MOUNTAIN VIEW, Calif. - February 22, 2024 - Intuit Inc. (Nasdaq: INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced financial results for the second quarter of fiscal 2024, which ended January 31.

•Grew total revenue to $3.4 billion, up 11 percent.

•Increased Small Business and Self-Employed Group revenue to $2.2 billion, up 18 percent; grew Online Ecosystem revenue to $1.7 billion, up 21 percent.

•Reported Consumer Group revenue of $492 million, down 5 percent, driven by the later IRS opening this year. The IRS began accepting and processing returns starting January 29, compared to January 23 last year.

•Reported Credit Karma revenue of $375 million, flat to a year ago.

•Grew ProTax Group revenue to $274 million, up 8 percent, reflecting the timing of when tax forms were delivered.

•QuickBooks Online Accounting revenue grew 19 percent in the quarter, driven primarily by customer growth, higher effective prices, and mix-shift.

•Online Services revenue grew 24 percent, driven primarily by growth in payroll, payments, and Mailchimp.

•Total international online ecosystem revenue grew 16 percent on a constant currency basis.

•Revenue was flat versus a year ago, primarily reflecting growth in Credit Karma Money, credit cards, and auto loans, offset by a decline in home loans, personal loans, and auto insurance.

•Reported a total cash and investments balance of approximately $1.5 billion and $6.0 billion in debt as of January 31, 2024.

•Repurchased $536 million of shares, with $2.7 billion remaining on the company's share repurchase authorization.

•Received Board approval for a quarterly dividend of $0.90 per share, payable April 18, 2024. This represents a 15 percent increase compared to the same period last year.

•Revenue of $15.890 billion to $16.105 billion, growth of approximately 11 to 12 percent.

•GAAP operating income of $3.615 billion to $3.720 billion, growth of approximately 15 to 18 percent.

•Non-GAAP operating income of $6.155 billion to $6.260 billion, growth of approximately 12 to 14 percent.

•GAAP diluted earnings per share of $9.37 to $9.67, growth of approximately 11 to 15 percent.

•Non-GAAP diluted earnings per share of $16.17 to $16.47, growth of approximately 12 to 14 percent.

•Small Business and Self-Employed Group: growth of 16 to 17 percent.

•Consumer Group: growth of 7 to 8 percent.

•ProTax Group: growth of 3 to 4 percent.

•Credit Karma: decline of 3 percent to growth of 3 percent.

•Revenue to grow approximately 10 to 11 percent.

•GAAP diluted earnings per share of $7.77 to $7.84.

•Non-GAAP diluted earnings per share of $9.31 to $9.38.

Intuit is the global financial technology platform that powers prosperity for the people and communities we serve. With 100 million customers worldwide using TurboTax, Credit Karma, QuickBooks, and Mailchimp, 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 at Intuit.com and find us on social for the latest information about Intuit and our products and services.

[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.

We recorded $1 million in tax expense on pretax income of $354 million for the three months ended January 31, 2024. Our effective tax rate for the six months ended January 31, 2024 was approximately 4%. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.

•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 securities and other investments

•Income tax effects and adjustments

•Discontinued operations

Share-based compensation expense. This consists 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 securities and other investments. We exclude from our non-GAAP financial measures credit losses on available-for-sale debt securities and gains and losses on 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 24% for fiscal year 2024. For fiscal year 2023, the non-GAAP tax rate was 24%. This long-term non-GAAP tax rate could be subject to change for various reasons including significant acquisitions, 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.