Intuit Studies Third Quarter Outcomes and Raises Full 12 months Steering; Grows Small Enterprise On-line Ecosystem Income 28 P.c in Third Quarter

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Intuit Inc. (Nasdaq: INTU), maker of TurboTax, QuickBooks, Mint and Credit score Karma, introduced monetary outcomes for the third quarter of fiscal 2021, which ended April 30.

We had a powerful quarter throughout the corporate, and in consequence we’re elevating our full 12 months steering,” stated Sasan Goodarzi, Intuit’s chief government officer. “We had an incredible tax season rising our share of complete tax returns and executing our technique of increasing our lead within the DIY class and remodeling the assisted class. Small Enterprise and Self-Employed Group delivered sturdy double-digit income development and Credit score Karma income reached an all-time excessive within the quarter,” stated Goodarzi.

Monetary Highlights

For the third quarter, Intuit reported:

  • Complete income of $4.2 billion, up from $3.0 billion the prior 12 months.
  • Client Group income grew 34 % to $2.4 billion.
  • Small Enterprise and Self-Employed Group income up 20 % to $1.2 billion, whereas On-line Ecosystem income grew 28 % to $715 million. Excluding $10 million of nonrecurring Paycheck Safety Program (PPP) income, development was 19 % and 26 %, respectively.
  • Credit score Karma income of $316 million, a quarterly document for the enterprise.

Except in any other case famous, all development charges seek advice from the present interval versus the comparable prior-year interval, and the enterprise metrics and related development charges seek advice from worldwide enterprise metrics.

Snapshot of Third-quarter Outcomes

 

   

GAAP

   

Non-GAAP

 

 

   

Q3

FY21

   

Q3

FY20

   

Change

   

Q3

FY21

   

Q3

FY20

   

Change

 

Income

   

$4,173

   

$3,002

   

39%

   

$4,173

   

$3,002

   

39%

 

Working Revenue

   

$1,914

   

$1,413

   

35%

   

$2,201

   

$1,539

   

43%

 

Earnings Per Share

   

$5.30

   

$4.11

   

29%

   

$6.07

   

$4.49

   

35%

 

{Dollars} are in hundreds of thousands, besides earnings per share. See “About Non-GAAP Monetary Measures” beneath for extra info relating to monetary measures not ready in accordance with Usually Accepted Accounting Ideas (GAAP).

Enterprise Section Outcomes

Small Enterprise and Self-Employed Group

  • QuickBooks On-line Accounting income grew 24 % within the quarter, pushed primarily by buyer development and mix-shift.
  • On-line Companies income elevated 34 %, pushed by QuickBooks On-line funds and QuickBooks On-line payroll. Excluding non-recurring PPP income, development was 31 %.
  • Complete worldwide on-line income grew 38 % on a continuing foreign money foundation.

Credit score Karma

  • Income development displays rising members, member engagement and growth of latest and current companions throughout verticals.
  • Member engagement reached a brand new document excessive watermark, with each month-to-month lively customers and frequency of member visits at all-time highs.

ProConnect Teams

  • Skilled tax income within the ProConnect Group grew to $235 million within the third quarter of fiscal 2021, up from $193 million the prior 12 months.

Tax Season Replace

Except in any other case famous beneath, all development charges seek advice from Intuit’s expectations for the tax submitting season by July 31, 2021 in comparison with the prior season by July 31, 2020. For that interval, Intuit expects.

  • Complete TurboTax items to develop 6 %.
  • TurboTax Dwell clients to develop greater than 90 % and TurboTax Dwell clients new to Intuit to be up greater than one hundred pc for the season.
  • TurboTax share of complete returns to broaden an estimated 1 level, excluding roughly 8 million stimulus-only filings final season.
  • The expansion of TurboTax Premier, designed for buyers, to considerably speed up, greater than tripling over final 12 months.
  • Clients paying nothing to develop 6 % to over 17 million filers. Intuit’s dedication to providing free tax prep for these with easy tax returns and who want it most with a sturdy free providing has resulted in practically 100 million TurboTax clients who paid nothing for his or her TurboTax expertise over the past 8 years.

Intuit plans to supply a TurboTax federal tax unit comparability in its fourth quarter 2021 earnings launch.

Capital Allocation Abstract

Within the third quarter the corporate:

  • Reported a complete money and investments stability of roughly $4.1 billion as of April 30.
  • Repurchased $380 million of shares, with $1.8 billion remaining on the corporate’s authorization.
  • Obtained Board approval for a quarterly dividend of $0.59 per share, payable July 19, 2021. This represents an 11 % enhance in comparison with the identical interval final 12 months.

Ahead-looking Steering

Intuit introduced steering for the fourth quarter of fiscal 12 months 2021, which ends July 31. The corporate expects:

  • Income development of roughly 26 to twenty-eight %.
  • GAAP earnings per share of $0.78 to $0.83.
  • Non-GAAP diluted earnings per share of $1.55 to $1.60.

Intuit raised steering for full fiscal 12 months 2021. The corporate expects:

  • Income of $9.362 billion to $9.400 billion, development of roughly 22 %, up from earlier steering for development of 15 to 17 %.
  • GAAP working earnings of $2.350 billion to $2.370 billion, development of roughly 8 to 9 %.
  • Non-GAAP working earnings of $3.340 billion to $3.360 billion, development of roughly 25 to 26 %.
  • GAAP diluted earnings per share of $6.96 to $7.01, a rise of roughly 1 %.
  • Non-GAAP diluted earnings per share of $9.32 to $9.37, development of roughly 19 %.

The corporate additionally up to date phase income outcomes. For fiscal 12 months 2021, the corporate now expects:

  • Small Enterprise and Self-Employed Group: development of 14 %.
  • Client Group: development of 11 to 12 %.
  • ProConnect Group: development of two %.
  • Credit score Karma: income of $775 million to $785 million.

Convention Name Particulars

Intuit executives will talk about the monetary outcomes on a convention name at 1:30 p.m. Pacific time on Could 25. To listen to the decision, dial 866-417-5279 in the US or 409-937-8904 from worldwide areas. No reservation or entry code is required. The convention name can be heard stay at http://buyers.intuit.com/Occasions/default.aspx. Ready remarks for the decision shall be obtainable on Intuit’s web site after the decision ends.

Replay Info

A replay of the convention name shall be obtainable for one week by calling 855-859-2056, or 404-537-3406 from worldwide areas. The entry code for this name is 8977592. The audio webcast will stay obtainable on Intuit’s web site for one week after the convention name.

About Intuit

Intuit is a world know-how platform that helps our clients and communities overcome their most vital monetary challenges. Serving roughly 100 million clients worldwide with TurboTax, QuickBooks, Mint and Credit score Karma, we imagine that everybody ought to have the chance to prosper. We by no means cease working to search out new, progressive methods to make that doable. Please go to us for the most recent details about Intuit, our services and products, and discover us on social.

About Non-GAAP Monetary Measures

This press launch and the accompanying tables embrace non-GAAP monetary measures. For an outline of those non-GAAP monetary measures, together with the explanations administration makes use of every measure, and reconciliations of those non-GAAP monetary measures to essentially the most immediately comparable monetary measures ready in accordance with Usually Accepted Accounting Ideas, please see the part of the accompanying tables titled “About Non-GAAP Monetary Measures” in addition to the associated Desk B1, Desk B2, and Desk E. A duplicate of the press launch issued by Intuit at present could be discovered on the investor relations web page of Intuit’s web site.

Cautions About Ahead-looking Statements

This press launch include forward-looking statements, together with the dimensions of the marketplace for tax preparation software program and the timing of when people will file their tax returns, forecasts and timing of anticipated development and future monetary outcomes of Intuit and its reporting segments, together with Credit score Karma; Intuit’s prospects for the enterprise in fiscal 2021 and past; expectations relating to timing and development of income from present or future services and products; expectations relating to buyer development; expectations relating to Intuit’s company tax charge; expectations relating to adjustments to our merchandise and their influence on Intuit’s enterprise; expectations relating to the quantity and timing of any future dividends or share repurchases; expectations relating to availability of our choices; expectations relating to the influence of our strategic selections on Intuit’s enterprise; and all the statements beneath the heading “Ahead-looking Steering.”

As a result of these forward-looking statements contain dangers and uncertainties, there are vital components that would trigger our precise outcomes to vary materially from the expectations expressed within the forward-looking statements. These dangers and uncertainties could also be amplified by the COVID-19 pandemic, which has precipitated vital world financial instability and uncertainty. These components embrace, with out limitation, the next: our capacity to compete efficiently; our participation within the Free File Alliance; potential governmental encroachment in our tax companies; our capacity to adapt to technological change; our capacity to foretell shopper habits; our reliance on third-party mental property; our capacity to guard our mental property rights; any hurt to our status; dangers related to acquisition and divestiture exercise, together with the acquisition and integration of Credit score Karma; the issuance of fairness or incurrence of debt to fund an acquisition; our cybersecurity incidents (together with these affecting the third events we depend on); buyer considerations about privateness and cybersecurity incidents; fraudulent actions by third events utilizing our choices; our failure to course of transactions successfully; interruption or failure of our info know-how; our capacity to take care of crucial third-party enterprise relationships; our capacity to draw and retain expertise; any deficiency within the high quality or accuracy of our merchandise (together with the recommendation given by specialists on our platform); any delays in product launches; difficulties in processing or submitting buyer tax submissions; dangers related to worldwide operations; adjustments to public coverage, legal guidelines or laws affecting our companies; litigation by which we’re concerned; the seasonal nature of our tax enterprise; adjustments in tax charges and tax reform laws; world financial adjustments; publicity to credit score, counterparty and different dangers in offering capital to companies; amortization of acquired intangible belongings and impairment expenses; our capacity to repay or in any other case adjust to the phrases of our excellent debt; our capacity to repurchase shares or distribute dividends; volatility of our inventory value; and our capacity to efficiently market our choices. Extra particulars about these and different dangers that will influence our enterprise are included in our Kind 10-Okay for fiscal 2020 and in our different SEC filings. You may find these experiences by our web site at http://buyers.intuit.com. Fiscal 2021 full-year and This autumn steering speaks solely as of the date it was publicly issued by Intuit. Different forward-looking statements characterize the judgment of the administration of Intuit as of the date of this presentation. We don’t undertake any responsibility to replace any forward-looking assertion or different info on this presentation.

TABLE A

INTUIT INC.

GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Three Months Ended

 

9 Months Ended

 

April 30, 2021

 

April 30, 2020

 

April 30, 2021

 

April 30, 2020

Internet income:

 

 

 

 

 

 

 

Product

$

533

 

 

$

443

 

 

$

1,395

 

 

$

1,341

 

Service and different

3,640

 

 

2,559

 

 

5,677

 

 

4,522

 

Complete internet income

4,173

 

 

3,002

 

 

7,072

 

 

5,863

 

Prices and bills:

 

 

 

 

 

 

 

Price of income:

 

 

 

 

 

 

 

Price of product income

16

 

 

16

 

 

53

 

 

57

 

Price of service and different income

565

 

 

405

 

 

1,130

 

 

982

 

Amortization of acquired know-how

14

 

 

5

 

 

35

 

 

17

 

Promoting and advertising and marketing

857

 

 

648

 

 

1,799

 

 

1,624

 

Analysis and growth

464

 

 

332

 

 

1,157

 

 

999

 

Common and administrative

289

 

 

181

 

 

708

 

 

486

 

Amortization of different acquired intangible belongings

54

 

 

2

 

 

92

 

 

5

 

Complete prices and bills [A]

2,259

 

 

1,589

 

 

4,974

 

 

4,170

 

Working earnings

1,914

 

 

1,413

 

 

2,098

 

 

1,693

 

Curiosity expense

(7

)

 

(2

)

 

(22

)

 

(7

)

Curiosity and different earnings (loss), internet

14

 

 

(3

)

 

77

 

 

26

 

Revenue earlier than earnings taxes

1,921

 

 

1,408

 

 

2,153

 

 

1,712

 

Revenue tax provision [B]

457

 

 

324

 

 

471

 

 

331

 

Internet earnings

$

1,464

 

 

$

1,084

 

 

$

1,682

 

 

$

1,381

 

 

 

 

 

 

 

 

 

Primary internet earnings per share

$

5.36

 

 

$

4.15

 

 

$

6.26

 

 

$

5.29

 

Shares utilized in primary per share calculations

273

 

 

261

 

 

269

 

 

261

 

 

 

 

 

 

 

 

 

Diluted internet earnings per share

$

5.30

 

 

$

4.11

 

 

$

6.20

 

 

$

5.24

 

Shares utilized in diluted per share calculations

276

 

 

264

 

 

271

 

 

264

 

 

 

 

 

 

 

 

 

Money dividends declared per frequent share

$

0.59

 

 

$

0.53

 

 

$

1.77

 

 

$

1.59

 

 

See accompanying Notes.

INTUIT INC.

NOTES TO TABLE A

 

[A]

The next desk summarizes the whole share-based compensation expense that we recorded in working earnings for the intervals proven.

 

 

Three Months Ended

 

9 Months Ended

(in hundreds of thousands)

April 30, 2021

 

April 30, 2020

 

April 30, 2021

 

April 30, 2020

Price of income

$

16

 

 

$

15

 

 

$

47

 

 

$

44

 

Promoting and advertising and marketing

51

 

 

27

 

 

127

 

 

86

 

Analysis and growth

82

 

 

36

 

 

187

 

 

111

 

Common and administrative

69

 

 

25

 

 

148

 

 

80

 

Complete share-based compensation expense

$

218

 

 

$

103

 

 

$

509

 

 

$

321

 

 

[B]

We compute our provision for or profit from earnings taxes by making use of the estimated annual efficient tax charge to earnings or loss from recurring operations and including the results of any discrete earnings tax objects particular to the interval.

 

For the three and 9 months ended April 30, 2021, we acknowledged extra tax advantages on share-based compensation of $13 million and $77 million, respectively, in our provision for earnings taxes. For the three and 9 months ended April 30, 2020, we acknowledged extra tax advantages on share-based compensation of $7 million and $59 million, respectively, in our provision for earnings taxes.

 

Our efficient tax charges for the three and 9 months ended April 30, 2021 have been roughly 24% and 22%, respectively. Excluding discrete tax objects primarily associated to share-based compensation tax advantages talked about above, our efficient tax charge for each intervals was roughly 25%.

The distinction from the federal statutory charge of 21% was primarily resulting from state earnings taxes, non-deductible share-based compensation and non-deductible transaction prices associated to the Credit score Karma acquisition, which have been partially offset by the tax profit we obtained from the federal analysis and experimentation credit score.

 

Our efficient tax charges for the three and 9 months ended April 30, 2020 have been roughly 23% and 19%, respectively. Excluding discrete tax objects primarily associated to share-based compensation tax advantages talked about above, our efficient tax charge for each intervals was 24%. The distinction from the federal statutory charge of 21% was primarily resulting from state earnings taxes and non-deductible share-based compensation, which have been partially offset by the tax profit we obtained from the federal analysis and experimentation credit score.

 

Within the present world tax coverage surroundings, the U.S. and different home and international governments proceed to contemplate, and in some circumstances enact, adjustments in company tax legal guidelines. As adjustments happen, we account for finalized laws within the interval of enactment.

TABLE B1

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Fiscal 2021

 

Q1

 

Q2

 

Q3

 

This autumn

 

12 months to Date

GAAP working earnings (loss)

$

209

 

 

$

(25

)

 

$

1,914

 

 

$

 

 

$

2,098

 

Amortization of acquired know-how

7

 

 

14

 

 

14

 

 

 

 

35

 

Amortization of different acquired intangible belongings

2

 

 

36

 

 

54

 

 

 

 

92

 

Skilled charges and transaction prices for enterprise combos

5

 

 

30

 

 

1

 

 

 

 

36

 

Share-based compensation expense

111

 

 

180

 

 

218

 

 

 

 

509

 

Non-GAAP working earnings (loss)

$

334

 

 

$

235

 

 

$

2,201

 

 

$

 

 

$

2,770

 

 

 

 

 

 

 

 

 

 

 

GAAP internet earnings (loss)

$

198

 

 

$

20

 

 

$

1,464

 

 

$

 

 

$

1,682

 

Amortization of acquired know-how

7

 

 

14

 

 

14

 

 

 

 

35

 

Amortization of different acquired intangible belongings

2

 

 

36

 

 

54

 

 

 

 

92

 

Skilled charges and transaction prices for enterprise combos

5

 

 

30

 

 

1

 

 

 

 

36

 

Share-based compensation expense

111

 

 

180

 

 

218

 

 

 

 

509

 

Internet (achieve) loss on debt securities and different investments

(7

)

 

(8

)

 

 

 

 

 

(15

)

Achieve from sale of word receivable [A]

 

 

(30

)

 

 

 

 

 

(30

)

Revenue tax results and changes [B]

(66

)

 

(57

)

 

(73

)

 

 

 

(196

)

Non-GAAP internet earnings (loss)

$

250

 

 

$

185

 

 

$

1,678

 

 

$

 

 

$

2,113

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted internet earnings (loss) per share

$

0.75

 

 

$

0.07

 

 

$

5.30

 

 

$

 

 

$

6.20

 

Amortization of acquired know-how

0.03

 

 

0.05

 

 

0.05

 

 

 

 

0.13

 

Amortization of different acquired intangible belongings

 

 

0.14

 

 

0.19

 

 

 

 

0.34

 

Skilled charges and transaction prices for enterprise combos

0.02

 

 

0.11

 

 

 

 

 

 

0.13

 

Share-based compensation expense

0.42

 

 

0.66

 

 

0.79

 

 

 

 

1.88

 

Internet (achieve) loss on debt securities and different investments

(0.03

)

 

(0.03

)

 

 

 

 

 

(0.06

)

Achieve from sale of word receivable [A]

 

 

(0.11

)

 

 

 

 

 

(0.11

)

Revenue tax results and changes [B]

(0.25

)

 

(0.21

)

 

(0.26

)

 

 

 

(0.72

)

Non-GAAP diluted internet earnings (loss) per share

$

0.94

 

 

$

0.68

 

 

$

6.07

 

 

$

 

 

$

7.79

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in GAAP diluted per share calculation

265

 

 

273

 

 

276

 

 

 

 

271

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in non-GAAP diluted per share calculation

265

 

 

273

 

 

276

 

 

 

 

271

 

[A]

Through the three months ended January 31, 2021, we recorded a $30 million achieve from the sale of a word receivable that was beforehand written off.

 

[B]

As mentioned in “About Non-GAAP Monetary Measures – Revenue Tax Results and Changes” following Desk E, our long-term non-GAAP tax charge eliminates the results of non-recurring and period-specific objects. Revenue tax changes consist primarily of the tax influence of the non-GAAP pre-tax changes and the surplus tax advantages on share-based compensation.

 

See “About Non-GAAP Monetary Measures” instantly following Desk E for info on these measures, the objects excluded from essentially the most immediately comparable GAAP measures in arriving at non-GAAP monetary measures, and the explanations administration makes use of every measure and excludes the desired quantities in arriving at every non-GAAP monetary measure.

TABLE B2

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Fiscal 2020

 

Q1

 

Q2

 

Q3

 

This autumn

 

Full 12 months

GAAP working earnings (loss)

$

10

 

 

$

270

 

 

$

1,413

 

 

$

483

 

 

$

2,176

 

Amortization of acquired know-how

6

 

 

6

 

 

5

 

 

5

 

 

22

 

Amortization of different acquired intangible belongings

2

 

 

1

 

 

2

 

 

1

 

 

6

 

Skilled charges and transaction prices for enterprise combos

 

 

 

 

16

 

 

13

 

 

29

 

Share-based compensation expense

111

 

 

107

 

 

103

 

 

114

 

 

435

 

Non-GAAP working earnings (loss)

$

129

 

 

$

384

 

 

$

1,539

 

 

$

616

 

 

$

2,668

 

 

 

 

 

 

 

 

 

 

 

GAAP internet earnings (loss)

$

57

 

 

$

240

 

 

$

1,084

 

 

$

445

 

 

$

1,826

 

Amortization of acquired know-how

6

 

 

6

 

 

5

 

 

5

 

 

22

 

Amortization of different acquired intangible belongings

2

 

 

1

 

 

2

 

 

1

 

 

6

 

Skilled charges and transaction prices for enterprise combos

 

 

 

 

16

 

 

13

 

 

29

 

Share-based compensation expense

111

 

 

107

 

 

103

 

 

114

 

 

435

 

Internet (achieve) loss on debt securities and different investments

1

 

 

1

 

 

2

 

 

1

 

 

5

 

Revenue tax results and changes [A]

(68

)

 

(49

)

 

(29

)

 

(102

)

 

(248

)

Non-GAAP internet earnings (loss)

$

109

 

 

$

306

 

 

$

1,183

 

 

$

477

 

 

$

2,075

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted internet earnings (loss) per share

$

0.22

 

 

$

0.91

 

 

$

4.11

 

 

$

1.68

 

 

$

6.92

 

Amortization of acquired know-how

0.02

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.08

 

Amortization of different acquired intangible belongings

0.01

 

 

 

 

0.01

 

 

 

 

0.02

 

Skilled charges and transaction prices for enterprise combos

 

 

 

 

0.06

 

 

0.05

 

 

0.11

 

Share-based compensation expense

0.42

 

 

0.41

 

 

0.39

 

 

0.44

 

 

1.65

 

Internet (achieve) loss on debt securities and different investments

 

 

 

 

0.01

 

 

 

 

0.02

 

Revenue tax results and changes [A]

(0.26

)

 

(0.18

)

 

(0.11

)

 

(0.38

)

 

(0.94

)

Non-GAAP diluted internet earnings (loss) per share

$

0.41

 

 

$

1.16

 

 

$

4.49

 

 

$

1.81

 

 

$

7.86

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in GAAP diluted per share calculation

264

 

 

264

 

 

264

 

 

264

 

 

264

 

 

 

 

 

 

 

 

 

 

 

Shares utilized in non-GAAP diluted per share calculation

264

 

 

264

 

 

264

 

 

264

 

 

264

[A]

As mentioned in “About Non-GAAP Monetary Measures – Revenue Tax Results and Changes” following Desk E, our long-term non-GAAP tax charge eliminates the results of non-recurring and period-specific objects. Revenue tax changes consist primarily of the tax influence of the non-GAAP pre-tax changes and the surplus tax advantages on share-based compensation.

 

See “About Non-GAAP Monetary Measures” instantly following Desk E for info on these measures, the objects excluded from essentially the most immediately comparable GAAP measures in arriving at non-GAAP monetary measures, and the explanations administration makes use of every measure and excludes the desired quantities in arriving at every non-GAAP monetary measure.

TABLE C

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In hundreds of thousands)

(Unaudited)

 

 

April 30, 2021

 

July 31, 2020

ASSETS

 

 

 

Present belongings:

 

 

 

Money and money equivalents

$

3,164

 

 

$

6,442

 

Investments

952

 

 

608

 

Accounts receivable, internet

554

 

 

149

 

Revenue taxes receivable

4

 

 

12

 

Pay as you go bills and different present belongings

305

 

 

314

 

Present belongings earlier than funds held for purchasers

4,979

 

 

7,525

 

Funds held for purchasers

348

 

 

455

 

Complete present belongings

5,327

 

 

7,980

 

 

 

 

 

Lengthy-term investments

41

 

 

19

 

Property and tools, internet

791

 

 

734

 

Working lease right-of-use belongings

370

 

 

226

 

Goodwill

5,614

 

 

1,654

 

Acquired intangible belongings, internet

3,321

 

 

28

 

Lengthy-term deferred earnings taxes

7

 

 

65

 

Different belongings

287

 

 

225

 

Complete belongings

$

15,758

 

 

$

10,931

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Present liabilities:

 

 

 

Brief-term debt

$

 

 

$

1,338

 

Accounts payable

601

 

 

305

 

Accrued compensation and associated liabilities

476

 

 

482

 

Deferred income

650

 

 

652

 

Revenue taxes payable

218

 

 

11

 

Different present liabilities

419

 

 

286

 

Present liabilities earlier than buyer fund deposits

2,364

 

 

3,074

 

Buyer fund deposits

348

 

 

455

 

Complete present liabilities

2,712

 

 

3,529

 

 

 

 

 

Lengthy-term debt

2,033

 

 

2,031

 

Lengthy-term deferred earnings tax liabilities

637

 

 

2

 

Working lease liabilities

365

 

 

221

 

Different long-term obligations

56

 

 

42

 

Complete liabilities

5,803

 

 

5,825

 

 

 

 

 

Stockholders’ fairness

9,955

 

 

5,106

 

Complete liabilities and stockholders’ fairness

$

15,758

 

 

$

10,931

 

TABLE D

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In hundreds of thousands)

(Unaudited)

 

 

 

 

 

9 Months Ended

 

April 30, 2021

 

April 30, 2020

Money flows from working actions:

 

 

 

Internet earnings

$

1,682

 

 

$

1,381

 

Changes to reconcile internet earnings to internet money supplied by working actions:

 

 

 

Depreciation

122

 

 

145

 

Amortization of acquired intangible belongings

128

 

 

23

 

Non-cash working lease value

45

 

 

46

 

Share-based compensation expense

509

 

 

321

 

Deferred earnings taxes

69

 

 

(102

)

Different

(49

)

 

22

 

Complete changes

824

 

 

455

 

Originations of loans held on the market

(41

)

 

 

Sale and principal funds of loans held on the market

144

 

 

 

Modifications in working belongings and liabilities:

 

 

 

Accounts receivable

(267

)

 

(132

)

Revenue taxes receivable

68

 

 

58

 

Pay as you go bills and different belongings

(7

)

 

(55

)

Accounts payable

194

 

 

111

 

Accrued compensation and associated liabilities

(122

)

 

(32

)

Deferred income

(13

)

 

15

 

Revenue taxes payable

206

 

 

322

 

Working lease liabilities

(45

)

 

(42

)

Different liabilities

85

 

 

46

 

Complete adjustments in working belongings and liabilities

99

 

 

291

 

Internet money supplied by working actions

2,708

 

 

2,127

 

Money flows from investing actions:

 

 

 

Purchases of company and buyer fund investments

(904

)

 

(487

)

Gross sales of company and buyer fund investments

152

 

 

105

 

Maturities of company and buyer fund investments

401

 

 

408

 

Purchases of property and tools

(101

)

 

(107

)

Acquisitions of companies, internet of money acquired

(3,064

)

 

 

Originations of time period loans to small companies

(135

)

 

(240

)

Principal repayments of time period loans from small companies

86

 

 

229

 

Different

37

 

 

(19

)

Internet money utilized in investing actions

(3,528

)

 

(111

)

Money flows from financing actions:

 

 

 

Repayments on borrowings beneath unsecured revolving credit score facility

(1,000

)

 

 

Compensation of debt

(338

)

 

(38

)

Proceeds from issuance of inventory beneath worker inventory plans

137

 

 

160

 

Funds for worker taxes withheld upon vesting of restricted inventory items

(245

)

 

(128

)

Money paid for purchases of treasury inventory

(542

)

 

(323

)

Dividends and dividend rights paid

(482

)

 

(419

)

Internet change in buyer fund deposits

(107

)

 

(47

)

Different

(2

)

 

(1

)

Internet money utilized in financing actions

(2,579

)

 

(796

)

Impact of alternate charges on money, money equivalents, restricted money, and restricted money equivalents

14

 

 

(12

)

Internet enhance (lower) in money, money equivalents, restricted money, and restricted money equivalents

(3,385

)

 

1,208

 

Money, money equivalents, restricted money, and restricted money equivalents at starting of interval

6,697

 

 

2,352

 

Money, money equivalents, restricted money, and restricted money equivalents at finish of interval

$

3,312

 

 

$

3,560

 

Reconciliation of money, money equivalents, restricted money, and restricted money equivalents reported throughout the condensed consolidated stability sheets to the whole quantities reported on the condensed consolidated statements of money flows

 

 

 

Money and money equivalents

$

3,164

 

 

$

3,371

 

Restricted money and restricted money equivalents included in funds held for purchasers [A]

148

 

 

189

 

Complete money, money equivalents, restricted money, and restricted money equivalents at finish of interval

$

3,312

 

 

$

3,560

 

 

 

 

 

Supplemental schedule of non-cash investing actions:

 

 

 

Issuance of frequent inventory in a enterprise mixture

$

3,798

 

 

$

 

[A]

See quarterly experiences filed on Kind 10-Q for reconciliation of funds held for purchasers by funding class.

TABLE E

INTUIT INC.

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

(In hundreds of thousands, besides per share quantities)

(Unaudited)

 

 

Ahead-Trying Steering

 

GAAP

Vary of Estimate

 

 

 

Non-GAAP

Vary of Estimate

 

From

 

To

 

Adjmts

 

From

 

To

Three Months Ending July 31, 2021

 

 

 

 

 

 

 

 

 

Income

$

2,290

 

 

$

2,328

 

 

$

 

 

$

2,290

 

 

$

2,328

 

Working earnings

$

250

 

 

$

270

 

 

$

320

 

[a]

$

570

 

 

$

590

 

Diluted earnings per share

$

0.78

 

 

$

0.83

 

 

$

0.77

 

[b]

$

1.55

 

 

$

1.60

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ending July 31, 2021

 

 

 

 

 

 

 

 

 

Income

$

9,362

 

 

$

9,400

 

 

$

 

 

$

9,362

 

 

$

9,400

 

Working earnings

$

2,350

 

 

$

2,370

 

 

$

990

 

[c]

$

3,340

 

 

$

3,360

 

Diluted earnings per share

$

6.96

 

 

$

7.01

 

 

$

2.36

 

[d]

$

9.32

 

 

$

9.37

 

See “About Non-GAAP Monetary Measures” instantly following Desk E for info on these measures, the objects excluded from essentially the most immediately comparable GAAP measures in arriving at non-GAAP monetary measures, and the explanations administration makes use of every measure and excludes the desired quantities in arriving at every non-GAAP monetary measure.
 

[a]

Displays estimated changes for share-based compensation expense of roughly $249 million; amortization of acquired know-how of roughly $15 million; and amortization of different acquired intangible belongings of roughly $56 million.

 

[b]

Displays estimated changes in merchandise [a], earnings taxes associated to those changes, and different earnings tax results associated to using the non-GAAP tax charge.

 

[c]

Displays estimated changes for share-based compensation expense of roughly $756 million; skilled charges and transaction prices primarily associated to the acquisition of Credit score Karma of roughly $36 million; amortization of acquired know-how of roughly $50 million; and amortization of different acquired intangibles of roughly $148 million.

 

[d]

Displays estimated changes in merchandise [c], earnings taxes associated to those changes, a $30 million achieve from the sale of a word receivable that was beforehand written off, and different earnings tax results associated to using the non-GAAP tax charge.

INTUIT INC.

ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press launch dated Could 25, 2021 accommodates non-GAAP monetary measures. Desk B1, Desk B2, and Desk E reconcile the non-GAAP monetary measures in that press launch to essentially the most immediately comparable monetary measures ready in accordance with Usually Accepted Accounting Ideas (GAAP). These non-GAAP monetary measures embrace non-GAAP working earnings (loss), non-GAAP internet earnings (loss) and non-GAAP internet earnings (loss) per share.

Non-GAAP monetary measures shouldn’t be thought of as an alternative to, or superior to, measures of economic efficiency ready in accordance with GAAP. These non-GAAP monetary measures don’t mirror a complete system of accounting, differ from GAAP measures with the identical names, and will differ from non-GAAP monetary measures with the identical or comparable names which are utilized by different corporations.

We compute non-GAAP monetary measures utilizing the identical constant methodology from quarter to quarter and 12 months to 12 months. We might contemplate whether or not different vital objects that come up sooner or later ought to be excluded from our non-GAAP monetary measures.

We exclude the next objects from all of our non-GAAP monetary measures:

  • Share-based compensation expense
  • Amortization of acquired know-how
  • Amortization of different acquired intangible belongings
  • Goodwill and intangible asset impairment expenses
  • Beneficial properties and losses on disposals of companies and long-lived belongings
  • Skilled charges and transaction prices for enterprise combos

We additionally exclude the next objects from non-GAAP internet earnings (loss) and diluted internet earnings (loss) per share:

  • Beneficial properties and losses on debt and fairness securities and different investments
  • Revenue tax results and changes
  • Discontinued operations

We imagine these non-GAAP monetary measures present significant supplemental info relating to Intuit’s working outcomes primarily as a result of they exclude quantities that we don’t contemplate a part of ongoing working outcomes when planning and forecasting and when assessing the efficiency of the group, our particular person working segments, or our senior administration. Section managers aren’t held accountable for share-based compensation expense, amortization, or the opposite excluded objects and, accordingly, we exclude these quantities from our measures of phase efficiency. We imagine our non-GAAP monetary measures additionally facilitate the comparability by administration and buyers of outcomes for present intervals and steering for future intervals with outcomes for previous intervals.

The next are descriptions of the objects we exclude from our non-GAAP monetary measures.

Share-based compensation bills. These include non-cash bills for inventory choices, restricted inventory items, and our Worker Inventory Buy Plan. When contemplating the influence of fairness awards, we place better emphasis on total shareholder dilution slightly than the accounting expenses related to these awards.

Amortization of acquired know-how and amortization of different acquired intangible belongings. Once we purchase a enterprise in a enterprise mixture, we’re required by GAAP to document the truthful values of the intangible belongings of the enterprise and amortize them over their helpful lives. Amortization of acquired know-how in value of income consists of amortization of software program and different know-how belongings of acquired companies. Amortization of different acquired intangible belongings in working bills consists of amortization of belongings resembling buyer lists, covenants to not compete, and commerce names.

Goodwill and intangible asset impairment expenses. We exclude from our non-GAAP monetary measures non-cash expenses to regulate the carrying values of goodwill and different acquired intangible belongings to their estimated truthful values.

Beneficial properties and losses on disposals of companies and long-lived belongings. We exclude from our non-GAAP monetary measures positive aspects and losses on disposals of companies and long-lived belongings as a result of they’re unrelated to our ongoing enterprise working outcomes.

Skilled charges and transaction prices for enterprise combos. We exclude from our non-GAAP monetary measures the skilled charges we incur to finish enterprise combos. These embrace funding banking, authorized, and accounting charges.

Beneficial properties and losses on debt and fairness securities and different investments. We exclude from our non-GAAP monetary measures positive aspects and losses that we document once we impair available-for-sale debt and fairness securities and different investments.

Revenue tax results and changes. We use a long-term non-GAAP tax charge for evaluating working outcomes and for planning, forecasting, and analyzing future intervals. This long-term non-GAAP tax charge excludes the earnings tax results of the non-GAAP pre-tax changes described above, and eliminates the results of non-recurring and interval particular objects which might differ in dimension and frequency. Based mostly on our present long-term projections, we’re utilizing a long-term non-GAAP tax charge of 23% for fiscal 2020 and 24% for fiscal 2021. This long-term non-GAAP tax charge may very well be topic to alter for varied causes together with vital adjustments in our geographic earnings combine or basic tax regulation adjustments in main jurisdictions by which we function. We’ll consider this long-term non-GAAP tax charge on an annual foundation and at any time when any vital occasions happen which can materially have an effect on this charge.

Working outcomes and positive aspects and losses on the sale of discontinued operations. Now and again, we promote or in any other case eliminate chosen operations as we alter our portfolio of companies to satisfy our strategic objectives. In accordance with GAAP, we segregate the working outcomes of discontinued operations in addition to positive aspects and losses on the sale of those discontinued operations from persevering with operations on our GAAP statements of operations however proceed to incorporate them in GAAP internet earnings or loss and internet earnings or loss per share. We exclude these quantities from our non-GAAP monetary measures.

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