Intuit Pushes AI To Simplify Tax Filing

Quickbooks’s parent company Intuit (NASDAQ: INTU) recently reported its fiscal fourth-quarter results that outpaced market expectations. The stock has climbed nearly 50% this year, and growth doesn’t appear to be slowing down.

Intuit’s Financials

Intuit’s fourth-quarter revenues grew 15% over the year to $994 million, significantly ahead of the market’s expectations of $961 million. Adjusted loss was $0.09 per share, which was also better than the market’s estimated loss of $0.14 per share. A year ago, Intuit had reported revenues of $988 million and a loss of $0.01 per share.

By segment, Small Business and Self-Employed Group revenues grew 16% to $905 million driven by 33% growth in subscribers for QuickBooks Online. Intuit ended the quarter with more than 4.5 million subscribers for the service. Online ecosystem revenues grew 35% to $459 million with the US-based subscribers of QuickBooks Online growing 25% to more than 3.2 million and international subscribers growing 58% to more than 1.3 million. Within QuickBooks Online, Self-Employed subscribers increased to more than 1 million. Online Services revenues grew 28% over the year.

Intuit ended the year with revenues of $6.78 billion, up 13%. Adjusted EPS was $5.89, which was 16% higher than the previous year’s earnings.

For the current quarter, Intuit forecast revenues of $1.105-$1.125 billion with an adjusted net income of $0.23-$0.25 per share. The market was looking for revenues of $1.126 billion for the quarter with an EPS of $0.35. Intuit expects to end the year with revenues of $7.44-$7.54 billion and an EPS of $7.50-$7.60. The Street was expecting revenues of $7.42 billion for the year with an EPS of $7.55.

Intuit’s Product Focus

Intuit continues to drive growth by expanding its product offerings. Earlier this year, it launched a service for next business day payments, saving the usual waiting period of 3-5 days. Within Payroll, it introduced next-day and same-day direct deposits that will allow customers to hold on to their money for longer and manage their cash flow better. The move has helped QuickBooks Online payroll service grow.

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