Intuit's Q3 boosted by 59 percent growth in QuickBooks Online users

Intuit has also raised its guidance for the fiscal year.
Written by Natalie Gagliordi, Contributor

Intuit reported solid third quarter financial results Tuesday bolstered by growth in its small business segment during tax season.

The Mountain View, California-based company said it grew total QuickBooks Online subscribers by 59 percent, ending the third quarter with roughly 2.2 million customers worldwide. Meanwhile, small business segment revenue was up by 16 percent and small business online ecosystem revenue was up by 30 percent.

Looking at the rest of Intuit's balance sheet, the personal and small business financial software maker reported a net income of $964 million, or $3.76 per share.

Non-GAAP earnings were $3.70 per share on top of revenue of $2.54 billion, up 10 percent year-over-year. Wall Street was expecting earnings of $3.87 per share with $2.5 billion in revenue. Intuit's shares rose 7 percent in late trading.

As for the rest of Intuit's portfolio, the company doubled the base of QuickBooks Self-Employed subscribers to roughly 360,000, up from 180,000 last quarter, while consumer tax revenue grew by 9 percent fiscal year-to-date.

For the current quarter, Intuit expects revenue of $795 million to $815 million, and EPS from 16 cents to 18 cents. Wall Street is looking for revenue of $778 million and earnings of 15 cents per share.

Intuit raised its guidance for the fiscal year to a range of $5.13 billion to $5.15 billion, which represents growth of 9 to 10 percent. Analysts expect revenue of $5.07 billion. Intuit also said it expects to end fiscal 2017 with 2.3 million QuickBooks Online subscribers.

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