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Intuit Second-Quarter Revenue Grows 11 Percent

MOUNTAIN VIEW, Calif. – Feb. 21, 2008 - Intuit Inc. (Nasdaq: INTU) today announced strong second-quarter results, with revenue growing 11 percent to $835 million for the period ending Jan. 31.

"We are pleased with the early results for TurboTax and the continued strong growth in Payroll and Payments," said Brad Smith, Intuit's president and chief executive officer. "We are looking forward to another year of double-digit revenue growth for Intuit."

Second-Quarter 2008 Financial Highlights
  • Revenue of $834.9 million increased 11 percent from the year-ago quarter. Growth was driven by the acquisition of Digital Insight in February 2007 and strong performance in Consumer Tax.
  • Operating income and net income for the quarter reflect the deferral of approximately $23 million of ProTax revenue to the third quarter, increased costs related to the acquisition of Digital Insight and higher marketing spend to support the launch of the company's Consumer Tax offerings.
    • GAAP (Generally Accepted Accounting Principles) operating income from continuing operations was $173.6 million, compared with GAAP operating income from continuing operations of $214.7 million in the year-ago quarter.
    • GAAP net income was $115.2 million, compared with GAAP net income of $145.4 million in the year-ago quarter. This represents GAAP diluted net income per share of $0.34, compared with GAAP diluted net income per share of $0.40 in the year-ago quarter.
    • Non-GAAP operating income was $224.5 million, compared with non-GAAP operating income of $237.4 million in the year-ago quarter. Non-GAAP diluted net income per share was $0.40, compared with non-GAAP diluted net income per share of $0.44 in the year-ago quarter.
Second-Quarter 2008 Business Segment Results
  • Consumer Tax revenue was $248.3 million, up 11 percent over the year-ago quarter.
  • QuickBooks revenue was $175.4 million, up 5 percent over the year-ago quarter.
  • Payroll and Payments revenue was $138 million, flat compared with the year-ago quarter, or growth of 16 percent, excluding the sale of certain payroll assets to ADP during fiscal 2007.
  • Professional Tax revenue was $105.4 million, down 19 percent from the year-ago quarter. Results were affected by the previously mentioned deferral of approximately $23 million of revenue to the third quarter.
  • Financial Institutions revenue was $72.3 million and includes the results of Digital Insight.
  • Other Businesses revenue was $95.5 million, up 12 percent over the year-ago quarter.
Forward-looking Guidance

Intuit reaffirmed its previously given revenue guidance for full fiscal year 2008. Intuit also updated operating income and fully diluted earnings per share guidance for fiscal year 2008 to reflect the impact of the acquisition of Homestead Technologies Inc., and the expectation that the research and development tax credit will not be renewed before the end of the fiscal year. For fiscal 2008 the company expects:

  • Revenue of $3.0 billion to $3.05 billion, or growth of 12 percent to 14 percent.
  • GAAP operating income of $635 million to $650 million, or growth of 0 percent to 2 percent. On a non-GAAP basis, operating income is expected to be $845 million to $860 million, or growth of 10 percent to 12 percent.
  • GAAP diluted EPS of $1.38 to $1.40, or growth of 11 percent to 13 percent. On a non-GAAP basis, diluted EPS is expected to be $1.56 to $1.58, or growth of 9 percent to 10 percent.

Intuit also adjusted its previously given third- and fourth-quarter guidance for earnings per share and its previously given fiscal 2008 revenue guidance for the QuickBooks segment. Fiscal 2008 revenue guidance for Intuit's other segments is unchanged. Third-quarter GAAP diluted EPS is now expected to be $1.23 to $1.26. Third-quarter non-GAAP diluted EPS is now expected to be $1.31 to $1.34. Fourth-quarter GAAP EPS is now expected to be a loss of $0.14 to a loss of $0.12. Fourth quarter non-GAAP EPS is now expected to be a loss of $0.05 to a loss of $0.03.

Details on segment revenue guidance are available on Intuit's Web site at

Webcast and Conference Call Information

A live audio webcast of Intuit's second-quarter 2008 conference call is available at The call begins today at 1:30 p.m. Pacific time. The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has also posted this press release, including the attached tables and non-GAAP to GAAP reconciliations on its Web site and will post the conference call script shortly after the conference call concludes. These documents may be found at

The conference call number is 866-802-4328 in the United States or 703-639-1322 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, or 703-925-2533 from international locations. The access code for this call is 1194071.

Intuit, the Intuit logo, TurboTax and QuickBooks, 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 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 B and Table E which follow it. A copy of the press release issued by Intuit on February 21, 2008 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 double-digit revenue growth and other future expected financial results; its prospects for the business in fiscal 2008 and beyond; 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: 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 regulating the filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives, and current and future products and services may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; any failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability; any significant product quality problems or delays in our products 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; any failure to properly use and protect personal customer information could harm our revenue, earnings and reputation; our acquisition activities may be disruptive to Intuit and may not result in expected benefits; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operations; 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 have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to deliver products and services 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; 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 2007 and in our other SEC filings. You can locate these reports through our website at Forward-looking statements are based on information as of February 21, 2008, and we do not undertake any duty to update any forward-looking statement or other information in these remarks.

(Financial Statements follow)

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