Intuit announced the financial results for the second quarter of fiscal 2014, which ended Jan. 31.
Total second-quarter revenue declined 12 percent to $782 million, the financial software company reported, due to processing delays and changes in Intuit’s tax offerings that will shift revenue in the third quarter.
Other highlights included growth in the current period over the comparable prior-year period in the following areas:
- Subscribers, led by QuickBooks Online’s 30 percent growth, and a customer increase outside the U.S. of 90 percent. Total Quickbooks subscribers grew 26 percent.
- Raised guidance for the third quarter and reiterated guidance for full fiscal year revenue, operating income and earnings per share with expected full fiscal year revenue growth of 6 to 8 percent.
- A completed accelerated share repurchase agreement to buy back $1.4 billion in shares.
“With a renewed focus, our teams are now aligned against two strategic outcomes: To be the operating system behind small business success and to do the nations' taxes in the U.S. and Canada," said Brad Smith, Intuit president and chief executive officer, in a statement. "I'm pleased that we are seeing momentum across our businesses driven by our platform shift to the cloud. While the tax season is just underway, we are encouraged by our product innovations, our focus on filers with simple returns and a strong branding campaign. This momentum, along with early-season unit growth, give us confidence we're off to a good start.”
Intuit also reported results in the following business segments:
Small business
- Total small business segment revenues grew 8 percent.
- Small business financial solutions grew 5 percent, including QuickBooks revenue growth of 12 percent and flat payments revenue.
- Small business management solutions grew revenue 16 percent, led by employee management solutions revenue growth of 14 percent and Demandforce revenue growth of 32 percent.
- The new QuickBooks Online added more than 45,000 net new customers in the past quarter.
- The “small business big game” marketing program generated 11 billion impressions and the ad campaign drove global visibility for Intuit and the four small business finalists.
Consumer
- Released the first of two season-to-date updates.
- TurboTax units grew 7 percent through Feb. 15 versus the comparable prior-year period and TurboTax Online units grew 11 percent.
- Launched a Spanish-language version of mobile app SnapTax.
“On the small business front, our guidance remains 10 to 12 percent revenue growth for the year, driven primarily by customer acquisition and mix improvement and less from price, a healthy mix that bodes well for continued customer growth,” said Intuit chief financial officer Neil Williams in prepared remarks for investors.
Intuit also reiterated guidance for full fiscal year 2014, which ends July 31, and updated guidance for the remaining quarters of fiscal 2014.
For full fiscal year 2014 Intuit expects:
- Revenue of $4.440 billion to $4.525 billion, growth of 6 to 8 percent.
- GAAP operating income of $1.345 billion to $1.375 billion, growth of 9 to 12 percent.
- Non-GAAP operating income of $1.580 billion to $1.610 billion, growth of 7 to 10 percent.
- GAAP diluted earnings per share of $3.11 to $3.19, growth of 10 to 13 percent.
- Non-GAAP diluted EPS of $3.52 to $3.60, growth of 10 to 13 percent.
For the third quarter of fiscal 2014, Intuit now expects:
- Revenue of $2.325 billion to $2.400 billion.
- GAAP operating income of $1.480 billion to $1.500 billion.
- Non-GAAP operating income of $1.530 billion to $1.550 billion.
- GAAP diluted EPS of $3.33 to $3.38.
- Non-GAAP diluted EPS of $3.46 to $3.51.
For the fourth quarter of fiscal 2014, Intuit expects:
- Revenue of $710 million to $720 million.
- GAAP loss per share of $0.02 to $0.04.
- Non-GAAP diluted EPS of $0.11 to $0.13.
