QuickBooks Online FY 16 Subscribers By Country

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Intuit hosted an investor day on September 21, 2016. They’ve just made the presentation slide deck available (download here) including this handy graphic above breaking out the installed base of their QuickBooks Online (aka QBO).

Converting the numbers to market percentages shows Intuit’s reported market share of what they say is the total addressable market (TAM).

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Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Intuit 2016 Earnings Up 12%, QuickBooks Online Subs Grow 41% with Prediction of 2 – 2.2 Million by 2017

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Intuit reported earnings August 23, 2016. Earnings were up 12% yet the guidance on future growth seemed to disappoint.

While these numbers top estimates, Intuit’s tepid revenue guidance for the current quarter sent its shares trending downward after hours.

Intuit said it expects Q1 EPS ranging from a penny a share to 3 cents a share, which falls well below analyst estimates for 13 cents a share. Revenue is expected to range from $740 to $760 million, which would also miss estimates of $772.96 million. – ZDNET

Financial Highlights

For fiscal 2016 Intuit:

  • Reported revenue of $4.7 billion, up 12 percent.
  • Increased total QuickBooks Online subscribers 41 percent, to finish the year with 1,513,000 paid subscribers.
  • Grew Consumer Tax revenue 10 percent, with TurboTax Online units growing 15 percent and total TurboTax units growing 12 percent.
  • Reported GAAP earnings per share of $3.69, versus $1.28 in fiscal 2015.
  • Reported non-GAAP earnings per share of $3.78, up 46 percent.
  • Unless otherwise noted, all growth rates refer to the current period versus the comparable prior-year period, and the business metrics and associated growth rates refer to worldwide business metrics.

Business Segment Results

Small Business

  • Total Small Business segment revenue increased 10 percent for the quarter and 9 percent for the year.
  • Small business online ecosystem revenue grew 25 percent for the year, driven by online customer acquisition.
  • QuickBooks Self-Employed subscribers ended the year at 85,000, versus 25,000 a year ago.
  • Outside the U.S., QuickBooks Online grew to 287,000 paying subscribers, up 45 percent.
  • Online payroll customers grew 17 percent for the year.
  • Online active payments customers increased 6 percent, and online payments charge volume increased 15 percent.

Some forecast highlights:

The company expects the following segment revenue results for fiscal year 2017:

  • Small Business: growth of 9 to 11 percent.
  • Consumer Tax: growth of 6 to 8 percent.
  • ProConnect: decline of 1 to 3 percent.

Intuit also announced guidance for full fiscal year 2017. The company expects:

  • Revenue of $5 billion to $5.1 billion, growth of 7 to 9 percent.
  • GAAP operating income of $1.33 billion to $1.38 billion, growth of 7 to 11 percent.
  • Non-GAAP operating income of $1.675 billion to $1.725 billion, growth of 8 to 11 percent.
  • GAAP diluted earnings per share of $3.35 to $3.45, versus $3.69 in fiscal 2016. Fiscal 2016 earnings per share includes $0.65 net income per share from discontinued operations.
  • Non-GAAP diluted earnings per share of $4.30 to $4.40, growth of 14 to 16 percent.
  • QuickBooks Online subscribers of 2.0 million to 2.2 million

A transcript of the conference call  (PDF) can be downloaded from here.

Source: Intuit press release

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Intuit Inks Deal With BDO USA, LLP To Become Part Of Their Anticipated Client Small Business Management Solution

Quickbooks screen

 

Intuit today announced a strategic alliance with BDO USA, LLP in which QuickBooks will serve as a part of an expected new BDO offering this fall. 

BDO is expected to launch a new cloud business management solution for clients later this fall. As part of the small business component of the new online offering, BDO will partner with QuickBooks to offer clients online tools and processes to help them better manage their accounting. This includes several preferred, integrated apps that work with QuickBooks, including TSheets, Expensify and Qvinci.

CPA firm strategic relationships are important to software publishers as the market for accounting and ERP solutions matures and shifts from the  model of simply moving from paper to online to one where companies are increasingly looking to fully integrate their existing solutions.

Many small businesses who have completed the process of automating accounting are ready for the next step of fully integrating other solutions such as online e-commerce, paperless billing and other integrations.

Software publisher Sage has also been very active in this market with the November 2014 introduction of Sage View which integrates to Sage One Accounting – US Edition, Sage 50 – US Edition and Intuit QuickBooks (Pro and Premiere 2012-2015) to provide dashboards of client data.

 

 

Source: Intuit Press Release

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Intuit Cuts 399 Positions

IntuitIntuit have reportedly cut back 399 people representing a little under 5% of their staffing.

This investor presentation slide deck on the Intuit site ( http://investors.intuit.com/events/default.aspx ) gives some clues as to Intuit changes.

The company appears to be shuffling product strategy to move customers to QuickBooks Online (presently 700,000 — target 2 million globally by 2017).

Also this is not the first time Inuit has trimmed employees – there have been at least two prior layoffs each of which seemed to be similar in size.

June 2008 – 575 employees / 7% – http://www.intuit.com/company/press-room/press-releases/2008/0626/

July 2012 – 226 employees – http://www.utsandiego.com/news/2012/jul/27/intuit-trims-san-diego-workforce/

July 2015 – 200 employees – http://tucson.com/business/local/intuit-s-tucson-office-to-lay-off-workers/article_3b4085a1-d866-5ec3-bf17-dc594b0c059e.html

August 2014 – 120 employees – http://www.sfvbj.com/news/2014/aug/19/intuit-lays-120-woodland-hills/

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Has Intuit Pulled A Fast One With Turbotax 2014?

Intuit turbotax More than a few people are complaining that Intuit has pulled a fast one with their 2014 edition of Turbotax.

The company has reportedly removed the ability to create forms C,D or E unless an additional upgrade fee is paid. The creation of these forms was included in last year’s version of Turbotax and the packaging of Turbotax 2014 does not seem to prominently mention that an upgrade is required to retain the same functionality as was in the prior year version.

The core issue is described by mouseprint.org as:

The full interview sections (Q&As) for filling out Schedule C (self-employment income and all expenses), Schedule D (investments), and Schedule E (rental and partnership income) are no longer in TurboTax Deluxe ($59.99 list). The complete Q&A Schedule D (with importation of brokerage data) and Schedule E are now only available in their “Premier” and higher editions ($89.99), and the full Schedule C is only available in their “Home & Business” version ($99.99).

Read more

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Intuit Introduces ACA Website to Answer Frequently Asked Questions About Affordable Care Act

Intuit ACAIntuit have just published a special site aimed at helping both clients and tax professionals understand the Affordable Care Act. The site provides downloadable PDF files which help to answer common questions and also has direct links to the Intuit community where members can ask questions of other members or search through previously asked questions.

Intuit ACA Site

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

QuickBooks App For Mac – Eventual Heir To QuickBooks For Mac?

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Intuit pushed out a press release today announcing “availability of the new QuickBooks app for Mac, a brand new app designed for the Mac OS that brings the power and benefits of the QuickBooks Online ecosystem to Mac users“.

Is this an early indicator that QuickBooks for Mac is slated for retirement? Nothing in the press release indicates that this is so – except that the product landing page for QuickBooks App for Mac suggests that it’s an upgrade from QuickBooks 2014 for Mac.

Continue reading “QuickBooks App For Mac – Eventual Heir To QuickBooks For Mac?”

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

QuickBooks Online: The Future Of Intuit Small Business Accounting

quickbooks-redesignIntuit today will unveil a new version of their QuickBooks online software at their Intuit Analysts Day in California (which will be streamed online).

What’s most interesting is this portion of the AllThingsD article:

The redesign was critical for Intuit, since it expects by the end of this fiscal year to have more new customers sign up for the online version of QuickBooks than the desktop version.

There’s also some chit-chat in the article about how QuickBooks Online is going to develop an ecosystem that other developers can plus their software or services into. I will be very interested to see the revenue model for this and whether there’s a charge or some other financial cost to integrate.

More

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Inuit Investor Day: Tuesday September 24, 2013

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Intuit is slated to host an Investor day on Tuesday September 24, 2013. Intuit will showcase to investors the new reimagined QuickBooks experience, designed from the ground up to deliver a simple, yet powerful platform that goes beyond accounting, offering an unprecedented business management solution for small businesses and accountants.

Watch live

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Intuit’s Innovation Gallery Walk – NYC

I just received a media invite to Intuit’s Innovation Gallery Walk being held March 29, 2012 in New York city.

Intuit hosts this event every year so people can come in and look at not only current products but those which are in their testing labs for potential future release.

Last year’s event was a great opportunity to look at many of Intuit’s technology projects – especially interesting where their mobile payments project and their Brainstorm group collaboration application which at the time was in testing but subsequently saw a release  (and un-release) to the public in August 2011.

I’m looking forward to attending again to take another look at the technologies that Intuit is working to bring to the marketplace.

See more than 20 innovations, including recently launched products, in-market experiments and early prototypes for consumers, small businesses and those who serve them. (We’ll have cocktails and appetizers to help you unwind after a long day.) Hear perspectives, predictions and customer insights from CEO Brad Smith, founder Scott Cook, chiefs of technology, innovation, data and business unit executives. Learn how Intuit’s product managers and engineers are uncovering and solving complex problems to improve our customers’ financial lives.

Intuit