Summary
Intuit Inc. (INTU) reported its second quarter fiscal year 2021 financial results for the period ending January 31, 2021. The company experienced a notable year-over-year decline in net revenue for the quarter, primarily due to a later tax season start, which impacted its Consumer segment. Total net revenue decreased by 7% to $1.58 billion. The operating loss for the quarter was $25 million, a significant change from the operating income of $270 million in the prior year's quarter. This was driven by a combination of lower revenue and increased expenses, including those related to the recent acquisition of Credit Karma, higher staffing costs, and increased amortization of acquired intangible assets. Despite the quarterly dip, year-to-date revenue showed a slight increase of 1% to $2.9 billion. The Small Business & Self-Employed segment continued to show strength, with revenue growth of 12% year-to-date, largely driven by its Online Ecosystem. The acquisition of Credit Karma, completed in December 2020, contributed $144 million in revenue in the current quarter and is expected to be a key driver for future growth, particularly in unlocking smart money decisions for consumers. The company's strategic focus on becoming an AI-driven expert platform and its five strategic priorities remain central to its long-term outlook.
Financial Highlights
52 data points| Revenue | $1.58B |
| R&D Expenses | $368.00M |
| Operating Expenses | $1.60B |
| Operating Income | -$25.00M |
| Interest Expense | $7.00M |
| Net Income | $20.00M |
| EPS (Basic) | $0.07 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 270.00M |
| Shares Outstanding (Diluted) | 273.00M |
Key Highlights
- 1Total net revenue for Q2 FY2021 decreased 7% year-over-year to $1.58 billion, impacted by a later tax season start.
- 2Operating loss of $25 million for Q2 FY2021, compared to an operating income of $270 million in Q2 FY2020, largely due to increased expenses.
- 3Year-to-date net revenue increased 1% to $2.9 billion.
- 4The Small Business & Self-Employed segment revenue grew 11% in Q2 FY2021 and 12% year-to-date, driven by the Online Ecosystem.
- 5The acquisition of Credit Karma, completed in December 2020, contributed $144 million in revenue in Q2 FY2021 and is integrated as a new reportable segment.
- 6Diluted net income per share decreased to $0.07 in Q2 FY2021 from $0.91 in the prior year's quarter, partly due to increased shares outstanding from the Credit Karma acquisition.
- 7The company continues to prioritize AI development and strategic growth initiatives, including revolutionizing speed to benefit and unlocking smart money decisions.