Categories: B2B PaymentsEarnings

Intuit Posts 8 Pct Q3 Revenue Hit

Intuit, the maker of financial software TurboTax, QuickBooks and Mint, is posting an 8 percent decline in revenue, pointing in a statement to the worldwide coronavirus pandemic as being the cause. The quarter ended April 30.

Sasan Goodarzi, Intuit’s chief executive officer, said that the company had a solid first-half of the fiscal year, and was looking at revenue growth of 14 percent. But the pandemic ended the momentum gained the first six to nine months.

Once the IRS extended the tax filing deadline to July 15, “this caused the timing of millions of tax filings to shift later in the season, resulting in total revenue declining 8 percent in the quarter,” he said in the statement. “Additionally, the shelter-in-place directives negatively impacted small businesses who are facing loss of income and cash flow to pay employees and weather the storm.”

Intuit reported total revenue of $3 billion, down 8 percent, the company said. Small business and self-employed group revenue was up 11 percent to $1 billion. Small business online ecosystem revenue grew 28 percent. Consumer Group revenue declined 15 percent to $1.8 billion.

Intuit anticipates that its clients with complicated tax returns will opt to hold off filing until later in the season.

QuickBooks saw revenue increase 36 percent in the quarter and was the driver behind the increase in revenue from online services, up 16 percent.

“The majority of Intuit’s customers, which are service-based businesses, were negatively impacted by shelter-in-place,” according to the statement.

Intuit was launched in Silicon Valley in 1983 by Scott Cook and Tom Proulx. Their latest funding was raised on Jan. 19, 2011 from a Post-IPO Equity round.

In February, Intuit closed a deal to buy Credit Karma for $7.1 billion. The merger will give both companies access to a trove of data. Credit Karma generated around $1 billion in revenue last year and opted against going for an initial public offering.

Get our hottest stories delivered to your inbox.

Sign up for the Newsletter to get updates on top stories and viral hits.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.