Intuit(INTU) - 2025 Q2 - Quarterly Results

Revenue Growth - Total revenue for Q2 FY25 reached $4.0 billion, representing a 17% increase year-over-year[2] - Global Business Solutions Group revenue grew to $2.7 billion, up 19%, with Online Ecosystem revenue increasing to $2.0 billion, up 21%[7] - Credit Karma revenue surged 36% to $511 million, driven by strong performance in credit cards, personal loans, and auto insurance[8] - The company expects full fiscal year 2025 revenue guidance of $18.160 billion to $18.347 billion, reflecting growth of approximately 12% to 13%[10] - The company projects revenue for the three months ending April 30, 2025, to be between $7,550 million and $7,600 million[48] Earnings Performance - GAAP operating income rose to $593 million, a 61% increase, while Non-GAAP operating income grew to $1.3 billion, up 26%[4] - GAAP diluted earnings per share increased to $1.67, up 34%, and Non-GAAP diluted earnings per share grew to $3.32, up 26%[4] - GAAP diluted earnings per share for the full year is projected to be between $12.34 and $12.54, indicating growth of approximately 18% to 20%[10] - Operating income for the twelve months ending July 31, 2025, is estimated to be between $4,649 million and $4,724 million[48] - Diluted net income per share for the twelve months ending July 31, 2025, is projected to be between $12.34 and $12.54[48] Shareholder Returns - Intuit plans to repurchase $3.6 billion worth of shares, having already repurchased $721 million in Q2 FY25[10] - A quarterly dividend of $1.04 per share has been approved, representing a 16% increase compared to the same period last year[10] Tax and Compensation - The company recognized excess tax benefits on share-based compensation of $29 million for the three months ended January 31, 2025, compared to $56 million for the same period in 2024[25] - The effective tax rate for the three months ended January 31, 2025, was approximately 17%, while the effective tax rate excluding discrete tax items was around 24%[26] - Total share-based compensation expense for the six months ended January 31, 2025, was $1,009 million, an increase from $970 million in the same period of 2024[25] - The company’s share-based compensation expense for the fiscal year 2024 totaled $1,915 million, reflecting a consistent investment in employee compensation[37] - The long-term non-GAAP tax rate is set at 24% for fiscal years 2024 and 2025, subject to change due to significant acquisitions or tax law changes[63] Financial Position - Total assets decreased from $32,132 million as of July 31, 2024, to $31,682 million as of January 31, 2025, representing a decline of 1.4%[41] - Net income for the six months ended January 31, 2025, was $668 million, an increase of 12.5% compared to $594 million for the same period in 2024[43] - Cash flows from operating activities increased significantly to $1,431 million for the six months ended January 31, 2025, compared to $516 million for the same period in 2024[43] - Total current liabilities decreased from $7,491 million as of July 31, 2024, to $7,179 million as of January 31, 2025, a reduction of 4.2%[41] - The company reported a net cash used in financing activities of $2,499 million for the six months ended January 31, 2025, compared to a net cash provided of $833 million in the same period in 2024[44] Non-GAAP Measures - Non-GAAP operating income for the fiscal year 2025 was projected to be $2,213 million, compared to $6,402 million for the full fiscal year 2024[32] - The company reported a GAAP operating income of $864 million for the fiscal year 2025, down from $3,630 million in fiscal year 2024[32] - Non-GAAP financial measures exclude credit losses on available-for-sale debt securities and gains and losses on other investments[62] - Operating results from discontinued operations are segregated from continuing operations in GAAP statements but included in GAAP net income[64] - The reconciliation of forward-looking non-GAAP financial measures to GAAP measures includes adjustments that can be reasonably predicted, such as acquisitions and divestitures[65] Future Outlook - The company anticipates continued double-digit revenue growth and margin expansion for the fiscal year[7] - The company continues to monitor changes in corporate tax laws that may impact its financial reporting and tax strategy[28]