Intuit Beats Earnings And Revenue Estimates In Q2

Intuit Inc. (INTU – Free Report) delivered impressive second-quarter fiscal 2018 results. The company reported non-GAAP income (excluding stock-based compensation, amortization, and other one-time items) from continuing operations of 35 cents per share, surpassing the Zacks Consensus Estimate of 34 cents.

Quarter in Detail

This tax-preparation related software maker reported revenues of $1165 million, which was within the guided range of $1160-$1180 million but outpaced the Zacks Consensus Estimate of $1156 million.

On a year-over-year basis, revenues were up around 15% primarily owing to stellar performance of TurboTax and QuickBooks Online.

Services and Other revenues were up nearly 18.4% to $849 million while product revenues increased 5.7% to $316 million.

Segment-wise, Small Business, and Self-Employed Group witnessed 19% year-over-year growth, primarily driven by 51% subscriber growth rate for Quickbooks Online, which brought the count to 2.8 million at the end of the just reported quarter. Online ecosystem revenues saw an increase of 39%. Self-Employed subscribers increased to around 490,000 from 425,000 in the previous quarter and 180,000 in the year-ago quarter.

Geographically, U.S. based subscribers grew 47% to 2.2 million and international subscribers soared 69% on a year-over-year basis to 630,000.

Management was particularly optimistic about positive responses to initiatives taken to increase subscriber base. The company is trying to address the funding needs of small businesses by providing them access to the required capital via their platform. Additionally, the incorporation of a virtual voice assistant in the platform is another tailwind.

The company completed three acquisitions during the second quarter, of which the most prominent one is “TSheets” that added a time tracking application to the platform. The enrichment of the employee base via these additions is also a positive. The company’s brand awareness related programs are proving to be beneficial as well, as quoted by management.
 
Notably, revenues from Consumer Group were up 12% year over year. Professional tax revenues within Strategic Partners Group were $95 million.