Intuit Inc. (NASDAQ: INTU) stock fell over 1% (as of 12:38 pm GMT-4 ; Source: Google finance) after the company posted better than expected results for the third quarter of FY 20. The company finished the third quarter with approximately $4 billion in cash and investments. On May 7, the company had drew down the full amount of the $1 billion revolving credit facility to maintain financial flexibility.
INTU in the third quarter of FY 20 has reported the adjusted earnings per share of $4.49, beating the analysts’ estimates for the adjusted earnings per share of $4.47, according to the Zacks Consensus Estimate. The company had reported 8 percent fall in the adjusted revenue to $3 billion in the third quarter of FY 20, beating the analysts’ estimates for revenue by 0.21%. The company posted the non-GAAP operating income of $1.5 billion, which represents an 18% decrease. Consumer Group revenue was $1.8 billion, which is down 15% in the third quarter due to the delay of the IRS tax filing deadline to July 15, which is shifting revenue out of the third quarter and into the fourth quarter. In the Strategic Partner Group, professional tax revenue fell 18% in the third quarter, due to the impact of the delayed tax filing deadline on the timing of consumer tax filings completed by accountants. The company posted Small Business and Self-Employed Group revenue growth of 11% during the third quarter driven by Online Ecosystem revenue growth of 28%.
Moreover, QuickBooks Online accounting revenue increased 36% in fiscal Q3 mainly due to the customer growth, higher effective prices, and to a lesser extent, mix shift. During the second half of the quarter, the company saw the pace of new customer acquisition and retention both decline, especially among lower ARPC customers. Online services revenue, which includes payroll, payment, time tracking and capital, rose 16% in fiscal Q3. Within payroll, the company continues to experience revenue tailwinds during the quarter from a mix shift to our full-service offering. Roughly two-thirds of Online Payroll revenue is generated from monthly subscription fees, and one-third is generated from per-employee monthly fees.
Additionally, the company had repurchased $40 million of stock in the third quarter, but has temporarily suspended share purchases in conjunction with the Credit Karma acquisition as is typical during a stock transaction. The company has approximately $2.4 billion remaining on the authorization, and the company expects to be in the market in the future. The company has declared a quarterly dividend of $0.53 per share payable July 20, 2020, which represents a 13% increase versus last year.