Intuit Inc. Faces Mixed Market Reactions After Strong Financial Results

Intuit Inc. (Nasdaq: INTU), the powerhouse behind TurboTax, Credit Karma, QuickBooks, and Mailchimp, reported robust financial results for the fourth quarter and full fiscal year 2024. However, despite these strong numbers, the company’s stock experienced a decline of -0.78% to $665.29 during Thursday’s trading session. This article delves into Intuit’s recent financial performance, contrasts it with the broader market, and explores the implications for investors.

Table of Contents

• Financial Performance: A Year of Solid Growth

• Fourth Quarter Highlights

• Looking Ahead: Fiscal Year 2025 Guidance

• Stock Performance: Intuit vs. S&P 500

• Conclusion

Financial Performance: A Year of Solid Growth

Full Fiscal Year 2024 Highlights

For the fiscal year ending July 31, 2024, Intuit achieved several notable milestones:

• Revenue Growth: Intuit’s total revenue reached $16.3 billion, marking a 13% increase compared to the previous year.

• Platform Revenue: Combined platform revenue, which encompasses the Small Business and Self-Employed Group Online Ecosystem, TurboTax Online, and Credit Karma, grew by 14% to $12.5 billion.

• Segment Performance:

  • Small Business and Self-Employed Group revenue soared 19%.

  • Online Ecosystem revenue surged 20%.

  • Consumer Group revenue increased by 7%, totaling $4.4 billion.

  • Credit Karma saw a 5% rise in revenue to $1.7 billion.

• Profitability:

  • GAAP Operating Income grew 16% to $3.6 billion, despite a $223 million restructuring charge.

  • Non-GAAP Operating Income also rose 16% to $6.4 billion.

  • GAAP Earnings Per Share increased 24% to $10.43.

  • Non-GAAP Earnings Per Share grew 18% to $16.94.

Fourth Quarter Highlights

The fourth quarter mirrored the annual growth trend:

• Total Revenue jumped 17% to $3.2 billion.

• Small Business and Self-Employed Group Revenue climbed 20% to $2.6 billion.

• Online Ecosystem Revenue increased 18%.

• Credit Karma Revenue grew 14% to $485 million.

• Consumer Group Revenue saw a decline of 12%, settling at $113 million.

Looking Ahead: Fiscal Year 2025 Guidance

Intuit’s outlook for fiscal year 2025 remains optimistic, with expected growth across several metrics:

• Revenue: Forecasted to be between $18.160 billion and $18.347 billion, reflecting a 12% to 13% increase.

• GAAP Operating Income: Projected to range from $4.649 billion to $4.724 billion, indicating a growth of approximately 28% to 30%.

• Non-GAAP Operating Income: Expected to be between $7.241 billion and $7.316 billion, a growth of about 13% to 14%.

• Earnings Per Share:

  • GAAP: Expected between $12.34 and $12.54, marking an 18% to 20% increase.

  • Non-GAAP: Projected between $19.16 and $19.36, showing a 13% to 14% increase.

Segment-specific guidance includes:

• Small Business and Self-Employed Group: Anticipated growth of 16% to 17%, with online ecosystem revenue expected to grow around 20%.

• Consumer Group: Forecasted growth of 7% to 8%.

• ProTax Group: Expected growth of 3% to 4%.

• Credit Karma: Projected growth of 5% to 8%.

Stock Performance: Intuit vs. S&P 500

Year-to-Date (YTD) Comparison

• Intuit Inc.: Up by 6.90% YTD.

• S&P 500: Up by 16.79% YTD.

Despite Intuit’s impressive financial performance, its YTD stock growth lags behind the broader S&P 500 index. While the S&P 500 has enjoyed a robust 16.79% increase this year, Intuit’s 6.90% rise appears relatively subdued. This discrepancy may highlight investor sentiment or market factors not immediately reflected in Intuit’s strong quarterly and annual results.

Conclusion

Intuit’s strong financial results for fiscal year 2024 underscore its continued growth and strategic advancements, particularly in AI-driven platforms. However, the company’s stock performance has not mirrored the broader market’s upward trajectory. Investors may be weighing other factors beyond the financials as they assess Intuit’s future potential.