Intuit(INTU)2023-11-27 16:00Financial Performance - Total net revenue for the three months ended October 31, 2023, was 2,597 million in the same period of 2022[11]. - Service revenue increased to 2,155 million year-over-year[11]. - Operating income rose significantly to 76 million in the prior year, reflecting a 303.9% increase[11]. - Net income for the quarter was 40 million in the same quarter of 2022, representing a 502.5% growth[11]. - Basic net income per share increased to 0.14 in the same period last year[11]. - Total segment operating income rose to 1,342 million in the same quarter of 2022, marking a 25.1% increase[137]. - Small Business & Self-Employed segment revenue reached 1,988 million in the prior year[137]. - QuickBooks Online Accounting revenue increased to 668 million in the previous year[137]. - Net income for the first quarter of fiscal 2024 increased by 241 million, with diluted net income per share rising to 0.14[162]. Assets and Liabilities - Total current assets as of October 31, 2023, were 5,557 million at the end of July 2023[15]. - Total assets increased to 27,780 million in the previous quarter[15]. - Total liabilities rose to 10,511 million as of July 31, 2023[15]. - Cash and cash equivalents totaled 2.848 billion as of July 31, 2023, indicating a decrease of 39.2%[55]. - The carrying value of long-term investments on the balance sheet was 105 million as of July 31, 2023[51]. - The total funds receivable and amounts held for customers increased to 420 million as of July 31, 2023[63]. Cash Flow and Investments - Total cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period was 2.140 billion at the end of the same period last year, indicating a year-over-year increase of 77.4%[19]. - The company reported a net cash used in operating activities of 328 million net cash provided in Q1 2023[18]. - The company experienced a net cash provided by investing activities of 256 million in Q1 2023[18]. - The company repurchased 510 million in the same quarter last year, marking an increase of 14.5%[18]. Revenue Recognition - Revenue recognized from deferred revenue during the three months ended October 31, 2023, was 535 million in the same period of 2022, reflecting a growth of 19.3%[38]. - Total net revenue for the first quarter of fiscal 2024 increased by 2.978 billion compared to the same quarter of fiscal 2023[160]. - Online Ecosystem revenue grew by 20% in the first quarter of fiscal 2024, with QuickBooks Online Accounting revenue increasing by 19%[172]. Shareholder Returns - Dividends declared were 261 million for the quarter, compared to 225 million in the same quarter last year[18]. - During the three months ended October 31, 2023, the company repurchased 1.2 million shares for 2.3 billion authorized for future repurchases[108]. Strategic Initiatives - The company expects to continue investing significantly in product development and marketing to drive future growth[9]. - Intuit is focusing on five strategic priorities, including the application of AI to enhance customer experiences and the development of an open platform for partnerships[148][149]. - The company is investing in security measures and has received ISO 27001 certification for part of its systems to combat increasing fraudulent activities[155]. Tax and Compliance - The effective tax rate for the three months ended October 31, 2023, was approximately 9%, with an effective rate of 24% excluding discrete tax items[102]. - Intuit recognized excess tax benefits on share-based compensation of $28 million for the three months ended October 31, 2023[101]. - The company has not recognized any material changes to its unrecognized tax benefits during the three months ended October 31, 2023, and does not expect significant fluctuations in the next 12 months[106]. Market and Customer Base - No customer accounted for 10% or more of total net revenue in the three months ended October 31, 2023, indicating a diversified customer base[40]. - Total international net revenue accounted for approximately 10% of consolidated net revenue for both the three months ended October 31, 2023, and 2022[132].