Intuit First-Quarter Revenue Grows 8 Percent

Company Updates Full-Year Guidance to 6 Percent - 10 Percent Revenue Growth

MOUNTAIN VIEW, Calif. - Intuit Inc. (Nasdaq: INTU) today announced first-quarter revenue of $481 million, an 8 percent increase over the year-ago quarter.

“First-quarter revenue was within our expected range, and operating income and earnings per share were significantly above our expectations,” said Brad Smith, Intuit’s president and chief executive officer. “It’s clear our customers are facing a challenging economic environment. We believe individuals and small businesses will turn to our products and services to help them save and make money.”

First-Quarter 2009 Financial Highlights

* Revenue of $481 million increased 8 percent from the year-ago quarter.
* GAAP operating loss from continuing operations of $76 million, improved from $103 million in the year-ago quarter. GAAP net loss per share of 16 cents compared to a 6-cent loss per share in the year-ago quarter.
* Non-GAAP operating loss of $29 million improved from $56 million in the year-ago quarter. Non-GAAP net loss per share of 9 cents improved from a 10-cent loss per share in the year-ago quarter.

Intuit typically posts a seasonal loss in its first quarter when there is little revenue from its tax businesses but expenses remain relatively constant. The first quarter 2008 GAAP net loss included a $24 million pretax gain from the sale of outsourced payroll assets and a $27 million gain from discontinued operations.

First-Quarter 2009 Business Segment Results

* QuickBooks revenue was $152 million, up 6 percent over the year-ago quarter.
* Payroll and Payments revenue was $152 million, up 16 percent over the year-ago quarter.
* Consumer Tax revenue was $14 million, up 7 percent over the year-ago quarter.
* Accounting Professionals revenue was $21 million, up 16 percent from the year-ago quarter.
* Financial Institutions revenue was $75 million, up 3 percent from the year-ago quarter.
* Other Businesses revenue was $67 million, flat with the year-ago quarter.

Forward-looking Guidance

Intuit provided guidance for its second quarter of fiscal year 2009, which will end on Jan. 31. Intuit’s expected results for the second quarter are:

* Revenue of $860 million to $880 million, or growth of 3 percent to 5 percent.
* Non-GAAP operating income of $205 million to $219 million, and GAAP operating income of $145 million to $159 million.
* Non-GAAP diluted earnings per share of 40 cents to 42 cents, and GAAP diluted earnings per share of 30 cents to 32 cents.

Intuit also updated its previous guidance for fiscal year 2009 revenue, operating income and fully diluted earnings per share to reflect current expectations. For fiscal 2009 the company now expects:

* Revenue of $3.26 billion to $3.38 billion, or growth of 6 percent to 10 percent. Prior guidance was for growth of 9 percent to 12 percent.
* Non-GAAP operating income of $933 million to $970 million, or growth of 9 percent to 13 percent, and GAAP operating income of $705 million to $742 million. Prior guidance was non-GAAP operating income growth of 13 percent to 16 percent and GAAP operating income of $724 million to $744 million.
* Non-GAAP diluted earnings per share of $1.82 to $1.89, or growth of 14 percent to 18 percent, and GAAP diluted earnings per share of $1.38 to $1.45. These estimates include an approximately 4-cent benefit resulting from a reduced tax rate associated with passage of the research and development tax credit. Prior guidance was non-GAAP diluted earnings per share of $1.86 to $1.90 and GAAP diluted earnings per share of $1.41 to $1.45.

Intuit also updated previously given fiscal 2009 business segment revenue guidance. The company now expects:

* QuickBooks revenue of $650 million to $675 million, or growth of 5 percent to 9 percent. Prior guidance was $670 million to $695 million.
* Payroll and Payments revenue of $619 million to $642 million, or growth of 10 percent to 14 percent. Prior guidance was $639 million to $662 million.
* Consumer Tax revenue of $1.0 billion to $1.04 billion, or growth of 8 percent to 12 percent, unchanged from prior guidance.
* Accounting Professionals revenue of $345 million to $358 million, or growth of 5 percent to 9 percent, unchanged from prior guidance.
* Financial Institutions revenue of $313 million to $325 million, or growth of 5 percent to 9 percent, unchanged from prior guidance.
* Other Businesses revenue of $320 million to $340 million, or a decline of 4 percent to an increase of 2 percent. Prior guidance was $354 million to $367 million.