Intuit's Q2 revenue declines due to later tax season
Intuit on Tuesday reported second quarter financial results that fell below expectations. With tax season pushed back by the IRS, Intuit saw its revenue decline year-over-year.
"During fiscal 2021 the IRS began accepting and processing returns on February 12, 2021, as opposed to January 27, 2020 in the prior year," Intuit said in filing with the US Securities and Exchange Commission. "As a result, revenue during our second quarter of fiscal 2021 was lower compared to the same quarter of fiscal 2020."
Intuit's Q2 non-GAAP earnings per share came to 68 cents on revenue of $1.6 billion, down 7 percent year-over-year.
Wall Street was expecting revenue of $1.75 billion.
As a result of the IRS's actions, the company's Consumer Group revenue declined 71 percent to $147 million.
In a statement, CEO Sasan Goodarzi highlighted the company's growth in other areas.
The Small Business and Self-Employed Group delivered double-digit revenue growth, Goodarzi noted. Credit Karma, which Intuit purchased in December, brought in revenue of $144 million after the acquisition was finalized.
"We continue to see strong momentum and accelerating innovation across the company with our A.I.-driven expert platform strategy," the CEO said. "We are encouraged by our early results this tax season, and we are confident in our game plan to win."
Small Business and Self-Employed Group revenue was up 11 percent to $1.1 billion, while Online Ecosystem revenue grew 22 percent to $644 million.
For the third quarter, which ends April 30, Intuit expects revenue growth of approximately 53 to 55 percent.