Our Management's Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) includes the following sections:
• Executive Overview that discusses at a high level our operating results
and some of the trends that affect our business.
• Critical Accounting Policies and Estimates that we believe are important
to understanding the assumptions and judgments underlying our financial
statements. • Results of Operations that includes a more detailed discussion of our revenue and expenses. • Liquidity and Capital Resources which discusses key aspects of our
statements of cash flows, changes in our balance sheets and our financial
commitments. You should note that this MD&A discussion contains forward-looking statements that involve risks and uncertainties. Please see the section entitled "Forward-Looking Statements and Risk Factors" at the beginning of Item 1A for important information to consider when evaluating such statements. You should read this MD&A in conjunction with the financial statements and related notes in Item 8 of this Report. In fiscal 2010 we acquired
Mint Software Inc.and in fiscal 2012 we acquired Demandforce, Inc.We have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition. We have reclassified our financial statements for all periods presented to reflect our Intuit Real Estate Solutions, Intuit Websites, Intuit Financial Services, and Intuit Healthbusinesses as discontinued operations. See "Results of Operations - Non-Operating Income and Expense - Discontinued Operations" later in this Item 7 for more information. Unless otherwise noted, the following discussion pertains only to our continuing operations.
This overview provides a high level discussion of our operating results and some of the trends that affect our business. We believe that an understanding of these trends is important in order to understand our financial results for fiscal 2013 as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Annual Report on Form 10-K.
Industry Trends and Seasonality
The industry in which we operate is dynamic and highly competitive, and we expect it to remain so in the future. The markets for software and related services, especially highly-available connected services, are characterized by rapid technological change, shifting customer needs, and frequent new product introductions and enhancements. Competition and expertise in many of the markets we serve, particularly small business services and consumer tax, have grown over the past few years and we expect this trend to continue. There are also large, cloud-based service companies who innovate quickly and serve small businesses and consumers. While today our competition with such companies may be limited, as we and those companies grow, 31
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our competition with them may increase. In recent years the widespread availability of the Internet, the emergence of mobile devices, and the explosion of social media have accelerated the pace of change and revolutionized the way that people throughout the world manage important financial tasks. The result is a global market that is shifting from traditional services that are paper-based, human-produced, and brick-and-mortar bound, to one where people understand, demand, and embrace the benefits of connected services. This trend toward connected services is the primary driver of the strategies in all of our businesses.