Intuit Inc. reported fourth quarter revenues of $634 million, up 11.8 percent from the prior year yet under Wall Street estimates of $658.0 million and below management’s guided range of $702.0 million to $727.0 million.
Product revenues also increased 3.3 percent year over year to $248.0 million, while
Services and other revenues jumped 18 percent from the prior-year quarter to $386.0 million. Also, Financial Management Solutions revenues increased 18 percent, driven by higher subscription for QuickBooks Online and QuickBooks Enterprise, the company said in its earnings report.
In addition, revenues from accounting professionals recorded 29 percent growth for the quarter, while revenue from consumer tax was $30 million for the quarter.
Intuit officially realigned its business units effective Aug. 1 and recorded a pretax charge of approximately $20 million to position the company for growth. The company announced in July that it would reorganize its Accounting Professionals Division as part of a larger corporate reorganization that included the divestiture of the Intuit Financial Services division and a plan to sell the Intuit Health Group (see Intuit Realigns Accounting Professionals Division).
The new lineup includes two small business divisions pursuing opportunities around the world; two organizations focused on consumers—Consumer Tax, overseeing the tax preparation business in the U.S. and Canada; and the newly formed Consumer Ecosystem, focused on solving additional important consumer problems beyond tax.
“Fiscal 2013 has been a year of exciting wins, as well as some challenges," Intuit chief executive Brad Smith said in a statement. "We posted strong growth in Small Business, but fell short of our expectations in Consumer Tax. We've seized the opportunity to capture lessons learned, make the necessary adjustments, and position the company for a stronger future as we look ahead. In anticipation of the next chapter of growth, we updated our connected services strategy and reorganized our business units and functional groups. These organizational changes have transformed Intuit from a portfolio of businesses into an ecosystem of small businesses, consumers, and accountants, who build durable competitive advantage by working together.”
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