On May 23, 2024, Intuit Inc (INTU, Financial) released its 8-K filing for the third quarter of fiscal 2024, showcasing robust financial performance that surpassed analyst expectations. Intuit, a leading provider of financial software solutions including QuickBooks, TurboTax, and Credit Karma, reported significant growth across its business segments.
Financial Highlights
For the third quarter, Intuit Inc (INTU, Financial) reported:
- Total revenue of $6.7 billion, up 12% year-over-year, exceeding the estimated $6.647 billion.
- GAAP earnings per share (EPS) of $8.42, a 14% increase from the previous year, surpassing the estimated $7.81.
- Non-GAAP EPS of $9.88, up 11% from the prior year.
Segment Performance
Intuit's performance was bolstered by strong results in its key business segments:
- Consumer Group: Revenue grew to $3.7 billion, up 9% year-over-year.
- Small Business and Self-Employed Group: Revenue increased by 18% to $2.4 billion, with Online Ecosystem revenue up 19% to $1.8 billion.
- Credit Karma: Revenue rose 8% to $443 million.
- ProTax Group: Revenue grew 3% to $254 million.
Income Statement Overview
| Metric | Q3 FY24 | Q3 FY23 | Change |
|---|---|---|---|
| Revenue | $6,737 million | $6,018 million | 12% |
| Operating Income | $3,105 million | $2,778 million | 12% |
| GAAP EPS | $8.42 | $7.38 | 14% |
| Non-GAAP EPS | $9.88 | $8.92 | 11% |
Capital Allocation and Guidance
Intuit Inc (INTU, Financial) reported a total cash and investments balance of approximately $4.7 billion and $6.0 billion in debt as of April 30, 2024. The company repurchased $584 million of shares and has $2.1 billion remaining on its share repurchase authorization. Additionally, the Board approved a quarterly dividend of $0.90 per share, a 15% increase from the previous year.
Looking ahead, Intuit raised its full-year guidance, now expecting:
- Revenue of $16.164 billion to $16.200 billion, representing an annual increase of approximately 13%.
- GAAP operating income of $3.815 billion to $3.835 billion, up 21-22%.
- Non-GAAP operating income of $6.360 billion to $6.380 billion, up 16%.
- GAAP diluted EPS of $10.78 to $10.83, up 28-29%.
- Non-GAAP diluted EPS of $16.79 to $16.84, up 17%.
Analysis
Intuit Inc (INTU, Financial)'s strong performance in Q3 FY24 underscores the company's successful execution of its AI-driven strategy and robust growth in its Small Business and Self-Employed Group. The significant increase in revenue and earnings highlights the company's ability to innovate and meet customer needs effectively. However, the company faces challenges such as maintaining its market share in a competitive landscape and managing the impacts of macroeconomic conditions.
Overall, Intuit's financial achievements and raised guidance reflect its solid market position and growth potential, making it an attractive consideration for value investors.
Explore the complete 8-K earnings release (here) from Intuit Inc for further details.
