Intuit Reports Strong Second Quarter Results and Reiterates Full Year Guidance
Small Business and Self-Employed Group Revenue Grew 18 Percent
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--February 22, 2024--
Intuit Inc. (Nasdaq: INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced financial results for the second quarter of fiscal 2024, which ended January 31.
“We had another strong quarter as consumers and small businesses continue to rely on Intuit’s platform to power their prosperity,” said Sasan Goodarzi, Intuit’s chief executive officer. “We have great momentum innovating across our products, and we’re well on our way to becoming the trusted assistant that our customers use to fuel their financial success.”
Financial Highlights
For the second quarter, Intuit:
-- Grew total revenue to $3.4 billion, up 11 percent.
-- Increased Small Business and Self-Employed Group revenue to $2.2
billion, up 18 percent; grew Online Ecosystem revenue to $1.7 billion, up
21 percent.
-- Reported Consumer Group revenue of $492 million, down 5 percent, driven
by the later IRS opening this year. The IRS began accepting and
processing returns starting January 29, compared to January 23 last
year.
-- Reported Credit Karma revenue of $375 million, flat to a year ago.
-- Grew ProTax Group revenue to $274 million, up 8 percent, reflecting the
timing of when tax forms were delivered.
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 Second-quarter Results
GAAP Non-GAAP
----------- -------------------------------- -------------------------------
Q2 Q2 Q2 Q2
FY24 FY23 Change FY24 FY23 Change
----------- ---------- --------- --------- --------- --------- ---------
Revenue $3,386 $3,041 11% $3,386 $3,041 11%
----------- ---------- --------- --------- --------- --------- ---------
Operating
Income $369 $270 37% $1,000 $856 17%
----------- ---------- --------- --------- --------- --------- ---------
Earnings
Per
Share $1.25 $0.60 108% $2.63 $2.20 20%
----------- ---------- --------- --------- --------- --------- ---------
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
-- QuickBooks Online Accounting revenue grew 19 percent in the quarter,
driven primarily by customer growth, higher effective prices, and
mix-shift.
-- Online Services revenue grew 24 percent, driven primarily by growth in
payroll, payments, and Mailchimp.
-- Total international online ecosystem revenue grew 16 percent on a
constant currency basis.
Credit Karma
-- Revenue was flat versus a year ago, primarily reflecting growth in
Credit Karma Money, credit cards, and auto loans, offset by a decline in
home loans, personal loans, and auto insurance.
Capital Allocation Summary
In the second quarter the company:
-- Reported a total cash and investments balance of approximately $1.5
billion and $6.0 billion in debt as of January 31, 2024.
-- Repurchased $536 million of shares, with $2.7 billion remaining on the
company's share repurchase authorization.
-- Received Board approval for a quarterly dividend of $0.90 per share,
payable April 18, 2024. This represents a 15 percent increase compared to
the same period last year.
Forward-looking Guidance
Intuit reiterated guidance for the full fiscal year 2024. The company expects:
-- Revenue of $15.890 billion to $16.105 billion, growth of approximately
11 to 12 percent.
-- GAAP operating income of $3.615 billion to $3.720 billion, growth of
approximately 15 to 18 percent.
-- Non-GAAP operating income of $6.155 billion to $6.260 billion, growth
of approximately 12 to 14 percent.
-- GAAP diluted earnings per share of $9.37 to $9.67, growth of
approximately 11 to 15 percent.
-- Non-GAAP diluted earnings per share of $16.17 to $16.47, growth of
approximately 12 to 14 percent.
The company also reiterated full fiscal year 2024 segment revenue guidance:
-- Small Business and Self-Employed Group: growth of 16 to 17 percent. -- Consumer Group: growth of 7 to 8 percent. -- ProTax Group: growth of 3 to 4 percent. -- Credit Karma: decline of 3 percent to growth of 3 percent.
Intuit announced guidance for the third quarter of fiscal year 2024, which ends April 30. The company expects:
-- Revenue to grow approximately 10 to 11 percent. -- GAAP diluted earnings per share of $7.77 to $7.84. -- Non-GAAP diluted earnings per share of $9.31 to $9.38.
Conference Call Details
Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on February 22. The conference call can be heard live at 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 800-374-1216, or 402-220-0681 from international locations. There is no passcode required. The audio call will remain available on Intuit’s website for one week after the conference call.
About Intuit
Intuit is the global financial technology platform that powers prosperity for the people and communities we serve. With 100 million customers worldwide using 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 contains 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 2024; timing and growth of revenue from current or future products and services; Intuit’s corporate tax rate; the amount and timing of any future dividends or share repurchases; and the impact of acquisitions and other strategic decisions on our business; as well as all of the statements under the heading “Forward-looking Guidance.”