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10-QPeriod: Q2 FY2019

INTUIT INC. Quarterly Report for Q2 Ended Jan 31, 2019

Filed February 22, 2019For Securities:INTU

Summary

Intuit Inc. reported solid financial performance for the second quarter and first half of fiscal year 2019, demonstrating robust top-line growth driven by its Small Business & Self-Employed segment, particularly its Online Ecosystem offerings. Total net revenue increased by 12% year-over-year for both the quarter and the year-to-date period, reaching $1.5 billion and $2.5 billion, respectively. This growth was complemented by a notable increase in operating income, up 20% for the quarter and 40% year-to-date, reflecting effective cost management and operational efficiencies. Net income also saw positive movement, growing 3% for the quarter and 23% year-to-date, resulting in diluted earnings per share of $0.72 and $0.84 for the respective periods. The company's strategic focus on its One Intuit Ecosystem, emphasizing personalized experiences, a trusted open platform, and indispensable connections, appears to be resonating with customers and driving sustained growth across its key segments.

Financial Statements
Beta
Revenue$1.50B
Cost of Revenue$285.00M
Gross Profit$1.22B
R&D Expenses$295.00M
Operating Expenses$984.00M
Operating Income$233.00M
Interest Expense$4.00M
Net Income$189.00M
EPS (Basic)$0.73
EPS (Diluted)$0.72
Shares Outstanding (Basic)260.00M
Shares Outstanding (Diluted)264.00M

Key Highlights

  • 1Total net revenue increased by 12% to $1.5 billion for the second quarter of fiscal 2019 and by 12% to $2.5 billion for the first six months, compared to the prior year periods.
  • 2Operating income grew significantly, up 20% year-over-year for the quarter to $233 million and 40% year-over-year for the six months to $223 million.
  • 3Net income rose by 3% to $189 million for the quarter and 23% to $223 million for the six months, demonstrating improved profitability.
  • 4Diluted earnings per share (EPS) improved to $0.72 for the quarter and $0.84 for the six months, up from $0.70 and $0.70 respectively in the prior year.
  • 5The Small Business & Self-Employed segment was a key growth driver, with total segment revenue increasing 17% for the quarter and 14% year-to-date, largely fueled by a 38% surge in Online Ecosystem revenue.
  • 6The company repurchased approximately 1.3 million shares for $278 million during the first six months of fiscal 2019, indicating a commitment to returning capital to shareholders.
  • 7Intuit's cash position remains strong, with cash, cash equivalents, and investments totaling $1.3 billion at the end of the period, supporting ongoing operations and strategic initiatives.

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