Intuit Announces Record Third-Quarter Revenue; Raises Full-Year Revenue and Earnings Guidance
Third-Quarter Revenue Totals $1.15 Billion, up 21 Percent Over Prior Year.
MOUNTAIN VIEW, Calif.- Intuit Inc. (Nasdaq: INTU) today announced its third-quarter 2007 revenue increased 21 percent over the year-ago quarter to $1.15 billion. This marks the first time Intuit revenue has exceeded $1 billion in a quarter.
Growth was driven by a strong tax season, excellent performance in QuickBooks and the acquisition of Digital Insight to create a Financial Institutions segment. Revenue for the first nine months of the fiscal year grew 14 percent.
“We had great results from all of our businesses this quarter,” said Steve Bennett, Intuit’s president and chief executive officer. “Our two biggest growth engines, Tax and Small Business, continue to perform very well and our newest growth engine, Financial Institutions, is also making a significant contribution. We’re on track for another year of double-digit revenue and earnings growth.”
Third-Quarter 2007 Financial Highlights
Intuit posted GAAP (Generally Accepted Accounting Principles) net income of $367 million in the quarter compared to $299 million in the third quarter of 2006. This represents diluted net income per share of $1.04 compared to diluted net income per share of $0.84 in the year-ago quarter. Intuit posted non-GAAP net income of $399 million, or $1.13 per share versus $318 million, or $0.89 per share in the third quarter of 2006.
Third-Quarter 2007 Business Segment Results
* Consumer Tax revenue was $567 million, up 14 percent over the year-ago quarter. Consumer Tax revenue is up 15 percent year-to-date.
* Professional Tax revenue was $138 million, up 32 percent over the year-ago quarter. Professional Tax revenue is up 6 percent year-to-date.
* QuickBooks revenue was $155 million, up 22 percent over the year-ago quarter. QuickBooks revenue is up 10 percent year-to-date.
* Payroll and Payments revenue was $125 million, up 7 percent over the year-ago quarter. Excluding the impact of the outsourced payroll customers transitioning to ADP, revenue growth would have been 13 percent in the third quarter. Payroll and Payments revenue is up 14 percent year-to-date.
* Financial Institutions revenue was $65 million and includes the results of Digital Insight, which was acquired on Feb. 6.
* Other Businesses revenue of $104 million was up 6 percent over the year-ago quarter.
Intuit updated its revenue, GAAP diluted earnings per share, and non-GAAP diluted earnings per share guidance for fiscal 2007, which ends on July 31. The company now expects:
* Revenue – Former guidance: $2.625 billion to $2.675 billion, representing annual growth of 12 percent to 14 percent. New guidance: $2.685 billion to $2.7 billion, representing annual growth of approximately 15 percent.
* GAAP diluted earnings per share – Former guidance: $1.10 to $1.14. New guidance: $1.15 to $1.17.
* Non-GAAP diluted earnings per share – Former guidance: $1.33 to $1.37. New guidance: $1.38 to $1.40. The new guidance represents annual EPS growth of 14 percent to 16 percent.
The company’s guidance for the fourth quarter of 2007 is unchanged. Additional details are available on Intuit’s Web site at http://web.intuit.com/about_intuit/investors/earnings/2007/.
Company Announces New Stock Repurchase Program
Intuit also announced today a new stock repurchase program for up to $800 million over the next three years. Intuit used all remaining funds in its last $500 million repurchase program, authorized in May 2006, during its third-quarter 2007, which ended on April 30. Since authorizing its first stock repurchase program in May 2001, Intuit has spent approximately $3.7 billion to repurchase approximately 159 million shares of its stock.
Webcast and Conference Call Information
A live audio webcast of Intuit’s third-quarter 2007 conference call is available at http://web.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. PDT. The replay of the audio webcast will remain on Intuit’s Web site for one week after the conference call. Intuit has also posted this press release, including the attached tables and non-GAAP to GAAP reconciliations on its Web site and will post the conference call script shortly after the conference call concludes. These documents may be found at http://web.intuit.com/about_intuit/investors/earnings/2007/.
The conference call number is 866-802-4328 in the United States or 703-639-1322 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The access code for this call is 1077233.
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