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Intuit Reports Strong Full Year Results and Sets Fiscal 2022 Guidance

Aug 24, 2021

Performance led by strength across the platform, including Credit Karma, Small Business and Self-Employed Group and Consumer Group

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Intuit Inc. (Nasdaq: INTU) announced financial results for the fourth quarter and full fiscal year 2021, which ended July 31.

"We had a very strong fourth quarter capping off an outstanding fiscal 2021," said Sasan Goodarzi, Intuit's chief executive officer. "Our momentum continues across the company with accelerated innovation focused on our customers' most important needs while creating durable growth opportunities for Intuit in the future."

Financial Highlights

For the fourth quarter, Intuit reported:

  • Total revenue of $2.6 billion, up 41 percent from $1.8 billion in the prior year, including the addition of Credit Karma.
  • Small Business and Self-Employed Group revenue grew by 19 percent to $1.3 billion and Online Ecosystem revenue grew by 30 percent.
  • Consumer Group revenue of $852 million, compared to $710 million in the prior year.
  • Credit Karma revenue of $405 million, a quarterly record for the business.

For the full year, including the addition of Credit Karma beginning December 3, Intuit reported:

  • Total revenue to $9.6 billion, up 25 percent year-over-year, including 11 points from the addition of Credit Karma this year.
  • Combined Platform Revenue, which includes QuickBooks Online, TurboTax Online and Credit Karma, grew 39 percent to $6.6 billion. This includes 18 points from the addition of Credit Karma this year.
  • Small Business and Self-Employed Group revenue grew 16 percent and Online Ecosystem revenue grew 26 percent.
  • Consumer Group revenue grew 14 percent to $3.6 billion.
  • Credit Karma revenue of $865 million.
  • GAAP operating income of $2.5 billion, up 15 percent.
  • Non-GAAP operating income of $3.5 billion, up 31 percent.
  • GAAP and non-GAAP earnings per share grew by 9 percent and 24 percent, respectively.

Unless otherwise noted, all growth rates refer to the current period versus the comparable prior-year period, and the business metrics and associated growth rates refer to worldwide business metrics.

Snapshot of Fourth-quarter Fiscal Year 2021 Results

GAAP

Non-GAAP

 

Q4

FY21

Q4

FY20

Change

Q4

FY21

Q4

FY20

Change

Revenue

$2,561

$1,816

41%

$2,561

$1,816

41%

Operating Income

$402

$483

(17)%

$715

$616

16%

Earnings Per Share

$1.37

$1.68

(18)%

$1.97

$1.81

9%

Dollars are in millions, except earnings per share. See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP). GAAP operating income and earnings per share year-over-year results reflect higher stock compensation expense associated with the Credit Karma acquisition.

Snapshot of Fiscal Year 2021 Full-year Results

GAAP

Non-GAAP

 

FY21

FY20

Change

FY21

FY20

Change

Revenue

$9,633

$7,679

25%

$9,633

$7,679

25%

Operating Income

$2,500

$2,176

15%

$3,485

$2,668

31%

Earnings Per Share

$7.56

$6.92

9%

$9.74

$7.86

24%

Dollars are in millions, except earnings per share. See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Business Segment Results

Small Business and Self-Employed Group

  • For the fourth fiscal quarter and full fiscal year:
    • QuickBooks Online accounting revenue grew 28 percent for the quarter and 25 percent for the year. Growth was driven primarily by customer growth, mix shift, and higher effective prices.
    • Online services revenue grew 35 percent for the quarter and 27 percent for the year. Growth was driven by QuickBooks Online payments and QuickBooks Online payroll.
    • The Paycheck Protection Program (PPP) generated non-recurring revenue of $4 million and $20 million in fourth quarter and fiscal 2021, respectively, and $30 million in each of the fourth quarter and fiscal 2020. The table below adjusts growth for non-recurring revenue related to the PPP.

YoY Growth %

Q4 FY21

FY21

Online Services Revenue

35%

27%

Online Services Revenue (Excluding PPP Revenue)

43%

28%

Online Ecosystem Revenue

30%

26%

Online Ecosystem Revenue (Excluding PPP Revenue)

33%

26%

Small Business and Self-Employed Group Revenue

19%

16%

Small Business and Self-Employed Group Revenue (Excluding PPP Revenue)

22%

16%

Consumer and Strategic Partner Groups

  • TurboTax Online units grew 5 percent and total TurboTax units increased 6 percent.
  • TurboTax share of total returns expanded approximately 1 point, excluding approximately 8 million stimulus-only filings last season.
  • Customers paying nothing grew more than 6 percent to over 17 million filers. Intuit's commitment to provide robust free tax preparation offerings has resulted in nearly 100 million TurboTax customers who paid nothing for their TurboTax experience over the last 8 years.
  • Professional tax revenue in the Strategic Partner Group grew by 5 percent for the year.

TurboTax Federal Unit Data

Units in millions

Season through

July 31, 2021

Season through July 31, 2020

Change

Year-Over-Year

Desktop Units

4.8

4.9

(2)%

Online Units

37.7

35.8

5%

Sub-total U.S. TurboTax Units

42.5

40.7

4%

Free File Alliance

3.0

2.0

46%

Total U.S. TurboTax Units

45.5

42.7

6%

Canada TurboTax Units

3.6

3.4

8%

Unit data is for the period November 1, 2020 to July 31, 2021 for the season through July 31, 2021 and for November 1, 2019 to July 31, 2020 for the season through July 31, 2020.

Credit Karma

  • Both the core verticals - including credit cards and personal loans, and growth verticals - including home and auto loans and insurance, saw record high revenue in the quarter. Sequential growth from third quarter to fourth quarter predominantly reflects strength in credit cards and personal loans, as transactions per member increased.

Capital Allocation Summary

In the fourth quarter, the company had:

  • Reported a total cash and investments balance of approximately $3.9 billion as of July 31.
  • Repurchased $1.0 billion of stock during fiscal year 2021. The Board approved a new $2 billion repurchase authorization, giving the company a total authorization of $3.3 billion to repurchase shares.
  • Received Board approval for a quarterly dividend of $0.68 per share, payable October 18, 2021. This represents a 15 percent increase versus last year.

Forward-looking Guidance

Intuit announced guidance for the first quarter of fiscal year 2022, which ends Oct. 31. The company expects:

  • Revenue growth of approximately 36 to 38 percent, including Credit Karma.
  • GAAP earnings per share of $0.14 to $0.19.
  • Non-GAAP diluted earnings per share of $0.94 to $0.99.

Intuit also announced guidance for the full fiscal year 2022. The company expects:

  • Revenue of $11.050 billion to $11.200 billion, growth of approximately 15 to 16 percent, including a full year of Credit Karma.
  • GAAP operating income of $2.605 billion to $2.680 billion, growth of approximately 4 to 7 percent.
  • Non-GAAP operating income of $4.050 billion to $4.125 billion, growth of approximately 16 to 18 percent.
  • GAAP diluted earnings per share of $7.46 to $7.66, a decline of approximately 1 percent to growth of 1 percent.
  • Non-GAAP diluted earnings per share of $11.05 to $11.25, growth of approximately 13 to 16 percent.

The company expects the following segment revenue results for fiscal year 2022:

  • Small Business and Self-Employed Group: growth of 12 to 14 percent.
  • Consumer Group: growth of 10 to 11 percent.
  • ProConnect Group: growth of 1 to 2 percent.
  • Credit Karma: revenue of $1.345 billion to $1.380 billion.

Conference Call Details

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on Aug. 24. The conference call can be heard live at http://investors.intuit.com/Events/default.aspx. Prepared remarks for the call will be available on Intuit’s website after the call ends.

Replay Information

A replay of the conference call will be available for one week by calling 855-859-2056, or 404-537-3406 from international locations. The access code for this call is 9795000.

The audio webcast will remain available on Intuit’s website for one week after the conference call.

Investor Day 2021

Intuit will host its virtual annual Investor Day on Sept. 30 at 8:00 a.m. Pacific time. The half-day event will include presentations from Sasan Goodarzi, chief executive officer, Michelle Clatterbuck, chief financial officer, and other leaders. If you would like to attend, please register at https://investorday2021.intuit.com/investorday/registration.

About Intuit

Intuit is a global technology platform that helps our customers and communities overcome their most important financial challenges. Serving approximately 100 million customers worldwide with TurboTax, QuickBooks, Mint and Credit Karma, we believe that everyone should have the opportunity to prosper. We never stop working to find new, innovative ways to make that possible. Please visit us for the latest information about Intuit, our products and services, and find us on social.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled "About Non-GAAP Financial Measures" as well as the related Table B1, Table B2, and Table E. A copy of the press release issued by Intuit today can be found on the investor relations page of Intuit's website.

Cautions About Forward-looking Statements

This press release contain forward-looking statements, including Intuit’s prospects for the business in fiscal 2022 and beyond; expectations regarding Intuit’s growth outside the US; expectations regarding timing and growth of revenue for each of Intuit’s reporting segments and from current or future products and services; expectations regarding customer growth; expectations regarding Intuit’s corporate tax rate; expectations regarding changes to our products and their impact on Intuit’s business; expectations regarding the amount and timing of any future dividends or share repurchases; expectations regarding availability of our offerings; expectations regarding the impact of our strategic decisions on Intuit’s business; and all of the statements under the heading "Forward-looking Guidance."

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These risks and uncertainties may be amplified by the COVID-19 pandemic, which has caused significant global economic instability and uncertainty. These factors include, without limitation, the following: our ability to compete successfully; our participation in the Free File Alliance; potential governmental encroachment in our tax businesses; our ability to adapt to technological change; our ability to predict consumer behavior; our reliance on third-party intellectual property; our ability to protect our intellectual property rights; any harm to our reputation; risks associated with acquisition and divestiture activity, including the acquisition and integration of Credit Karma; the issuance of equity or incurrence of debt to fund an acquisition; our cybersecurity incidents (including those affecting the third parties we rely on); customer concerns about privacy and cybersecurity incidents; fraudulent activities by third parties using our offerings; our failure to process transactions effectively; interruption or failure of our information technology; our ability to maintain critical third-party business relationships; our ability to attract and retain talent; any deficiency in the quality or accuracy of our products (including the advice given by experts on our platform); any delays in product launches; difficulties in processing or filing customer tax submissions; risks associated with international operations; changes to public policy, laws or regulations affecting our businesses; litigation in which we are involved; the seasonal nature of our tax business; changes in tax rates and tax reform legislation; global economic changes; exposure to credit, counterparty and other risks in providing capital to businesses; amortization of acquired intangible assets and impairment charges; our ability to repay or otherwise comply with the terms of our outstanding debt; our ability to repurchase shares or distribute dividends; volatility of our stock price; and our ability to successfully market our offerings. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2020 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. Fiscal 2022 full-year and Q1 guidance speaks only as of the date it was publicly issued by Intuit. Other forward-looking statements represent the judgment of the management of Intuit as of the date of this presentation. We do not undertake any duty to update any forward-looking statement or other information in this presentation.

TABLE A

INTUIT INC.

GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

July 31,
2021

 

July 31,
2020

 

July 31,
2021

 

July 31,
2020

 

 

 

 

 

 

 

 

Net revenue:

 

 

 

 

 

 

 

Product

$

303

 

 

$

294

 

 

$

1,698

 

 

$

1,635

 

Service and other

2,258

 

 

1,522

 

 

7,935

 

 

6,044

 

Total net revenue

2,561

 

 

1,816

 

 

9,633

 

 

7,679

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

Cost of product revenue

16

 

 

15

 

 

69

 

 

72

 

Cost of service and other revenue

434

 

 

302

 

 

1,564

 

 

1,284

 

Amortization of acquired technology

15

 

 

5

 

 

50

 

 

22

 

Selling and marketing

845

 

 

424

 

 

2,644

 

 

2,048

 

Research and development

521

 

 

393

 

 

1,678

 

 

1,392

 

General and administrative

274

 

 

193

 

 

982

 

 

679

 

Amortization of other acquired intangible assets

54

 

 

1

 

 

146

 

 

6

 

Total costs and expenses [A]

2,159

 

 

1,333

 

 

7,133

 

 

5,503

 

Operating income

402

 

 

483

 

 

2,500

 

 

2,176

 

Interest expense

(7

)

 

(7

)

 

(29

)

 

(14

)

Interest and other income, net

8

 

 

10

 

 

85

 

 

36

 

Income before income taxes

403

 

 

486

 

 

2,556

 

 

2,198

 

Income tax provision [B]

23

 

 

41

 

 

494

 

 

372

 

Net income

$

380

 

 

$

445

 

 

$

2,062

 

 

$

1,826

 

 

 

 

 

 

 

 

 

Basic net income per share

$

1.39

 

 

$

1.70

 

 

$

7.65

 

 

$

6.99

 

Shares used in basic per share calculations

273

 

 

262

 

 

270

 

 

261

 

 

 

 

 

 

 

 

 

Diluted net income per share

$

1.37

 

 

$

1.68

 

 

$

7.56

 

 

$

6.92

 

Shares used in diluted per share calculations

277

 

 

264

 

 

273

 

 

264

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

$

0.59

 

 

$

0.53

 

 

$

2.36

 

 

$

2.12

 

See accompanying Notes.

 

INTUIT INC.

NOTES TO TABLE A

 

[A]

The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.

 

Three Months Ended

 

Twelve Months Ended

(in millions)

July 31, 2021

 

July 31, 2020

 

July 31, 2021

 

July 31, 2020

Cost of revenue

$

22

 

$

16

 

$

69

 

$

60

Selling and marketing

56

 

30

 

183

 

116

Research and development

94

 

40

 

281

 

151

General and administrative

72

 

28

 

220

 

108

Total share-based compensation expense

$

244

 

$

114

 

$

753

 

$

435

[B]

We recognized excess tax benefits on share-based compensation of $126 million in our provision for income taxes for the twelve months ended July 31, 2021 and $90 million for the twelve months ended July 31, 2020.

 

Our effective tax rate for the twelve months ended July 31, 2021 was approximately 19%. Excluding tax benefits related to share-based compensation, our effective tax rate was 24%. This differed from the federal statutory rate of 21% primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the benefit we received from the federal research and experimentation credit.

 

Our effective tax rate for the twelve months ended July 31, 2020 was approximately 17%. Excluding tax benefits related to share-based compensation, our effective tax rate was 21% and did not differ significantly from the federal statutory rate.

 

In the current global tax policy environment, the U.S. and other domestic and foreign governments continue to consider, and in some cases enact, changes in corporate tax laws. As changes occur, we account for finalized legislation in the period of enactment.

TABLE B1

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In millions, except per share amounts)

(Unaudited)

 

 

Fiscal 2021

 

Q1

 

Q2

 

Q3

 

Q4

 

Full Year

GAAP operating income (loss)

$

209

 

 

$

(25

)

 

$

1,914

 

 

$

402

 

 

$

2,500

 

Amortization of acquired technology

7

 

 

14

 

 

14

 

 

15

 

 

50

 

Amortization of other acquired intangible assets

2

 

 

36

 

 

54

 

 

54

 

 

146

 

Professional fees for business combinations

5

 

 

30

 

 

1

 

 

 

 

36

 

Share-based compensation expense

111

 

 

180

 

 

218

 

 

244

 

 

753

 

Non-GAAP operating income (loss)

$

334

 

 

$

235

 

 

$

2,201

 

 

$

715

 

 

$

3,485

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

198

 

 

$

20

 

 

$

1,464

 

 

$

380

 

 

$

2,062

 

Amortization of acquired technology

7

 

 

14

 

 

14

 

 

15

 

 

50

 

Amortization of other acquired intangible assets

2

 

 

36

 

 

54

 

 

54

 

 

146

 

Professional fees for business combinations

5

 

 

30

 

 

1

 

 

 

 

36

 

Share-based compensation expense

111

 

 

180

 

 

218

 

 

244

 

 

753

 

Net (gain) loss on debt securities and other investments

(7

)

 

(8

)

 

 

 

 

 

(15

)

Other income from divested businesses [A]

 

 

(30

)

 

 

 

 

 

(30

)

Income tax effects and adjustments [B]

(66

)

 

(57

)

 

(73

)

 

(149

)

 

(345

)

Non-GAAP net income (loss)

$

250

 

 

$

185

 

 

$

1,678

 

 

$

544

 

 

$

2,657

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted net income (loss) per share

$

0.75

 

 

$

0.07

 

 

$

5.30

 

 

$

1.37

 

 

$

7.56

 

Amortization of acquired technology

0.03

 

 

0.05

 

 

0.05

 

 

0.06

 

 

0.18

 

Amortization of other acquired intangible assets

 

 

0.14

 

 

0.19

 

 

0.20

 

 

0.53

 

Professional fees for business combinations

0.02

 

 

0.11

 

 

 

 

 

 

0.13

 

Share-based compensation expense

0.42

 

 

0.66

 

 

0.79

 

 

0.88

 

 

2.76

 

Net (gain) loss on debt securities and other investments

(0.03

)

 

(0.03

)

 

 

 

 

 

(0.05

)

Other income from divested businesses [A]

 

 

(0.11

)

 

 

 

 

 

(0.11

)

Income tax effects and adjustments [B]

(0.25

)

 

(0.21

)

 

(0.26

)

 

(0.54

)

 

(1.26

)

Non-GAAP diluted net income (loss) per share

$

0.94

 

 

$

0.68

 

 

$

6.07

 

 

$

1.97

 

 

$

9.74

 

 

 

 

 

 

 

 

 

 

 

Shares used in GAAP diluted per share calculation

265

 

 

273

 

 

276

 

 

277

 

 

273

 

 

 

 

 

 

 

 

 

 

 

Shares used in non-GAAP diluted per share calculation

265

 

 

273

 

 

276

 

 

277

 

 

273

 

[A]

During the three months ended January 31, 2021, we recorded a $30 million gain from the sale of a note receivable that was previously written off.

 

[B]

As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and the excess tax benefits on share-based compensation.

 

See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

TABLE B2

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In millions, except per share amounts)

(Unaudited)

 

 

Fiscal 2020

 

Q1

 

Q2

 

Q3

 

Q4

 

Full Year

GAAP operating income (loss)

$

10

 

 

$

270

 

 

$

1,413

 

 

$

483

 

 

$

2,176

 

Amortization of acquired technology

6

 

 

6

 

 

5

 

 

5

 

 

22

 

Amortization of other acquired intangible assets

2

 

 

1

 

 

2

 

 

1

 

 

6

 

Professional fees for business combinations

 

 

 

 

16

 

 

13

 

 

29

 

Share-based compensation expense

111

 

 

107

 

 

103

 

 

114

 

 

435

 

Non-GAAP operating income (loss)

$

129

 

 

$

384

 

 

$

1,539

 

 

$

616

 

 

$

2,668

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

57

 

 

$

240

 

 

$

1,084

 

 

$

445

 

 

$

1,826

 

Amortization of acquired technology

6

 

 

6

 

 

5

 

 

5

 

 

22

 

Amortization of other acquired intangible assets

2

 

 

1

 

 

2

 

 

1

 

 

6

 

Professional fees for business combinations

 

 

 

 

16

 

 

13

 

 

29

 

Share-based compensation expense

111

 

 

107

 

 

103

 

 

114

 

 

435

 

Net (gain) loss on debt securities and other investments

1

 

 

1

 

 

2

 

 

1

 

 

5

 

Income tax effects and adjustments [A]

(68

)

 

(49

)

 

(29

)

 

(102

)

 

(248

)

Non-GAAP net income (loss)

$

109

 

 

$

306

 

 

$

1,183

 

 

$

477

 

 

$

2,075

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted net income (loss) per share

$

0.22

 

 

$

0.91

 

 

$

4.11

 

 

$

1.68

 

 

$

6.92

 

Amortization of acquired technology

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.08

 

Amortization of other acquired intangible assets

0.01

 

 

 

 

0.01

 

 

 

 

0.02

 

Professional fees for business combinations

 

 

 

 

0.06

 

 

0.05

 

 

0.11

 

Share-based compensation expense

0.42

 

 

0.41

 

 

0.39

 

 

0.44

 

 

1.65

 

Net (gain) loss on debt securities and other investments

 

 

 

 

0.01

 

 

 

 

0.02

 

Income tax effects and adjustments [A]

(0.26

)

 

(0.18

)

 

(0.11

)

 

(0.38

)

 

(0.94

)

Non-GAAP diluted net income (loss) per share

$

0.41

 

 

$

1.16

 

 

$

4.49

 

 

$

1.81

 

 

$

7.86

 

 

 

 

 

 

 

 

 

 

 

Shares used in GAAP diluted per share calculation

264

 

 

264

 

 

264

 

 

264

 

 

264

 

 

 

 

 

 

 

 

 

 

 

Shares used in non-GAAP diluted per share calculation

264

 

 

264

 

 

264

 

 

264

 

 

264

 

[A]

As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and the excess tax benefits on share-based compensation.

 

See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

TABLE C

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

 

July 31, 2021

 

July 31, 2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,562

 

$

6,442

Investments

1,308

 

608

Accounts receivable, net

391

 

149

Income taxes receivable

123

 

12

Prepaid expenses and other current assets

316

 

314

Current assets before funds held for customers

4,700

 

7,525

Funds held for customers

457

 

455

Total current assets

5,157

 

7,980

 

 

 

 

Long-term investments

43

 

19

Property and equipment, net

780

 

734

Operating lease right-of-use assets

380

 

226

Goodwill

5,613

 

1,654

Acquired intangible assets, net

3,252

 

28

Long-term deferred income taxes

8

 

65

Other assets

283

 

225

Total assets

$

15,516

 

$

10,931

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Short-term debt

$

 

$

1,338

Accounts payable

623

 

305

Accrued compensation and related liabilities

530

 

482

Deferred revenue

684

 

652

Other current liabilities

361

 

297

Current liabilities before customer fund deposits

2,198

 

3,074

Customer fund deposits

457

 

455

Total current liabilities

2,655

 

3,529

 

 

 

 

Long-term debt

2,034

 

2,031

Long-term deferred income tax liabilities

525

 

2

Operating lease liabilities

380

 

221

Other long-term obligations

53

 

42

Total liabilities

5,647

 

5,825

 

 

 

 

Stockholders’ equity

9,869

 

5,106

Total liabilities and stockholders’ equity

$

15,516

 

$

10,931

TABLE D

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

Twelve Months Ended

 

July 31, 2021

 

July 31, 2020

Cash flows from operating activities:

 

 

 

Net income

$

2,062

 

 

$

1,826

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation

166

 

 

189

 

Amortization of acquired intangible assets

197

 

 

29

 

Non-cash operating lease cost

62

 

 

60

 

Share-based compensation expense

753

 

 

435

 

Deferred income taxes

(42

)

 

(179

)

Other

(39

)

 

6

 

Total adjustments

1,097

 

 

540

 

Originations of loans held for sale

(41

)

 

(566

)

Sale and principal payments of loans held for sale

143

 

 

482

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

(104

)

 

(59

)

Income taxes receivable

(51

)

 

53

 

Prepaid expenses and other assets

30

 

 

(31

)

Accounts payable

206

 

 

33

 

Accrued compensation and related liabilities

(70

)

 

100

 

Deferred revenue

22

 

 

38

 

Operating lease liabilities

(66

)

 

(61

)

Other liabilities

22

 

 

59

 

Total changes in operating assets and liabilities

(11

)

 

132

 

Net cash provided by operating activities

3,250

 

 

2,414

 

Cash flows from investing activities:

 

 

 

Purchases of corporate and customer fund investments

(1,489

)

 

(701

)

Sales of corporate and customer fund investments

229

 

 

130

 

Maturities of corporate and customer fund investments

550

 

 

596

 

Purchases of property and equipment

(125

)

 

(137

)

Acquisitions of businesses, net of cash acquired

(3,064

)

 

 

Originations of term loans to small businesses

(232

)

 

(243

)

Principal repayments of term loans from small businesses

136

 

 

287

 

Other

30

 

 

(29

)

Net cash used in investing activities

(3,965

)

 

(97

)

Cash flows from financing activities:

 

 

 

Proceeds from issuance of long-term debt, net of discount and issuance costs

 

 

1,983

 

Proceeds from borrowings under unsecured revolving credit facility

 

 

1,000

 

Repayments on borrowings under unsecured revolving credit facility

(1,000

)

 

 

Repayment of debt

(338

)

 

(50

)

Proceeds from issuance of stock under employee stock plans

196

 

 

211

 

Payments for employee taxes withheld upon vesting of restricted stock units

(383

)

 

(244

)

Cash paid for purchases of treasury stock

(1,005

)

 

(323

)

Dividends and dividend rights paid

(646

)

 

(561

)

Net change in customer fund deposits

2

 

 

19

 

Other

(2

)

 

(1

)

Net cash provided by (used in) financing activities

(3,176

)

 

2,034

 

Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents

13

 

 

(6

)

Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents

(3,878

)

 

4,345

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period

6,697

 

 

2,352

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period

$

2,819

 

 

$

6,697

 

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the consolidated balance sheets to the total amounts reported on the consolidated statements of cash flows

 

 

 

Cash and cash equivalents

$

2,562

 

 

$

6,442

 

Restricted cash and restricted cash equivalents included in funds held for customers

257

 

 

255

 

Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period

$

2,819

 

 

$

6,697

 

Supplemental disclosure of cash flow information:
Interest paid

$

30

 

$

14

 

Income taxes paid

$

578

 

$

493

 

 
Supplemental schedule of non-cash investing activities:
Issuance of common stock in a business combination

$

3,798

 

$

 

TABLE E

INTUIT INC.

RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS

(In millions, except per share amounts)

(Unaudited)

 

 

Forward-Looking Guidance

 

GAAP

Range of Estimate

 

 

 

Non-GAAP

Range of Estimate

 

From

 

To

 

Adjmts

 

From

 

To

Three Months Ending October 31, 2021

 

 

 

 

 

 

 

 

 

Revenue

$

1,795

 

 

$

1,825

 

 

$

 

 

$

1,795

 

 

$

1,825

 

Operating income

$

 

 

$

15

 

 

$

353

 

[a]

$

353

 

 

$

368

 

Diluted earnings per share

$

0.14

 

 

$

0.19

 

 

$

0.80

 

[b]

$

0.94

 

 

$

0.99

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ending July 31, 2022

 

 

 

 

 

 

 

 

 

Revenue

$

11,050

 

 

$

11,200

 

 

$

 

 

$

11,050

 

 

$

11,200

 

Operating income

$

2,605

 

 

$

2,680

 

 

$

1,445

 

[c]

$

4,050

 

 

$

4,125

 

Diluted earnings per share

$

7.46

 

 

$

7.66

 

 

$

3.59

 

[d]

$

11.05

 

 

$

11.25

 

See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

[a]

Reflects estimated adjustments for share-based compensation expense of approximately $284 million; amortization of acquired technology of approximately $15 million; and amortization of other acquired intangible assets of approximately $54 million.

 

[b]

Reflects estimated adjustments in item [a], income taxes related to these adjustments, and other income tax effects related to the use of the non-GAAP tax rate. We expect a non-GAAP tax rate of 24% in fiscal 2022.

 

[c]

Reflects estimated adjustments for share-based compensation expense of approximately $1,172 million; amortization of acquired technology of approximately $59 million; and amortization of other acquired intangibles of approximately $214 million.

 

[d]

Reflects estimated adjustments in item [c], income taxes related to these adjustments, and other income tax effects related to the use of the non-GAAP tax rate. We expect a non-GAAP tax rate of 24% in fiscal 2022.

 

Contacts:

Investors
Kim Watkins
Intuit Inc.
650-944-3324
kim_watkins@intuit.com

Media
Kali Fry
Intuit Inc.
650-944-3036
kali_fry@intuit.com

Source: Intuit Inc.

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