Intuit Surpasses Revenue Expectations with AI-Powered Financial Tools
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Intuit forecasts annual revenue above estimates on AI-driven financial tools
Earlier this month, Intuit implemented price increases for QuickBooks, introducing new features to entice customers. "Our momentum both in the first quarter and going into next year is coming from our customer growth both with QuickBooks Online and QuickBooks Advanced," Chief Executive Sasan Goodarzi told Reuters in an interview on Thursday. "We are adding almost 1,000 folks that are going to be focused in several areas that are particularly around AI," Goodarzi said. This AI-focused hiring comes on the heels of a significant workforce restructuring. In July, Intuit announced plans to lay off 10% of its workforce, or about 1,800 employees. Intuit forecast fiscal 2025 revenue to be between $18.16 billion and $18.35 billion, the mid-point of which is slightly above analysts' average estimate of $18.18 billion, according to LSEG data. The company expects annual adjusted profit per share to be between $19.16 and $19.36, compared with average estimate of $19.15. The company also forecast first-quarter revenue growth to be between 5% and 6%, below the average estimate of 13.1% growth, as QuickBooks desktop products transitioned to a recurring subscription model. Intuit expects these changes to lower revenue in the first quarter by about $160 million. Revenue for the fourth quarter came in at $3.18 billion, beating an estimate of $3.08 billion. Excluding items, it earned $1.99 per share, compared with an estimated $1.84 per share. (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)
[2]
Intuit forecasts annual revenue above estimates on AI-driven financial tools
Intuit forecast fiscal 2025 revenue above Wall Street estimates on Thursday, banking on growing demand for its AI-driven financial management tools amid recent price increases. Intuit, known for products like TurboTax, Credit Karma, and QuickBooks, has benefited from growing demand for its AI-powered offerings, which provide personalized financial recommendations and automation of specific tasks such as bookkeeping. Shares of the Mountain View, California-based company initially gained more than 2% in extended trading, but later reversed course as investors digested a forecast for first-quarter revenue growth that came in below market expectations. Earlier this month, Intuit implemented price increases for QuickBooks, introducing new features to entice customers. "Our momentum both in the first quarter and going into next year is coming from our customer growth both with QuickBooks Online and QuickBooks Advanced," Chief Executive Sasan Goodarzi told Reuters in an interview. "We are adding almost 1,000 folks that are going to be focused in several areas that are particularly around AI," Goodarzi said. This AI-focused hiring comes on the heels of a significant workforce restructuring. In July, Intuit announced plans to lay off 10% of its workforce, or about 1,800 employees. Intuit forecast fiscal 2025 revenue to be between $18.16 billion and $18.35 billion, the mid-point of which is slightly above analysts' average estimate of $18.18 billion, according to LSEG data. The company, which also announced a new $3 billion share repurchase authorization, expects annual adjusted profit per share to be between $19.16 and $19.36, versus estimates of $19.15. It expects first-quarter revenue growth to be between 5% and 6%, below expectations of 13.1% growth, as it transitioned QuickBooks desktop products to a recurring subscription model. Intuit expects these changes to lower revenue in the first quarter by about $160 million. Revenue for the fourth quarter came in at $3.18 billion, beating an estimate of $3.08 billion. Excluding items, it earned $1.99 per share, compared with an estimated $1.84 per share.
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Intuit, the financial software giant, has forecasted annual revenue above market estimates, driven by the success of its AI-integrated financial tools. The company's focus on artificial intelligence is paying off, enhancing its product offerings and attracting more customers.
Intuit's Strong Financial Outlook
Intuit, the company behind popular financial software products like TurboTax and QuickBooks, has announced a revenue forecast that exceeds market expectations. The company's shares saw a significant boost, rising by 1.4% in extended trading following this announcement
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. This positive outlook is largely attributed to Intuit's strategic integration of artificial intelligence (AI) into its financial tools, which has proven to be a game-changer for the company.AI-Driven Innovation
At the heart of Intuit's success is its commitment to leveraging AI technology. The company has been incorporating AI capabilities across its product suite, including TurboTax, Credit Karma, and QuickBooks. These AI-powered features are designed to provide users with more personalized and efficient financial management solutions
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.Financial Projections and Performance
Intuit's financial projections are impressive, with the company forecasting fiscal 2024 revenue between $15.89 billion and $16.105 billion. This projection surpasses analysts' average estimate of $15.88 billion, according to LSEG data
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. The company's performance in the second quarter was equally strong, with reported revenue of $3.39 billion, slightly above Wall Street expectations of $3.38 billion.Growth in Key Segments
The Small Business and Self-Employed Group, which includes QuickBooks, showed robust growth with a 18% increase in revenue. This segment has been particularly responsive to the AI-driven enhancements, attracting more small business owners and self-employed individuals seeking efficient financial management tools
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Market Response and Future Outlook
The market has responded positively to Intuit's performance and future outlook. The company's shares have seen a significant increase, reflecting investor confidence in Intuit's AI-driven strategy. As Intuit continues to innovate and expand its AI capabilities, it is well-positioned to maintain its competitive edge in the financial software market
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.Challenges and Competition
Despite its strong performance, Intuit faces challenges in a competitive market. The company must continue to innovate and adapt to changing consumer needs and technological advancements. Additionally, as AI becomes more prevalent in financial services, Intuit will need to stay ahead of the curve to maintain its market position
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