GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Intuit: Increasing Subscriptions Sending Positive Signals For Future Growth

August 28, 2014 | About:



There has been a great deal of movement in the internet bookkeeping market over the recent years and, as per a few merchants, there is a huge fight being pursued for the brains (and wallets) of little organizations.

While there is surely a fight, how huge would it say it is truly? Taking a gander at the huge picture, cloud bookkeeping sellers are really still on the edge of immense boondocks. When it is all said and done, there are more than 11.5 million little organizations 1-20 in the United States, as per the most recent accessible Census Bureau detail. In the event that you incorporate sole operation organizations, for the most part independent contractors that number ascents to around 32.8 million.

Presently, when you consider, number of clients that are involved with online small business bookkeeping report, you can see that they've scarcely tapped this potential business sector. Indeed the conclusive pioneer in the space, the famous titan Intuit (INTU), has just around 575,000 organizations (with a normal of pretty nearly three clients each one) utilizing its Quickbooks Online solution. Thus Intuit growth for its customer base is expected to rise exponentially over time and leverage the stock price.

Intuit’s “QuickBooks” is an established brand for accounting software solution for small and mid-sized businesses that is also available as SaaS, generating recurring revenue as license fees. The company is also rated as one of the most innovative companies by Forbes. Gartner has also endorsed Intuit as the fastest growing financial software solutions company. The company might be recording losses but the SaaS model can stimulate its growth in the future.

Quarterly growth

Intuit appears to be gaining momentum with customers embracing the cloud environment, increasing value for clients and for Intuit. Executing against its centered expansion strategies the organization continues to deliver solid results, no matter how you look at it. The company recently declared its fourth quarter results and as expected with growth. Total revenue was up by 13%, to $714 million as compared to same period last year. Total online subscriber for QuickBooks was up by 40%, record 60,000 customers. Moreover

Benefit from Cloud with stress on desktop developments

Intuit completely dedicated to winning in the cloud, with more than 30 million Intuit’s clients utilizing these services anyplace, whenever over an assortment of gadgets. The profits are clear: online encounters are better for clients, stretch the aggregate addressable market, and produce more unsurprising, repeating income streams.

The speeding membership of services and the progressions to how it will create desktop applications starting in fiscal 2015 will bring about considerable desktop revenue over time rather than as in advance license income, as it has truly done in the past. This makes fiscal 2015 a transitions year for reported financial relevant reports. Moreover, Intuit foresees fiscal 2016 results to come back to twofold digit top and bottom line.

Payouts associated with repurchase and dividends

Intuit repurchased $1.4 billion in shares during the first 9 months of fiscal 2014; over $2 billion remains on the current share repurchase authorization. The company also approved a quarterly cash dividend of $0.19 per share, payable on July 18 to shareholders of record on July 10.


Intuit anticipates revenue growth momentum to continue in the last quarter and targets revenue to fall in the range of $683 to $713 million. Non-GAAP operating income of $27 million to $47 million and non-GAAP diluted EPS in-between $0.06 to $0.08.

For the fiscal 2015, expected revenue can be anywhere in-between $4.475 billion to $4.505 billion, growth of 7% to 8%. GAAP operating income can be in between $1.325 billion and $1.345 billion, growth of 7% to 9%. Non-GAAP diluted EPS of $3.54 to $3.58, growth of 11% to 12%.


Subscriber base for Intuit has been increasing; QuickBooks Online subscribers grew 36%. QuickBooks Desktop subscribers grew 22%. QuickBooks Enterprise grew 18%. The company’s focus on the growing cloud market and wider acceptance of its bread and butter product “QuickBooks” is helping to reduce losses with higher revenue growth. Intuit’s stocks are certainly worth a try if you are opting for long .

Rating: 0.0/5 (0 votes)


Please leave your comment:

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial