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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Intuit Inc | NASDAQ:INTU | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
1.18 | 0.20% | 595.80 | 532.80 | 670.00 | 599.98 | 594.59 | 598.40 | 1,070,502 | 05:00:11 |
Small Business and Self-Employed Group Revenue Grew 18 Percent
Intuit Inc. (NASDAQ: INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced financial results for the third quarter of fiscal 2024, which ended April 30.
“The era of AI is one of the most significant technology shifts in our lifetime and our strategy to be the global AI-driven expert platform is delivering significant benefits to our customers and strong results across the company,” said Sasan Goodarzi, Intuit's chief executive officer. “I'm proud of our innovation and performance, and because of our momentum, we are raising Intuit's revenue, operating income, and earnings per share guidance for the fiscal year.”
Financial Highlights
For the third quarter, Intuit:
Unless otherwise noted, all growth rates refer to the current period versus the comparable prior-year period, and the business metrics and associated growth rates refer to worldwide business metrics.
Snapshot of Third-quarter Results
GAAP
Non-GAAP
Q3
FY24
Q3
FY23
Change
Q3
FY24
Q3
FY23
Change
Revenue
$6,737
$6,018
12%
$6,737
$6,018
12%
Operating Income
$3,105
$2,778
12%
$3,712
$3,358
11%
Earnings Per Share
$8.42
$7.38
14%
$9.88
$8.92
11%
Dollars are in millions, except earnings per share. See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP).
Business Segment Results
Consumer Group
Consumer Group revenue grew to $3.7 billion, up 9 percent, in the third fiscal quarter.
For the full fiscal year, Intuit expects:
Unless otherwise noted above, all growth rates refer to Intuit's expectations for the tax filing season through July 31, 2024 compared to the prior season through July 31, 2023.
Intuit plans to provide a TurboTax federal tax unit comparison in its fourth quarter 2024 earnings release.
Small Business and Self-Employed Group
Small Business and Self-Employed Group revenue grew to $2.4 billion, up 18 percent, and Online Ecosystem revenue increased to $1.8 billion, up 19 percent.
Credit Karma
Credit Karma revenue grew to $443 million, up 8 percent, driven by strength in Credit Karma Money, credit cards, auto insurance, and personal loans.
Capital Allocation Summary
In the third quarter, the company:
Forward-looking Guidance
Intuit raised total company guidance for the full fiscal year 2024. The company expects:
The company also updated full fiscal year 2024 segment revenue guidance:
Intuit announced guidance for the fourth quarter of fiscal year 2024, which ends July 31. The company expects:
Conference Call Details
Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on May 23. The conference call can be heard live at https://investors.intuit.com/events-and-presentations/default.aspx. Prepared remarks for the call will be available on Intuit’s website after the call ends.
Replay Information
A replay of the conference call will be available for one week by calling 800-723-0549, or 402-220-2657 from international locations. There is no passcode required. The audio call will remain available on Intuit’s website for one week after the conference call.
About Intuit
Intuit is the global financial technology platform that powers prosperity for the people and communities we serve. With approximately 100 million customers worldwide using products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, we believe that everyone should have the opportunity to prosper. We never stop working to find new, innovative ways to make that possible. Please visit us at Intuit.com and find us on social for the latest information about Intuit and our products and services.
About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled "About Non-GAAP Financial Measures" as well as the related Table B1, Table B2, and Table E. A copy of the press release issued by Intuit today can be found on the investor relations page of Intuit's website.
Cautions About Forward-looking Statements
This press release contains forward-looking statements, including expectations regarding: the size, components and our share of the tax preparation software space; forecasts and timing of growth and future financial results of Intuit and its reporting segments; the impact of macroeconomic conditions on our business, segments and products; Intuit’s prospects for the business in fiscal 2024; timing and growth of revenue from current or future products and services; Intuit's corporate tax rate; the amount and timing of any future dividends or share repurchases; and the impact of acquisitions and other strategic decisions on our business; as well as all of the statements under the heading “Forward-looking Guidance.”
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These risks and uncertainties may be amplified by the effects of global developments and conditions or events, including macroeconomic uncertainty and geopolitical conditions, which have caused significant global economic instability and uncertainty. Given these risks and uncertainties, persons regarding this communication are cautioned not to place any undue reliance on such forward-looking statements. These factors include, without limitation, the following: our ability to compete successfully; potential governmental encroachment in our tax businesses; our ability to develop, deploy, and use artificial intelligence in our platform and products; our ability to adapt to technological change and to successfully extend our platform; our ability to predict consumer behavior; our reliance on intellectual property; our ability to protect our intellectual property rights; any harm to our reputation; risks associated with our ESG and DEI practices; risks associated with acquisition and divestiture activity; the issuance of equity or incurrence of debt to fund acquisitions or for general business purposes; cybersecurity incidents (including those affecting the third parties we rely on); customer concerns about privacy and cybersecurity incidents; fraudulent activities by third parties using our offerings; our failure to process transactions effectively; interruption or failure of our information technology; our ability to maintain critical third-party business relationships; our ability to attract and retain talent and the success of our hybrid work model; any deficiency in the quality or accuracy of our offerings (including the advice given by experts on our platform); any delays in product launches; difficulties in processing or filing customer tax submissions; risks associated with international operations; risks associated with climate change; changes to public policy, laws or regulations affecting our businesses; legal proceedings in which we are involved; fluctuations in the results of our tax business due to seasonality and other factors beyond our control; changes in tax rates and tax reform legislation; global economic conditions (including, without limitation, inflation); exposure to credit, counterparty and other risks in providing capital to businesses; amortization of acquired intangible assets and impairment charges; our ability to repay or otherwise comply with the terms of our outstanding debt; our ability to repurchase shares or distribute dividends; volatility of our stock price; and our ability to successfully market our offerings.
More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2023 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. Fourth-quarter and full-year fiscal 2024 guidance speaks only as of the date it was publicly issued by Intuit. Other forward-looking statements represent the judgment of the management of Intuit as of the date of this presentation. Except as required by law, we do not undertake any duty to update any forward-looking statement or other information in this presentation.
TABLE AINTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
April 30, 2024
April 30, 2023
April 30, 2024
April 30, 2023
Net revenue:
Service
$
6,048
$
5,404
$
11,191
$
9,977
Product and other
689
614
1,910
1,679
Total net revenue
6,737
6,018
13,101
11,656
Costs and expenses:
Cost of revenue:
Cost of service revenue
1,014
924
2,517
2,252
Cost of product and other revenue
17
17
55
56
Amortization of acquired technology
36
40
110
122
Selling and marketing
1,419
1,203
3,208
2,922
Research and development
671
604
2,029
1,859
General and administrative
355
332
1,041
959
Amortization of other acquired intangible assets
120
120
360
362
Total costs and expenses [A]
3,632
3,240
9,320
8,532
Operating income
3,105
2,778
3,781
3,124
Interest expense
(60
)
(66
)
(182
)
(180
)
Interest and other income, net
27
22
91
50
Income before income taxes
3,072
2,734
3,690
2,994
Income tax provision [B]
683
647
707
699
Net income
$
2,389
$
2,087
$
2,983
$
2,295
Basic net income per share
$
8.53
$
7.44
$
10.65
$
8.17
Shares used in basic per share calculations
280
281
280
281
Diluted net income per share
$
8.42
$
7.38
$
10.51
$
8.11
Shares used in diluted per share calculations
284
283
284
283
See accompanying Notes.
INTUIT INC.
NOTES TO TABLE A
[A]
The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.
Three Months Ended
Nine Months Ended
(In millions)
April 30, 2024
April 30, 2023
April 30, 2024
April 30, 2023
Cost of revenue
$
98
$
114
$
300
$
291
Selling and marketing
121
96
369
310
Research and development
155
116
478
384
General and administrative
77
93
274
279
Total share-based compensation expense
$
451
$
419
$
1,421
$
1,264
[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.
For the three and nine months ended April 30, 2024, we recognized excess tax benefits on share-based compensation of $40 million and $123 million, respectively, in our provision for income taxes. For the three and nine months ended April 30, 2023, we recognized excess tax benefits on share-based compensation of $17 million and $15 million, respectively, in our provision for income taxes.
Our effective tax rates for the three and nine months ended April 30, 2024 were approximately 22% and 19%, respectively. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
Our effective tax rates for the three and nine months ended April 30, 2023 were approximately 24% and 23%, respectively. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
In the current global tax policy environment, the U.S. and other domestic and foreign governments continue to consider, and in some cases enact, changes in corporate tax laws. As changes occur, we account for finalized legislation in the period of enactment.
TABLE B1
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)
Fiscal 2024
Q1
Q2
Q3
Q4
Year to Date
GAAP operating income (loss)
$
307
$
369
$
3,105
$
—
$
3,781
Amortization of acquired technology
38
36
36
—
110
Amortization of other acquired intangible assets
120
120
120
—
360
Share-based compensation expense
495
475
451
—
1,421
Non-GAAP operating income (loss)
$
960
$
1,000
$
3,712
$
—
$
5,672
GAAP net income (loss)
$
241
$
353
$
2,389
$
—
$
2,983
Amortization of acquired technology
38
36
36
—
110
Amortization of other acquired intangible assets
120
120
120
—
360
Share-based compensation expense
495
475
451
—
1,421
Net (gain) loss on debt securities and other investments
1
(3
)
1
—
(1
)
Loss on disposal of a business
1
—
9
—
10
Income tax effects and adjustments [A]
(198
)
(235
)
(202
)
—
(635
)
Non-GAAP net income (loss)
$
698
$
746
$
2,804
$
—
$
4,248
GAAP diluted net income (loss) per share
$
0.85
$
1.25
$
8.42
$
—
$
10.51
Amortization of acquired technology
0.13
0.13
0.13
—
0.39
Amortization of other acquired intangible assets
0.42
0.42
0.42
—
1.26
Share-based compensation expense
1.75
1.67
1.59
—
5.00
Net (gain) loss on debt securities and other investments
0.01
(0.01
)
—
—
—
Loss on disposal of a business
0.01
—
0.03
—
0.04
Income tax effects and adjustments [A]
(0.70
)
(0.83
)
(0.71
)
—
(2.24
)
Non-GAAP diluted net income (loss) per share
$
2.47
$
2.63
$
9.88
$
—
$
14.96
Shares used in GAAP diluted per share calculations
283
284
284
—
284
Shares used in non-GAAP diluted per share calculations
283
284
284
—
284
[A]
As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and Adjustments” following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and tax benefits related to share-based compensation.
See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.
TABLE B2
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In millions, except per share amounts)
(Unaudited)
Fiscal 2023
Q1
Q2
Q3
Q4
Full Year
GAAP operating income (loss)
$
76
$
270
$
2,778
$
17
$
3,141
Amortization of acquired technology
41
41
40
41
163
Amortization of other acquired intangible assets
121
121
120
121
483
Professional fees for business combinations
2
1
1
—
4
Share-based compensation expense
422
423
419
448
1,712
Non-GAAP operating income (loss)
$
662
$
856
$
3,358
$
627
$
5,503
GAAP net income (loss)
$
40
$
168
$
2,087
$
89
$
2,384
Amortization of acquired technology
41
41
40
41
163
Amortization of other acquired intangible assets
121
121
120
121
483
Professional fees for business combinations
2
1
1
—
4
Share-based compensation expense
422
423
419
448
1,712
Net (gain) loss on debt securities and other investments
—
2
6
1
9
Loss on disposal of a business
—
—
—
8
8
Income tax effects and adjustments [A]
(156
)
(136
)
(150
)
(241
)
(683
)
Non-GAAP net income (loss)
$
470
$
620
$
2,523
$
467
$
4,080
GAAP diluted net income (loss) per share
$
0.14
$
0.60
$
7.38
$
0.32
$
8.42
Amortization of acquired technology
0.14
0.14
0.14
0.14
0.57
Amortization of other acquired intangible assets
0.43
0.43
0.43
0.43
1.71
Professional fees for business combinations
0.01
—
—
—
0.01
Share-based compensation expense
1.49
1.50
1.48
1.58
6.05
Net (gain) loss on debt securities and other investments
—
0.01
0.02
—
0.03
Loss on disposal of a business
—
—
—
0.03
0.03
Income tax effects and adjustments [A]
(0.55
)
(0.48
)
(0.53
)
(0.85
)
(2.42
)
Non-GAAP diluted net income (loss) per share
$
1.66
$
2.20
$
8.92
$
1.65
$
14.40
Shares used in GAAP diluted per share calculations
284
282
283
283
283
Shares used in non-GAAP diluted per share calculations
284
282
283
283
283
[A]
As discussed in "About Non-GAAP Financial Measures - Income Tax Effects and Adjustments" following Table E, our long-term non-GAAP tax rate eliminates the effects of non-recurring and period-specific items. Income tax adjustments consist primarily of the tax impact of the non-GAAP pre-tax adjustments and tax benefits related to share-based compensation.
See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.
TABLE C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
April 30, 2024
July 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
4,215
$
2,848
Investments
463
814
Accounts receivable, net
790
405
Notes receivable held for investment, net
698
687
Notes receivable held for sale
7
—
Income taxes receivable
4
29
Prepaid expenses and other current assets
337
354
Current assets before funds receivable and amounts held for customers
6,514
5,137
Funds receivable and amounts held for customers
2,722
420
Total current assets
9,236
5,557
Long-term investments
129
105
Property and equipment, net
1,032
969
Operating lease right-of-use assets
428
469
Goodwill
13,778
13,780
Acquired intangible assets, net
5,950
6,419
Long-term deferred income tax assets
512
64
Other assets
495
417
Total assets
$
31,560
$
27,780
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
886
$
638
Accrued compensation and related liabilities
689
665
Deferred revenue
843
921
Income taxes payable
437
698
Other current liabilities
586
448
Current liabilities before funds payable and amounts due to customers
3,441
3,370
Funds payable and amounts due to customers
2,722
420
Total current liabilities
6,163
3,790
Long-term debt
5,952
6,120
Long-term deferred income tax liabilities
3
4
Operating lease liabilities
468
480
Other long-term obligations
217
117
Total liabilities
12,803
10,511
Stockholders’ equity
18,757
17,269
Total liabilities and stockholders’ equity
$
31,560
$
27,780
TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended
April 30, 2024
April 30, 2023
Cash flows from operating activities:
Net income
$
2,983
$
2,295
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
111
127
Amortization of acquired intangible assets
470
484
Non-cash operating lease cost
63
68
Share-based compensation expense
1,421
1,264
Deferred income taxes
(361
)
(389
)
Other
69
48
Total adjustments
1,773
1,602
Originations and purchases of loans held for sale
(96
)
—
Sales and principal repayments of loans held for sale
98
—
Changes in operating assets and liabilities:
Accounts receivable
(384
)
(269
)
Income taxes receivable
25
91
Prepaid expenses and other assets
18
(286
)
Accounts payable
286
212
Accrued compensation and related liabilities
20
45
Deferred revenue
(79
)
18
Income taxes payable
(262
)
646
Operating lease liabilities
(45
)
(59
)
Other liabilities
130
(91
)
Total changes in operating assets and liabilities
(291
)
307
Net cash provided by operating activities
4,467
4,204
Cash flows from investing activities:
Purchases of corporate and customer fund investments
(564
)
(566
)
Sales of corporate and customer fund investments
491
196
Maturities of corporate and customer fund investments
489
335
Purchases of property and equipment
(208
)
(220
)
Acquisitions of businesses, net of cash acquired
—
(33
)
Originations and purchases of loans held for investment
(1,926
)
(1,600
)
Sales of loans originally classified as held for investment
101
—
Principal repayments of loans held for investment
1,688
1,365
Other
(46
)
(26
)
Net cash provided by (used in) investing activities
25
(549
)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of discount and issuance costs
3,956
—
Repayments of debt
(4,200
)
(509
)
Proceeds from borrowings under unsecured revolving credit facility
100
—
Repayments on borrowings under unsecured revolving credit facility
(100
)
—
Proceeds from borrowings under secured revolving credit facilities
95
212
Repayments on borrowings under secured revolving credit facilities
(25
)
(22
)
Proceeds from issuance of stock under employee stock plans
226
150
Payments for employee taxes withheld upon vesting of restricted stock units
(632
)
(376
)
Cash paid for purchases of treasury stock
(1,707
)
(1,495
)
Dividends and dividend rights paid
(773
)
(667
)
Net change in funds receivable and funds payable and amounts due to customers
2,212
(196
)
Other
(3
)
(1
)
Net cash used in financing activities
(851
)
(2,904
)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents
(12
)
2
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents
3,629
753
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period
2,852
2,997
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period
$
6,481
$
3,750
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the condensed consolidated balance sheets to the total amounts reported on the condensed consolidated statements of cash flows
Cash and cash equivalents
$
4,215
$
3,745
Restricted cash and restricted cash equivalents included in funds receivable and amounts held for customers
2,266
5
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period
$
6,481
$
3,750
Supplemental schedule of non-cash investing activities:
Transfers of loans originated or purchased as held for investment to held for sale
$
106
$
—
TABLE E
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS
(In millions, except per share amounts)
(Unaudited)
Forward-Looking Guidance
GAAP Range of Estimate
Non-GAAP Range of Estimate
From
To
Adjmts
From
To
Three Months Ending July 31, 2024
Revenue
$
3,063
$
3,099
$
—
$
3,063
$
3,099
Operating income
$
34
$
54
$
654
[a]
$
688
$
708
Diluted net income per share
$
0.25
$
0.30
$
1.55
[b]
$
1.80
$
1.85
Twelve Months Ending July 31, 2024
Revenue
$
16,164
$
16,200
$
—
$
16,164
$
16,200
Operating income
$
3,815
$
3,835
$
2,545
[c]
$
6,360
$
6,380
Diluted net income per share
$
10.78
$
10.83
$
6.01
[d]
$
16.79
$
16.84
See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.
[a]Reflects estimated adjustments for share-based compensation expense of approximately $497 million; amortization of other acquired intangible assets of approximately $121 million; and amortization of acquired technology of approximately $36 million.
[b]
Reflects 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 $1.9 billion; amortization of other acquired intangible assets of approximately $481 million; and amortization of acquired technology of approximately $146 million.
[d]
Reflects 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.
INTUIT INC. ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated May 23, 2024 contains non-GAAP financial measures. Table B1, Table B2, and Table E reconcile the non-GAAP financial measures in that press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP net income (loss) per share.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
We exclude the following items from all of our non-GAAP financial measures:
We also exclude the following items from non-GAAP net income (loss) and diluted net income (loss) per share:
We believe these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s operating results primarily because they exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization, our individual operating segments, or our senior management. Segment managers are not held accountable for share-based compensation expense, amortization, or the other excluded items and, accordingly, we exclude these amounts from our measures of segment performance. We believe our non-GAAP financial measures also facilitate the comparison by management and investors of results for current periods and guidance for future periods with results for past periods.
The following are descriptions of the items we exclude from our non-GAAP financial measures.
Share-based compensation expense. This consists of non-cash expenses for stock options, restricted stock units, and our Employee Stock Purchase Plan. When considering the impact of equity awards, we place greater emphasis on overall shareholder dilution rather than the accounting charges associated with those awards.
Amortization of acquired technology and amortization of other acquired intangible assets. When we acquire a business in a business combination, we are required by GAAP to record the fair values of the intangible assets of the business and amortize them over their useful lives. Amortization of acquired technology in cost of revenue includes amortization of software and other technology assets of acquired businesses. Amortization of other acquired intangible assets in operating expenses includes amortization of assets such as customer lists, covenants not to compete, and trade names.
Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial measures non-cash charges to adjust the carrying values of goodwill and other acquired intangible assets to their estimated fair values.
Gains and losses on disposals of businesses and long-lived assets. We exclude from our non-GAAP financial measures gains and losses on disposals of businesses and long-lived assets because they are unrelated to our ongoing business operating results.
Professional fees and transaction costs for business combinations. We exclude from our non-GAAP financial measures the professional fees we incur to complete business combinations. These include investment banking, legal, and accounting fees.
Gains and losses on debt securities and other investments. We exclude from our non-GAAP financial measures credit losses on available-for-sale debt securities and gains and losses on other investments.
Income tax effects and adjustments. We use a long-term non-GAAP tax rate for evaluating operating results and for planning, forecasting, and analyzing future periods. This long-term non-GAAP tax rate excludes the income tax effects of the non-GAAP pre-tax adjustments described above, and eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Based on our long-term projections, we are using a long-term non-GAAP tax rate of 24% for fiscal year 2024 and fiscal year 2023. This long-term non-GAAP tax rate could be subject to change for various reasons including significant acquisitions, changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate. We will evaluate this long-term non-GAAP tax rate on an annual basis and whenever any significant events occur which may materially affect this rate.
Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures.
The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in Table E include all information reasonably available to Intuit at the date of this press release. These tables include adjustments that we can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments, sales of available-for-sale debt securities and other investments, and disposals of businesses and long-lived assets.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240523669287/en/
Investors Kim Watkins Intuit Inc. 650-944-3324 kim_watkins@intuit.com
Media Kali Fry Intuit Inc. 650-944-3036 kali_fry@intuit.com
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