Intuit (NASDAQ:INTU) reported an increase in third-quarter revenue and revised its annual forecasts upwards on Thursday, benefiting from the heightened demand for its AI-integrated financial products, particularly during a robust tax season. The company, renowned for its tax filing software TurboTax, saw a surge in demand for its suite of products, including the personal finance portal Credit Karma and the accounting software QuickBooks, which cater to both small businesses and individuals seeking efficient financial management solutions. Intuit’s innovative AI-powered platform, Intuit Assist, embedded across its products, has been instrumental in providing personalized recommendations to aid small businesses and customers in making informed financial decisions.
During an interview with Reuters, Sasan Goodarzi revealed plans to introduce Gen-AI driven SKUs (stock keeping units) designed to automate various financial tasks, with the option for customers to pay extra for added convenience. Goodarzi also expressed optimism regarding the recent tax season, characterizing it as the first ‘back to normal’ period observed in the industry since the onset of the COVID-19 pandemic.
The company’s revised annual revenue outlook now stands between $16.16 billion and $16.20 billion, surpassing its previous projection of $15.89 billion to $16.11 billion. Analysts’ average estimate for annual revenue, according to LSEG data, was $16.05 billion, with Intuit’s updated guidance exceeding this figure. For the fourth quarter, Intuit anticipates revenue in the range of $3.06 billion to $3.10 billion, compared to estimates of $3.04 billion.
In the third quarter, Intuit recorded revenue growth of approximately 12%, reaching $6.74 billion, slightly exceeding estimates of $6.65 billion. Excluding exceptional items, the company reported earnings of $9.88 per share, surpassing estimates of $9.37.
Within its consumer group segment, serving individual customers, revenue increased by 9% to $3.7 billion during the third quarter. Meanwhile, revenue within its small business and self-employed group, offering products like QuickBooks, surged by 18% to $2.4 billion.
Additionally, Intuit announced that Joe Kauffman, currently serving as the president of Credit Karma, will assume the role of CEO effective August 1, succeeding founder-CEO Ken Lin, who plans to retire by the year’s end.
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