Summary
Intuit reported first quarter fiscal 2024 results on November 28, 2023. Total revenue was $2.98 billion for the quarter ended October 31, 2023. Operating income reached $307 million, up 304% from the prior-year quarter. Net income was $241 million, up 503%. Diluted earnings per share came in at $0.85, up 507%. Operating margin was 10.3%. On a non-GAAP basis, operating income was $960 million, up 45%, and diluted earnings per share was $2.47, up 49%. The company said the quarter reflected momentum in its global financial technology platform.
The Small Business & Self-Employed segment led the quarter. Online Ecosystem revenue grew, driven by QuickBooks Online Accounting, payroll, Mailchimp, and payments. QuickBooks Online Accounting revenue increased on customer growth, higher effective prices, and a mix shift to higher-priced offerings. Online Services revenue rose on payroll, Mailchimp, and payments. Credit Karma revenue declined because of headwinds in personal loans, auto insurance, home loans, and auto loans. Credit cards and Credit Karma Money partially offset that decline. Consumer Group had a strong finish to the tax extension season, with stronger than expected tax return volume from states with and without extended deadlines. ProTax Group revenue increased. The company noted that Consumer and ProTax results are seasonally light in the first quarter and are not indicative of full-year trends.
Intuit's Consumer and ProTax businesses are highly seasonal. Revenue from income tax preparation products and services is typically concentrated from November through April. The company expects this seasonality to continue to have a significant impact on quarterly financial results. Because of this pattern, first quarter results for Consumer and ProTax are not indicative of full-year trends. The company will not have substantially complete results for the 2023 tax season until the third quarter of fiscal 2024.
Intuit reiterated full fiscal year 2024 guidance. Revenue growth is expected to be approximately 11 to 12 percent. Non-GAAP operating income is expected to be $6.155 billion to $6.260 billion, growth of approximately 12 to 14 percent. Non-GAAP diluted earnings per share is expected to be $16.17 to $16.47, growth of approximately 12 to 14 percent. For the full fiscal year, segment guidance calls for Small Business & Self-Employed growth of 16 to 17 percent, Consumer growth of 7 to 8 percent, ProTax growth of 3 to 4 percent, and Credit Karma decline of 3 percent to growth of 3 percent. For the second quarter of fiscal 2024, Intuit expects revenue to grow approximately 11 to 12 percent and non-GAAP diluted earnings per share of $2.25 to $2.31.
Operating cash flow was negative $97 million, down 129.6% from the prior-year quarter. Capital expenditures were $84 million, up 9.1%. Deferred revenue was $763 million, up 9.3%. The company attributed the operating cash flow decline to changes in operating assets and liabilities, including a $710 million tax payment related to deferred fiscal 2023 taxes. Net cash provided by investing activities was $210 million. Net cash provided by financing activities was $849 million. Intuit also faces risks from macroeconomic uncertainty, geopolitical conditions, competition, AI development and deployment, cybersecurity, privacy, fraud, third-party relationships, and talent retention. Credit Karma remains exposed to lending partner behavior and economic uncertainty. The company ended the quarter with $2.3 billion in cash and investments and $5.9 billion in debt. It issued $4 billion in senior notes at a weighted average coupon of 5.29 percent and repaid $4.2 billion on its term loan. It repurchased $603 million of shares and declared a quarterly dividend of $0.90 per share, a 15 percent increase.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $2.98B | $2.71B | +9.8% | $2.60B | +14.7% |
| Research & development | $680.0M | $680.0M | ±0.0% | $625.0M | +8.8% |
| Sales & marketing | $769.0M | $840.0M | -8.5% | $795.0M | -3.3% |
| General & administrative | $342.0M | $341.0M | +0.3% | $304.0M | +12.5% |
| Total operating expenses | $2.67B | $2.69B | -0.9% | $2.52B | +6.0% |
| Operating income (loss) | $307.0M | $17.0M | +1705.9% | $76.0M | +303.9% |
| Operating margin | 10.3% | 0.6% | +9.7 pp | 2.9% | +7.4 pp |
| Net income (loss) | $241.0M | $89.0M | +170.8% | $40.0M | +502.5% |
| Net margin | 8.1% | 3.3% | +4.8 pp | 1.5% | +6.5 pp |
| Diluted EPS | $0.85 | $0.31 | +$0.54 | $0.14 | +$0.71 |
Risks
MD&A states AI is transforming financial technology and that disruptive start-ups, emerging ecosystems, and mega-platforms are harnessing new technology, while risk factors say competitors may use AI to reduce demand for Intuit products or services. Intuit is investing heavily in AI and generative AI, but competitive pressure could diminish revenue and profitability.
Risk factors state the IRS announced in May 2023 a pilot project for the 2024 filing season to assess a direct online tax filing system, and the IRS Free File Program agreement is scheduled to expire in October 2025. Government-funded direct filing could make the federal government a publicly funded competitor and materially reduce Intuit's tax revenue.
MD&A says Intuit operates in industries experiencing an increasing amount of fraudulent activities by malicious third parties, and risk factors note fraud may affect tax, payroll, payments, lending, marketing automation, and personal financial management businesses. Substantial losses or loss of government confidence could harm revenue and earnings.
Credit Karma segment revenue decreased 5% in Q1 FY24 compared with Q1 FY23, primarily due to decreases in personal loan and auto insurance verticals, and MD&A says economic uncertainty continues to influence the lending behaviors of partners. Adverse macroeconomic conditions could further reduce Credit Karma engagement and revenue.
Risk factors say experienced individuals in software as a service, financial technology, mobile technologies, data science, AI, and data security are in high demand, especially in California and India where many Intuit employees are located. Hybrid work model challenges and equity award effectiveness may make it harder to attract and retain key employees.
At October 31, 2023, Intuit had $5.9 billion of indebtedness outstanding, and interest expense increased to $65 million in the first three months of fiscal 2024 from $49 million in the prior-year period, primarily due to higher interest rates. The September 2023 issuance of $4 billion in senior unsecured notes increases debt service obligations.
Operating cash flow was negative $97 million in Q1 FY24, down 129.6% from $328 million in Q1 FY23, partly because Intuit made $710 million of deferred fiscal 2023 tax payments in the quarter. Tax revenue is heavily concentrated from November through April, causing significant quarterly fluctuations.
At October 31, 2023, Intuit had $13.8 billion in goodwill and $6.3 billion in net acquired intangible assets, and risk factors say these may be subject to impairment charges. Total amortization and impairment costs were $646 million in fiscal 2023, and future charges could significantly affect net income.
Risk factors say tax products have rigid development timetables and must incorporate unpredictable and potentially late tax law and form changes, so errors or launch delays could cause customer loss, refunds, and reputational harm. Incorporating AI and blockchain into offerings may also have unintended consequences.
Intuit depends on third-party partners, financial institutions, cloud providers, and app stores, and some relationships are sole source or limited source. If these partners fail, consolidate, change pricing, or stop providing services, Intuit may be unable to deliver critical offerings and its financial results may suffer.
SaaS KPIs
All quarters →Total Customers
Online Ecosystem revenue
Online Services revenue
Non-GAAP operating income
QuickBooks Online Accounting revenue
Credit Karma revenue
Small Business & Self-Employed Revenue
Summary, forecast, risks and KPIs are extracted from INTUIT INC.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.