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 small businesses.
When looking at the big 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 small businesses in the United States, according to the Census Bureau. In the event that you incorporate sole operation organizations, for the most part independent contractors that number ascents to around 32.8 million.
When you consider the 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, Financial), has just around 575,000 organizations 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. The company recently declared its fourth quarter results: 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%, recording 60,000 customers.Ă‚
Benefit from Cloud with stress on desktop developments
Intuit is winning in the cloud, with more than 30 million of Intuit’s clients utilizing these services through 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 growing 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. This makes fiscal 2015 a transitions year for reported financial relevant reports. Moreover, Intuit foresees fiscal 2016 results to come back to two-fold 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.
Outlook
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 of $1.325 billion to $1.345 billion, growth of 7% to 9%. Non-GAAP diluted EPS of $3.54 to $3.58, growth of 11% to 12%.
Conclusion
The 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. I feel, Intuit’s stocks are certainly worth a try, if you are opting for long.
