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10-QPeriod: Q2 FY2022

INTUIT INC. Quarterly Report for Q2 Ended Jan 31, 2022

Filed March 2, 2022For Securities:INTU

Summary

Intuit Inc. reported strong revenue growth for the second quarter and first six months of fiscal year 2022, driven by significant increases across its Small Business & Self-Employed, Consumer, and Credit Karma segments. The acquisition of Mailchimp in November 2021 significantly contributed to the revenue growth in the Small Business & Self-Employed segment, adding $240 million in revenue during the reported periods. Despite substantial revenue increases, operating income saw a modest rise in the quarter and a more significant increase year-to-date, reflecting higher operating expenses including staffing, marketing, share-based compensation, and amortization related to acquisitions. Net income and diluted EPS showed substantial year-over-year growth, aided by a tax benefit from share-based compensation. The company also highlighted its strategic focus on becoming an AI-driven expert platform, emphasizing partnerships, AI application, and the integration of human experts to solve customer problems.

Financial Statements
Beta
Revenue$2.67B
R&D Expenses$590.00M
Operating Expenses$2.62B
Operating Income$56.00M
Interest Expense$21.00M
Net Income$100.00M
EPS (Basic)$0.35
EPS (Diluted)$0.35
Shares Outstanding (Basic)283.00M
Shares Outstanding (Diluted)287.00M

Key Highlights

  • 1Total net revenue increased by 70% to $2.7 billion for the second quarter of fiscal 2022 and by 61% to $4.7 billion for the first six months, compared to the prior year periods.
  • 2The Small Business & Self-Employed segment revenue grew 47% in Q2 and 34% year-to-date, with the Online Ecosystem revenue up significantly due to the Mailchimp acquisition.
  • 3Consumer segment revenue more than doubled year-over-year for both the quarter and year-to-date, driven by an earlier tax season opening.
  • 4Credit Karma segment revenue increased by 208% in Q2 and 499% year-to-date, benefiting from growth in credit card and personal loan verticals and a full period of inclusion in fiscal 2022 results.
  • 5Net income for the quarter rose to $100 million from $20 million in the prior year, with diluted EPS increasing to $0.35 from $0.07.
  • 6The company reported $13.7 billion in Goodwill and $7.4 billion in net acquired intangible assets as of January 31, 2022, primarily resulting from recent acquisitions.
  • 7Intuit continues to return capital to shareholders through dividends and a significant stock repurchase program, with approximately $2.5 billion authorized for future repurchases.

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