Summary
Intuit Inc. reported revenue of $923 million for the three months ended January 31, 2016, a 23% increase year-over-year, driven by strong performance in its Consumer Tax and Small Business segments. For the six months ended January 31, 2016, total net revenue grew 20% to $1.6 billion. The company shifted from reporting a net loss to a net income of $24 million for the quarter, with a net loss of $7 million for the six-month period. This improvement is attributed to increased revenue and effective cost management, though higher operating expenses, particularly in selling and marketing and R&D, were noted. The company also continued its aggressive share repurchase program, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
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Financial Statements
Beta
| Revenue | $923.00M |
| Cost of Revenue | $199.00M |
| Gross Profit | $724.00M |
| R&D Expenses | $205.00M |
| Operating Expenses | $682.00M |
| Operating Income | $42.00M |
| Interest Expense | $9.00M |
| Net Income | $24.00M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 263.00M |
| Shares Outstanding (Diluted) | 266.00M |
Key Highlights
- 1Total net revenue for the second quarter of fiscal 2016 increased by 23% to $923 million compared to the prior year, signaling robust top-line growth.
- 2For the six-month period, net revenue saw a 20% increase, reaching $1.6 billion, indicating sustained business momentum.
- 3The company reported a net income of $24 million for the three months ended January 31, 2016, a significant improvement from a net loss of $66 million in the same period last year.
- 4Consumer Tax segment revenue grew 29% year-over-year in the quarter, bolstered by strong TurboTax Online performance and an earlier tax filing season start.
- 5Small Business segment revenue increased by 7% in the quarter, driven by growth in QuickBooks Online and online payroll services.
- 6Intuit repurchased approximately 4.77 million shares for $455 million during the quarter, underscoring its commitment to shareholder returns through its stock repurchase program.
- 7The company has successfully managed its operating expenses, with total operating expenses as a percentage of total net revenue decreasing to 74% in the quarter from 87% in the prior year.
Frequently Asked Questions
Intuit reported total net revenue of $923 million for the three months ended January 31, 2016, a 23% increase compared to the same period in the prior year. For the six months ended January 31, 2016, total net revenue grew by 20% to $1.6 billion.
The company shifted from a net loss in the prior year's comparable periods to a net income of $24 million for the three months ended January 31, 2016. For the six-month period, Intuit reported a net loss of $7 million, a significant improvement from a net loss of $150 million in the prior year.
Revenue growth was primarily driven by a strong Consumer Tax segment, up 29% year-over-year in the quarter due to higher TurboTax Online federal units and an earlier tax filing season start. The Small Business segment also contributed with a 7% revenue increase, driven by QuickBooks Online and online payroll services. The Professional Tax segment saw a significant revenue increase of 665% in the quarter due to changes in revenue recognition for desktop software offerings.
Intuit continued its active stock repurchase program. In the three months ended January 31, 2016, the company repurchased approximately 4.77 million shares for $455 million. At January 31, 2016, Intuit had an authorization to expend up to an additional $900 million for stock repurchases.