Tax filing software maker Intuit raises revenue guidance for fiscal year

Intuit, the global financial technology platform and the provider of tax filing software, has raised its revenue guidance for the fiscal year 2024.
Intuit jobsIntuit, which sells software solutions such as TurboTaxCredit KarmaQuickBooks, and Mailchimp, expects annual revenue of $16.164 billion to $16.200 billion, growth of approximately 13 percent, up from previous guidance for growth of 11 to 12 percent.

Intuit is targeting operating income of $3.815 billion to $3.835 billion, growth of approximately 21 to 22 percent, up from previous guidance for growth of 15 to 18 percent.

Intuit is targeting annual revenue of $9.467-$9.481 billion from Small Business and Self-Employed Group, $4.44-$4.455 billion from Consumer Group, $597-$599 million from ProTax Group, and $1.66-$1.665 billion from Credit Karma.

Intuit expects revenue of $3.063 billion to $3.099 billion, growth of approximately 13 to 14 percent, for the fourth quarter of fiscal year 2024, which ends July 31.

“The era of AI is one of the most significant technology shifts in our lifetime and our strategy to be the global AI-driven expert platform is delivering significant benefits to our customers and strong results across the company,” said Sasan Goodarzi, Intuit’s chief executive officer, in its earnings report.

Intuit, the maker of tax filing software TurboTax, benefited from demand for its AI-integrated products during a robust tax season. The company’s tax-preparation software, personal finance portal Credit Karma and accounting software QuickBooks are in demand from small businesses and individuals for managing their finances.

Intuit reported revenue of $6.7 billion, up 12 percent, for the third quarter of fiscal 2024, which ended April 30.

Intuit has generated revenue of $3.7 billion (up 9 percent) from Consumer Group, $2.4 billion (up 18 percent) from Small Business and Self-Employed Group, $1.8 billion (up 19 percent) from Online Ecosystem revenue, $443 million (up 8 percent) from Credit Karma and $254 million (up 3 percent) from ProTax Group.

Intuit expects TurboTax Live revenue to grow 17 percent to $1.4 billion, representing approximately 30 percent of total Consumer Group revenue, for the full fiscal year.

Intuit expects average revenue per return to increase approximately 10 percent for the full fiscal year.

Intuit expects TurboTax Live units to grow 12 percent and TurboTax Online paying units to grow approximately 2 percent for the full fiscal year.

Intuit expects Total TurboTax units to decline 1 percent, due to share loss with pay-nothing and lower average revenue per return customers, and TurboTax share of total IRS returns to decline approximately 80 basis points.

Intuit expects customers paying nothing to be over 10 million for the full fiscal year, down from over 11 million last year.

Intuit offers AI-powered Intuit Assist, which is embedded across its products and helps small businesses and customers to make financial decisions with personalized recommendations.

“We’re going to be testing Gen-AI driven SKUs (stock keeping units) that do everything for you and you would pay extra for it,” Sasan Goodarzi told Reuters in an interview.

Separately, the company said Joe Kauffman, president of Credit Karma, will become its CEO from Aug. 1 as founder-CEO Ken Lin plans to retire at the end of year.

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