Thread by @investing_city

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

Guess which three months? 😜

Quick [THREAD]

1/ We'll start with revenue.

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

2/ 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.

3/ But here's where it gets interesting.

Here are EBIT margins.

In Q3, EBIT margins are Mastercard-like!

4/ And Visa-like for free cash flow.

5/ Here is how much Q3 is responsible for EBIT.

Just about 100% of profit comes from a 3-month window.

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

7/ 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

8/ 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.

Fin/ 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!

Thanks for reading ☺️