One of the top financial software providers, Intuit, is known for making money management chores easier. Its clientele includes individuals, small enterprises, and independent contractors. Among its offerings are Mailchimp, Credit Karma, QuickBooks, and TurboTax.
INTU's Performance Looks Potent
Once the market ends on November 21, Intuit Inc will release its fiscal 2025 first-quarter results. Let's examine INTU's fiscal 2024 performance, what analysts predict for this period, and whether the company is a good investment.
Intuit's revenue climbed 13% yearly to $16.3 billion in fiscal 2024. The business is divided into three categories, with the biggest revenue increase, 19%, reported by small companies and the self-employed.
Over the year, QuickBooks Online's financial revenue rose by 17% in this category. Additionally, management reported that "increases in purchases, payroll, funding, and Mailchimp" were the main drivers of the 21% rise in e-commerce revenue.
One of the main forces behind growth is still the small business environment. With Intuit growing its ecosystem to encompass payroll, payment processing, and other business administration products, QuickBooks especially has seen significant popularity.
Intuit's Earnings Overview
Despite Intuit's existing market dominance in the United States, expanding internationally is a substantial growth possibility. The business has invested in adapting its solutions to the demands of clients worldwide. The 13% rise in foreign internet revenue for the fiscal year 2024 indicates this. At $16.94, the adjusted profit per share (EPS) rose 18%.
The business ended the quarter with $6 billion in loans and $4.1 billion in liquidity and investments. Despite the debt, Intuit has been able to return investments to shareholders thanks to its steady earnings growth. In fiscal year 2024, the corporation bought back $2 billion shares.
It reported raising its quarterly dividend by 16% to $1.04 per share in the fourth fiscal quarter. Compared to the tech sector's median yield of 1.3%, INTU's yield of 0.63% is not very attractive. However, income-seeking shareholders might find its rapid dividend hikes appealing. During the past twelve years, its dividends have grown.
Its forecast dividend payout ratio of 21.5% is very modest, suggesting that dividend payments are currently growth-friendly and sustainable.
Intuit's Growth factor
The majority of industries have benefited from AI. Thanks to artificial intelligence integration, TurboTax can now offer tailored tax advice, while QuickBooks helps companies automate forecasting and bookkeeping processes.
Intuit's wide range of products allows cross-selling. For instance, a QuickBooks user might find that Credit Karma offers financial data while Mailchimp helps with marketing.
