Intuit Annual Revenue Grows 11 Percent; GAAP Operating Income Grows 26 Percent
Annual Non-GAAP Operating Income Exceeds $1 Billion for First Time; Strong Fourth-Quarter Results Led by Double-digit Growth in Small Business
MOUNTAIN VIEW, Calif. – Aug. 19, 2010 – Intuit Inc. (Nasdaq: INTU) today announced financial results for its fourth quarter and full fiscal year 2010, which ended July 31. The company also provided initial guidance for fiscal year 2011.
Fiscal Year 2010 Highlights:
Intuit provided guidance for fiscal year 2011, which ends July 31, and expects revenue of $3.74 billion to $3.84 billion or growth of 8 to 11 percent.
Dollars in millions except for EPS
Growth in GAAP earnings is higher than non-GAAP because amortization of acquired intangible assets and non-cash stock compensation expense, which are classified as GAAP only, are growing slower than revenue. GAAP net income and EPS also benefited from the $35 million net gain on the sale of the Real Estate Solutions business in January 2010.
Fourth-Quarter 2010 Highlights:
Dollars in millions except for EPS
"We completed another strong quarter, capping off a great fiscal year," said Brad Smith, Intuit's president and chief executive officer. "For the year, we delivered double-digit revenue growth in what continues to be a challenging economic environment. Our results continue to demonstrate that our strategy is working, and our execution is on track. We are pleased with our financial performance, and have built positive momentum as we head into fiscal year 2011.
"Intuit is a leader in categories that are growing. We're increasing our share in small business and consumer tax. We are accelerating customer growth and improving revenue per customer. Our next phase of growth is being driven by the clear market shift to digital or connected services. Intuit is perfectly positioned for this shift, and making strong progress in building the next phase of our growth on our leading software-as-a-service offerings."
Quarterly Business Segment Results and Highlights
Total Small Business Group revenue grew 9 percent for the year and 16 percent for the quarter, driven by strong performance in Financial Management Solutions and Employee Management Solutions.
Employee Management Solutions
Intuit announced guidance for fiscal year 2011, which ends July 31, 2011 and expects:
Intuit expects the following revenue growth by segment for fiscal 2011:
For the first quarter of fiscal 2011, Intuit expects:
Stock Repurchase Program
During the fourth quarter, Intuit repurchased $150 million of its shares, bringing total repurchases to $900 million for fiscal 2010.
Intuit's board of directors approved a new $2 billion stock repurchase program over the next three years, which is authorized through August 2013. The company does not expect to use the entire authorization in fiscal 2011. The three-year window provides the flexibility to maintain an active stock repurchase program while also investing for growth.
Conference Call Information
Intuit executives will discuss the financial results on a conference call today at 1:30 p.m. Pacific time. To hear the call, dial 866-238-1645 in the United States or 703-639-1163 from international locations. No reservation or access code is needed. The conference call can also be heard live via webcast at http://investors.intuit.com/events.cfm. Prepared remarks for the call will be available on Intuit's website after the call ends.
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 1472989.
The audio webcast will remain available on Intuit's website for one week after the conference call.
About Intuit Inc.
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 $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.
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. 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; its prospects for the business in fiscal 2011; its expectations for stock repurchases; 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 or public policy affecting the preparation and filing of tax returns could negatively affect our operating results and market position; with continuing uncertainty with the economic and market conditions in the U.S. and worldwide, our customers may delay or reduce technology purchases which may harm our business, results of operations and financial condition; 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; as we upgrade and consolidate our technology, systems and platforms, any problems with these implementations could interfere with our ability to deliver products and services; 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 2009 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. Forward-looking statements are based on information as of August 19, 2010, and we do not undertake any duty to update any forward-looking statement or other information in these materials.
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