Intuit Inc delivered an overall positive fiscal third quarter with growth in total revenue, operating income, and earnings per share driven by a big increase in revenue from its small business customers.
Intuit, which is known for its products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, saw its Small Business and Self-Employed Group revenue increased by 21% to $2 billion, while the Online Ecosystem revenue grew by 23% to $1.5 billion compared to the same period last year.
Other divisions did not fare quite as well, however, with Credit Karma revenue down by 12%, and ProTax Group revenue down by 5%.
That led to total revenue of $6.02 billion for the three-month period to end April 30, 2023, which was slightly below consensus estimates of around $6.10 billion.
The firm’s earnings per share (EPS), though, did beat expectations at $8.92 versus $8.48, but it wasn’t enough to keep Intuit’s share price from dropping around 3.5% after hours.
Despite these variations, Intuit raised its guidance for the full fiscal year 2023, expecting higher revenue and operating income growth than previously projected on the strength of its Small Business unit.
The firm is expecting full year 2023 revenue of $14.279 billion to $14.317 billion, and earnings per share of $14.20 to $14.25.
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