Intuit (NASDAQ:INTU) has released its financial results for the fiscal fourth quarter of 2023, revealing non-GAAP earnings of $1.65 per share. This figure exceeded the Zacks Consensus Estimate by 19.57%, showcasing a remarkable 65% surge compared to the same period last year. The company’s revenues for the quarter reached $2.71 billion, surpassing the consensus estimate by 2.68%. This marked a notable year-on-year increase of 12.3%.
In-Depth Analysis of the Quarter
Looking at the performance across segments, the Small Business and Self-Employed Group experienced a substantial 21% growth in revenues, totaling $2.13 billion. Within the Total Online Ecosystem category, revenues climbed by 21.2% year over year to reach $1.55 billion.
Notably, QuickBooks Online Accounting revenues contributed significantly to this growth, displaying a 22.3% increase to $762 million. The Online Services segment, which encompasses payroll, payments, time tracking, and capital-related solutions, reported a robust 20.1% increase in revenues, amounting to $789 million. This success was attributed to the outstanding performances of Mailchimp, QuickBooks Online payroll, and QuickBooks Online payments solutions. In the QuickBooks Online payroll sector, the adoption of INTU’s full-service offering and a steady expansion of the customer base provided a positive impact.
Additionally, QuickBooks Online payments experienced revenue growth driven by both an increase in charge volume per customer and continuous customer expansion. On an international scale, total online revenues exhibited a remarkable 31% increase year over year, considering constant currency factors. Turning attention to the Total Desktop Ecosystem, revenues observed a significant 18.8% boost during the quarter, reaching $581 million. However, the Consumer Group faced an 11.7% decrease in revenues, reporting $128 million for the fiscal fourth quarter. In contrast, ProTax Group’s professional tax revenues demonstrated a notable 12% year-on-year increase, amounting to $28 million.
Impact of Credit Karma and Non-GAAP Operating Income
The Credit Karma business contributed $424 million to Intuit’s fourth-quarter total revenues, experiencing a 10.7% decline compared to the previous year due to challenges in areas like personal loans, auto insurance, home loans, and auto loans. Intuit’s non-GAAP operating income showcased significant growth, rising by 44.8% to reach $627 million.
Financial Position and Future Projections
As of April 30, 2023, Intuit’s cash and investments stood at $3.6 billion, down from $4.3 billion at the end of April 2022. The company concluded the fiscal fourth quarter with long-term debt totaling $6.12 billion. Over the course of fiscal year 2023, the company generated $5.04 billion in cash from operating activities. Intuit engaged in stock repurchasing, buying back $2 billion worth of its own shares during the fiscal year 2023. The company’s board of directors authorized an additional $2.3 billion for stock repurchases, bringing the total authorization for share repurchases to $3.8 billion. Looking ahead, INTU announced that its board approved a quarterly dividend of 90 cents per share, scheduled to be paid on October 17, 2023. This dividend represents a 15% increase compared to the previous year.
Future outlook for Intuit indicates projected revenue growth of 10% to 11% for the fiscal first quarter of 2024, ranging from $2.86 billion to $2.895 billion. Estimated non-GAAP earnings per share for the same quarter are within the range of $1.94 to $2. For the entire fiscal year 2024, Intuit anticipates revenues ranging from $15.89 billion to $16.105 billion, reflecting an 11-12% growth. The company’s projected non-GAAP operating income falls between $6.155 billion and $6.26 billion, with expected non-GAAP earnings per share ranging from $16.17 to $16.47.
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