Press Releases

Intuit Grows First-Quarter Revenue 12 Percent; Reiterates Full-year Guidance

Small Business Group Revenue Increased 13 Percent, Driven by Strength in Connected Services

MOUNTAIN VIEW, Calif. – Nov. 17, 2011 – Intuit Inc. (Nasdaq: INTU) today announced financial results for its first fiscal quarter, which ended Oct. 31, and reiterated guidance for the full fiscal year 2012.

Unless otherwise noted, all growth rates refer to the current fiscal quarter versus the comparable prior-year quarter.

First Quarter Highlights:
  • Increased revenue by 12 percent, to $594 million.
  • Grew Small Business revenue by double-digits for the seventh consecutive quarter, driven by strong adoption of online and mobile services and improving revenue per customer.
  • Generated strong revenue growth through connected services. QuickBooks Online increased subscribers 40 percent, to over 300,000.
  • Reported first quarter fiscal 2012 operating loss narrowed significantly compared to the first quarter last year.
  • Reiterated guidance for the full fiscal year 2012, including revenue growth of 9 to 11 percent, GAAP earnings per share growth of 19 to 24 percent, and Non-GAAP earnings per share growth of 14 to 17 percent.
  • Launched for the iPad to positive reviews; the current rating is 4.5 out of 5 stars in the Apple app store.
Snapshot of First Quarter Results
  Q1 FY12 Q1 FY11 Change Q1 FY12 Q1 FY11 Change
Revenue $594 $532 12% $594 $532 12%
Operating Loss $(94) $(104) NA $(29) $(53) NA
EPS $(0.21) $(0.22) NA $(0.10) $(0.12) NA

Dollars are in millions, except EPS.

Intuit typically posts a seasonal loss in its first fiscal quarter when there is little revenue from its tax businesses but expenses continue at relatively consistent levels.

CEO Perspective

"We're off to another strong start in fiscal 2012, growing revenue double-digits. Growth was led by our Small Business Group, which has now posted double-digit growth for seven consecutive quarters," said Brad Smith, president and chief executive officer. "Across the board our first-quarter results are in line with our expectations, so we are reiterating our guidance for fiscal 2012.

"Our business is growing despite a volatile macroeconomic environment, because we benefit from secular tailwinds. The long-term structural shift to connected services is overpowering the cyclical uncertainty weighing down the economy. Intuit also benefits from enriching the mix for our base of 50 million customers who are rapidly adopting connected services, which generate recurring revenue streams and favorable lifetime value economics for Intuit.

"Our results in the first quarter reinforce that our strategy is working and give us confidence as we head into the remainder of our fiscal year. We are in a digital jet stream, as consumers and small businesses increasingly demand access to applications anytime, anywhere and on any device. That demand will only get stronger as the proliferation of mobile devices continues. If we do our job well, and continue to innovate, we will benefit from these ongoing trends for a long time to come."

Business Segment Results and Highlights

Total Small Business Group revenue increased 13 percent for the quarter. Within the Small Business Group:

  • Financial Management Solutions segment revenue increased 9 percent.  QuickBooks Online grew subscribers by 40 percent and QuickBooks Enterprise Solutions grew subscribers by 28 percent, contributing to a favorable revenue mix.
  • Employee Management Solutions segment revenue grew 13 percent due to improved customer retention and favorable revenue mix. Total payroll customers were up 3 percent, while online payroll customers were up 20 percent. During the quarter Intuit expanded several partnerships to distribute Intuit Full Service Payroll.
  • Payment Solutions segment revenue increased 19 percent, driven by 11 percent growth in the merchant customer base and 1 percent growth in transaction volume per merchant.

Consumer Tax

  • Consumer Tax segment revenue increased to $41 million, a $12 million increase in a seasonally light quarter. More customers filed extended returns in the first quarter of fiscal 2012 compared with a year ago. TurboTax for 2011 will go on sale in retail stores on Nov. 25 and will be available online Dec. 1.

Accounting Professionals

  • Accounting Professionals segment revenue increased 6 percent to $27 million in a seasonally light quarter.

Financial Services

  • Financial Services revenue grew 9 percent due to adding financial institutions and end users along with incremental services and mobile adoption. Mobile banking users more than tripled over the last year to more than 1.2 million users, helping to improve revenue per user.

Other Businesses

  • Other Businesses segment revenue declined 3 percent.
Quarterly Dividend

Intuit paid its first quarterly cash dividend of $0.15 per share, or $45 million, in the first quarter. In November the company's board of directors approved a quarterly cash dividend of $0.15 per share to be paid on Jan. 18, 2012 to shareholders of record as of the close of business on Jan. 10.

Stock Repurchase Program

During the first quarter, Intuit repurchased $255 million of its shares. At the end of the quarter the company had authorization from its board of directors to use up to an additional $2.4 billion for stock repurchases through August 2014.

CFO Perspective

"We've consistently delivered strong total Small Business Group revenue results, which are benefiting from the ongoing shift from desktop to online services," said Neil Williams, Intuit's chief financial officer.

"Approximately 70 percent of small business customers now enter the Intuit franchise through a connected service, including QuickBooks Online and other services, up from 40 percent in 2008.

"We expect the rapid adoption of connected services to continue in small business and across all of our businesses. Today, we reported that our first quarter fiscal 2012 loss narrowed significantly compared to the first quarter of last year, which reinforces the benefit of the shift to more recurring, reliable connected services revenue."

Forward-looking Guidance

For the second quarter of fiscal 2012, Intuit expects:

  • Revenue of $1 billion to $1.02 billion.
  • GAAP operating income of $155 million to $175 million.
  • Non-GAAP operating income of $210 million to $230 million.
  • GAAP diluted EPS of $0.30 to $0.34.
  • Non-GAAP diluted EPS of $0.43 to $0.47.

Intuit today also provided GAAP and Non-GAAP EPS guidance ranges for the third and fourth quarters:

For the third quarter of fiscal 2012, Intuit expects:

  • GAAP diluted EPS of $2.34 to $2.39.
  • Non-GAAP diluted EPS of $2.45 to $2.50.

For the fourth quarter of fiscal 2012, Intuit expects:

  • GAAP loss per share of $0.02 to $0.04.
  • Non-GAAP diluted EPS of $0.06 to $0.08.

Intuit also reiterated its fiscal year 2012 guidance. For the year ending July 31, 2012, Intuit expects:

  • Revenue of $4.185 billion to $4.285 billion, growth of 9 to 11 percent.
  • GAAP operating income of $1.185 billion to $1.21 billion, growth of 18 to 20 percent.
  • Non-GAAP operating income of $1.4 billion to $1.425 billion, growth of 12 to 14 percent.
  • GAAP diluted EPS of $2.38 to $2.47, growth of 19 to 24 percent.
  • Non-GAAP diluted EPS of $2.85 to $2.94, growth of 14 to 17 percent.
Conference Call Details

Intuit executives will discuss the financial results on a conference call today at 1:30 p.m. Pacific time. To hear the call, dial 866-238-1641 in the United States or 703-639-1162 from international locations. No reservation or access code is needed. The conference call can also be heard live via webcast 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 also be available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The access code for this call is 1555508. The audio webcast will remain available on Intuit's website for one week after the conference call. The audio webcast will remain available on Intuit's website for one week after the conference call.

About Intuit

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.9 billion in its fiscal year 2011. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at

About Non-GAAP Financial MeasuresReplay Information

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 accompanying Table B and Table E as well as the section titled "About Non-GAAP Financial Measures." A copy of the press release issued by Intuit today can be found on the investor relations page of Intuit's Web site.

Cautions About Forward-Looking Statements

This press release contains forward-looking statements, including forecasts of Intuit's future expected financial results; expectations regarding growth from digital services and from current or future products and services; expectations regarding the amount and timing of any future dividends; its prospects for the business in fiscal 2012; 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; product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities or public policy affecting the preparation and filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully innovate and introduce new offerings and business models to meet our growth and profitability objectives, and current and future offerings may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; business interruption or failure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation and harm our future financial results; as we upgrade and consolidate our customer facing applications and supporting information technology infrastructure, any problems with these implementations could interfere with our ability to deliver our offerings; any failure to properly use and protect personal customer information and data could harm our revenue, earnings and reputation; if we are unable to develop, manage and maintain critical third party business relationships, our business may be adversely affected; increased government regulation of our businesses may harm our operating results; if we fail to process transactions effectively or fail to adequately protect against potential fraudulent activities, our revenue and earnings may be harmed; any significant offering quality problems or delays in our offerings could harm our revenue, earnings and reputation; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; the continuing global economic downturn may continue to impact consumer and small business spending, financial institutions and tax filings, which could negatively affect our revenue and profitability; year-over-year changes in the total number of tax filings that are submitted to government agencies due to economic conditions or otherwise may result in lost revenue opportunities; 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; 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; our inability to adequately protect our intellectual property rights may weaken our competitive position and reduce our revenue and earnings; our acquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of the transactions; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operation; and litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2011 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 17, 2011, and we do not undertake any duty to update any forward-looking statement or other information in these materials.

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

(Financial Statements follow)