- Full Year Revenue Growth: 13%
- Operating Margin Expansion: GAAP 40 basis points, Non-GAAP 100 basis points
- EPS Growth: GAAP 24%, Non-GAAP 18%
- Q4 Revenue: $3.2 billion, up 17%
- Q4 GAAP Operating Loss: $151 million
- Q4 Non-GAAP Operating Income: $730 million, up 16%
- Q4 GAAP Diluted Loss Per Share: $0.07
- Q4 Non-GAAP Diluted Earnings Per Share: $1.99, up 21%
- Small Business and Self-Employed Group Revenue Growth: Q4 20%, Full Year 19%
- Online Ecosystem Revenue Growth: Q4 18%, Full Year 20%
- QuickBooks Online Accounting Revenue Growth: Q4 17%, Full Year 19%
- QBO Advanced Customers Growth: 28%
- Total Online Payment Volume Growth: Q4 19%
- Credit Karma Revenue Growth: Q4 14%, Full Year 5%
- Consumer Group Revenue: $4.4 billion, up 7%
- TurboTax Live Revenue Growth: 17%
- ProTax Group Revenue: $599 million, up 7%
- Cash and Investments: $4.1 billion
- Debt: $6 billion
- Stock Repurchase: $255 million in Q4, $2 billion in fiscal 2024
- Quarterly Dividend: $1.4 per share, 16% increase
- Fiscal 2025 Revenue Guidance: $18.16 billion to $18.347 billion, growth of 12% to 13%
- Fiscal 2025 GAAP Diluted EPS Guidance: $12.34 to $12.54, growth of 18% to 20%
- Fiscal 2025 Non-GAAP Diluted EPS Guidance: $19.16 to $19.36, growth of 13% to 14%
Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intuit Inc (INTU, Financial) reported a 13% increase in full-year revenue, demonstrating strong growth.
- The company achieved significant progress with its AI-driven expert platform strategy, enhancing customer experiences.
- TurboTax Live revenue grew by 17%, with full-service customers doubling and new customers tripling.
- QuickBooks Live customers more than tripled, indicating strong adoption of AI-powered financial assistance.
- Intuit Inc (INTU) facilitated $2.4 billion in financing through QuickBooks Capital, up 28% year-over-year.
Negative Points
- Intuit Inc (INTU) reported a GAAP operating loss of $151 million in Q4, reflecting a restructuring charge of $223 million.
- GAAP diluted loss per share was $0.07, compared to diluted earnings per share of $0.32 a year ago.
- QBO self-employed customers declined by 14%, impacting overall customer growth.
- The company expects Q1 desktop ecosystem revenue to decline by approximately 20% due to changes in the subscription model.
- Credit Karma's revenue growth was modest at 5% for the full year, indicating slower performance compared to other segments.
Q & A Highlights
Q: Just one question, then Sasan I will focus on small business segment. 19% growth is pretty good in this environment where we are hearing about SMB weakness. But I want to focus on your growth, in '25 -- fiscal '25 and beyond. Now looks like your focus is now driving grow through in our targeting mid-market, you talked about an [NZM] in that. So help us understand how big is that opportunity to expand into a mid-market? And why is this the right time for Intuit to increase focus on mid-market? And is it mostly targeting this your QuickBooks customer base or are you planning to gain share from other vendors?
A: Yeah, Siti, thank you for your question. First of all, I want to start with our focus will continue to be small businesses that are formed and because we want to fundamentally continue to grow with them. With that as context, we've just simply doubled down on our focus on mid-market. And as you know, it's not new. This has been five years in the making. It's one of the five bets that we've declared more than five years ago. But I would just say five years later, Siti, we are just building an incredible amount of momentum. With that as context, let me just now answer your question. One, the way to think about it is we now have a business suite and our business suite provides all the capabilities to -- for a business to be able to grow their customers, manage their customers, be able to manage their cash flow, get their accounting done, all in one place. And with our up really AI powered innovation, and AI powered experts, we really have tilted the professional grade health and services to all of our businesses, and we are now at a place where we are really accelerating on two fronts. One, we are going to go to market as one platform versus pieces and parts to really accelerate services penetration, because of the one thing we continue to hear from businesses is that they want to do everything in one place. And now we have the business suite for them to do everything in one place. Secondarily is our acceleration in mid-market. We're actually excited to announce at Investor Day a platform that will take us even further up market. And that really positions us to not only grow with our customers but to really acquire a new customers. I would just remind us that the majority of mid-market customers are non-consumption. And they pay a lot of money to use multiple different apps, discrete apps that don't talk to each other, Excel spreadsheets, Google sheets, shoe boxes and pain for multiple different bookkeepers marketing agents and ultimately at [Hiltons]. And now we have packaged all of that as one enterprise suite to be able to pursue and accelerate pursuing mid-market customers and our ultimate goal is to go far beyond 10 to 100 employees. And I think this is five years in the making and to round out the answer to your question, this is both focusing on the smaller customers, but we're really doubling down on the larger customers and really being able to penetrate services. And that's really what gives us confidence in the 20% online ecosystem revenue growth at a far bigger scale that you heard from Sandeep, along with our acceleration in Q1.
Q: I wanted to ask about consumer, the guide for the coming year, the updated midterm guide, if you can just walk through a little bit of the puts and, takes, where why was that the right place to start the annual guide, what could drive upside surprise as the tax season progresses? And maybe Sasan, just your view on kind of the macroeconomic backdrop that the consumer guy set against.
A: Yeah, absolutely, Alex, thank you for your question. Let me start with the last part of your question, which is around the macro environment. we have not assumed anything other than the current environment. We have -- we're not assuming any tailwinds coming from the macroenvironment. So that's really been -- one of the elements that's informed our guidance. That's really about our current trends that we're seeing, our current momentum that we're seeing and really all focus on our own execution. So that -- those for really the first part of your question, I would say the second part is just as a refresher, the total tax market is about $35 billion in TAM, $5 billion of that is do it yourself and about $30 billion is both is Intuit Assisted by the consumer. And on the business side, we've got great momentum. As you know, TurboTax Live grew 17% this past year, but the number of full service customers that we got double new to the franchise tripled. And so we have a lot of momentum as we look ahead and that's why we have a lot of confidence in really providing the expectation that we expect TurboTax Live to grow between 15% to 20%. And that really leads to, we wanted to just adjust our long-term expectations to be really prudent because until TurboTax Live, which today is 30% of our franchise, a growing high double digits until that becomes a larger part of our franchise, we wanted to be prudent with our long term expectation. I will just end with saying that DIY is actually very important and I would parse it into two. One, we're actually growing quite rapidly and I would say high single digits with complex customers with higher income. And we're actually accelerating taking share. And based on our learnings this year. And based on our trade-offs that we made this year and our focus this year, we're going to be quite assertive in continuing to pursue our lower-income customers this year because we have a lot of green shoots from this past year with our experiments, how to deliver benefits and monetize beyond tax with our Credit Karma platform. And so we're going to be leaning into that. And I'll just end with them. The final aspect of the question that you asked really are upside to our guide, which is, I think, a question you asked around TurboTax comes from really two dimensions are one accelerating in assisted tax beyond the 15% to 20%, and two actually accelerating where we've seen a lot of green shoots, which is the more complex higher-income customers that our DIY. We have positioned ourselves for the innovation and the lineup that's required to win on both fronts in the coming year. So that's where our confidence comes from.
Q: So Sasan I wanted to ask about the restructuring, which I know you take very seriously. We appreciate it wasn't motivated by cost savings, but rather to better position the company ahead, how are you thinking about reinvesting, any savings as it takes time staff back up to prior levels? Are there specific initiatives that get allocated to any additional color would be great. Thanks.
A: Yeah, sure, Brad. First of all, I just want to start with acknowledging -- we our culture about talent and people and compassion and care and this was a very, very tough decision. And we took great care of our teams internally, both those that are staying and getting them excited about why we're doing this and what's in the future and there remain extremely energized. But the second monetarily, taking great care of
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
