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Intuit Announces Record Third-Quarter Revenue; Raises Full-Year Revenue and Earnings Guidance

Quarterly Revenue up 15 Percent ; Earnings per Share up 28 Percent

MOUNTAIN VIEW, Calif. – May 20, 2008 - Intuit Inc. (Nasdaq: INTU) today announced record third-quarter revenue of $1.3 billion, a 15 percent increase over the year-ago quarter. Earnings per share were up 28 percent. Growth was driven by excellent performance in the consumer and professional tax segments.

"We had an outstanding tax season and the small business segments, including QuickBooks and Payroll and Payments, also performed well," said Brad Smith, Intuit's president and chief executive officer. "As a result, we're raising our fiscal year revenue and earnings estimates and expect to deliver another year of double-digit revenue and earnings growth for Intuit."

Third-Quarter 2008 Financial Highlights
  • Revenue of $1.313 billion increased 15 percent from the year-ago quarter.
  • GAAP (Generally Accepted Accounting Principles) operating income of $675 million increased 17 percent from the year-ago quarter.
  • GAAP net income of $444 million increased 21 percent from the year-ago quarter. This represents GAAP diluted earnings per share of $1.33, up 28 percent from the year-ago quarter.
  • Non-GAAP operating income of $728 million increased 17 percent from the year-ago quarter. This represents non-GAAP diluted earnings per share of $1.39, up 23 percent from the year-ago quarter.
Third-Quarter 2008 Business Segment Results
  • Consumer Tax revenue was $657 million, up 16 percent over the year-ago quarter.
  • QuickBooks revenue was $165 million, up 5 percent over the year-ago quarter.
  • Payroll and Payments revenue was $142 million, up 14 percent over the year-ago quarter.
  • Professional Tax revenue was $166 million, up 20 percent from the year-ago quarter. Results were affected by the previously reported deferral of approximately $23 million of revenue from the second quarter to the third quarter. Year to date, Professional Tax revenue is up 1 percent.
  • Financial Institutions revenue was $76 million, up 17 percent from the year-ago quarter. This segment includes Digital Insight, which was acquired on Feb. 6, 2007. Intuit's third fiscal quarter begins on Feb. 1. On a full-quarter basis, the Financial Institutions third-quarter revenue growth rate would have been 10 percent.
  • Other Businesses revenue was $107 million, up 20 percent over the year-ago quarter.
Forward-looking Guidance

Intuit raised full-year 2008 revenue, operating income and earnings per share guidance. For fiscal 2008 the company expects:

  • Revenue of $3.05 billion to $3.06 billion, or growth of 14 percent.
  • GAAP operating income of $655 million to $665 million, or growth of 3 percent to 4 percent. On a non-GAAP basis, operating income is expected to be $860 million to $870 million, or growth of 12 percent to 14 percent.
  • GAAP diluted earnings per share, or EPS, of $1.42 to $1.44, or growth of 15 percent to 16 percent. On a non-GAAP basis, diluted EPS is expected to be $1.61 to $1.63, or growth of 13 percent to 14 percent.

Intuit also raised its previously given fiscal year revenue guidance for the Consumer Tax segment, which is now expected to grow 14 percent. All other fiscal year 2008 segment revenue guidance remained unchanged. Additional guidance details are available on Intuit's Web site at www.intuit.com/about_intuit/investors/earnings/2008.

New Stock Repurchase Program

Intuit also announced today a new stock repurchase program authorizing the purchase of up to $600 million of Intuit stock over the next three years. Intuit used all remaining funds in its last $800 million repurchase program, authorized in May 2007, during its fiscal third-quarter 2008, which ended on April 30. Since authorizing its first stock repurchase program in May 2001, Intuit has spent approximately $4.5 billion to repurchase approximately 186 million shares of its stock.

Webcast and Conference Call Information

A live audio webcast of Intuit's third-quarter 2008 conference call is available at http://www.intuit.com/about_intuit/investors/webcast.jsp. 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 http://intuit.com/about_intuit/investors/earnings/2008/.

The conference call number is 866-814-1918 in the United States or 703-639-1362 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 1232067.

Intuit, the Intuit logo 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 May 20, 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 http://www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of May 20, 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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