10-QPeriod: Q1 FY2024

INTUIT INC. Quarterly Report for Q1 Ended Oct 31, 2023

Filed November 28, 2023For Securities:INTU

Summary

Intuit Inc. reported strong performance for the first quarter of fiscal year 2024, with total net revenue increasing by 15% year-over-year to $2.98 billion. This growth was primarily driven by the Small Business & Self-Employed segment, which saw an 18% revenue increase, largely due to its Online Ecosystem offerings like QuickBooks Online and Mailchimp. The Consumer segment also showed a 25% revenue increase, though this is typical for the seasonally lighter first quarter and indicative of future trends as tax season approaches. Despite increased expenses, particularly in share-based compensation and staffing, operating income saw a substantial rise of 304% to $307 million, and net income surged by 503% to $241 million. This significant profitability improvement reflects strong revenue growth and improved operational leverage. The company also continued its capital allocation strategy, repurchasing $603 million in stock and maintaining its quarterly dividend, signaling confidence in its financial health and commitment to shareholder returns.

Financial Highlights

51 data points
Beta

Revenue

$2.98B

Net Income

$241.00M

8.1% Net Margin

EPS (Diluted)

$0.85

Total Assets

$28.49B

Cash & Equivalents

$1.73B

Free Cash Flow

-$181.00M

Financial Statements
Beta
Revenue$2.98B
R&D Expenses$680.00M
Operating Expenses$2.67B
Operating Income$307.00M
Interest Expense$65.00M
Net Income$241.00M
EPS (Basic)$0.86
EPS (Diluted)$0.85
Shares Outstanding (Basic)280.00M
Shares Outstanding (Diluted)283.00M

Key Highlights

  • 1Total net revenue grew 15% to $2.98 billion, exceeding the prior year period.
  • 2Small Business & Self-Employed segment revenue increased 18% year-over-year, driven by the Online Ecosystem.
  • 3Consumer segment revenue rose 25%, demonstrating early seasonal strength, although Q1 is typically light.
  • 4Operating income more than quadrupled, increasing 304% to $307 million.
  • 5Net income surged 503% to $241 million, with diluted EPS reaching $0.85.
  • 6The company repurchased $603 million of its common stock during the quarter, with $3.2 billion remaining authorization.
  • 7Interest expense increased due to higher interest rates, impacting the 'Interest expense' line item.

Frequently Asked Questions

The primary driver of Intuit's revenue growth was the Small Business & Self-Employed segment, which experienced an 18% increase in revenue. This growth was largely attributed to the strong performance of its Online Ecosystem offerings, including QuickBooks Online and Mailchimp.

Intuit's profitability saw a significant improvement. Operating income increased by 304% to $307 million, and net income surged by 503% to $241 million. This was driven by strong revenue growth and effective management of expenses, despite an increase in costs related to share-based compensation and staffing.

Intuit continued its commitment to returning capital to shareholders. During the quarter, the company repurchased $603 million of its common stock, with approximately $3.2 billion remaining under its authorized repurchase program. It also declared a quarterly cash dividend of $0.90 per share.

The first quarter (Q1 FY2024) is seasonally light for Intuit's Consumer and ProTax segments, which generate most of their revenue during tax season (typically November through April). While the Consumer segment showed a 25% revenue increase, this is primarily from prior tax year filings, and the company notes that Q1 results are not indicative of the full year trend for these segments.