Intuit reported its second quarter net income rose by $118 million to $1.02 billion, or 39 cents a share, exceeding Wall Street's estimates of 45 cents a share on $1.01 billion revenue.
The accounting software company's revenue increased overall by 16 percent, giving the company a healthy outlook for the year. Its small business group revenue grew 9 percent alone, led by focused strength in employee management solutions and payment services.
Its payment services excelled out of the group's efforts with revenue increasing by 17 percent, with an 11 percent rise in merchant customers.
Intuit reiterated its forward-looking guidance and raised its expected operating income. It expects a 9--11 percent increase in revenue, with $1.95--$1.99 billion in the third quarter alone.
It shows solid momentum through the first half of the year, and double-digit revenue growth. The results come shortly after it announced plans to make hundreds of tax advisers available to TurboTax users --- a tax preparation software made by the company --- as part of its efforts to grow its small-to-medium sized business offering.
The company continues its trend into transitioning towards the cloud model of software development, allowing users to access their software from any computer or device.
Intuit gets over half of its revenue from cloud computing 'extensions' to its software products, and aims to reach its 75 percent target by 2015. Its "connected services" revenue increased by 60 percent, up from 54 percent from the first half of last year.
By bringing the desktop to the cloud, Intuit expects to generate vast recurring revenue streams for the company, it described in its earnings report.
While the company is wholly a software company, its move to the cloud in its entirety remains apparent. New customers arrive from online services, which shows the company's drive towards shifting from the desktop to the cloud.