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Intuit Reports Strong Second Quarter Results and Reiterates Full Year Guidance

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 2...

Business Wire

Global Business Solutions Group Revenue Grew 19 percent

MOUNTAIN VIEW, Calif.: 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

 

 

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