Intuit(US:INTU)2024-02-21 16:00Financial Performance - Total net revenue for the three months ended January 31, 2024, was $3,386 million, a 11.4% increase from $3,041 million in the same period of 2023[10]. - Service revenue reached $2,693 million for the three months ended January 31, 2024, up 11.4% from $2,418 million year-over-year[10]. - Net income for the three months ended January 31, 2024, was $353 million, compared to $168 million for the same period in 2023, representing a 110.7% increase[10]. - Basic net income per share increased to $1.26 for the three months ended January 31, 2024, from $0.60 in the same period of 2023[10]. - For the three months ended January 31, 2024, Intuit reported a comprehensive income of $371 million, compared to $192 million for the same period in the previous year, reflecting an increase of approximately 93%[15]. - The net income for the six months ended January 31, 2024, was $594 million, up from $208 million in the same period last year, representing a growth of about 185%[19]. - Total net revenue for the second quarter of fiscal 2024 increased by $345 million, or 11%, compared to the same quarter of fiscal 2023, reaching $3.386 billion[171]. - Operating income for the second quarter of fiscal 2024 rose by $99 million, or 37%, to $369 million, driven by increased revenue despite rising expenses[173]. - Net income for the second quarter of fiscal 2024 surged by $185 million, or 110%, to $353 million, with diluted net income per share increasing to $1.25 from $0.60 in the same quarter last year[174]. - Total net revenue for the first six months of fiscal 2024 increased by $726 million, or 13%, compared to the same period of fiscal 2023, totaling $6.364 billion[169]. - Operating income for the first six months of fiscal 2024 increased by $330 million, or 95%, reaching $676 million, reflecting a strong revenue growth[176]. - Net income for the first six months of fiscal 2024 increased by $386 million, or 186%, totaling $594 million, with diluted net income per share rising to $2.10 from $0.73[177]. Assets and Liabilities - Total current assets as of January 31, 2024, were $7,300 million, up from $5,557 million as of July 31, 2023[14]. - Total assets increased to $29,688 million as of January 31, 2024, compared to $27,780 million as of July 31, 2023[14]. - Total liabilities rose to $12,780 million as of January 31, 2024, from $10,511 million as of July 31, 2023[14]. - Intuit's total stockholders' equity as of January 31, 2024, was $16,908 million, a slight decrease from $17,269 million as of July 31, 2023[15]. - The total principal balance of debt was $6 billion as of January 31, 2024, down from $6.13 billion as of July 31, 2023[82]. - The company issued $3.96 billion in senior unsecured notes in September 2023, with $4 billion remaining outstanding as of January 31, 2024[87]. - The company remains compliant with all covenants governing its debt obligations as of January 31, 2024[89]. Cash Flow and Investments - Total cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period reached $4,441 million, compared to $1,549 million at the end of January 31, 2023, indicating a significant increase of approximately 186%[20]. - Intuit's operating cash flow for the six months ended January 31, 2024, was $516 million, down from $612 million in the same period last year, indicating a decrease of about 16%[19]. - The company reported a net cash provided by investing activities of $244 million for the six months ended January 31, 2024, compared to a net cash used of $704 million in the same period last year[19]. Shareholder Returns - The company plans to return excess cash generated by operations to stockholders through stock repurchases and cash dividends[9]. - The company declared dividends of $0.90 per share for the three months ended January 31, 2024, totaling $260 million, compared to $0.78 per share totaling $227 million in the same period last year, representing an increase of approximately 14%[15]. - Cash dividends declared totaled $521 million for the six months ended January 31, 2024, with a quarterly cash dividend of $0.90 per share declared for April 2024[116]. - The company repurchased $1,135 million worth of treasury stock during the six months ended January 31, 2024, compared to $1,017 million in the same period last year, reflecting a rise of approximately 12%[19]. - The company repurchased 2.1 million shares for $1.1 billion during the six months ended January 31, 2024, with an additional $2.3 billion authorized for future repurchases[113]. Revenue Segmentation - Small Business & Self-Employed segment revenue reached $2,245 million, up 18.3% from $1,897 million year-over-year[142]. - The QuickBooks Online Accounting revenue increased to $826 million, a 18.7% rise from $696 million in the prior year[142]. - The Consumer segment revenue was $492 million for the three months ended January 31, 2024, a decrease of 4.7% from $516 million in the same period of 2023[142]. - The Credit Karma segment revenue remained stable at $375 million for both the three months ended January 31, 2024, and 2023[142]. - Service revenue for the Small Business & Self-Employed segment increased by 18% year-over-year, amounting to $1.906 billion in Q2 FY24[185]. - Online Ecosystem revenue rose 21% in Q2 FY24, with Online Services revenue increasing by 24%, primarily due to payroll, payments, and Mailchimp offerings[188]. - QuickBooks Online Accounting revenue grew by 19% in Q2 FY24, attributed to an increase in customers and higher effective prices[188]. - Desktop Ecosystem revenue increased by 10% in Q2 FY24, mainly due to customer growth and price increases in QuickBooks Desktop and Enterprise subscriptions[190]. Operational Insights - The company expects to continue investing significantly in product development and marketing to drive future growth[9]. - Intuit anticipates that total service revenue as a percentage of total revenue will continue to grow[9]. - The company is focusing on AI-driven innovations and partnerships to enhance customer experiences and drive growth[158]. - The company is investing in AI and emerging technologies to enhance customer experience and drive revenue growth, focusing on a comprehensive financial platform with Credit Karma[168]. Legal and Compliance - The company continues to defend its interests in various legal proceedings, including a class action lawsuit and inquiries from the FTC, which could involve significant costs[125]. - The company recorded a one-time charge of $141 million related to a settlement agreement with state attorneys general, which was paid in the quarter ended January 31, 2023[126]. Miscellaneous - No customer accounted for 10% or more of total net revenue in the three or six months ended January 31, 2024, indicating a diversified customer base[41]. - The company reorganized certain technology functions, resulting in a reclassification of expenses totaling $10 million and $19 million from Small Business & Self-Employed segment to other corporate expenses for the three and six months ended January 31, 2023, respectively[26]. - The company has approximately 9,782 thousand non-vested RSUs remaining as of January 31, 2024, down from 11,894 thousand at July 31, 2023[122].