This summary is based on the third quarter fiscal 2008 earnings call conducted by Intuit Inc. (INTU) on May 20, 2008.
Management:
Vice President, Investor Relations: Bob Lawson
President, Chief Executive Officer, Director: Brad D. Smith
Chief Financial Officer, Senior Vice President: R. Neil Williams
Chairman of the Executive Committee, Director: Scott D. Cook
Key Investors Issues
- EPS were $1.33 a share compared to $1.04 a share last year.
- Net income rose to $444.2 million from $367.2 million in the same period a year earlier.
- Revenue rose 15% to $1.31 billion.
Third Quarter Highlights
Revenue of $1.3 billion was up 15% year-over-year.
- Non-GAAP operating income of $728 million was up 17% year-over-year.
- Non-GAAP earnings per share of $1.39 increased 23% year-over-year.
- GAAP earnings per share of $1.33 increased 28% year-over-year.
Consumer Tax revenue was $657 million, up 16% over the year-ago period.
Year to date, revenue is up 15% and units are up 17%.
Strong performance was driven by continued focus on ease of use, execution of marketing programs throughout the tax season, and the success of free federal product.
- Unit growth started strong and continued to accelerate as the season progressed.
- Growth outpaced the category and the company gained about 3 points of market share in retail and about 1 point of share online.
Professional Tax revenue of $166 million was up 20%, in line with expectations and reflecting a shift of revenue from the second quarter to the third quarter.
Year-to-date Professional Tax revenue is up 1%.
Total Small Business revenue grew 9%.
- Within Small Business, QuickBooks revenue of $165 million was up 5% over the year-ago period. Excluding about $6 million of revenue from Homestead, which was acquired in December 2007, QuickBooks revenue was up about 2% from the third quarter of last year.
- QuickBooks units, including free SimpleStart activations, were also up.
The Payroll and Payments segment delivered solid growth, with revenue of $142 million.
- Adjusted for the impact of the ADP sale and the acquisition of Electronic Clearing House Inc., segment revenue was up 13%. This was driven by 20% growth in Payments customers and 1.5% growth in transaction volume per customer.
- Growth has slowed from prior quarters due to a reduction in Payroll float revenue and slower growth in charge volume per merchant.
Financial Institutions revenue was $76 million.
Adjusting for the timing of the Digital Insight purchase, which closed February 6th of 2007, growth would have been 10%.
