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).
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
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
- 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
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
Intuit 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/
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).
Intuit 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
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?”
Intuit 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.
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.
How are customers supposed to evaluate the claims of cloud vendors if analysts don’t seem to be able to agree?
Continue reading “Who Is The Best Cloud Vendor? Even Analysts Can’t Agree”