Intuit Inc. (Nasdaq: INTU) the global financial technology platform that makes TurboTax , Credit Karma , QuickBooks , and Mailchimp , announced financial results for the fourth quarter and full fiscal year 2024, which ended July 31, 2024. Intuit's Chief Executive Officer, Sasan Goodarzi reported, "We've delivered very strong results for the fourth quarter and full year, and made meaningful progress with our AI-driven expert platform strategy that positions the company for durable growth in the future. Our strategy and five Big Bets are solving our customers’ biggest problems as we deliver on our mission to power prosperity for consumers, and small and mid-market businesses."
Financial Highlights*
For the full year, Intuit:
- Grew total revenue to $16.3 billion, up 13 percent year-over-year.
- Increased combined platform revenue, which includes the Small Business and Self-Employed Group Online Ecosystem, TurboTax Online, and Credit Karma, 14 percent to $12.5 billion.
- Grew Small Business and Self-Employed Group revenue 19 percent and Online Ecosystem revenue 20 percent.
- Grew Consumer Group revenue 7 percent to $4.4 billion.
- Increased Credit Karma revenue 5 percent to $1.7 billion.
- Grew GAAP operating income 16 percent to $3.6 billion, including a restructuring charge of $223 million recognized in the fourth quarter related to the organizational changes the company announced in July.
- Increased non-GAAP operating income 16 percent to $6.4 billion.
- Grew GAAP earnings per share 24 percent to $10.43, also including the restructuring charge.
- Increased non-GAAP earnings per share 18 percent to $16.94.
For the fourth quarter, Intuit:
- Grew total revenue 17 percent to $3.2 billion.
- Increased Small Business and Self-Employed Group revenue 20 percent to $2.6 billion and Online Ecosystem revenue 18 percent.
- Grew Credit Karma revenue 14 percent to $485 million.
- Reported Consumer Group revenue of $113 million, down 12 percent.
Forward-looking Guidance
Intuit announced guidance for the full fiscal year 2025. The company expects:
- Revenue of $18.160 billion to $18.347 billion, growth of approximately 12 to 13 percent.
- GAAP operating income of $4.649 billion to $4.724 billion, growth of approximately 28 to 30 percent.
- Non-GAAP operating income of $7.241 billion to $7.316 billion, growth of approximately 13 to 14 percent.
- GAAP diluted earnings per share of $12.34 to $12.54, growth of approximately 18 to 20 percent.
- Non-GAAP diluted earnings per share of $19.16 to $19.36, growth of approximately 13 to 14 percent.
The company expects the following segment revenue results for fiscal year 2025:
- Small Business and Self-Employed Group: growth of 16 to 17 percent. This includes online ecosystem revenue growth of approximately 20 percent and desktop ecosystem revenue growth in the low single digits.
- Consumer Group: growth of 7 to 8 percent.
- ProTax Group: growth of 3 to 4 percent.
- Credit Karma: growth of 5 to 8 percent.
GAAP guidance reflects an expected $24 million restructuring charge related to the reorganization the company announced in July.
Intuit also announced guidance for the first quarter of fiscal year 2025, which ends Oct. 31.
The company expects revenue growth of approximately 5 to 6 percent including:
- Small Business and Self-Employed Group revenue growth of 6 to 7 percent. The company expects online ecosystem revenue growth, the company's growth catalyst, to accelerate to approximately 19 percent in the first quarter of fiscal 2025. The company expects desktop ecosystem revenue to decline approximately 20 percent in the first quarter of fiscal 2025, but return to growth in the second quarter. The first quarter desktop growth outlook reflects changes the company made to its QuickBooks desktop offerings in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates. The company expects these changes to lower revenue in the first quarter of fiscal 2025 by approximately $160 million. This includes approximately $50 million that was recognized in the first three quarters of fiscal 2024, approximately $60 million recognized in the fourth quarter of fiscal 2024, and approximately $50 million that the company expects to shift from the first quarter of fiscal 2025 to later quarters in fiscal 2025.
- Credit Karma revenue to grow in the first quarter.
- Consumer Group and ProTax revenue to decline in the first quarter, as the company laps the period a year ago that included the extended California tax filing deadline.
GAAP earnings per share of $0.61 to $0.66
Non-GAAP diluted earnings per share of $2.33 to $2.38.
GAAP guidance reflects an expected $19 million restructuring charge that the company expects to incur in the first quarter related to the reorganization the company announced in July.
* - 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.
For additional details regarding the Company's 4th-Quarter and Year-end Results not included in this summary, see the official Intuit Press Release HERE.