Global Business Solutions Group Revenue Grew 19
percent
Intuit Inc. (Nasdaq: INTU), the global financial technology
platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and
Mailchimp, announced financial results for the second quarter of
fiscal 2025, which ended January 31.
"We are making great progress fueling the financial success of
consumers, businesses, and accountants with our AI-driven expert
platform," said Sasan Goodarzi, Intuit's chief executive officer.
"Intuit Assist is delivering 'done-for-you' experiences to complete
tasks, automate end-to-end workflows, and connect customers to
AI-powered human experts, powering their prosperity."
Financial Highlights
For the second quarter, Intuit:
- Grew total revenue to $4.0 billion, up 17 percent.
- Increased Global Business Solutions Group revenue to $2.7
billion, up 19 percent; grew Online Ecosystem revenue to $2.0
billion, up 21 percent.
- Grew Credit Karma revenue to $511 million, up 36 percent.
- Reported Consumer Group revenue of $509 million, up 3 percent,
and ProTax Group revenue of $272 million, down 1 percent.
- Increased GAAP operating income to $593 million, up 61
percent.
- Grew Non-GAAP operating income to $1.3 billion, up 26
percent.
- Increased GAAP diluted earnings per share to $1.67, up 34
percent.
- Grew non-GAAP diluted earnings per share to $3.32, up 26
percent.
Unless otherwise noted, all growth rates refer to the current
period versus the comparable prior-year period, and the business
metrics and associated growth rates refer to worldwide business
metrics.
Snapshot of Second-quarter Results
GAAP
Non-GAAP
Q2
FY25
Q2
FY24
Change
Q2
FY25
Q2
FY24
Change
Revenue
$3,963
$3,386
17%
$3,963
$3,386
17%
Operating Income
$593
$369
61%
$1,260
$1,000
26%
Earnings Per Share
$1.67
$1.25
34%
$3.32
$2.63
26%
Dollars are in millions, except earnings
per share. See “About Non-GAAP Financial Measures” below for more
information regarding financial measures not prepared in accordance
with Generally Accepted Accounting Principles (GAAP).
"We delivered very strong second quarter fiscal 2025 results as
we leverage AI to deliver breakthrough experiences for our
customers and increase productivity across our platform," said
Sandeep Aujla, Intuit's chief financial officer. "We are confident
in delivering double-digit revenue growth and expanding margin this
year, and we are reiterating our full year guidance for fiscal
2025."
Business Segment Results
Global Business Solutions
Group
Global Business Solutions Group revenue grew to $2.7 billion, up
19 percent, and Online Ecosystem revenue increased to $2.0 billion,
up 21 percent.
- Online Services revenue grew 19 percent, driven by growth in
money, payroll, and Mailchimp offerings.
- QuickBooks Online Accounting revenue grew 22 percent in the
quarter, driven by higher effective prices, customer growth, and
mix-shift.
- Total international Online Ecosystem revenue grew 9 percent on
a constant currency basis.
Credit Karma
Credit Karma revenue grew 36 percent to $511 million in the
quarter, driven by strength in credit cards, personal loans, and
auto insurance.
Consumer Group
Consumer Group revenue of $509 million was up 3 percent in the
quarter.
Capital Allocation Summary
In the second quarter, the company:
- Reported a total cash and investments balance of approximately
$2.5 billion and $6.3 billion in debt as of January 31, 2025. The
company entered into a $4.5 billion revolving credit facility on
January 30, 2025 that it is using to fund its 5-Day Early refund
offering. This facility expires on April 30, 2025.
- Repurchased $721 million of stock, and $3.6 billion remains on
the company's share repurchase authorization.
- Received Board approval for a quarterly dividend of $1.04 per
share, payable April 18, 2025. This represents a 16 percent
increase per share compared to the same period last year.
Forward-looking Guidance
Intuit reiterated guidance for the full fiscal year 2025. The
company expects:
- Revenue of $18.160 billion to $18.347 billion, growth of
approximately 12 to 13 percent.
- GAAP operating income of $4.649 billion to $4.724 billion,
growth of approximately 28 to 30 percent.
- Non-GAAP operating income of $7.241 billion to $7.316 billion,
growth of approximately 13 to 14 percent.
- GAAP diluted earnings per share of $12.34 to $12.54, growth of
approximately 18 to 20 percent.
- Non-GAAP diluted earnings per share of $19.16 to $19.36, growth
of approximately 13 to 14 percent.
The company also reiterated full fiscal year 2025 segment
revenue guidance:
- Global Business Solutions Group: growth of 16 to 17 percent.
This includes Online Ecosystem revenue growth of approximately 20
percent, and Desktop Ecosystem revenue growth in the low single
digits.
- Consumer Group: growth of 7 to 8 percent.
- ProTax Group: growth of 3 to 4 percent.
- Credit Karma: growth of 5 to 8 percent.
Intuit announced guidance for the third quarter of fiscal year
2025, which ends April 30. The company expects:
- Revenue of $7.550 billion to $7.600 billion, growth of
approximately 12 to 13 percent.
- GAAP diluted earnings per share of $9.22 to $9.28.
- Non-GAAP diluted earnings per share of $10.89 to $10.95.
Conference Call Details
Intuit executives will discuss the financial results on a
conference call at 1:30 p.m. Pacific time on February 25. The
conference call can be heard live at
https://investors.intuit.com/news-events. 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 be available for one week
by calling 800-757-4764, or 402-220-7226 from international
locations. There is no passcode required. The audio call will
remain available on Intuit’s website for one week after the
conference call.
About Intuit
Intuit is the global financial technology platform that powers
prosperity for the people and communities we serve. With
approximately 100 million customers worldwide using products such
as TurboTax, Credit Karma, QuickBooks, and Mailchimp, we believe
that everyone should have the opportunity to prosper. We never stop
working to find new, innovative ways to make that possible. Please
visit us at Intuit.com and find us on social for the latest
information about Intuit and our products and services.
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 B1, Table B2, and Table E. A copy of
the press release issued by Intuit today can be found on the
investor relations page of Intuit's website.
Cautions About Forward-looking Statements
This press release contains forward-looking statements,
including expectations regarding: forecasts and timing of growth
and future financial results of Intuit and its reporting segments;
Intuit’s prospects for the business in fiscal 2025; timing and
growth of revenue from current or future products and services;
Intuit's corporate tax rate; the amount and timing of any future
dividends or share repurchases; and the impact of strategic
decisions on our business; as well as 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 risks and uncertainties
may be amplified by the effects of global developments and
conditions or events, including macroeconomic uncertainty and
geopolitical conditions, which have caused significant global
economic instability and uncertainty. Given these risks and
uncertainties, persons reading this communication are cautioned not
to place any undue reliance on such forward-looking statements.
These factors include, without limitation, the following: our
ability to compete successfully; potential governmental
encroachment in our tax business; our ability to develop, deploy,
and use artificial intelligence in our platform and products; our
ability to adapt to technological change and to successfully extend
our platform; our ability to predict consumer behavior; our
reliance on intellectual property; our ability to protect our
intellectual property rights; any harm to our reputation; risks
associated with our environmental, social, and governance efforts;
risks associated with acquisition and divestiture activity; the
issuance of equity or incurrence of debt to fund acquisitions or
for general business purposes; cybersecurity incidents (including
those affecting the third parties we rely on); customer or
regulator concerns about privacy and cybersecurity incidents;
fraudulent activities by third parties using our offerings; our
failure to process transactions effectively; interruption or
failure of our information technology; our ability to maintain
critical third-party business relationships; our ability to attract
and retain talent and the success of our hybrid work model; any
deficiency in the quality or accuracy of our offerings (including
the advice given by experts on our platform); any delays in product
launches; difficulties in processing or filing customer tax
submissions; risks associated with international operations; risks
associated with climate change; changes to public policy, laws or
regulations affecting our businesses; legal proceedings in which we
are involved; fluctuations in the results of our tax business due
to seasonality and other factors beyond our control; changes in tax
rates and tax reform legislation; global economic conditions
(including, without limitation, inflation); exposure to credit,
counterparty and other risks in providing capital to businesses;
amortization of acquired intangible assets and impairment charges;
our ability to repay or otherwise comply with the terms of our
outstanding debt; our ability to repurchase shares or distribute
dividends; volatility of our stock price; our ability to
successfully market our offerings; our expectations regarding the
timing and costs associated with our plan of reorganization
(“Plan”); risks related to the preliminary nature of the estimate
of the charges to be incurred in connection with the Plan, which is
subject to change; and risks related to any delays in the timing
for implementing the Plan or potential disruptions to our business
or operations as we execute on the Plan.
More details about these and other risks that may impact our
business are included in our Form 10-K for fiscal 2024 and in our
other SEC filings. You can locate these reports through our website
at http://investors.intuit.com. Third-quarter and full-year fiscal
2025 guidance speaks only as of the date it was publicly issued by
Intuit. Other forward-looking statements represent the judgment of
the management of Intuit as of the date of this presentation.
Except as required by law, we do not undertake any duty to update
any forward-looking statement or other information in this
presentation.
TABLE A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended
Six Months Ended
January 31,
2025
January 31,
2024
January 31,
2025
January 31,
2024
Net revenue:
Service
$
3,249
$
2,693
$
6,138
$
5,143
Product and other
714
693
1,108
1,221
Total net revenue
3,963
3,386
7,246
6,364
Costs and expenses:
Cost of revenue:
Cost of service revenue
880
796
1,652
1,503
Cost of product and other revenue
20
23
34
38
Amortization of acquired technology
37
36
74
74
Selling and marketing
1,204
1,020
2,166
1,789
Research and development
716
678
1,420
1,358
General and administrative
389
344
783
686
Amortization of other acquired intangible
assets
120
120
240
240
Restructuring
4
—
13
—
Total costs and expenses [A]
3,370
3,017
6,382
5,688
Operating income
593
369
864
676
Interest expense
(60
)
(57
)
(120
)
(122
)
Interest and other income, net
38
42
40
64
Income before income taxes
571
354
784
618
Income tax provision [B]
100
1
116
24
Net income
$
471
$
353
$
668
$
594
Basic net income per share
$
1.68
$
1.26
$
2.38
$
2.12
Shares used in basic per share
calculations
280
280
280
280
Diluted net income per share
$
1.67
$
1.25
$
2.36
$
2.10
Shares used in diluted per share
calculations
283
284
283
284
See accompanying Notes.
INTUIT INC.
NOTES TO TABLE A
[A]
The following table summarizes the total
share-based compensation expense that we recorded in operating
income for the periods shown.
Three Months Ended
Six Months Ended
(In millions)
January 31,
2025
January 31,
2024
January 31,
2025
January 31,
2024
Cost of revenue
$
110
$
101
$
221
$
202
Selling and marketing
136
125
273
248
Research and development
161
162
322
323
General and administrative
91
87
193
197
Total share-based compensation expense
$
498
$
475
$
1,009
$
970
[B]
We compute our provision for or benefit
from income taxes by applying the estimated annual effective tax
rate to income or loss from recurring operations and adding the
effects of any discrete income tax items specific to the
period.
For the three and six months ended January
31, 2025, we recognized excess tax benefits on share-based
compensation of $29 million and $57 million, respectively, in our
provision for income taxes. For the three and six months ended
January 31, 2024, we recognized excess tax benefits on share-based
compensation of $56 million and $83 million, respectively, in our
provision for income taxes.
Our effective tax rates for the three and
six months ended January 31, 2025 were approximately 17% and 15%,
respectively. Excluding discrete tax items primarily related to
share-based compensation, our effective tax rate for both periods
was approximately 24%. The difference from the federal statutory
rate of 21% was primarily due to state income taxes and
non-deductible share-based compensation, which were partially
offset by the tax benefit we received from the federal research and
experimentation credit.
We recorded $1 million in tax expense on
pretax income of $354 million for the three months ended January
31, 2024. Our effective tax rate for the six months ended January
31, 2024 was approximately 4%. Excluding discrete tax items
primarily related to share-based compensation, our effective tax
rate for both periods was approximately 24%. The difference from
the federal statutory rate of 21% was primarily due to state income
taxes and non-deductible share-based compensation, which were
partially offset by the tax benefit we received from the federal
research and experimentation credit.
In the current global tax policy
environment, the U.S. and other domestic and foreign governments
continue to consider, and in some cases enact, changes in corporate
tax laws. As changes occur, we account for finalized legislation in
the period of enactment.
TABLE B1
INTUIT INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP
FINANCIAL MEASURES
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2025
Q1
Q2
Q3
Q4
Year to
Date
GAAP operating income (loss)
$
271
$
593
$
—
$
—
$
864
Amortization of acquired technology
37
37
—
—
74
Amortization of other acquired intangible
assets
120
120
—
—
240
Restructuring
9
4
—
—
13
Net (gain) loss on executive deferred
compensation plan liabilities [A]
5
8
—
—
13
Share-based compensation expense
511
498
—
—
1,009
Non-GAAP operating income
(loss)
$
953
$
1,260
$
—
$
—
$
2,213
GAAP net income (loss)
$
197
$
471
$
—
$
—
$
668
Amortization of acquired technology
37
37
—
—
74
Amortization of other acquired intangible
assets
120
120
—
—
240
Restructuring
9
4
—
—
13
Net (gain) loss on executive deferred
compensation plan liabilities [A]
5
8
—
—
13
Share-based compensation expense
511
498
—
—
1,009
Net (gain) loss on debt securities and
other investments [B]
42
3
—
—
45
Net (gain) loss on executive deferred
compensation plan assets [A]
(4
)
(7
)
—
—
(11
)
Income tax effects and adjustments [C]
(208
)
(196
)
—
—
(404
)
Non-GAAP net income (loss)
$
709
$
938
$
—
$
—
$
1,647
GAAP diluted net income (loss) per
share
$
0.70
$
1.67
$
—
$
—
$
2.36
Amortization of acquired technology
0.13
0.13
—
—
0.26
Amortization of other acquired intangible
assets
0.42
0.42
—
—
0.85
Restructuring
0.03
0.01
—
—
0.05
Net (gain) loss on executive deferred
compensation plan liabilities [A]
0.02
0.03
—
—
0.05
Share-based compensation expense
1.80
1.76
—
—
3.56
Net (gain) loss on debt securities and
other investments [B]
0.15
0.01
—
—
0.16
Net (gain) loss on executive deferred
compensation plan assets [A]
(0.02
)
(0.02
)
—
—
(0.04
)
Income tax effects and adjustments [C]
(0.73
)
(0.69
)
—
—
(1.43
)
Non-GAAP diluted net income (loss) per
share
$
2.50
$
3.32
$
—
$
—
$
5.82
Shares used in GAAP diluted per share
calculations
283
283
—
—
283
Shares used in non-GAAP diluted per
share calculations
283
283
—
—
283
[A]
During the first quarter of fiscal 2025,
we began to exclude from non-GAAP measures both the gains and
losses on executive deferred compensation plan liabilities, and the
related gains and losses on executive deferred compensation plan
assets. Prior periods have not been reclassified as the amounts are
not material.
[B]
During the three months ended October 31,
2024, we recognized a $42 million net loss on other long-term
investments.
[C]
As discussed in “About Non-GAAP Financial
Measures - Income Tax Effects and Adjustments” following Table E,
our long-term non-GAAP tax rate eliminates the effects of
non-recurring and period-specific items. Income tax adjustments
consist primarily of the tax impact of the non-GAAP pre-tax
adjustments and tax benefits related to share-based
compensation.
See “About Non-GAAP Financial Measures”
immediately following Table E for information on these measures,
the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons
management uses each measure and excludes the specified amounts in
arriving at each non-GAAP financial measure.
TABLE B2
INTUIT INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP
FINANCIAL MEASURES
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2024
Q1
Q2
Q3
Q4
Full Year
GAAP operating income (loss)
$
307
$
369
$
3,105
$
(151
)
$
3,630
Amortization of acquired technology
38
36
36
36
146
Amortization of other acquired intangible
assets
120
120
120
123
483
Restructuring [A]
—
—
—
223
223
Professional fees for business
combinations
—
—
—
5
5
Share-based compensation expense
495
475
451
494
1,915
Non-GAAP operating income
(loss)
$
960
$
1,000
$
3,712
$
730
$
6,402
GAAP net income (loss)
$
241
$
353
$
2,389
$
(20
)
$
2,963
Amortization of acquired technology
38
36
36
36
146
Amortization of other acquired intangible
assets
120
120
120
123
483
Restructuring [A]
—
—
—
223
223
Professional fees for business
combinations
—
—
—
5
5
Share-based compensation expense
495
475
451
494
1,915
Net (gain) loss on debt securities and
other investments
1
(3
)
1
1
—
Loss on disposal of a business
1
—
9
(1
)
9
Income tax effects and adjustments [B]
(198
)
(235
)
(202
)
(298
)
(933
)
Non-GAAP net income (loss)
$
698
$
746
$
2,804
$
563
$
4,811
GAAP diluted net income (loss) per
share
$
0.85
$
1.25
$
8.42
$
(0.07
)
$
10.43
Amortization of acquired technology
0.13
0.13
0.13
0.13
0.51
Amortization of other acquired intangible
assets
0.42
0.42
0.42
0.43
1.70
Restructuring [A]
—
—
—
0.79
0.79
Professional fees for business
combinations
—
—
—
0.02
0.02
Share-based compensation expense
1.75
1.67
1.59
1.74
6.75
Net (gain) loss on debt securities and
other investments
0.01
(0.01
)
—
—
—
Loss on disposal of a business
0.01
—
0.03
—
0.03
Income tax effects and adjustments [B]
(0.70
)
(0.83
)
(0.71
)
(1.05
)
(3.29
)
Non-GAAP diluted net income (loss) per
share
$
2.47
$
2.63
$
9.88
$
1.99
$
16.94
Shares used in GAAP diluted per share
calculations
283
284
284
280
284
Shares used in non-GAAP diluted per
share calculations
283
284
284
283
284
[A]
Restructuring charges for the three and
twelve months ended July 31, 2024 includes $25 million in
share-based compensation expense. See "About Non-GAAP Financial
Measures" for further information on restructuring charges.
[B]
As discussed in "About Non-GAAP Financial
Measures - Income Tax Effects and Adjustments" following Table E,
our long-term non-GAAP tax rate eliminates the effects of
non-recurring and period-specific items. Income tax adjustments
consist primarily of the tax impact of the non-GAAP pre-tax
adjustments and tax benefits related to share-based
compensation.
See “About Non-GAAP Financial Measures”
immediately following Table E for information on these measures,
the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons
management uses each measure and excludes the specified amounts in
arriving at each non-GAAP financial measure.
TABLE C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions)
(Unaudited)
January 31,
2025
July 31,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
2,435
$
3,609
Investments
24
465
Accounts receivable, net
1,017
457
Notes receivable held for investment,
net
1,376
779
Notes receivable held for sale
14
3
Income taxes receivable
90
78
Prepaid expenses and other current
assets
845
366
Current assets before funds receivable and
amounts held for customers
5,801
5,757
Funds receivable and amounts held for
customers
3,334
3,921
Total current assets
9,135
9,678
Long-term investments
88
131
Property and equipment, net
992
1,009
Operating lease right-of-use assets
518
411
Goodwill
13,841
13,844
Acquired intangible assets, net
5,505
5,820
Long-term deferred income tax assets
934
698
Other assets
669
541
Total assets
$
31,682
$
32,132
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Short-term debt
$
500
$
499
Accounts payable
1,038
721
Accrued compensation and related
liabilities
623
921
Deferred revenue
1,025
872
Other current liabilities
659
557
Current liabilities before funds payable
and amounts due to customers
3,845
3,570
Funds payable and amounts due to
customers
3,334
3,921
Total current liabilities
7,179
7,491
Long-term debt
5,760
5,539
Operating lease liabilities
573
458
Other long-term obligations
221
208
Total liabilities
13,733
13,696
Stockholders’ equity
17,949
18,436
Total liabilities and stockholders’
equity
$
31,682
$
32,132
TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
January 31,
2025
January 31,
2024
Cash flows from operating
activities:
Net income
$
668
$
594
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
86
69
Amortization of acquired intangible
assets
314
314
Non-cash operating lease cost
37
43
Share-based compensation expense
1,009
970
Deferred income taxes
(227
)
(310
)
Other
99
55
Total adjustments
1,318
1,141
Originations and purchases of loans held
for sale
—
(96
)
Sales and principal repayments of loans
held for sale
—
76
Changes in operating assets and
liabilities:
Accounts receivable
(560
)
(522
)
Income taxes receivable
(13
)
(97
)
Prepaid expenses and other assets
(208
)
(4
)
Accounts payable
319
151
Accrued compensation and related
liabilities
(300
)
(119
)
Deferred revenue
154
(37
)
Income taxes payable
22
(697
)
Operating lease liabilities
(46
)
(33
)
Other liabilities
77
159
Total changes in operating assets and
liabilities
(555
)
(1,199
)
Net cash provided by operating
activities
1,431
516
Cash flows from investing
activities:
Purchases of corporate and customer fund
investments
(321
)
(92
)
Sales of corporate and customer fund
investments
133
490
Maturities of corporate and customer fund
investments
637
456
Purchases of property and equipment
(64
)
(147
)
Originations and purchases of loans held
for investment
(1,825
)
(1,140
)
Sales of loans originally classified as
held for investment
246
—
Principal repayments of loans held for
investment
924
709
Other
(407
)
(32
)
Net cash provided by (used in)
investing activities
(677
)
244
Cash flows from financing
activities:
Proceeds from issuance of long-term debt,
net of discount and issuance costs
—
3,956
Repayments of debt
—
(4,200
)
Proceeds from borrowings under unsecured
revolving credit facility
—
100
Repayments on borrowings under unsecured
revolving credit facility
—
(100
)
Proceeds from borrowings under secured
revolving credit facilities
219
95
Repayments on borrowings under secured
revolving credit facilities
—
(25
)
Proceeds from issuance of stock under
employee stock plans
175
169
Payments for employee taxes withheld upon
vesting of restricted stock units
(436
)
(430
)
Cash paid for purchases of treasury
stock
(1,274
)
(1,135
)
Dividends and dividend rights paid
(596
)
(516
)
Net change in funds receivable and funds
payable and amounts due to customers
(583
)
2,921
Other
(4
)
(2
)
Net cash provided by (used in)
financing activities
(2,499
)
833
Effect of exchange rates on cash, cash
equivalents, restricted cash, and restricted cash equivalents
(12
)
(4
)
Net increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
(1,757
)
1,589
Cash, cash equivalents, restricted cash,
and restricted cash equivalents at beginning of period
7,099
2,852
Cash, cash equivalents, restricted
cash, and restricted cash equivalents at end of period
$
5,342
$
4,441
Reconciliation of cash, cash equivalents,
restricted cash, and restricted cash equivalents reported within
the condensed consolidated balance sheets to the total amounts
reported on the condensed consolidated statements of cash flows
Cash and cash equivalents
$
2,435
$
1,474
Restricted cash and restricted cash
equivalents included in funds receivable and amounts held for
customers
2,907
2,967
Total cash, cash equivalents,
restricted cash, and restricted cash equivalents at end of
period
$
5,342
$
4,441
Supplemental schedule of non-cash
investing activities:
Transfers of loans originated or purchased
as held for investment to held for sale
$
248
$
—
TABLE E
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING
GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE,
OPERATING INCOME, AND EPS
(In millions, except per share
amounts)
(Unaudited)
Forward-Looking
Guidance
GAAP
Range of
Estimate
Non-GAAP
Range of
Estimate
From
To
Adjmts
From
To
Three Months Ending April 30,
2025
Revenue
$
7,550
$
7,600
$
—
$
7,550
$
7,600
Operating income
$
3,456
$
3,476
$
624
[a]
$
4,080
$
4,100
Diluted net income per share
$
9.22
$
9.28
$
1.67
[b]
$
10.89
$
10.95
Twelve Months Ending July 31,
2025
Revenue
$
18,160
$
18,347
$
—
$
18,160
$
18,347
Operating income
$
4,649
$
4,724
$
2,592
[c]
$
7,241
$
7,316
Diluted net income per share
$
12.34
$
12.54
$
6.82
[d]
$
19.16
$
19.36
See “About Non-GAAP Financial Measures”
immediately following Table E for information on these measures,
the items excluded from the most directly comparable GAAP measures
in arriving at non-GAAP financial measures, and the reasons
management uses each measure and excludes the specified amounts in
arriving at each non-GAAP financial measure.
[a]
Reflects estimated adjustments for
share-based compensation expense of approximately $466 million;
amortization of other acquired intangible assets of approximately
$121 million; and amortization of acquired technology of
approximately $37 million.
[b]
Reflects estimated adjustments in item
[a], income taxes related to these adjustments, and other income
tax effects related to the use of the non-GAAP tax rate.
[c]
Reflects estimated adjustments for
share-based compensation expense of approximately $1.9 billion;
amortization of other acquired intangible assets of approximately
$482 million; amortization of acquired technology of approximately
$148 million; restructuring charges of approximately $13 million;
and net losses on executive deferred compensation plan liabilities
of $13 million.
[d]
Reflects estimated adjustments in item
[c], income taxes related to these adjustments, other income tax
effects related to the use of the non-GAAP tax rate, and
adjustments for a net loss on other long-term investments.
INTUIT INC. ABOUT NON-GAAP FINANCIAL
MEASURES
The accompanying press release dated February 25, 2025 contains
non-GAAP financial measures. Table B1, Table B2, and Table E
reconcile the non-GAAP financial measures in that press release to
the most directly comparable financial measures prepared in
accordance with Generally Accepted Accounting Principles (GAAP).
These non-GAAP financial measures include non-GAAP operating income
(loss), non-GAAP net income (loss), and non-GAAP net income (loss)
per share.
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. These non-GAAP financial measures
do not reflect a comprehensive system of accounting, differ from
GAAP measures with the same names, and may differ from non-GAAP
financial measures with the same or similar names that are used by
other companies.
We compute non-GAAP financial measures using the same consistent
method from quarter to quarter and year to year. We may consider
whether other significant items that arise in the future should be
excluded from our non-GAAP financial measures. Beginning in the
first quarter of fiscal 2025, we exclude from our non-GAAP measures
gains and losses from the revaluation of our executive deferred
compensation plan liabilities, and the related gains and losses on
our executive deferred compensation plan assets. Prior periods have
not been reclassified as amounts are immaterial.
We exclude the following items from all of our non-GAAP
financial measures:
- Amortization of acquired technology
- Amortization of other acquired intangible assets
- Restructuring charges
- Share-based compensation expense
- Gains and losses on executive deferred compensation plan
liabilities
- Goodwill and intangible asset impairment charges
- Gains and losses on disposals of businesses and long-lived
assets
- Professional fees and transaction costs for business
combinations
We also exclude the following items from non-GAAP net income
(loss) and diluted net income (loss) per share:
- Gains and losses on debt securities and other investments
- Gains and losses on executive deferred compensation plan
assets
- Income tax effects and adjustments
- Discontinued operations
We believe these non-GAAP financial measures provide meaningful
supplemental information regarding Intuit’s operating results
primarily because they exclude amounts that we do not consider part
of ongoing operating results when planning and forecasting and when
assessing the performance of the organization, our individual
operating segments, or our senior management. Segment managers are
not held accountable for share-based compensation expense,
amortization, restructuring, or the other excluded items and,
accordingly, we exclude these amounts from our measures of segment
performance. We believe our non-GAAP financial measures also
facilitate the comparison by management and investors of results
for current periods and guidance for future periods with results
for past periods.
The following are descriptions of the items we exclude from our
non-GAAP financial measures.
Amortization of acquired technology and amortization of other
acquired intangible assets. When we acquire a business in a
business combination, we are required by GAAP to record the fair
values of the intangible assets of the business and amortize them
over their useful lives. Amortization of acquired technology in
cost of revenue includes amortization of software and other
technology assets of acquired businesses. Amortization of other
acquired intangible assets in operating expenses includes
amortization of assets such as customer lists and trade names.
Restructuring charges. This consists of costs incurred as a
direct result of discrete strategic restructuring actions,
including, but not limited to severance and other one-time
termination benefits, and other costs, which are different in terms
of size, strategic nature, and frequency than ongoing productivity
and business improvements.
Share-based compensation expense. This consists of non-cash
expenses for stock options, restricted stock units, and our
Employee Stock Purchase Plan. When considering the impact of equity
awards, we place greater emphasis on overall shareholder dilution
rather than the accounting charges associated with those
awards.
Gains and losses on executive deferred compensation plan
liabilities. We exclude from our non-GAAP financial measures gains
and losses on the revaluation of our executive deferred
compensation plan liabilities.
Goodwill and intangible asset impairment charges. We exclude
from our non-GAAP financial measures non-cash charges to adjust the
carrying values of goodwill and other acquired intangible assets to
their estimated fair values.
Gains and losses on disposals of businesses and long-lived
assets. We exclude from our non-GAAP financial measures gains and
losses on disposals of businesses and long-lived assets because
they are unrelated to our ongoing business operating results.
Professional fees and transaction costs for business
combinations. We exclude from our non-GAAP financial measures the
professional fees we incur to complete business combinations. These
include investment banking, legal, and accounting fees.
Gains and losses on debt securities and other investments. We
exclude from our non-GAAP financial measures credit losses on
available-for-sale debt securities and gains and losses on other
investments.
Gains and losses on executive deferred compensation plan assets.
We exclude from our non-GAAP financial measures gains and losses on
the revaluation of our executive deferred compensation plan
assets.
Income tax effects and adjustments. We use a long-term non-GAAP
tax rate for evaluating operating results and for planning,
forecasting, and analyzing future periods. This long-term non-GAAP
tax rate excludes the income tax effects of the non-GAAP pre-tax
adjustments described above, and eliminates the effects of
non-recurring and period specific items which can vary in size and
frequency. Based on our long-term projections, we are using a
long-term non-GAAP tax rate of 24% for fiscal 2024 and fiscal 2025.
This long-term non-GAAP tax rate could be subject to change for
various reasons including significant acquisitions, changes in our
geographic earnings mix, or fundamental tax law changes in major
jurisdictions in which we operate. We will evaluate this long-term
non-GAAP tax rate on an annual basis and whenever any significant
events occur which may materially affect this rate.
Operating results and gains and losses on the sale of
discontinued operations. From time to time, we sell or otherwise
dispose of selected operations as we adjust our portfolio of
businesses to meet our strategic goals. In accordance with GAAP, we
segregate the operating results of discontinued operations as well
as gains and losses on the sale of these discontinued operations
from continuing operations on our GAAP statements of operations but
continue to include them in GAAP net income or loss and net income
or loss per share. We exclude these amounts from our non-GAAP
financial measures.
The reconciliations of the forward-looking non-GAAP financial
measures to the most directly comparable GAAP financial measures in
Table E include all information reasonably available to Intuit at
the date of this press release. These tables include adjustments
that we can reasonably predict. Events that could cause the
reconciliation to change include acquisitions and divestitures of
businesses, goodwill and other asset impairments, sales of
available-for-sale debt securities and other investments, and
disposals of businesses and long-lived assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225842551/en/
Investors Kim Watkins Intuit Inc. 650-944-3324
kim_watkins@intuit.com
Media Kali Fry Intuit Inc. 650-944-3036
kali_fry@intuit.com
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