MOUNTAIN VIEW, Calif. - May 25, 2021 - Intuit Inc. (Nasdaq: INTU), maker of TurboTax, QuickBooks, Mint and Credit Karma, announced financial results for the third quarter of fiscal 2021, which ended April 30.

•Total revenue of $4.2 billion, up from $3.0 billion the prior year.

•Consumer Group revenue grew 34 percent to $2.4 billion.

•Small Business and Self-Employed Group revenue up 20 percent to $1.2 billion, while Online Ecosystem revenue grew 28 percent to $715 million. Excluding $10 million of nonrecurring Paycheck Protection Program (PPP) revenue, growth was 19 percent and 26 percent, respectively.

•Credit Karma revenue of $316 million, a quarterly record for the business.

•QuickBooks Online Accounting revenue grew 24 percent in the quarter, driven primarily by customer growth and mix-shift.

•Online Services revenue increased 34 percent, driven by QuickBooks Online payments and QuickBooks Online payroll. Excluding non-recurring PPP revenue, growth was 31 percent.

•Total international online revenue grew 38 percent on a constant currency basis.

•Revenue growth reflects growing members, member engagement and expansion of new and existing partners across verticals.

•Member engagement reached a new record high watermark, with both monthly active users and frequency of member visits at all-time highs.

•Professional tax revenue in the ProConnect Group grew to $235 million in the third quarter of fiscal 2021, up from $193 million the prior year.

•Total TurboTax units to grow 6 percent.

•TurboTax Live customers to grow more than 90 percent and TurboTax Live customers new to Intuit to be up more than 100 percent for the season.

•TurboTax share of total returns to expand an estimated 1 point, excluding approximately 8 million stimulus-only filings last season.

•The growth of TurboTax Premier, designed for investors, to significantly accelerate, more than tripling over last year.

•Customers paying nothing to grow 6 percent to over 17 million filers. Intuit's commitment to offering free tax prep for those with simple tax returns and who need it most with a robust free offering has resulted in nearly 100 million TurboTax customers who paid nothing for their TurboTax experience over the last 8 years.

•Reported a total cash and investments balance of approximately $4.1 billion as of April 30.

•Repurchased $380 million of shares, with $1.8 billion remaining on the company's authorization.

•Received Board approval for a quarterly dividend of $0.59 per share, payable July 19, 2021. This represents an 11 percent increase compared to the same period last year.

•Revenue growth of approximately 26 to 28 percent.

•GAAP earnings per share of $0.78 to $0.83.

•Non-GAAP diluted earnings per share of $1.55 to $1.60.

•Revenue of $9.362 billion to $9.400 billion, growth of approximately 22 percent, up from previous guidance for growth of 15 to 17 percent.

•GAAP operating income of $2.350 billion to $2.370 billion, growth of approximately 8 to 9 percent.

•Non-GAAP operating income of $3.340 billion to $3.360 billion, growth of approximately 25 to 26 percent.

•GAAP diluted earnings per share of $6.96 to $7.01, an increase of approximately 1 percent.

•Non-GAAP diluted earnings per share of $9.32 to $9.37, growth of approximately 19 percent.

•Small Business and Self-Employed Group: growth of 14 percent.

•Consumer Group: growth of 11 to 12 percent.

•ProConnect Group: growth of 2 percent.

•Credit Karma: revenue of $775 million to $785 million.

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on May 25. To hear the call, dial 866-417-5279 in the United States or 409-937-8904 from international locations. No reservation or access code is needed. The conference call can also 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.

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.

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

[B]We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.

For the three and nine months ended April 30, 2021, we recognized excess tax benefits on share-based compensation of $13 million and $77 million, respectively, in our provision for income taxes. For the three and nine months ended April 30, 2020, we recognized excess tax benefits on share-based compensation of $7 million and $59 million, respectively, in our provision for income taxes.

[a]     Reflects estimated adjustments for share-based compensation expense of approximately $249 million; amortization of acquired technology of approximately $15 million; and amortization of other acquired intangible assets of approximately $56 million.

•Share-based compensation expense

•Amortization of acquired technology

•Amortization of other acquired intangible assets

•Goodwill and intangible asset impairment charges

•Gains and losses on disposals of businesses and long-lived assets

•Professional fees and transaction costs for business combinations

•Gains and losses on debt and equity securities and other investments

•Income tax effects and adjustments

•Discontinued operations

Share-based compensation expenses. These consist of non-cash expenses for stock options, restricted stock units, and our Employee Stock Purchase Plan. When considering the impact of equity awards, we place greater emphasis on overall shareholder dilution rather than the accounting charges associated with those awards.

Amortization of acquired technology and amortization of other acquired intangible assets. When we acquire a business in a business combination, we are required by GAAP to record the fair values of the intangible assets of the business and amortize them over their useful lives. Amortization of acquired technology in cost of revenue includes amortization of software and other technology assets of acquired businesses. Amortization of other acquired intangible assets in operating expenses includes amortization of assets such as customer lists, covenants not to compete, and trade names.

Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial measures non-cash charges to adjust the carrying values of goodwill and other acquired intangible assets to their estimated fair values.

Gains and losses on disposals of businesses and long-lived assets. We exclude from our non-GAAP financial measures gains and losses on disposals of businesses and long-lived assets because they are unrelated to our ongoing business operating results.

Professional fees and transaction costs for business combinations. We exclude from our non-GAAP financial measures the professional fees we incur to complete business combinations. These include investment banking, legal, and accounting fees.

Gains and losses on debt and equity securities and other investments. We exclude from our non-GAAP financial measures gains and losses that we record when we impair available-for-sale debt and equity securities and other investments.

Income tax effects and adjustments. We use a long-term non-GAAP tax rate for evaluating operating results and for planning, forecasting, and analyzing future periods. This long-term non-GAAP tax rate excludes the income tax effects of the non-GAAP pre-tax adjustments described above, and eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Based on our current long-term projections, we are using a long-term non-GAAP tax rate of 23% for fiscal 2020 and 24% for fiscal 2021. This long-term non-GAAP tax rate could be subject to change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate. We will evaluate this long-term non-GAAP tax rate on an annual basis and whenever any significant events occur which may materially affect this rate.

Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures.