TurboTax-parent Intuit posts 83% quarterly revenue growth as more people file taxes from home
Intuit shares continued their positive streak Wednesday, one day after the financial software company reported that it came close to doubling business in its last quarter.
Intuit, the provider of TurboTax, Quickbooks and Mint, saw revenue rise 83% in the last quarter of the company’s 2020 fiscal year. The strong sales growth amid a pandemic was powered by TurboTax, the online tax preparer, and the tax season, CEO Sasan Goodarzi told CNBC’s Jim Cramer Wednesday afternoon.
“This was a, you know, a very unique tax season because our consumers were just in pain across the globe, but particularly in the U.S., and it was an incredible season” as IRS filings, minus stimulus filings, grew as much as 4%, Goodarzi said in a “Mad Money” appearance.
“We had the fastest category growth that we’ve had in 15 years, and our customer growth was the fastest that it was in four years.”
The Trump administration earlier this year extended the tax deadline, which typically comes April 15 each year, to July 15 as a novel coronavirus outbreak began to batter the United States’ public health and economic health. As states put in place shelter-in-place and physical distancing mandates, Intuit saw a surge in customers using TurboTax to file their 2019 taxes from home as opposed to visiting a prepare in person.
The extension afforded TuboTax more time to test new things on the platform as the company continued to see strong results in the do-it-yourself category. TurboTax Live, an online tax preparation service with CPAs and EAs, saw customer growth improve 70%, the company said.
For the consumer group segment, came in at $710 million for the quarter, up from $74 million in the year-ago quarter.
That more than made up for the 18% drop in the same business the company saw in the quarter that ended in April.
“It was primarily because we gave folks the opportunity to be able to do their taxes in the comfort of their home with an expert in their pocket engaging them any which way they needed it so they can file their taxes with confidence and get their largest refund,” Goodarzi said.
The consumer segment grew business by 13% in the 2020 fiscal year, which ended July 31. The company also posted $7.68 billion in net revenue, a 13% increase from the year prior, with double-digit growth in its small business and online ecosystem categories.
Intuit produced $477 million in profit, or $1.81 in non-GAAP earnings per share, in its latest quarterly report, up from a loss of $23 million in the same quarter last year. For the full year, the company posted a profit of $2.08 billion, or $7.86 EPS.
Shares of Intuit closed at a fresh record of $342.34 after rising 1.76% during the session. The stock is up more than 30% year to date.
