Intuit Stories Third Quarter Outcomes and Raises Full 12 months Income and Working Revenue Steering

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Intuit Inc. (Nasdaq: INTU), the worldwide know-how platform that makes TurboTax, QuickBooks, Mint, Credit score Karma and Mailchimp, introduced monetary outcomes for the third quarter of fiscal 2022, which ended April 30.

“We’re assured in our technique and execution throughout the corporate as we develop into the worldwide AI-driven professional platform powering the prosperity of shoppers and small companies,” stated Sasan Goodarzi, Intuit’s chief govt officer. “We had one other sturdy quarter, and we’re elevating Intuit’s income and working revenue steering for fiscal yr 2022.”

Monetary Highlights

For the third quarter, Intuit:

  • Grew whole income to $5.6 billion, up 35 %, together with the addition of Mailchimp. Excluding Mailchimp, whole income grew 29 %.
  • Grew Client Group income 32 % to $3.2 billion, reflecting the sooner tax submitting deadline this yr.
  • Elevated Small Enterprise and Self-Employed Group income 42 % to $1.7 billion. Excluding Mailchimp income of $257 million, Small Enterprise and Self-Employed Group income grew 20 %.
  • Grew On-line Ecosystem income 67 % to $1.2 billion. Excluding Mailchimp, On-line Ecosystem income grew 31 %.
  • Elevated Credit score Karma income 48 % to $468 million, a quarterly file for the enterprise.

Except in any other case famous, all progress charges consult with the present interval versus the comparable prior-year interval, and the enterprise metrics and related progress charges consult with worldwide enterprise metrics.

Snapshot of Third-quarter Outcomes

 

GAAP

Non-GAAP

 

Q3

FY22

Q3

FY21

Change

Q3

FY22

Q3

FY21

Change

Income

$5,632

$4,173

35%

$5,632

$4,173

35%

Working Revenue

$2,395

$1,914

25%

$2,904

$2,201

32%

Earnings Per Share

$6.28

$5.30

18%

$7.65

$6.07

26%

{Dollars} are in hundreds of thousands, besides earnings per share. See “About Non-GAAP Monetary Measures” under for extra data relating to monetary measures not ready in accordance with Usually Accepted Accounting Rules (GAAP).

Third quarter outcomes embrace a $141 million one-time cost associated to the corporate’s settlement with the attorneys normal of the 50 states and the District of Columbia, entered into on Could 4, 2022. This cost is mirrored within the firm’s GAAP and non-GAAP working revenue, impacting progress by 7 and 6 factors, respectively. The cost impacted third quarter GAAP and non-GAAP earnings per share by $0.37 and $0.38, respectively. Extra element might be discovered on Type 8-Okay, filed with SEC on Could 4, 2022.

Enterprise Phase Outcomes

Small Enterprise and Self-Employed Group

  • QuickBooks On-line Accounting income grew 32 % within the quarter, pushed primarily by greater efficient costs, buyer progress and mix-shift.
  • On-line Companies income grew to $614 million, up 121 %, pushed by the addition of Mailchimp, and progress in QuickBooks On-line payroll and QuickBooks On-line funds. Excluding Mailchimp income of $257 million, on-line companies income grew 28 %.
  • Whole worldwide on-line income grew 221 % on a continuing forex foundation, and 29 % excluding Mailchimp.

Credit score Karma

  • Credit score Karma income progress within the quarter was pushed by power in private loans and bank cards.

Client Group

For the complete fiscal yr, Intuit expects:

  • TurboTax share of whole IRS returns to increase roughly 1 level and TurboTax share of the DIY class to extend 2 factors, each excluding customers of the TurboTax Free File providing within the prior yr durations.
  • Whole TurboTax models to develop 1 %, and TurboTax On-line paying models to develop 8 %. Slower progress was pushed by weaker than anticipated whole IRS returns, which the corporate expects to say no 3 %.
  • TurboTax Dwell income to develop roughly 30 % to $1 billion and TurboTax Dwell clients to develop roughly 20 %. Final yr, TurboTax Dwell buyer progress considerably benefited from the introduction of the free Fundamental supply.
  • Clients in under-penetrated segments – together with Latinx, self-employed and buyers – to develop double digits in whole, and the variety of clients with crypto transactions to be up greater than 4x versus final yr.

Except in any other case famous above, all progress charges consult with Intuit’s expectations for the tax submitting season by means of July 31, 2022 in comparison with the prior season by means of July 31, 2021.

Intuit plans to supply a TurboTax federal tax unit comparability in its fourth quarter 2022 earnings launch.

ProConnect Group

  • ProConnect Group skilled tax income grew to $258 million within the quarter, up from $235 million the prior yr.

Capital Allocation Abstract

Within the third quarter the corporate:

  • Reported a complete money and investments steadiness of roughly $3.9 billion as of April 30.
  • Repurchased $489 million of shares, with $2.0 billion remaining on the corporate’s share repurchase authorization.
  • Obtained Board approval for a quarterly dividend of $0.68 per share, payable July 18, 2022. This represents a 15 % improve in comparison with the identical interval final yr.

Ahead-looking Steering

Intuit up to date steering for the complete fiscal yr 2022. The up to date steering consists of the one-time $141 million cost associated to the corporate’s settlement with 50 state attorneys normal and the District of Columbia. The corporate now expects:

  • Income of $12.633 billion to $12.674 billion, progress of roughly 31 to 32 %, together with Mailchimp as of November 1 and a full yr of Credit score Karma, up from earlier steering for progress of 26 to twenty-eight %.
  • Excluding Mailchimp, income progress of 23 to 24 %, up from earlier steering for progress of 18 to twenty %.
  • GAAP working revenue of $2.499 billion to $2.519 billion, progress of roughly flat to 1 %, up from earlier steering of a decline of roughly 2 % to flat. This steering displays sturdy enterprise efficiency, partially offset by the $141 million impression of the state attorneys normal settlement. Excluding the impression of the state attorneys normal settlement, GAAP working revenue progress can be roughly 5.6 factors greater.
  • Non-GAAP working revenue of $4.451 billion to $4.471 billion, progress of roughly 28 %, up from earlier steering for progress of 25 to 27 %. This steering displays sturdy enterprise efficiency, partially offset by the $141 million impression of the state attorneys normal settlement. Excluding the impression of the state attorneys normal settlement, non-GAAP working revenue progress can be roughly 4.0 factors greater.
  • GAAP diluted earnings per share of $6.95 to $7.01, a decline of roughly 8 to 7 %, down from earlier steering of a decline of seven to five %, reflecting sturdy enterprise efficiency, offset by an approximate $0.37 earnings per share impression of the state attorneys normal settlement and an anticipated GAAP tax fee of roughly 20 % in fiscal 2022, up from 18 % beforehand.
  • Non-GAAP diluted earnings per share of $11.68 to $11.74, progress of roughly 20 to 21 %, up from earlier steering for progress of 18 to twenty %, reflecting sturdy enterprise efficiency, partially offset by an approximate $0.38 earnings per share impression of the state attorneys normal settlement.

The corporate additionally up to date phase income steering. For fiscal 2022, the corporate now expects:

  • Small Enterprise and Self-Employed Group: progress of 36 to 37 %, up from earlier steering of 32 to 33 %. This displays 20 % natural progress, up from earlier steering for progress of 16 to 17 %. The corporate expects a $765 million to $770 million contribution from the Mailchimp acquisition.
  • Client Group: progress of 10 %, versus earlier steering for progress of 10 to 11 %. This displays weaker than anticipated whole IRS returns, anticipated to say no 3 %.
  • ProConnect Group: progress of 4 to five %, up from earlier steering for progress of 1 to 2 %.
  • Credit score Karma: income of $1.795 billion to $1.805 billion, up from earlier steering of $1.540 billion to $1.565 billion.

Intuit introduced steering for the fourth quarter of fiscal yr 2022, which ends July 31. The corporate expects:

  • Income to say no roughly 8 to 9 %, reflecting the sooner tax submitting deadline this yr versus final yr.
  • GAAP loss per share of $0.53 to $0.47.
  • Non-GAAP diluted earnings per share of $0.94 to $1.00.

​​Client Group Administration Succession Plan

Greg Johnson, normal supervisor of the Client Group, might be stepping down from the position on Could 31, 2022 to develop into the CEO of McAfee. Varun Krishna, senior vice chairman and normal supervisor of progress merchandise, Client Group, will succeed Johnson as normal supervisor of the Client Group. Krishna, a seasoned govt and chief, has spent over seven years main product and progress initiatives inside the Client Group, which have supported the acceleration of Intuit’s TurboTax enterprise. “I wish to thank Greg for his numerous contributions, congratulate him on his new position as CEO of McAfee and welcome Varun as our new GM of the Client Group,” stated Goodarzi.

Convention Name Particulars

Intuit executives will focus on the monetary outcomes on a convention name at 1:30 p.m. PT on Could 24. The convention name might be heard dwell at http://buyers.intuit.com/Occasions/default.aspx. Ready remarks for the decision might be out there on Intuit’s web site after the decision ends.

Replay Info

A replay of the convention name might be out there for one week by calling 855-859-2056, or 404-537-3406 from worldwide places. The entry code for this name is 7437368. The audio webcast will stay out there on Intuit’s web site for one week after the convention name.

About Intuit

Intuit is the worldwide know-how platform that helps shoppers and small companies overcome their most vital monetary challenges. Serving greater than 100 million clients worldwide with TurboTax, QuickBooks, Mint, Credit score Karma, and Mailchimp, we consider that everybody ought to have the chance to prosper. We by no means cease working to seek out new, modern methods to make that attainable. Please go to us for the newest details about Intuit, our services and products, and discover us on social.

About Non-GAAP Monetary Measures

This press launch and the accompanying tables embrace non-GAAP monetary measures. For an outline of those non-GAAP monetary measures, together with the explanations administration makes use of every measure, and reconciliations of those non-GAAP monetary measures to probably the most instantly comparable monetary measures ready in accordance with Usually Accepted Accounting Rules, please see the part of the accompanying tables titled “About Non-GAAP Monetary Measures” in addition to the associated Desk B1, Desk B2, and Desk E. A duplicate of the press launch issued by Intuit as we speak might be discovered on the investor relations web page of Intuit’s web site.

Cautions About Ahead-looking Statements

This press launch comprises forward-looking statements, together with expectations relating to: the scale, elements and our share of the tax preparation software program area; the timing of when people will file their tax returns; forecasts and timing of progress and future monetary outcomes of Intuit and its reporting segments; Intuit’s prospects for the enterprise in fiscal 2022 and past; timing and progress of income from present or future services and products; buyer progress and common income per return; Intuit’s company tax fee; the quantity and timing of any future dividends or share repurchases; and the impression of acquisitions and different strategic selections on our enterprise; in addition to the entire statements beneath the heading “Ahead-looking Steering.”

As a result of these forward-looking statements contain dangers and uncertainties, there are vital elements that would trigger our precise outcomes to vary materially from the expectations expressed within the forward-looking statements. These dangers and uncertainties could also be amplified by the COVID-19 pandemic, which has induced vital world financial instability and uncertainty. These elements embrace, with out limitation, the next: our capability to compete efficiently; potential governmental encroachment in our tax companies; our capability to adapt to technological change; our capability to foretell shopper habits; our reliance on third-party mental property; our capability to guard our mental property rights; any hurt to our popularity; dangers related to acquisition and divestiture exercise, together with the mixing of Credit score Karma and Mailchimp; the issuance of fairness or incurrence of debt to fund an acquisition; our cybersecurity incidents (together with these affecting the third events we depend on); buyer considerations about privateness and cybersecurity incidents; fraudulent actions by third events utilizing our choices; our failure to course of transactions successfully; interruption or failure of our data know-how; our capability to keep up vital third-party enterprise relationships; our capability to draw and retain expertise; any deficiency within the high quality or accuracy of our merchandise (together with the recommendation given by specialists on our platform); any delays in product launches; difficulties in processing or submitting buyer tax submissions; dangers related to worldwide operations; adjustments to public coverage, legal guidelines or rules affecting our companies; litigation by which we’re concerned; the seasonal nature of our tax enterprise; adjustments in tax charges and tax reform laws; world financial situations (together with, with out limitation, inflation); publicity to credit score, counterparty and different dangers in offering capital to companies; amortization of acquired intangible belongings and impairment expenses; our capability to repay or in any other case adjust to the phrases of our excellent debt; our capability to repurchase shares or distribute dividends; volatility of our inventory value; and our capability to efficiently market our choices. Extra particulars about these and different dangers which will impression our enterprise are included in our Type 10-Okay for fiscal 2021 and in our different SEC filings. You possibly can find these experiences by means of our web site at http://buyers.intuit.com. Fiscal 2022 full-year and This autumn steering speaks solely as of the date it was publicly issued by Intuit. Different forward-looking statements signify the judgment of the administration of Intuit as of the date of this presentation. We don’t undertake any obligation to replace any forward-looking assertion or different data on this presentation.

TABLE A

INTUIT INC.

GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Three Months Ended

 

9 Months Ended

 

April 30,

2022

 

April 30,

2021

 

April 30,

2022

 

April 30,

2021

Web income:

 

 

 

 

 

 

 

Product

$

554

 

 

$

533

 

 

$

1,476

 

 

$

1,395

 

Service and different

 

5,078

 

 

 

3,640

 

 

 

8,836

 

 

 

5,677

 

Whole web income

 

5,632

 

 

 

4,173

 

 

 

10,312

 

 

 

7,072

 

Prices and bills:

 

 

 

 

 

 

 

Price of income:

 

 

 

 

 

 

 

Price of product income

 

18

 

 

 

16

 

 

 

53

 

 

 

53

 

Price of service and different income

 

764

 

 

 

565

 

 

 

1,654

 

 

 

1,130

 

Amortization of acquired know-how

 

42

 

 

 

14

 

 

 

99

 

 

 

35

 

Promoting and advertising

 

1,227

 

 

 

857

 

 

 

2,719

 

 

 

1,799

 

Analysis and growth

 

600

 

 

 

464

 

 

 

1,720

 

 

 

1,157

 

Basic and administrative

 

465

 

 

 

289

 

 

 

1,126

 

 

 

708

 

Amortization of different acquired intangible belongings

 

121

 

 

 

54

 

 

 

295

 

 

 

92

 

Whole prices and bills [A]

 

3,237

 

 

 

2,259

 

 

 

7,666

 

 

 

4,974

 

Working revenue

 

2,395

 

 

 

1,914

 

 

 

2,646

 

 

 

2,098

 

Curiosity expense

 

(21

)

 

 

(7

)

 

 

(49

)

 

 

(22

)

Curiosity and different revenue (loss), web

 

(1

)

 

 

14

 

 

 

44

 

 

 

77

 

Revenue earlier than revenue taxes

 

2,373

 

 

 

1,921

 

 

 

2,641

 

 

 

2,153

 

Revenue tax provision [B]

 

579

 

 

 

457

 

 

 

519

 

 

 

471

 

Web revenue

$

1,794

 

 

$

1,464

 

 

$

2,122

 

 

$

1,682

 

 

 

 

 

 

 

 

 

Fundamental web revenue per share

$

6.35

 

 

$

5.36

 

 

$

7.60

 

 

$

6.26

 

Shares utilized in primary per share calculations

 

282

 

 

 

273

 

 

 

279

 

 

 

269

 

 

 

 

 

 

 

 

 

Diluted web revenue per share

$

6.28

 

 

$

5.30

 

 

$

7.48

 

 

$

6.20

 

Shares utilized in diluted per share calculations

 

286

 

 

 

276

 

 

 

284

 

 

 

271

 

 

 

 

 

 

 

 

 

Money dividends declared per widespread share

$

0.68

 

 

$

0.59

 

 

$

2.04

 

 

$

1.77

 

See accompanying Notes.

INTUIT INC.

NOTES TO TABLE A

[A]

The next desk summarizes the whole share-based compensation expense that we recorded in working revenue for the durations proven.

 

Three Months Ended

 

9 Months Ended

(in hundreds of thousands)

April 30,

2022

 

April 30,

2021

 

April 30,

2022

 

April 30,

2021

Price of income

$

40

 

$

16

 

$

105

 

$

47

Promoting and advertising

 

85

 

 

51

 

 

232

 

 

127

Analysis and growth

 

138

 

 

82

 

 

379

 

 

187

Basic and administrative

 

83

 

 

69

 

 

246

 

 

148

Whole share-based compensation expense

$

346

 

$

218

 

$

962

 

$

509

[B]

We compute our provision for or profit from revenue taxes by making use of the estimated annual efficient tax fee to revenue or loss from recurring operations and including the consequences of any discrete revenue tax gadgets particular to the interval.

 

For the three and 9 months ended April 30, 2022, we acknowledged extra tax advantages on share-based compensation of $26 million and $135 million, respectively, in our provision for revenue taxes. For the three and 9 months ended April 30, 2021, we acknowledged extra tax advantages on share-based compensation of $13 million and $77 million, respectively, in our provision for revenue taxes.

 

Our efficient tax charges for the three and 9 months ended April 30, 2022 have been roughly 24% and 20%, respectively. Excluding discrete tax gadgets primarily associated to share-based compensation tax advantages talked about above, our efficient tax fee for each durations was roughly 26%. The distinction from the federal statutory fee of 21% was primarily attributable to state revenue taxes and non-deductible share-based compensation, which have been partially offset by the tax profit we acquired from the federal analysis and experimentation credit score.

 

Our efficient tax charges for the three and 9 months ended April 30, 2021 have been roughly 24% and 22%, respectively. Excluding discrete tax gadgets primarily associated to share-based compensation tax advantages talked about above, our efficient tax fee for each durations was roughly 25%. The distinction from the federal statutory fee of 21% was primarily attributable to state revenue taxes, non-deductible share-based compensation and non-deductible transaction prices associated to the Credit score Karma acquisition, which have been partially offset by the tax profit we acquired from the federal analysis and experimentation credit score.

 

Within the present world tax coverage atmosphere, the U.S. and different home and international governments proceed to think about, and in some circumstances enact, adjustments in company tax legal guidelines. As adjustments happen, we account for finalized laws within the interval of enactment.

TABLE B1

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Fiscal 2022

 

Q1

 

Q2

 

Q3

 

This autumn

 

12 months to Date

GAAP working revenue (loss)

$

195

 

 

$

56

 

 

$

2,395

 

 

$

 

$

2,646

 

Amortization of acquired know-how

 

15

 

 

 

42

 

 

 

42

 

 

 

 

 

99

 

Amortization of different acquired intangible belongings

 

53

 

 

 

121

 

 

 

121

 

 

 

 

 

295

 

Skilled charges for enterprise combos

 

12

 

 

 

57

 

 

 

 

 

 

 

 

69

 

Share-based compensation expense

 

280

 

 

 

336

 

 

 

346

 

 

 

 

 

962

 

Non-GAAP working revenue (loss)

$

555

 

 

$

612

 

 

$

2,904

 

 

$

 

$

4,071

 

 

 

 

 

 

 

 

 

 

 

GAAP web revenue (loss)

$

228

 

 

$

100

 

 

$

1,794

 

 

$

 

$

2,122

 

Amortization of acquired know-how

 

15

 

 

 

42

 

 

 

42

 

 

 

 

 

99

 

Amortization of different acquired intangible belongings

 

53

 

 

 

121

 

 

 

121

 

 

 

 

 

295

 

Skilled charges for enterprise combos

 

12

 

 

 

57

 

 

 

 

 

 

 

 

69

 

Share-based compensation expense

 

280

 

 

 

336

 

 

 

346

 

 

 

 

 

962

 

Web (achieve) loss on debt securities and different investments [A]

 

(42

)

 

 

 

 

 

(7

)

 

 

 

 

(49

)

Revenue tax results and changes [B]

 

(123

)

 

 

(210

)

 

 

(111

)

 

 

 

 

(444

)

Non-GAAP web revenue (loss)

$

423

 

 

$

446

 

 

$

2,185

 

 

$

 

$

3,054

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted web revenue (loss) per share

$

0.82

 

 

$

0.35

 

 

$

6.28

 

 

$

 

$

7.48

 

Amortization of acquired know-how

 

0.06

 

 

 

0.14

 

 

 

0.15

 

 

 

 

 

0.35

 

Amortization of different acquired intangible belongings

 

0.19

 

 

 

0.42

 

 

 

0.42

 

 

 

 

 

1.04

 

Skilled charges for enterprise combos

 

0.04

 

 

 

0.20

 

 

 

 

 

 

 

 

0.24

 

Share-based compensation expense

 

1.01

 

 

 

1.17

 

 

 

1.21

 

 

 

 

 

3.39

 

Web (achieve) loss on debt securities and different investments [A]

 

(0.15

)

 

 

 

 

 

(0.02

)

 

 

 

 

(0.17

)

Revenue tax results and changes [B]

 

(0.44

)

 

 

(0.73

)

 

 

(0.39

)

 

 

 

 

(1.56

)

Non-GAAP diluted web revenue (loss) per share

$

1.53

 

 

$

1.55

 

 

$

7.65

 

 

$

 

$

10.77

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in GAAP diluted per share calculation

 

277

 

 

 

287

 

 

 

286

 

 

 

 

 

284

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in non-GAAP diluted per share calculation

 

277

 

 

 

287

 

 

 

286

 

 

 

 

 

284

 

[A]

Throughout the three months ended October 31, 2021, we acknowledged $39 million of web features on different long-term investments.

[B]

As mentioned in “About Non-GAAP Monetary Measures – Revenue Tax Results and Changes” following Desk E, our long-term non-GAAP tax fee eliminates the consequences of non-recurring and period-specific gadgets. Revenue tax changes consist primarily of the tax impression of the non-GAAP pre-tax changes and the surplus tax advantages on share-based compensation.

See “About Non-GAAP Monetary Measures” instantly following Desk E for data on these measures, the gadgets excluded from probably the most instantly comparable GAAP measures in arriving at non-GAAP monetary measures, and the explanations administration makes use of every measure and excludes the required quantities in arriving at every non-GAAP monetary measure.

TABLE B2

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Fiscal 2021

 

Q1

 

Q2

 

Q3

 

This autumn

 

Full 12 months

GAAP working revenue (loss)

$

209

 

 

$

(25

)

 

$

1,914

 

 

$

402

 

 

$

2,500

 

Amortization of acquired know-how

 

7

 

 

 

14

 

 

 

14

 

 

 

15

 

 

 

50

 

Amortization of different acquired intangible belongings

 

2

 

 

 

36

 

 

 

54

 

 

 

54

 

 

 

146

 

Skilled charges for enterprise combos

 

5

 

 

 

30

 

 

 

1

 

 

 

 

 

 

36

 

Share-based compensation expense

 

111

 

 

 

180

 

 

 

218

 

 

 

244

 

 

 

753

 

Non-GAAP working revenue (loss)

$

334

 

 

$

235

 

 

$

2,201

 

 

$

715

 

 

$

3,485

 

 

 

 

 

 

 

 

 

 

 

GAAP web revenue (loss)

$

198

 

 

$

20

 

 

$

1,464

 

 

$

380

 

 

$

2,062

 

Amortization of acquired know-how

 

7

 

 

 

14

 

 

 

14

 

 

 

15

 

 

 

50

 

Amortization of different acquired intangible belongings

 

2

 

 

 

36

 

 

 

54

 

 

 

54

 

 

 

146

 

Skilled charges for enterprise combos

 

5

 

 

 

30

 

 

 

1

 

 

 

 

 

 

36

 

Share-based compensation expense

 

111

 

 

 

180

 

 

 

218

 

 

 

244

 

 

 

753

 

Web (achieve) loss on debt securities and different investments

 

(7

)

 

 

(8

)

 

 

 

 

 

 

 

 

(15

)

Different revenue from divested companies [A]

 

 

 

 

(30

)

 

 

 

 

 

 

 

 

(30

)

Revenue tax results and changes [B]

 

(66

)

 

 

(57

)

 

 

(73

)

 

 

(149

)

 

 

(345

)

Non-GAAP web revenue (loss)

$

250

 

 

$

185

 

 

$

1,678

 

 

$

544

 

 

$

2,657

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted web revenue (loss) per share

$

0.75

 

 

$

0.07

 

 

$

5.30

 

 

$

1.37

 

 

$

7.56

 

Amortization of acquired know-how

 

0.03

 

 

 

0.05

 

 

 

0.05

 

 

 

0.06

 

 

 

0.18

 

Amortization of different acquired intangible belongings

 

 

 

 

0.14

 

 

 

0.19

 

 

 

0.20

 

 

 

0.53

 

Skilled charges for enterprise combos

 

0.02

 

 

 

0.11

 

 

 

 

 

 

 

 

 

0.13

 

Share-based compensation expense

 

0.42

 

 

 

0.66

 

 

 

0.79

 

 

 

0.88

 

 

 

2.76

 

Web (achieve) loss on debt securities and different investments

 

(0.03

)

 

 

(0.03

)

 

 

 

 

 

 

 

 

(0.05

)

Different revenue from divested companies [A]

 

 

 

 

(0.11

)

 

 

 

 

 

 

 

 

(0.11

)

Revenue tax results and changes [B]

 

(0.25

)

 

 

(0.21

)

 

 

(0.26

)

 

 

(0.54

)

 

 

(1.26

)

Non-GAAP diluted web revenue (loss) per share

$

0.94

 

 

$

0.68

 

 

$

6.07

 

 

$

1.97

 

 

$

9.74

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in GAAP diluted per share calculation

 

265

 

 

 

273

 

 

 

276

 

 

 

277

 

 

 

273

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in non-GAAP diluted per share calculation

 

265

 

 

 

273

 

 

 

276

 

 

 

277

 

 

 

273

 

[A]

Throughout the three months ended January 31, 2021, we recorded a $30 million achieve from the sale of a word receivable that was beforehand written off.

[B]

As mentioned in “About Non-GAAP Monetary Measures – Revenue Tax Results and Changes” following Desk E, our long-term non-GAAP tax fee eliminates the consequences of non-recurring and period-specific gadgets. Revenue tax changes consist primarily of the tax impression of the non-GAAP pre-tax changes and the surplus tax advantages on share-based compensation.

See “About Non-GAAP Monetary Measures” instantly following Desk E for data on these measures, the gadgets excluded from probably the most instantly comparable GAAP measures in arriving at non-GAAP monetary measures, and the explanations administration makes use of every measure and excludes the required quantities in arriving at every non-GAAP monetary measure.

TABLE C

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In hundreds of thousands)

(Unaudited)

 

 

April 30,

2022

 

July 31,

2021

ASSETS

 

 

 

Present belongings:

 

 

 

Money and money equivalents

$

3,531

 

$

2,562

Investments

 

373

 

 

1,308

Accounts receivable, web

 

738

 

 

391

Revenue taxes receivable

 

6

 

 

123

Pay as you go bills and different present belongings

 

671

 

 

316

Present belongings earlier than funds held for purchasers

 

5,319

 

 

4,700

Funds held for purchasers

 

539

 

 

457

Whole present belongings

 

5,858

 

 

5,157

 

 

 

 

Lengthy-term investments

 

98

 

 

43

Property and gear, web

 

858

 

 

780

Working lease right-of-use belongings

 

425

 

 

380

Goodwill

 

13,731

 

 

5,613

Acquired intangible belongings, web

 

7,224

 

 

3,252

Lengthy-term deferred revenue taxes

 

8

 

 

8

Different belongings

 

312

 

 

283

Whole belongings

$

28,514

 

$

15,516

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Present liabilities:

 

 

 

Accounts payable

$

900

 

$

623

Accrued compensation and associated liabilities

 

543

 

 

530

Deferred income

 

741

 

 

684

Revenue taxes payable

 

198

 

 

3

Different present liabilities

 

670

 

 

358

Present liabilities earlier than buyer fund deposits

 

3,052

 

 

2,198

Buyer fund deposits

 

539

 

 

457

Whole present liabilities

 

3,591

 

 

2,655

 

 

 

 

Lengthy-term debt

 

6,853

 

 

2,034

Lengthy-term deferred revenue tax liabilities

 

608

 

 

525

Working lease liabilities

 

415

 

 

380

Different long-term obligations

 

86

 

 

53

Whole liabilities

 

11,553

 

 

5,647

 

 

 

 

Stockholders’ fairness

 

16,961

 

 

9,869

Whole liabilities and stockholders’ fairness

$

28,514

 

$

15,516

TABLE D

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In hundreds of thousands)

(Unaudited)

 

 

 

 

 

9 Months Ended

 

April 30,

2022

 

April 30,

2021

Money flows from working actions:

 

 

 

Web revenue

$

2,122

 

 

$

1,682

 

Changes to reconcile web revenue to web money offered by working actions:

 

 

 

Depreciation

 

142

 

 

 

122

 

Amortization of acquired intangible belongings

 

396

 

 

 

128

 

Non-cash working lease price

 

62

 

 

 

45

 

Share-based compensation expense

 

962

 

 

 

509

 

Deferred revenue taxes

 

106

 

 

 

69

 

Different

 

(21

)

 

 

(49

)

Whole changes

 

1,647

 

 

 

824

 

Originations of loans held on the market

 

 

 

 

(41

)

Sale and principal funds of loans held on the market

 

 

 

 

144

 

Modifications in working belongings and liabilities:

 

 

 

Accounts receivable

 

(323

)

 

 

(267

)

Revenue taxes receivable

 

117

 

 

 

68

 

Pay as you go bills and different belongings

 

(88

)

 

 

(7

)

Accounts payable

 

86

 

 

 

194

 

Accrued compensation and associated liabilities

 

(392

)

 

 

(122

)

Deferred income

 

(2

)

 

 

(13

)

Revenue taxes payable

 

195

 

 

 

206

 

Working lease liabilities

 

(62

)

 

 

(45

)

Different liabilities

 

250

 

 

 

85

 

Whole adjustments in working belongings and liabilities

 

(219

)

 

 

99

 

Web money offered by working actions

 

3,550

 

 

 

2,708

 

Money flows from investing actions:

 

 

 

Purchases of company and buyer fund investments

 

(583

)

 

 

(904

)

Gross sales of company and buyer fund investments

 

1,448

 

 

 

152

 

Maturities of company and buyer fund investments

 

177

 

 

 

401

 

Purchases of property and gear

 

(168

)

 

 

(101

)

Acquisitions of companies, web of money acquired

 

(5,682

)

 

 

(3,064

)

Originations of time period loans to small companies

 

(613

)

 

 

(135

)

Principal repayments of time period loans from small companies

 

320

 

 

 

86

 

Different

 

(9

)

 

 

37

 

Web money utilized in investing actions

 

(5,110

)

 

 

(3,528

)

Money flows from financing actions:

 

 

 

Proceeds from issuance of long-term debt

 

4,700

 

 

 

 

Repayments on borrowings beneath unsecured revolving credit score facility

 

 

 

 

(1,000

)

Proceeds from borrowings beneath secured revolving credit score facility

 

122

 

 

 

 

Reimbursement of debt

 

 

 

 

(338

)

Proceeds from issuance of inventory beneath worker inventory plans

 

116

 

 

 

137

 

Funds for worker taxes withheld upon vesting of restricted inventory models

 

(465

)

 

 

(245

)

Money paid for purchases of treasury inventory

 

(1,337

)

 

 

(542

)

Dividends and dividend rights paid

 

(580

)

 

 

(482

)

Web change in buyer fund deposits

 

82

 

 

 

(107

)

Different

 

(9

)

 

 

(2

)

Web money offered by (utilized in) financing actions

 

2,629

 

 

 

(2,579

)

Impact of alternate charges on money, money equivalents, restricted money, and restricted money equivalents

 

(18

)

 

 

14

 

Web improve (lower) in money, money equivalents, restricted money, and restricted money equivalents

 

1,051

 

 

 

(3,385

)

Money, money equivalents, restricted money, and restricted money equivalents at starting of interval

 

2,819

 

 

 

6,697

 

Money, money equivalents, restricted money, and restricted money equivalents at finish of interval

$

3,870

 

 

$

3,312

 

Reconciliation of money, money equivalents, restricted money, and restricted money equivalents reported inside the condensed consolidated steadiness sheets to the whole quantities reported on the condensed consolidated statements of money flows

 

 

 

Money and money equivalents

$

3,531

 

 

$

3,164

 

Restricted money and restricted money equivalents included in funds held for purchasers

 

339

 

 

 

148

 

Whole money, money equivalents, restricted money, and restricted money equivalents at finish of interval

$

3,870

 

 

$

3,312

 

 

 

 

 

Supplemental schedule of non-cash investing actions:

 

 

 

Issuance of widespread inventory in a enterprise mixture

$

6,316

 

 

$

3,798

 

TABLE E

INTUIT INC.

RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Ahead-Wanting Steering

 

GAAP

Vary of Estimate

 

 

 

Non-GAAP

Vary of Estimate

 

From

 

To

 

Adjmts

 

From

 

To

Three Months Ending July 31, 2022

 

 

 

 

 

 

 

 

 

Income

$

2,321

 

 

$

2,362

 

 

$

 

$

2,321

 

$

2,362

Working revenue (loss)

$

(147

)

 

$

(127

)

 

$

527

[a]

$

380

 

$

400

Diluted revenue (loss) per share

$

(0.53

)

 

$

(0.47

)

 

$

1.47

[b]

$

0.94

 

$

1.00

 

 

 

 

 

 

 

 

 

 

Twelve Months Ending July 31, 2022

 

 

 

 

 

 

 

 

 

Income

$

12,633

 

 

$

12,674

 

 

$

 

$

12,633

 

$

12,674

Working revenue

$

2,499

 

 

$

2,519

 

 

$

1,952

[c]

$

4,451

 

$

4,471

Diluted earnings per share

$

6.95

 

 

$

7.01

 

 

$

4.73

[d]

$

11.68

 

$

11.74

See “About Non-GAAP Monetary Measures” instantly following Desk E for data on these measures, the gadgets excluded from probably the most instantly comparable GAAP measures in arriving at non-GAAP monetary measures, and the explanations administration makes use of every measure and excludes the required quantities in arriving at every non-GAAP monetary measure.

[a]

Displays estimated changes for share-based compensation expense of roughly $367 million; amortization of acquired know-how of roughly $39 million; and amortization of different acquired intangible belongings of roughly $121 million.

[b]

Displays estimated changes in merchandise [a], revenue taxes associated to those changes, and different revenue tax results associated to using the non-GAAP tax fee.

[c]

Displays estimated changes for share-based compensation expense of roughly $1.3 billion; skilled charges for enterprise combos of roughly $69 million; amortization of acquired know-how of roughly $138 million; and amortization of different acquired intangibles of roughly $416 million.

[d]

Displays estimated changes in merchandise [c], revenue taxes associated to those changes, different revenue tax results associated to using the non-GAAP tax fee, and $47 million of web features on different long-term investments.

INTUIT INC.

ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press launch dated Could 24, 2022 comprises non-GAAP monetary measures. Desk B1, Desk B2, and Desk E reconcile the non-GAAP monetary measures in that press launch to probably the most instantly comparable monetary measures ready in accordance with Usually Accepted Accounting Rules (GAAP). These non-GAAP monetary measures embrace non-GAAP working revenue (loss), non-GAAP web revenue (loss) and non-GAAP web revenue (loss) per share.

Non-GAAP monetary measures shouldn’t be thought-about as an alternative to, or superior to, measures of economic efficiency ready in accordance with GAAP. These non-GAAP monetary measures don’t mirror a complete system of accounting, differ from GAAP measures with the identical names, and will differ from non-GAAP monetary measures with the identical or comparable names which might be utilized by different corporations.

We compute non-GAAP monetary measures utilizing the identical constant technique from quarter to quarter and yr to yr. We could take into account whether or not different vital gadgets that come up sooner or later needs to be excluded from our non-GAAP monetary measures.

We exclude the next gadgets from all of our non-GAAP monetary measures:

  • Share-based compensation expense
  • Amortization of acquired know-how
  • Amortization of different acquired intangible belongings
  • Goodwill and intangible asset impairment expenses
  • Positive factors and losses on disposals of companies and long-lived belongings
  • Skilled charges and transaction prices for enterprise combos

We additionally exclude the next gadgets from non-GAAP web revenue (loss) and diluted web revenue (loss) per share:

  • Positive factors and losses on debt and fairness securities and different investments
  • Revenue tax results and changes
  • Discontinued operations

We consider these non-GAAP monetary measures present significant supplemental data relating to Intuit’s working outcomes primarily as a result of they exclude quantities that we don’t take into account a part of ongoing working outcomes when planning and forecasting and when assessing the efficiency of the group, our particular person working segments, or our senior administration. Phase managers should not held accountable for share-based compensation expense, amortization, or the opposite excluded gadgets and, accordingly, we exclude these quantities from our measures of phase efficiency. We consider our non-GAAP monetary measures additionally facilitate the comparability by administration and buyers of outcomes for present durations and steering for future durations with outcomes for previous durations.

The next are descriptions of the gadgets we exclude from our non-GAAP monetary measures.

Share-based compensation bills. These encompass non-cash bills for inventory choices, restricted inventory models, and our Worker Inventory Buy Plan. When contemplating the impression of fairness awards, we place higher emphasis on total shareholder dilution fairly than the accounting expenses related to these awards.

Amortization of acquired know-how and amortization of different acquired intangible belongings. Once we purchase a enterprise in a enterprise mixture, we’re required by GAAP to file the truthful values of the intangible belongings of the enterprise and amortize them over their helpful lives. Amortization of acquired know-how in price of income consists of amortization of software program and different know-how belongings of acquired companies. Amortization of different acquired intangible belongings in working bills consists of amortization of belongings equivalent to buyer lists, covenants to not compete, and commerce names.

Goodwill and intangible asset impairment expenses. We exclude from our non-GAAP monetary measures non-cash expenses to regulate the carrying values of goodwill and different acquired intangible belongings to their estimated truthful values.

Positive factors and losses on disposals of companies and long-lived belongings. We exclude from our non-GAAP monetary measures features and losses on disposals of companies and long-lived belongings as a result of they’re unrelated to our ongoing enterprise working outcomes.

Skilled charges and transaction prices for enterprise combos. We exclude from our non-GAAP monetary measures the skilled charges we incur to finish enterprise combos. These embrace funding banking, authorized, and accounting charges.

Positive factors and losses on debt securities and different investments. We exclude from our non-GAAP monetary measures credit score losses on available-for-sale debt securities and features and losses on different investments.

Revenue tax results and changes. We use a long-term non-GAAP tax fee for evaluating working outcomes and for planning, forecasting, and analyzing future durations. This long-term non-GAAP tax fee excludes the revenue tax results of the non-GAAP pre-tax changes described above, and eliminates the consequences of non-recurring and interval particular gadgets which may fluctuate in measurement and frequency. Based mostly on our present long-term projections, we’re utilizing a long-term non-GAAP tax fee of 24% for fiscal 2021 and financial 2022. This long-term non-GAAP tax fee might be topic to alter for numerous causes together with vital acquisitions, adjustments in our geographic earnings combine or elementary tax legislation adjustments in main jurisdictions by which we function. We’ll consider this long-term non-GAAP tax fee on an annual foundation and every time any vital occasions happen which can materially have an effect on this fee.

Working outcomes and features and losses on the sale of discontinued operations. Every now and then, we promote or in any other case get rid of chosen operations as we modify our portfolio of companies to fulfill our strategic objectives. In accordance with GAAP, we segregate the working outcomes of discontinued operations in addition to features and losses on the sale of those discontinued operations from persevering with operations on our GAAP statements of operations however proceed to incorporate them in GAAP web revenue or loss and web revenue or loss per share. We exclude these quantities from our non-GAAP monetary measures.

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