Summary
Intuit Inc. reported its financial results for the second quarter and first six months of fiscal year 2017, ending January 31, 2017. Total net revenue for the quarter increased by 10% year-over-year to $1.016 billion, and for the six-month period, it grew by 10% to $1.794 billion, driven primarily by strong performance in the Small Business segment. However, operating income from continuing operations saw a significant decline of 48% for the quarter and a shift to a loss of $39 million for the six-month period compared to income in the prior year. This was largely attributed to increased operating expenses, including higher spending on staffing, marketing, and share-based compensation, as well as a slower start to the tax season impacting the Consumer Tax segment.
Financial Highlights
54 data points| Revenue | $1.02B |
| Cost of Revenue | $206.00M |
| Gross Profit | $810.00M |
| R&D Expenses | $243.00M |
| Operating Expenses | $788.00M |
| Operating Income | $22.00M |
| Interest Expense | $11.00M |
| Net Income | $13.00M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 257.00M |
| Shares Outstanding (Diluted) | 260.00M |
Key Highlights
- 1Total net revenue for the second quarter increased 10% to $1.016 billion, driven by a 12% increase in the Small Business segment.
- 2The Small Business segment showed robust growth with QuickBooks Online subscribers up 49% and online payroll customers up 19%.
- 3Operating income from continuing operations declined significantly by 48% to $22 million in the second quarter, and the company reported an operating loss of $39 million for the six-month period, compared to income in the prior year.
- 4This decrease in operating income was primarily due to a 78% increase in operating expenses as a percentage of revenue in the quarter, driven by higher spending on staffing, marketing, and share-based compensation.
- 5The Consumer Tax segment experienced a slower start to the tax season, impacting revenue growth and segment operating income.
- 6The company repurchased $390 million of its common stock during the six months ended January 31, 2017, and had $2 billion authorized for future repurchases.
- 7Cash and cash equivalents and investments decreased by $443 million to $637 million at the end of the period, primarily due to stock repurchases and dividends.