Summary
Intuit Inc. reported its third quarter fiscal year 2020 results, ending April 30, 2020, showing a decrease in total net revenue and net income compared to the prior year's quarter. This decline was primarily attributed to the impact of the COVID-19 pandemic, which led to an extension of the IRS tax filing deadline, shifting revenue from the third to the fourth quarter. Despite the quarterly dip, the nine-month year-to-date revenue saw a slight increase of 1%. The Small Business & Self-Employed segment demonstrated resilience with significant revenue growth, driven by its Online Ecosystem, while the Consumer and Strategic Partner segments experienced declines due to the tax deadline shift. The company also highlighted its strategic acquisition of Credit Karma for $7.1 billion, expected to close by the end of 2020, which aims to expand its consumer finance platform. Intuit's financial position remained strong, with a substantial cash balance, though it temporarily suspended share repurchases due to the acquisition and the uncertain market conditions caused by the pandemic. The company is actively managing its liquidity and operational adjustments in response to COVID-19.
Financial Highlights
54 data points| Revenue | $3.00B |
| Cost of Revenue | $426.00M |
| Gross Profit | $2.58B |
| R&D Expenses | $332.00M |
| Operating Expenses | $1.16B |
| Operating Income | $1.41B |
| Interest Expense | $2.00M |
| Net Income | $1.08B |
| EPS (Basic) | $4.15 |
| EPS (Diluted) | $4.11 |
| Shares Outstanding (Basic) | 261.00M |
| Shares Outstanding (Diluted) | 264.00M |
Key Highlights
- 1Total net revenue for Q3 FY2020 decreased by 8% to $3.002 billion, compared to $3.272 billion in Q3 FY2019.
- 2Net income for Q3 FY2020 decreased by 21% to $1.084 billion, compared to $1.378 billion in Q3 FY2019.
- 3Diluted net income per share for Q3 FY2020 was $4.11, a decrease from $5.22 in Q3 FY2019.
- 4Year-to-date net revenue increased by 1% to $5.863 billion for the nine months ended April 30, 2020, compared to $5.790 billion for the same period in fiscal 2019.
- 5The Small Business & Self-Employed segment revenue grew by 11% in Q3 FY2020 and 14% year-to-date, driven by the Online Ecosystem.
- 6Intuit announced a pending acquisition of Credit Karma for $7.1 billion, expected to close by the end of calendar year 2020.
- 7Cash, cash equivalents, and investments totaled $3.971 billion as of April 30, 2020, an increase of $1.231 billion from July 31, 2019.