Stock Analysis on Net
Stock Analysis on Net

Intuit Inc. (NASDAQ:INTU)

Common-Size Income Statement 

Intuit Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020 Jul 31, 2019
Service 85.12 85.73 85.76 82.37 78.71 76.08
Product and other 14.88 14.27 14.24 17.63 21.29 23.92
Net revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of service revenue -19.96 -20.24 -17.26 -16.24 -16.72 -15.77
Cost of product and other revenue -0.42 -0.50 -0.55 -0.72 -0.94 -1.14
Amortization of acquired technology -0.90 -1.13 -1.10 -0.52 -0.29 -0.29
Cost of revenue -21.28% -21.88% -18.91% -17.47% -17.95% -17.20%
Gross profit 78.72% 78.13% 81.09% 82.53% 82.05% 82.80%
Selling and marketing -26.48 -26.18 -27.71 -27.45 -26.67 -28.41
Research and development -16.91 -17.67 -18.44 -17.42 -18.13 -18.18
General and administrative -8.71 -9.05 -11.47 -10.19 -8.84 -8.80
Amortization of other acquired intangible assets -2.97 -3.36 -3.27 -1.52 -0.08 -0.09
Restructuring -1.37 0.00 0.00 0.00 0.00 0.00
Operating income 22.29% 21.86% 20.20% 25.95% 28.34% 27.33%
Interest expense -1.49 -1.73 -0.64 -0.30 -0.18 -0.22
Interest and other income, net 0.99 0.67 0.41 0.88 0.47 0.62
Income before income taxes 21.80% 20.80% 19.97% 26.53% 28.62% 27.73%
Income tax provision -3.60 -4.21 -3.74 -5.13 -4.84 -4.78
Net income 18.19% 16.59% 16.23% 21.41% 23.78% 22.95%

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

Revenue Composition
The proportion of revenue derived from services has shown a consistent upward trend, increasing from 76.08% in 2019 to a peak near 85.76% in 2022, before slightly declining to 85.12% by 2024. Conversely, the product and other revenue category has experienced a steady decline in its share, dropping from 23.92% in 2019 to around 14.88% in 2024. This indicates a strategic shift or stronger performance in service-related offerings over the years.
Cost of Revenue
The cost of service revenue as a percentage of net revenue gradually increased from -15.77% in 2019 to a high of -20.24% in 2023, followed by a slight decrease to -19.96% in 2024. Meanwhile, the cost related to product and other revenue diminished, reflecting reduced product revenue and possibly improved cost control, moving from -1.14% in 2019 down to -0.42% in 2024. The amortization of acquired technology increased notably between 2019 and 2022 but partially receded by 2024. Overall, total cost of revenue grew from -17.2% to around -21.28% by 2024, resulting in a decline in gross profit margin.
Profitability Margins
Gross profit margin has declined from 82.8% in 2019 to 78.72% in 2024, reflecting higher costs associated with revenue generation. Operating income as a percentage of net revenue peaked at 28.34% in 2020 but fell sharply to 20.2% in 2022 before modestly recovering to 22.29% in 2024. This fluctuation points to increasing operational expenses and possibly investments in growth areas.
Operating Expenses
Selling and marketing expenses exhibited a slight downward trend from -28.41% to about -26.48%, indicating some efficiency improvements. Research and development costs remained relatively stable, fluctuating narrowly around -18%. General and administrative expenses increased notably from -8.8% in 2019 to 11.47% in 2022, before declining again to 8.71% in 2024. The amortization of other acquired intangible assets saw a distinct rise between 2020 and 2022, peaking at -3.36%, then slightly decreasing by 2024. Restructuring costs appeared only in 2024 at -1.37%, suggesting recent organizational changes.
Financial Income and Expense
Interest expense grew from a minimal -0.22% in 2019 to a peak of -1.73% in 2023, subsequently reducing to -1.49% in 2024, indicating increased borrowing or financing costs with some recent alleviation. Interest and other income showed variability but trended upward overall from 0.62% to 0.99%, contributing modestly to income.
Income and Taxation
Income before income taxes declined from 27.73% in 2019 to 19.97% in 2022, followed by a partial recovery to 21.8% in 2024. The income tax provision as a percentage of net revenue fluctuated between -5.13% and -3.6%, generally trending downward, which may indicate improved tax efficiency. Net income followed a similar pattern to income before taxes, dropping from 22.95% in 2019 to a low of 16.23% in 2022, then increasing to 18.19% by 2024, suggesting some recovery in profitability.