Intuit Press Release- Intuit Posts Record Revenue of $713 Million in Third Quarter

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Intuit Posts Record Revenue of $713 Million in Third Quarter

Third-Quarter Revenue Up 12%; Pro Forma EPS Up 14%

MOUNTAIN VIEW, Calif. - May 19, 2004 - Intuit Inc. (Nasdaq: INTU) today announced results for the third quarter of fiscal 2004, which ended April 30, 2004.

"Intuit delivered great results for the third quarter," said Steve Bennett, Intuit's president and chief executive officer. "For the first time in Intuit's history, we had quarterly revenue of more than $700 million. Pro forma diluted EPS of $1.20 also set a new quarterly record. QuickBooks had a great quarter and we're coming off another strong TurboTax season."

Third-Quarter 2004 Highlights

Revenue of $713.0 million increased 12 percent from the year-ago quarter.
Pro forma operating income of $356.9 increased 11 percent from $320.6 million in the year-ago quarter. Pro forma net income of $238.7 million increased 8 percent from $220.3 million in the year-ago quarter. Pro forma diluted earnings per share (EPS) of $1.20 increased 14 percent from $1.05 in the third quarter of fiscal 2003.
Intuit had GAAP (Generally Accepted Accounting Principles) operating income of $347.1 million, up 13 percent from $308.5 million in the year-ago quarter. Intuit had GAAP net income of $264.0 million, down 10 percent from $294.0 million in the year-ago quarter. This represents GAAP diluted EPS of $1.33 per diluted share, down 5 percent from $1.40 per diluted share in the year-ago quarter. Last year's GAAP results included a one-time gain of $71 million, or $0.34 per diluted share, from the sale of Intuit's Japan operations.

Third-Quarter Business Segment Revenue Growth

TurboTax revenue of $344.7 million was up 10 percent from third-quarter 2003.
Professional Accounting Solutions (PAS) revenue of $82.5 million increased 3 percent over the year-ago quarter.
QuickBooks revenue of $73.0 million grew 31 percent year-over-year.
Small Business Products and Services revenue of $137.6 million increased 20 percent over the year-ago quarter. This segment includes Intuit's payroll businesses as well as other non-accounting products and services.
Vertical Business Management Solutions revenue of $27.5 million increased 7 percent year-over-year.
Other Businesses, which includes Quicken and Canada, had revenue of $47.6 million, up 6 percent from the year-ago quarter.

Fourth-Quarter 2004 Guidance
Although financial analysts have developed their own estimates for Intuit's fourth-quarter performance, Intuit had not previously issued guidance for the quarter. Intuit's expected results for the fourth-quarter 2004, which will end July 31, 2004 are:

Revenue of $258 million to $278 million, or year-over-year growth of 5 percent to 13 percent.
A pro forma operating loss of $30 million to $40 million and a GAAP operating loss of $38 million-$48 million.
A pro forma net loss per diluted share of $0.06 to $0.10 and a GAAP net loss per diluted share of $0.09 to $0.13.

Fiscal 2004 Guidance
Intuit's guidance for fiscal 2004 is fourth quarter guidance added to actual results for the first three quarters:

Revenue of $1.85 billion to $1.87 billion, or year-over-year growth of approximately 12 percent to 13 percent.
Pro forma operating income of $465 million to $475 million, or growth of approximately 16 percent to 19 percent over fiscal 2003. On a GAAP basis, operating income is expected to be $428 million to $438 million, or growth of approximately 25 percent to 27 percent over fiscal 2003.
Pro forma diluted earnings per share of $1.63 to $1.67, or growth of approximately 17 percent to 20 percent over fiscal 2003. On a GAAP basis, diluted EPS is expected to be $1.67 to $1.71, up approximately 2 percent to 5 percent from fiscal 2003.

Fiscal 2005 Guidance
Intuit expects annual revenue growth in the high single digits in fiscal 2005, which begins Aug. 1, 2004. The company expects annual pro forma diluted EPS growth of 15 percent to 20 percent.

Conference Call Scripts, Webcast and Conference Call Information
The script that accompanies Intuit's conference call and a live audio webcast of the call is available at http://www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. (PST). The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. This press release, including the tables, is available at that site and any other supplemental financial and statistical information required to be posted, including pro forma reconciliation, will be posted to that site.

The conference call number is (800) 615-5585 and (706) 679-0331 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling (800) 642-1687, and (706) 645-9291 from international locations. The reservation number is 7124880.

Intuit, the Intuit logo, Quicken, QuickBooks, and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

About pro forma, or non-GAAP, financial measures Intuit's management believes that the pro forma financial measures it uses provide meaningful supplemental information regarding Intuit's core operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. Intuit's management refers to these pro forma financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year.

Intuit computes its pro forma, or non-GAAP, financial measures using the same consistent method from quarter to quarter and year to year. Pro forma operating income excludes acquisition-related charges, such as amortization of intangibles and impairment charges, as well as amortization of purchased software and charges for purchased research and development. Pro forma net income and diluted earnings per share exclude discontinued operations, gains and losses on marketable securities and other investments, as well as the tax effects of these transactions. These pro forma financial measures are not prepared in accordance with generally accepted accounting principles and likely are different from non-GAAP or pro forma financial measures used by other companies. The accompanying tables and fact sheet have more details on Intuit's historical performance and financial projections, the GAAP financial measures that are most directly comparable to Intuit's pro forma financial measures, and the reconciliation of pro forma financial measures to GAAP.

Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of our expected financial results. All of the statements under the headings "Fourth-Quarter Fiscal 2004 Guidance," "Fiscal 2004 Guidance," and "Fiscal 2005 Guidance" are forward-looking statements. A number of risks and uncertainties may cause our actual results to differ materially from our expressed expectations. Some of the important factors that could cause our results to differ include the following:

We face intense competitive pressures in all of our businesses, which can have unpredictable negative effects on our revenue, profitability and market position.
Because some of our principal product offerings are in maturing markets, if we do not successfully add value to existing products and services we will be unable to drive substantial and sustained revenue or margin growth for our company.
Expanding our product and service offerings creates risk due to the increasing complexity and decreasing predictability of our revenue streams.
We are continuing to implement new information systems to enable us to execute on our growth strategy, and problems with the design or implementation of these new systems could interfere with our business and operations.
Integrating acquired businesses presents several challenges and we may not fully realize the intended benefits of our acquisitions if we do not successfully integrate them with our operations.
Given the nature of the products and services that we offer, our revenue and earnings are highly seasonal and this can cause significant quarterly fluctuations in our financial results.
If we fail to maintain reliable and responsive service levels for our offerings, we could lose revenue and customers.

More details about these and other risks are included in our Forms 10-Q, 2003 Form 10-K, and other SEC filings and at http://www.intuit.com/about_intuit/investors. We do not undertake any duty to update the information in this press release except as otherwise required by law.

(Financial Statements and Fact Sheet follow)


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