Intuit's Second-Quarter Revenue Grows 5 Percent

Intuit's Second-Quarter Revenue Grows 5 Percent

    Business Editors/High-Tech Editors

    MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 17, 2005--Intuit Inc. (Nasdaq:INTU) today announced its second-quarter 2005 revenue increased 5 percent over the year-ago quarter to $662.6 million. Intuit's revenue and profits were higher than the company forecasted three months ago due to stronger-than-expected results in its QuickBooks-Related and Consumer Tax segments.
    "This was a strong quarter for Intuit, especially given that our tax revenue is increasingly shifting to our third quarter," said Steve Bennett, Intuit's president and chief executive officer. "While it's too early to declare victory on the entire season, we're pleased with our results in tax. We also had a strong quarter in QuickBooks, with a 38 percent surge in unit growth, including subscriptions."

    Second-Quarter 2005 Financial Highlights

--	GAAP (Generally Accepted Accounting Principles) net income was $147.3 million versus $149.1 million in the year-ago quarter. This represents $0.77 per diluted share, up 5 percent from $0.73 in the 2004 second quarter.
--	Intuit had pro forma net income of $155.1 million versus $156.0 million in the year-earlier period. Pro forma earnings per diluted share were $0.82 versus $0.77, up 6 percent from the year-earlier period.

    Second-Quarter 2005 Business Portfolio and Segment Results

    -- Consumer Tax revenue was $141.1 million, up 9 percent from the
    year-ago quarter.

    -- Professional Tax revenue was $150.6 million, down 4 percent,
    as expected, over the year-ago quarter.

    -- QuickBooks-Related revenue was $222.3 million, up 10 percent
    over the year-ago quarter.

    -- Intuit-Branded Small Business revenue was $75.1 million, up 10
    percent over the year-ago quarter.

    -- Other Businesses revenue was $73.5 million, down 4 percent, as
    expected. This segment includes Quicken and Canada.

    Forward-Looking Guidance for Fiscal 2005

    Intuit raised its fiscal 2005 revenue guidance to reflect the strength of results in the first half of the year. Guidance for fiscal 2005 is:

    -- Revenue of $2.000 billion to $2.025 billion, or year-over-year
    growth of approximately 8 percent to 9 percent. Prior guidance
    was for revenue growth in the 6 percent to 9 percent range, or
    revenue of $1.966 billion to $2.022 billion.

    -- Pro forma operating income of $535 million to $559 million, or
    growth of approximately 12 percent to 17 percent over fiscal
    2004. On a GAAP basis, operating income is expected to be $503
    million to $527 million, or growth of approximately 14 percent
    to 20 percent over fiscal 2004. This is a reaffirmation of
    earlier guidance.

    -- Because Intuit is making additional investments to propel
    future growth, it is maintaining guidance for pro forma
    diluted earnings per share (EPS) of $1.93 to $2.01, or growth
    of approximately 15 percent to 20 percent over fiscal 2004. On
    a GAAP basis, diluted EPS is expected to be $1.82 to $1.90, up
    approximately 15 percent to 20 percent from fiscal 2004.

    The company said it would provide guidance for fiscal 2006 when it announces fourth-quarter 2005 results in August 2005.

    Forward-Looking Guidance for Third-Quarter 2005

    -- Intuit reaffirmed its revenue guidance for the third quarter,
    which will end on April 30, 2005. The company expects revenue
    of $780 million to $810 million, or year-over-year growth of
    10 percent to 14 percent.

    -- Intuit expects pro forma operating income of $395 million to
    $415 million, or year-over-year growth of 11 percent to 16
    percent. Intuit had not previously provided guidance for
    third-quarter pro forma operating income.

    -- Intuit expects pro forma diluted EPS of $1.42 to $1.47, or
    year-over-year growth of 18 percent to 23 percent. This is
    versus prior guidance of $1.46 to $1.51 and reflects
    incremental investments in several growth initiatives. Intuit
    expects GAAP diluted EPS of $1.39 to $1.44.

    Forward-Looking Guidance for Fourth-Quarter 2005

    -- Intuit reaffirmed its revenue guidance for the fourth quarter,
    which will end on July 31, 2005. The company expects revenue
    of $285 million to $305 million, or year-over-year growth of 5
    percent to 12 percent.

    -- Intuit expects a pro forma EPS loss of $0.05 to $0.09. This is
    versus its earlier range of a loss of $0.04 to $0.08,
    reflecting incremental investment in new growth initiatives.
    The company expects a GAAP EPS loss of $0.07 to $0.11.

    Conference Call Scripts, Webcast and Conference Call Information

    A live audio webcast of Intuit's first-quarter conference call is available at http://www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. (PST). The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has posted to its Web site this press release, including the attached tables and pro forma to GAAP reconciliations. It will post the conference call script to the Web site shortly after the conference call concludes.
    The conference call number is 866-847-7863 in the United States and 703-639-1429 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling 888-266-2081 in the United States and 703-925-2533 from international locations. The access code is 642477.

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

    About pro forma, or non-GAAP, financial measures

    Intuit's management believes that the pro forma financial measures it uses provide meaningful supplemental information regarding Intuit's core operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. Intuit's management refers to these pro forma financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma, or non-GAAP, financial measures using the same consistent method from quarter to quarter and year to year.
    Pro forma operating income excludes acquisition-related charges, such as amortization of intangibles and impairment charges, as well as amortization of purchased software and charges for purchased research and development. Pro forma net income and diluted earnings per share exclude discontinued operations, gains and losses on marketable securities and other investments, as well as the tax effects of these transactions. These pro forma financial measures are not prepared in accordance with generally accepted accounting principles and likely are different from non-GAAP or pro forma financial measures used by other companies. The accompanying tables and fact sheet have more details on Intuit's historical performance and financial projections, the GAAP financial measures that are most directly comparable to Intuit's pro forma financial measures, and the reconciliation of pro forma financial measures to GAAP.

    Cautions About Forward-Looking Statements

    This press release contains forward-looking statements, including forecasts of our expected financial results. All of the statements under the headings "Forward-Looking Guidance for Fiscal 2005," "Forward-Looking Guidance for Third-Quarter Fiscal 2005," and "Forward-Looking Guidance for Fourth-Quarter Fiscal 2005" are forward-looking statements. A number of risks and uncertainties may cause our actual results to differ materially from our expressed expectations. Some of the important factors that could cause our results to differ include the following: our revenue, profitability and market position can be negatively impacted in an unpredictable manner due to product introductions and price competition from our competitors, including competition from Microsoft, which recently announced its intention to target small business customers with accounting software and associated services, and governmental encroachment in our tax businesses; our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise; 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; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; revenue growth for some of our products is slowing and we must successfully introduce new products and services to meet our growth and profitability objectives; our new product offerings may not succeed or they may negatively impact our profitability if customers elect to purchase lower-priced simplified offerings instead of our higher priced offerings; we have implemented new information systems but they have not yet utilized in a peak season period, any problems with these new systems, particularly during peak tax season could interfere with our ability to ship and deliver products and gather information to effectively manage our business; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and our failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2004 and in subsequent Form 10-Q, and other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. We do not undertake any duty to update the information in this press release except as otherwise required by law.

Table A1 INTUIT INC. GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)

Three Months Ended Six Months Ended ------------------- ------------------- Jan. 31, Jan. 31, Jan. 31, Jan. 31, 2005 2004 2005 2004 --------- --------- --------- --------- Net revenue: Product $504,021 $508,034 $664,878 $665,903 Service 142,000 108,883 231,604 174,969 Other 16,618 16,454 32,147 31,821 --------- --------- --------- --------- Total net revenue 662,639 633,371 928,629 872,693 --------- --------- --------- --------- Costs and expenses: Cost of revenue: Cost of product revenue 63,962 65,728 94,149 97,590 Cost of service revenue 47,596 41,416 87,352 76,208 Cost of other revenue 6,049 6,836 12,578 13,546 Amortization of purchased assets (B) 3,439 3,257 6,793 6,479 Selling and marketing 177,985 169,909 311,120 301,684 Research and development 77,743 72,644 152,850 143,278 General and administrative 57,371 47,688 108,214 90,923 Acquisition-related charges (C) 4,172 6,540 8,616 12,292 --------- --------- --------- --------- Total costs and expenses 438,317 414,018 781,672 742,000 --------- --------- --------- --------- Income from continuing operations 224,322 219,353 146,957 130,693 Interest and other income 3,088 7,170 7,039 14,660 Gains on marketable securities and other investments net 60 90 218 237 --------- --------- --------- --------- Income from continuing operations before income taxes 227,470 226,613 154,214 145,590 Income tax provision (D) 78,627 77,092 47,841 49,572 --------- --------- --------- --------- Net income from continuing operations 148,843 149,521 106,373 96,018 Net loss from discontinued operations, net of income taxes (E) (1,591) (455) (5,257) (917) ------------------- --------- --------- Net income $147,252 $149,066 $101,116 $95,101 ========= ========= ========= =========

Basic net income per share from continuing operations $0.80 $0.75 $0.57 $0.48 Basic net loss per share from discontinued operations (0.01) - (0.03) - --------- --------- --------- --------- Basic net income per share $0.79 $0.75 $0.54 $0.48 ========= ========= ========= ========= Shares used in basic per share amounts 186,331 197,665 187,339 198,206 ========= ========= ========= =========

Diluted net income per share from continuing operations $0.78 $0.73 $0.56 $0.47 Diluted net loss per share from discontinued operations (0.01) - (0.03) - --------- --------- --------- --------- Diluted net income per share $0.77 $0.73 $0.53 $0.47 ========= ========= ========= ========= Shares used in diluted per share amounts 190,100 203,430 191,229 203,796 ========= ========= ========= =========

See accompanying Notes.

Table A2 INTUIT INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)

Three Months Ended Six Months Ended ------------------- ------------------- Jan. 31, Jan. 31, Jan. 31, Jan. 31, 2005 2004 2005 2004 --------- --------- --------- --------- Net revenue: Product $504,021 $508,034 $664,878 $665,903 Service 142,000 108,883 231,604 174,969 Other 16,618 16,454 32,147 31,821 --------- --------- --------- --------- Total net revenue 662,639 633,371 928,629 872,693 --------- --------- --------- --------- Costs and expenses: Cost of revenue: Cost of product revenue 63,962 65,728 94,149 97,590 Cost of service revenue 47,596 41,416 87,352 76,208 Cost of other revenue 6,049 6,836 12,578 13,546 Selling and marketing 177,985 169,909 311,120 301,684 Research and development 77,743 72,644 152,850 143,278 General and administrative 57,371 47,688 108,214 90,923 --------- --------- --------- --------- Total costs and expenses 430,706 404,221 766,263 723,229 --------- --------- --------- --------- Income from operations 231,933 229,150 162,366 149,464 Interest and other income 3,088 7,170 7,039 14,660 --------- --------- --------- --------- Income before income taxes 235,021 236,320 169,405 164,124 Income tax provision 79,907 80,349 57,598 55,802 --------- --------- --------- --------- Net income $155,114 $155,971 $111,807 $108,322 ========= ========= ========= =========

Basic net income per share $0.83 $0.79 $0.60 $0.55 ========= ========= ========= ========= Shares used in basic per share amounts 186,331 197,665 187,339 198,206 ========= ========= ========= =========

Diluted net income per share $0.82 $0.77 $0.58 $0.53 ========= ========= ========= ========= Shares used in diluted per share amounts 190,100 203,430 191,229 203,796 ========= ========= ========= =========

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles ("GAAP"). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit's management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit's core operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. Intuit's management refers to these pro forma financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year. See Tables B1 and B2 for reconciliations of these pro forma financial measures to GAAP.

Table B1 INTUIT INC. RECONCILIATION OF PRO FORMA FINANCIAL MEASURES TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (A)-(E) (In thousands, except per share amounts) (Unaudited)

Three Months Ended January 31, 2005 ------------------------------- Pro Forma Adjmts (A) GAAP --------- -------- --------- Net revenue: Product $504,021 $- $504,021 Service 142,000 - 142,000 Other 16,618 - 16,618 --------- -------- --------- Total net revenue 662,639 - 662,639 --------- -------- --------- Costs and expenses: Cost of revenue: Cost of product revenue 63,962 - 63,962 Cost of service revenue 47,596 - 47,596 Cost of other revenue 6,049 - 6,049 Amortization of purchased assets - 3,439 (B) 3,439 Selling and marketing 177,985 - 177,985 Research and development 77,743 - 77,743 General and administrative 57,371 - 57,371 Acquisition-related charges - 4,172 (C) 4,172 --------- -------- --------- Total costs and expenses 430,706 7,611 438,317 --------- -------- --------- Income from continuing operations 231,933 (7,611) 224,322 Interest and other income 3,088 - 3,088 Gains on marketable securities and other investments, net - 60 60 --------- -------- --------- Income from continuing operations before income taxes 235,021 (7,551) 227,470 Income tax provision 79,907 (1,280)(D) 78,627 --------- -------- --------- Net income from continuing operations 155,114 (6,271) 148,843 Net loss from discontinued operations, net of income taxes - (1,591)(E) (1,591) --------- -------- --------- Net income $155,114 $(7,862) $147,252 ========= ======== =========

Basic net income per share from continuing operations $0.83 $0.80 Basic net loss per share from discontinued operations - (0.01) --------- --------- Basic net income per share $0.83 $0.79 ========= ========= Shares used in basic per share amounts 186,331 186,331 ========= =========

Diluted net income per share from continuing operations $0.82 $0.78 Diluted net loss per share from discontinued operations - (0.01) --------- --------- Diluted net income per share $0.82 $0.77 ========= ========= Shares used in diluted per share amounts 190,100 190,100 ========= =========

Three Months Ended January 31, 2004 ------------------------------- Pro Forma Adjmts (A) GAAP --------- -------- --------- Net revenue: Product $508,034 $- $508,034 Service 108,883 - 108,883 Other 16,454 - 16,454 --------- -------- --------- Total net revenue 633,371 - 633,371 --------- -------- --------- Costs and expenses: Cost of revenue: Cost of product revenue 65,728 - 65,728 Cost of service revenue 41,416 - 41,416 Cost of other revenue 6,836 - 6,836 Amortization of purchased assets - 3,257 (B) 3,257 Selling and marketing 169,909 - 169,909 Research and development 72,644 - 72,644 General and administrative 47,688 - 47,688 Acquisition-related charges - 6,540 (C) 6,540 --------- -------- --------- Total costs and expenses 404,221 9,797 414,018 --------- -------- --------- Income from continuing operations 229,150 (9,797) 219,353 Interest and other income 7,170 - 7,170 Gains on marketable securities and other investments, net - 90 90 --------- -------- --------- Income from continuing operations before income taxes 236,320 (9,707) 226,613 Income tax provision 80,349 (3,257)(D) 77,092 --------- -------- --------- Net income from continuing operations 155,971 (6,450) 149,521 Net loss from discontinued operations, net of income taxes - (455)(E) (455) --------- -------- --------- Net income $155,971 $(6,905) $149,066 ========= ======== =========

Basic net income per share from continuing operations $0.79 $0.75 Basic net loss per share from discontinued operations - - --------- --------- Basic net income per share $0.79 $0.75 ========= ========= Shares used in basic per share amounts 197,665 197,665 ========= =========

Diluted net income per share from continuing operations $0.77 $0.73 Diluted net loss per share from discontinued operations - - --------- ---------

Diluted net income per share $0.77 $0.73 ========= ========= Shares used in diluted per share amounts 203,430 203,430 ========= =========

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles ("GAAP"). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit's management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit's core operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. Intuit's management refers to these pro forma financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year. See Notes (A) through (E) for details.

Table B2 INTUIT INC. RECONCILIATION OF PRO FORMA FINANCIAL MEASURES TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (A)-(E) (In thousands, except per share amounts) (Unaudited)

Six Months Ended January 31, 2005 -------------------------------- Pro Forma Adjmts (A) GAAP --------- --------- --------- Net revenue: Product $664,878 $- $664,878 Service 231,604 - 231,604 Other 32,147 - 32,147 --------- --------- --------- Total net revenue 928,629 - 928,629 --------- --------- --------- Costs and expenses: Cost of revenue: Cost of product revenue 94,149 - 94,149 Cost of service revenue 87,352 - 87,352 Cost of other revenue 12,578 - 12,578 Amortization of purchased assets - 6,793 (B) 6,793 Selling and marketing 311,120 - 311,120 Research and development 152,850 - 152,850 General and administrative 108,214 - 108,214 Acquisition-related charges - 8,616 (C) 8,616 --------- --------- --------- Total costs and expenses 766,263 15,409 781,672 --------- --------- --------- Income from continuing operations 162,366 (15,409) 146,957 Interest and other income 7,039 - 7,039 Gains on marketable securities and other investments, net - 218 218 --------- -------- --------- Income from continuing operations before income taxes 169,405 (15,191) 154,214 Income tax provision 57,598 (9,757)(D) 47,841 --------- --------- --------- Net income from continuing operations 111,807 (5,434) 106,373 Net loss from discontinued operations, net of income taxes - (5,257)(E) (5,257) --------- -------- --------- Net income $111,807 $(10,691) $101,116 ========= ========= =========

Basic net income per share from continuing operations $0.60 $0.57 Basic net loss per share from discontinued operations - (0.03) --------- --------- Basic net income per share $0.60 $0.54 ========= ========= Shares used in basic per share amounts 187,339 187,339 ========= =========

Diluted net income per share from continuing operations $0.58 $0.56 Diluted net loss per share from discontinued operations - (0.03) --------- --------- Diluted net income per share $0.58 $0.53 ========= ========= Shares used in diluted per share amounts 191,229 191,229 ========= =========

Six Months Ended January 31, 2004 -------------------------------- Pro Forma Adjmts (A) GAAP --------- --------- --------- Net revenue: Product $665,903 $- $665,903 Service 174,969 - 174,969 Other 31,821 - 31,821 --------- --------- --------- Total net revenue 872,693 - 872,693 --------- --------- --------- Costs and expenses: Cost of revenue: Cost of product revenue 97,590 - 97,590 Cost of service revenue 76,208 - 76,208 Cost of other revenue 13,546 - 13,546 Amortization of purchased assets - 6,479 (B) 6,479 Selling and marketing 301,684 - 301,684 Research and development 143,278 - 143,278 General and administrative 90,923 - 90,923 Acquisition-related charges - 12,292 (C) 12,292 --------- --------- --------- Total costs and expenses 723,229 18,771 742,000 --------- --------- --------- Income from continuing operations 149,464 (18,771) 130,693 Interest and other income 14,660 - 14,660 Gains on marketable securities and other investments, net - 237 237 --------- --------- --------- Income from continuing operations before income taxes 164,124 (18,534) 145,590 Income tax provision 55,802 (6,230)(D) 49,572 --------- --------- --------- Net income from continuing operations 108,322 (12,304) 96,018 Net loss from discontinued operations, net of income taxes - (917)(E) (917) --------- -------- --------- Net income $108,322 $(13,221) $95,101 ========= ========= =========

Basic net income per share from continuing operations $0.55 $0.48 Basic net loss per share from discontinued operations - - --------- --------- Basic net income per share $0.55 $0.48 ========= ========= Shares used in basic per share amounts 198,206 198,206 ========= =========

Diluted net income per share from continuing operations $0.53 $0.47 Diluted net loss per share from discontinued operations - - --------- --------- Diluted net income per share $0.53 $0.47 ========= ========= Shares used in diluted per share amounts 203,796 203,796 ========= =========

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles ("GAAP"). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit's management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit's core operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. Intuit's management refers to these pro forma financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year. See Notes (A) through (E) for details.

INTUIT INC. NOTES TO TABLES A1, B1 and B2

(A) Tables B1 and B2 reconcile the differences between the pro forma or non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles (GAAP), and the GAAP condensed consolidated statements of operations for the three and six months ended January 31, 2005 and 2004. Pro forma operating income (loss) excludes certain cost and expense line items that are in the GAAP statement of operations. For example, for the line item "acquisition-related charges," the number in the GAAP column is subtracted out of the pro forma column in calculating pro forma operating income or loss. Eliminating cost or expense items improves pro forma results compared to GAAP results. Pro forma net income (loss) starts with pro forma operating income or loss and then excludes certain non-operating gains and losses that are in the GAAP statement of operations. For example, for the line item "gains on marketable securities and other investments, net" the number in the GAAP column is taken out of the pro forma column in calculating pro forma net income or loss. Eliminating loss line items improves pro forma results compared to GAAP results. Eliminating gain line items decreases pro forma results compared to GAAP results.

(B) We amortize the value of software and other technology assets that we receive in connection with certain acquisitions over their estimated useful lives.

(C) Acquisition-related charges include amortization of purchased intangible assets and deferred compensation related to acquisitions as well as impairment charges. For the three months ended January 31, 2005 and 2004, amortization of purchased intangible assets and deferred compensation was $4.2 million and $6.5 million. For the six months ended January 31, 2005 and 2004, amortization of purchased intangible assets and deferred compensation was $8.6 million and $12.3 million. There were no impairment charges in any of those periods.

(D) Our GAAP expected effective tax rate of 34% for the twelve months ending July 31, 2005 differs from the federal statutory tax rate of 35% due primarily to the net effect of the benefit received from federal research and experimental credits, tax exempt interest income and various state tax credits offset by state taxes. This 34% expected effective tax rate was used in our calculation of pro forma results for the three and six months ended January 31, 2005.

Our GAAP effective tax rate of 31% for the six months ended January 31, 2005 differed from our GAAP expected full year effective tax rate primarily due to the benefits received from tax attributes identified during our first and second fiscal quarters and a change in tax law during our first fiscal quarter. These adjustments are included in our estimate of the GAAP full year effective tax rate of 34%.

Our GAAP effective tax rate of 34% for the three and six months ended January 31, 2004 differed from the federal statutory rate of 35% primarily due to the net effect of the benefit received from federal research and experimental credits, tax exempt interest income and various state tax credits offset by state taxes. This 34% effective tax rate was used in our calculation of pro forma results for the three and six months ended January 31, 2004.

(E) On December 3, 2004 we sold our Intuit Public Sector Solutions (IPSS) business to Kintera, a California software company, for approximately $11 million. In accordance with SFAS 144, "Accounting for the Impairment or Disposal of Long-lived Assets," we determined that IPSS became a long-lived asset held for sale and a discontinued operation in the first quarter of fiscal 2005. Consequently, we have segregated the net assets and operating results of IPSS from continuing operations on our balance sheets, statements of operations and statements of cash flows for all periods presented. Also in accordance with SFAS 144, we discontinued the amortization of IPSS purchased intangible assets in the first quarter of fiscal 2005.

Revenue for IPSS was $1.0 million and $2.9 million for the three months ended January 31, 2005 and 2004. Loss before income taxes for IPSS was $0.3 million and $0.7 million for the same periods. Revenue for IPSS was $3.8 million and $6.1 million for the six months ended January 31, 2005 and 2004. Loss before income taxes for IPSS was $0.8 million and $1.5 million for the same periods. The net loss from discontinued operations for the three months ended January 31, 2005 included a $0.5 million loss on disposal of IPSS. The net loss from discontinued operations for the three and six months ended January 31, 2005 also included income tax provisions of $0.9 million and $4.3 million for the estimated tax payable in connection with the tax gain on the sale of IPSS.

Table C INTUIT INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

Jan. 31, July 31, 2005 2004 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $36,566 $27,298 Short-term investments 848,063 991,971 Accounts receivable, net 307,765 90,795 Deferred income taxes 29,728 31,353 Prepaid expenses and other current assets 72,374 50,478 Current assets of discontinued operations - 1,605 ----------- ----------- Current assets before funds held for payroll customers 1,294,496 1,193,500 Funds held for payroll customers 330,886 323,041 ----------- ----------- Total current assets 1,625,382 1,516,541

Property and equipment, net 226,542 232,654 Goodwill, net 659,713 659,137 Purchased intangible assets, net 89,812 104,966 Long-term deferred income taxes 136,223 135,711 Loans to executive officers and other employees 15,369 15,809 Other assets 22,778 17,669 Long-term assets of discontinued operations - 13,691 ----------- ----------- Total assets $2,775,819 $2,696,178 =========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $102,284 $70,124 Accrued compensation and related liabilities 109,297 133,733 Deferred revenue 252,812 219,482 Income taxes payable 58,631 22,159 Other current liabilities 190,941 83,251 Current liabilities of discontinued operations - 5,575 ----------- ----------- Current liabilities before payroll customer fund deposits 713,965 534,324 Payroll customer fund deposits 330,886 323,041 ----------- ----------- Total current liabilities 1,044,851 857,365

Long-term obligations 16,168 16,394 Stockholders' equity 1,714,800 1,822,419 ----------- ----------- Total liabilities and stockholders' equity $2,775,819 $2,696,178 =========== ===========

Table D INTUIT INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

Three Months Ended Six Months Ended ------------------- ----------------------- Jan. 31, Jan. 31, Jan. 31, Jan. 31, (In thousands; unaudited) 2005 2004 2005 2004 --------- --------- ----------- ----------- Cash flows from operating activities: Net income $147,252 $149,066 $101,116 $95,101 Net loss from discontinued operations 1,591 455 5,257 917 --------- --------- ----------- ----------- Net income from continuing operations 148,843 149,521 106,373 96,018 Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: Depreciation 23,359 18,834 44,787 38,560 Acquisition-related charges 4,172 6,540 8,616 12,292 Amortization of purchased software 3,439 3,257 6,793 6,479 Amortization of other purchased intangible assets 1,883 1,461 3,766 2,921 Amortization of deferred compensation not related to acquisitions 1,626 1,557 3,251 3,118 (Gain) loss on disposal of property and equipment 28 751 (100) 2,008 Amortization of premiums and discounts on available-for-sale debt securities 2,280 3,182 5,746 5,760 Net realized (gain) loss on sales of available-for-sale debt securities 223 (237) 1,520 (325) Net gains from marketable securities and other investments (60) (90) (218) (237) Deferred income taxes (6,890) - 270 - Tax benefit from employee stock options 3,896 15,441 9,049 22,964 Gain on foreign exchange transactions (136) (827) (553) (4,107) --------- --------- ----------- ----------- Subtotal 182,663 199,390 189,300 185,451 --------- --------- ----------- ----------- Changes in operating assets and liabilities: Accounts receivable (239,121) (206,604) (217,072) (193,698) Income taxes receivable 20,904 - - - Prepaid expenses and other current assets 1,401 (7,532) (19,408) (24,923) Accounts payable 18,866 19,982 31,997 45,559 Accrued compensation and related liabilities 36,535 36,754 (24,446) (13,275) Deferred revenue 34,820 20,494 33,215 25,091 Income taxes payable 53,867 61,183 31,341 26,706 Other current liabilities 110,928 86,445 107,521 83,761 --------- --------- ----------- ----------- Total changes in operating assets and liabilities 38,200 10,722 (56,852) (50,779) --------- --------- ----------- ----------- Net cash provided by operating activities of continuing operations 220,863 210,112 132,448 134,672 Net cash used in operating activities of discontinued operations (609) (21) (878) (781) --------- --------- ----------- ----------- Net cash provided by operating activities 220,254 210,091 131,570 133,891 --------- --------- ----------- -----------

Cash flows from investing activities: Purchases of available- for-sale debt securities (675,876) (545,629) (1,343,060) (1,080,002) Liquidation and maturity of available-for-sale debt securities 532,529 421,361 1,480,532 1,220,108 Net change in funds held for payroll customers' money market funds and other cash equivalents 2,212 1,706 (7,845) 24,559 Purchases of property and equipment (13,158) (26,488) (37,565) (47,202) Change in other assets 435 893 (4,451) (2,999) Net change in payroll customer funds deposits (2,212) (1,706) 7,845 (24,559) Acquisitions of businesses and intangible assets, net of cash acquired (4,156) (2,785) (4,156) (120,810) --------- --------- ----------- ----------- Net cash used in (provided by) investing activities of continuing operations (160,226) (152,648) 91,300 (30,905) Proceeds from the sale of discontinued operations, net of closing costs 9,619 - 9,619 - --------- --------- ----------- ----------- Net cash used in (provided by) investing activities (150,607) (152,648) 100,919 (30,905) --------- --------- ----------- -----------

Cash flows from financing activities: Change in long-term obligations (839) (12,350) (244) (10,557) Net proceeds from issuance of common stock under stock plans 29,412 54,621 60,370 86,556 Purchase of treasury stock (113,649) (158,055) (284,211) (261,127) --------- --------- ----------- ----------- Net cash used in financing activities (85,076) (115,784) (224,085) (185,128) --------- --------- ----------- -----------

Effect of exchange rates on cash and cash equivalents (13) (1,212) 864 255 --------- --------- ----------- ----------- Net increase (decrease) in cash and cash equivalents (15,442) (59,553) 9,268 (81,887) Cash and cash equivalents at beginning of period 52,008 147,508 27,298 169,842 --------- --------- ----------- ----------- Cash and cash equivalents at end of period $36,566 $87,955 $36,566 $87,955 ========= ========= =========== ===========

Table E1 INTUIT INC. RECONCILIATION OF GUIDANCE FOR PRO FORMA FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS (In thousands, except per share amounts) (Unaudited)

Three Months Ending April 30, 2005 ------------------------------------------------------------- Pro Forma GAAP Range of Estimate Range of Estimate ----------------------- ----------------------- From To Adjustments From To ----------------------- ----------- ----------------------- Revenue $780,000 $810,000 $- $780,000 $810,000 Operating income 395,000 415,000 (7,500)(a) 387,500 407,500 Interest and other income 4,000 5,000 - 4,000 5,000 Diluted earnings per share $1.42 $1.47 $(0.03)(b) $1.39 $1.44 Shares 188,000 191,000 - 188,000 191,000

Three Months Ending July 31, 2005 ------------------------------------------------------------- Pro Forma GAAP Range of Estimate Range of Estimate ----------------------- ----------------------- From To Adjustments From To ----------------------- ----------- ----------------------- Revenue $285,000 $305,000 $- $285,000 $305,000 Diluted loss per share $(0.09) $(0.05) $(0.02)(c) $(0.11) $(0.07)

Twelve Months Ending July 31, 2005 ------------------------------------------------------------- Pro Forma GAAP Range of Estimate Range of Estimate ----------------------- ----------------------- From To Adjustments From To ----------------------- ----------- ----------------------- Revenue $2,000,000 $2,025,000 $- $2,000,000 $2,025,000 Operating income 535,000 559,000 (32,400)(d) 502,600 526,600 Interest and other income 17,000 20,000 - 17,000 20,000 Diluted earnings per share $1.93 $2.01 $(0.11)(e) $1.82 $1.90 Shares 189,000 194,000 - 189,000 194,000

(a) Reflects estimated adjustments for amortization of purchased software of approximately $3.3 million and amortization of purchased intangible assets of approximately $4.2 million for the three months ending April 30, 2005.

(b) Net of related income tax expense, the pro forma adjustments in item (a) result in a $0.03 per diluted share adjustment for the three months ending April 30, 2005.

(c) Reflects estimated adjustments for amortization of purchased software of approximately $3.3 million and amortization of purchased intangible assets of approximately $3.8 million for the three months ending July 31, 2005. Net of related income tax expense, these pro forma adjustments result in a $0.02 per diluted share adjustment for the three months ending July 31, 2005.

(d) Reflects estimated adjustments for amortization of purchased software of approximately $13.6 million and amortization of purchased intangible assets of approximately $18.8 million for the twelve months ending July 31, 2005.

(e) Net of related income tax expense, the pro forma adjustments in item (d) result in a $0.11 per diluted share adjustment for the twelve months ending July 31, 2005.

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles ("GAAP"). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit's management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit's core operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. Intuit's management refers to these pro forma financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year.

The reconciliations of the forward-looking pro forma financial measures to GAAP in this Table E1 include all information reasonably available to Intuit at the date of this press release. The adjustments in this table are those that management can predict. Intuit's pro forma financial measures exclude acquisition-related charges, discontinued operations and gains and losses on marketable securities. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments and sales of marketable securities.

TABLE E2 INTUIT INC. RECONCILIATION OF SUPPLEMENTAL PRO FORMA FINANCIAL MEASURES TO MOST DIRECTLY COMPARABLE GAAP MEASURES (In thousands, except per share amounts) (Unaudited)

Three Months Ended April 30, 2004 -------------------------------------- Pro Forma Adjustments GAAP ----------- ----------- ----------- Revenue $709,838 $- $709,838 Operating income 357,058 (9,506)(a) 347,552 Interest and other income 4,767 - 4,767 Diluted earnings per share $1.20 $0.13 (b) $1.33 Shares 198,748 - 198,748

Three Months Ended July 31, 2004 -------------------------------------- Pro Forma Adjustments GAAP ----------- ----------- ----------- Revenue $272,329 $- $272,329 Operating loss (28,958) (8,353)(c) (37,311) Interest and other income 11,417 - 11,417 Diluted loss per share $(0.06) $(0.16)(d) $(0.22) Shares 190,893 - 190,893

Twelve Months Ended July 31, 2004 -------------------------------------- Pro Forma Adjustments GAAP ----------- ----------- ----------- Revenue $1,854,560 $- $1,854,560 Operating income 477,564 (36,630)(e) 440,934 Interest and other income 30,844 - 30,844 Diluted earnings per share $1.68 $(0.10)(f) $1.58 Shares 200,081 - 200,081

(a) Reflects adjustments for amortization of purchased software of $3.3 million and amortization of purchased intangible assets of $6.2 million for the three months ended April 30, 2004.

(b) Reflects the adjustments in item (a) and adjustments for net gains on marketable securities of $0.1 million and loss from discontinued operations of $0.3 million. Net of related income tax expense and adjusting out the GAAP release of certain tax reserves, these pro forma adjustments resulted in a $0.13 per diluted share adjustment for the three months ended April 30, 2004.

(c) Reflects adjustments for amortization of purchased software of $3.4 million and amortization of purchased intangible assets of $5.0 million for the three months ended July 31, 2004.

(d) Reflects the adjustments in item (c) and adjustments for net gains on marketable securities of $1.4 million and loss from discontinued operations of $18.7 million. Net of related income tax expense, these pro forma adjustments resulted in a $0.16 per diluted share adjustment for the three months ended July 31, 2004.

(e) Reflects adjustments for amortization of purchased software of $13.2 million and amortization of purchased intangible assets of $23.4 million for the twelve months ended July 31, 2004.

(f) Reflects the adjustments in item (e) and adjustments for net gains on marketable securities of $1.7 million and loss from discontinued operations of $19.9 million. Net of related income tax expense, these pro forma adjustments resulted in a $0.10 per diluted share adjustment for the twelve months ended July 31, 2004.

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles ("GAAP"). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit's management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit's core operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. Intuit's management refers to these pro forma financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year.

Intuit Facts Q2/FY05 & FY04

Financial Summary ---------------------------------------------------------------------- ($ millions) Actual Actual Actual Actual Actual Actual Actual Q1 FY04 Q2 FY04 Q3 FY04 Q4 FY04 FY04 Q1 FY05 Q2 FY05 ------- ------- ------- ------- --------- ------- ------- Revenue: Small Business ------------- QuickBooks Related $129.9 $201.4 $169.9 $152.7 $653.9 $145.6 $222.3 % of change YOY 19% 16% 27% 13% 18% 12% 10% Intuit Branded Small Business $59.1 $68.4 $65.1 $66.9 $259.6 $66.7 $75.1 % of change YOY 29% 10% 10% 12% 14% 13% 10%

Tax ------------- Consumer Tax $5.2 $130.0 $344.7 $10.1 $490.0 $5.0 $141.1 % of change YOY -15% 36% 10% 19% 16% -3% 9% Professional Tax $6.9 $156.8 $82.5 $5.7 $251.9 $7.4 $150.6 % of change YOY 7% 4% 3% -9% 3% 7% -4%

Other Businesses $38.2 $76.8 $47.6 $36.9 $199.5 $41.2 $73.5 ------------- % of change YOY -9% 4% 6% 16% 4% 8% -4% ------- ------- ------- ------- --------- ------- -------

Total Revenue $239.3 $633.4 $709.8 $272.3 $1,854.9 $266.0 $662.6 % of change YOY 14% 14% 12% 13% 13% 11% 5%

GAAP Operating Income ($88.7) $219.4 $347.6 ($37.3) $440.9 ($77.4) $224.3 Pro forma Operating Income(A) ($79.7) $229.2 $357.1 ($29.0) $477.6 ($69.6) $231.9 Operating Margin % NA 36% 50% NA 26% NA 35%

Interest and Other Income $7.5 $7.2 $4.8 $11.4 $30.8 $4.0 $3.1

GAAP EPS ($0.27) $0.73 $1.33 ($0.22) $1.58 ($0.24) $0.77 Pro forma EPS(A) ($0.24) $0.77 $1.20 ($0.06) $1.68 ($0.23) $0.82 % of change YOY NA 20% NA 6%

Basic Share Count 198.7 197.7 194.5 190.9 195.5 188.3 186.3

Fully Diluted Share Count NA 203.4 198.7 NA 200.1 NA 190.1

Pro forma Tax Rate(A) 34% 34% 34% 34% 34% 34% 34%

(A) These are pro forma, or non GAAP financial measures. See tables B1, B2, E1 and E2 of accompanying press release for GAAP reconciliations.

Corporate Metrics ------------------------------------------------ Q2/04 FYE/04 Q2/05 -------- -------- ------- Capital Expenditure(B) $26.5M $117.7M $13.2M

Depreciation(B) $18.8M $77.5M $23.4M

Common Stock Outst. 197.2M 190.1M 185.6M

Full Time Employees(B) 7,405 6,611 7,199

(B) Excludes information related to Intuit Public Sector Solutions, which we divested in December 2004.

Portfolio and Segment Composition Small Business ---------------------------------------- QuickBooks Related QuickBooks Software Financial Supplies QuickBooks Standard Payroll QuickBooks Enhanced Payroll QuickBooks Enhanced Payroll Plus Point of Sale QuickBooks Support Programs Innovative Merchant Solutions

Intuit Branded Small Business Complete Payroll QuickBooks Assisted Payroll Premier Payroll IT Solutions Intuit Construction Business Solutions Intuit Real Estate Solutions (MRI) Intuit Distribution Management Solutions (Eclipse)

Tax ---------------------------------------- Consumer Tax (TurboTax)

Professional Tax ProSeries Lacerte

Other ---------------------------------------- Other Businesses Quicken Canada/UK

Business Metrics ---------------------------------------------------------------------- Units in thousands, except where noted Q2/FY03 Q3/FY03 Q4/FY03 FY03 Q1/FY04 Q2/FY04 ------- ------- ------- ------ ------- ------- QuickBooks Related(C) ------------------------

Basic, Pro and Simple Start 308 285 217 1,005 163 262 Premier units 37 35 35 122 26 62 Enterprise units 1 1 1 4 1 1 ------- ------- ------- ------ ------- ------- Total QuickBooks software units sold 346 321 253 1,131 190 325

QuickBooks software subscription customers(D) 7 9 11 11 12 15

Average Sales Price $233 $236 $246 $235 $265 $268 (software units sold)

Sell Thru Channel Mix(E) % of dollars at retail 54% 55% 47% 54% 59% 49%

QuickBooks Retail Share(F) Unit share FYTD 80% 82% 82% 82% 78% 82% Dollar share FYTD 87% 89% 89% 89% 85% 89%

QuickBooks do-it- yourself payroll (customers) 681 711 739 739 753 776

Intuit Branded Small Business (selected) ------------------------

Payroll Customers Premier 25 25 24 24 24 23 Branded Outsourced (Assisted & Complete) 41 41 43 43 45 48 ------- ------- ------- ------ ------- ------- Total Payroll Customers 66 66 67 67 69 71

Consumer Tax(C) ------------------------

Federal TurboTax (millions) Desktop units retail 2.1 2.1 NM 4.2 NM 2.4 Desktop units direct 1.0 0.9 NM 1.9 NM 1.2 Web units paid 0.3 2.1 0.1 2.4 NM 0.4 Free File Alliance 0.1 1.2 NM 1.3 NM 0.1 ------- ------- ------- ------ ------- ------- Total TurboTax federal units 3.5 6.3 0.1 9.8 NM 4.1

TurboTax Efile returns (millions) 1.1 11.0 0.2 12.3 NM 1.3

Sell Thru Channel Mix(E) % of dollars at retail 50% 32% NM 36% NM 51%

Federal TurboTax retail share(G) Unit share FYTD 72% 71% 71% 71% NM 71% Dollar share FYTD 80% 79% 79% 79% NM 81%

Professional Tax ------------------------ Professional Tax units 89 7 NM 96 NM 90 Efile returns (millions) 0.5 8.0 0.2 8.7 0.2 0.6

Business Metrics ---------------------------------------------------------------------- Units in thousands, except where noted Q3/FY04 Q4/FY04 FY04 Q1/FY05 Q2/FY05 ------- ------- ------ ------- ------- QuickBooks Related(C) -------------------------------

Basic, Pro and Simple Start 312 205 942 152 318 Premier units 60 44 192 32 67 Enterprise units 1 2 5 2 3 ------- ------- ------ ------- ------- Total QuickBooks software units sold 373 251 1,139 186 388

QuickBooks software subscription customers(D) 19 21 21 26 80

Average Sales Price $254 $276 $265 $287 $265 (software units sold)

Sell Thru Channel Mix(E) % of dollars at retail 48% 53% 51% 62% 47%

QuickBooks Retail Share(F) Unit share FYTD 83% 83% 83% 83% 86% Dollar share FYTD 90% 91% 91% 89% 90%

QuickBooks do-it-yourself payroll (customers) 806 807 807 816 853

Intuit Branded Small Business (selected) -------------------------------

Payroll Customers Premier 22 21 21 20 19 Branded Outsourced (Assisted & Complete) 50 51 51 51 53 ------- ------- ------ ------- ------- Total Payroll Customers 72 72 72 71 72

Consumer Tax(C) -------------------------------

Federal TurboTax (millions) Desktop units retail 2.3 NM 4.7 NM 2.6 Desktop units direct 0.5 NM 1.7 NM 1.1 Web units paid 2.4 NM 2.8 NM 0.6 Free File Alliance 0.6 NM 0.7 NM 0.4 ------- ------- ------ ------- ------- Total TurboTax federal units 5.8 NM 9.9 NM 4.7

TurboTax Efile returns (millions) 11.6 0.2 13.1 NM 1.8

Sell Thru Channel Mix(E) % of dollars at retail 30% NM 36% NM 55%

Federal TurboTax retail share(G) Unit share FYTD 72% 72% 72% NM 75% Dollar share FYTD 82% 82% 82% NM 81%

Professional Tax ------------------------------- Professional Tax units 7 NM 97 NM 94 Efile returns (millions) 12.7 0.4 13.9 0.7 0.7

(C) Sales to end users (sell-through) by Intuit and via retailers and distributors for which Intuit relies on reports from these merchants. These numbers include estimates, including estimates of sales by merchants who do not report sales to Intuit.

(D) Includes QuickBooks Online Edition, QuickBooks Pro and QuickBooks Premier from Enhanced Payroll Plus subscription units.

(E) Estimate based on subset of retailers reporting.

(F) Sources: NPD Group Monthly Retail Software Report through December 2004 for FY03 and FY04, and NPD Group Weekly Retail Software reports for January 2005.

(G) Sources: NPD Group Monthly Retail Software Report through December 2004 for FY03 and FY04, and NPD Group Weekly Retail Software reports for January 2005 as adjusted by Intuit estimates.

FY05 Financial Outlook(H)

Guidance ---------------------------------------------------------------------- ($ millions) Guidance Guidance Guidance Actual Q3 FY05 Q4 FY05 FY05 FY04 ------------ --------------- -------------- ---------

Revenue: Small Business ----------------- QuickBooks Related $653.9 % of change YOY 10%-14% 18% Intuit Branded Small Bus. $259.6 % of change YOY 6%-12% 14%

Tax ----------------- Consumer Tax $490.0 % of change YOY 5%-10% 16% Professional Tax $251.9 % of change YOY 0%-5% 3%

Other Businesses $199.5 ----------------- % of change YOY 0%-5% 4% ------------ --------------- -------------- ---------

Total Revenue $780-$810 $285-$305 $2,000-$2,025 $1,854.9 % of change YOY 10%-14% 5%-12% 8%-9% 13%

Pro forma Operating Income(A) $395-$415 $535-$559 $477.6 Operating Margin % 26%-28% 26% GAAP Operating Income $503-$527 $440.9

Interest and Other Income $4-$5 $17-$20 $30.8

Pro forma EPS(A) $1.42-$1.47 ($0.09)-($0.05) $1.93-$2.01 $1.68 GAAP EPS $1.39-$1.44 ($0.11)-($0.07) $1.82-$1.90 $1.58

Basic Share Count 185-190 195.5

Fully Diluted Share Count 188-191 189-194 200.1

Pro forma Tax Rate(A) 34% 34% 34% 34%

(H) All of the numbers provided in the table entitled "Guidance," other than those under the heading "FY04A" are forward-looking statements. Please see "Cautions About Forward-Looking Statements" in the pages accompanying this fact sheet for important information to assess when evaluating these statements.

Portfolio and Segment Composition Small Business ---------------------------------------- QuickBooks Related QuickBooks Software Financial Supplies QuickBooks Standard Payroll QuickBooks Enhanced Payroll QuickBooks Enhanced Payroll Plus Point of Sale QuickBooks Support Programs Innovative Merchant Solutions

Intuit Branded Small Business Complete Payroll QuickBooks Assisted Payroll Premier Payroll IT Solutions Intuit Construction Business Solutions Intuit Real Estate Solutions (MRI) Intuit Distribution Management Solutions (Eclipse)

Tax ---------------------------------------- Consumer Tax (TurboTax)

Professional Tax ProSeries Lacerte

Other ---------------------------------------- Other Businesses Quicken Canada/UK

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CONTACT: Intuit Inc. Jessica Kourakos, 650-944-5401 (Investors) Jessica_Kourakos@intuit.com Holly Anderson, 650-944-3992 (Media) Holly_Anderson@intuit.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: BANKING SOFTWARE EARNINGS CONFERENCE CALLS SOURCE: Intuit Inc.

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