Intuit Sees Q1 EPS $2.33-$2.38 Vs $2.79 Est.; Revenue Growth Of ~5%-6%; FY25 EPS $19.16-$19.36 Vs $19.15 Est.; Revenue $18.16B-$18.347B Vs $18.18B Est.

Author: Benzinga Newsdesk | August 22, 2024 04:05pm

Forward-looking Guidance

Intuit announced guidance for the full fiscal year 2025. The company expects:

• Revenue of $18.160 billion to $18.347 billion, growth of approximately 12 to 13 percent.
• GAAP operating income of $4.649 billion to $4.724 billion, growth of approximately 28 to 30 percent.
• Non-GAAP operating income of $7.241 billion to $7.316 billion, growth of approximately 13 to 14 percent.
• GAAP diluted earnings per share of $12.34 to $12.54, growth of approximately 18 to 20 percent.
• Non-GAAP diluted earnings per share of $19.16 to $19.36, growth of approximately 13 to 14 percent.

The company expects the following segment revenue results for fiscal year 2025:

• Small Business and Self-Employed Group: growth of 16 to 17 percent. This includes online ecosystem revenue growth of approximately 20 percent, and desktop ecosystem revenue growth in the low single digits.
• Consumer Group: growth of 7 to 8 percent.
• ProTax Group: growth of 3 to 4 percent.
• Credit Karma: growth of 5 to 8 percent.

GAAP guidance reflects an expected $24 million restructuring charge related to the reorganization the company announced in July.

Intuit also announced guidance for the first quarter of fiscal year 2025, which ends Oct. 31. The company expects:

• Revenue growth of approximately 5 to 6 percent, including:
  • Small Business and Self-Employed Group revenue growth of 6 to 7 percent. The company expects online ecosystem revenue growth, the company's growth catalyst, to accelerate to approximately 19 percent in the first quarter of fiscal 2025. The company expects desktop ecosystem revenue to decline approximately 20 percent in the first quarter of fiscal 2025, but return to growth in the second quarter. The first quarter desktop growth outlook reflects changes the company made to its QuickBooks desktop offerings in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates. The company expects these changes to lower revenue in the first quarter of fiscal 2025 by approximately $160 million. This includes approximately $50 million that was recognized in the first three quarters of fiscal 2024, approximately $60 million recognized in the fourth quarter of fiscal 2024, and approximately $50 million that the company expects to shift from the first quarter of fiscal 2025 to later quarters in fiscal 2025.
  • Credit Karma revenue to grow in the first quarter.
  • Consumer Group and ProTax revenue to decline in the first quarter, as the company laps the period a year ago that included the extended California tax filing deadline.
• GAAP earnings per share of $0.61 to $0.66.
• Non-GAAP diluted earnings per share of $2.33 to $2.38.

GAAP guidance reflects an expected $19 million restructuring charge that the company expects to incur in the first quarter related to the reorganization the company announced in July.

Posted In: INTU