Intuit

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Intuit (creator of TurboTax, Quickbooks, etc.), unsurprisingly, makes all of its profit in a 3-month window.

Guess which three months?

We'll start with revenue.

You can see that Q2 and Q3 are the biggest revenue quarters, with Q3, being the real driver.

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Here is how much Q3 is responsible for annual sales.

Is this higher or lower than you would have guessed? I would have guessed even higher probably.

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But here's where it gets interesting.

Here are EBIT margins. In Q3, EBIT margins are Mastercard-like!

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And Visa-like for free cash flow.

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Here is how much Q3 is responsible for EBIT. Just about 100% of profit comes from a 3-month window.

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This proportion is even a little higher with free cash flow.

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Intuit is a pretty interesting business as it has done a good job of shifting from desktop downloads to a SaaS model. And the brand is second to none.

TurboTax and Quickbooks have become synonymous with tax/accounting software.

One thing that was kind of surprising was how much of its earnings the company returns to shareholders.

For 2019, it spent about 50% of its EBIT on buybacks and dividends.

For 9 months of the year, Intuit just about breaks even. Then it adds almost $2 billion in profit in a span of 90 days.

Talk about seasonality!


As a paying subscriber, this is an example of what you’ll get bi-monthly.