Why did INTU's net profit decline sharply in Q4 2024?

Intuit's (INTU) net profit decline in Q4 2024 can be attributed to **Higher Expenses** and **Decreased Revenue in Consumer Segment**.

1. **Increased Expenses**: Intuit has been expanding its operations and investing in new initiatives, which has led to higher expenses. For instance, the company's Small Business & Self-Employed segment saw a significant increase in expenses, with the Total Online Ecosystem reporting a 20.1% year-over-year change. This expansion comes at a cost, impacting the company's net profit margin.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|INTU|INTU.O|Intuit|2024 Q1|502.50000000000006|2.41E8|185|
|INTU|INTU.O|Intuit|2024 Q2|110.11904761904762|3.53E8|185|
|INTU|INTU.O|Intuit|2024 Q3|14.470531863919502|2.389E9|185|
|INTU|INTU.O|Intuit|2024 Q4|-122.47191011235957|-2.0E7|185|

2. **Decline in Consumer Segment Revenue**: The Consumer segment, which includes popular products like TurboTax, experienced a notable decline in revenue, with a 5.9% year-over-year decrease. This drop in revenue, coupled with the continued investment in this segment, would have put additional pressure on the company's net profit.
3. **Comparing with Previous Quarters**: Intuit has consistently beaten EPS and revenue expectations in recent quarters, with an EPS surprise of 5.93% in Q1 2024 and revenue exceeding expectations by 4.58% in the same quarter. The decline in Q4 2024 might be seen as a temporary setback, especially when compared to the company's strong performance in other periods.

In summary, the decline in Intuit's net profit in Q4 2024 is primarily due to increased expenses related to business expansion and a decrease in revenue from its Consumer segment.