INTUIT INC.

INTUIT INC. Annual Report - Plain English Investor Summary
Your friend’s take over coffee…

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1. What Does Intuit Do, and How Was Their Year?

Intuit makes financial software you’ve probably used: TurboTax (taxes), QuickBooks (accounting), and Credit Karma (credit scores). This year was steady growth with smart upgrades—like a reliable car hitting its stride. Their small business tools shined, and AI became a bigger focus (think chatbots that fix bookkeeping errors).

Key Upgrade: QuickBooks Online now acts like a financial Swiss Army knife for businesses, handling everything from invoicing to long-term planning.

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2. Show Me the Money: Growth or Decline?

Revenue: $14.4 billion (up 12% from last year).
Profit: $2.4 billion (up 21%—they’re keeping more of what they earn).
What’s Working:

• QuickBooks and Credit Karma drove most growth (like a bakery selling more cakes).
• TurboTax revenue grew just 3%—people grumble about pricing, and free tax options are emerging.

Spending Alert: Expenses hit $8.7 billion (up 9%), mostly on tech upgrades and customer support.

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3. Wins vs. Challenges

Wins:

• AI features rolled out (e.g., mistake-fixing chatbots).
• 18% growth in small business users (they pay monthly—cha-ching!).
• TurboTax users adopted Credit Karma; QuickBooks users tried Mailchimp.

Challenges:

• TurboTax slowdown: Rising competition from free tax filing.
• Credit Karma loans: Demand dropped as interest rates climbed.

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4. Financial Health Check

Strengths:

• $4 billion in cash (enough to weather storms).
• Low debt (like a manageable mortgage).
• Spent $2 billion buying back shares (supports stock price).

Weakness:

• Costs for tech (+9%) and marketing outpaced revenue growth.

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5. Risks to the Stock

• Free tax filing: If the IRS expands its free program, TurboTax could bleed users.
• Recession: Small businesses might cut software spending.
• AI backlash: Glitchy tools could frustrate customers.

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6. Competitor Check

• TurboTax still leads taxes but faces heat from H&R Block and free options.
• QuickBooks outpaces FreshBooks/Xero with better AI and integrations.
• Credit Karma holds its own against Experian/NerdWallet (free + ecosystem perks).

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7. Leadership & Strategy

CEO Sasan Goodarzi is betting big on AI and small businesses. Sold off non-core units to focus on top earners.

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8. What’s Next?

• More AI automation (e.g., tax error detection, expense tracking).
• Likely price hikes for premium features—could boost profits but risk losing budget users.

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Bottom Line for Investors

👍 Strengths:

• Reliable growth in small business tools (recurring revenue!).
• Strong cash position and smart AI investments.
• Dominant market position in key products.

👎 Weaknesses:

• TurboTax faces existential threats from free alternatives.
• Rising costs could squeeze profits if growth slows.

Should You Invest?

• Long-term investors: Intuit looks stable with its small business focus and cash reserves.
• Cautious investors: Watch TurboTax trends and AI execution closely.

If the economy holds and AI delivers, Intuit could keep baking wins. But stay alert—tax law changes or a recession could burn the pie. ☕

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Questions? I’m happy to chat specifics—just refill my mug!