Intuit Records Third-quarter Revenue of $1.9 Billion
Small Business, Consumer Tax Revenue Grow 11 Percent Year to Date
MOUNTAIN VIEW, Calif. – May. 17, 2012 – Intuit Inc. (Nasdaq: INTU) today announced financial results for its third fiscal quarter, which ended April 30. Unless otherwise noted, all growth rates refer to the current period versus the comparable prior-year period.
Snapshot of Third-quarter Results
Snapshot of Year-to-date Results
Dollars are in millions, except earnings per share (EPS). See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP).
“Small business and consumer tax delivered 11 percent revenue growth year to date – a solid performance overall,” said Brad Smith, Intuit’s president and chief executive officer.
“In tax, we continue to be at the center of the shift to digital tax preparation. The digital category grew 5 percent this year, significantly faster than any other method, but slower than we had planned. With the tax season over, we’ll assess our main growth drivers and apply that knowledge as we look toward next tax season.
“Our largest business, the small business group, delivered strong revenue growth in the quarter. Connected services and mobile offerings continue to gain momentum as more small businesses turn to the cloud.
“Long-term, as consumers and small businesses continue to adopt technology, our opportunity to innovate and convert non-consumption remains strong and I remain confident in our strategy and opportunities for growth,” Smith said.
Quarterly Business Segment Results and Highlights
Total Small Business Group revenue grew 11 percent, led by strength in Employee Management Solutions and Payment Solutions.
“We took several steps to evolve our portfolio in the third quarter, which included several transactions in line with our broader financial principles,” said Neil Williams, Intuit’s chief financial officer. “Our pending purchase of Demandforce and the acquisition of AisleBuyer will strengthen our small business segment. We also took steps to address nonstrategic assets with the sale of our corporate banking business to Bottomline Technologies. This transaction will help the Financial Services team focus on innovating for consumers and small businesses.”
Intuit paid a quarterly cash dividend of $0.15 per share, or $45 million, in the third quarter of fiscal 2012. In May the board of directors approved a new quarterly cash dividend of $0.15 per share to be paid on July 18 to shareholders of record as of the close of business on July 10.
Share Repurchase Program
Intuit repurchased $207 million of its common stock in the third quarter of fiscal 2012, bringing repurchases to a total of $793 million for the fiscal year to date. At the end of the quarter the company had authorization from its board of directors to use up to an additional $1.8 billion in cash for stock repurchases through August 2014.
With tax season substantially complete, Intuit updated its full fiscal year guidance. For the fiscal year ending July 31, the company now expects:
Intuit also provided fourth quarter revenue and operating income guidance and updated the EPS guidance which it provided last quarter. For the fourth quarter of fiscal 2012, the company expects:
Conference Call Information
Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time today. To hear the call, dial 866-731-8333 in the United States or 973-935-8686 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 by calling 888-266-2081, or 703-925-2533 from international locations. The access code for this call is 1577180.
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small and medium-sized businesses; consumers, accounting professionals and financial institutions. Its flagship products and services, including QuickBooks®, TurboTax® and Quicken®, simplify small business management including payment and payroll processing, tax preparation and filing, and personal finance. Lacerte® and ProSeries® 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 www.intuit.com.
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.
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 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 connected services, mobile offerings and from other current or future products and services; expectations regarding the ability to convert non-consumption; expectations regarding the amount and timing of any future dividends or share repurchases; the impact of acquisitions and divestitures on its business; its prospects for the business in fiscal 2012; and all of the statements under the heading “Forward-Looking Guidance.”
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