After the bell Wednesday, Intuit Inc. (INTU) announced financial results for its fourth quarter, reporting that loss narrowed from last year on a double-digit growth in revenue. Excluding items, the company's non-GAAP loss per share was narrower than the Wall Street expectations. Revenue for the second quarter increased 31% year-over-year and came in above the analysts' estimate. In addition, the company announced that Steve Bennett, current president and chief executive officer, would step down at the end of December 2007. Following the news, shares of Intuit fell 61 cents or 2.13% to $28.33 in after-hours trading.
The Mountain View, California-based Intuit reported net loss on a GAAP basis for the fourth quarter of $13.64 million or $0.04 per share, compared to a GAAP net loss of $18.85 million or $0.06 per share in the same period last year.
Excluding charges, the company reported a non-GAAP net loss of $7.45 million or $0.02 per share, compared to a non-GAAP net loss of $11.45 million or $0.03 per share in the comparable prior year period.
On an average, twelve analysts polled by First Call/ Thomson Financial expected the company to report a loss of $0.05 per share for the fourth quarter.
Revenue for the quarter increased 31% to $432.7 million from $329.5 million in the year-ago quarter. Thirteen analysts had a revenue consensus estimate of $415.67 million for the fourth quarter.
Intuit stated that the revenue growth was driven by the acquisition of Digital Insight in February 2007 and strong performance in Small Business.
GAAP operating loss from continuing operations for the quarter was $56.7 million compared with a GAAP operating loss from continuing operations of $56.9 million in the year-ago quarter.
On a non-GAAP basis, Intuit had an operating loss of $17.3 million compared to a non-GAAP operating loss of $37.8 million in the year-ago quarter. Intuit typically posts a seasonal loss in its fourth quarter when it has little revenue from its tax businesses but expenses remain relatively constant.
For its fiscal year 2007, Intuit reported a GAAP net income of $440 million or $1.24 per share, compared to a GAAP net income of $417 million or $1.16 per share for the fiscal year 2006.
On a non-GAAP basis, the company reported net income of $508.45 million or $1.43 per share, compared to a non-GAAP net income of $437.07 million or $1.21 per share in the prior fiscal year.
Revenue of $2.67 billion increased 17% from $2.29 billion in fiscal 2006. Growth was driven by strong performance in Intuit's two largest growth engines, Small Business and Tax, and the acquisition of Digital Insight in February 2007.
Analysts expected earnings of $1.40 per share on revenue of $2.69 billion for the year. GAAP operating income from continuing operations of $637.6 million, was up 13% from fiscal 2006. Non-GAAP operating income of $764.8 million, was up 17% from fiscal.
QuickBooks revenue was $598.2 million, up 11% over fiscal 2006. Payroll and Payments revenue was $516.7 million, up 12% over fiscal 2006. Consumer Tax revenue was $812.9 million, up 15% over fiscal 2006. Professional Tax revenue was $291.8 million, up 7% over fiscal 2006.
Financial Institutions revenue was $150.4 million and includes the results of Digital Insight, which was acquired on February 6, 2007. Other Businesses revenue was $303 million, up 5% over fiscal 2006.
We are very pleased with the results of our fourth quarter and fiscal year. All of our businesses performed very well. We posted another year of double-digit revenue and earnings growth and we feel great about our position as we enter fiscal 2008, said Steve Bennett, president and CEO.
For its third quarter, the company had reported that net income climbed to $367.21 million or $1.04 per share from $298.65 million or $0.84 per share in the prior year period. Non-GAAP net income was $399 million or $1.13 per share, compared to $318 million or $0.89 per share last year.
Operating income from continuing operations jumped to $578.77 million from $480.11 million. Quarterly, total net revenue climbed to $1.15 billion from $952.60 million, exceeding Street view of $ 1.11 billion.
Product revenues rose to $489.62 million from $420.20 million, whereas service and other revenues advanced to $664.78 million from $532.40 million posted in the year-ago period.
Consumer Tax revenue grew 14% to was $567 million, while Professional Tax revenue was $138 million, up 32%. QuickBooks revenue increased 22% to $155 million, whereas Payroll and Payments revenue was $125 million, up 7% from the year-ago quarter.
Revenue from Financial Institutions was $65 million, including the results of Digital Insight, which was acquired on February 6. The company noted that other Businesses revenue of $104 million was up 6% from the year-ago quarter.
For the nine-month-period, net income climbed to $453.64 million or $1.27 per share from $435.82 million or $1.20 per share in the same period last year. Revenues rose to $2.279 billion from $1.999 billion posted in the same period in the previous fiscal.
For the second quarter, Intuit posted GAAP net income of $145.36 million or $0.40 per share, a decline from $182.97 million or $0.50 per share posted in the second quarter of 2006. Total net revenues for the quarter climbed to $763.31 million from $742.70 million in the year-ago quarter.
Going forward, Intuit said it expects revenue for the quarter of $426 million to $441 million, or year-over-year growth of 22% to 26%. The company expects GAAP net loss per share of $0.07 to $0.09 and non-GAAP net loss per share of $0.12 to $0.14.
Analysts expect a loss of $0.13 per share on revenue of $450.14 million for the first quarter.
For the full year, Intuit stated that it expects revenue of $3 billion to $3.05 billion, or year-over-year growth of 12% to 14%. GAAP earnings are expected in $1.41 to $1.43 per share range, or year-over-year growth of 14% to 15%.
On a non-GAAP basis, full year earnings are expected to be in the range of $1.59 to $1.61 per share, or year-over-year growth of 11% to 13%. Analysts expect earnings of $1.60 per share on revenue of $3.04 billion for the full year.
Also on Wednesday, Intuit named a new president and chief executive to replace Steve Bennett, who will step down as head of the Quicken and TurboTax software maker at the end of the year.
Brad Smith, senior vice president and general manager of the company's small business unit, will replace Bennett on January 1. Bennett plans to remain a member of the board and will serve as a consultant to the company until July, when the company's 2008 fiscal year ends.
Smith moved to his current job in May 2005 after similar roles in the company's consumer tax group. He joined Intuit in 2003. The company did not give a reason for the change.
INTU closed Wednesday's regular trading session at $28.94, up 44 cents or 1.54%, on the Nasdaq.
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