Intuit: Revenue Forecasts and EPS Beat

intuit (INTU -6.83%)the software company known for QuickBooks and TurboTax, released its Q4 and fiscal 2024 earnings on August 22. The company reported solid revenue growth and beat non-GAAP EPS expectations, although GAAP operating income declined due to a restructuring charge. For Q4, Intuit beat its revenue guidance, reporting $3.184 billion, compared to the expected range of $3.063 billion to $3.099 billion. Overall, it was a strong quarter for the company as it met or exceeded most targets.

Understanding Intuition

Intuit is a leading software company that provides financial and business management solutions through products such as QuickBooks and TurboTax. The company has increasingly focused on integrating artificial intelligence (AI), resulting in innovative customer experiences.

Recently, Intuit has placed a strong focus on AI and technology innovation, Small Business and Self Employed, Consumer (TurboTax) and Credit Karma as key growth drivers.

Quarterly highlights

Intuit reported robust growth in the fourth quarter of fiscal 2024. The Small Business and Self Employed segment, renamed Global Business Solutions Group, posted a 20% increase in revenue to $2.6 billion — and an increase of 19% for the year. QuickBooks Online revenue grew 17% for the quarter and 19% for the year, driven by customer growth and higher pricing. Online services, including payroll and Mailchimp, grew 19% quarter-over-quarter and 21% year-over-year.

TurboTax’s Consumer segment revenue saw mixed results. While full-year revenue rose 7% to $4.4 billion, TurboTax Live revenue grew a strong 17%. However, TurboTax’s total US units decreased 1%, primarily due to competition and a strategy that focuses on higher revenue per customer. Credit Karma reported modest growth, with Q4 revenue up 14% to $485 million and annual revenue up 5% to $1.7 billion.

Impressive strides have been made in the field of artificial intelligence. The AI-powered expert platform, including Intuit Assist, was used by more than 24 million customers during the tax season. Credit Karma has also improved its offerings with AI features that have helped nearly half of its 40 million active users.

One-time restructuring charges led to a GAAP operating loss of $151 million in Q4. Despite this, non-GAAP diluted EPS of $16.94 beat expectations of $16.79 to $16.84. Intuit repurchased $2 billion in shares during fiscal 2024 and announced a dividend of $1.04 per share, payable on October 18.

Looking ahead

For fiscal 2025, Intuit projects revenue between $18.160 billion and $18.347 billion, reflecting growth of 12-13%. GAAP operating income is expected to range from $4.649 billion to $4.724 billion, with non-GAAP operating income between $7.241 billion and $7.316 billion. The company anticipates significant revenue growth across all segments, particularly 16-17% for the Small Business and Independent Group and 7-8% for the Consumer Group.

Investors should monitor Intuit’s ongoing investments in AI as they are critical to long-term growth. Observing changes in the competitive landscape, particularly for TurboTax and Credit Karma, will also be crucial. The company plans to accelerate its mid-market initiatives and expand its international footprint, so tracking these developments could provide additional insight into its future performance.