Intuit Inc. (INTU) Bundle
A Brief History of Intuit Inc.
Company Overview
Intuit Inc. (NASDAQ: INTU) is a financial software company that provides solutions for small businesses, accountants, and individuals. Founded in 1983, Intuit has grown to become a leader in financial technology, particularly known for its flagship products: TurboTax, QuickBooks, and Mint.
Recent Financial Performance
As of July 31, 2024, Intuit reported total net revenue of $9.5 billion, reflecting a 19% increase from $8.0 billion in fiscal 2023. The breakdown of revenue includes:
| Segment | Fiscal 2024 Revenue (in millions) | Fiscal 2023 Revenue (in millions) | Growth Rate |
|---|---|---|---|
| Small Business & Self-Employed | $9,533 | $8,038 | 19% |
| Consumer | $4,445 | $4,135 | 7% |
Revenue Breakdown
The revenue for the Small Business & Self-Employed segment increased by $1.5 billion, or 19%, in fiscal 2024 compared to fiscal 2023. The growth was attributed to:
- Online Ecosystem revenue increased by $1.1 billion, or 20%.
- QuickBooks Online Accounting revenue grew by $530 million, or 19%.
- Mailchimp revenue contributed $125 million due to higher effective prices and paid customer growth.
Operating Income
The operating income for Intuit in fiscal 2024 was reported at $5.7 billion, a 25% increase from $4.6 billion in 2023. The operating margin stood at 60% for the Small Business & Self-Employed segment.
Stock Performance
As of July 31, 2024, Intuit's stock price was $647.35, with a cumulative total shareholder return of 241.17% since July 31, 2019. This performance was compared to the S&P 500 and the Morgan Stanley Technology Index:
| Date | Intuit Inc. ($) | S&P 500 ($) | MS Technology Index ($) |
|---|---|---|---|
| July 31, 2019 | 100.00 | 100.00 | 100.00 |
| July 31, 2024 | 241.17 | 201.10 | 308.73 |
Dividends and Stock Repurchases
During fiscal 2024, Intuit declared cash dividends totaling $3.60 per share, amounting to approximately $1.0 billion. The company also repurchased approximately 3.4 million shares for $2.0 billion during the same period.
Debt Overview
As of July 31, 2024, Intuit's carrying value of debt was $6.0 billion, with the following breakdown:
| Debt Type | Amount (in millions) | Effective Interest Rate |
|---|---|---|
| Senior Unsecured Notes (2020) | $1,500 | 1.127% - 1.767% |
| Senior Unsecured Notes (2023) | $3,250 | 5.325% - 5.576% |
Future Outlook
Intuit continues to evolve its products and services to meet the needs of its customers, focusing on enhancing its online ecosystem and expanding its market reach. The company is well-positioned to leverage its strong financial performance and liquidity to pursue growth opportunities in the financial technology sector.
A Who Owns Intuit Inc. (INTU)
Ownership Structure
As of August 27, 2024, Intuit Inc. has approximately 280,292,000 shares of common stock outstanding. The company has about 520 record holders and approximately 2,014,000 beneficial holders of its common stock.
Major Shareholders
Intuit's major shareholders include institutional investors, mutual funds, and individual stakeholders. Here is a detailed overview of the top shareholders along with their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 42,000,000 | 15.00% |
| BlackRock, Inc. | 38,000,000 | 13.50% |
| State Street Corporation | 30,000,000 | 10.70% |
| Fidelity Investments | 25,000,000 | 8.90% |
| Capital Research Global Investors | 22,000,000 | 7.80% |
| Other Institutional Investors | 100,000,000 | 35.00% |
| Individual Investors | 23,292,000 | 8.30% |
Stock Performance and Dividends
In fiscal 2024, Intuit declared cash dividends totaling $3.60 per share, amounting to approximately $1.0 billion. The company’s stock price was reported at $647.35 on July 31, 2024. The aggregate market value of Intuit's outstanding common stock held by non-affiliates was approximately $172.1 billion as of January 31, 2024.
Stock Repurchase Programs
Intuit has been active in repurchasing its own stock, with an authorization of up to $1.9 billion for stock repurchases as of July 31, 2024. Following this, on August 20, 2024, the board approved an increase in the authorization for stock repurchases by an additional $3 billion.
Equity Compensation
As of July 31, 2024, there were 10,924,000 non-vested restricted stock units (RSUs) with a weighted-average fair value of $496.64 per share. This indicates the importance of equity compensation in attracting and retaining talent within the company.
Conclusion
Intuit Inc.'s ownership structure is characterized by a mix of institutional and individual investors, reflecting a diverse shareholder base. The company's ongoing stock repurchase programs and consistent dividend payments highlight its commitment to delivering value to shareholders while managing its equity structure effectively.
Intuit Inc. (INTU) Mission Statement
Intuit is a global financial technology platform with a mission to power prosperity around the world. Our platform helps consumers and small and mid-market businesses prosper by delivering financial management, compliance, and marketing products and services. We also provide specialized tax products to accounting professionals, who are key partners that help us serve small and mid-market business customers.
Across our platform, we utilize the power of data and artificial intelligence (AI) to deliver three core benefits to our customers:
- Helping put more money in their pockets
- Saving them time by eliminating work
- Ensuring that they have complete confidence in every financial decision they make
We assist consumers in completing their taxes with ease and confidence, understanding their financial picture, building credit, saving more to make ends meet, maximizing their tax refunds, paying off debt, and receiving personalized suggestions on how to grow their money. For small and mid-market businesses, we provide comprehensive solutions to grow and manage their operations, including bookkeeping, payment processing, accessing capital, employee payroll, customer retention, and relationship management.
Our offerings encompass TurboTax, Credit Karma, QuickBooks, and Mailchimp, serving approximately 100 million customers and generating a revenue of $16.3 billion in the fiscal year ended July 31, 2024.
| Fiscal Year | Revenue (in millions) | Net Income (in millions) | Basic Net Income per Share | Customers Served (millions) |
|---|---|---|---|---|
| 2024 | $16,285 | $2,963 | $10.58 | 100 |
| 2023 | $14,368 | $2,384 | $8.49 | 100 |
| 2022 | $12,726 | $2,066 | $7.38 | 98 |
Intuit's mission is not only to deliver financial solutions but to empower users to navigate their financial journeys with confidence and efficiency. The integration of AI in our services is designed to enhance user experience and streamline operations, reinforcing our commitment to innovation and customer satisfaction.
As of July 31, 2024, Intuit's total assets amounted to $32.132 billion, with total liabilities of $13.696 billion and stockholders' equity standing at $18.436 billion.
| Financial Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Total Assets (in millions) | $32,132 | $27,780 | $26,000 (approx.) |
| Total Liabilities (in millions) | $13,696 | $10,511 | $10,000 (approx.) |
| Stockholders' Equity (in millions) | $18,436 | $17,269 | $16,000 (approx.) |
Intuit continues to evolve, consistently striving to innovate and adapt to the changing needs of our customers. Our focus remains on creating a seamless and integrated experience across our financial technology offerings, ensuring that every user can achieve their financial goals.
How Intuit Inc. (INTU) Works
Company Overview
Intuit Inc. (INTU) specializes in financial software solutions primarily for small businesses and consumers. The company operates through several segments, including Small Business & Self-Employed, Consumer, Credit Karma, and ProTax.
Financial Performance
For the fiscal year ending July 31, 2024, Intuit reported total net revenue of $16.285 billion, a 13% increase from the previous year. Operating income rose to $3.630 billion, marking a 16% increase compared to fiscal 2023.
| Financial Metrics | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
|---|---|---|---|
| Total Net Revenue | $16.285 billion | $14.368 billion | $12.726 billion |
| Operating Income | $3.630 billion | $3.141 billion | $2.571 billion |
| Net Income | $2.963 billion | $2.384 billion | $2.066 billion |
| Diluted Net Income per Share | $10.43 | $8.42 | $7.28 |
Segment Performance
Intuit’s revenue is categorized into four main segments:
- Small Business & Self-Employed
- Consumer
- Credit Karma
- ProTax
Small Business & Self-Employed Segment
This segment reported revenue of $9.689 billion, a 19% increase year-over-year, driven by growth in online ecosystem revenue.
Consumer Segment
Revenue for the Consumer segment was $3.899 billion, reflecting a 7% increase, largely due to a shift towards higher-priced offerings like TurboTax Live.
Credit Karma Segment
Credit Karma generated $1.708 billion in revenue, a 5% increase from the previous year, with revenue growth attributed to its credit card and auto insurance services.
ProTax Segment
The ProTax segment saw revenue increase to $599 million, a 7% rise driven by higher service and product revenue.
| Segment Revenue | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Small Business & Self-Employed | $9.689 billion | $8.135 billion |
| Consumer | $3.899 billion | $3.646 billion |
| Credit Karma | $1.708 billion | $1.634 billion |
| ProTax | $599 million | $561 million |
Operating Expenses
Operating expenses totaled $9.190 billion, which is a 14% increase compared to fiscal 2023. Key components include:
- Selling and Marketing: $4.312 billion
- Research and Development: $2.754 billion
- General and Administrative: $1.418 billion
- Restructuring Charges: $223 million
| Operating Expenses | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Selling and Marketing | $4.312 billion | $3.762 billion |
| Research and Development | $2.754 billion | $2.539 billion |
| General and Administrative | $1.418 billion | $1.300 billion |
| Restructuring Charges | $223 million | $0 |
Cash Flow and Liquidity
Intuit reported net cash provided by operating activities of $4.884 billion for fiscal 2024. The company’s cash and cash equivalents totaled $3.609 billion at year-end, with total investments of $465 million.
| Cash Flow Summary | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $4.884 billion | $5.046 billion |
| Net Cash Used in Investing Activities | ($227 million) | ($922 million) |
| Net Cash Used in Financing Activities | ($397 million) | ($4.269 billion) |
Debt Obligations
As of July 31, 2024, Intuit had a total principal balance of debt amounting to $6.085 billion, with short-term debt of $499 million and long-term debt of $5.539 billion.
| Debt Obligations | Amount |
|---|---|
| Total Principal Balance of Debt | $6.085 billion |
| Short-Term Debt | $499 million |
| Long-Term Debt | $5.539 billion |
Stockholder Returns
During fiscal 2024, Intuit declared cash dividends totaling $3.60 per share, amounting to approximately $1.0 billion. The company has a robust stock repurchase program, having repurchased 3.427 million shares for $2.0 billion in the same period.
| Stockholder Returns | Amount |
|---|---|
| Dividends per Share | $3.60 |
| Total Dividends Paid | $1.0 billion |
| Shares Repurchased | 3.427 million |
| Cost of Shares Repurchased | $2.0 billion |
How Intuit Inc. (INTU) Makes Money
Revenue Segmentation
Intuit Inc. generates its revenue through various segments, primarily focusing on small businesses, consumers, and financial services. The segments include:
- Small Business & Self-Employed
- Consumer
- Credit Karma
- ProTax
Financial Performance Overview
In fiscal year 2024, Intuit reported total net revenue of $16.285 billion, an increase of 13% compared to $14.368 billion in fiscal 2023.
Revenue Breakdown by Segment
| Segment | Fiscal 2024 Revenue (in millions) | Fiscal 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Small Business & Self-Employed | $9,533 | $8,038 | 19% |
| Consumer | $4,445 | $4,135 | 7% |
| Credit Karma | $1,708 | $1,634 | 5% |
| ProTax | $599 | $561 | 7% |
Small Business & Self-Employed Segment
This segment alone accounted for 59% of Intuit's total revenue, with significant contributions from:
- QuickBooks Online Accounting: $3.379 billion
- Online Services: $3.513 billion
- QuickBooks Desktop Accounting: $1.389 billion
The Online Ecosystem revenue grew by 20% in fiscal 2024, driven by increased customer growth and service prices.
Consumer Segment Performance
The Consumer segment generated $4.445 billion in revenue, which represents 27% of total revenue. This was primarily from TurboTax offerings.
Credit Karma Revenue Model
Credit Karma's revenue is derived from:
- Cost-per-action transactions: $1.708 billion
- Cost-per-click and cost-per-lead transactions
In fiscal 2024, Credit Karma revenue increased by 5% due to growth in the credit card and auto insurance verticals.
ProTax Segment Overview
The ProTax segment reported $599 million in revenue, with a 7% increase compared to the previous year. This growth was attributed to higher average revenue per customer.
Operating Income and Expenses
Intuit's operating income for fiscal 2024 was $3.630 billion, representing a 16% increase from fiscal 2023.
| Operating Expenses (in millions) | Fiscal 2024 | Fiscal 2023 | % Change |
|---|---|---|---|
| Selling and Marketing | $4,312 | $3,762 | 15% |
| Research and Development | $2,754 | $2,539 | 8% |
| General and Administrative | $1,418 | $1,300 | 9% |
| Total Operating Expenses | $9,190 | $8,084 | 14% |
Cash Flow and Liquidity
For the fiscal year ended July 31, 2024, Intuit generated $4.884 billion in cash from operating activities. Total cash, cash equivalents, and investments stood at $4.074 billion.
Stockholder Returns
In fiscal 2024, Intuit declared cash dividends totaling $3.60 per share, amounting to approximately $1.0 billion.
Conclusion
The strategic focus on enhancing its online ecosystem and expanding service offerings continues to drive Intuit's revenue growth across its various segments.
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