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

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

 Small Business Group Revenue Up 18 Percent, Driven By Demandforce and Strong
                          Growth in Online Customers

Business Wire

MOUNTAIN VIEW, Calif. -- November 15, 2012

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        Q1                 Q1        Q1
                                 Change                    Change
                 FY13      FY12               FY13      FY12
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,    October 31,
                                                 2012              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   32               (6        )
[C]
Net loss                                         $  (19    )       $  (64    )
                                                                   
Basic net loss per share from continuing         $  (0.17  )       $  (0.19  )
operations
Basic net income (loss) per share from           0.11             (0.02     )
discontinued operations
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       $  (0.17  )       $  (0.19  )
operations
Diluted net income (loss) per share from         0.11             (0.02     )
discontinued operations
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            $       49                       $       40
compensation expense
                                                                       

[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
October31, 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 October31, 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 October31, 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 October31, 2012 and $19 million for
the three months ended October31, 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    $   (69        )       $    (84     )
operations
Amortization of acquired technology    5                      3
Amortization of other acquired         7                      21
intangible assets
Share-based compensation expense       49                    40           
Non-GAAP operating loss from           $   (8         )       $    (20     )
continuing operations
                                                              
GAAP net loss                          $   (19        )       $    (64     )
Amortization of acquired technology    5                      3
Amortization of other acquired         7                      21
intangible assets
Share-based compensation expense       49                     40
Net gains on debt securities and other —                      (11          )
investments
Income tax effect of non-GAAP          (19            )       (18          )
adjustments
Net income (loss) from discontinued    (32            )       6            
operations
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         0.02                   0.07
intangible assets
Share-based compensation expense       0.17                   0.13
Net gains on debt securities and other —                      (0.04        )
investments
Income tax effect of non-GAAP          (0.07          )       (0.06        )
adjustments
Net income (loss) from discontinued    (0.11          )       0.02         
operations
Non-GAAP diluted net loss per share    $   (0.03      )       $    (0.08   )
                                                              
Shares used in diluted per share       296                   300          
calculation
                                                                           

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        1,125                1,233
customers
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            135                  231
liabilities
Deferred revenue                            421                  443
Other current liabilities                   142                 144
Current liabilities before customer fund    865                  975
deposits
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    14                     28
assets
Share-based compensation expense       49                     40
Pre-tax gain on sale of discontinued   (53            )       —
operations
Deferred income taxes                  53                     (5          )
Tax benefit from share-based           44                     30
compensation plans
Excess tax benefit from share-based    (44            )       (29         )
compensation plans
Other                                  4                     (6          )
Total adjustments                      107                   102         
Changes in operating assets and
liabilities:
Accounts receivable                    (1             )       5
Prepaid expenses, income taxes         (128           )       (78         )
receivable and other assets
Accounts payable                       12                     39
Accrued compensation and related       (96            )       (74         )
liabilities
Deferred revenue                       (16            )       (25         )
Income taxes payable                   —                      1
Other liabilities                      (4             )       (16         )
Total changes in operating assets and  (233           )       (148        )
liabilities
Net cash used in operating activities  (145           )       (110        )
Cash flows from investing activities:
Purchases of available-for-sale debt   (87            )       (197        )
securities
Sales of available-for-sale debt       81                     136
securities
Maturities of available-for-sale debt  21                     41
securities
Net change in money market funds and
other cash equivalents held to satisfy 81                     93
customer fund obligations
Net change in customer fund deposits   (81            )       (93         )
Purchases of property and equipment    (70            )       (44         )
Proceeds from divestiture of           60                     —
businesses
Other                                  (5             )       14          
Net cash provided by (used in)         —                     (50         )
investing activities
Cash flows from financing activities:
Net proceeds from issuance of treasury 73                     45
stock under employee stock plans
Purchases of treasury stock            (100           )       (255        )
Cash dividends paid to stockholders    (50            )       (45         )
Excess tax benefit from share-based    44                    29          
compensation plans
Net cash used in financing activities  (33            )       (226        )
Effect of exchange rates on cash and   1                     (3          )
cash equivalents
Net decrease in cash and cash          (177           )       (389        )
equivalents
Cash and cash equivalents at beginning 393                   722         
of period
Cash and cash equivalents at end of    $    216              $    333    
period
                                                                          

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                                   Non-GAAP
                                                        
                     Range of Estimate                      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     $ 0.27      $ 0.30     $ 0.13    [b]   $ 0.40     $ 0.43
per share
                                                                       
Three Months
Ending April 30,
2013
Revenue              $ 2,155     $ 2,215    $ —             $ 2,155    $ 2,215
Diluted earnings     $ 2.65      $ 2.70     $ 0.13    [c]   $ 2.78     $ 2.83
per share
                                                                       
Three Months
Ending July 31,
2013
Revenue              $ 728       $ 748      $ —             $ 728      $ 748
Diluted earnings     $ (0.01 )   $ 0.01     $ 0.13    [d]   $ 0.12     $ 0.14
per share
                                                                       
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     $ 2.76      $ 2.82     $ 0.56    [f]   $ 3.32     $ 3.38
per share

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 November15, 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.

Contact:

Investors
Intuit Inc.
Matt Rhodes, 650-944-2536
matthew_rhodes@intuit.com
or
Media
Intuit Inc.
Diane Carlini, 650-944-6251
diane_carlini@intuit.com
 
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