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Intuit
reported its third quarter earnings on Friday. Shares of the company are up two percent.
Below are some key highlights from its conference call:
• We're out of the gates strong in fiscal 2015. We grew revenue 8% in the first quarter, and exceeded our QuickBooks Online subscriber and our company financial targets.
• QuickBooks Online is generating new customer acquisition, with over 75% of QuickBooks Online customers being new to the Intuit franchise.
• We're also actively marketing QuickBooks Online to Desktop customers who are cloud-ready.
• The QuickBooks Online ecosystem is building momentum.
• We grew total QuickBooks Online subscribers by 43% in the first quarter, up from 40% growth in the previous quarter.
• We closed Q1 with 739,000 paying subscribers worldwide.
• Outside the U.S., QuickBooks Online subscribers were up more than 170% to 103,000, further accelerating from last quarter. And the improvements we're seeing in the leading indicators are quite promising, with new user attach rates of 12% for payments and 31% for payroll, up from 6% and 20% respectively, a year ago.
• We remain squarely focused on driving customer growth and increasing market penetration.
• QuickBooks Online has a very low penetration when you reflect our total addressable market of more than 160 million small businesses globally.
• Although we're still early in terms of taking QuickBooks Online global, we're excited about the huge market opportunity.
• Adding just one additional point of penetration would more than double our QuickBooks Online subscriber base.
• The capstone to the quarter for our small business team was our first-of-its-kind QuickBooks Connect event that was held in October.
• We hosted more than 3,500 attendees, including accounting professionals, small business owners, entrepreneurs and developers.
• The attendees found inspiration from the main stage, while learning practical advice on how to start and grow their businesses from renowned experts in breakout sessions.
• With that context around our small business performance, let me now shift to tax.
• Fiscal 2015 is the second year of a multiyear journey to achieve our product vision of how taxes are done.
• We're excited about the progress we're making in preparation for the upcoming tax season, but there's still much to do over the next several years.
• We'll continue our focus on improving conversion with a more simple and responsive experience that leverages data to get customers through their tax return with ease and confidence.
• We'll also focus on delivering a unified help and answer experience, driving TurboTax customers to clear explanations on everything tax related, including the Affordable Care Act.
• We're looking forward to getting our new lineup of solutions out to market in the next few weeks.
• In the Professional Tax business, we're seeing strong new customer growth early in the season, and our shift to the cloud continues to pick up steam.
• We intend to build on our leadership position and capitalize on this once-in-a-generation shift to the cloud for accountants.
Financial Metrics:
• For the first quarter of fiscal 2015, we reported revenue of $672 million, up 8%;
• non-GAAP operating loss of $36 million;
• GAAP operating loss of $114 million;
• non-GAAP loss per share of $0.10;
• GAAP loss per share of $0.29.
• Small business online ecosystem revenue grew 30%, and customer acquisition in our online ecosystem continues to drive growth.
• QuickBooks Online subscribers grew 43%, accelerating from the previous quarter.
• Total online active payments customers grew 3%.
• Online payments charge volume grew 22%, driven by strong growth in payments customers connected to QuickBooks Online.
• Online payroll customers grew 24% and full-service payroll customers nearly doubled.
• Rounding out the online ecosystem, Demandforce customers grew 27% for the quarter.
• Switching to the desktop side, total desktop ecosystem revenue declined 2%, and QuickBooks Desktop units declined 23%.
• This is in line with our expectations as we continue to emphasize QuickBooks Online.
• QuickBooks total paying customers grew 22% in the first quarter.
• Our board approved a $0.25 dividend per share for our fiscal second quarter, payable on January 20.
• This represents a 32% increase versus last year and reflects our large and growing cash position as well as more recurring and predictable revenue streams.
Guidance:
• QuickBooks Online is accelerating our transition to the cloud, which is driving value for our customers as well as for Intuit and our shareholders.
• We're also gearing up for tax season, and we're looking forward to getting our new offerings in the market in the coming weeks.
• So we're heading into our busiest time of the year, and we are excited about the momentum that we're continuing to build.
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