Intuit Q3 falls below expectations amid revenue shift from tax filing extension
After lowering its third quarter guidance earlier this month, Intuit on Tuesday reported Q3 results that fell below analyst expectations due to abnormalities in the tax season.
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The third quarter is traditionally Intuit's most profitable, as tax season tends to generate strong sales of the company's consumer tax software. But this year the tax filing deadline was extended to May 17 and the shift spread Intuit's tax product revenue across quarters.
As such, the company raised its guidance for the fiscal year and its Q4 guidance is strong. Shares of Intuit were up just over 1% after hours.
Looking at the numbers, Intuit reported a net income of $1.46 billion, or $5.30 per share. Non-GAAP earnings were $6.07 per share on revenue of $4.2 billion. Wall Street was expecting earnings of $6.47 per share with $4.41 billion in revenue.
The Mountain View, California-based company said total QuickBooks Online revenue increased 24% in the quarter
Intuit said revenue from its small business and self-employed group increased 11% to $1 billion. Small Business and Self-Employed Group revenue up 20 percent to $1.2 billion, while Online Ecosystem revenue was up 28% to $715 million. Consumer group revenue was increased 34% to $2.4 billion.
Meanwhile, Credit Karma brought in revenue of $316 million, a quarterly record for the business.
The company said it is raising its full year fiscal 2021 outlook for total revenue, GAAP and Non-GAAP operating income, and GAAP and Non-GAAP earnings per share. Intuit now expects revenue of $9.362 billion to $9.400 billion with non-GAAP diluted earnings per share of $9.32 to $9.37.
For the current quarter, Intuit expects revenue growth from 26% to 28% with non-GAAP diluted earnings per share of $1.55 to $1.60. Wall Street is looking for Q4 revenue of $1.77 billion with non-GAAP EPS of 34 cents.