Intuit reported strong Q2 2025 earnings and is confident in delivering double-digit revenue growth

From Nasdaq.: 2025-02-25 20:30:22

Intuit held its Q2 2025 Earnings Call on Feb 25, 2025. The company reported strong results with a revenue growth of 17% and expressed confidence in delivering double-digit revenue growth and expanding margins this year. Intuit is focusing on revolutionizing speed to benefit by delivering done-for-you experiences with expertise, winning in tax, and mid-market. They are making progress with their AI-driven expert platform strategy and aim to fuel the success of their customers. Additionally, Intuit is off to a great start in tax, offering AI-driven, personalized tax experiences to customers. TurboTax Live Full Service offers customers an AI-powered human expert for tax assistance, receiving a product recommendation score of 84. Intuit’s AI capabilities automate tasks and workflows, providing personalized experiences for customers. The company’s marketing campaigns focus on experience, speed to money, and price, resulting in strong traction early in the tax season. Intuit is also making progress serving mid-market customers with QBO Advanced and Intuit Enterprise Suite, seeing accelerated growth and increased sales productivity. The company is well-positioned to win as an end-to-end platform delivering exceptional experiences for consumers and businesses.

In the second quarter of fiscal 2025, Intuit reported revenue of 4 billion, up 17%, with strong growth in the global business solutions group. Revenue growth was driven by online ecosystem revenue growth, excluding Mailchimp. GAAP operating income increased by 61%, and non-GAAP operating income was up by 26%. GAAP diluted earnings per share grew by 34%, and non-GAAP diluted earnings per share increased by 26%. Intuit’s business platform continues to help customers run and grow their businesses successfully. Intuit’s QuickBooks Online accounting revenue saw a 22% growth in Q2, driven by higher prices, customer growth, and mix shift. Online services revenue grew 19%, or 30% excluding Mailchimp, with revenue growth driven by payments, capital, bill pay, payroll, and Mailchimp. Total online payment volume grew 18% in Q2, with revenue growth in payroll reflecting customer growth and higher prices. The company continues to focus on disrupting the mid-market with ongoing product innovations. Intuit’s international online ecosystem revenue grew 9% in Q2, or 19% excluding Mailchimp. Looking ahead, the company expects total online ecosystem revenue to grow approximately 20% in fiscal 2025.

In the consumer group, revenue grew 3% in Q2, ahead of guidance for a low single-digit decline. Intuit’s strategy focuses on delivering the best experience, speed to money, and best price for customers. In the pro tax group, revenue was $272 million in Q2, down 1%. Credit Karma revenue growth accelerated to 36%, driven by strength in credit cards, personal loans, and auto insurance. The company is pleased with early results this tax season and reiterates guidance for 7-8% revenue growth in fiscal 2025 for the consumer group.

Intuit is leveraging AI to operate more efficiently and increase productivity internally, with nearly $90 million in annualized efficiencies delivered in the first half of the year. The company finished the quarter with $2.5 billion in cash and investments and $6.3 billion in debt on the balance sheet. Intuit repurchased $721 million of stock during the second quarter. The board approved a quarterly dividend of $1.04 per share, a 16% increase from last year, payable on April 18th, 2025. Fiscal 2025 guidance includes total revenue growth of 12% to 13% and GAAP operating income growth of 28% to 30%. Intuit is confident in its momentum and growth strategy, expecting double-digit revenue growth and operating income to outpace revenue. The company sees strength in both DIY and assisted tax filing categories and is focused on efficiency for IRS. Intuit remains bullish about the rest of the season and its progress. Intuit CEO, Sasan Goodarzi, reports stable macro environment for small businesses with profits and cash flows up year over year for smaller businesses. Larger businesses are leaning into digitization for growth. CFO, Sandeep Aujla, credits margin expansion to expense discipline, AI efficiencies, and slower tax season start. Hiring was lower than expected due to AI tools increasing productivity. Analysts commend Intuit’s solid quarter and inquire about expense management and hiring plans. Intuit remains confident in margin expansion outlook for the year. Clever marketing strategies launched early in the tax season. Intuit CEO, Sasan Goodarzi, expresses confidence in the assisted segment for tax season, citing benefits like quick service, immediate access to money, and competitive pricing. The company’s strong funnel and improved customer experience are driving momentum. Intuit is focusing on large accountant partners to expand its Enterprise Suite offering and increase sales force productivity by 60%. CFO Sandeep Aujla highlights the importance of industry and product specialization, as well as AI, in driving sales success. Intuit is optimistic about the next six weeks of the tax season. AI is driving sales efficiency and productivity improvements, giving sales teams the next best action and talk tracks to address customer needs. The online ecosystem has become a multi-billion dollar business unit for Intuit, with growth expected to continue between 15% to 20%. The mid-market segment, with a total addressable market of nearly 200 billion, is a key focus for Intuit’s growth, expected to surpass the entire business group in size. Intuit has confidence in the growth potential of the mid-market and aims to serve new entrants while expanding its platform offerings. The integration of Credit Karma and TurboTax is part of Intuit’s strategy to create a unified consumer platform. Intuit CEO Sasan Goodarzi discusses the company’s accelerated growth rate, with 60% attributed to execution. The integration with TurboTax is highlighted as a key factor in helping customers manage their money and taxes. The company expects its consumer platform to grow double digits, driven by partner confidence and AI experiences. CFO Sandeep Aujla mentions the challenge of more difficult comps for Credit Karma in the second half of the year. Analysts inquire about the company’s advertising efforts and the strength of the consumer group results, which exceeded expectations due to strong TurboTax Online performance and increased revenue per return. Intuit CEO discusses Q3 earnings call, highlighting 30% growth in online services business. Strength of platform, AI-driven experiences, and payroll contribute to growth potential. Mid-market customers show high attachment rates for payroll and payments. Mailchimp lapping pricing changes. CFO emphasizes engagement with customers across offerings, driving payment volume increase. Analysts inquire about early wins and customer feedback for Intuit Enterprise Suite, targeting $90 billion market. CEO notes momentum with existing customer base and accountant partners, displacing point solutions for integrated offering. Intuit’s CEO, Sasan Goodarzi, discusses the shift towards Intuit Enterprise Suite for cost and time savings. The focus is on existing customers and greenfield opportunities. AI-driven personalized experiences and strong traction with customers contribute to growth in the assisted segment. The company sees high product recommendation scores and uptick in small business usage of full service. Despite challenges with 1099 cases, Intuit remains optimistic about the rest of the tax season. Overall, Intuit is positioned for continued success in the market. 1. The stock market saw a significant drop today, with the Dow Jones Industrial Average falling by 500 points due to concerns over rising inflation rates and potential interest rate hikes by the Federal Reserve.

2. A new study published in a medical journal reports that the Pfizer-BioNTech COVID-19 vaccine is highly effective at preventing symptomatic infection and hospitalization, with an efficacy rate of 91% after six months.

3. The United Nations released a report stating that global greenhouse gas emissions reached a record high in 2021, with a 7.5% increase compared to pre-pandemic levels, highlighting the urgent need for countries to take action to address climate change.

4. The World Health Organization announced that a new variant of the COVID-19 virus, named Omicron, has been detected in multiple countries and may have mutations that could impact vaccine effectiveness, sparking concerns among health officials worldwide.



Read more at Nasdaq.: Intuit (INTU) Q2 2025 Earnings Call Transcript