For tax software companies like Intuit, the previous quarter may have been a slow one. However, the company is using the slack season to work on improving their mobile presence. Intuit’s connected services include an array of service offerings on Software-as-a-Service, mobile, and other digital devices. Today more than 35 million people use these services, which helped generate 62% or $2.4 billion of the company’s revenues last year. Intuit expects to increase that share to 75% of revenues by 2015 and is therefore aggressively launching newer solutions.
Intuit’s (Nasdaq:INTU) Q1 revenues grew 12% over the year to $594 million, ahead of the Street’s target of $580.7 million. Net loss per share of $0.10 was ahead of the market’s projected loss of $0.12 per share.
Product revenues grew 3% over the year to $222 million, while Services and Other revenues grew 18% to $372 million. By market segment, the Small Business Group was the best performer with 13% growth over the year, marking the seventh consecutive quarter of double-digit revenue growth in the segment. Consumer Tax revenues grew from $12 million last year to $41 million in the quarter. Financial Services revenues grew 9% during the quarter.
Intuit is projecting revenues of $1 billion-$1.02 billion in the current quarter with non-GAAP EPS of $0.43-$0.47. The market was expecting EPS of $0.43 for the quarter. For the fiscal year, they expect revenues to be $4.185 billion-$4.285 billion with EPS of $2.85-$2.94. The Street was projecting revenues of $4.23 billion with EPS of $2.90.
Intuit’s Product Expansion
Recently, Intuit released a new version of Quicken, Quicken 2012. Besides the earlier features of showing the user’s financial position, Quicken 2012 comes with added features such as an updated bill reminders tool and an enhanced budgeting and debt reduction tool that creates budgets using historical spending data and lets users customize them. The software also supports foreign currency transactions by enabling conversion and automatic rate downloads.
As part of their continued mobile expansion, Intuit recently launched an iPad app for their personal finance software, Mint. Since the launch of the Mint.com app on the mobile phones, 35% of new Mint users have signed up using mobile devices. The new app has received positive reviews and has been rated 4.5 out of 5 stars on the Apple App store.
Intuit also recently showcased newer mobile offerings. The Intuit Financial Services Consumer Mobile Solutions added to their existing mobile lineup offered by banks and credit unions offers an enhanced version of their Mobile Remote Deposit Capture, which enables banking consumers to take a picture of and immediately deposit checks using a mobile device.
For smaller businesses, Intuit expanded their GoPayment offering to enable users to deposit funds directly onto a prepaid debit card. This will reduce the time taken to start taking payments because new users can sign up for GoPayment without providing bank account details.
To help improve communication between doctors and patients, Intuit debuted two new apps, the Intuit Health iPad Patient Check-In and a Mobile Inbox for the Intuit Health Patient Portal. The iPad Patient Check-In replaces the paper clipboard patient registration process, and the Mobile Inbox allows patients to make appointments, get lab results, and pay their co-pay from handheld devices. Both solutions are expected to be available by mid-2012.
Finally, Intuit showed the ProOnGo Expense for Intuit App Center, which is a third-party mobile applications built on the Intuit Partner Platform that works with QuickBooks and QuickBooks Online to simplify expense tracking, approval, and reimbursement by enabling submission of expenses using Android, BlackBerry, or iPhone devices.
Intuit’s stock is trading at $50.86 with a market capitalization of $15.26 billion. It touched a 52-week high of $56.46 in May of this year.