Summary
Intuit closed the second quarter of fiscal 2024, ended January 31, 2024, with total revenue of $3.39 billion, up 11 percent from the prior-year quarter. GAAP operating income rose to $369 million from $270 million, a 37 percent increase. Net income more than doubled to $353 million from $168 million, and diluted earnings per share came in at $1.25 versus $0.60 a year earlier. The first six months tell a similar story. Revenue reached $6.36 billion, operating income of $676 million was up 95 percent, net income of $594 million was up 186 percent, and diluted earnings per share of $2.10 compared with $0.73. The bottom line leaned heavily on a very low tax charge, which the company attributed to excess tax benefits on share-based compensation of $56 million in the quarter.
Small Business and Self-Employed did the heavy lifting. Segment revenue rose 18 percent, and Online Ecosystem revenue climbed 21 percent. Online Services revenue grew 24 percent on payroll, payments, and Mailchimp, while QuickBooks Online Accounting revenue advanced 19 percent on customer growth, higher effective prices, and a mix shift toward higher-priced offerings. Desktop Ecosystem revenue rose 10 percent. Segment operating income was up 28 percent. The other segments were mixed. Consumer revenue fell 5 percent because the IRS opened the 2023 filing season later, on January 29 versus January 23 a year earlier, and Consumer segment operating income declined. Credit Karma revenue was flat, as growth in Credit Karma Money, credit cards, and auto loans offset declines in home loans, personal loans, and auto insurance, while higher marketing spending pulled segment operating income lower. ProTax revenue rose 8 percent.
Profitability improved at the consolidated level. The operating margin for the quarter was 10.9 percent. Expense growth trailed revenue growth: total operating expenses rose 8 percent while revenue rose 11 percent, with the increase coming from marketing, staffing, and share-based compensation. On a non-GAAP basis, operating income of $1,000 million was up 17 percent and diluted earnings per share of $2.63 was up 20 percent. Cash flow was uneven. The quarter generated operating cash flow of $613 million, up 116 percent from $284 million, but the first six months produced operating cash flow of $516 million, down 15.7 percent from $612 million. The year-to-date decline reflects the $710 million of deferred fiscal 2023 tax payments made in the first quarter under the research and development capitalization rules. Capital expenditures were $63 million in the quarter and $147 million year to date. Deferred revenue, current portion only, stood at $887 million at January 31, 2024, up 4.1 percent.
Management reiterated full fiscal year 2024 guidance rather than raising it. For the full fiscal year, the company expects revenue growth of approximately 11 to 12 percent, with Small Business and Self-Employed revenue growth of 16 to 17 percent, Consumer growth of 7 to 8 percent, ProTax growth of 3 to 4 percent, and Credit Karma anywhere from a 3 percent decline to 3 percent growth. On a GAAP basis it guides to operating income growth of approximately 15 to 18 percent and diluted earnings per share growth of approximately 11 to 15 percent, while non-GAAP diluted earnings per share growth is guided to approximately 12 to 14 percent. For the third quarter of fiscal 2024, which ends April 30, the company guided revenue growth of approximately 10 to 11 percent.
Capital allocation stayed aggressive. Intuit held approximately $1.5 billion in cash and investments and $6.0 billion in debt as of January 31, 2024. It repurchased $536 million of shares, leaving $2.7 billion on its authorization, and the board approved a quarterly dividend of $0.90 per share, a 15 percent increase versus the same period last year. The risk list is familiar but real. Seasonality concentrates tax revenue between November and April, so the first-half Consumer and ProTax results say little about the full year, and the company noted it will not have substantially complete 2023 tax season results until the third quarter of fiscal 2024. Management also flagged competition from AI-driven platforms, reliance on third-party relationships, fraudulent activity by malicious third parties, cybersecurity and privacy exposure tied to customer data, and the need to attract and retain skilled employees. Credit Karma remains exposed to partner lending behavior under economic uncertainty.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $3.39B | $2.98B | +13.7% | $3.04B | +11.3% |
| Research & development | $678.0M | $680.0M | -0.3% | $630.0M | +7.6% |
| Sales & marketing | $1.02B | $769.0M | +32.6% | $924.0M | +10.4% |
| General & administrative | $344.0M | $342.0M | +0.6% | $323.0M | +6.5% |
| Total operating expenses | $3.02B | $2.67B | +13.0% | $2.77B | +8.9% |
| Operating income (loss) | $369.0M | $307.0M | +20.2% | $270.0M | +36.7% |
| Operating margin | 10.9% | 10.3% | +0.6 pp | 8.9% | +2.0 pp |
| Net income (loss) | $353.0M | $241.0M | +46.5% | $168.0M | +110.1% |
| Net margin | 10.4% | 8.1% | +2.3 pp | 5.5% | +4.9 pp |
| Diluted EPS | $1.25 | $0.85 | +$0.40 | $0.60 | +$0.65 |
Risks
Intuit faces intense competition, and competitors may use AI to reduce demand or beat Intuit to market. MD&A says AI is transforming financial technology and creating a highly competitive environment, while future growth depends on adapting to AI and emerging technologies.
The IRS Free File Program and the 2024 IRS direct file pilot could make the federal government a publicly funded direct competitor in U.S. tax preparation. The Free File agreement is scheduled to expire in October 2025.
Fraudulent activities by malicious third parties are increasing and becoming more sophisticated, with risk heightened by the hybrid work model. Losses or loss of government confidence could lead tax authorities to refuse electronic filing, harming revenue and earnings.
Credit Karma segment revenue was flat in Q2 FY2024 and decreased 3% in the first six months of FY2024, with declines in personal loan, auto insurance, home loan, and auto loan verticals. MD&A says economic uncertainty continues to influence the lending behaviors of partners.
Competition for skilled employees in software as a service, fintech, data science, AI, and data security is intense, especially in California and India. MD&A cites a highly competitive talent environment as a key challenge.
The legal and regulatory landscape for AI, privacy, and data protection is rapidly evolving and uncertain, including intellectual property validity and cross-border data transfer. Compliance may impose significant operational costs and limit AI deployment.
As of January 31, 2024, Intuit had $6.0 billion of indebtedness outstanding, and interest expense was $122 million for the first six months of FY2024 compared with $114 million in the prior-year period, primarily due to higher interest rates.
At January 31, 2024, Intuit had $13.8 billion in goodwill and $6.1 billion in net acquired intangible assets, both subject to future impairment charges that may cause significant fluctuation in net income.
Tax products have rigid development timetables and must incorporate late tax law changes. Errors or launch delays could cause loss of customers, revenue, and accuracy guarantee reimbursements.
Consumer segment revenue increased 2% in the first six months of FY2024, partly offset by a later opening of the 2023 tax year season, with the IRS beginning to accept returns on January 29, 2024 versus January 23, 2023. Seasonality and tax deadline changes can significantly affect quarterly results.
SaaS KPIs
All quarters →Total Customers
Summary, forecast, risks and KPIs are extracted from INTUIT INC.'s SEC filings for Q2 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 2, 2026.