Intuit’s TurboTax software is shown on a phone.
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Intuit shares gained ground in late trading Tuesday after the tax-and-accounting software company posted better-than-expected results for its fiscal fourth quarter, ended July 31.
Intuit also expanded its stock buyback program and boosted its dividend.
For the quarter, Intuit reported revenue of $2.56 billion, up 41% from the $1.81 billion reported in the year-earlier quarter. That includes $405 million in revenue from the company’s recently completed acquisition of Credit Karma. The company had projected growth of between 26% and 28%, while the Wall Street consensus view was that revenue would come in at $2.32 billion.
Non-GAAP profits were $1.97 a share, up 9% from a year ago, and well ahead of the Street’s call for $1.68. Management had predicted $1.55 to $1.60 a share.
Intuit said its “small business and self-employed” segment had revenue of $1.3 billion, up 19%. The company’s consumer group had revenue of $852 million, up 20%.
Full-year revenue was $9.6 billion, up 25%, with 11 points of growth from the Credit Karma deal. Full-year profits on a non-GAAP basis were $9.74 a share, up 24%.
Intuit bought back $1 billion of stock in fiscal 2021, and said its board authorized an additional $2 billion repurchase, boosting the total available for buybacks to $3.3 billion. Intuit also increased its quarterly dividend rate by about 15% to 68 cents a share, from 59 cents.
“We had a very strong fourth quarter capping off an outstanding fiscal 2021,” Intuit CEO Sasan Goodarzi said in a statement. “Our momentum continues across the company with accelerated innovation focused on our customers’ most important needs while creating durable growth opportunities for Intuit in the future.”
For the October quarter, Intuit sees revenue growth of between 36% and 38%, including Credit Karma, with non-GAAP profits of 94 to 99 cents a share, falling short of the Street consensus at $1.14 a share.
For the July 2022 fiscal year, Intuit sees revenue of $11.05 billion to $11.2 billion, up between 15% and 16%, with non-GAAP profits of $11.05 to $11.25 a share. The consensus expectation was for $10.95 billion in revenue and profits of $10.83 a share.
In late trading, Intuit was up about 1%, to $559.90.
Write to Eric J. Savitz at [email protected]
