Intuit, Inc. is a financial management and compliance platform company, which engages in the provision of business and financial management solutions. It operates through the following segments: Small Business and Self-Employed; Consumer; and Strategic Partner. The Small Business and Self-Employed segment offers QuickBooks financial and business management online services and desktop software, payroll solutions, payment processing solutions, and financing for small businesses. The Consumer segment includes do-it-yourself and assisted TurboTax income tax preparation products and services. The Strategic Partner segment comprises professional tax offerings, which include Lacerte, ProSeries, ProFile, and ProConnect Tax Online among professional accountants. The company was founded by Scott D. Cook and Thomas A. Proulx in March 1983 and is headquartered in Mountain View, CA.
We face intense competitive pressures that may harm our operating results.
Future revenue growth depends upon our ability to adapt to technological change as well as global trends in the way customers access software offerings and successfully introduce new and enhanced products, services and business models.
We rely on third-party intellectual property in our products and services.
Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services, and brand.
Our business depends on our strong reputation and the value of our brands.
Our acquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of the transactions.
Security incidents, improper access to or disclosure of our data or customers’ data, or other cyberattacks on our systems could harm our reputation and adversely affect our business.
A cybersecurity incident affecting the third parties we rely on could expose us or our customers to a risk of loss or misuse of confidential information and significantly damage our reputation.
Concerns about the current privacy and cybersecurity environment, generally, could deter current and potential customers from adopting our products and services and damage our reputation.
If we are unable to effectively combat the increasing amount and sophistication of fraudulent activities by third parties using our offerings, we may suffer losses, which may be substantial, and lose the confidence of our customers and government agencies and our revenues and earnings may be harmed.
If we fail to process transactions effectively or fail to adequately protect against disputed or potential fraudulent activities, our business may be harmed.
Business interruption or failure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation and harm our future financial results.
We regularly invest resources to update and improve our internal information technology systems and software platforms. Should our investments not succeed, or if delays or other issues with new or existing internal technology systems and software platforms disrupt our operations, our business could be harmed.
If we are unable to develop, manage and maintain critical third-party business relationships, our business may be adversely affected.
Because competition for our key employees is intense, we may not be able to attract, retain and develop the highly skilled employees we need to support our planned growth.
If we experience significant product accuracy or quality problems or delays in product launches, it may harm our revenue, earnings and reputation.
Our international operations are subject to increased risks which may harm our business, operating results, and financial condition.
Increased government regulation of our businesses, or changes to existing regulations, may harm our operating results.
Complex and evolving U.S. and international laws and regulation regarding privacy and data protection could result in claims, changes to our business practices, penalties, increased cost of operations or otherwise harm our business.
We are frequently a party to litigation and regulatory inquiries which could result in an unfavorable outcome and have an adverse effect on our business, financial condition, results of operation and cash flows.
Third parties claiming that we infringe their proprietary rights may cause us to incur significant legal expenses and prevent us from selling our products.
We are subject to risks associated with information disseminated through our services.
Our tax business is highly seasonal and our quarterly results could fluctuate significantly.
If actual customer refunds for our offerings exceed the amount we have reserved our future financial results may be harmed.
Unanticipated changes in our income tax rates or other indirect tax may affect our future financial results.
Adverse global economic conditions could harm our business and financial condition.
We provide capital to small businesses, which exposes us to certain risk, and may cause us material financial or reputational harm.
Amortization of acquired intangible assets and impairment charges may cause significant fluctuation in our net income.
We have incurred indebtedness and may incur other debt in the future, which may adversely affect our financial condition and future financial results.
We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value.
Our stock price may be volatile and your investment could lose value.
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to provide readers of our consolidated financial statements with the perspectives of management. This should allow the readers of this report to obtain a comprehensive understanding of our businesses, strategies, current trends, and future prospects. Our MD&A includes the following sections:
You should note that this MD&A contains forward-looking statements that involve risks and uncertainties. Please see the section entitled “Forward-Looking Statements” immediately preceding Part I for important information to consider when evaluating such statements.
You should read this MD&A in conjunction with the financial statements and related notes in Item 8 of this Annual Report.