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Intuit (INTU - Free Report) reported fourth-quarter fiscal 2020 non-GAAP earnings of $1.81 per share, which beat the Zacks Consensus Estimate by 49.59%. The company had reported loss of 9 cents per share in the year-ago quarter.
Moreover, revenues of $1.82 billion outpaced the consensus mark by 15.6%. The figure surged 83% year over year.
Intuit reported impressive quarterly results compared with its nearest peers including Automatic Data Processing (ADP - Free Report) and Paychex (PAYX - Free Report) .
Markedly, ADP’s fourth-quarter earnings remained flat year over year as total revenues declined 3%. Paychex’s earnings and revenues declined 3.2% and 7% on a year-over-year basis, respectively.
Moreover, Intuit witnessed expansion of Do-It-Yourself (“DIY”) category in the reported quarter. The company estimates that excluding stimulus filings of approximately 7 to 8 million, the DIY category share grew over 2 points this tax-filing season.
Notably, Intuit’s closest tax preparation service-provider H&R Block (HRB - Free Report) also witnessed significant growth in DIY filings. The company is set to report first-quarter fiscal 2021 results on Sep 1.
Markedly Intuit has outperformed ADP, Paychex and H&R Block year to date.
Year-to-Date Performance
Quarter in Detail
Small Business and Self-Employed Group revenues increased 16% year over year to $1.05 billion. This rise was primarily driven by solid growth in customers for QuickBooks Online. Excluding nonrecurring Paycheck Protection Program (“PPP”) revenues, it grew 13%.
Moreover, revenues from Consumer Group were $710 million compared with $74 million reported in the year-ago quarter.
Strategic Partner Group revenues of $57 million surged 280% year over year.
Both TurboTax Online and total TurboTax units increased 11% year over year. Excluding stimulus-only filings, estimated TurboTax share of total tax returns grew more than 1.5 points and TurboTax share ofthe DIY category was unchanged.
Moreover, TurboTax Live customers grew approximately 70%.
Total Online Ecosystem revenues rose 28.8% year over year to $591 million. Excluding non-recurring PPP revenues, it grew 25%.
QuickBooks Online Accounting revenues were up 34.2% year over year to $365 million. Online services revenues, including payroll, payments, time tracking and capital, grew 21% year over year to $226 million. Online Services revenues excluding PPP revenues grew 12% year over year.
Sturdy momentum in the company’s lending product QuickBooks Capital was a positive as well. At the end of the quarter, net loans receivable balance was $40 million.
As of Jul 31, 2020, Intuit and its bank partners helped make available more than $1.2 billion of approved small-business loans to customers from the PPP through QuickBooks Capital. This resulted in approximately $30 million in non-recurring revenues in the quarter under review, with nearly $16 million included in online services revenues and $14 million included in desktop services revenues.
At the end of the fourth quarter, Intuit held $98 million net loans receivable for PPP which the company intends to sell.
Total Desktop-ecosystem revenues climbed 2.2% year over year to $458 million. Within the Desktop ecosystem, revenues from QuickBooks Desktop Accounting inched up 5.3% to $178 million. Desktop Services and Supplies revenues increased 1.1% year over year to $280 million.
Intuit’s non-GAAP operating income was $616 million against operating loss of $47 million in the year-ago quarter.
Balance Sheet and Cash Flow
As of Jul 31, 2020, Intuit’s cash and cash equivalents were $6.44 billion compared with $3.37 billion as of Apr 30, 2020.
In June, Intuit issued $2 billion in senior notes to fund a portion of the Credit Karma acquisition and for other general corporate purposes.
The company did not repurchase any stock during the reported quarter. Intuit has approximately $2.4 billion remaining on its authorization.
Fiscal 2021 Outlook
Intuit offered three scenarios related to Small Business and Self-Employed Group. In the first scenario, where the pace of economic recovery continues at current pace, revenues are expected to grow high single-digits.
In the second scenario that assumes a more gradual opening of the economy and a W-shaped recovery, Small Business and Self-Employed Group revenues are expected to grow mid single-digits.
The third scenario assumes a choppy economic recovery (a double W-shaped recovery). Small Business and Self-Employed Group revenues are expected to be flat and low single-digits.
Intuit expects slower Small Business and Self-Employed revenue growth in the first half as compared to the second half of fiscal 2021.
Over the long term, Intuit expects revenue growth of 8-12% for the Consumer Group and 10-15% for the Small Business and Self-Employed Group. The company continues to expect Online Ecosystem revenue growth of more than 30%.
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Intuit (INTU) Q4 Earnings & Revenues Beat, Increase Y/Y
Intuit (INTU - Free Report) reported fourth-quarter fiscal 2020 non-GAAP earnings of $1.81 per share, which beat the Zacks Consensus Estimate by 49.59%. The company had reported loss of 9 cents per share in the year-ago quarter.
Moreover, revenues of $1.82 billion outpaced the consensus mark by 15.6%. The figure surged 83% year over year.
Intuit reported impressive quarterly results compared with its nearest peers including Automatic Data Processing (ADP - Free Report) and Paychex (PAYX - Free Report) .
Markedly, ADP’s fourth-quarter earnings remained flat year over year as total revenues declined 3%. Paychex’s earnings and revenues declined 3.2% and 7% on a year-over-year basis, respectively.
Intuit Inc. Price, Consensus and EPS Surprise
Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote
Moreover, Intuit witnessed expansion of Do-It-Yourself (“DIY”) category in the reported quarter. The company estimates that excluding stimulus filings of approximately 7 to 8 million, the DIY category share grew over 2 points this tax-filing season.
Further, this Zacks Rank #2 (Buy) company grew its share of total returns and posted 11% customer growth, the strongest in four years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Intuit’s closest tax preparation service-provider H&R Block (HRB - Free Report) also witnessed significant growth in DIY filings. The company is set to report first-quarter fiscal 2021 results on Sep 1.
Markedly Intuit has outperformed ADP, Paychex and H&R Block year to date.
Year-to-Date Performance
Quarter in Detail
Small Business and Self-Employed Group revenues increased 16% year over year to $1.05 billion. This rise was primarily driven by solid growth in customers for QuickBooks Online. Excluding nonrecurring Paycheck Protection Program (“PPP”) revenues, it grew 13%.
Moreover, revenues from Consumer Group were $710 million compared with $74 million reported in the year-ago quarter.
Strategic Partner Group revenues of $57 million surged 280% year over year.
Both TurboTax Online and total TurboTax units increased 11% year over year. Excluding stimulus-only filings, estimated TurboTax share of total tax returns grew more than 1.5 points and TurboTax share ofthe DIY category was unchanged.
Moreover, TurboTax Live customers grew approximately 70%.
Total Online Ecosystem revenues rose 28.8% year over year to $591 million. Excluding non-recurring PPP revenues, it grew 25%.
QuickBooks Online Accounting revenues were up 34.2% year over year to $365 million. Online services revenues, including payroll, payments, time tracking and capital, grew 21% year over year to $226 million. Online Services revenues excluding PPP revenues grew 12% year over year.
Sturdy momentum in the company’s lending product QuickBooks Capital was a positive as well. At the end of the quarter, net loans receivable balance was $40 million.
As of Jul 31, 2020, Intuit and its bank partners helped make available more than $1.2 billion of approved small-business loans to customers from the PPP through QuickBooks Capital. This resulted in approximately $30 million in non-recurring revenues in the quarter under review, with nearly $16 million included in online services revenues and $14 million included in desktop services revenues.
At the end of the fourth quarter, Intuit held $98 million net loans receivable for PPP which the company intends to sell.
Total Desktop-ecosystem revenues climbed 2.2% year over year to $458 million. Within the Desktop ecosystem, revenues from QuickBooks Desktop Accounting inched up 5.3% to $178 million. Desktop Services and Supplies revenues increased 1.1% year over year to $280 million.
Intuit’s non-GAAP operating income was $616 million against operating loss of $47 million in the year-ago quarter.
Balance Sheet and Cash Flow
As of Jul 31, 2020, Intuit’s cash and cash equivalents were $6.44 billion compared with $3.37 billion as of Apr 30, 2020.
In June, Intuit issued $2 billion in senior notes to fund a portion of the Credit Karma acquisition and for other general corporate purposes.
The company did not repurchase any stock during the reported quarter. Intuit has approximately $2.4 billion remaining on its authorization.
Fiscal 2021 Outlook
Intuit offered three scenarios related to Small Business and Self-Employed Group. In the first scenario, where the pace of economic recovery continues at current pace, revenues are expected to grow high single-digits.
In the second scenario that assumes a more gradual opening of the economy and a W-shaped recovery, Small Business and Self-Employed Group revenues are expected to grow mid single-digits.
The third scenario assumes a choppy economic recovery (a double W-shaped recovery). Small Business and Self-Employed Group revenues are expected to be flat and low single-digits.
Intuit expects slower Small Business and Self-Employed revenue growth in the first half as compared to the second half of fiscal 2021.
Over the long term, Intuit expects revenue growth of 8-12% for the Consumer Group and 10-15% for the Small Business and Self-Employed Group. The company continues to expect Online Ecosystem revenue growth of more than 30%.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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