Company Hosts Annual Investor Day;
Highlights Cloud and
Ecosystem Momentum

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–
Intuit Inc. (Nasdaq: INTU)
reaffirmed its financial guidance for the first quarter and full fiscal
year 2016 and updated its outlook for fiscal 2017. The company’s fiscal
year runs from Aug. 1 to July 31.

Intuit provided these updates in conjunction with Investor
Day
, being held today at the company’s Mountain View, Calif.,
headquarters. President and Chief Executive Officer Brad
Smith (@IntuitBrad)
will address the company’s sharpened focus in
its businesses that strengthen the ecosystem and align with two
strategic goals: to be the operating system behind small business
success, and to do the nations’ taxes in the U.S. and Canada.

“We are a company transformed—and I’m looking forward to sharing more on
the strategic business decisions we’ve made, why we made them, and how
we are putting all of our innovation against the critical few things
that will change the most customers’ lives and drive our growth,” said
Smith. “Our focus has never been clearer, and our global cloud strategy
continues to gain traction.”

In addition to Smith’s presentation, Neil Williams, Intuit’s chief
financial officer, will present the company’s financials, including an
overview of drivers of subscriber and earnings growth. The session will
also include overviews of Intuit’s strategic priorities, presented by
Intuit’s senior leaders.

Forward-looking Guidance

“We’re making the right tradeoffs to grow small business customers and
revenue double-digits over the next few years,” Smith said. “I’ve never
had greater confidence as we build this company for long-term success.”

Fiscal 2016 Guidance

Intuit announced guidance for fiscal year 2016, which ends July 31, on
Aug. 20. The company is reiterating guidance set and expects:

  • Revenue of .525 billion to .600 billion, growth of 8 to 10 percent.
  • GAAP operating income of .115 billion to .145 billion, growth of
    51 to 55 percent.
  • Non-GAAP operating income of .450 billion to .480 billion, growth
    of 27 to 30 percent.
  • GAAP diluted earnings per share of .50 to .55, versus .28 in
    fiscal 2015, which included goodwill and intangible asset impairment
    charges.
  • Non-GAAP diluted EPS of .40 to .45, growth of 31 to 33 percent.

Intuit expects the following segment revenue growth for fiscal year 2016:

  • Small Business Group: 7 to 9 percent.

    • Total Small Business, including Consumer Ecosystem (Mint, Mint
      Bills and OFX): 5 to 7 percent.
  • Consumer Tax Group: 5 to 7 percent.
  • Professional Tax: 48 to 51 percent.

    • For the fiscal first quarter, the company expects Professional Tax
      revenue of approximately 0 million.

First Quarter Fiscal 2016 Guidance

Intuit expects:

  • Revenue of 0 million to 0 million, growth of 8 to 11 percent.
  • GAAP operating loss of million to 0 million, compared to an
    operating loss of 9 million in the year-ago quarter.
  • Non-GAAP operating loss of million to million, compared to an
    operating loss of million in the year-ago quarter.
  • GAAP net loss per share of {$content}.26 to {$content}.27, compared to a net loss per
    share of {$content}.29 in the year-ago quarter.
  • Non-GAAP loss per share of {$content}.03 to {$content}.04, compared to a loss per
    share of {$content}.11 in the year-ago quarter.

Fiscal 2017 Outlook

Intuit is also providing targets for key metrics in fiscal 2017:

  • QuickBooks Online subscribers of 2.0 million to 2.2 million, implying
    average year-over-year growth of more than 40 percent over the next
    two years.
  • GAAP earnings per share of .25 to .75.
  • Non-GAAP earnings per share of .00 to .50, growth of greater than
    15 percent.

Investor Day-How to Participate

The event will be broadcast live on Intuit’s website at http://investors.intuit.com/events/default.aspx.
A replay of the video webcast will be available on Intuit’s website two
hours after the meeting ends.

About Intuit Inc.

Intuit Inc. creates business and
financial management solutions that simplify the business of life for
small businesses, consumers and accounting professionals.

Its flagship products and services include QuickBooks®
and TurboTax®,
which make it easier to manage small businesses and tax preparation and
filing. Mint.com
provides a fresh, easy and intelligent way for people to manage their
money while ProSeries®
and Lacerte®
are Intuit’s leading tax preparation offerings for professional
accountants.

Founded in 1983, Intuit had revenue of .2 billion in its fiscal year
2015. The company has approximately 7,700 employees with major offices
in the United States, Canada, the United Kingdom, India and other
locations. More information can be found at www.intuit.com.

Intuit and the Intuit logo, among others, are registered trademarks
and/or registered service marks of Intuit Inc. in the United States and
other countries.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP
financial measures. For a description of these non-GAAP financial
measures, including the reasons management uses each measure, and
reconciliations of these non-GAAP financial measures to the most
directly comparable financial measures prepared in accordance with
Generally Accepted Accounting Principles, please see the section of the
accompanying table titled “About Non-GAAP Financial Measures” as well as
the related Table 1. A copy of the press release issued by Intuit today
can be found on the investor relations page of Intuit’s Web site.

Cautions About Forward-looking Statements

This press release contains forward-looking statements, including
forecasts of expected growth and future financial results of Intuit and
its reporting segments; Intuit’s prospects for the business in fiscal
2016 and beyond; expectations regarding Intuit’s growth outside the US;
expectations regarding timing and growth of revenue for each of Intuit’s
reporting segments and from current or future products and services;
expectations regarding customer growth; expectations regarding changes
to our products and their impact on Intuit’s business; expectations
regarding the amount and timing of any future dividends or share
repurchases; expectations regarding availability of our offerings;
expectations regarding the impact of our strategic decisions on Intuit’s
business; and all of the statements under the heading “Forward-looking
Guidance”.

Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our actual
results to differ materially from the expectations expressed in the
forward-looking statements. These factors include, without limitation,
the following: inherent difficulty in predicting consumer behavior;
difficulties in receiving, processing, or filing customer tax
submissions; consumers may not respond as we expected to our advertising
and promotional activities; product introductions and price competition
from our competitors can have unpredictable negative effects on our
revenue, profitability and market position; governmental encroachment in
our tax businesses or other governmental activities or public policy
affecting the preparation and filing of tax returns could negatively
affect our operating results and market position; we may not be able to
successfully innovate and introduce new offerings and business models to
meet our growth and profitability objectives, and current and future
offerings may not adequately address customer needs and may not achieve
broad market acceptance, which could harm our operating results and
financial condition; business interruption or failure of our information
technology and communication systems may impair the availability of our
products and services, which may damage our reputation and harm our
future financial results; as we upgrade and consolidate our customer
facing applications and supporting information technology
infrastructure, any problems with these implementations could interfere
with our ability to deliver our offerings; any failure to properly use
and protect personal customer information and data could harm our
revenue, earnings and reputation; if we are unable to develop, manage
and maintain critical third party business relationships, our business
may be adversely affected; increased government regulation of our
businesses may harm our operating results; if we fail to process
transactions effectively or fail to adequately protect against potential
fraudulent activities, our revenue and earnings may be harmed; related
publicity regarding such fraudulent activity could cause customers to
lose confidence in using our software and adversely impact our results;
any significant offering quality problems or delays in our offerings
could harm our revenue, earnings and reputation; our participation in
the Free File Alliance may result in lost revenue opportunities and
cannibalization of our traditional paid franchise; the continuing global
economic downturn may continue to impact consumer and small business
spending, financial institutions and tax filings, which could negatively
affect our revenue and profitability; year-over-year changes in the
total number of tax filings that are submitted to government agencies
due to economic conditions or otherwise may result in lost revenue
opportunities; our revenue and earnings are highly seasonal and the
timing of our revenue between quarters is difficult to predict, which
may cause significant quarterly fluctuations in our financial results;
our financial position may not make repurchasing shares advisable or we
may issue additional shares in an acquisition causing our number of
outstanding shares to grow; our inability to adequately protect our
intellectual property rights may weaken our competitive position and
reduce our revenue and earnings; our acquisition and divestiture
activities may disrupt our ongoing business, may involve increased
expenses and may present risks not contemplated at the time of the
transactions; our use of significant amounts of debt to finance
acquisitions or other activities could harm our financial condition and
results of operation; and litigation involving intellectual property,
antitrust, shareholder and other matters may increase our costs. More
details about the risks that may impact our business are included in our
Form 10-K for fiscal 2015 and in our other SEC filings. You can locate
these reports through our website at http://investors.intuit.com.
Forward-looking statements are based on information as of September 17,
2015 and we do not undertake any duty to update any forward-looking
statement or other information in these materials.

See “About Non-GAAP Financial Measures” below for information on these
measures, the items excluded from the most directly comparable GAAP
measures in arriving at non-GAAP financial measures, and the reasons
management uses each measure and excludes the specified amounts in
arriving at each non-GAAP financial measure.

TABLE 1
           
INTUIT INC.
RECONCILIATIONS OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP
FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME AND EPS
(In millions, except per share amounts)
 
 
Forward-Looking Guidance
GAAP Non-GAAP
Range of Estimate Range of Estimate
From   To Adjustments From   To
 
Three Months Ending
October 31, 2015
Revenue $ 660 $ 680 $ $ 660 $ 680
Operating loss $ (100 ) $ (95 ) $ 90 [a] $ (10 ) $ (5 )
Diluted loss per share $ (0.27 ) $ (0.26 ) $ 0.23 [b] $ (0.04 ) $ (0.03 )
 
 
Twelve Months Ending
July 31, 2016
Revenue $ 4,525 $ 4,600 $ $ 4,525 $ 4,600
Operating income $ 1,115 $ 1,145 $ 335 [c] $ 1,450 $ 1,480
Diluted earnings per share $ 2.50 $ 2.55 $ 0.90 [d] $ 3.40 $ 3.45
 
 
Twelve Months Ending
July 31, 2017
Diluted earnings per share $ 3.25 $ 3.75 $ 0.75 [e] $ 4.00 $ 4.50
 

[a] Reflects estimated adjustments for share-based compensation expense
of approximately million; amortization of acquired technology of
approximately million; and amortization of other acquired intangible
assets of approximately million.

[b] Reflects the estimated adjustments in item [a], income taxes related
to these adjustments, and other income tax effects related to the use of
the long-term non-GAAP tax rate.

[c] Reflects estimated adjustments for share-based compensation expense
of approximately 8 million; amortization of acquired technology of
approximately million; and amortization of other acquired intangible
assets of approximately million.

[d] Reflects the estimated adjustments in item [c], income taxes related
to these adjustments, and other income tax effects related to the use of
the long-term non-GAAP tax rate.

[e] Reflects estimated adjustments for share-based compensation expense
of approximately 0 million; amortization of acquired technology of
approximately million; and amortization of other acquired intangible
assets of approximately million. Also reflects income taxes related
to these adjustments and other income tax effects related to the use of
the long-term non-GAAP tax rate.

INTUIT INC.
ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press release dated September 17, 2015 contains
non-GAAP financial measures. Table 1 reconciles the non-GAAP financial
measures in that press release to the most directly comparable financial
measures prepared in accordance with Generally Accepted Accounting
Principles (GAAP). These non-GAAP financial measures include non-GAAP
operating income (loss), non-GAAP net income (loss) and non-GAAP net
income (loss) per share.

Non-GAAP financial measures should not be considered as a substitute
for, or superior to, measures of financial performance prepared in
accordance with GAAP. These non-GAAP financial measures do not reflect a
comprehensive system of accounting, differ from GAAP measures with the
same names and may differ from non-GAAP financial measures with the same
or similar names that are used by other companies.

We compute non-GAAP financial measures using the same consistent method
from quarter to quarter and year to year. We may consider whether other
significant items that arise in the future should be excluded from our
non-GAAP financial measures.

We exclude the following items from all of our non-GAAP financial
measures:

  • Share-based compensation expense
  • Amortization of acquired technology
  • Amortization of other acquired intangible assets
  • Goodwill and intangible asset impairment charges
  • Professional fees for business combinations

We also exclude the following items from non-GAAP net income (loss) and
diluted net income (loss) per share:

  • Gains and losses on debt and equity securities and other investments
  • Income tax effects and adjustments
  • Discontinued operations

We believe that these non-GAAP financial measures provide meaningful
supplemental information regarding Intuit’s operating results primarily
because they exclude amounts that we do not consider part of ongoing
operating results when planning and forecasting and when assessing the
performance of the organization, our individual operating segments or
our senior management. Segment managers are not held accountable for
share-based compensation expense, amortization, or the other excluded
items and, accordingly, we exclude these amounts from our measures of
segment performance. We believe that our non-GAAP financial measures
also facilitate the comparison by management and investors of results
for current periods and guidance for future periods with results for
past periods.

The following are descriptions of the items we exclude from our non-GAAP
financial measures.

Share-based compensation expenses. These consist of non-cash
expenses for stock options, restricted stock units and our Employee
Stock Purchase Plan. When considering the impact of equity awards, we
place greater emphasis on overall shareholder dilution rather than the
accounting charges associated with those awards.

Amortization of acquired technology and amortization of other
acquired intangible assets.
When we acquire an entity, we are
required by GAAP to record the fair values of the intangible assets of
the entity and amortize them over their useful lives. Amortization of
acquired technology in cost of revenue includes amortization of software
and other technology assets of acquired entities. Amortization of other
acquired intangible assets in operating expenses includes amortization
of assets such as customer lists, covenants not to compete and trade
names.

Goodwill and intangible asset impairment charges. We exclude from
our non-GAAP financial measures non-cash charges to adjust the carrying
values of goodwill and other acquired intangible assets to their
estimated fair values.

Professional fees for business combinations. We exclude from our
non-GAAP financial measures the professional fees we incur to complete
business combinations. These include investment banking, legal and
accounting fees.

Gains and losses on debt and equity securities and other investments. We
exclude from our non-GAAP financial measures gains and losses that we
record when we sell or impair available-for-sale debt and equity
securities and other investments.

Income tax effects and adjustments. We use a long-term non-GAAP
tax rate for evaluating operating results and for planning, forecasting,
and analyzing future periods. This long-term non-GAAP tax rate excludes
the income tax effects of the non-GAAP pre-tax adjustments described
above, assumes the federal research and experimentation credit is
continuously in effect, and eliminates the effects of non-recurring and
period specific items which can vary in size and frequency. Based on our
current long-term projections, we are using a long-term non-GAAP tax
rate of 34% which is consistent with the average of our normalized
fiscal year tax rate over a four year period that includes the past
three fiscal years plus the current fiscal year. We will evaluate this
long-term non-GAAP tax rate on an annual basis and whenever any
significant events occur which may materially affect this long-term
rate. This long-term non-GAAP tax rate could be subject to change for
various reasons including significant changes in our geographic earnings
mix or fundamental tax law changes in major jurisdictions in which we
operate.

Operating results and gains and losses on the sale of discontinued
operations.
From time to time, we sell or otherwise dispose of
selected operations as we adjust our portfolio of businesses to meet our
strategic goals. In accordance with GAAP, we segregate the operating
results of discontinued operations as well as gains and losses on the
sale of these discontinued operations from continuing operations on our
GAAP statements of operations but continue to include them in GAAP net
income or loss and net income or loss per share. We exclude these
amounts from our non-GAAP financial measures.

The reconciliations of the forward-looking non-GAAP financial measures
to the most directly comparable GAAP financial measures in Table 1
include all information reasonably available to Intuit at the date of
this press release. These tables include adjustments that we can
reasonably predict. Events that could cause the reconciliation to change
include acquisitions and divestitures of businesses, goodwill and other
asset impairments, and sales of available-for-sale debt securities and
other investments.

Source: Intuit Inc.

Investors
Intuit Inc.
Matt Rhodes, 650-944-2536
matthew_rhodes@intuit.com
or
Media
Intuit
Inc.
Diane Carlini, 650-944-6251
diane_carlini@intuit.com