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  "documentTitle": "Intuit Inc. (INTU)",
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  "authorName": "Ben Axler",
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  "notes": "Includes a screenshot of Intuit's loan calculator and a table calculating interest revenue over 9 quarters.",
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      "text": "As shown in an excerpt from Intuit’s FY 2024 10-K above, Intuit includes interest revenue in “Service and Other Revenue”, thus prohibiting investors from understanding the scale and trends related to this markedly different revenue stream compared to its core business. And does this revenue deserve an 11x multiple?",
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      "text": "As shown in an excerpt from Intuit’s FY 2024 10-K above, Intuit includes interest revenue in “Service and Other Revenue”, thus prohibiting investors from understanding the scale and trends related to this markedly different revenue stream compared to its core business.",
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      "text": "Intuit Default Term Loan Calculator",
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      "text": "LTM Interest Revenue: $160 million",
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      "text": "With the prime rate at 8.5%, current SBA loans below $250,000 have interest rates around 15%. Reviewing the QuickBooks loan site, the default product is a $5,000 loan at a 26% interest rate. For our analysis, we assume a 20% interest rate applied to the period average term loan balances, which yields $160 million of revenue in FY 2024.",
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      "text": "Interest revenue is earned on term loans originated and purchased and held for investment in accordance with the specified period of time and defined interest rate noted in the loan contract. Interest revenue is recorded net of amortized direct origination costs and is included in service revenue in our consolidated statements of operations. Interest revenue was not material for all periods presented. — Intuit FY 2024 10-K",
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      "text": "Spruce Point Estimated Interest Revenue From Term Loans to Small Businesses",
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