifting towards connected services, with this revenue stream comprising 73% of total revenue in fiscal 2015. Significant strategic initiatives include focusing on product development, creating network effect platforms, and leveraging data for customer benefit. The company continues its aggressive stock repurchase program, authorizing an additional $1.4 billion in repurchases. Despite the revenue growth and narrowing net loss, the company faces ongoing challenges including intense competition, rapid technological change, and cybersecurity risks. The classification of Demandforce, QuickBase, and Quicken businesses as discontinued operations reflects a strategic focus on core small business and tax offerings. The balance sheet shows a decrease in cash and cash equivalents due to operational uses and stock repurchases, offset by borrowings on a credit facility.
Financial Highlights
53 data points| Revenue | $713.00M |
| Cost of Revenue | $166.00M |
| Gross Profit | $547.00M |
| R&D Expenses | $213.00M |
| Operating Expenses | $576.00M |
| Operating Income | -$29.00M |
| Interest Expense | $7.00M |
| Net Income | -$31.00M |
| EPS (Basic) | $-0.11 |
| EPS (Diluted) | $-0.11 |
| Shares Outstanding (Basic) | 272.00M |
| Shares Outstanding (Diluted) | 272.00M |
Key Highlights
- 1Total net revenue increased by 17% year-over-year to $713 million for the quarter ending October 31, 2015.
- 2Net loss narrowed to $31 million, an improvement from $84 million in the prior year's comparable quarter.
- 3The Small Business segment revenue grew 5%, driven by connected services like QuickBooks Online and online payroll.
- 4The Professional Tax segment saw a significant 203% revenue increase, attributed to changes in revenue recognition for desktop software products.
- 5The company continues to execute a substantial stock repurchase program, with $1.4 billion remaining authorization.
- 6Demandforce, QuickBase, and Quicken businesses have been classified as discontinued operations to focus on core offerings.
- 7Cash and cash equivalents decreased significantly to $474 million from $808 million due to operational uses and stock repurchases.