Intuit has established itself as a long-standing staple of accounting tools for small businesses. But amid weakening financial figures and a changing market, the company is going through some significant changes, and that includes three major sell-offs.
Intuit revealed last week that it plans to divest its flagship accounting product Quicken, along with more recent units QuickBase and Demandforce, in an effort to refocus it small business accounting services. In a statement, the company said the divestitures will allow the company to “focus on businesses that strengthen the ecosystem and align with two strategic goals: to be the operating system behind small business success, and to do the nations’ taxes in the U.S. and Canada.”
The sales come as Intuit looks for ways to slow its financial bleeding. Reports last June revealed the company had laid off about 400 of its staff members, and the announcement of the sales coincided with Intuit’s lackluster earnings report, which was followed by a weakened earnings forecast for next year and a decline in shares.
The divestitures will constitute a major shift for Intuit. Quicken had been with the corporation for more than three decades. QuickBase offers SME project management software services, while Demandware provides SME digital marketing tools.
According to reports in Zacks published Monday (Aug. 24), analysts are viewing the spin-offs as Intuit’s strategy to move toward a cloud-based subscription model. And despite a weak earnings reports, analysts said that Intuit is likely to focus more of its attention on cloud-based small business accounting tool QuickBooks Online, which showed 57 percent year-over-year growth in its subscription numbers to have more than 1 million members in the previous quarter.
Reports have yet to pinpoint potential buyers for the units, however, or their potential valuations for the company.