The operating cash flow was negative in Q1 2024 primarily due to a significant impact from increased tax payments and changes in operating assets and liabilities. **Intuit made tax payments of approximately $710 million** during the quarter, a cash outflow that had been deferred from fiscal 2023 because of IRS disaster area tax relief.  **[INTU_3368201_7]**  Additionally, there were substantial changes in operating assets and liabilities, including a **$565 million decrease in income taxes payable**, a **$232 million decrease in accrued compensation and related liabilities**, and a **$159 million decrease in deferred revenue**, all of which further reduced the operating cash flow.  **[0000896878-23-000039_fy24q1earningspressrelease.htm:8]** **[0000896878-23-000041_intu-20231031.htm:7]**  These combined factors resulted in a net cash outflow of **$(97) million** in Q1 2024 compared to a cash inflow of **$328 million** in Q1 2023.  **[0000896878-23-000041_intu-20231031.htm:48]** **[0000896878-23-000039_fy24q1earningspressrelease.htm:8]** **[0000896878-23-000041_intu-20231031.htm:7]** 

Why was Operating Cash Flow negative in Q1 2024?

The operating cash surge in Q3 2024 was driven by **higher net income** and **enhanced non-cash adjustments**. In particular, Intuit’s net income increased significantly, which, along with a **rise in share-based compensation expense**, contributed to greater non-cash additions. Furthermore, favorable movements in operating working capital—including a notable decrease in income taxes payable and positive contributions from other liabilities—helped boost the overall cash flow, despite a larger outflow from accounts receivable.  **[0000896878-24-000026_intu-20240430.htm:55]** **[0000896878-24-000026_intu-20240430.htm:8]** 

What drove the operating cash surge in Q3 2024?

The documents do not provide any specific details or reasons that caused the capex reversal in Q4 2024. Instead, they note that the **Purchases of property and equipment** remained consistent with prior periods, without any highlighted fluctuations that would explain the reversal.  **[0000896878-24-000035_fy24q4earningspressrelease.htm:9]** 

What caused the capex reversal in Q4 2024?

Why did Free Cash Flow drop dramatically in Q4 2024?

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The **spike in cash and cash equivalents** in Q3 2024 was primarily driven by three key factors. First, **operating activities generated strong cash flow** with **$4,467 million** provided, bolstering the company’s liquidity.  **[0000896878-24-000026_intu-20240430.htm:55]**  Second, there was an improvement in **investing activities**, where the net inflow of **$25 million** replaced the previous trend of net cash outflows, reflecting reduced investments in corporate and customer fund investments.  **[0000896878-24-000026_intu-20240430.htm:55]**  Lastly, the **financing activities saw a significant reduction in net cash outflow**, with only **$851 million** being used compared to the much larger outflows in the prior period, due in part to lower debt repayments and treasury stock purchases.  **[0000896878-24-000026_intu-20240430.htm:55]**  This combination of robust operating cash flow, favorable investing cash movements, and a reduction in financing outflows collectively contributed to the sharp increase in cash and cash equivalents in Q3 2024.  **[0000896878-24-000026_intu-20240430.htm:5]** **[0000896878-24-000026_intu-20240430.htm:55]** 

Why did Cash and cash equivalents spike in Q3 2024?

Investments were unusually low in Q2 2024 because Intuit significantly reduced its investment portfolio through a large volume of sales and maturities, totaling **$946 million** (with **$490 million** from sales and **$456 million** from maturities) while simultaneously reducing its investment purchases to only **$92 million** compared to prior periods. This strategy was part of a broader cash management approach, as the proceeds helped increase cash and cash equivalents substantially.  **[0000896878-24-000011_intu-20240131.htm:8]** **[0000896878-24-000011_intu-20240131.htm:17]** 

Why were Investments unusually low in Q2 2024?

The documents indicate that the sharp increase in Intuit’s accounts receivable, net—from **$405 million** as of July 31, 2023, to **$928 million** as of January 31, 2024—does not have a specific explanation provided. Generally, such increases can be attributed to factors like increased sales or changes in the timing of customer collections, but no definitive reason was stated in the documents.  **[0000896878-24-000011_intu-20240131.htm:5]** 

What explains the sharp increase in Accounts receivable in Q2 2024?

The surge in **Funds receivable** in Q1 2025 was primarily driven by several factors. **Seasonal business activity** led to higher transaction volumes, which in turn increased the amounts due from third-party payment processors, funds in transit to customers, and funds held on behalf of customers. Additionally, there was a notable increase in **restricted cash and restricted cash equivalents**, indicating that higher customer funds were being held in restricted accounts. These factors combined explain the significant rise in funds receivable in Q1 2025.  **[0000896878-24-000053_intu-20241031.htm:14]** **[0000896878-24-000053_intu-20241031.htm:16]** 

What drove the surge in Funds receivable in Q1 2025?

The decline in **long-term debt** during Q4 2024 was primarily due to a significant **repayment of debt** using **$4.2 billion**, which outweighs the **$4.0 billion** received from the issuance of new unsecured senior notes. This net effect led to a decrease of **$581 million** (around **9%**), as the repayment activities exceeded new borrowings.  **[0000896878-24-000039_intu-20240731.htm:82]** **[0000896878-24-000039_intu-20240731.htm:84]** 

Why did Long-term debt decline in Q4 2024?

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The near doubling of **Total Net Revenue** in **Q3 2024**—rising from **$3,386 million** in Q2 to **$6,737 million**—was driven by robust performance across multiple segments. In the **Small Business & Self-Employed Segment**, revenue increased by **18% to $2,387 million**, spurred mainly by a **19% growth in QuickBooks Online Accounting** and a boost in Online Services, including payments, payroll, and Mailchimp. Additionally, the **Consumer Segment** contributed significantly by growing **9% to $3,653 million**, helped by the momentum in TurboTax Live and a shift to higher-priced services. Further contributions came from the **Credit Karma** segment (**$443 million**) and the **ProTax** segment (**$254 million**), with overall gains reinforced by strategic pricing and customer growth initiatives.  **[0000896878-24-000026_intu-20240430.htm:42]** **[INTU_3390590_3]** **[0000896878-24-000024_fy24q3earningspressrelease.htm:0]** **[0000896878-24-000026_intu-20240430.htm:45]** 

Why did Total Net Revenue nearly double in Q3 2024?

The surge in **Operating Income** in **Q3 2024** was driven by robust **revenue growth** that outpaced increases in operating expenses. In particular, a **$719 million (12%)** rise in total net revenue was largely fueled by solid gains in the **Small Business & Self-Employed segment**—notably its **Online Ecosystem**—as well as higher effective prices in the **Consumer segment** through offerings like **TurboTax Live**.  **[0000896878-24-000026_intu-20240430.htm:42]** **[INTU_3390590_3]**  Meanwhile, even though operating expenses increased by **$306 million (14%)**, the relatively lower rate of expense growth helped boost operating income from **$2,778 million** in Q3 2023 to **$3,105 million** in Q3 2024.  **[0000896878-24-000026_intu-20240430.htm:42]** **[0000896878-24-000024_fy24q3earningspressrelease.htm:5]** **[0000896878-24-000026_intu-20240430.htm:50]** 

What drove the surge in Operating Income in Q3 2024?

The negative operating income in Q4 2024 was primarily driven by a **restructuring charge of $223 million** related to organizational changes announced in July 2024, which transformed the GAAP operating performance from a modest positive figure in the comparable quarter of the previous year to a **GAAP operating loss of $151 million**. Despite strong underlying business performance demonstrated by a **17% increase in total revenue** (reaching **$3.2 billion**) and a robust **non-GAAP operating income of $730 million**, the one-time restructuring expense had a profound impact on the GAAP results.  **[INTU_3399691_3]** **[0000896878-24-000035_fy24q4earningspressrelease.htm:0]** 

What factors led to the negative Operating Income in Q4 2024?

The jump in Net Income in **Q3 2024** was primarily due to **robust revenue growth**—with significant contributions from the **Small Business & Self-Employed** and **Consumer** segments—and a **substantial increase in operating income** (up by **$327 million**) despite higher staffing, marketing, and share-based compensation expenses. Additionally, **higher interest income** further bolstered the net income, even as increased tax expenses partially offset these gains.  **[0000896878-24-000026_intu-20240430.htm:42]** **[0000896878-24-000024_fy24q3earningspressrelease.htm:5]** **[0000896878-24-000026_intu-20240430.htm:4]** 

Why did Net Income jump so high in Q3 2024?

In **Q4 2024**, Intuit's Basic EPS turned negative primarily because it incurred a **GAAP operating loss of $151 million** driven largely by a **restructuring charge of $223 million** related to organizational changes announced in July 2024. This significant expense reversed the company's previous earnings, leading to a loss of **$0.07** per share in the quarter.  **[INTU_3399691_3]** **[0000896878-24-000035_fy24q4earningspressrelease.htm:0]** 

What caused Basic EPS to turn negative in Q4 2024?

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International Revenue

- Total International

Total Revenue

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INTUIT (INTU)

Financials