Intuit (INTU) Q1 2025 earnings summary

Executive summary

• Revenue grew 10% year-over-year in Q1 FY25 to $3.3B, driven by 20% growth in the Online Ecosystem and 29% growth in Credit Karma revenue.

• The company is transforming into an AI-driven expert platform, focusing on done-for-you experiences and leveraging AI-powered human experts.

• Net income declined 18% to $197M, and diluted EPS fell to $0.70 from $0.85, reflecting higher expenses and a $42M net loss on a long-term investment.

• Strong momentum in both consumer and business platforms, with significant progress in mid-market offerings and AI-powered automation.

• Completed a reorganization to focus on key growth areas, incurring $9M in restructuring charges in the quarter.

Financial highlights

• Q1 FY25 revenue was $3.3B, up 10% year-over-year; GAAP operating income was $271M (down 12%), non-GAAP operating income was $953M (down 1%).

• GAAP diluted EPS was $0.70 (down 18%), non-GAAP diluted EPS was $2.50 (up 1%).

• Cash and investments at quarter-end were $3.4B; debt was $6.1B.

• Repurchased $570M of stock; $4.3B remains authorized for repurchase.

• Quarterly dividend increased 16% to $1.04 per share.

Outlook and guidance

• Fiscal 2025 revenue expected between $18.16–$18.35B, up 12–13% year-over-year.

• GAAP operating income guidance: $4.65–$4.72B (up 28–30%); non-GAAP: $7.24–$7.32B (up 13–14%).

• GAAP EPS guidance: $12.34–$12.54 (up 18–20%); non-GAAP EPS: $19.16–$19.36 (up 13–14%).

• Q2 FY25 revenue expected at $3.81–$3.85B, up 13–14% year-over-year.

• Segment revenue growth for FY25: Global Business Solutions 16–17%, Online Ecosystem ~20%, Consumer Group 7–8%, ProTax 3–4%, Credit Karma 5–8%.