Summary
For the first quarter of fiscal year 2017, ending October 31, 2016, Intuit Inc. reported a net loss of $30 million, or a basic net loss per share of $0.12. This represents a slight improvement from the prior year's net loss of $31 million, though the loss per share widened due to a decrease in outstanding shares. Total net revenue increased by 9% year-over-year to $778 million, driven primarily by growth in the Small Business segment, particularly its Online Ecosystem revenue, and the strategic shift in QuickBooks Desktop revenue recognition. The company experienced a significant increase in operating expenses, leading to a wider operating loss from continuing operations of $61 million compared to $29 million in the prior year. This increase was attributed to higher spending on staffing, marketing, and share-based compensation. Despite the increased operating loss, the net loss improved due to a higher effective tax rate in the current period, largely influenced by the early adoption of accounting standard ASU 2016-09 related to stock-based compensation. Intuit continued its robust share repurchase program, repurchasing $192 million of its common stock during the quarter.
Financial Highlights
53 data points| Revenue | $778.00M |
| Cost of Revenue | $183.00M |
| Gross Profit | $595.00M |
| R&D Expenses | $246.00M |
| Operating Expenses | $656.00M |
| Operating Income | -$61.00M |
| Interest Expense | $9.00M |
| Net Income | -$30.00M |
| EPS (Basic) | $-0.12 |
| EPS (Diluted) | $-0.12 |
| Shares Outstanding (Basic) | 258.00M |
| Shares Outstanding (Diluted) | 258.00M |
Key Highlights
- 1Total net revenue increased 9% to $778 million, driven by a 11% increase in the Small Business segment.
- 2Small Business Online Ecosystem revenue grew 26%, with QuickBooks Online subscribers up 41%.
- 3Operating loss from continuing operations widened to $61 million from $29 million due to increased expenses, particularly in marketing and staffing.
- 4Net loss decreased slightly to $30 million from $31 million, aided by a higher effective tax rate resulting from early adoption of ASU 2016-09.
- 5The company repurchased $192 million of its common stock, with $2.2 billion remaining authorization for future repurchases.
- 6Basic net loss per share was $0.12, compared to $0.11 in the prior year, impacted by fewer outstanding shares.
- 7The Consumer Tax segment revenue saw a modest 6% increase, but results are typically nominal in the first quarter due to seasonality.