Intuit Hosts Virtual Investor Day, Reaffirms First-Quarter and Fiscal 2022 Guidance
Intuit reaffirmed its financial guidance for Q1 and FY 2022 at its virtual Investor Day. The company anticipates Q1 revenue growth of 36-38% and GAAP EPS between $0.14 to $0.19, with full FY revenue projected at $11.050 billion to $11.200 billion, representing 15-16% growth. Operating income is expected to be $2.605 billion to $2.680 billion, with a modest growth of 4-7%. Non-GAAP diluted EPS is forecasted at $11.05 to $11.25, indicating a growth of 13-16%. Segment revenue growth is expected for the Small Business and Self-Employed Group (12-14%) and Consumer Group (10-11%).
- First-quarter revenue growth expected at 36-38%.
- Full fiscal year revenue projection of $11.050 billion to $11.200 billion, reflecting 15-16% growth.
- Non-GAAP diluted EPS forecast of $11.05 to $11.25, indicating growth of 13-16%.
- Positive guidance for Small Business and Self-Employed Group growth at 12-14%.
- GAAP diluted EPS guidance shows a potential decline of approximately 1% to growth of 1%.
- ProConnect Group revenue growth projected at only 1-2%, indicating weakness.
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
- Revenue growth of approximately 36 to 38 percent, including Credit Karma.
-
GAAP earnings per share of
$0.14 $0.19 -
Non-GAAP diluted earnings per share of
$0.94 $0.99
For full fiscal year 2022, the company expects:
-
Revenue of
$11.05 0 billion$11.20 0 billion -
GAAP operating income of
$2.60 5 billion$2.68 0 billion -
Non-GAAP operating income of
$4.05 0 billion$4.12 5 billion -
GAAP diluted earnings per share of
$7.46 $7.66 -
Non-GAAP diluted earnings per share of
$11.05 $11.25
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
$1.34 5 billion$1.38 0 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
TABLE 1
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 |
|
|
|
|
|
|
|
|
|
||||||||||
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 |
|
|
|
|
|
|
|
|
|
||||||||||
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 |
[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 |
[c] |
Reflects estimated adjustments for share-based compensation expense of approximately |
[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 |
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated
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.
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
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.
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Investors
650-944-3324
kim_watkins@intuit.com
Media
650-944-3036
kali_fry@intuit.com
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