Intuit Inc (NASDAQ:INTU) stock fell 7.05% (As on August 23, 11:15:25 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that beat analyst expectations and provided strong guidance for fiscal year 2025, banking on growing demand for its AI-driven financial management tools amid recent price increases. Earlier this month, Intuit implemented price increases for QuickBooks, introducing new features to entice customers. For the fourth quarter, Intuit increased Small Business and Self-Employed Group revenue 20 percent to $2.6 billion and Online Ecosystem revenue 18 percent. The company grew Credit Karma revenue 14 percent to $485 million and reported Consumer Group revenue of $113 million, down 12 percent.
Moreover, QuickBooks Online accounting revenue grew 17 percent for the quarter and 19 percent for the year. Growth in the quarter was driven by customer growth, higher effective prices, and mix shift. Online services revenue grew 19 percent for the quarter and 21 percent for the year. Growth in the quarter was driven by growth in payments, payroll, capital, and Mailchimp. Total international online revenue grew 11 percent for the quarter and 13 percent for the year on a constant currency basis. TurboTax Live revenue grew 17 percent for the year, representing approximately 30 percent of total Consumer Group revenue, and TurboTax Live customers grew 11 percent.
INTU in the second quarter of FY 24 has reported the adjusted earnings per share of $1.99, beating the analysts’ estimates for the adjusted earnings per share of $1.84. The company had reported the adjusted revenue growth of 17 percent to $3.18 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $3.08 billion. The company has reported a total cash and investments balance of approximately $4.1 billion and total debt of $6.0 billion as of July 31.
Intuit forecast fiscal 2025 revenue to be between $18.16 billion and $18.35 billion, the mid-point of which is slightly above analysts’ average estimate of $18.18 billion, according to LSEG data.
The company, which also announced a new $3 billion share repurchase authorization, expects annual adjusted profit per share to be between $19.16 and $19.36, versus estimates of $19.15.
It expects first-quarter revenue growth to be between 5% and 6%, below expectations of 13.1% growth, as it transitioned QuickBooks desktop products to a recurring subscription model. Intuit expects these changes to lower revenue in the first quarter by about $160 million.