Intuit Reports Strong Fourth Quarter and Full Year Results; Sets Fiscal 2025 Guidance With Double Digit Revenue and Earnings Growth

Full year revenue grew 13 percent, Small Business and Self-Employed Group revenue grew 19 percent

MOUNTAIN VIEW, Calif.: Intuit Inc. (Nasdaq: INTU) the global financial technology platform that makes TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced financial results for the fourth quarter and full fiscal year 2024, which ended July 31, 2024.

“We delivered very strong results for the fourth quarter and full year, and made meaningful progress with our AI-driven expert platform strategy that positions the company for durable growth in the future,” said Sasan Goodarzi, Intuit's chief executive officer. “Our strategy and five Big Bets are solving our customers’ biggest problems as we deliver on our mission to power prosperity for consumers, and small and mid-market businesses.”

Financial Highlights

For the full year, Intuit:

• Grew total revenue to $16.3 billion, up 13 percent year-over-year.
• Increased combined platform revenue, which includes the Small Business and Self-Employed Group Online Ecosystem, TurboTax Online and Credit Karma, 14 percent to $12.5 billion.
• Grew Small Business and Self-Employed Group revenue 19 percent and Online Ecosystem revenue 20 percent.
• Grew Consumer Group revenue 7 percent to $4.4 billion.
• Increased Credit Karma revenue 5 percent to $1.7 billion.
• Grew GAAP operating income 16 percent to $3.6 billion, including a restructuring charge of $223 million recognized in the fourth quarter related to the organizational changes the company announced in July.
• Increased non-GAAP operating income 16 percent to $6.4 billion.
• Grew GAAP earnings per share 24 percent to $10.43, also including the restructuring charge.
• Increased non-GAAP earnings per share 18 percent to $16.94.

For the fourth quarter, Intuit:

• Grew total revenue 17 percent to $3.2 billion.
• Increased Small Business and Self-Employed Group revenue 20 percent to $2.6 billion and Online Ecosystem revenue 18 percent.
• Grew Credit Karma revenue 14 percent to $485 million.
• Reported Consumer Group revenue of $113 million, down 12 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 Fiscal Year 2024 Full-year Results

Snapshot of Fourth-quarter Fiscal Year 2024 Results

Business Segment Results

Small Business and Self-Employed Group

Small Business and Self-Employed Group revenue grew 20 percent for the quarter and 19 percent for the year. Online Ecosystem revenue grew 18 percent for the quarter and 20 percent for the year.

• QuickBooks Online accounting revenue grew 17 percent for the quarter and 19 percent for the year. Growth in the quarter was driven by customer growth, higher effective prices, and mix shift.
• Online services revenue grew 19 percent for the quarter and 21 percent for the year. Growth in the quarter was driven by growth in payments, payroll, capital, and Mailchimp.
• Total international online revenue grew 11 percent for the quarter and 13 percent for the year on a constant currency basis.

In August 2024, Intuit renamed the Small Business and Self-Employed Group to the Global Business Solutions Group. This new name better aligns with the global reach of the Mailchimp and QuickBooks platform, the company's focus on serving both small and mid-market businesses, and its vision to become the end-to-end platform that customers use to grow and run their business.

Consumer and ProTax Groups

Consumer Group revenue grew 7 percent for the year to $4.4 billion.

• TurboTax Live revenue grew 17 percent for the year, representing approximately 30 percent of total Consumer Group revenue, and TurboTax Live customers grew 11 percent.
• TurboTax Online units declined 2 percent and total TurboTax units declined 1 percent for the year, due to share loss with customers who pay nothing or have a lower average revenue per return.

ProTax Group revenue grew 7 percent for the year.

Credit Karma

Credit Karma revenue grew 5 percent to $1.7 billion for the year. Credit Karma revenue grew 14 percent for the quarter to $485 million, driven by strength in auto insurance, personal loans, credit cards, and Credit Karma Money.

Capital Allocation Summary

The company:

• Reported a total cash and investments balance of approximately $4.1 billion and total debt of $6.0 billion as of July 31.
• Repurchased $2.0 billion of stock during fiscal year 2024. The Board approved a new $3.0 billion repurchase authorization, giving the company a total authorization of $4.9 billion to repurchase shares.
• Received Board approval for a quarterly dividend of $1.04 per share, payable on October 18, 2024. This represents a 16 percent increase versus last year.

Forward-looking Guidance

Intuit announced 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 expects the following segment revenue results for fiscal year 2025:

• Small Business and Self-Employed 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.

GAAP guidance reflects an expected $24 million restructuring charge related to the reorganization the company announced in July.

Intuit also announced guidance for the first quarter of fiscal year 2025, which ends Oct. 31. The company expects:

• Revenue growth of approximately 5 to 6 percent, including:
  • Small Business and Self-Employed Group revenue growth of 6 to 7 percent. The company expects online ecosystem revenue growth, the company's growth catalyst, to accelerate to approximately 19 percent in the first quarter of fiscal 2025. The company expects desktop ecosystem revenue to decline approximately 20 percent in the first quarter of fiscal 2025, but return to growth in the second quarter. The first quarter desktop growth outlook reflects changes the company made to its QuickBooks desktop offerings in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates. The company expects these changes to lower revenue in the first quarter of fiscal 2025 by approximately $160 million. This includes approximately $50 million that was recognized in the first three quarters of fiscal 2024, approximately $60 million recognized in the fourth quarter of fiscal 2024, and approximately $50 million that the company expects to shift from the first quarter of fiscal 2025 to later quarters in fiscal 2025.
  • Credit Karma revenue to grow in the first quarter.
  • Consumer Group and ProTax revenue to decline in the first quarter, as the company laps the period a year ago that included the extended California tax filing deadline.
• GAAP earnings per share of $0.61 to $0.66.
• Non-GAAP diluted earnings per share of $2.33 to $2.38.

GAAP guidance reflects an expected $19 million restructuring charge that the company expects to incur in the first quarter related to the reorganization the company announced in July.

Conference Call Details

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on Aug. 22. The conference call can be heard live at https://investors.intuit.com/news-events/ir-calendar. 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 800-938-1595, or 402-220-1544 from international locations. There is no passcode required. The audio webcast will remain available on Intuit’s website for one week after the conference call.

Investor Day 2024

Intuit will host its annual Investor Day on Sept. 26 at 8:00 a.m. Pacific time, at its headquarters in Mountain View, CA and it can be viewed live at https://investors.intuit.com/news-events/ir-calendar. The half-day event will include presentations from Sasan Goodarzi, chief executive officer, Sandeep Aujla, chief financial officer, and other leaders.

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 contain forward-looking statements, including expectations regarding: forecasts and timing of growth and future financial results of Intuit and its reporting segments; the impact of macroeconomic conditions on our business, segments and products; Intuit’s prospects for the business in fiscal 2025 and beyond; Intuit’s growth outside the US; timing and growth of revenue from current or future products, features, and services; innovation across our ecosystem; demand for our products; customer growth and retention; average revenue per return and average revenue per customer; Intuit's corporate tax rate; changes to our products, including the impact of AI; the amount and timing of any future dividends or share repurchases; our capital structure; availability of our offerings; our expectations regarding the timing and costs associated with our plan of reorganization (“Plan”); and the impact of acquisitions and 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 or geopolitical conditions, which have caused significant global economic instability and uncertainty. Given these risks and uncertainties, persons receiving 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 businesses; 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 ESG and DEI practices; risks associated with acquisition and divestiture activity; the issuance of equity or incurrence of debt to fund an acquisition or for general business purposes; cybersecurity incidents (including those affecting the third parties we rely on); customer 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; and our ability to successfully market our offerings; our ability to realize the anticipated benefits of the Plan; risks related to the preliminary nature of the estimate of the charges to be incurred in connection with 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 2023 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. First 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.