On August 22, 2024, Intuit Inc (INTU, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full fiscal year 2024, which ended on July 31, 2024. Intuit, a leading provider of small-business accounting software (QuickBooks), personal tax solutions (TurboTax), and professional tax offerings (Lacerte), reported robust financial performance, exceeding analyst expectations.
Fiscal Year 2024 Performance
Intuit Inc (INTU, Financial) reported a 13% increase in total revenue, reaching $16.3 billion for the full fiscal year 2024. The Small Business and Self-Employed Group led the growth with a 19% increase in revenue, while the Online Ecosystem revenue grew by 20%. The Consumer Group and Credit Karma also contributed to the overall growth, with revenues increasing by 7% and 5%, respectively.
Key Financial Metrics
For the full year, Intuit reported:
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $16.3 billion | $14.4 billion | 13% |
| GAAP Operating Income | $3.6 billion | $3.1 billion | 16% |
| Non-GAAP Operating Income | $6.4 billion | $5.5 billion | 16% |
| GAAP EPS | $10.43 | $8.42 | 24% |
| Non-GAAP EPS | $16.94 | $14.40 | 18% |
Quarterly Highlights
For the fourth quarter, Intuit reported a 17% increase in total revenue, reaching $3.2 billion. The Small Business and Self-Employed Group saw a 20% increase in revenue, while Credit Karma revenue grew by 14%. However, Consumer Group revenue declined by 12% for the quarter.
Segment Performance
The Small Business and Self-Employed Group, which includes QuickBooks, Mailchimp, and other services, was a significant driver of growth. QuickBooks Online accounting revenue grew by 17% for the quarter and 19% for the year, driven by customer growth and higher effective prices. Online services revenue also saw substantial growth, driven by payments, payroll, capital, and Mailchimp.
Intuit's Consumer Group, which includes TurboTax, reported a 7% increase in revenue for the year. TurboTax Live revenue grew by 17%, representing approximately 30% of the total Consumer Group revenue. However, TurboTax Online units declined by 2%, and total TurboTax units declined by 1% for the year.
Financial Achievements and Challenges
Intuit's financial achievements are significant for the software industry, showcasing the company's ability to drive growth through its diversified product offerings. The increase in GAAP and non-GAAP operating income highlights the company's operational efficiency and strategic investments.
However, the decline in Consumer Group revenue for the quarter and the slight decrease in TurboTax units indicate potential challenges in maintaining market share in the highly competitive tax software market. The restructuring charge of $223 million recognized in the fourth quarter also reflects the company's ongoing efforts to optimize its organizational structure.
Capital Allocation and Future Guidance
Intuit reported a total cash and investments balance of approximately $4.1 billion and total debt of $6.0 billion as of July 31, 2024. The company repurchased $2.0 billion of stock during fiscal year 2024 and received Board approval for a new $3.0 billion repurchase authorization. Additionally, the Board approved a quarterly dividend of $1.04 per share, representing a 16% increase from the previous year.
Looking ahead, Intuit provided guidance for fiscal year 2025, expecting revenue growth of approximately 12 to 13 percent, GAAP operating income growth of approximately 28 to 30 percent, and non-GAAP diluted earnings per share growth of approximately 13 to 14 percent.
We delivered very strong results for the fourth quarter and full year, and made meaningful progress with our AI-driven expert platform strategy that positions the company for durable growth in the future," said Sasan Goodarzi, Intuit's chief executive officer.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Intuit Inc for further details.
