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10-QPeriod: Q3 FY2017

INTUIT INC. Quarterly Report for Q3 Ended Apr 30, 2017

Filed May 23, 2017For Securities:INTU

Summary

Intuit Inc. reported solid financial results for the nine months ended April 30, 2017, with total net revenue increasing by 10% to $4.3 billion and net income from continuing operations rising by 12% to $947 million. This growth was driven by strong performance in the Small Business segment, which saw a 13% revenue increase, and the Consumer Tax segment, with a 9% revenue boost. Diluted net income per share from continuing operations also saw a healthy 15% increase, reflecting both operational efficiency and a reduced share count due to ongoing share repurchase programs. The company continues its strategic shift towards connected services, with these offerings now representing 73% of total revenue in fiscal 2016, up from 50% eight years prior, and this trend is expected to continue. Intuit ended the period with a robust cash position of $1.6 billion, underscoring its financial strength and flexibility to pursue strategic opportunities, return capital to shareholders via dividends and buybacks, and invest in future growth. The company remains committed to innovation in product development and leveraging data to enhance customer experiences across its key segments.

Financial Statements
Beta
Revenue$2.54B
Cost of Revenue$237.00M
Gross Profit$2.30B
R&D Expenses$246.00M
Operating Expenses$860.00M
Operating Income$1.44B
Interest Expense$8.00M
Net Income$964.00M
EPS (Basic)$3.76
EPS (Diluted)$3.70
Shares Outstanding (Basic)256.00M
Shares Outstanding (Diluted)260.00M

Key Highlights

  • 1Total net revenue for the nine months ended April 30, 2017, increased 10% year-over-year to $4.3 billion.
  • 2Net income from continuing operations grew 12% to $947 million for the nine-month period.
  • 3Diluted net income per share from continuing operations increased 15% to $3.63 for the nine months.
  • 4The Small Business segment revenue grew 13% year-over-year for the nine-month period, driven by online ecosystem growth.
  • 5The Consumer Tax segment revenue increased 9% for the nine-month period, benefiting from product mix shifts.
  • 6The company maintained a strong liquidity position with $1.6 billion in cash, cash equivalents, and investments as of April 30, 2017.
  • 7Intuit repurchased shares totaling $478 million during the nine months ended April 30, 2017, and has $1.9 billion remaining under its share repurchase authorization.

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