Intuit Inc. (NASDAQ:INTU)

The financial data reveals a consistent upward trajectory in overall revenue and profitability over the six-year period under review.

Net Revenue

Net revenue showed a steady increase from $6,784 million in 2019 to $16,285 million in 2024, more than doubling over this period. The service segment contributed the larger share and exhibited rapid growth, rising from $5,161 million in 2019 to $13,861 million in 2024. The product and other segment grew at a slower but steady pace, increasing from $1,623 million to $2,424 million.

Cost Structure

The total cost of revenue also increased substantially, from $1,167 million in 2019 to $3,465 million in 2024. The cost associated with service revenue experienced the most significant increase, consistent with the growth in service sales. Costs related to product and other revenue remained relatively stable. Amortization of acquired technology spiked notably from 2020 to 2022 and then stabilized, reflecting likely acquisitions or capitalized technology expenses during that period.

Gross Profit

Gross profit more than doubled, moving from $5,617 million in 2019 to $12,820 million in 2024. This growth aligns with the revenue increases, while the gross margin has remained healthy given the proportional rise in costs, indicating effective cost management despite business expansion.

Operating Expenses

Operating expenses showed increasing trends across selling and marketing, research and development, and general and administrative categories. Selling and marketing expenses increased from $1,927 million in 2019 to $4,312 million in 2024, supporting revenue growth. Research and development spending also grew consistently, indicating ongoing investment in innovation, rising from $1,233 million to $2,754 million. General and administrative expenses rose but showed a slight moderation in recent years after a notable jump between 2020 and 2022. Amortization of other acquired intangible assets increased sharply in 2021 and remained elevated, affecting overall operating expenses negatively. A restructuring charge appeared in 2024, indicating organizational changes or cost-cutting measures.

Operating Income

Operating income improved steadily, increasing from $1,854 million in 2019 to $3,630 million in 2024. Despite rising expenses, the company's operational efficiency and revenue growth drove enhanced profitability at the operating level.

Interest and Income Taxes

Interest expense increased significantly, particularly after 2020, reaching $248 million in 2023, which may reflect increased borrowings or changes in debt structure. Concurrently, interest and other income showed positive growth, doubling from $42 million to $162 million by 2024, partially offsetting the interest costs. Income before taxes rose steadily in line with operating income. Income tax provision also increased but remained proportionate relative to income before taxes.

Net Income

Net income followed the upward trend of operating income and pre-tax income, growing from $1,557 million in 2019 to $2,963 million in 2024. The net income increase reflects the overall revenue expansion, effective cost management, and sustained profitability improvements, notwithstanding the rise in interest expenses and tax provisions.

Overall, the company demonstrated strong revenue growth driven primarily by the service segment, accompanied by increased costs that were managed effectively to yield higher gross profits and net income. The increase in operating expenses, particularly in marketing and R&D, indicates continued investment to support growth and innovation. The presence of amortization charges related to acquired technology and other intangibles suggests ongoing strategic acquisitions or asset capitalization. The restructuring expense recognized in 2024 may signal efforts to enhance operational efficiency. The rising interest expenses warrant monitoring in future periods to assess impacts on net profitability.