Intuit CEO Sasan Goodarzi speaks at the opening night of the Intuit Dome in Los Angeles on August 15, 2024.
Rodin Eckenroth | Movie Magic | Getty Images
Intuit Shares fell 6% in extended trading Thursday after the financial software maker issued revenue forecasts for the current quarter that lagged analyst estimates due to some delayed sales.
Here's how the company performed compared to the LSEG consensus:
Earnings per share: $2.50 adjusted vs. $2.35 expected Revenue: $3.28 billion vs. $3.14 billion
Revenue rose 10% year over year in the quarter that ended Oct. 31, according to a statement. Net income fell to $197 million, or 70 cents per share, from $241 million, or 85 cents per share, a year earlier.
While fiscal first-quarter results beat estimates, second-quarter guidance was light. Intuit said it expects a single-digit decline in revenue from its consumer segment due to promotional changes to TurboTax desktop software in retail environments. While this will impact the timing of revenue, it will have no impact on the entire 2025 fiscal year.
Intuit called for second-quarter earnings of $2.55 to $2.61 per share, on revenue of between $3.81 billion and $3.85 billion. The consensus from LSEG was $3.20 per share and revenue of $3.87 billion.
For the full year, Intuit expects adjusted earnings per share to be between $19.16 and $19.36, on revenue between $18.16 billion and $18.35 billion. This means revenue growth of 12% to 13%. Analysts surveyed by LSEG were looking for $19.33 in adjusted earnings per share and $18.26 billion in revenue.
Intuit's Global Business Solutions Group had revenues of $2.5 billion in the first quarter. The number was up 9% and in line with estimates, according to StreetAccount. Formerly known as the Small Business and Self-Employed segment, the group includes Mailchimp, QuickBooks, small business finance and merchant payment processing.
“We're seeing good progress serving mid-market customers at MailChimp, but we're seeing more decline from smaller customers,” Sandeep Aujla, Intuit's chief financial officer, said on a conference call with analysts. “We are addressing this problem by making product improvements and driving feature discovery and adoption to improve first-time use and customer retention.”
Better results are still a few quarters away, Al-Ajla said.
CreditKarma's revenue was $524 million, above the StreetAccount consensus of $430 million.
At Thursday's close, Intuit shares were up about 9% so far in 2024, while the S&P 500 was up about 25% in the same period.
Intuit shares fell 5% on Tuesday after The Washington Post said President-elect Donald Trump's proposed “Government Efficiency Administration” discussed developing a mobile app for filing federal income tax returns. But Intuit's mobile filing app is “already available to all Americans,” CEO Sasan Goudarzi told CNBC's John Forte.
Goodarzi told CNBC that he is personally communicating with leaders of the incoming presidential administration.
In the earnings call, Goodarzi sounded optimistic about the economy.
“Our belief, which is not included in our guidance, is that we will see a better environment as we look forward into 2025, particularly with some of the things I mentioned earlier around interest rates, jobs and just the regulatory environment.” He said. “These things put a real burden on companies. We believe a better future will come.”
Watch: H&R Block and Intuit shares fall after report the Trump administration is considering a free tax-filing app
