Intuit reported strong first quarter results as the company is expanding its ecosystem of small businesses and associated services.
The company reported first quarter earnings of 22 cents a share on revenue of $1.16 billion, up 15% from a year ago. Non-GAAP earnings for the quarter were 41 cents a share.
Wall Street was expecting Intuit to report first quarter non-GAAP earnings of 25 cents a share on revenue of $1.12 billion.
Intuit saw strength in its small business and self employed unites. Small business online ecosystem revenue was up 35%. Consumer group revenue was up 11%.
For fiscal 2020, Intuit reiterated its outlook. The company projected annual revenue of $7.44 billion to $7.54 billion, up 10% to 11% from the previous year.
Intuit recently added a bevy of artificial intelligence features to its platform and is also moving upstream to midmarket companies. On Wednesday, Intuit outlined new features for QuickBooks Online Advanced, which is a midmarket financial management system.
The QuickBooks Online Advanced features included workflow management, revenue streams dashboards, batch invoices and expenses, custom fields and a bevy of third party integrations.
On a conference call with analysts, CEO Sasan Goodarzi said Intuit's big bets revolve around AI and connecting frictionless business interactions. Goodarzi also said that it is ramping for tax season and TurboTax demand. Goodarzi also touted QuickBooks Online Advanced:
Our fifth big bet is to disrupt the mid-market with QuickBooks Online Advanced, our online offering designed to address the needs of small business customers with 10 to 100 employees. This offering will help us increase retention of these larger customers, attract new mid-market customers who are over served by higher-priced competitive offerings. We continue to make progress building out the offerings.