Intuit Inc. (Nasdaq: INTU), maker of TurboTax, QuickBooks,
Credit Karma and Mint, today announced that revenue and operating
income for its second fiscal quarter were lower than expected due
to the tax season opening later this year. The IRS announced it
will be accepting and processing returns starting Feb. 12, compared
to Jan. 27 last year, with the later start allowing the IRS time to
do additional programming and testing of its systems.
Intuit reiterated full-year revenue, operating income, and
earnings per share guidance.
For the second fiscal quarter ended Jan. 31, the company expects
to report:
- Revenue of $1.570 billion to $1.575 billion, down from the
prior range of $1.935 billion to $1.965 billion.
- GAAP operating loss of $30 million to $25 million, down from
the prior GAAP operating income range of $171 million to $191
million.
- Non-GAAP operating income of $230 million to $235 million, down
from the prior range of $455 million to $475 million.
- GAAP diluted earnings per share of $0.06 to $0.07, down from
the prior range of $0.43 to $0.49.
- Non-GAAP diluted earnings per share of $0.67 to $0.68, down
from the prior range of $1.25 to $1.31.
"We are seeing strong momentum across every business as we
execute on our vision of becoming an AI-driven expert platform,"
said Sasan Goodarzi, Intuit’s chief executive officer. "We are
innovating faster than ever to help put more money in our
customers' pockets when they need it most and remain on track to
deliver our full year fiscal 2021 guidance."
Full-year Guidance
The company expects full year results for Intuit and all
business segments to be in line with guidance issued on Dec. 7,
2020. For fiscal year 2021, the company continues to expect:
- Revenue of $8.810 billion to $8.995 billion, growth of
approximately 15 to 17 percent.
- GAAP operating income of $1.920 billion to $1.990 billion, a
decline of approximately 9 to 12 percent.
- Non-GAAP operating income of $2.975 billion to $3.045 billion,
growth of approximately 12 to 14 percent.
- GAAP diluted earnings per share of $5.30 to $5.50, a decline of
approximately 21 to 23 percent.
- Non-GAAP diluted earnings per share of $8.20 to $8.40, growth
of approximately 4 to 7 percent.
Intuit will announce second-quarter results on Feb. 23.
About Intuit
Intuit is a global technology platform that helps our customers
and communities overcome their most important financial challenges.
Serving millions of customers worldwide with TurboTax, QuickBooks,
Credit Karma and Mint, we believe that everyone should have the
opportunity to prosper and work tirelessly to find new, innovative
ways to deliver on this belief. Please visit us for the latest news
and information about Intuit and its brands and find us on
social.
About Non-GAAP Financial Measures
This press release and the accompanying table 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 table 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 website.
Cautions About Forward-looking Statements
This press release contain forward-looking statements within the
meaning of applicable securities laws, including the size of the
market for tax preparation software and the timing of when
individuals will file their tax returns; forecasts and timing of
expected growth and future financial results of Intuit and its
reporting segments, including Credit Karma; Intuit’s prospects for
the business in fiscal 2021 and beyond; and all of the statements
relating to second fiscal quarter and full fiscal year 2021
guidance. Forward-looking statements and information usually relate
to future events and anticipated revenues, earnings, cash flows or
other aspects of our operations or operating results.
Forward-looking statements are often identified by the words
“believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,”
“should,” “would,” “could,” “may,” “will,” “estimate,” “outlook”
and similar expressions, including the negative thereof. The
absence of these words, however, does not mean that the statements
are not forward-looking.
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 global economic instability and uncertainty. Given
these risks and uncertainties, persons reading this communication
are cautioned not to place any undue reliance on such
forward-looking statements. 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, including the acquisition and integration of Credit
Karma; 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,
counterparty or other risks in providing capital to businesses;
amortization of acquired intangible assets and impairment charges;
our ability to repay or otherwise comply with the terms of our
outstanding debt; our ability to repurchase shares or distribute
dividends; and volatility of our stock price.
More details about these and other risks that may impact our
business are included in our Form 10-K for fiscal 2020 and in our
other SEC filings. You can locate these reports through our website
at http://investors.intuit.com. Second quarter and full year fiscal
2021 guidance speaks only as of the date it was publicly issued by
Intuit. Other 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 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 January 31,
2021
Revenue
$
1,570
$
1,575
$
—
$
1,570
$
1,575
Operating income (loss)
$
(30
)
$
(25
)
$
260
[a]
$
230
$
235
Diluted earnings per share
$
0.06
$
0.07
$
0.61
[b]
$
0.67
$
0.68
Twelve Months Ending July 31,
2021
Revenue
$
8,810
$
8,995
$
—
$
8,810
$
8,995
Operating income
$
1,920
$
1,990
$
1,055
[c]
$
2,975
$
3,045
Diluted earnings per share
$
5.30
$
5.50
$
2.90
[d]
$
8.20
$
8.40
See “About Non-GAAP Financial Measures” immediately following
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 $180 million;
professional fees for business combinations of approximately $30
million; amortization of acquired technology of approximately $14
million; and amortization of other acquired intangible assets of
approximately $36 million.
[b]
Reflects estimated adjustments in item
[a], income taxes related to these adjustments, and other income
tax effects related to the use of the non GAAP tax rate.
[c]
Reflects estimated adjustments for share
based compensation expense of approximately $813 million;
professional fees for business combinations of approximately $39
million; amortization of acquired technology of approximately $51
million; and amortization of other acquired intangibles of
approximately $152 million.
[d]
Reflects estimated adjustments in item
[c], income taxes related to these adjustments, and other income
tax effects related to the use of the non GAAP tax rate.
INTUIT INC.
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated February 9, 2021 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 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 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 a business in a
business combination, we are required by GAAP to record the fair
values of the intangible assets of the business 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 businesses. 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 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, 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 23% for fiscal 2020 and 24% for
fiscal 2021. 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. 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 rate.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210209005428/en/
Investors Kim Watkins Intuit Inc. 650-944-3324
kim_watkins@intuit.com
Media Kali Fry Intuit Inc. 650-944-3036
kali_fry@intuit.com
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