COMPANY PROFILE

Whatever prosperity means to you, we’re committed to working on your behalf and making it happen. Every day we innovate with our flagship products - TurboTax, QuickBooks, and Mint. So no matter your financial need, we have a solution that can help. Whether you’re a consumer, self-employed, or a small business owner, we’re in your corner to help make your dreams of prosperity come true.

Recent Earnings

For the fourth quarter, Intuit:

• Grew revenue to $994 million, up 15 percent year-over-year.

• Grew Online Ecosystem revenue by 35 percent.

For the full year, Intuit:

• Grew revenue to nearly $6.8 billion, up 13 percent year-over-year.

• Grew combined QBO and TTO platform revenue over 23 percent, totaling approximately $3.9 billion.1

• Grew Online Ecosystem revenue by 38 percent.

• Finished the year with over 4.5 million QuickBooks Online subscribers, growth of 33 percent.

• Grew Consumer Group revenue 11 percent.

• Increased GAAP operating income to $1.9 billion, up from $1.6 billion in the prior year, growth of 19 percent.

• Increased non-GAAP operating income to $2.3 billion, up 12 percent.

• Increased GAAP and non-GAAP earnings per share by 16 percent and 17 percent respectively.

Capital Allocation Summary

• Repurchased $561 million of stock during fiscal year 2019, with $2.7 billion remaining on the company's authorization.

• Received Board approval for a quarterly dividend of $0.53 per share, payable October 18, 2019. This represents a 13 percent increase versus last year.

Forward-looking Guidance

Intuit announced guidance for the first quarter of fiscal year 2020, which ends Oct. 31. The company expects:

• Revenue of $1.105 billion to $1.125 billion, growth of 9 to 11 percent.

• GAAP operating loss of $40 million to $50 million.

• Non-GAAP operating income of $65 million to $75 million.

• GAAP loss per share of $0.02 to $0.04.

• Non-GAAP diluted earnings per share of $0.23 to $0.25.

Intuit also announced guidance for full fiscal year 2020. The company expects:

• Revenue of $7.440 billion to $7.540 billion, growth of 10 to 11 percent.

• GAAP operating income of $2.065 billion to $2.115 billion, growth of 11 to 14 percent.

• Non-GAAP operating income of $2.515 billion to $2.565 billion, growth of 10 to 12 percent.

• GAAP diluted earnings per share of $6.35 to $6.45, growth of 8 to 10 percent.

• Non-GAAP diluted earnings per share of $7.50 to $7.60, growth of 11 to 13 percent.

The company expects the following segment revenue results for fiscal year 2020:

• Small Business and Self-Employed Group: growth of 12 to 14 percent.

• Consumer Group: growth of 9 to 10 percent.

• Strategic Partner Group: growth of 1 to 2 percent.

Opinion

From a factor scoring perspective versus the other 199 brands in the brands index, here’s where Intuit scores well as of 9/17/19:

• 95% high quality, low leverage rating

• 95% high 3YR average ROE

• 98% low debt to enterprise value

• 82% high absolute operating margins

• 89% high projected 3YR dividend growth

• 92% high ROIC

• 93% high ROIC over WACC (weighted average cost of capital)

• 89% sales surprises last quarter

Intuit is one of the most innovative companies in America. I absolutely love investing in brands that enable small business success. Intuit is a low profile, category killer that’s been a monster stock since the IPO in 1993. The stock is pretty expensive as most software companies tend to be, but they keep innovating and adding more reason for small businesses, CPA’s, and individuals to stay loyal. It’s a recurring revenue machine that has high switching costs which allows the economic moat to stay strong. INTU is a buy on any dips, they have proven they will out-innovate the competition and continue to add new end-market opportunities.