Press Releases

Intuit's Second-Quarter Revenue Grows 15 Percent
Raises Fiscal Year 2006 Earnings per Share Guidance
MOUNTAIN VIEW, Calif. - Feb. 16, 2006 - Intuit Inc. (Nasdaq: INTU) today announced its second quarter 2006 revenue increased 15 percent over the year-ago quarter to $742.7 million. Growth was driven by strong sales of QuickBooks software and add-on solutions and TurboTax products and services. Revenue growth also benefited from changes in the TurboTax offering and pricing, which shifted approximately $35 million of revenue into the second quarter that in prior years would have been recognized in the third quarter. Without that timing shift, Intuit’s revenue would have increased 9 percent.

"Intuit delivered another strong quarter and we're on track for another strong year," said Steve Bennett, Intuit’s president and chief executive officer. "Our two largest businesses - QuickBooks and TurboTax - continued to perform very well as we successfully execute strategies to expand our customer base and solve more of our customers' needs."

Second-Quarter 2006 Financial Highlights
Intuit posted GAAP (Generally Accepted Accounting Principles) net income of $184.9 million, up 26 percent from the year-ago quarter. GAAP diluted earnings per share, or EPS, was $1.02, up 32 percent from the year-ago quarter. Second-quarter 2006 GAAP results benefited from a gain of approximately $0.14 per share from the sale of its Information Technology Solutions business. GAAP results also included approximately $0.06 per share for share-based compensation expenses.

Intuit's non-GAAP net income of $176.5 million was up 17 percent over the prior-year period. Non-GAAP diluted EPS was $0.97, up 21 percent over the prior-year period.

Second-Quarter 2006 Business Segment Results
  • QuickBooks-Related revenue of $259.0 million was up 16 percent over the year-ago quarter.
  • Consumer Tax revenue of $190.3 million was up 35 percent over the year-ago quarter. Because of changes in the TurboTax product offering and pricing, Intuit recognized approximately $35 million in the second quarter of 2006 that in prior years would have been recognized in its third fiscal quarter. Had that revenue not shifted from the third to second quarter this year, Consumer Tax revenue would have increased 10 percent.
  • Professional Tax revenue of $150.5 million was flat year-over-year.
  • Intuit-Branded Small Business revenue of $69.6 million was up 15 percent over the year-ago quarter.
  • Other Businesses revenue of $73.3 million was flat year-over-year.
Fiscal 2006 Guidance
Intuit raised its EPS guidance for fiscal 2006, which will end on July 31, 2006, to reflect the strength of first-half performance and greater visibility into the remainder of the year. It also raised the low end of its fiscal 2006 revenue guidance. The company expects:
  • Revenue of $2.22 billion to $2.26 billion, which represents annual growth of 9 percent to 11 percent. Earlier guidance was for annual growth of 8 percent to 11 percent.
  • GAAP diluted EPS of $2.16 to $2.21, versus $2.03 in fiscal 2005. Prior guidance was for GAAP diluted EPS of $2.12 to $2.20. On a non-GAAP basis, diluted EPS is expected to be $2.27 to $2.32, which represents annual growth of 13 percent to 15 percent. Earlier guidance was for non-GAAP EPS of $2.23 to $2.31, or annual growth of 11 percent to 15 percent.
Third-Quarter 2006 Guidance
Intuit has narrowed its third-quarter guidance to the lower ends of the prior ranges. Intuit now expects:
  • Revenue of $860 million to $880 million, or year-over-year growth of 3 percent to 5 percent.
  • GAAP diluted EPS of $1.54 to $1.58. Intuit expects non-GAAP diluted EPS of $1.62 to $1.66, or year-over-year growth of 5 percent to 8 percent.
Fourth-Quarter 2006 Guidance
Intuit has raised its fourth-quarter EPS guidance and raised the lower end of fourth-quarter revenue guidance. Intuit now expects:
  • Revenue of $310 million to $330 million, or year-over-year growth of 3 percent to 9 percent.
  • GAAP diluted EPS of a loss of $0.15 to a loss of $0.17. Intuit expects non-GAAP diluted EPS of a loss of $0.07 to $0.09.
Revenue growth guidance for Intuit’s five business segments is provided on the accompanying fact sheet.

Webcast and Conference Call Information
A live audio webcast of Intuit’s second-quarter 2006 conference call is available at http://www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. PST. The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has posted to its Web site this press release, including the attached tables and non-GAAP to GAAP reconciliations. Intuit will post the conference call script to the Web site shortly after the conference call concludes.

The conference call number is (866) 244-4515 in the United States and (703) 639-1168 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling (888) 266-2081 in the United States and (703) 925-2533 from international locations. The access code is 846377.

Intuit, the Intuit logo, Quicken, QuickBooks and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

About Non-GAAP Financial Measures
This press release and the accompanying tables and sheet entitled "Intuit Facts" include non-GAAP financial measures. For a description of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section of the accompanying tables entitled "About Non-GAAP Financial Measures" as well as the related Table A2, Table B, Table E1 and Table E2 which follow it. A copy of the press release filed by Intuit on Nov. 16, 2005, can be found on the investor relations page of Intuit's web site at www.intuit.com.

Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of our expected financial results. Other statements relating to the future are also forward-looking, including: our expectations regarding future market opportunities; our prospects for the business in fiscal 2006 and beyond; our expectations regarding future stock repurchases; all of the statements under the headings "Fiscal 2006 Guidance" and "Second Quarter 2006 Guidance;" our objectives regarding future revenue growth and EPS growth; our assessment of potential growth opportunities; and our expectations regarding the launch of new or improved products and services.

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: product introductions and price competition from our competitors, including competition from Microsoft, which has released accounting software and associated services for small business customers, can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities regulating the filing of tax returns could negatively effect our operating results and market position; current and future products and services, including the 2006 edition of QuickBooks, may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives; our new product or service offerings may not attract customers or they may negatively impact our profitability if the business models for new offerings are not successful or if customers elect to purchase lower-priced alternatives; we have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares to grow; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and our failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2005 and in other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of November 16, 2005, and we do not undertake any duty to update any forward-looking statement or other information in this press release.

(Fact Sheet follows)