INTUIT INC. (INTU) Q1 2025 Earnings Summary

Executive Summary

Q1 FY25 revenue was $3.283B (+10% YoY), with Global Business Solutions (GBS) Online Ecosystem +20% and Credit Karma +29% driving strength; GAAP EPS was $0.70 and non-GAAP EPS $2.50 .
Full-year FY25 guidance was reiterated: revenue $18.160–$18.347B (+12–13%), GAAP EPS $12.34–$12.54 (+18–20%), non-GAAP EPS $19.16–$19.36 (+13–14%) .
Q2 FY25 guidance: revenue $3.812–$3.845B (+13–14%), GAAP EPS $0.84–$0.90, non-GAAP EPS $2.55–$2.61; Consumer revenue expected to decline single digits due to retail channel promo timing largely tied to desktop, shifting revenue into Q3 without changing FY expectations .
Strategic catalysts: launch of Intuit Assist for QuickBooks delivering “done-for-you” AI experiences (e.g., invoice reminders get paid ~5 days sooner), bolstering adoption and service attach; management highlighted mid‑market momentum with QBO Advanced/Intuit Enterprise Suite (IES) online ecosystem revenue up ~42% .
Capital allocation: $570M repurchases, $1.04 dividend (16% YoY increase), cash/investments ~$3.4B, debt ~$6.1B .

What Went Well and What Went Wrong

What Went Well

AI-driven platform execution: “We’ve had a strong start…delivering ‘done-for-you’ experiences, enabled by AI with access to AI-powered human experts” (CEO) ; Intuit Assist now generally available to all U.S. QBO customers, showing improved conversion, retention, and service adoption (CEO) .
Mid‑market acceleration: Online ecosystem revenue for QBO Advanced and IES grew ~42%, with strong customer examples and high ARPC; management argues mid-market is high margin and more lucrative over time (CEO/CFO) .
Credit Karma momentum: Revenue +29% to $524M led by personal loans (+11 pts), auto insurance (+9 pts), and credit cards (+8 pts), aided by more stable rates and product improvements (CEO/CFO) .

What Went Wrong

Desktop ecosystem declined 17% in Q1, reflecting model transition; recovery to growth expected in Q2 (CFO) .
Consumer (-6%) and ProTax (-7%) down due to lapping the extended California tax filing deadline last year (press release) .
Mailchimp churn at the lower end of the base; discovery/usability for very small customers needs improvement, with several quarters expected to realize outcomes at scale (CEO) .

Financial Results

Consolidated Performance vs prior year and prior quarter

Metric	Q1 FY24 (oldest)	Q4 FY24	Q1 FY25 (newest)
Revenue ($USD Billions)	$2.978	$3.184	$3.283
GAAP Operating Income ($USD Millions)	$307	$(151)	$271
Non-GAAP Operating Income ($USD Millions)	$960	$730	$953
GAAP Diluted EPS ($)	$0.85	$(0.07)	$0.70
Non-GAAP Diluted EPS ($)	$2.47	$1.99	$2.50
GAAP Operating Margin (%)	10.3% (calc. from operating income/revenue)	-4.7% (calc.)	8.3% (calc.)
Non-GAAP Operating Margin (%)	32.2% (calc.)	22.9% (calc.)	29.0% (calc.)
Cash from Operations ($USD Millions)	$(97)	N/A	$362

Note: Operating margin values are calculated from reported revenue and operating income; citations reference the underlying reported figures.

Segment and Business Mix for Q1 FY25

Segment/Mix	Revenue ($USD Millions)	YoY Growth
Global Business Solutions Group (GBS)	$2,500	+9%
Online Ecosystem (subset of GBS)	$1,900	+20%
Credit Karma	$524	+29%
Consumer Group	$176	-6%
ProTax Group	$39	-7%

KPIs and Operational Metrics

KPI	Q1 FY25 Value
QuickBooks Online Accounting revenue growth	+21% (drivers: customer growth, price, mix)
Online Services revenue growth (money, payroll, Mailchimp)	+19%
Total online payment volume growth	+17%
International online ecosystem growth (constant currency)	+10%
QBO Advanced + IES online ecosystem revenue growth	~+42%
Credit Karma growth contributions (product points)	PL +11 pts; Insurance +9 pts; Cards +8 pts

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	FY25	$18.160–$18.347	$18.160–$18.347	Maintained
GAAP Operating Income ($B)	FY25	$4.649–$4.724	$4.649–$4.724	Maintained
Non-GAAP Operating Income ($B)	FY25	$7.241–$7.316	$7.241–$7.316	Maintained
GAAP Diluted EPS ($)	FY25	$12.34–$12.54	$12.34–$12.54	Maintained
Non-GAAP Diluted EPS ($)	FY25	$19.16–$19.36	$19.16–$19.36	Maintained
GBS segment revenue growth	FY25	+16–17% (Online ~+20%, Desktop low single digits)	+16–17% (Online ~+20%, Desktop low single digits)	Maintained
Consumer segment revenue growth	FY25	+7–8%	+7–8%	Maintained
ProTax segment revenue growth	FY25	+3–4%	+3–4%	Maintained
Credit Karma revenue growth	FY25	+5–8%	+5–8%	Maintained
Revenue ($B)	Q2 FY25	N/A	$3.812–$3.845	New
GAAP Diluted EPS ($)	Q2 FY25	N/A	$0.84–$0.90	New
Non-GAAP Diluted EPS ($)	Q2 FY25	N/A	$2.55–$2.61	New
Dividend per share ($)	Next payment	$1.04 (Q4 declaration)	$1.04 payable Jan 17, 2025	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY24)	Previous Mentions (Q4 FY24)	Current Period (Q1 FY25)	Trend
AI/Intuit Assist	24M TurboTax users used Assist; plan to scale done‑for‑you across platform	~1M businesses engaging with Assist; future growth not in guidance	Assist GA for U.S. QBO; improved conversion/retention/service attach; launch with invoice reminders and cashflow agents	Scaling across products
Mid‑market/IES	Focus on mid‑market; QBO Advanced +28% in FY24	Building go‑to‑market; high ARPC mid‑market customers	QBO Advanced/IES online ecosystem +~42%; high margin, lucrative; 200+ sales hires ramping	Accelerating
Payments/Money	Payments TPV +22% in Q3; strong money suite investments	TPV +19% in Q4; Bill Pay adoption	Online payment volume +17%; storms and calendar days impacted Q1, expected to accelerate	Solid; temporary factors
Mailchimp	Lapping price changes; intl focus	Integrating with QuickBooks; mid‑market & intl priorities	Higher churn in very small customers; fixes to first‑time use/discoverability; several quarters to improve	Near‑term headwind
Consumer Assisted Tax	TurboTax Live revenue +17% FY24; full service doubled	Early marketing before season; assisted share take	Early marketing lifted consideration; Q2 retail promo timing shifts desktop revenue to Q3	Ongoing disruption of assisted
Credit Karma	Mixed macro; +8% Q3	Return to growth; FY25 LT growth updated	+29% Q1; ~50-50 product/macro drivers (rates stable, product engagement)	Strong recovery
Desktop Transition	Completing subscription shift; Q1 FY25 revenue shift noted	Desktop enterprise high single-digit growth expected	Desktop −17% Q1; expected to return to growth in Q2	Transitioning, improving

Management Commentary

“We’ve had a strong start to the year…delivering ‘done‑for‑you’ experiences, enabled by AI with access to AI‑powered human experts” (CEO) .
“Online ecosystem revenue grew 20%…mid‑market grew approximately 42%…we’re seeing good adoption of our services” (CFO) .
“Intuit Assist…now generally available to all U.S. QuickBooks Online customers…we learned improved conversion, improved retention, and adoption of services” (CEO) .
“Credit Karma revenue growth accelerated to 29%…strength in personal loans, auto insurance and credit cards” (CFO) .
“It [mid‑market] is very high margin, very lucrative, high ARPC…platform‑driven services and higher mix make it more lucrative” (CEO) .

Q&A Highlights

Drivers behind online ecosystem +20%: strong retention after price changes, mix shift toward mid‑market (~+42%), services adoption; supports reaffirmed FY guidance (CFO) .
Mailchimp churn at lower end is idiosyncratic to product complexity for small customers; deep integration effort expected over several quarters; not macro-driven (CEO) .
Q2 Consumer revenue decline reflects retail promo timing in desktop, shifting revenue into Q3 without changing units/FY revenue (CEO) .
Payments volume +17% was impacted by East Coast storms and fewer days; expected to accelerate (CEO) .
Mid‑market economics: high ARPC and high margin; platform leverage and AI make sales lift efficient (CEO) .
Spending timing: lighter EPS beat and Q2 EPS guide reflect front-loaded marketing and mid‑market go‑to‑market investments while optimizing ROI for the full year (CFO) .

Estimates Context

S&P Global consensus estimates (revenue, EPS) for Q1 FY25 and Q2 FY25 were unavailable at time of request due to a temporary access limit, so we cannot quantify beats/misses versus consensus. Management reaffirmed FY25 guidance and provided Q2 ranges (see Guidance Changes above) .

Metric	Q1 FY25 Actual	S&P Global Consensus	Q2 FY25 Guidance
Revenue ($USD Billions)	$3.283	Unavailable (SPGI daily limit exceeded)	$3.812–$3.845
GAAP Diluted EPS ($)	$0.70	Unavailable	$0.84–$0.90
Non-GAAP Diluted EPS ($)	$2.50	Unavailable	$2.55–$2.61

Key Takeaways for Investors

Quality of growth: Q1 strength was driven by higher‑value ecosystems (GBS Online +20%, mid‑market ~+42%) and Credit Karma (+29%), supporting margin trajectory over FY25 (management reiterated full-year guide) .
Near-term optics: Q2 Consumer decline is timing-related (desktop promotions), shifting revenue to Q3; not indicative of underlying demand; Desktop expected to return to growth in Q2 .
AI adoption catalyst: Intuit Assist should lift conversion, retention and services attach across QuickBooks, TurboTax, Credit Karma, and Mailchimp, creating multi‑year monetization optionality .
Mid‑market thesis: High ARPC, high margin, and platform leverage suggest durable growth and improving mix; ongoing go‑to‑market ramp should be monitored (200+ hires) .
Watch Mailchimp execution: Churn at the very small customer segment is a fixable UX/product issue; management guided several quarters to see improvement; not a macro drag .
Capital returns intact: $570M buybacks and $1.04 dividend (16% YoY increase) highlight confidence and cash-generation resilience .
Actionable: The narrative for stock movement centers on sustained 20% online ecosystem growth, AI‑enabled service attach, and mid‑market acceleration, versus near-term desktop/Consumer timing noise; FY25 guide maintained is supportive for medium‑term multiple stability .

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