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Intuit Third Quarter Revenue Declined 8 Percent; Small Business Online Ecosystem Revenue Grew 28 Percent

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Intuit Inc. (Nasdaq: INTU), maker of TurboTax, QuickBooks and Mint, announced financial results for the third quarter of fiscal 2020, which ended April 30.


"During the first half of the fiscal year we grew total company revenue 14 percent, and we saw this momentum continue into the beginning of the third quarter. However, the COVID-19 pandemic resulted in the IRS extending the tax filing deadline to July 15. This caused the timing of millions of tax filings to shift later in the season, resulting in total revenue declining 8 percent in the quarter," said Sasan Goodarzi, Intuit’s chief executive officer. "Additionally, the shelter-in-place directives negatively impacted small businesses who are facing loss of income and cash flow to pay employees and weather the storm."

Financial Highlights

For the third quarter, Intuit reported:

  • Total revenue of $3.0 billion, down 8 percent.
  • Small Business and Self-Employed Group revenue up 11 percent to $1.0 billion.
  • Small Business Online Ecosystem revenue grew 28 percent.
  • Consumer Group revenue declined 15 percent to $1.8 billion.

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 Third-quarter Results

 

   

GAAP

   

Non-GAAP

 

   

Q3
FY20

 

 

Q3
FY19

 

 

Change

 

 

Q3
FY20

 

 

Q3
FY19

 

 

Change

Revenue

   

$3,002

 

 

$3,272

 

 

(8)%

 

 

$3,002

 

 

$3,272

 

 

(8)%

Operating Income

   

$1,413

 

 

$1,784

 

 

(21)%

 

 

$1,539

 

 

$1,888

 

 

(18)%

Earnings Per Share

   

$4.11

 

 

$5.22

 

 

(21)%

 

 

$4.49

 

 

$5.55

 

 

(19)%

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

Consumer and Strategic Partner Groups

  • Reported $1.8 billion of Consumer Group revenue for the third quarter, down 15 percent, reflecting a shift of a significant portion of tax filings and related revenue out of the third quarter and into the fourth quarter.
  • Drove DIY category growth of 2.2 percent, outpacing assisted category decline of 18.8 percent while total e-files were down 9.6 percent, based on IRS data through May 8. Because this data includes stimulus filings for individuals not usually required to file a tax return, it is not comparable to prior year data.
  • The company expects more of its customers with complex returns to file later in the extended season. TurboTax Online share and average revenue per customer remain on track for the season.
  • Reported $193 million of professional tax revenue in the Strategic Partner Group for the third quarter, down 18 percent, reflecting the impact of the extended deadline on the timing of consumer tax filings completed by accountants.

Small Business and Self-Employed Group

  • For the third fiscal quarter:
    • Grew QuickBooks online accounting revenue 36 percent in the quarter, driven primarily by customer growth, higher effective prices and, to a lesser extent, mix-shift.
    • Increased Online Services revenue 16 percent, driven by QuickBooks Online payroll and QuickBooks Online payments.
  • During the second half of the quarter:
    • The majority of Intuit's customers, which are service-based businesses, were negatively impacted by shelter-in-place.
    • QuickBooks Online new customer acquisition decelerated by approximately 15 points versus the first half of the quarter and retention within the existing base decreased by 2 points. Despite these headwinds, the customer base and average revenue per customer are expected to grow in fiscal year 2020.
    • After growing approximately 30 percent through mid-March, online payments charge volume growth decelerated and was flat.
    • Within online payroll, after an increase of 20 percent year-over-year in workers paid through mid-March, workers paid decreased 10 percent year-over-year. After the total number of companies running payroll grew approximately 15 percent year-over-year through mid-March, the number of companies running payroll was approximately flat.
  • QuickBooks Capital has funded $680 million in loans since being launched over 2 years ago. At the end of the third quarter, the net loans receivable balance was $89 million. Loans from the Paycheck Protection Program (PPP) through QuickBooks Capital as of April 30 were insignificant.
  • Since April 30, 2020, Intuit helped make available just over $875 million of approved small business loans to customers from the PPP through QuickBooks Capital as of May 20.

Capital Allocation Summary

In the third quarter the company:

  • Had a total cash and investments balance of approximately $4 billion as of April 30. Intuit drew down the full amount of its $1 billion revolving credit facility on May 7 to maintain financial flexibility.
  • Repurchased $40 million of shares, with $2.4 billion remaining on the company's authorization.
  • Received Board approval for a quarterly dividend of $0.53 per share, payable July 20, 2020. This represents a 13 percent increase compared to the same period last year.

Conference Call Details

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on May 21. To hear the call, dial 844-246-4601 in the United States or 703-639-1172 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.

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 9161407. The audio webcast will remain available on Intuit’s website for one week after the conference call.

About Intuit

Intuit’s mission is to Power Prosperity Around the World. We are a global financial platform company with products including TurboTax, QuickBooks, Mint and Turbo, designed to empower consumers, self-employed and small businesses to improve their financial lives. Our platform and products help customers get more money with the least amount of work, while giving them complete confidence in their actions and decisions. Our innovative ecosystem of financial management solutions serves approximately 50 million customers worldwide. Please visit us for the latest news and in-depth information about Intuit and its brands 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 and Table B2. 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 contains forward-looking statements, including the impact of the COVID-19 pandemic on Intuit’s business; the timing of when individuals will file their tax returns; Intuit’s prospects for the business in fiscal 2020 and beyond; expectations regarding timing and growth of revenue for each of Intuit’s reportable segments and from current or future products and services; expectations regarding customer growth; 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 Intuit’s corporate tax rate; and expectations regarding the impact of our strategic decisions on Intuit’s business.

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 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; 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 risk of the businesses we provide capital to; amortization of acquired intangible assets and impairment charges; our ability to repay 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 2019 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. 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

 

Nine Months Ended

 

April 30,
2020

 

April 30,
2019

 

April 30,
2020

 

April 30,
2019

Net revenue:

 

 

 

 

 

 

 

Product

$

 

443

 

 

$

 

498

 

 

$

 

1,341

 

 

$

 

1,378

 

Service and other

 

2,559

 

 

 

2,774

 

 

 

4,522

 

 

 

4,412

 

Total net revenue

 

3,002

 

 

 

3,272

 

 

 

5,863

 

 

 

5,790

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

Cost of product revenue

 

16

 

 

 

19

 

 

 

57

 

 

 

60

 

Cost of service and other revenue

 

405

 

 

 

330

 

 

 

982

 

 

 

811

 

Amortization of acquired technology

 

5

 

 

 

5

 

 

 

17

 

 

 

15

 

Selling and marketing

 

648

 

 

 

652

 

 

 

1,624

 

 

 

1,546

 

Research and development

 

332

 

 

 

311

 

 

 

999

 

 

 

900

 

General and administrative

 

181

 

 

 

170

 

 

 

486

 

 

 

447

 

Amortization of other acquired intangible assets

 

2

 

 

 

1

 

 

 

5

 

 

 

4

 

Total costs and expenses [A]

 

1,589

 

 

 

1,488

 

 

 

4,170

 

 

 

3,783

 

Operating income

 

1,413

 

 

 

1,784

 

 

 

1,693

 

 

 

2,007

 

Interest expense

 

(2

)

 

 

(4

)

 

 

(7

)

 

 

(12

)

Interest and other income, net

 

(3

)

 

 

17

 

 

 

26

 

 

 

23

 

Income before income taxes

 

1,408

 

 

 

1,797

 

 

 

1,712

 

 

 

2,018

 

Income tax provision [B]

 

324

 

 

 

419

 

 

 

331

 

 

 

417

 

Net income

$

 

1,084

 

 

$

 

1,378

 

 

$

 

1,381

 

 

$

 

1,601

 

 

 

 

 

 

 

 

 

Basic net income per share

$

 

4.15

 

 

$

 

5.30

 

 

$

 

5.29

 

 

$

 

6.16

 

Shares used in basic per share calculations

 

261

 

 

 

260

 

 

 

261

 

 

 

260

 

 

 

 

 

 

 

 

 

Diluted net income per share

$

 

4.11

 

 

$

 

5.22

 

 

$

 

5.24

 

 

$

 

6.06

 

Shares used in diluted per share calculations

 

264

 

 

 

264

 

 

 

264

 

 

 

264

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

$

 

0.53

 

 

$

 

0.47

 

 

$

 

1.59

 

 

$

 

1.41

 

 

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

 

Nine Months Ended

(in millions)

April 30,
2020

 

April 30,
2019

 

April 30,
2020

 

April 30,
2019

Cost of revenue

$

15

 

 

$

15

 

 

$

44

 

 

$

44

 

Selling and marketing

27

 

 

23

 

 

86

 

 

78

 

Research and development

36

 

 

32

 

 

111

 

 

101

 

General and administrative

25

 

 

28

 

 

80

 

 

80

 

Total share-based compensation expense

$

103

 

 

$

98

 

 

$

321

 

 

$

303

 

 

[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, 2020, we recognized excess tax benefits on share-based compensation of $7 million and $59 million, respectively, in our provision for income taxes. For the three and nine months ended April 30, 2019, we recognized excess tax benefits on share-based compensation of $20 million and $69 million, respectively, in our provision for income taxes.

 

Our effective tax rates for the three and nine months ended April 30, 2020 were approximately 23% and 19%, respectively. Excluding discrete tax items primarily related to share-based compensation tax benefits mentioned above, our effective tax rate for the period was 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.

 

Our effective tax rates for the three and nine months ended April 30, 2019 were approximately 23% and 21%. Excluding discrete tax items primarily related to share-based compensation tax benefits mentioned above, our effective tax rate for both periods was 23%. 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.

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 2020

 

Q1

 

Q2

 

Q3

 

Q4

 

Year to Date

GAAP operating income (loss)

$

 

10

 

 

$

 

270

 

 

$

 

1,413

 

 

$

 

 

 

$

 

1,693

 

Amortization of acquired technology

 

6

 

 

 

6

 

 

 

5

 

 

 

 

 

17

 

Amortization of other acquired intangible assets

 

2

 

 

 

1

 

 

 

2

 

 

 

 

 

5

 

Professional fees for business combinations

 

 

 

 

 

16

 

 

 

 

 

16

 

Share-based compensation expense

 

111

 

 

 

107

 

 

 

103

 

 

 

 

 

321

 

Non-GAAP operating income (loss)

$

 

129

 

 

$

 

384

 

 

$

 

1,539

 

 

$

 

 

 

$

 

2,052

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

 

57

 

 

$

 

240

 

 

$

 

1,084

 

 

$

 

 

 

$

 

1,381

 

Amortization of acquired technology

 

6

 

 

 

6

 

 

 

5

 

 

 

 

 

17

 

Amortization of other acquired intangible assets

 

2

 

 

 

1

 

 

 

2

 

 

 

 

 

5

 

Professional fees for business combinations

 

 

 

 

 

16

 

 

 

 

 

16

 

Share-based compensation expense

 

111

 

 

 

107

 

 

 

103

 

 

 

 

 

321

 

Net (gain) loss on debt securities and other investments

 

1

 

 

 

1

 

 

 

2

 

 

 

 

 

4

 

Income tax effects and adjustments [A]

 

(68

)

 

 

(49

)

 

 

(29

)

 

 

 

 

(146

)

Non-GAAP net income (loss)

$

 

109

 

 

$

 

306

 

 

$

 

1,183

 

 

$

 

 

 

$

 

1,598

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted net income (loss) per share

$

 

0.22

 

 

$

 

0.91

 

 

$

 

4.11

 

 

$

 

 

 

$

 

5.24

 

Amortization of acquired technology

 

0.02

 

 

 

0.02

 

 

 

0.02

 

 

 

 

 

0.06

 

Amortization of other acquired intangible assets

 

0.01

 

 

 

 

 

0.01

 

 

 

 

 

0.02

 

Professional fees for business combinations

 

 

 

 

 

0.06

 

 

 

 

 

0.06

 

Share-based compensation expense

 

0.42

 

 

 

0.41

 

 

 

0.39

 

 

 

 

 

1.22

 

Net (gain) loss on debt securities and other investments

 

 

 

 

 

0.01

 

 

 

 

 

0.01

 

Income tax effects and adjustments [A]

 

(0.26

)

 

 

(0.18

)

 

 

(0.11

)

 

 

 

 

(0.55

)

Non-GAAP diluted net income (loss) per share

$

 

0.41

 

 

$

 

1.16

 

 

$

 

4.49

 

 

$

 

 

 

$

 

6.06

 

 

 

 

 

 

 

 

 

 

 

Shares used in GAAP diluted per share calculation

 

264

 

 

 

264

 

 

 

264

 

 

 

 

 

264

 

 

 

 

 

 

 

 

 

 

 

Shares used in non-GAAP diluted per share calculation

 

264

 

 

 

264

 

 

 

264

 

 

 

 

 

264

 

[A]

As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and Adjustments” following Table D, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Other 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 D 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 2019

 

Q1

 

Q2

 

Q3

 

Q4

 

Full Year

GAAP operating income (loss)

$

 

(10

)

 

$

 

233

 

 

$

 

1,784

 

 

$

 

(153

)

 

$

 

1,854

 

Amortization of acquired technology

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

 

 

20

 

Amortization of other acquired intangible assets

 

2

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

6

 

Professional fees for business combinations

 

 

 

 

 

 

 

1

 

 

 

1

 

Share-based compensation expense

 

105

 

 

 

100

 

 

 

98

 

 

 

98

 

 

 

401

 

Non-GAAP operating income (loss)

$

 

102

 

 

$

 

339

 

 

$

 

1,888

 

 

$

 

(47

)

 

$

 

2,282

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

 

34

 

 

$

 

189

 

 

$

 

1,378

 

 

$

 

(44

)

 

$

 

1,557

 

Amortization of acquired technology

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

 

 

20

 

Amortization of other acquired intangible assets

 

2

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

6

 

Professional fees for business combinations

 

 

 

 

 

 

 

1

 

 

 

1

 

Share-based compensation expense

 

105

 

 

 

100

 

 

 

98

 

 

 

98

 

 

 

401

 

Net (gain) loss on debt securities and other investments

 

1

 

 

 

2

 

 

 

2

 

 

 

1

 

 

 

6

 

Income tax effects and adjustments [A]

 

(71

)

 

 

(33

)

 

 

(19

)

 

 

(86

)

 

 

(209

)

Non-GAAP net income (loss)

$

 

76

 

 

$

 

264

 

 

$

 

1,465

 

 

$

 

(23

)

 

$

 

1,782

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted net income (loss) per share

$

 

0.13

 

 

$

 

0.72

 

 

$

 

5.22

 

 

$

 

(0.17

)

 

$

 

5.89

 

Amortization of acquired technology

 

0.02

 

 

 

0.02

 

 

 

0.02

 

 

 

0.02

 

 

 

0.08

 

Amortization of other acquired intangible assets

 

0.01

 

 

 

 

 

 

 

0.01

 

 

 

0.03

 

Professional fees for business combinations

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

0.40

 

 

 

0.38

 

 

 

0.38

 

 

 

0.38

 

 

 

1.52

 

Net (gain) loss on debt securities and other investments

 

 

 

0.01

 

 

 

0.01

 

 

 

 

 

0.02

 

Income tax effects and adjustments [A]

 

(0.27

)

 

 

(0.13

)

 

 

(0.08

)

 

 

(0.33

)

 

 

(0.79

)

Non-GAAP diluted net income (loss) per share

$

 

0.29

 

 

$

 

1.00

 

 

$

 

5.55

 

 

$

 

(0.09

)

 

$

 

6.75

 

 

 

 

 

 

 

 

 

 

 

Shares used in GAAP diluted per share calculation

 

264

 

 

 

264

 

 

 

264

 

 

 

260

 

 

 

264

 

 

 

 

 

 

 

 

 

 

 

Shares used in non-GAAP diluted per share calculation

 

264

 

 

 

264

 

 

 

264

 

 

 

260

 

 

 

264

 

[A]

As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and Adjustments” following Table D, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Other 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 D 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)

 

 

 

 

 

April 30,
2020

 

July 31,
2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

 

3,371

 

 

$

 

2,116

 

Investments

 

600

 

 

 

624

 

Accounts receivable, net

 

219

 

 

 

87

 

Income taxes receivable

 

6

 

 

 

65

 

Prepaid expenses and other current assets

 

277

 

 

 

266

 

Current assets before funds held for customers

 

4,473

 

 

 

3,158

 

Funds held for customers

 

389

 

 

 

436

 

Total current assets

 

4,862

 

 

 

3,594

 

 

 

 

 

Long-term investments

 

19

 

 

 

13

 

Property and equipment, net

 

745

 

 

 

780

 

Operating lease right-of-use assets

 

220

 

 

 

Goodwill

 

1,653

 

 

 

1,655

 

Acquired intangible assets, net

 

34

 

 

 

54

 

Other assets

 

231

 

 

 

187

 

Total assets

$

 

7,764

 

 

$

 

6,283

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Short-term debt

$

 

350

 

 

$

 

50

 

Accounts payable

 

384

 

 

 

274

 

Accrued compensation and related liabilities

 

348

 

 

 

385

 

Deferred revenue

 

632

 

 

 

619

 

Income taxes payable

 

325

 

 

 

4

 

Other current liabilities

 

285

 

 

 

198

 

Current liabilities before customer fund deposits

 

2,324

 

 

 

1,530

 

Customer fund deposits

 

389

 

 

 

436

 

Total current liabilities

 

2,713

 

 

 

1,966

 

 

 

 

 

Long-term debt

 

48

 

 

 

386

 

Long-term deferred income tax liabilities

 

22

 

 

 

37

 

Operating lease liabilities

 

215

 

 

 

Other long-term obligations

 

26

 

 

 

145

 

Total liabilities

 

3,024

 

 

 

2,534

 

 

 

 

 

Stockholders’ equity

 

4,740

 

 

 

3,749

 

Total liabilities and stockholders’ equity

$

 

7,764

 

 

$

 

6,283

 

TABLE D

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

Nine Months Ended

 

April 30,
2020

 

April 30,
2019

Cash flows from operating activities:

 

 

 

Net income

$

 

1,381

 

 

$

 

1,601

 

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

 

 

 

Depreciation

 

145

 

 

 

147

 

Amortization of acquired intangible assets

 

23

 

 

 

19

 

Non-cash operating lease cost

 

46

 

 

 

Share-based compensation expense

 

321

 

 

 

303

 

Deferred income taxes

 

(102

)

 

 

(44

)

Other

 

22

 

 

 

12

 

Total adjustments

 

455

 

 

 

437

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(132

)

 

 

(165

)

Income taxes receivable

 

58

 

 

 

67

 

Prepaid expenses and other assets

 

(55

)

 

 

(30

)

Accounts payable

 

111

 

 

 

205

 

Accrued compensation and related liabilities

 

(32

)

 

 

(55

)

Deferred revenue

 

15

 

 

 

(7

)

Operating lease liabilities

 

(42

)

 

 

Income taxes payable

 

322

 

 

 

334

 

Other liabilities

 

46

 

 

 

59

 

Total changes in operating assets and liabilities

 

291

 

 

 

408

 

Net cash provided by operating activities

 

2,127

 

 

 

2,446

 

Cash flows from investing activities:

 

 

 

Purchases of corporate and customer fund investments

 

(487

)

 

 

(379

)

Sales of corporate and customer fund investments

 

105

 

 

 

60

 

Maturities of corporate and customer fund investments

 

408

 

 

 

175

 

Purchases of property and equipment

 

(107

)

 

 

(129

)

Originations of term loans to small businesses

 

(240

)

 

 

(235

)

Principal repayments of term loans from small businesses

 

229

 

 

 

188

 

Other

 

(19

)

 

 

3

 

Net cash used in investing activities

 

(111

)

 

 

(317

)

Cash flows from financing activities:

 

 

 

Proceeds from borrowings under secured revolving credit facility

 

 

 

48

 

Repayment of debt

 

(38

)

 

 

(38

)

Proceeds from issuance of stock under employee stock plans

 

160

 

 

 

231

 

Payments for employee taxes withheld upon vesting of restricted stock units

 

(128

)

 

 

(93

)

Cash paid for purchases of treasury stock

 

(323

)

 

 

(408

)

Dividends and dividend rights paid

 

(419

)

 

 

(374

)

Net change in customer fund deposits [A]

 

(47

)

 

 

16

 

Other

 

(1

)

 

 

(7

)

Net cash used in financing activities

 

(796

)

 

 

(625

)

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

 

(12

)

 

 

(6

)

Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

1,208

 

 

 

1,498

 

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

 

2,352

 

 

 

1,631

 

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

$

 

3,560

 

 

$

 

3,129

 

 

 

 

 

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the condensed consolidated balance sheet to the total amounts reported on the condensed consolidated statement of cash flows

 

 

 

Cash and cash equivalents

$

 

3,371

 

 

$

 

2,946

 

Restricted cash and restricted cash equivalents included in funds held for customers [B]

 

189

 

 

 

183

 

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

$

 

3,560

 

 

$

 

3,129

 


Contacts

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

Media
Karen Nolan
Intuit Inc.
650-944-6619
karen_nolan@intuit.com


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