This summary is based on the third quarter fiscal 2007 earnings call conducted by Intuit Inc. (INTU: chart) on May 17, 2007.

Founder: Scott Cook

President and Chief Executive Officer: Stephen M. Bennett

SVP and Chief Financial Officer: Kiran M. Patel

Vice President of Investor Relations and Financial Planning & Analysis: Robert Lawson

Key Investors Issues

- GAAP Earnings per share was $1.04 compared 84 cents in the prior year.
- Quarterly revenue grew 21% over the prior year to $1.15 billion.
- Intuit ended the third quarter with $1.4 billion in cash and investments.

Third Quarter Fiscal 2007 Financial Highlights

The third-quarter 2007 revenue increased 21% over the year-ago quarter to $1.15 billion.

This marks the first time Intuit revenue has exceeded $1 billion in a quarter. Growth was driven by a strong tax season, excellent performance in QuickBooks and the acquisition of Digital Insight to create a Financial Institutions segment. Revenue for the first nine months of the fiscal year grew 14%.

Intuit posted GAAP net income of $367 million compared to $299 million in the third quarter of 2006.

This represents diluted net income per share of $1.04 compared to net income per share of 84 cents in the year-ago quarter. Intuit posted non-GAAP net income of $399 million, or $1.13 per share versus $318 million, or 89 cents per share in the third quarter of 2006.

- Intuit ended the third quarter with $1.4 billion in cash and investments.
- The firm used $301 million to buyback $10.4 million shares of Intuit stock during the quarter completion of previous authorization. The firm announced an additional $800 million for future share repurchases.
- During the quarter, Intuit replaced the bridge financing put in place for the acquisition of Digital Insight with long-term financing. The firm issued $500 million of five-year notes and $500 million of ten-year notes. The firm also secured a $500 million revolving credit facility.

Performance Analysis of Segments

Third quarter consumer tax revenue was $567 million, up 14% over the year ago period. Season to-date consumer tax revenue is up 15%. Year-to-date total tax federal units are up 17% on the web and 6% overall despite pricing on some low priced bulk deals early in the season which would have added about 2 points of growth to non file alliance unit numbers.

Professional tax revenue is up 6% year-to-date, revenue for the third quarter was $138 million, up 32% over the third quarter of 2006. The third quarter revenue includes approximately $25 million that shifted from second quarter to the third quarter compared to last year.

QuickBooks had an excellent quarter. Revenue was $159 million, up 22% year-over-year. Software units grew 20% with particular strength in the Premier Edition and Simple Start, which is targeted for new small businesses. Year-to-date QuickBooks revenue is up 10% and software units are up 8%.

Many people find QuickBooks was out of guess after Y2K, when the firm sold little over 900,000 units. This year the company will sell more than 1.6 million. Of the roughly 700,000 additional units, 300,000 had come from growing the core QuickBooks category and 400,000 are the result of creating new categories with product launch since Y2K. QuickBooks Enterprise Edition, which is now about $15 million business, and QuickBooks Online Edition which has more than 100,000 subscribers, and revenue per customer grows as the firm sells more of their needs. This year the firm will sell more than 300,000 Premier units at double the price of QuickBooks Pro.

Payroll and Payments business added revenue of $125 million, up 7% year-over-year. The Payments revenue growth was driven by 23% growth in customers and 8% in transaction volume per customer. Segment results reflect the transition of the firm’s fully outsourced payroll customers to ADP. Without that one time event, Payroll and Payments revenue would have been up 13% this quarter. Total small business, which combines QuickBooks and Payroll and Payments, showed revenue growth of 15% for the quarter and 12% year-to-date.

Financial Institutions revenue of $65 million includes the results of Digital Insight (DI), which was acquired on February 6 and the Financial Institutions business previously reported in the other segment. Since this is the first quarter that the firm is including DI’s results, the revenue growth percentages aren’t meaningful. On a standalone basis DI’s core internet banking revenue grew about 14% and total revenue grew 11%. These results are consistent with the trends and guidance DI had given prior to the acquisition. The company’s fact sheet now includes two customer metrics for this segment; the number of internet banking end users and the number of bill pay end users. In the third quarter, internet banking end users grew 17% and bill pay end users grew 26% over the same period a year ago.