Intuit First-quarter Revenue Increased 14 Percent

Intuit Inc. (Nasdaq: INTU) announced financial results for the first quarter of fiscal 2018, which ended Oct. 31. “We are off to a strong start growing first-quarter revenue 14 percent and exceeding our overall financial targets,” said Brad Smith, Intuit’s chairman and chief executive officer. “QuickBooks Online subscriber growth continues at a rapid pace and

Intuit Inc. (Nasdaq: INTU) announced financial results for the first quarter of fiscal 2018, which ended Oct. 31.

“We are off to a strong start growing first-quarter revenue 14 percent and exceeding our overall financial targets,” said Brad Smith, Intuit’s chairman and chief executive officer.

“QuickBooks Online subscriber growth continues at a rapid pace and online ecosystem revenue is accelerating for small business and self-employed. Gearing up for the tax season, we are focusing on delivering an outstanding end-to-end customer experience for the do-it-yourself taxpayers while rolling out new solutions to our customers,” said Smith

Financial Highlights

For the first quarter, Intuit:

  • Grew revenue to $886 million, up 14 percent.
  • Increased total QuickBooks Online subscribers 56 percent to 2.55 million subscribers.
  • Grew the base of QuickBooks Online Self-Employed users to approximately 425,000 of total QuickBooks Online subscribers, up from 390,000 last quarter.

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 First-quarter Results

Change Q1
Revenue $886 $778 14% $886 $778 14%
Operating Income (Loss) $(57) $(61) NM $43 $32 34%
Earnings (Loss) Per Share $(0.07) $(0.12) NM $0.11 $0.06 83%

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 & Self-Employed Group

  • Grew total segment revenue by 17 percent.
  • Increased online ecosystem revenue by 35 percent.
  • Added approximately 170,000 QuickBooks Online subscribers in the quarter, reaching 2.55 million worldwide.
  • Grew QuickBooks Online subscribers outside the U.S. by 70 percent, to approximately 550,000.

Consumer and Strategic Partner Groups

  • Grew Consumer segment revenue by 7 percent.
  • Launched TurboTax Live, a compelling solution for those seeking access to a tax expert, that leverages technology to transform the assisted tax prep experience.
  • Unveiled Turbo, the first step towards expanding beyond a tax offering to a consumer platform that is designed to improve the overall financial health of the end user. Turbo goes beyond a credit score, and unleashes the power of verified IRS-filed income, the credit score and the debt-to-income ratio to show customers who give consent where they truly stand.
  • Announced the first six strategic providers on the new Turbo platform joining the more than 40 trusted partners Intuit has today with Mint.
  • Grew Strategic Partner segment revenue by 2 percent.

“Our results and progress in the first quarter set a nice cadence for the year to come, as we continue to develop innovative ways to deliver on our customer benefits of no work, more money and complete confidence.” Smith said. “With ongoing momentum across small business, I can’t wait for the tax season to begin.”

Capital Allocation Summary

In the first quarter the company:

  • Repurchased $170 million of shares, with $1.4 billion remaining on the authorization.
  • Received board approval for a $0.39 per share dividend for the second quarter of fiscal 2018, payable on January 18, 2018, an increase of 15 percent over last year.

Forward-looking Guidance

Intuit announced guidance for the second quarter of fiscal year 2018, which ends Jan. 31. The company expects:

  • Revenue of $1.160 billion to $1.180 billion, growth of 14 to 16 percent.
  • GAAP operating income of $35 million to $45 million.
  • Non-GAAP operating income of $130 million to $140 million.
  • GAAP diluted earnings per share of $0.08 to $0.11.
  • Non-GAAP diluted earnings per share of $0.31 to $0.34.

Intuit confirmed guidance for full fiscal-year 2018. The company expects:

  • Revenue of $5.640 billion to $5.740 billion, growth of 9 to 11 percent.
  • GAAP operating income of $1.485 billion to $1.535 billion, growth of 6 to 10 percent.
  • Non-GAAP operating income of $1.885 billion to $1.935 billion, growth of 9 to 12 percent.
  • GAAP diluted earnings per share of $4.00 to $4.10, growth of 8 to 10 percent.
  • Non-GAAP diluted earnings per share of $4.90 to $5.00, growth of 11 to 13 percent.
  • QuickBooks Online subscribers of 3.275 million to 3.375 million.

Conference Call Details

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on Nov. 20. To hear the call, dial 844-246-4601 in the United States or 703-639-1172 from international locations. No reservation or access code is needed. The conference call can also 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 855-859-2056, or 404-537-3406 from international locations. The access code for this call is 8768479.

The audio webcast will remain available on Intuit’s website for one week after the conference call.

About Intuit

Intuit Inc. is committed to powering prosperity around the world for consumers, small businesses and the self-employed through its ecosystem of innovative financial management solutions.

Its flagship products and services include QuickBooks® and TurboTax®, which make it easier to manage small businesses and tax preparation and filing. QuickBooks Self-Employed provides freelancers and independent contractors with an easy and affordable way to manage their finances and save money at tax time, while Mint delivers financial tools and insights to help people make smart choices about their money.

Intuit’s ProConnect brand portfolio includes ProConnect Tax OnlineProSeries® and Lacerte®, the company’s leading tax preparation offerings for professional accountants.

Founded in 1983, Intuit serves 46 million customers in North America, Europe, Australia, Brazil and India, with revenue of $5.2 billion in its fiscal year 2017. The company has approximately 8,200 employees with major offices in the United StatesCanada, the United KingdomIndia, Israel, Australia and other locations. More information can be found at

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 forecasts of expected growth and future financial results of Intuit and its reporting segments; Intuit’s prospects for the business in fiscal 2018 and beyond; expectations regarding timing and growth of revenue for each of Intuit’s reportable segments and from current or future products and services; expectations regarding customer growth; expectations regarding changes to our products and their impact on Intuit’s business; expectations regarding the amount and timing of any future dividends or share repurchases; expectations regarding availability of our offerings; expectations regarding the impact of our strategic decisions on Intuit’s business; and 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 factors include, without limitation, the following: inherent difficulty in predicting consumer behavior; difficulties in receiving, processing, or filing customer tax submissions; consumers may not respond as we expected to our advertising and promotional activities; changes in the total number of tax filings that are submitted to government agencies due to economic conditions or otherwise; the competitive environment; governmental encroachment in our tax businesses or other governmental activities or public policy affecting the preparation and filing of tax returns; our ability to innovate and adapt to technological change and global trends; our ability to adequately protect our intellectual property rights; our ability to develop and maintain brand awareness and our reputation; disruptions, expenses and risks associated with our acquisitions and divestitures; we may issue additional shares in an acquisition causing our number of outstanding shares to grow; any failure to properly use and protect personal customer or employee information and data; a security breach could result in third-party access to confidential customer, employee and business information; privacy and cybersecurity concerns relating to our offerings, or online offerings in general;  any failure to process transactions effectively or to adequately protect against potential fraudulent activities; any loss of confidence in using our software as a result of publicity regarding such fraudulent activity; availability of our products and services could be impacted by business interruption or failure of our information technology and communication systems; our ability to develop, manage and maintain critical third-party business relationships; our ability to attract, retain and develop highly skilled employees; any significant product accuracy or quality problems or delays; any problems with implementing upgrades to our customer facing applications and supporting information technology infrastructure; increased risks associated with international operations; increases in or changes to government regulation of our businesses; the cost of, and potential adverse results in, litigation involving intellectual property, antitrust, shareholder and other matters; the seasonal and unpredictable nature of our revenue; unanticipated changes in our income tax rates; adverse global economic conditions; amortization of acquired intangible assets and impairment charges; our use of significant amounts of debt to finance acquisitions or other activities;  any lost revenue opportunities or cannibalization of our traditional paid franchise due to our participation in the Free File Alliance; and changes in the amounts or frequency of share repurchases or dividends. More details about the risks that may impact our business are included in our Form 10-K for fiscal 2017 and in our other SEC filings. You can locate these reports through our website at Forward-looking statements are based on information as of November 20, 2017, and we do not undertake any duty to update any forward-looking statement or other information in these materials.