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Intuit Grows First-quarter Revenue 12 Percent; Reiterates Full-year Guidance

Intuit Inc. (Nasdaq: INTU) today announced financial results for its first fiscal quarter, which ended Oct. 31, and reiterated guidance for the full fiscal year 2013.

Unless otherwise noted, all growth rates refer to the first fiscal quarter versus the comparable prior-year quarter. Where applicable, business metrics and associated growth rates refer to worldwide business metrics.

First-quarter 2013 Highlights

  • Increased total revenue 12 percent, to $647 million.
  • Attracted online customers; Demandforce subscribers grew by more than 60 percent, while QuickBooks Online subscribers grew 29 percent.
  • Increased Small Business Group revenue 18 percent overall, including Payment Solutions revenue growth of 21 percent.
  • Grew QuickBooks Online to more than 20,000 paying customers outside the U.S., with free trials in over 150 countries.
  • Reiterated guidance for full fiscal year 2013, including revenue growth of 10 to 12 percent.
 

Snapshot of First-quarter Results

GAAP

  Non-GAAP
    Q1

FY13

  Q1

FY12

 

Change

  Q1

FY13

  Q1

FY12

 

Change

Revenue   $647   $575   12%   $647   $575   12%

Operating Loss

  ($69)   ($84)   NA   ($8)   ($20)   NA
EPS   ($0.06)   ($0.21)   NA   ($0.03)   ($0.08)   NA

Dollars are in millions, except earnings per share (EPS). See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with Generally Accepted Accounting Principles (GAAP). All figures in the table above have been reclassified to reflect Intuit Websites as discontinued operations and to exclude its results from non-GAAP EPS. GAAP EPS for the first quarter of fiscal 2013 includes a gain of $0.11 on the sale of Intuit Websites.

CEO Perspective

“We’re off to a strong start in fiscal year 2013. We grew first-quarter revenue 12 percent, and we’re reiterating our guidance of double-digit top-line and bottom-line growth for the full fiscal year,” said Brad Smith, Intuit’s president and chief executive officer. “While we’re not completely insulated from the challenges of the macro-environment, we have proven to be resilient, and we continue to execute against principles that guide us through tough times.”

“We also refreshed our connected services strategy to capitalize on structural shifts occurring in the market that will serve as growth catalysts. Our mobile products are contributing meaningful growth, with around half of our mobile customers new to the franchise, which is expanding our market reach and our category growth.

“Looking ahead, we’re building on a strong foundation while reimagining our products to capitalize on a rapidly changing environment. With big market opportunities in front of us, and the tailwind of technology adoption at our backs, we expect to deliver strong results for quarters and years to come,” Smith said.

Business Segment Results and Highlights

Total Small Business Group revenue grew 18 percent for the quarter, led by strength in Financial Management Solutions and Payment Solutions.

  • Financial Management Solutions revenue increased 20 percent for the quarter. Customer growth in Demandforce and QuickBooks Online continued to drive revenue growth.
  • Demandforce, acquired in May 2012, recorded over 60 percent growth in subscriptions, and QuickBooks Online subscribers grew 29 percent.
  • Employee Management Solutions revenue grew 12 percent, driven by 20 percent growth in online payroll subscribers.
  • Payment Solutions revenue grew 21 percent for the quarter. Card transaction volume grew 11 percent, driven by customer acquisition in Intuit’s GoPayment mobile payment solution.

Consumer Tax

  • Consumer Tax revenue declined to $36 million in a seasonally light quarter as customers filed fewer extended returns for the 2011 tax year compared with the year-ago quarter.
  • TurboTax desktop products for 2012 will go on sale in retail stores and be available for download on Nov. 23. TurboTax Online will be available Dec. 3.

Accounting Professionals

  • Accounting Professionals revenue grew 19 percent, to $32 million, in a seasonally light quarter. Recently enhanced QuickBooks Accountant offerings contributed to growth.

Financial Services

  • Financial Services revenue increased 4 percent for the quarter, led by higher revenue in online and mobile banking. Revenue increased 11 percent when adjusted for the March 2012 sale of the corporate banking business and the addition of Mint revenue.

Other Businesses

  • Other Businesses revenue was up 5 percent for the quarter.

Quarterly Dividend

Intuit paid a quarterly cash dividend of $0.17 per share, totaling $50 million during the first quarter of fiscal 2013. Intuit’s board of directors approved a new quarterly cash dividend of $0.17 per share to be paid on Jan. 18, 2013, to shareholders of record as of the close of business on Jan. 10, 2013.

Stock Repurchase Program

Intuit repurchased $100 million of its common stock during the first quarter of fiscal 2013. At the end of the quarter the current authorization had $1.6 billion remaining for stock repurchases through August 2014.

CFO Perspective

“We delivered a strong financial performance this quarter, with small business reporting customer growth in payments, QuickBooks Online and Demandforce. Our cloud-based subscriptions are really leading the way,” said Neil Williams, Intuit’s chief financial officer. “All of our Small Business segments delivered double-digit growth, even with our own and external indicators pointing to slow growth in the sector.”

“As we’ve said, the tables are set for late tax legislation, which could impact the availability of tax forms and push Consumer Tax and Accounting Professionals revenue from our second fiscal quarter to our third quarter. We’ve assumed the impact is $50 million to $75 million in revenue and $0.10 to $0.15 in earnings per share. To provide additional transparency into our expected results, we are providing revenue and earnings per share guidance ranges for the third and fourth quarters,” said Williams.

Forward-looking Guidance

Intuit reiterated guidance for full fiscal year 2013, which ends July 31, and expects:

  • Revenue of $4.55 billion to $4.65 billion, growth of 10 to 12 percent.
  • GAAP operating income of $1.315 billion to $1.345 billion, growth of 12 to 14 percent.
  • Non-GAAP operating income of $1.57 billion to $1.60 billion, growth of 12 to 14 percent.
  • GAAP diluted EPS of $2.76 to $2.82, growth of 6 to 8 percent.
  • Non-GAAP diluted EPS of $3.32 to $3.38, growth of 12 to 14 percent.

For the second quarter of fiscal 2013, Intuit expects:

  • Revenue of $1.02 billion to $1.04 billion.
  • GAAP operating income of $130 million to $150 million.
  • Non-GAAP operating income of $190 million to $210 million.
  • GAAP diluted earnings per share of $0.27 to $0.30.
  • Non-GAAP diluted EPS of $0.40 to $0.43.

Intuit also provided revenue and earnings per share guidance ranges for the second half of the fiscal year to provide additional transparency into expected results.

For the third quarter of fiscal 2013, Intuit expects:

  • Revenue of $2.155 billion to $2.215 billion.
  • GAAP diluted EPS of $2.65 to $2.70.
  • Non-GAAP diluted EPS of $2.78 to $2.83.

For the fourth quarter of fiscal 2013, Intuit expects:

  • Revenue of $728 million to $748 million.
  • GAAP loss per share of $0.01 to GAAP diluted EPS of $0.01.
  • Non-GAAP diluted EPS of $0.12 to $0.14.

Conference Call Information

Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time on Nov. 15. To hear the call, dial 866-854-3163 in the United States or 973-935-8679 from international locations. No reservation or access code is needed. The conference call can also be heard live via webcast at http://investors.intuit.com/events.cfm. Prepared remarks for the call will be available on Intuit’s website after the call ends.

Replay Information

A replay of the conference call will also be available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The access code for this call is 1594316. The audio webcast will remain available on Intuit’s website for one week after the conference call.

About Intuit Inc.

Intuit Inc. is a leading provider of innovative business and financial management solutions for small businesses, consumers, accounting professionals and financial institutions. Its flagship products and services that include QuickBooks®, TurboTax® and Quicken® help customers solve important business and financial management problems, such as running a small business, paying bills, filing income taxes, or managing personal finances. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services provides digital banking solutions to banks and credit unions that help them make it easier for their customers to manage money and pay bills.

Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year 2012. The company has approximately 8,500 employees with major offices in the United States, Canada, the United Kingdom, India, Singapore and other locations. More information can be found at www.intuit.com.

Intuit and the Intuit logo, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled "About Non-GAAP Financial Measures" as well as the related Table B and Table E. A copy of the press release issued by Intuit today can be found on the investor relations page of Intuit's Web site.

Cautions About Forward-looking Statements

This press release contains forward-looking statements, including forecasts of Intuit’s future expected financial results; expectations regarding growth from connected services and from current or future products and services; expectations regarding the amount and timing of any future dividends and share repurchases; its prospects for the business in fiscal 2013; and all of the statements under the heading “Forward-looking Guidance.”

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, without limitation, the following: inherent difficulty in predicting consumer behavior; difficulties in receiving, processing, or filing customer tax submissions; consumers may not respond as we expected to our advertising and promotional activities; product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities or public policy affecting the preparation and filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully innovate and introduce new offerings and business models to meet our growth and profitability objectives, and current and future offerings may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; 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; as we upgrade and consolidate our customer facing applications and supporting information technology infrastructure, any problems with these implementations could interfere with our ability to deliver our offerings; any failure to properly use and protect personal customer information and data could harm our revenue, earnings and reputation; if we are unable to develop, manage and maintain critical third party business relationships, our business may be adversely affected; increased government regulation of our businesses may harm our operating results; if we fail to process transactions effectively or fail to adequately protect against potential fraudulent activities, our revenue and earnings may be harmed; any significant offering quality problems or delays in our offerings could harm our revenue, earnings and reputation; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; the continuing global economic downturn may continue to impact consumer and small business spending, financial institutions and tax filings, which could negatively affect our revenue and profitability; year-over-year changes in the total number of tax filings that are submitted to government agencies due to economic conditions or otherwise may result in lost revenue opportunities; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares to grow; our inability to adequately protect our intellectual property rights may weaken our competitive position and reduce our revenue and earnings; 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; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operation; and litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2012 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. Forward-looking statements are based on information as of November 15, 2012, and we do not undertake any duty to update any forward-looking statement or other information in these materials.

 

TABLE A

INTUIT INC.

GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)

 

Three Months Ended

October 31,
2012

     

October 31,
2011

Net revenue:
Product $ 227 $ 222
Service and other 420   353  
Total net revenue 647   575  
Costs and expenses:
Cost of revenue:
Cost of product revenue 32 32
Cost of service and other revenue 145 132
Amortization of acquired technology 5 3
Selling and marketing 251 216
Research and development 178 163
General and administrative 98 92
Amortization of other acquired intangible assets 7   21  
Total costs and expenses [A] 716   659  
Operating loss from continuing operations (69 ) (84 )
Interest expense (8 ) (15 )
Interest and other income, net 2   11  
Loss before income taxes (75 ) (88 )
Income tax benefit [B] (24 ) (30 )
Net loss from continuing operations (51 ) (58 )
Net income (loss) from discontinued operations [C] 32   (6 )
Net loss $ (19 ) $ (64 )
 
Basic net loss per share from continuing operations $ (0.17 ) $ (0.19 )
Basic net income (loss) per share from discontinued operations 0.11   (0.02 )
Basic net loss per share $ (0.06 ) $ (0.21 )
Shares used in basic per share calculations 296   300  
 
Diluted net loss per share from continuing operations $ (0.17 ) $ (0.19 )
Diluted net income (loss) per share from discontinued operations 0.11   (0.02 )
Diluted net loss per share $ (0.06 ) $ (0.21 )
Shares used in diluted per share calculations 296   300  
 
Dividends declared per common share $ 0.17   $ 0.15  
 

See accompanying Notes.

 

INTUIT INC.

NOTES TO TABLE A

 

[A] The following table summarizes the total share-based compensation expense that we recorded for the periods shown.

 
Three Months Ended
(in millions) October 31, 2012     October 31, 2011
Cost of revenue $ 2 $ 1
Selling and marketing

 

18

14
Research and development

 

14

12
General and administrative

 

15

  13
Total share-based compensation expense $ 49   $ 40
 

[B] We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period. Our effective tax benefit rate for the three months ended October 31, 2012 was approximately 32%. Excluding the impact of discrete tax items primarily related to share based compensation, our effective tax benefit rate for the three months ended October 31, 2012 was approximately 35% and did not differ significantly from the federal statutory rate of 35%. Our effective tax benefit rate for the three months ended October 31, 2011 was approximately 35% and did not differ significantly from the federal statutory rate of 35%.

[C] On September 17, 2012 we sold our Intuit Websites business, which was a component of our Financial Management Solutions reporting segment, for approximately $60 million in cash and recorded a gain on disposal of approximately $32 million, net of income taxes.

We determined that Intuit Websites became discontinued operations in the fourth quarter of fiscal 2012. We have therefore segregated the operating results of Intuit Websites from continuing operations in our statements of operations for all periods prior to the sale. Net revenue from Intuit Websites was $9 million for the three months ended October 31, 2012 and $19 million for the three months ended October 31, 2011.

Net assets held for sale at July 31, 2012 consisted primarily of operating assets and liabilities that were not material, so we have not segregated them on our balance sheets. Because operating cash flows from the Intuit Websites business were also not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

           

TABLE B

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In millions, except per share amounts)

(Unaudited)

 

Three Months Ended

October 31, 2012       October 31, 2011
GAAP operating loss from continuing operations $ (69 ) $ (84 )
Amortization of acquired technology 5 3
Amortization of other acquired intangible assets 7 21
Share-based compensation expense 49   40  
Non-GAAP operating loss from continuing operations $ (8 ) $ (20 )
 
GAAP net loss $ (19 ) $ (64 )
Amortization of acquired technology 5 3
Amortization of other acquired intangible assets 7 21
Share-based compensation expense 49 40
Net gains on debt securities and other investments (11 )
Income tax effect of non-GAAP adjustments (19 ) (18 )
Net income (loss) from discontinued operations (32 ) 6  
Non-GAAP net loss $ (9 ) $ (23 )
 
GAAP diluted net loss per share $ (0.06 ) $ (0.21 )
Amortization of acquired technology 0.02 0.01
Amortization of other acquired intangible assets 0.02 0.07
Share-based compensation expense 0.17 0.13
Net gains on debt securities and other investments (0.04 )
Income tax effect of non-GAAP adjustments (0.07 ) (0.06 )
Net income (loss) from discontinued operations (0.11 ) 0.02  
Non-GAAP diluted net loss per share $ (0.03 ) $ (0.08 )
 
Shares used in diluted per share calculation 296   300  
 

See “About Non-GAAP Financial Measures” immediately following Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

   

TABLE C

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

October 31, 2012

July 31, 2012

ASSETS
Current assets:
Cash and cash equivalents $ 216 $ 393
Investments 342 351
Accounts receivable, net 184 183
Income taxes receivable 165 53
Deferred income taxes 133 184
Prepaid expenses and other current assets 85   69
Current assets before funds held for customers 1,125 1,233
Funds held for customers 209   290
Total current assets 1,334 1,523
 
Long-term investments 75 75
Property and equipment, net 595 567
Goodwill 2,191 2,200
Acquired intangible assets, net 201 213
Other assets 98   106
Total assets $ 4,494   $ 4,684
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 167 $ 157
Accrued compensation and related liabilities 135 231
Deferred revenue 421 443
Other current liabilities 142   144
Current liabilities before customer fund deposits 865 975
Customer fund deposits 209   290
Total current liabilities 1,074 1,265
 
Long-term debt 499 499
Other long-term obligations 176   176
Total liabilities 1,749   1,940
 
Stockholders’ equity 2,745   2,744
Total liabilities and stockholders’ equity $ 4,494   $ 4,684
 
           

TABLE D

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

Three Months Ended

October 31, 2012       October 31, 2011
Cash flows from operating activities:
Net loss $ (19 ) $ (64 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 40 44
Amortization of acquired intangible assets 14 28
Share-based compensation expense 49 40
Pre-tax gain on sale of discontinued operations (53 )
Deferred income taxes 53 (5 )
Tax benefit from share-based compensation plans 44 30
Excess tax benefit from share-based compensation plans (44 ) (29 )
Other 4   (6 )
Total adjustments 107   102  
Changes in operating assets and liabilities:
Accounts receivable (1 ) 5
Prepaid expenses, income taxes receivable and other assets (128 ) (78 )
Accounts payable 12 39
Accrued compensation and related liabilities (96 ) (74 )
Deferred revenue (16 ) (25 )
Income taxes payable 1
Other liabilities (4 ) (16 )
Total changes in operating assets and liabilities (233 ) (148 )
Net cash used in operating activities (145 ) (110 )
Cash flows from investing activities:
Purchases of available-for-sale debt securities (87 ) (197 )
Sales of available-for-sale debt securities 81 136
Maturities of available-for-sale debt securities 21 41
Net change in money market funds and other cash equivalents held to satisfy customer fund obligations 81 93
Net change in customer fund deposits (81 ) (93 )
Purchases of property and equipment (70 ) (44 )
Proceeds from divestiture of businesses 60
Other (5 ) 14  
Net cash provided by (used in) investing activities   (50 )
Cash flows from financing activities:
Net proceeds from issuance of treasury stock under employee stock plans 73 45
Purchases of treasury stock (100 ) (255 )
Cash dividends paid to stockholders (50 ) (45 )
Excess tax benefit from share-based compensation plans 44   29  
Net cash used in financing activities (33 ) (226 )
Effect of exchange rates on cash and cash equivalents 1   (3 )
Net decrease in cash and cash equivalents (177 ) (389 )
Cash and cash equivalents at beginning of period 393   722  
Cash and cash equivalents at end of period $ 216   $ 333  
 

TABLE E

INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME (LOSS), AND EPS
(In millions, except per share amounts)
(Unaudited)
 

Forward-Looking Guidance

GAAP

Range of Estimate

      Non-GAAP

Range of Estimate

From   To Adjmts From   To
Three Months Ending January 31, 2013
Revenue $ 1,020 $ 1,040 $ $ 1,020 $ 1,040
Operating income $ 130 $ 150 $ 60 [a] $ 190 $ 210
Diluted earnings per share $ 0.27 $ 0.30 $ 0.13 [b] $ 0.40 $ 0.43
 
Three Months Ending April 30, 2013
Revenue $ 2,155 $ 2,215 $ $ 2,155 $ 2,215
Diluted earnings per share $ 2.65 $ 2.70 $ 0.13 [c] $ 2.78 $ 2.83
 
Three Months Ending July 31, 2013
Revenue $ 728 $ 748 $ $ 728 $ 748
Diluted earnings per share $ (0.01 ) $ 0.01 $ 0.13 [d] $ 0.12 $ 0.14
 
Twelve Months Ending July 31, 2013
Revenue $ 4,550 $ 4,650 $ $ 4,550 $ 4,650
Operating income $ 1,315 $ 1,345 $ 255 [e] $ 1,570 $ 1,600
Diluted earnings per share $ 2.76 $ 2.82 $ 0.56 [f] $ 3.32 $ 3.38

See “About Non-GAAP Financial Measures” immediately following this Table E for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

[a] Reflects estimated adjustments for share-based compensation expense of approximately $47 million; amortization of acquired technology of approximately $5 million; and amortization of other acquired intangible assets of approximately $8 million.

[b] Reflects the estimated adjustments in item [a] and income taxes related to these adjustments.

[c] Reflects estimated adjustments for share-based compensation expense of approximately $56 million; amortization of acquired technology of approximately $5 million; amortization of other acquired intangible assets of approximately $7 million; and income taxes related to these adjustments.

[d] Reflects estimated adjustments for share-based compensation expense of approximately $56 million; amortization of acquired technology of approximately $5 million; amortization of other acquired intangible assets of approximately $5 million; and income taxes related to these adjustments.

[e] Reflects estimated adjustments for share-based compensation expense of approximately $208 million; amortization of acquired technology of approximately $20 million; and amortization of other acquired intangible assets of approximately $27 million.

[f] Reflects the estimated adjustments in item [e] and income taxes related to these adjustments.

INTUIT INC.
ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press release dated November 15, 2012 contains non-GAAP financial measures. Table B and Table E reconcile the non-GAAP financial measures in that press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP net income (loss) per share.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

We exclude the following items from all of our non-GAAP financial measures:

  • Share-based compensation expense
  • Amortization of acquired technology
  • Amortization of other acquired intangible assets
  • Goodwill and intangible asset impairment charges
  • Professional fees for business combinations

We also exclude the following items from non-GAAP net income (loss) and diluted net income (loss) per share:

  • Gains and losses on debt securities and other investments
  • Income tax effects of excluded items and discrete tax items
  • Discontinued operations

We believe that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s operating results primarily because they exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization, our individual operating segments or our senior management. Segment managers are not held accountable for share-based compensation expense, amortization, or the other excluded items and, accordingly, we exclude these amounts from our measures of segment performance. We believe that our non-GAAP financial measures also facilitate the comparison by management and investors of results for current periods and guidance for future periods with results for past periods.

The following are descriptions of the items we exclude from our non-GAAP financial measures.

Share-based compensation expenses. These consist of non-cash expenses for stock options, restricted stock units and our Employee Stock Purchase Plan. When considering the impact of equity awards, we place greater emphasis on overall shareholder dilution rather than the accounting charges associated with those awards.

Amortization of acquired technology and amortization of other acquired intangible assets. When we acquire an entity, we are required by GAAP to record the fair values of the intangible assets of the entity and amortize them over their useful lives. Amortization of acquired technology in cost of revenue includes amortization of software and other technology assets of acquired entities. Amortization of other acquired intangible assets in operating expenses includes amortization of assets such as customer lists, covenants not to compete and trade names.

Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial measures non-cash charges to adjust the carrying values of goodwill and other acquired intangible assets to their estimated fair values.

Professional fees for business combinations. We exclude from our non-GAAP financial measures the professional fees we incur to complete business combinations. These include investment banking, legal and accounting fees.

Gains and losses on debt securities and other investments. We exclude from our non-GAAP financial measures gains and losses that we record when we sell or impair available-for-sale debt securities and other investments.

Income tax effects of excluded items and certain discrete tax items. We exclude from our non-GAAP financial measures the income tax effects of the items described above, as well as income tax effects related to business combinations. In addition, the effects of one-time income tax adjustments recorded in a specific quarter for GAAP purposes are reflected on a forecasted basis in our non-GAAP financial measures. This is consistent with how we plan, forecast and evaluate our operating results.

Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures.

The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in Table E include all information reasonably available to Intuit at the date of this press release. These tables include adjustments that we can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments, and sales of available-for-sale debt securities and other investments.

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Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...