Summary
Intuit Inc. (INTU) reported its second-quarter fiscal year 2018 results, showcasing a 15% year-over-year increase in total net revenue to $1.165 billion for the quarter and a 14% increase to $2.051 billion year-to-date. This growth was primarily driven by a strong performance in the Small Business & Self-Employed segment, which saw revenue increase by 19% in the quarter due to robust growth in its Online Ecosystem. The Consumer segment also experienced revenue growth, albeit with a slight impact from a later tax season opening. Despite revenue growth, the company reported a net loss of $21 million for the quarter, compared to a net income of $13 million in the prior year. This was largely influenced by a significant $39 million provisional tax charge related to the recently enacted Tax Cuts and Jobs Act, which reduced the U.S. statutory federal corporate tax rate. The company also noted increased operating expenses, particularly in selling and marketing, research and development, and staffing. Year-to-date, Intuit reported a net loss of $38 million. The company remains committed to returning capital to shareholders through stock repurchases and dividends, with approximately $1.3 billion remaining authorization for stock buybacks.
Financial Highlights
54 data points| Revenue | $1.34B |
| Cost of Revenue | $246.00M |
| Gross Profit | $1.09B |
| R&D Expenses | $286.00M |
| Operating Expenses | $899.00M |
| Operating Income | $194.00M |
| Interest Expense | $6.00M |
| Net Income | $183.00M |
| EPS (Basic) | $0.72 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 256.00M |
| Shares Outstanding (Diluted) | 260.00M |
Key Highlights
- 1Total net revenue increased by 15% to $1.165 billion in Q2 FY18 compared to $1.016 billion in Q2 FY17.
- 2Small Business & Self-Employed segment revenue grew by 19% year-over-year, driven by a 39% increase in Online Ecosystem revenue and a 51% rise in QuickBooks Online subscribers.
- 3Consumer segment revenue increased by 12% driven by higher average revenue per customer, despite a delayed tax season opening.
- 4Reported a net loss of $21 million for the quarter, a decrease from a net income of $13 million in the prior year.
- 5Net loss was significantly impacted by a $39 million provisional tax charge related to the Tax Cuts and Jobs Act.
- 6Operating expenses increased by $111 million in Q2 FY18 due to higher spending on marketing, staffing, and outside services.
- 7Intuit continues to return capital to shareholders, with $1.3 billion remaining under its stock repurchase authorization.