Intuit reported an increase in users of both its TurboTax Online and QuickBooks Online user base last quarter.
In announcing its third-quarter results Tuesday, Intuit reported it grew TurboTax Online units 15 percent this past tax season, while total TurboTax units grew 12 percent.
Intuit also said it added 140,000 QuickBooks Online subscribers in the quarter, bringing the total to 1,397,000 paid subscribers worldwide at the end of April. New QuickBooks desktop and online customers combined grew 16 percent year to date.
Consumer tax revenue increased 7 percent in the third quarter. Revenue in the professional tax segment, the ProConnect Group, was $126 million for the quarter, roughly the same as in the third quarter of fiscal 2015.
The company increased full-year consumer tax revenue growth guidance to 9 percent, up from the previous guidance range of 5 to 7 percent. For the third consecutive year, TurboTax gained share within the DIY software category, bringing Intuit’s total software category share to roughly 65 percent.
“This was simply a great season for TurboTax,” said Intuit chairman and CEO Brad Smith in a statement. “We delivered an awesome product experience and we remain committed to continuing to invest and build on our competitive advantage to drive share gains for our product and the category.”
For the quarter ending April 30, Intuit reported revenue of $2.304 billion, up 8 percent. Intuit’s total small business segment revenue increased 12 percent in the quarter. Small business online revenue grew approximately 24 percent, driven by online customer acquisition. Online payments customers increased by 6 percent, and online payments charge volume increased by 18 percent.
Approximately 75,000 QuickBooks Online subscribers are using QuickBooks Self-Employed, up from 50,000 last quarter. Outside the United States, QuickBooks Online grew 60 percent, to 255,000 paying subscribers. Online payroll customers grew 17 percent.
“This was a strong quarter for small business as well, led by robust new-user growth in our QuickBooks Online ecosystem,” said Smith. “As a result of the strong year we’ve delivered through three quarters, we’ve raised our revenue, operating income and earnings per share guidance for the year.”
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