Intuit Inc. (Nasdaq: INTU) reaffirmed its financial guidance for
the first quarter and full fiscal year 2022 in conjunction with its
virtual Investor Day, being held today at 8:00 a.m. Pacific
time. The company's fiscal year runs from Aug. 1 to July 31.
Intuit leaders will discuss the company's plan to accelerate
innovation and drive durable growth. Speakers include:
- Sasan Goodarzi, chief executive officer
- Michelle Clatterbuck, chief financial officer
- Alex Chriss, executive vice president and general
manager, small business and self-employed group
- Greg Johnson, executive vice president and general
manager, consumer group
- Kenneth Lin, founder and chief executive officer of
Credit Karma
In addition, Intuit will share a platform immersion experience
highlighting the company's strategy and latest innovation.
“Our strategy, and five big bets, to become an AI-driven expert
platform are driving strong momentum across the company and
represent significant future growth opportunities,” said Goodarzi.
"We remain committed to accelerating innovation to help consumers
and small businesses overcome their most important financial
challenges."
Reiterates First-quarter and Fiscal 2022 Guidance
Intuit reiterated the first-quarter and full-year fiscal 2022
guidance, previously announced on Aug. 24. For the first quarter of
fiscal year 2022, which ends Oct. 31, the company expects:
- Revenue growth of approximately 36 to 38 percent, including
Credit Karma.
- GAAP earnings per share of $0.14 to $0.19.
- Non-GAAP diluted earnings per share of $0.94 to $0.99.
For full fiscal year 2022, the company expects:
- Revenue of $11.050 billion to $11.200 billion, growth of
approximately 15 to 16 percent, including a full year of Credit
Karma.
- GAAP operating income of $2.605 billion to $2.680 billion,
growth of approximately 4 to 7 percent.
- Non-GAAP operating income of $4.050 billion to $4.125 billion,
growth of approximately 16 to 18 percent.
- GAAP diluted earnings per share of $7.46 to $7.66, a decline of
approximately 1 percent to growth of 1 percent.
- Non-GAAP diluted earnings per share of $11.05 to $11.25, growth
of approximately 13 to 16 percent.
The company expects the following segment revenue results for
fiscal year 2022:
- Small Business and Self-Employed Group: growth of 12 to 14
percent.
- Consumer Group: growth of 10 to 11 percent.
- ProConnect Group: growth of 1 to 2 percent.
- Credit Karma: revenue of $1.345 billion to $1.380 billion.
Investor Day: How to Participate
The half-day event will be broadcast live at
https://investors.intuit.com/events-and-presentations/default.aspx.
If you would like to attend, please register at
https://investorday2021.intuit.com/investorday/registration.
A replay of the video broadcast will be available on Intuit’s
website a few hours after the meeting ends.
About Intuit
Intuit is a global technology platform that helps our customers
and communities overcome their most important financial challenges.
Serving approximately 100 million customers worldwide with
TurboTax, QuickBooks, Mint and Credit
Karma, we believe that everyone should have the opportunity to
prosper. We never stop working to find new, innovative ways to make
that possible. Please visit us for the latest information about
Intuit, our products and services, and find us on social.
About Non-GAAP Financial Measures
This press release and the accompanying tables 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 tables titled "About Non-GAAP Financial Measures"
as well as the related Table 1. 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, including
expectations regarding our prospects for the business in fiscal
2022 and beyond; our growth outside the US; the timing and growth
of revenue for each of Intuit’s reporting segments and from current
or future products and services; our customer growth; our corporate
tax rate; changes to our products and their impact on our business;
the amount and timing of any future dividends or share repurchases;
the availability of our offerings; the timing and impact of our
strategic decisions and initiatives on our business and reputation;
and all of the statements under the heading "Reiterates
First-quarter and Fiscal 2022 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 risks and uncertainties
may be amplified by the COVID-19 pandemic, which continues to cause
global economic instability and uncertainty. Given these risks and
uncertainties, you 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;
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 our proposed acquisition of
Mailchimp; the issuance of equity or incurrence of debt to fund an
acquisition; any cybersecurity incidents that may affect us
(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; volatility of our stock price; and our
ability to successfully market our offerings. More details about
these and other risks that may impact our business are included in
our Form 10-K for fiscal 2021 and in our other SEC filings. You can
locate these reports through our website at
http://investors.intuit.com. Fiscal 2022 full-year and Q1 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 press release.
TABLE 1
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING
GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE,
OPERATING INCOME, 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,
2021
Revenue
$
1,795
$
1,825
$
—
$
1,795
$
1,825
Operating income
$
—
$
15
$
353
[a]
$
353
$
368
Diluted earnings per share
$
0.14
$
0.19
$
0.80
[b]
$
0.94
$
0.99
Twelve Months Ending July 31,
2022
Revenue
$
11,050
$
11,200
$
—
$
11,050
$
11,200
Operating income
$
2,605
$
2,680
$
1,445
[c]
$
4,050
$
4,125
Diluted earnings per share
$
7.46
$
7.66
$
3.59
[d]
$
11.05
$
11.25
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 $284 million;
amortization of acquired technology of approximately $15 million;
and amortization of other acquired intangible assets of
approximately $54 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. We
expect a non-GAAP tax rate of 24% in fiscal 2022.
[c]
Reflects estimated adjustments
for share-based compensation expense of approximately $1,172
million; amortization of acquired technology of approximately $59
million; and amortization of other acquired intangibles of
approximately $214 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. We
expect a non-GAAP tax rate of 24% in fiscal 2022.
INTUIT INC. ABOUT NON-GAAP FINANCIAL
MEASURES
The accompanying press release dated September 30, 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 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. 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 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, 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% and 24% for fiscal 2020 and
fiscal 2021, respectively. These long-term non-GAAP tax rates 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 evaluate
these long-term non-GAAP tax rates on an annual basis and whenever
any significant events occur which may materially affect the
rates.
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
measure 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. These tables include 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 business and long-lived assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210930005074/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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