Intuit on Tuesday reported earnings per share of $2.97 on revenue of $2.178 billion for the quarter ended April 30, topping analyst expectations on EPS (by $0.04) and meeting them on revenue.
Its shares (INTU) were up 0.32 percent in after-hours trading.
In April, the company lowered its guidance on quarterly and annual revenue after it processed two percent fewer U.S. federal tax returns than a year ago. That forced it to cut the sales forecast for its popular TurboTax family of products, which in turn led to an 11 percent drop in the value of its shares.
The Mountain View, Calif.-based company's revenue was up 13 percent year over year. Revenue for its small business group, which includes the marketing and customer service group Demandforce, was up 17 percent quarter over quarter, thanks to "strong growth" in online customers. (Demandforce was acquired in May 2012.) The company said it was an otherwise challenging environment for small business.
A quick rundown of the company's divisions.
In the company's small business group:
- Financial Management Solutions revenue increased 24 percent for the quarter (12 percent excluding Demandforce). QuickBooks Online subscribers grew 26 percent. (Demandforce enjoyed subscriber growth of 65 percent.)
- Employee Management Solutions revenue grew 11 percent for the quarter. Online payroll subscribers grew 20 percent.
- Payment Solutions revenue grew 13 percent for the quarter. Customers grew 12 percent, while card transaction volume grew 7 percent.
As for the rest of the company:
- Consumer Tax revenue increased 14 percent for the quarter. (Total paid federal TurboTax units: up 4 percent. TurboTax Online units: up 6 percent.)
- Accounting Professionals revenue increased 9 percent for the quarter and 4 percent year to date.
- Financial Services revenue increased 9 percent for the quarter. (Why? Higher mobile banking revenue.)
- Other Businesses revenue (global business, Quicken, Intuit Health), grew 3 percent for the quarter.
As for guidance, the company said it expects 2013 earnings (non-GAAP) of $3.31 to $3.35 on revenue of $4.495 billion to $4.520 billion.
For the fourth quarter, it expects earnings (non-GAAP) of $0.03 to $0.07 on revenue of $702 million to $727 million.
"While it was a challenging tax season overall, we made progress in several key areas, growing new customers including first-time filers and former tax store customers, and significantly increasing mobile adoption," president and CEO Brad Smith said in prepared remarks. "Activity is already well underway for next year, with an intense focus on product and customer experience."
Editor's note: The original version of this post was headlined "Intuit Q3 earnings: mixed; beats on EPS, misses on revenue" and stated that Intuit missed analysts' expectations on revenue for the quarter by $0.01 billion. That is incorrect; taking the company's revised guidance in April into consideration, its reported revenue was in fact in line with expectations. We regret the error.