Intuit(INTU) - 2025 Q2 - Quarterly Report

Financial Performance - Total net revenue for Q2 Fiscal 2025 reached $3,963 million, a 17$3,386 million in Q2 Fiscal 2024[11] - Service revenue contributed $3,249 million, up 20$2,693 million year-over-year, while product and other revenue slightly increased to $714 million from$693 million[11] - Operating income for the quarter was $593 million, representing a 60$369 million in the same quarter last year[11] - Net income for Q2 Fiscal 2025 was $471 million, a 33$353 million in Q2 Fiscal 2024[11] - Basic net income per share rose to $1.68, up from$1.26 in the prior year, while diluted net income per share increased to $1.67 from$1.25[11] - For the six months ended January 31, 2025, net income increased to $668 million, compared to$594 million for the same period in 2024, reflecting a growth of approximately 12.5%[20] - The company reported a comprehensive income of $461 million for the three months ended January 31, 2025, compared to$371 million for the same period in 2024, indicating an increase of approximately 24.3%[18] - For the three months ended January 31, 2025, net income was $471 million, compared to$353 million for the same period in 2024, representing a 33.5% increase[39] - Basic net income per share for the three months ended January 31, 2025, was $1.68, up from$1.26 in the same period of 2024, reflecting a 33.3% increase[39] Assets and Liabilities - Total current assets decreased to $9,135 million from$9,678 million as of July 31, 2024, primarily due to a reduction in cash and cash equivalents[15] - Total assets decreased to $31,682 million from$32,132 million, reflecting a decline in investments and cash reserves[15] - Total liabilities remained relatively stable at $13,733 million compared to$13,696 million in the previous period[15] - Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period were $5,342 million, up from$4,441 million at the end of January 31, 2024, representing a year-over-year increase of approximately 20.3%[21] - The balance of common stock increased to $20,995 million as of January 31, 2025, from$19,739 million as of January 31, 2024, reflecting an increase of about 6.4%[18] - The balance of retained earnings increased to $17,059 million as of January 31, 2025, from$15,140 million as of January 31, 2024, representing a growth of about 12.7%[18] Cash Flow and Investments - Total cash provided by operating activities for the six months ended January 31, 2025, was $1,431 million, significantly higher than$516 million for the same period in 2024[20] - Total adjustments to reconcile net income to net cash provided by operating activities amounted to $1,318 million for the six months ended January 31, 2025, compared to$1,141 million for the same period in 2024, indicating an increase of about 15.5%[20] - The company repurchased $1,274 million in treasury stock during the six months ended January 31, 2025, compared to$1,135 million in the same period of 2024, marking an increase of approximately 12.3%[21] - The company declared dividends totaling $596 million for the six months ended January 31, 2025, compared to$516 million for the same period in 2024, reflecting an increase of approximately 15.5%[21] - The company reported share-based compensation expense of $1,009 million for the six months ended January 31, 2025, compared to$970 million for the same period in 2024, indicating an increase of about 4%[20] Revenue Segments - The Global Business Solutions segment reported net revenue of $2,671 million for the three months ended January 31, 2025, up 19$2,245 million in the same period last year[151] - QuickBooks Online Accounting generated $1,008 million in net revenue for the three months ended January 31, 2025, a 22$826 million in the same period last year[151] - Credit Karma's net revenue increased to $511 million for the three months ended January 31, 2025, compared to$375 million for the same period in 2024, marking a 36% growth[151] - Total service revenue for fiscal 2024 was $13.9 billion, representing 85$350 million, or 21%, in Q2 fiscal 2025 compared to the same period in fiscal 2024[201] Strategic Focus and Future Outlook - The company expects to continue investing significantly in product development and marketing, particularly in artificial intelligence capabilities[9] - Intuit anticipates that total service revenue as a percentage of total revenue will grow over the long term, indicating a strategic focus on service-oriented offerings[9] - The company is evaluating the impact of new accounting standards on its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[43] - The seasonal pattern of revenue is heavily concentrated from November through April, resulting in higher net revenues during the second and third quarters[29] Restructuring and Expenses - The company recorded restructuring costs estimated at approximately $236 million, with a$13 million charge recorded during the six months ended January 31, 2025[152] - Expenses increased due to marketing, outside services, staffing, and share-based compensation, impacting operating income growth[187] - The company reorganized technology and customer success functions across segments to enhance overall platform management[27] Credit and Financing - The company has commitments to sell a minimum of approximately $8 million monthly and$350 million cumulatively in participation interests in unsecured term loans to small businesses over four years, with remaining monthly commitments totaling $225 million through July 31, 2027[78] - The 2024 Credit Facility allows for an increase in commitments up to$1 billion and includes a $500 million sublimit for swingline loans and a$250 million sublimit for letters of credit[95] - As of January 31, 2025, the company was compliant with all covenants of the 2024 Credit Facility, with no amounts outstanding and no interest paid during the six months ended January 31, 2025[96]