Intuit Inc. (Nasdaq:INTU)
reaffirmed its financial guidance for the first quarter and full
fiscal year 2018 in conjunction with Investor Day, being held today
at the company’s Mountain View, Calif., headquarters. The company's
fiscal year runs from Aug. 1 to July 31.
Chairman and Chief Executive Officer Brad Smith, Chief Financial
Officer Neil Williams and company leaders will address Intuit’s
priorities in support of its refreshed strategy. The meeting begins
at 8:00 a.m. Pacific time.
“I’m looking forward to sharing our new refreshed company game
plan with investors,” said Smith. “Our strong performance in fiscal
year 2017 exceeded expectations, and we are showing momentum early
in fiscal 2018. We’ll discuss our focus on building one Intuit
ecosystem and our investments in artificial intelligence and
machine learning; continuing our move to the public cloud;
investing in our engineering productivity; and building our
brands.
“All of this supports our new mission to power prosperity around
the world.”
Reiterates First-quarter and Fiscal 2018 Guidance
Intuit reiterated the first-quarter and full-year fiscal 2018
guidance that was previously announced on Aug. 22. For the first
quarter of fiscal year 2018, which ends Oct. 31, the company
expects:
- Revenue of $840 million to $860
million, growth of 8 to 11 percent.
- GAAP operating loss of $75 million to
$85 million.
- Non-GAAP operating income of $15
million to $25 million.
- GAAP loss per share of $0.17 to
$0.19.
- Non-GAAP diluted earnings per share of
$0.03 to $0.05.
For full fiscal year 2018. The company expects:
- Revenue of $5.640 billion to $5.740
billion, growth of 9 to 11 percent.
- GAAP operating income of $1.485 billion
to $1.535 billion, growth of 6 to 10 percent.
- Non-GAAP operating income of $1.885
billion to $1.935 billion, growth of 9 to 12 percent.
- GAAP diluted earnings per share of
$4.00 to $4.10, growth of 8 to 10 percent.
- Non-GAAP diluted earnings per share of
$4.90 to $5.00, growth of 11 to 13 percent.
- QuickBooks Online subscribers of 3.275
million to 3.375 million.
Investor Day: How to Participate
The event will be broadcast live at 8:00 a.m. Pacific time and a
webcast will be available on Intuit’s website at
http://investors.intuit.com/events/default.aspx. A replay of the
video broadcast and webcast will be available on Intuit’s website
two hours after the meeting ends.
About Intuit
Intuit Inc. is committed to powering prosperity around the world
for consumers, small businesses and the self-employed through its
ecosystem of innovative financial management solutions.
Its flagship products and services
include QuickBooks® and TurboTax®, which make it
easier to manage small businesses and tax preparation and
filing. QuickBooks Self-Employed provides freelancers and
independent contractors with an easy and affordable way to manage
their finances and save money at tax time, while Mint delivers
financial tools and insights to help people make smart choices
about their money.
Intuit's ProConnect brand
portfolio includes ProConnect Tax Online, ProSeries®
and Lacerte®, the company's leading tax preparation offerings
for professional accountants.
Founded in 1983, Intuit serves 46 million customers in North
America, Europe, Australia, Brazil and India, with revenue of $5.2
billion in its fiscal year 2017. The company has approximately
8,200 employees with major offices in the United
States, Canada, the United
Kingdom, India, Israel, Australia and other locations.
More information can be found at www.intuit.com.
About Non-GAAP Financial Measures
This press release includes 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 accompanying Table 1 and the
section titled "About Non-GAAP Financial Measures." A copy of the
press release issued by Intuit today can be found on the investor
relations page of Intuit's Web site.
Cautions About Forward-looking Statements
This press release contains forward-looking statements,
including forecasts of expected growth and future financial results
of Intuit and its reporting segments; Intuit’s prospects for the
business in fiscal 2018 and beyond; expectations regarding customer
growth; expectations regarding the impact of our strategic
decisions on Intuit’s business; and all of the statements under the
heading “Reiterates First-Quarter and Fiscal 2018 Guidance.”
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 factors include, without
limitation, the following: inherent difficulty in predicting
consumer behavior; difficulties in receiving, processing, or filing
customer tax submissions; consumers may not respond as we expected
to our advertising and promotional activities; product
introductions and price competition from our competitors can have
unpredictable negative effects on our revenue, profitability and
market position; governmental encroachment in our tax businesses or
other governmental activities or public policy affecting the
preparation and filing of tax returns could negatively affect our
operating results and market position; we may not be able to
successfully innovate and introduce new offerings and business
models to meet our growth and profitability objectives, and current
and future offerings may not adequately address customer needs and
may not achieve broad market acceptance, which could harm our
operating results and financial condition; business interruption or
failure of our information technology and communication systems may
impair the availability of our products and services, which may
damage our reputation and harm our future financial results; as we
upgrade and consolidate our customer facing applications and
supporting information technology infrastructure, any problems with
these implementations could interfere with our ability to deliver
our offerings; any failure to properly use and protect personal
customer information and data could harm our revenue, earnings and
reputation; if we are unable to develop, manage and maintain
critical third party business relationships, our business may be
adversely affected; increased government regulation of our
businesses may harm our operating results; if we fail to process
transactions effectively or fail to adequately protect against
potential fraudulent activities, our revenue and earnings may be
harmed; related publicity regarding such fraudulent activity could
cause customers to lose confidence in using our software and
adversely impact our results; any significant offering quality
problems or delays in our offerings could harm our revenue,
earnings and reputation; our participation in the Free File
Alliance may result in lost revenue opportunities and
cannibalization of our traditional paid franchise; the continuing
global economic downturn may continue to impact consumer and small
business spending, financial institutions and tax filings, which
could negatively affect our revenue and profitability;
year-over-year changes in the total number of tax filings that are
submitted to government agencies due to economic conditions or
otherwise may result in lost revenue opportunities; our revenue and
earnings are highly seasonal and the timing of our revenue between
quarters is difficult to predict, which may cause significant
quarterly fluctuations in our financial results; our financial
position may not make repurchasing shares advisable or we may issue
additional shares in an acquisition causing our number of
outstanding shares to grow; our inability to adequately protect our
intellectual property rights may weaken our competitive position
and reduce our revenue and earnings; our acquisition and
divestiture activities may disrupt our ongoing business, may
involve increased expenses and may present risks not contemplated
at the time of the transactions; our use of significant amounts of
debt to finance acquisitions or other activities could harm our
financial condition and results of operation; and litigation
involving intellectual property, antitrust, shareholder and other
matters may increase our costs. More details about the risks that
may impact our business are included in our Form 10-K for fiscal
2017 and in our other SEC filings. You can locate these reports
through our website at http://investors.intuit.com. Forward-looking
statements are based on information as of October 3, 2017 and we do
not undertake any duty to update any forward-looking statement or
other information in these materials.
TABLE 1
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE
FOR NON-GAAP FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING
INCOME (LOSS), AND EPS
(In millions, except per share
amounts)
(Unaudited)
Forward-Looking Guidance GAAP
Range of Estimate
Non-GAAP
Range of Estimate
From To Adjmts From
To Three Months Ending October 31, 2017 Revenue $ 840
$ 860 $ — $ 840 $ 860 Operating income (loss) $ (85 ) $ (75 ) $ 100
[a] $ 15 $ 25 Diluted earnings (loss) per share $ (0.19 ) $ (0.17 )
$ 0.22 [b] $ 0.03 $ 0.05
Twelve Months Ending July 31,
2018 Revenue $ 5,640 $ 5,740 $ — $ 5,640 $ 5,740 Operating
income $ 1,485 $ 1,535 $ 400 [c] $ 1,885 $ 1,935 Diluted earnings
per share $ 4.00 $ 4.10 $ 0.90 [d] $ 4.90 $ 5.00
See “About Non-GAAP Financial Measures” immediately following
this Table 1 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.
[a] Reflects estimated adjustments for share-based compensation
expense of approximately $98 million and amortization of acquired
technology of approximately $2 million. [b] Reflects the
estimated adjustments in item [a], income taxes related to these
adjustments, and other income tax effects related to the use of the
long-term non-GAAP tax rate. [c] Reflects estimated
adjustments for share-based compensation expense of approximately
$392 million and amortization of acquired technology of
approximately $8 million. [d] Reflects the estimated
adjustments in item [c], income taxes related to these adjustments,
and other income tax effects related to the use of the long-term
non-GAAP tax rate.
INTUIT INC.ABOUT NON-GAAP FINANCIAL
MEASURES
The accompanying press release dated October 3, 2017 contains
non-GAAP financial measures. Table 1 reconciles the non-GAAP
financial measures in that press release to the most directly
comparable financial measures prepared in accordance with Generally
Accepted Accounting Principles (GAAP). These non-GAAP financial
measures include non-GAAP operating income (loss), non-GAAP net
income (loss) and non-GAAP net income (loss) per share.
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. These non-GAAP financial measures
do not reflect a comprehensive system of accounting, differ from
GAAP measures with the same names, and may differ from non-GAAP
financial measures with the same or similar names that are used by
other companies.
We compute non-GAAP financial measures using the same consistent
method from quarter to quarter and year to year. We may consider
whether other significant items that arise in the future should be
excluded from our non-GAAP financial measures.
We exclude the following items from all of our non-GAAP
financial measures:
- Share-based compensation expense
- Amortization of acquired
technology
- Amortization of other acquired
intangible assets
- Goodwill and intangible asset
impairment charges
- Gains and losses on disposals of
businesses and long-lived assets
- Professional fees for business
combinations
We also exclude the following items from non-GAAP net income
(loss) and diluted net income (loss) per share:
- Gains and losses on debt and equity
securities and other investments
- Income tax effects and adjustments
- Discontinued operations
We believe that these non-GAAP financial measures provide
meaningful supplemental information regarding Intuit’s operating
results primarily because they exclude amounts that we do not
consider part of ongoing operating results when planning and
forecasting and when assessing the performance of the organization,
our individual operating segments, or our senior management.
Segment managers are not held accountable for share-based
compensation expense, amortization, or the other excluded items
and, accordingly, we exclude these amounts from our measures of
segment performance. We believe that our non-GAAP financial
measures also facilitate the comparison by management and investors
of results for current periods and guidance for future periods with
results for past periods.
The following are descriptions of the items we exclude from our
non-GAAP financial measures.
Share-based compensation expenses. These consist of non-cash
expenses for stock options, restricted stock units, and our
Employee Stock Purchase Plan. When considering the impact of equity
awards, we place greater emphasis on overall shareholder dilution
rather than the accounting charges associated with those
awards.
Amortization of acquired technology and amortization of other
acquired intangible assets. When we acquire an entity, we are
required by GAAP to record the fair values of the intangible assets
of the entity and amortize them over their useful lives.
Amortization of acquired technology in cost of revenue includes
amortization of software and other technology assets of acquired
entities. Amortization of other acquired intangible assets in
operating expenses includes amortization of assets such as customer
lists, covenants not to compete, and trade names.
Goodwill and intangible asset impairment charges. We exclude
from our non-GAAP financial measures non-cash charges to adjust the
carrying values of goodwill and other acquired intangible assets to
their estimated fair values.
Gains and losses on disposals of businesses and long-lived
assets. We exclude from our non-GAAP financial measures gains and
losses on disposals of businesses and long-lived assets because
they are unrelated to our ongoing business operating results.
Professional fees for business combinations. We exclude from our
non-GAAP financial measures the professional fees we incur to
complete business combinations. These include investment banking,
legal, and accounting fees.
Gains and losses on debt and equity securities and other
investments. We exclude from our non-GAAP financial measures gains
and losses that we record when we sell or impair available-for-sale
debt and equity securities and other investments.
Income tax effects and adjustments. We use a long-term non-GAAP
tax rate for evaluating operating results and for planning,
forecasting, and analyzing future periods. This long-term
non-GAAP tax rate excludes the income tax effects of the non-GAAP
pre-tax adjustments described above, assumes the federal research
and experimentation credit is continuously in effect, and
eliminates the effects of non-recurring and period specific items
which can vary in size and frequency. Based on our current
long-term projections, we are using a long-term non-GAAP tax rate
of 34% for fiscal 2016 and 33% for fiscal 2017 and 2018. These
rates are consistent with the average of our normalized fiscal year
tax rate over a four year period that includes the past three
fiscal years plus the current fiscal year forecast. We will
evaluate this long-term non-GAAP tax rate on an annual basis and
whenever any significant events occur which may materially affect
this long-term rate. This long-term non-GAAP tax rate could be
subject to change for various reasons including significant changes
in our geographic earnings mix or fundamental tax law changes in
major jurisdictions in which we operate.
Operating results and gains and losses on the sale of
discontinued operations. From time to time, we sell or otherwise
dispose of selected operations as we adjust our portfolio of
businesses to meet our strategic goals. In accordance with GAAP, we
segregate the operating results of discontinued operations as well
as gains and losses on the sale of these discontinued operations
from continuing operations on our GAAP statements of operations but
continue to include them in GAAP net income or loss and net income
or loss per share. We exclude these amounts from our non-GAAP
financial measures.
The reconciliations of the forward-looking non-GAAP financial
measures to the most directly comparable GAAP financial measures in
Table 1 include all information reasonably available to Intuit at
the date of this press release. This table includes adjustments
that we can reasonably predict. Events that could cause the
reconciliation to change include acquisitions and divestitures of
businesses, goodwill and other asset impairments, sales of
available-for-sale debt securities and other investments, and
disposals of businesses and long-lived assets.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171003005849/en/
Intuit Inc.InvestorsKim Watkins,
650-944-3324kim_watkins@intuit.comorMediaDiane Carlini,
650-944-6251diane_carlini@intuit.com
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