Intuit, the financial software giant behind TurboTax and QuickBooks, announced Thursday that it expects its annual revenue to surpass Wall Street forecasts. The company’s AI-driven financial management tools, coupled with recent price increases, have fueled strong demand.
Shares of Intuit initially surged after the announcement but later retreated as investors digested a slightly lower-than-expected forecast for first-quarter revenue growth. Despite this, the company’s CEO, Sasan Goodarzi, expressed confidence in Intuit’s momentum and its commitment to expanding its AI capabilities.
The company has been aggressively investing in AI technology, hiring hundreds of new employees to focus on AI-related initiatives. This investment comes on the heels of a significant workforce restructuring in July, when Intuit announced plans to lay off 10% of its workforce.
Intuit’s forecast for fiscal 2025 revenue is between $18.16 billion and $18.35 billion, slightly above analysts’ expectations. The company also announced a new $3 billion share repurchase authorization and expects annual adjusted profit per share to be between $19.16 and $19.36.
While Intuit’s AI-powered tools have been a driving force behind its recent success, the company’s transition from desktop software to recurring subscription models has impacted its first-quarter revenue. Intuit expects these changes to lower revenue by about $160 million in the first quarter.
Key Points:
- Strong Revenue Forecast: Intuit expects to earn between $18.16 billion and $18.35 billion in fiscal 2025, slightly above market predictions.
- AI-Powered Growth: The company is benefiting from increased demand for its AI-driven tools like QuickBooks and TurboTax, which automate financial tasks.
- Product Price Increases: Intuit recently raised prices on QuickBooks and added new features to attract customers.
- Mixed Market Reaction: Shares initially rose but then fell due to lower-than-expected first-quarter revenue growth (5%-6% instead of the expected 13.1%).
- AI-Focused Hiring: Despite recent layoffs (10% of its workforce), Intuit plans to hire 1,000 employees focused on AI.
- Strong Q4 Performance: Intuit reported $3.18 billion in revenue for Q4, beating estimates, and earned $1.99 per share (higher than the $1.84 expected).
Despite the short-term impact of the transition, Intuit remains optimistic about its long-term prospects. The company’s focus on AI and its ability to provide personalized financial solutions are expected to continue driving growth and innovation in the financial technology industry.
Photo: Turbotax Intuit by Mike Mozart of TheToyChannel and JeepersMedia on YouTube
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