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Intuit Announces Record Third-Quarter Revenue; Raises Full-Year Revenue and Earnings Guidance
Third-Quarter Revenue Totals $1.15 Billion, up 21 Percent Over Prior Year
MOUNTAIN VIEW, Calif. - May 17, 2007 - Intuit Inc. (Nasdaq: INTU) today announced its third-quarter 2007 revenue increased 21 percent 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 percent.

"We had great results from all of our businesses this quarter," said Steve Bennett, Intuit's president and chief executive officer. "Our two biggest growth engines, Tax and Small Business, continue to perform very well and our newest growth engine, Financial Institutions, is also making a significant contribution. We're on track for another year of double-digit revenue and earnings growth."

Third-Quarter 2007 Financial Highlights
Intuit posted GAAP (Generally Accepted Accounting Principles) net income of $367 million in the quarter compared to $299 million in the third quarter of 2006. This represents diluted net income per share of $1.04 compared to diluted net income per share of $0.84 in the year-ago quarter. Intuit posted non-GAAP net income of $399 million, or $1.13 per share versus $318 million, or $0.89 per share in the third quarter of 2006.

Third-Quarter 2007 Business Segment Results
  • Consumer Tax revenue was $567 million, up 14 percent over the year-ago quarter. Consumer Tax revenue is up 15 percent year-to-date.
  • Professional Tax revenue was $138 million, up 32 percent over the year-ago quarter. Professional Tax revenue is up 6 percent year-to-date.
  • QuickBooks revenue was $155 million, up 22 percent over the year-ago quarter. QuickBooks revenue is up 10 percent year-to-date.
  • Payroll and Payments revenue was $125 million, up 7 percent over the year-ago quarter. Excluding the impact of the outsourced payroll customers transitioning to ADP, revenue growth would have been 13 percent in the third quarter. Payroll and Payments revenue is up 14 percent year-to-date.
  • Financial Institutions revenue was $65 million and includes the results of Digital Insight, which was acquired on Feb. 6.
  • Other Businesses revenue of $104 million was up 6 percent over the year-ago quarter.
Forward-looking Guidance
Intuit updated its revenue, GAAP diluted earnings per share, and non-GAAP diluted earnings per share guidance for fiscal 2007, which ends on July 31. The company now expects:

  • Revenue – Former guidance: $2.625 billion to $2.675 billion, representing annual growth of 12 percent to 14 percent. New guidance: $2.685 billion to $2.7 billion, representing annual growth of approximately 15 percent.
  • GAAP diluted earnings per share – Former guidance: $1.10 to $1.14. New guidance: $1.15 to $1.17.
  • Non-GAAP diluted earnings per share – Former guidance: $1.33 to $1.37. New guidance: $1.38 to $1.40. The new guidance represents annual EPS growth of 14 percent to 16 percent.
The company's guidance for the fourth quarter of 2007 is unchanged. Additional details are available on Intuit's Web site at http://web.intuit.com/about_intuit/investors/earnings/2007/.

Company Announces New Stock Repurchase Program
Intuit also announced today a new stock repurchase program for up to $800 million over the next three years. Intuit used all remaining funds in its last $500 million repurchase program, authorized in May 2006, during its third-quarter 2007, which ended on April 30. Since authorizing its first stock repurchase program in May 2001, Intuit has spent approximately $3.7 billion to repurchase approximately 159 million shares of its stock.

Webcast and Conference Call Information
A live audio webcast of Intuit's third-quarter 2007 conference call is available at http://web.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. PDT. The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has also posted this press release, including the attached tables and non-GAAP to GAAP reconciliations on its Web site and will post the conference call script shortly after the conference call concludes. These documents may be found at http://web.intuit.com/about_intuit/investors/earnings/2007/.

The conference call number is 866-802-4328 in the United States or 703-639-1322 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The access code for this call is 1077233.
 
 
Intuit, the Intuit logo, and QuickBooks, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

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 B and Table E which follow it. A copy of the press release filed by Intuit on May 17, 2007 can be found on the investor relations page of Intuit's Web site.

Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of Intuit's expected financial results; its prospects for the business in fiscal 2007 and beyond; expectations of double-digit revenue and earnings growth; and 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 factors include, without limitation, the following: product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities regulating the filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives, and current and future products and services may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; any failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability; any significant product quality problems or delays in our products could harm our revenue, earnings and reputation; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; any failure to properly use and protect personal customer information could harm our revenue, earnings and reputation; our acquisition activities may be disruptive to Intuit and may not result in expected benefits; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operations; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; we have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares to grow; and litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2006 and in our other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of May 17, 2007, and we do not undertake any duty to update any forward-looking statement or other information in these remarks.

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