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


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.

Sleeter Group Turns Up The Heat With Summer Small Business Technology Roadshow

The Sleeter Group, a national  provider of technical reference materials, software expertise, and QuickBooks training materials for accounting solutions consultants, is hitting the road this summer for a 9 city tour kicking off on July 17, 2012 in Tampa FL and ending 8/2/12 in San Francisco CA.

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Intacct and Intuit: It’s Complicated

One of our consulting firms  just received this offer from Intuit.  The promotion appears aimed at QuickBooks users, specifically software companies, who have outgrown their QuickBooks software.

What’s unusual about this mailing  is I’ve yet to see a press release that these two competitors (Intuit and Intacct) are working together.

The promotion also states “we have a new way” which may indicate this is a test or perhaps as yet unannounced partnership.

UPDATE: Intacct PR replies “..I would certainly not characterize intacct and intuit as competitors…”.

Most software companies tightly guard their installed user list and only as a deep last resort would they consider referring an existing customer to a competitor.

Relevant information from the email is below (emphasis is mine):

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Did A Free Demo Come Back To Haunt Both Epicor And ParknPool?

Three cardYesterday I spotted notice that Epicor was being sued by a customer over problems the customer described as:

Epicor said they could do it in seven weeks. We gave them seven months, and we got zero .. I couldn’t even look at a profit-and-loss statement. We couldn’t process orders. We were saying, ‘QuickBooks is so much better than this’ and we were paying $3,500 a year for it.

I can’t help but wonder whether prior to purchasing software (or in the case of Epicor – selling) was there any type of paid analysis that reviewed the fit and created a list of the functionality that was missing?

Moving from QuickBooks to a full ERP system is undoubtedly going to produce a lot of process changes. It’s also going to stress the limits of the typical accounting department who may have been accustomed to the QuickBooks method of data entry which is well suited to smaller operation workflows.

It’s impossible to tell from the details of this lawsuit – however my guess is that there might not have been enough due diligence (also called a paid proof of concept by my friend John Shaver).

Buyers who purchase software without a paid proof of concept could risk facing situations similar to this where missing features are unknown until implementation day when suddenly the true cost of the solution can exponentially increase past the initial hoped for amount – and many many times the cost of a paid proof of concept.

Friends don’t let friends buy ERP without a proof of concept.

Customer Sues Epicor After ERP Software Project Attempt Ends in ‘big Mess’

Intuit’s Unbelievable Response to Data Outage

In case you missed it Intuit just suffered through a very public and embarrassing data outage.

By most accounts the outage lasted at least 36 hours.

Repors say it took down some of Intuit’s corporate sites as well as reportedly some of their accounting offerings such as TurboTax Online, Quickbooks Online, Quicken and Quickbase.

Customers are understandably upset. And Intuit’s not the first publisher to have a prolonged data outage. Google, Twitter, Sage – and others have them.

When outages happen other publishers tend to keep quiet  about them and not criticize a competitor because they know their turn for an outage could arrive tomorrow.

What’s remarkable about Intuit’s response to the outage is two things. They didn’t use a PR flack to deliver a boilerplate apology (see Apple’s iPhone 4 order snafu apology for a good example of what that looks like)

This morning I noticed something about their apology that I’ve rarely seen a software publisher do.

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