Intuit's Second-Quarter Revenue Grows 5 Percent

Business Wire, Feb 17, 2005

MOUNTAIN VIEW, Calif. -- Intuit Inc. (Nasdaq:INTU) today announced its second-quarter 2005 revenue increased 5 percent over the year-ago quarter to $662.6 million. Intuit's revenue and profits were higher than the company forecasted three months ago due to stronger-than-expected results in its QuickBooks-Related and Consumer Tax segments.

"This was a strong quarter for Intuit, especially given that our tax revenue is increasingly shifting to our third quarter," said Steve Bennett, Intuit's president and chief executive officer. "While it's too early to declare victory on the entire season, we're pleased with our results in tax. We also had a strong quarter in QuickBooks, with a 38 percent surge in unit growth, including subscriptions."

Second-Quarter 2005 Financial Highlights

--GAAP (Generally Accepted Accounting Principles) net income was $147.3 million versus $149.1 million in the year-ago quarter. This represents $0.77 per diluted share, up 5 percent from $0.73 in the 2004 second quarter.

--Intuit had pro forma net income of $155.1 million versus $156.0 million in the year-earlier period. Pro forma earnings per diluted share were $0.82 versus $0.77, up 6 percent from the year-earlier period.

Second-Quarter 2005 Business Portfolio and Segment Results

--Consumer Tax revenue was $141.1 million, up 9 percent from the year-ago quarter.

--Professional Tax revenue was $150.6 million, down 4 percent, as expected, over the year-ago quarter.

--QuickBooks-Related revenue was $222.3 million, up 10 percent over the year-ago quarter.

--Intuit-Branded Small Business revenue was $75.1 million, up 10 percent over the year-ago quarter.

--Other Businesses revenue was $73.5 million, down 4 percent, as expected. This segment includes Quicken and Canada.

Forward-Looking Guidance for Fiscal 2005

Intuit raised its fiscal 2005 revenue guidance to reflect the strength of results in the first half of the year. Guidance for fiscal 2005 is:

--Revenue of $2.000 billion to $2.025 billion, or year-over-year growth of approximately 8 percent to 9 percent. Prior guidance was for revenue growth in the 6 percent to 9 percent range, or revenue of $1.966 billion to $2.022 billion.

--Pro forma operating income of $535 million to $559 million, or growth of approximately 12 percent to 17 percent over fiscal 2004. On a GAAP basis, operating income is expected to be $503 million to $527 million, or growth of approximately 14 percent to 20 percent over fiscal 2004. This is a reaffirmation of earlier guidance.

--Because Intuit is making additional investments to propel future growth, it is maintaining guidance for pro forma diluted earnings per share (EPS) of $1.93 to $2.01, or growth of approximately 15 percent to 20 percent over fiscal 2004. On a GAAP basis, diluted EPS is expected to be $1.82 to $1.90, up approximately 15 percent to 20 percent from fiscal 2004.

The company said it would provide guidance for fiscal 2006 when it announces fourth-quarter 2005 results in August 2005.

Forward-Looking Guidance for Third-Quarter 2005

--Intuit reaffirmed its revenue guidance for the third quarter, which will end on April 30, 2005. The company expects revenue of $780 million to $810 million, or year-over-year growth of 10 percent to 14 percent.

--Intuit expects pro forma operating income of $395 million to $415 million, or year-over-year growth of 11 percent to 16 percent. Intuit had not previously provided guidance for third-quarter pro forma operating income.

--Intuit expects pro forma diluted EPS of $1.42 to $1.47, or year-over-year growth of 18 percent to 23 percent. This is versus prior guidance of $1.46 to $1.51 and reflects incremental investments in several growth initiatives. Intuit expects GAAP diluted EPS of $1.39 to $1.44.

Forward-Looking Guidance for Fourth-Quarter 2005

--Intuit reaffirmed its revenue guidance for the fourth quarter, which will end on July 31, 2005. The company expects revenue of $285 million to $305 million, or year-over-year growth of 5 percent to 12 percent.

--Intuit expects a pro forma EPS loss of $0.05 to $0.09. This is versus its earlier range of a loss of $0.04 to $0.08, reflecting incremental investment in new growth initiatives. The company expects a GAAP EPS loss of $0.07 to $0.11.

Conference Call Scripts, Webcast and Conference Call Information

A live audio webcast of Intuit's first-quarter conference call is available at http://www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. (PST). The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has posted to its Web site this press release, including the attached tables and pro forma to GAAP reconciliations. It will post the conference call script to the Web site shortly after the conference call concludes.

The conference call number is 866-847-7863 in the United States and 703-639-1429 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling 888-266-2081 in the United States and 703-925-2533 from international locations. The access code is 642477.