Summary
Intuit Inc. reported solid financial performance for the nine months ended April 30, 2016, with total net revenue increasing by 13% to $3.9 billion compared to the prior year. This growth was driven by strong performance in the Consumer Tax segment, up 10% driven by TurboTax Online, and a significant 81% surge in the Professional Tax segment due to a shift in revenue recognition for desktop software offerings. The Small Business segment also saw an 8% increase. The company's strategic focus on connected services, which now represent 73% of total revenue, continues to yield positive results. Profitability also saw a substantial improvement, with operating income from continuing operations up 50% and net income from continuing operations increasing by 64%. This was supported by a lower effective tax rate and a significant reduction in operating expenses as a percentage of revenue, partly due to the absence of a goodwill impairment charge recorded in the prior year. Diluted EPS from continuing operations grew by 77%. The company also successfully completed the divestiture of its Demandforce, QuickBase, and Quicken businesses, recognizing a substantial gain.
Financial Highlights
55 data points| Revenue | $2.30B |
| Cost of Revenue | $216.00M |
| Gross Profit | $2.09B |
| R&D Expenses | $228.00M |
| Operating Expenses | $803.00M |
| Operating Income | $1.28B |
| Interest Expense | $10.00M |
| Net Income | $1.03B |
| EPS (Basic) | $4.00 |
| EPS (Diluted) | $3.94 |
| Shares Outstanding (Basic) | 257.00M |
| Shares Outstanding (Diluted) | 260.00M |
Key Highlights
- 1Total net revenue increased 13% to $3.9 billion for the first nine months of fiscal 2016 compared to the same period in fiscal 2015.
- 2Operating income from continuing operations increased 50% year-over-year, indicating strong operational leverage.
- 3Net income from continuing operations saw a significant increase of 64%, with diluted EPS from continuing operations rising 77%.
- 4The Consumer Tax segment grew 10%, with TurboTax Online federal units up 15%, demonstrating continued strength in the core tax business.
- 5The Professional Tax segment revenue surged 81%, primarily due to a change in revenue recognition for desktop software offerings.
- 6Intuit divested its Demandforce, QuickBase, and Quicken businesses, recognizing a pre-tax gain of $354 million.
- 7The company reported a strong balance sheet with $1.6 billion in cash, cash equivalents, and investments as of April 30, 2016, and generated $1.7 billion in cash from operating activities.