|
|
|
|
|
Delaware
|
|
000-21180
|
|
77-0034661
|
(State or other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
||
|
|
2700 Coast Avenue
Mountain View, CA 94043
|
|
|
|
|
(Address of Principal Executive Offices)
(Zip Code)
|
|
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of Each Class
|
|
Trading Symbol
|
|
Name of Exchange on Which Registered
|
|
Common Stock, $0.01 par value
|
|
INTU
|
|
Nasdaq Global Select Market
|
|
|
|
99.01
|
|
Press release issued on November 21, 2019, reporting financial results for the quarter ended October 31, 2019 and announcing the cash dividend.*
|
|
|
|
|
|
|
*
|
This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
|
|
Date:
|
November 21, 2019
|
|
INTUIT INC.
|
||
|
|
|
|
||
|
|
|
By:
|
|
/s/ Michelle M. Clatterbuck
|
|
|
|
|
|
Michelle M. Clatterbuck
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
*
|
This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
|
Contacts:
|
|
Investors
|
|
Media
|
|
|
Kim Watkins
|
|
Kali Fry
|
|
|
Intuit Inc.
|
|
Intuit Inc.
|
|
|
650-944-3324
|
|
650-944-3036
|
|
|
kim_watkins@intuit.com
|
|
kali_fry@intuit.com
|
•
|
Total revenue to $1.2 billion, up 15 percent.
|
•
|
Small Business and Self-Employed Group revenue 15 percent to $1.0 billion.
|
•
|
Small Business Online Ecosystem revenue by 35 percent.
|
•
|
Consumer Group revenue by 11 percent to $100 million.
|
|
GAAP
|
Non-GAAP
|
||||
|
Q1
FY20 |
Q1
FY19 |
Change
|
Q1
FY20 |
Q1
FY19 |
Change
|
Revenue
|
$1,165
|
$1,016
|
15%
|
$1,165
|
$1,016
|
15%
|
Operating Income (Loss)
|
$10
|
$(10)
|
NM
|
$129
|
$102
|
26%
|
Earnings Per Share
|
$0.22
|
$0.13
|
69%
|
$0.41
|
$0.29
|
41%
|
•
|
Grew QuickBooks online accounting revenue 41 percent in the quarter, driven by strong customer growth, and to a lesser extent higher effective prices and mix-shift.
|
•
|
Increased Online Services revenue 27 percent, driven by QuickBooks Online payroll and QuickBooks Online payments.
|
•
|
Grew total international online revenue over 60 percent.
|
•
|
Grew U.K. subscribers and now hold the number one position for cloud accounting subscribers in the country.
|
•
|
Launched QuickBooks Live, connecting small businesses with live experts to increase our customers' confidence.
|
•
|
Announced a cash flow planner capability within QuickBooks, designed to automatically alert business owners when a negative cash flow situation is on the horizon and provide recommendations on how to navigate the situation.
|
•
|
Extended eligibility for QuickBooks Capital to desktop customers. QuickBooks Capital has funded $522 million in cumulative loans since being launched 2 years ago. At the end of the first quarter, the net loans receivable balance was $96 million.
|
•
|
Introduced credit score goal setting in the Turbo app to help customers improve their credit score, a key step to improving their financial health.
|
•
|
Reported $19 million of professional tax revenue in the Strategic Partner Group for the first quarter, in line with expectations.
|
•
|
Repurchased $139 million of shares, with $2.5 billion remaining on the company's authorization.
|
•
|
Received Board approval for a quarterly dividend of $0.53 per share, payable January 21, 2020. This represents a 13 percent increase compared to last year.
|
•
|
Revenue growth of 11 to 13 percent,
|
•
|
GAAP earnings per share of $0.70 to $0.73, and
|
•
|
Non-GAAP diluted earnings per share of $1.00 to $1.03.
|
•
|
Revenue of $7.440 billion to $7.540 billion, growth of 10 to 11 percent.
|
•
|
GAAP operating income of $2.065 billion to $2.115 billion, growth of 11 to 14 percent.
|
•
|
Non-GAAP operating income of $2.515 billion to $2.565 billion, growth of 10 to 12 percent.
|
•
|
GAAP diluted earnings per share of $6.35 to $6.45, growth of 8 to 10 percent.
|
•
|
Non-GAAP diluted earnings per share of $7.50 to $7.60, growth of 11 to 13 percent.
|
|
Three Months Ended
|
||||||
|
October 31,
2019 |
|
October 31,
2018 |
||||
Net revenue:
|
|
|
|
||||
Product
|
$
|
353
|
|
|
$
|
347
|
|
Service and other
|
812
|
|
|
669
|
|
||
Total net revenue
|
1,165
|
|
|
1,016
|
|
||
Costs and expenses:
|
|
|
|
||||
Cost of revenue:
|
|
|
|
||||
Cost of product revenue
|
17
|
|
|
15
|
|
||
Cost of service and other revenue
|
267
|
|
|
227
|
|
||
Amortization of acquired technology
|
6
|
|
|
5
|
|
||
Selling and marketing
|
383
|
|
|
346
|
|
||
Research and development
|
334
|
|
|
294
|
|
||
General and administrative
|
146
|
|
|
137
|
|
||
Amortization of other acquired intangible assets
|
2
|
|
|
2
|
|
||
Total costs and expenses [A]
|
1,155
|
|
|
1,026
|
|
||
Operating income (loss)
|
10
|
|
|
(10
|
)
|
||
Interest expense
|
(2
|
)
|
|
(4
|
)
|
||
Interest and other income, net
|
14
|
|
|
—
|
|
||
Income (loss) before income taxes
|
22
|
|
|
(14
|
)
|
||
Income tax benefit [B]
|
(35
|
)
|
|
(48
|
)
|
||
Net income
|
$
|
57
|
|
|
$
|
34
|
|
|
|
|
|
||||
Basic net income per share
|
$
|
0.22
|
|
|
$
|
0.13
|
|
Shares used in basic per share calculations
|
261
|
|
|
260
|
|
||
|
|
|
|
||||
Diluted net income per share
|
$
|
0.22
|
|
|
$
|
0.13
|
|
Shares used in diluted per share calculations
|
264
|
|
|
264
|
|
||
|
|
|
|
||||
Cash dividends declared per common share
|
$
|
0.53
|
|
|
$
|
0.47
|
|
[A]
|
The following table summarizes the total share-based compensation expense that we recorded in operating income or loss for the periods shown.
|
|
Three Months Ended
|
||||||
(in millions)
|
October 31, 2019
|
|
October 31, 2018
|
||||
Cost of revenue
|
$
|
15
|
|
|
$
|
14
|
|
Selling and marketing
|
30
|
|
|
30
|
|
||
Research and development
|
38
|
|
|
35
|
|
||
General and administrative
|
28
|
|
|
26
|
|
||
Total share-based compensation expense
|
$
|
111
|
|
|
$
|
105
|
|
[B]
|
We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.
|
|
Fiscal 2020
|
||||||||||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Year to Date
|
||||||||||
GAAP operating income (loss)
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Amortization of acquired technology
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Amortization of other acquired intangible assets
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Share-based compensation expense
|
111
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
111
|
|
|||||
Non-GAAP operating income (loss)
|
$
|
129
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income (loss)
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57
|
|
Amortization of acquired technology
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Amortization of other acquired intangible assets
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Share-based compensation expense
|
111
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
111
|
|
|||||
Net (gain) loss on debt securities and other investments
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Other income tax effects and adjustments [A]
|
(68
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(68
|
)
|
|||||
Non-GAAP net income (loss)
|
$
|
109
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
109
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP diluted net income (loss) per share
|
$
|
0.22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.22
|
|
Amortization of acquired technology
|
0.02
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|||||
Amortization of other acquired intangible assets
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|||||
Share-based compensation expense
|
0.42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.42
|
|
|||||
Net (gain) loss on debt securities and other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other income tax effects and adjustments [A]
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.26
|
)
|
|||||
Non-GAAP diluted net income (loss) per share
|
$
|
0.41
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in GAAP diluted per share calculation
|
264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
264
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in non-GAAP diluted per share calculation
|
264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
264
|
|
|
Fiscal 2019
|
||||||||||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full Year
|
||||||||||
GAAP operating income (loss)
|
$
|
(10
|
)
|
|
$
|
233
|
|
|
$
|
1,784
|
|
|
$
|
(153
|
)
|
|
$
|
1,854
|
|
Amortization of acquired technology
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
20
|
|
|||||
Amortization of other acquired intangible assets
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|||||
Professional fees for business combinations
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||
Share-based compensation expense
|
105
|
|
|
100
|
|
|
98
|
|
|
98
|
|
|
401
|
|
|||||
Non-GAAP operating income (loss)
|
$
|
102
|
|
|
$
|
339
|
|
|
$
|
1,888
|
|
|
$
|
(47
|
)
|
|
$
|
2,282
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income (loss)
|
$
|
34
|
|
|
$
|
189
|
|
|
$
|
1,378
|
|
|
$
|
(44
|
)
|
|
$
|
1,557
|
|
Amortization of acquired technology
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
20
|
|
|||||
Amortization of other acquired intangible assets
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|||||
Professional fees for business combinations
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||
Share-based compensation expense
|
105
|
|
|
100
|
|
|
98
|
|
|
98
|
|
|
401
|
|
|||||
Net (gain) loss on debt securities and other investments
|
1
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
6
|
|
|||||
Other income tax effects and adjustments [A]
|
(71
|
)
|
|
(33
|
)
|
|
(19
|
)
|
|
(86
|
)
|
|
(209
|
)
|
|||||
Non-GAAP net income (loss)
|
$
|
76
|
|
|
$
|
264
|
|
|
$
|
1,465
|
|
|
$
|
(23
|
)
|
|
$
|
1,782
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP diluted net income (loss) per share
|
$
|
0.13
|
|
|
$
|
0.72
|
|
|
$
|
5.22
|
|
|
$
|
(0.17
|
)
|
|
$
|
5.89
|
|
Amortization of acquired technology
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.08
|
|
|||||
Amortization of other acquired intangible assets
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.03
|
|
|||||
Professional fees for business combinations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Share-based compensation expense
|
0.40
|
|
|
0.38
|
|
|
0.38
|
|
|
0.38
|
|
|
1.52
|
|
|||||
Net (gain) loss on debt securities and other investments
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|||||
Other income tax effects and adjustments [A]
|
(0.27
|
)
|
|
(0.13
|
)
|
|
(0.08
|
)
|
|
(0.33
|
)
|
|
(0.79
|
)
|
|||||
Non-GAAP diluted net income (loss) per share
|
$
|
0.29
|
|
|
$
|
1.00
|
|
|
$
|
5.55
|
|
|
$
|
(0.09
|
)
|
|
$
|
6.75
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in GAAP diluted per share calculation
|
264
|
|
|
264
|
|
|
264
|
|
|
260
|
|
|
264
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in non-GAAP diluted per share calculation
|
264
|
|
|
264
|
|
|
264
|
|
|
260
|
|
|
264
|
|
|
Three Months Ended
|
||||||
|
October 31, 2019
|
|
October 31, 2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
57
|
|
|
$
|
34
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Depreciation
|
49
|
|
|
51
|
|
||
Amortization of acquired intangible assets
|
8
|
|
|
6
|
|
||
Non-cash operating lease cost
|
16
|
|
|
—
|
|
||
Share-based compensation expense
|
111
|
|
|
105
|
|
||
Deferred income taxes
|
(18
|
)
|
|
(9
|
)
|
||
Other
|
4
|
|
|
2
|
|
||
Total adjustments
|
170
|
|
|
155
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(16
|
)
|
|
21
|
|
||
Income taxes receivable
|
(22
|
)
|
|
(47
|
)
|
||
Prepaid expenses and other assets
|
(63
|
)
|
|
(72
|
)
|
||
Accounts payable
|
(5
|
)
|
|
24
|
|
||
Accrued compensation and related liabilities
|
(180
|
)
|
|
(191
|
)
|
||
Deferred revenue
|
(68
|
)
|
|
(69
|
)
|
||
Operating lease liabilities
|
(14
|
)
|
|
—
|
|
||
Other liabilities
|
14
|
|
|
2
|
|
||
Total changes in operating assets and liabilities
|
(354
|
)
|
|
(332
|
)
|
||
Net cash used in operating activities
|
(127
|
)
|
|
(143
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of corporate and customer fund investments
|
(207
|
)
|
|
(70
|
)
|
||
Sales of corporate and customer fund investments
|
53
|
|
|
33
|
|
||
Maturities of corporate and customer fund investments
|
156
|
|
|
41
|
|
||
Purchases of property and equipment
|
(38
|
)
|
|
(35
|
)
|
||
Originations of term loans to small businesses
|
(81
|
)
|
|
(76
|
)
|
||
Principal repayments of term loans from small businesses
|
79
|
|
|
52
|
|
||
Other
|
(19
|
)
|
|
4
|
|
||
Net cash used in investing activities
|
(57
|
)
|
|
(51
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Repayment of debt
|
(13
|
)
|
|
(13
|
)
|
||
Proceeds from issuance of stock under employee stock plans
|
63
|
|
|
120
|
|
||
Payments for employee taxes withheld upon vesting of restricted stock units
|
(71
|
)
|
|
(63
|
)
|
||
Cash paid for purchases of treasury stock
|
(140
|
)
|
|
(95
|
)
|
||
Dividends and dividend rights paid
|
(141
|
)
|
|
(129
|
)
|
||
Net change in customer fund deposits [A]
|
(23
|
)
|
|
71
|
|
||
Other
|
—
|
|
|
(2
|
)
|
||
Net cash used in financing activities
|
(325
|
)
|
|
(111
|
)
|
||
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents
|
—
|
|
|
(4
|
)
|
||
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents
|
(509
|
)
|
|
(309
|
)
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period
|
2,352
|
|
|
1,631
|
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period
|
$
|
1,843
|
|
|
$
|
1,322
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the condensed consolidated balance sheet to the total amounts reported on the condensed consolidated statement of cash flows
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,630
|
|
|
$
|
1,084
|
|
Restricted cash and restricted cash equivalents included in funds held for customers [B]
|
213
|
|
|
238
|
|
||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period
|
$
|
1,843
|
|
|
$
|
1,322
|
|
|
|
Forward-Looking Guidance
|
||||||||||||||||||||
|
|
GAAP
Range of Estimate
|
|
|
|
|
|
Non-GAAP
Range of Estimate
|
||||||||||||||
|
|
From
|
|
To
|
|
Adjmts
|
|
|
|
From
|
|
To
|
||||||||||
Three Months Ending January 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
1,670
|
|
|
$
|
1,690
|
|
|
$
|
—
|
|
|
|
|
$
|
1,670
|
|
|
$
|
1,690
|
|
Operating income
|
|
$
|
223
|
|
|
$
|
233
|
|
|
$
|
112
|
|
|
[a]
|
|
$
|
335
|
|
|
$
|
345
|
|
Diluted earnings per share
|
|
$
|
0.70
|
|
|
$
|
0.73
|
|
|
$
|
0.30
|
|
|
[b]
|
|
$
|
1.00
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Twelve Months Ending July 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
7,440
|
|
|
$
|
7,540
|
|
|
$
|
—
|
|
|
|
|
$
|
7,440
|
|
|
$
|
7,540
|
|
Operating income
|
|
$
|
2,065
|
|
|
$
|
2,115
|
|
|
$
|
450
|
|
|
[c]
|
|
$
|
2,515
|
|
|
$
|
2,565
|
|
Diluted earnings per share
|
|
$
|
6.35
|
|
|
$
|
6.45
|
|
|
$
|
1.15
|
|
|
[d]
|
|
$
|
7.50
|
|
|
$
|
7.60
|
|
[a]
|
Reflects estimated adjustments for share-based compensation expense of approximately $105 million; amortization of acquired technology of approximately $6 million; and amortization of other acquired intangible assets of approximately $1 million.
|
[b]
|
Reflects the 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 $423 million; amortization of acquired technology of approximately $21 million; and amortization of other acquired intangible assets of approximately
|
[d]
|
Reflects the 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.
|
•
|
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
|
•
|
Gains and losses on debt and equity securities and other investments
|
•
|
Income tax effects and adjustments
|
•
|
Discontinued operations
|