Intuit announced the company’s fourth quarter and full-year fiscal results, along with the divestiture of Demandforce, QuickBase and Quicken.
Intuit reported fiscal 2015 revenue of $4.19 billion, down 1 percent from 2014, and $696 million in Q4, an operating income loss of $130 million and down 5 cents per share in non-GAAP earnings. Fourth quarter revenue was up 7 percent over last year.
The company also announced the intent to divest Demandforce, QuickBase and Quicken, which will reduce fiscal 2016 revenue by approximately $250 million and non-GAAP earnings per share by $0.10, as it reports the held-for-sale assets as discontinued operations.
Once Intuit’s core accounting product, Quicken was introduced in 1984. Marketing SaaS solution Demandforce, which Intuit acquired three years ago for $423.5 million, and online collaboration platform QuickBase will join the desktop accounting solution in discontinuation.
“Divesting Demandforce, QuickBase and Quicken enables both Intuit and these businesses to focus on meeting the needs of their respective customers, while allowing Intuit to accelerate our ability to deliver on our objectives,” stated Intuit chief financial officer Neil Williams. “We are confident about finding the right outcome for each business. Until then, we will continue to sell and support all of our current products; we will not waver in our commitment to customers’ success.”
In the U.S., TurboTax Online units increased 11 percent and total TurboTax units rose 7 percent in the fourth quarter, and QuickBooks Online subscribers grew 57 percent for the year. The growth brings the total QBO subscribers to 1.075 million.
“We closed out our fiscal year 2015 on a strong note, with excellent momentum in each of our core businesses as we continue to see the benefits of our ongoing transformation into a global cloud company,” stated Intuit president and chief executive officer Brad Smith. “For the full fiscal year, total revenue and earnings per share both came in above the high end of our guidance range, before reclassifying our planned divestitures. In particular, our small business momentum continues to build and our QuickBooks Online ecosystem growth is accelerating, driving value for customers and Intuit. And we delivered great tax products this season.”
Intuit’s guidance for fiscal 2016, ending July 31, is 8 to 10 percent growth, with an expectation of $4.525 to $4.6 billion in revenue.
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