Intuit Adjusts Second Quarter Outlook Reflecting the Impact of a Late Opening to the Tax Season; Reiterates Full-Year Guidance
Intuit Inc. (Nasdaq: INTU) reported lower-than-expected revenue and operating income for its second fiscal quarter due to the IRS delaying the tax season start. The company anticipates revenue of $1.570 billion to $1.575 billion, down from $1.935 billion to $1.965 billion, and a GAAP operating loss of $30 million to $25 million, a drop from GAAP operating income of $171 million to $191 million. Despite this, Intuit maintains its full-year guidance, expecting revenue of $8.810 billion to $8.995 billion, with a projected growth of approximately 15 to 17 percent.
- Full-year revenue guidance reiterated at $8.810 billion to $8.995 billion, indicating a growth of around 15 to 17%.
- Non-GAAP diluted earnings per share expected to grow by approximately 4 to 7%, showing resilience.
- Q2 revenue expected to decline to $1.570 billion to $1.575 billion, significantly lower than previous expectations.
- GAAP operating income revised down to a loss of $30 million to $25 million, contrasting sharply with prior expectations of income.
- GAAP diluted earnings per share forecasted to drop by approximately 21 to 23%.
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
$1.57 0 billion to$1.57 5 billion, down from the prior range of$1.93 5 billion to$1.96 5 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 t o$0.07 , down from the prior range of$0.43 t o$0.49 . -
Non-GAAP diluted earnings per share of
$0.67 t o$0.68 , down from the prior range of$1.25 t o$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
$8.81 0 billion to$8.99 5 billion, growth of approximately 15 to 17 percent. -
GAAP operating income of
$1.92 0 billion to$1.99 0 billion, a decline of approximately 9 to 12 percent. -
Non-GAAP operating income of
$2.97 5 billion to$3.04 5 billion, growth of approximately 12 to 14 percent. -
GAAP diluted earnings per share of
$5.30 t o$5.50 , a decline of approximately 21 to 23 percent. -
Non-GAAP diluted earnings per share of
$8.20 t o$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
|
|
|
|
Non-GAAP
|
|||||||||||||||
|
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 |
|
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