August 22, 2024
Intuit Reports Strong Fourth Quarter and
Full Year Results; Sets Fiscal 2025
Guidance With Double Digit Revenue and
Earnings Growth
Full year revenue grew 13 percent, Small Business and Self-Employed Group revenue
grew 19 percent
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Intuit Inc. (Nasdaq: INTU) the global financial
technology platform that makes TurboTax, Credit Karma, QuickBooks, and Mailchimp,
announced financial results for the fourth quarter and full fiscal year 2024, which ended July
31, 2024.
“We delivered very strong results for the fourth quarter and full year, and made meaningful
progress with our AI-driven expert platform strategy that positions the company for durable
growth in the future,” said Sasan Goodarzi, Intuit's chief executive officer. “Our strategy and
five Big Bets are solving our customers’ biggest problems as we deliver on our mission to
power prosperity for consumers, and small and mid-market businesses.”
Financial Highlights
For the full year, Intuit:
Grew total revenue to $16.3 billion, up 13 percent year-over-year.
Increased combined platform revenue, which includes the Small Business and Self-
Employed Group Online Ecosystem, TurboTax Online and Credit Karma, 14 percent to
$12.5 billion.
Grew Small Business and Self-Employed Group revenue 19 percent and Online
Ecosystem revenue 20 percent.
Grew Consumer Group revenue 7 percent to $4.4 billion.
Increased Credit Karma revenue 5 percent to $1.7 billion.
Grew GAAP operating income 16 percent to $3.6 billion, including a restructuring
charge of $223 million recognized in the fourth quarter related to the organizational
changes the company announced in July.
Increased non-GAAP operating income 16 percent to $6.4 billion.
Grew GAAP earnings per share 24 percent to $10.43, also including the restructuring
charge.
Increased non-GAAP earnings per share 18 percent to $16.94.
For the fourth quarter, Intuit:
Grew total revenue 17 percent to $3.2 billion.
Increased Small Business and Self-Employed Group revenue 20 percent to $2.6 billion
and Online Ecosystem revenue 18 percent.
Grew Credit Karma revenue 14 percent to $485 million.
Reported Consumer Group revenue of $113 million, down 12 percent.
Unless otherwise noted, all growth rates refer to the current period versus the comparable
prior-year period, and the business metrics and associated growth rates refer to worldwide
business metrics.
Snapshot of Fiscal Year 2024 Full-year Results
GAAP Non-GAAP
FY24 FY23 Change FY24 FY23 Change
Revenue
$16,285 $14,368 13% $16,285 $14,368 13%
Operating Income
$3,630 $3,141 16% $6,402 $5,503 16%
Earnings Per Share
$10.43 $8.42 24% $16.94 $14.40 18%
Dollars are in millions, except earnings per share. See “About Non-GAAP Financial
Measures” below for more information regarding financial measures not prepared in
accordance with Generally Accepted Accounting Principles (GAAP).
Snapshot of Fourth-quarter Fiscal Year 2024 Results
GAAP Non-GAAP
Q4
FY24
Q4
FY23 Change
Q4
FY24
Q4
FY23 Change
Revenue
$3,184 $2,712 17% $3,184 $2,712 17%
Operating Income
(Loss)
$(151) $17 NM $730 $627 16%
Earnings (Loss) Per
Share
$(0.07) $0.32 NM $1.99 $1.65 21%
NM = Not Meaningful
Dollars are in millions, except earnings per share. See “About Non-GAAP Financial
Measures” below for more information regarding financial measures not prepared in
accordance with Generally Accepted Accounting Principles (GAAP).
Business Segment Results
Small Business and Self-Employed Group
Small Business and Self-Employed Group revenue grew 20 percent for the quarter and 19
percent for the year. Online Ecosystem revenue grew 18 percent for the quarter and 20
percent for the year.
QuickBooks Online accounting revenue grew 17 percent for the quarter and 19 percent
for the year. Growth in the quarter was driven by customer growth, higher effective
prices, and mix shift.
Online services revenue grew 19 percent for the quarter and 21 percent for the year.
Growth in the quarter was driven by growth in payments, payroll, capital, and
Mailchimp.
Total international online revenue grew 11 percent for the quarter and 13 percent for
the year on a constant currency basis.
In August 2024, Intuit renamed the Small Business and Self-Employed Group to the Global
Business Solutions Group. This new name better aligns with the global reach of the
Mailchimp and QuickBooks platform, the company's focus on serving both small and mid-
market businesses, and its vision to become the end-to-end platform that customers use to
grow and run their business.
Consumer and ProTax Groups
Consumer Group revenue grew 7 percent for the year to $4.4 billion.
TurboTax Live revenue grew 17 percent for the year, representing approximately 30
percent of total Consumer Group revenue, and TurboTax Live customers grew 11
percent.
TurboTax Online units declined 2 percent and total TurboTax units declined 1 percent
for the year, due to share loss with customers who pay nothing or have a lower
average revenue per return.
TurboTax Federal Unit Data
Units in millions
Season
through
July 31, 2024
Season
through
July 31, 2023
Change
Year-Over-
Year
Desktop Units
4.6 4.5 2%
Online Units
35.4 36.0 (2)%
Total U.S. TurboTax Units
39.9 40.5 (1)%
ProTax Group revenue grew 7 percent for the year.
Credit Karma
Credit Karma revenue grew 5 percent to $1.7 billion for the year. Credit Karma revenue grew
14 percent for the quarter to $485 million, driven by strength in auto insurance, personal
loans, credit cards, and Credit Karma Money.
Capital Allocation Summary
The company:
Reported a total cash and investments balance of approximately $4.1 billion and total
debt of $6.0 billion as of July 31.
Repurchased $2.0 billion of stock during fiscal year 2024. The Board approved a new
$3.0 billion repurchase authorization, giving the company a total authorization of $4.9
billion to repurchase shares.
Received Board approval for a quarterly dividend of $1.04 per share, payable on
October 18, 2024. This represents a 16 percent increase versus last year.
Forward-looking Guidance
Intuit announced guidance for the full fiscal year 2025. The company expects:
Revenue of $18.160 billion to $18.347 billion, growth of approximately 12 to 13
percent.
GAAP operating income of $4.649 billion to $4.724 billion, growth of approximately 28
to 30 percent.
Non-GAAP operating income of $7.241 billion to $7.316 billion, growth of
approximately 13 to 14 percent.
GAAP diluted earnings per share of $12.34 to $12.54, growth of approximately 18 to
20 percent.
Non-GAAP diluted earnings per share of $19.16 to $19.36, growth of approximately 13
to 14 percent.
The company expects the following segment revenue results for fiscal year 2025:
Small Business and Self-Employed Group: growth of 16 to 17 percent. This includes
online ecosystem revenue growth of approximately 20 percent, and desktop ecosystem
revenue growth in the low single digits.
Consumer Group: growth of 7 to 8 percent.
ProTax Group: growth of 3 to 4 percent.
Credit Karma: growth of 5 to 8 percent.
GAAP guidance reflects an expected $24 million restructuring charge related to the
reorganization the company announced in July.
Intuit also announced guidance for the first quarter of fiscal year 2025, which ends Oct. 31.
The company expects:
Revenue growth of approximately 5 to 6 percent, including:
Small Business and Self-Employed Group revenue growth of 6 to 7 percent. The
company expects online ecosystem revenue growth, the company's growth
catalyst, to accelerate to approximately 19 percent in the first quarter of fiscal
2025. The company expects desktop ecosystem revenue to decline
approximately 20 percent in the first quarter of fiscal 2025, but return to growth in
the second quarter. The first quarter desktop growth outlook reflects changes the
company made to its QuickBooks desktop offerings in early fiscal 2024 to
complete the transition to a recurring subscription model, including more frequent
product updates. The company expects these changes to lower revenue in the
first quarter of fiscal 2025 by approximately $160 million. This includes
approximately $50 million that was recognized in the first three quarters of fiscal
2024, approximately $60 million recognized in the fourth quarter of fiscal 2024,
and approximately $50 million that the company expects to shift from the first
quarter of fiscal 2025 to later quarters in fiscal 2025.
Credit Karma revenue to grow in the first quarter.
Consumer Group and ProTax revenue to decline in the first quarter, as the
company laps the period a year ago that included the extended California tax
filing deadline.
GAAP earnings per share of $0.61 to $0.66.
Non-GAAP diluted earnings per share of $2.33 to $2.38.
GAAP guidance reflects an expected $19 million restructuring charge that the company
expects to incur in the first quarter related to the reorganization the company announced in
July.
Conference Call Details
Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific
time on Aug. 22. The conference call can be heard live at https://investors.intuit.com/news-
events/ir-calendar. Prepared remarks for the call will be available on Intuit’s website after the
call ends.
Replay Information
A replay of the conference call will be available for one week by calling 800-938-1595, or
402-220-1544 from international locations. There is no passcode required. The audio
webcast will remain available on Intuit’s website for one week after the conference call.
Investor Day 2024
Intuit will host its annual Investor Day on Sept. 26 at 8:00 a.m. Pacific time, at its
headquarters in Mountain View, CA and it can be viewed live at
https://investors.intuit.com/news-events/ir-calendar. The half-day event will include
presentations from Sasan Goodarzi, chief executive officer, Sandeep Aujla, chief financial
officer, and other leaders.
About Intuit
Intuit is the global financial technology platform that powers prosperity for the people and
communities we serve. With approximately 100 million customers worldwide using products
such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, we believe that everyone
should have the opportunity to prosper. We never stop working to find new, innovative ways
to make that possible. Please visit us at Intuit.com and find us on social for the latest
information about Intuit and our products and services.
About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For
a description of these non-GAAP financial measures, including the reasons management
uses each measure, and reconciliations of these non-GAAP financial measures to the most
directly comparable financial measures prepared in accordance with Generally Accepted
Accounting Principles, please see the section of the accompanying tables titled "About Non-
GAAP Financial Measures" as well as the related Table B1, Table B2, and Table E. A copy of
the press release issued by Intuit today can be found on the investor relations page of Intuit's
website.
Cautions About Forward-looking Statements
This press release contain forward-looking statements, including expectations regarding:
forecasts and timing of growth and future financial results of Intuit and its reporting
segments; the impact of macroeconomic conditions on our business, segments and
products; Intuit’s prospects for the business in fiscal 2025 and beyond; Intuit’s growth
outside the US; timing and growth of revenue from current or future products, features, and
services; innovation across our ecosystem; demand for our products; customer growth and
retention; average revenue per return and average revenue per customer; Intuit's corporate
tax rate; changes to our products, including the impact of AI; the amount and timing of any
future dividends or share repurchases; our capital structure; availability of our offerings; our
expectations regarding the timing and costs associated with our plan of reorganization
(“Plan”); and the impact of acquisitions and strategic decisions on our business; as well as
all of the statements under the heading "Forward-looking Guidance."
Because these forward-looking statements involve risks and uncertainties, there are
important factors that could cause our actual results to differ materially from the expectations
expressed in the forward-looking statements. These risks and uncertainties may be amplified
by the effects of global developments and conditions or events, including macroeconomic
uncertainty or geopolitical conditions, which have caused significant global economic
instability and uncertainty. Given these risks and uncertainties, persons receiving this
communication are cautioned not to place any undue reliance on such forward-looking
statements. These factors include, without limitation, the following: our ability to compete
successfully; potential governmental encroachment in our tax businesses; our ability to
develop, deploy and use artificial intelligence in our platform and products; our ability to
adapt to technological change and to successfully extend our platform; our ability to predict
consumer behavior; our reliance on intellectual property; our ability to protect our intellectual
property rights; any harm to our reputation; risks associated with our ESG and DEI practices;
risks associated with acquisition and divestiture activity; the issuance of equity or incurrence
of debt to fund an acquisition or for general business purposes; cybersecurity incidents
(including those affecting the third parties we rely on); customer concerns about privacy and
cybersecurity incidents; fraudulent activities by third parties using our offerings; our failure to
process transactions effectively; interruption or failure of our information technology; our
ability to maintain critical third-party business relationships; our ability to attract and retain
talent and the success of our hybrid work model; any deficiency in the quality or accuracy of
our offerings (including the advice given by experts on our platform); any delays in product
launches; difficulties in processing or filing customer tax submissions; risks associated with
international operations; risks associated with climate change; changes to public policy, laws
or regulations affecting our businesses; legal proceedings in which we are involved;
fluctuations in the results of our tax business due to seasonality and other factors beyond
our control; changes in tax rates and tax reform legislation; global economic conditions
(including, without limitation, inflation); exposure to credit, counterparty and other risks in
providing capital to businesses; amortization of acquired intangible assets and impairment
charges; our ability to repay or otherwise comply with the terms of our outstanding debt; our
ability to repurchase shares or distribute dividends; volatility of our stock price; and our ability
to successfully market our offerings; our ability to realize the anticipated benefits of the Plan;
risks related to the preliminary nature of the estimate of the charges to be incurred in
connection with Plan, which is subject to change; and risks related to any delays in the
timing for implementing the Plan or potential disruptions to our business or operations as we
execute on the Plan. More details about these and other risks that may impact our business
are included in our Form 10-K for fiscal 2023 and in our other SEC filings. You can locate
these reports through our website at http://investors.intuit.com. First quarter and full-year
fiscal 2025 guidance speaks only as of the date it was publicly issued by Intuit. Other
forward-looking statements represent the judgment of the management of Intuit as of the
date of this presentation. Except as required by law, we do not undertake any duty to update
any forward-looking statement or other information in this presentation.
TABLE A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
Twelve Months Ended
July 31,
2024
July 31,
2023
July 31,
2024
July 31,
2023
Net revenue:
Service $ 2,670 $ 2,340 $ 13,861 $ 12,317
Product and other 514
372
2,424
2,051
Total net revenue 3,184
2,712
16,285
14,368
Costs and expenses:
Cost of revenue:
Cost of service revenue 733 656 3,250 2,908
Cost of product and other revenue 14 16 69 72
Amortization of acquired
technology 36 41 146 163
Selling and marketing 1,104 840 4,312 3,762
Research and development 725 680 2,754 2,539
General and administrative 377 341 1,418 1,300
Amortization of other acquired
intangible assets 123 121 483 483
Restructuring 223
—
223
—
Total costs and expenses [A] 3,335
2,695
12,655
11,227
Operating income (loss) (151) 17 3,630 3,141
Interest expense (60) (68) (242) (248)
Interest and other income, net 71
46
162
96
Income (loss) before income taxes (140) (5) 3,550 2,989
Income tax provision (benefit) [B] (120)
(94)
587
605
Net income (loss) $ (20)
$ 89
$ 2,963
$ 2,384
Basic net income (loss) per share $ (0.07)
$ 0.32
$ 10.58
$ 8.49
Shares used in basic per share
calculations
280
280
280
281
Diluted net income (loss) per share $ (0.07)
$ 0.32
$ 10.43
$ 8.42
Shares used in diluted per share
calculations
280
283
284
283
See accompanying Notes.
INTUIT INC.
NOTES TO TABLE A
[A] The following table summarizes the total share-based compensation expense that we
recorded in operating income (loss) for the periods shown.
Three Months Ended
Twelve Months Ended
(In millions)
July 31,
2024
July 31,
2023
July 31,
2024
July 31,
2023
Cost of revenue $ 102 $ 83 $ 402 $ 374
Selling and marketing 137 119 506 429
Research and development 161 148 639 532
General and administrative 94 98 368 377
Restructuring 25
—
25
—
Total share-based compensation
expense
$ 519
$ 448
$ 1,940
$ 1,712
[B] We recognized excess tax benefits on share-based compensation of $183 million in our
provision for income taxes for the twelve months ended July 31, 2024 and $32 million for
the twelve months ended July 31, 2023.
Our effective tax rate for the twelve months ended July 31, 2024 was approximately
17%. Excluding certain tax benefits primarily related to share-based compensation, our
effective tax rate was approximately 24%. This rate differed from the federal statutory
rate of 21% primarily due to state income taxes and non-deductible share-based
compensation, which were partially offset by the benefit we received from the federal
research and experimentation credit.
Our effective tax rate for the twelve months ended July 31, 2023 was approximately
20%. Excluding tax benefits related to share-based compensation and a transfer of
certain intangible assets during the three months ended July 31, 2023 from our United
Kingdom subsidiary to the United States, our effective tax rate was approximately 24%.
This rate differed from the federal statutory rate of 21% primarily due to state income
taxes and non-deductible share-based compensation, which were partially offset by the
benefit we received from the federal research and experimentation credit.
In the current global tax policy environment, the U.S. and other domestic and foreign
governments continue to consider, and in some cases enact, changes in corporate tax
laws. As changes occur, we account for finalized legislation in the period of enactment.
TABLE B1
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)
Fiscal 2024
Q1
Q2
Q3
Q4
Full Year
GAAP operating income (loss) $ 307 $ 369 $ 3,105 $ (151) $ 3,630
Amortization of acquired technology 38 36 36 36 146
Amortization of other acquired
intangible assets 120 120 120 123 483
Restructuring [A] — — — 223 223
Professional fees for business
combinations — — — 5 5
Share-based compensation expense 495
475
451
494
1,915
Non-GAAP operating income
(loss)
$ 960
$ 1,000
$ 3,712
$ 730
$ 6,402
GAAP net income (loss) $ 241 $ 353 $ 2,389 $ (20) $ 2,963
Amortization of acquired technology 38 36 36 36 146
Amortization of other acquired
intangible assets 120 120 120 123 483
Restructuring [A] — — — 223 223
Professional fees for business
combinations — — — 5 5
Share-based compensation expense 495 475 451 494 1,915
Net (gain) loss on debt securities
and other investments 1 (3) 1 1 —
Loss on disposal of a business 1 — 9 (1) 9
Income tax effects and adjustments
[B]
(198)
(235)
(202)
(298)
(933)
Non-GAAP net income (loss) $ 698
$ 746
$ 2,804
$ 563
$ 4,811
GAAP diluted net income (loss)
per share $ 0.85 $ 1.25 $ 8.42 $ (0.07) $ 10.43
Amortization of acquired technology 0.13 0.13 0.13 0.13 0.51
Amortization of other acquired
intangible assets 0.42 0.42 0.42 0.43 1.70
Restructuring [A] — — — 0.79 0.79
Professional fees for business
combinations — — — 0.02 0.02
Share-based compensation expense 1.75 1.67 1.59 1.74 6.75
Net (gain) loss on debt securities
and other investments
0.01 (0.01) — — —
Loss on disposal of a business 0.01 — 0.03 — 0.03
Income tax effects and adjustments
[B]
(0.70)
(0.83)
(0.71)
(1.05)
(3.29)
Non-GAAP diluted net income
(loss) per share
$ 2.47
$ 2.63
$ 9.88
$ 1.99
$ 16.94
Shares used in GAAP diluted per
share calculations
283
284
284
280
284
Shares used in non-GAAP diluted
per share calculations
283
284
284
283
284
[A] Restructuring charges for the three and twelve months ended July 31, 2024 includes $25
million in share-based compensation expense. See "About Non-GAAP Financial
Measures" for further information on restructuring charges.
[B] As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and
Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects
of non-recurring and period-specific items. Income tax adjustments consist primarily of
the tax impact of the non-GAAP pre-tax adjustments and tax benefits related to share-
based compensation.
See “About Non-GAAP Financial Measures” immediately following Table E for information
on these measures, the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons management uses each
measure and excludes the specified amounts in arriving at each non-GAAP financial
measure.
TABLE B2
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)
Fiscal 2023
Q1
Q2
Q3
Q4
Full Year
GAAP operating income (loss) $ 76 $ 270 $ 2,778 $ 17 $ 3,141
Amortization of acquired technology
41 41 40 41 163
Amortization of other acquired
intangible assets 121 121 120 121 483
Professional fees for business
combinations 2 1 1 — 4
Share-based compensation expense 422
423
419
448
1,712
Non-GAAP operating income
(loss)
$ 662
$ 856
$ 3,358
$ 627
$ 5,503
GAAP net income (loss) $ 40 $ 168 $ 2,087 $ 89 $ 2,384
Amortization of acquired technology 41 41 40 41 163
Amortization of other acquired
intangible assets 121 121 120 121 483
Professional fees for business
combinations 2 1 1 — 4
Share-based compensation expense 422 423 419 448 1,712
Net (gain) loss on debt securities
and other investments — 2 6 1 9
Loss on disposal of a business — — — 8 8
Income tax effects and adjustments
[A]
(156)
(136)
(150)
(241)
(683)
Non-GAAP net income (loss) $ 470
$ 620
$ 2,523
$ 467
$ 4,080
GAAP diluted net income (loss)
per share $ 0.14 $ 0.60 $ 7.38 $ 0.32 $ 8.42
Amortization of acquired technology 0.14 0.14 0.14 0.14 0.57
Amortization of other acquired
intangible assets 0.43 0.43 0.43 0.43 1.71
Professional fees for business
combinations 0.01 — — — 0.01
Share-based compensation expense 1.49 1.50 1.48 1.58 6.05
Net (gain) loss on debt securities
and other investments — 0.01 0.02 — 0.03
Loss on disposal of a business — — — 0.03 0.03
Income tax effects and adjustments
[A]
(0.55)
(0.48)
(0.53)
(0.85)
(2.42)
Non-GAAP diluted net income
(loss) per share
$ 1.66
$ 2.20
$ 8.92
$ 1.65
$ 14.40
Shares used in GAAP diluted per
share calculations
284
282
283
283
283
Shares used in non-GAAP diluted
per share calculations
284
282
283
283
283
[A] As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and
Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects
of non-recurring and period-specific items. Income tax adjustments consist primarily of
the tax impact of the non-GAAP pre-tax adjustments and tax benefits related to share-
based compensation.
See “About Non-GAAP Financial Measures” immediately following Table E for information
on these measures, the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons management uses each
measure and excludes the specified amounts in arriving at each non-GAAP financial
measure.
TABLE C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
July 31,
2024
July 31,
2023
ASSETS
Current assets:
Cash and cash equivalents $ 3,609 $ 2,848
Investments 465 814
Accounts receivable, net 457 405
Notes receivable held for investment, net 779 687
Notes receivable held for sale 3 —
Income taxes receivable 78 29
Prepaid expenses and other current assets 366
354
Current assets before funds receivable and amounts held for
customers 5,757 5,137
Funds receivable and amounts held for customers 3,921
420
Total current assets 9,678 5,557
Long-term investments 131 105
Property and equipment, net 1,009 969
Operating lease right-of-use assets 411 469
Goodwill 13,844 13,780
Acquired intangible assets, net 5,820 6,419
Long-term deferred income tax assets 698 64
Other assets 541
417
Total assets $ 32,132
$ 27,780
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt $ 499 $ —
Accounts payable 721 638
Accrued compensation and related liabilities 921 665
Deferred revenue 872 921
Income taxes payable 8 698
Other current liabilities 549
448
Current liabilities before funds payable and amounts due to
customers 3,570 3,370
Funds payable and amounts due to customers 3,921
420
Total current liabilities 7,491 3,790
Long-term debt 5,539 6,120
Operating lease liabilities 458 480
Other long-term obligations 208
121
Total liabilities 13,696
10,511
Stockholders’ equity 18,436
17,269
Total liabilities and stockholders’ equity $ 32,132
$ 27,780
TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Twelve Months Ended
July 31,
2024
July 31,
2023
Cash flows from operating activities:
Net income $ 2,963 $ 2,384
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 159 160
Amortization of acquired intangible assets 630 646
Non-cash operating lease cost 81 90
Share-based compensation expense 1,940 1,712
Deferred income taxes (554) (628)
Other 92
81
Total adjustments 2,348
2,061
Originations and purchases of loans held for sale (96) —
Sales and principal repayments of loans held for sale 98 —
Changes in operating assets and liabilities:
Accounts receivable (52) 42
Income taxes receivable (48) 64
Prepaid expenses and other assets (30) (75)
Accounts payable 133 (97)
Accrued compensation and related liabilities 257 88
Deferred revenue (49) 111
Operating lease liabilities (71) (81)
Income taxes payable (691) 690
Other liabilities 122
(141)
Total changes in operating assets and liabilities (429)
601
Net cash provided by operating activities 4,884
5,046
Cash flows from investing activities:
Purchases of corporate and customer fund investments (780) (1,015)
Sales of corporate and customer fund investments 526 240
Maturities of corporate and customer fund investments 676 449
Purchases of property and equipment (250) (260)
Acquisitions of businesses, net of cash acquired (83) (33)
Originations and purchases of loans held for investment (2,538) (1,983)
Sales of loans originally classified as held for investment 234 —
Principal repayments of loans held for investment 2,068 1,727
Other (80)
(47)
Net cash used in investing activities (227)
(922)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of discount and
issuance costs 3,956 —
Repayments of debt (4,200) (1,009)
Proceeds from borrowings under unsecured revolving credit
facility 100 —
Repayments on borrowings under unsecured revolving credit
facility (100) —
Proceeds from borrowings under secured revolving credit
facilities 180 222
Repayments on borrowings under secured revolving credit
facilities (25) (23)
Proceeds from issuance of stock under employee stock plans 282 228
Payments for employee taxes withheld upon vesting of restricted
stock units (1,002) (633)
Cash paid for purchases of treasury stock (1,988) (1,967)
Dividends and dividend rights paid (1,034) (889)
Net change in funds receivable and funds payable and amounts
due to customers 3,436 (197)
Other (2)
(1)
Net cash used in financing activities (397)
(4,269)
Effect of exchange rates on cash, cash equivalents, restricted
cash, and restricted cash equivalents
(13)
—
Net increase (decrease) in cash, cash equivalents, restricted
cash, and restricted cash equivalents 4,247 (145)
Cash, cash equivalents, restricted cash, and restricted cash
equivalents at beginning of period
2,852
2,997
Cash, cash equivalents, restricted cash, and restricted cash
equivalents at end of period
$ 7,099
$ 2,852
Reconciliation of cash, cash equivalents, restricted cash, and
restricted cash equivalents reported within the consolidated
balance sheets to the total amounts reported on the consolidated
statements of cash flows
Cash and cash equivalents $ 3,609 $ 2,848
Restricted cash and restricted cash equivalents included in funds
receivable and amounts held for customers
3,490
4
Total cash, cash equivalents, restricted cash, and restricted
cash equivalents at end of period
$ 7,099
$ 2,852
Supplemental disclosure of cash flow information:
Interest paid $ 200
$ 272
Income taxes paid $ 1,881
$ 484
Supplemental schedule of non-cash investing activities:
Transfers of loans originated or purchased as held for investment
to held for sale
$ 231
$ —
TABLE E
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL
MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS
(In millions, except per share amounts)
(Unaudited)
Forward-Looking Guidance
GAAP
Range of Estimate
Non-GAAP
Range of Estimate
From
To
Adjmts
From
To
Three Months Ending October
31, 2024
Revenue $ 3,114 $ 3,145 $ — $ 3,114 $ 3,145
Operating income $ 231 $ 251 $ 653 [a]$ 884 $ 904
Diluted earnings per share
$ 0.61 $ 0.66 $ 1.72 [b]$ 2.33 $ 2.38
Twelve Months Ending July 31,
2025
Revenue $ 18,160 $ 18,347 $ — $ 18,160 $ 18,347
Operating income $ 4,649 $ 4,724 $ 2,592 [c]$ 7,241 $ 7,316
Diluted earnings per share $ 12.34 $ 12.54 $ 6.82 [d]$ 19.16 $ 19.36
See “About Non-GAAP Financial Measures” immediately following Table E for information
on these measures, the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons management uses each
measure and excludes the specified amounts in arriving at each non-GAAP financial
measure.
[a] Reflects estimated adjustments for share-based compensation expense of approximately
$477 million; amortization of acquired technology of approximately $37 million;
amortization of other acquired intangible assets of approximately $120 million; and
restructuring charges of approximately $19 million.
[b] Reflects estimated adjustments in item [a], income taxes related to these adjustments,
and other income tax effects related to the use of the non-GAAP tax rate.
[c] Reflects estimated adjustments for share-based compensation expense of approximately
$1.9 billion; amortization of acquired technology of approximately $148 million;
amortization of other acquired intangible assets of approximately $482 million; and
restructuring charges of approximately $24 million.
[d] Reflects estimated adjustments in item [c], income taxes related to these adjustments,
and other income tax effects related to the use of the non-GAAP tax rate.
INTUIT INC.
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated August 22, 2024 contains non-GAAP financial
measures. Table B1, Table B2, and Table E reconcile the non-GAAP financial measures in
that press release to the most directly comparable financial measures prepared in
accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP
financial measures include non-GAAP operating income (loss), non-GAAP net income (loss),
and non-GAAP net income (loss) per share.
Non-GAAP financial measures should not be considered as a substitute for, or superior to,
measures of financial performance prepared in accordance with GAAP. These non-GAAP
financial measures do not reflect a comprehensive system of accounting, differ from GAAP
measures with the same names, and may differ from non-GAAP financial measures with the
same or similar names that are used by other companies.
We compute non-GAAP financial measures using the same consistent method from quarter
to quarter and year to year. We may consider whether other significant items that arise in the
future should be excluded from our non-GAAP financial measures. Beginning with the fourth
quarter of fiscal 2024, we exclude from our non-GAAP measures restructuring charges, as
described below. There were no restructuring charges in any prior period presented.
We exclude the following items from all of our non-GAAP financial measures:
Amortization of acquired technology
Amortization of other acquired intangible assets
Restructuring charges
Share-based compensation expense
Goodwill and intangible asset impairment charges
Gains and losses on disposals of businesses and long-lived assets
Professional fees and transaction costs for business combinations
We also exclude the following items from non-GAAP net income (loss) and diluted net
income (loss) per share:
Gains and losses on debt securities and other investments
Income tax effects and adjustments
Discontinued operations
We believe these non-GAAP financial measures provide meaningful supplemental
information regarding Intuit’s operating results primarily because they exclude amounts that
we do not consider part of ongoing operating results when planning and forecasting and
when assessing the performance of the organization, our individual operating segments, or
our senior management. Segment managers are not held accountable for share-based
compensation expense, amortization, restructuring, or the other excluded items and,
accordingly, we exclude these amounts from our measures of segment performance. We
believe our non-GAAP financial measures also facilitate the comparison by management
and investors of results for current periods and guidance for future periods with results for
past periods.
The following are descriptions of the items we exclude from our non-GAAP financial
measures.
Amortization of acquired technology and amortization of other acquired intangible assets.
When we acquire a business in a business combination, we are required by GAAP to record
the fair values of the intangible assets of the business and amortize them over their useful
lives. Amortization of acquired technology in cost of revenue includes amortization of
software and other technology assets of acquired businesses. Amortization of other acquired
intangible assets in operating expenses includes amortization of assets such as customer
lists and trade names.
Restructuring charges. This consists of costs incurred as a direct result of discrete strategic
restructuring actions, including, but not limited to severance and other one-time termination
benefits, and other costs, which are different in terms of size, strategic nature, and frequency
than ongoing productivity and business improvements.
Share-based compensation expense. This consists of non-cash expenses for stock options,
restricted stock units, and our Employee Stock Purchase Plan. When considering the impact
of equity awards, we place greater emphasis on overall shareholder dilution rather than the
accounting charges associated with those awards.
Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial
measures non-cash charges to adjust the carrying values of goodwill and other acquired
intangible assets to their estimated fair values.
Gains and losses on disposals of businesses and long-lived assets. We exclude from our
non-GAAP financial measures gains and losses on disposals of businesses and long-lived
assets because they are unrelated to our ongoing business operating results.
Professional fees and transaction costs for business combinations. We exclude from our
non-GAAP financial measures the professional fees we incur to complete business
combinations. These include investment banking, legal, and accounting fees.
Gains and losses on debt securities and other investments. We exclude from our non-GAAP
financial measures credit losses on available-for-sale debt securities and gains and losses
on other investments.
Income tax effects and adjustments. We use a long-term non-GAAP tax rate for evaluating
operating results and for planning, forecasting, and analyzing future periods. This long-term
non-GAAP tax rate excludes the income tax effects of the non-GAAP pre-tax adjustments
described above, and eliminates the effects of non-recurring and period specific items which
can vary in size and frequency. Based on our long-term projections, we are using a long-
term non-GAAP tax rate of 24% for fiscal 2024 and fiscal 2025. This long-term non-GAAP
tax rate could be subject to change for various reasons including significant acquisitions,
changes in our geographic earnings mix, or fundamental tax law changes in major
jurisdictions in which we operate. We will evaluate this long-term non-GAAP tax rate on an
annual basis and whenever any significant events occur which may materially affect this
rate.
Operating results and gains and losses on the sale of discontinued operations. From time to
time, we sell or otherwise dispose of selected operations as we adjust our portfolio of
businesses to meet our strategic goals. In accordance with GAAP, we segregate the
operating results of discontinued operations as well as gains and losses on the sale of these
discontinued operations from continuing operations on our GAAP statements of operations
but continue to include them in GAAP net income or loss and net income or loss per share.
We exclude these amounts from our non-GAAP financial measures.
The reconciliations of the forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measures in Table E include all information reasonably
available to Intuit at the date of this press release. These tables include adjustments that we
can reasonably predict. Events that could cause the reconciliation to change include
acquisitions and divestitures of businesses, goodwill and other asset impairments, sales of
available-for-sale debt securities and other investments, and disposals of businesses and
long-lived assets.
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Investors
Kim Watkins
Intuit Inc.
650-944-3324
kim_watkins@intuit.com
Media
Kali Fry
