Intuit Inc. (Nasdaq:INTU) today released the first of two
seasonal updates for its fiscal year 2017 consumer tax offerings.
Through Feb. 18, sales of TurboTax units declined 5 percent versus
the comparable prior-year period as the tax season is off to a slow
start for all preparation methods.
The most recent Internal Revenue Service data through Feb. 17
shows total e-filed returns down 13 percent while self-prepared
e-filings were down approximately 11 percent and assisted e-filings
down 16 percent.
“As we previously shared, the tax season is forming more slowly
this year across the industry,” said Dan Wernikoff, executive vice
president and general manager of Intuit’s TurboTax business.
“TurboTax e-filed returns are down 10 percent vs. prior year,
indicating we are maintaining share at this juncture in the tax
season.
“While the competitive environment continues to change, our
end-to-end product innovations, marketing strategy and expert
advice are reaching a broader range of consumers and convincing
them that TurboTax is the right choice for them.
“Through the second half of the season we remain focused on
delivering for customers and continuing to grow share in the
do-it-yourself software category. Everyone must file by April 18,
so it’s on us to continue to deliver the best offerings across the
board,” Wernikoff said.
Season-to-date TurboTax Federal Unit
Data
Season throughFeb. 18,
2017
Season throughFeb. 20,
2016
ChangeYear-Over-Year
TurboTax Desktop 3,830,000 3,954,000 -3% TurboTax Online 14,025,000
14,957,000 -6%
Sub-total TurboTax Units 17,855,000
18,911,000 -6% TurboTax Free File Alliance 471,000
464,000 2%
Total TurboTax
Units
18,326,000 19,375,000 -5%
On Feb. 8, the company announced that revenue and operating
income, and diluted earnings per share from its second fiscal
quarter were lower than expected due to the tax season forming more
slowly than usual.
Full-year Guidance
Intuit also reported second-quarter earnings today and
reiterated full-year revenue guidance. This included full-year
Consumer Tax revenue growth guidance of 6 to 8 percent and total
company revenue guidance of 7 to 9 percent. Further details are
available in the second-quarter earnings release issued today.
Intuit will issue a final tax season update in April after the
close of the tax season.
About Intuit
Intuit Inc. creates business and financial management solutions
that simplify the business of life for small businesses, consumers
and accounting professionals.
Its flagship products and services include QuickBooks® and
TurboTax®, which make it easier to manage small businesses
and tax preparation and filing. Mint.com provides a fresh,
easy and intelligent way for people to manage their money, while
Intuit's ProConnect brand portfolio includes ProConnect Tax
Online, ProSeries® and Lacerte®, the company's leading
tax preparation offerings for professional accountants.
Founded in 1983, Intuit had revenue of $4.7 billion in its
fiscal year 2016. The company has approximately 7,900 employees
with major offices in the United States, Canada, the United
Kingdom, India and other locations. More information can be found
at www.intuit.com.
Intuit and the Intuit logo, among others, are registered
trademarks and/or registered service marks of Intuit Inc. in the
United States and other countries.
Cautions About Forward-looking Statements
This press release contains forward-looking statements,
including forecasts of expected growth and future financial results
of Intuit,; the size of the market for tax preparation software and
the timing of when individuals will file their tax returns;
forecasts of total tax season results based on preliminary IRS and
other internal and external data points that may, in certain cases,
be based on small sample sizes; Intuit’s prospects for the business
in fiscal 2016 and beyond; expectations regarding customer growth;
expectations regarding changes to our products and their impact on
Intuit’s business; expectations regarding availability of our
offerings; expectations regarding the impact of our strategic
decisions on Intuit’s business; and all of the statements under the
heading “Forward-looking Guidance”.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our
actual results to differ materially from the expectations expressed
in the forward-looking statements. These factors include, without
limitation, the following: inherent difficulty in predicting
consumer behavior; difficulties in receiving, processing, or filing
customer tax submissions; consumers may not respond as we expected
to our advertising and promotional activities; product
introductions and price competition from our competitors can have
unpredictable negative effects on our revenue, profitability and
market position; governmental encroachment in our tax businesses or
other governmental activities or public policy affecting the
preparation and filing of tax returns could negatively affect our
operating results and market position; we may not be able to
successfully innovate and introduce new offerings and business
models to meet our growth and profitability objectives, and current
and future offerings may not adequately address customer needs and
may not achieve broad market acceptance, which could harm our
operating results and financial condition; business interruption or
failure of our information technology and communication systems may
impair the availability of our products and services, which may
damage our reputation and harm our future financial results; as we
upgrade and consolidate our customer facing applications and
supporting information technology infrastructure, any problems with
these implementations could interfere with our ability to deliver
our offerings; any failure to properly use and protect personal
customer information and data could harm our revenue, earnings and
reputation; if we are unable to develop, manage and maintain
critical third party business relationships, our business may be
adversely affected; increased government regulation of our
businesses may harm our operating results; if we fail to process
transactions effectively or fail to adequately protect against
potential fraudulent activities, our revenue and earnings may be
harmed; related publicity regarding such fraudulent activity could
cause customers to lose confidence in using our software and
adversely impact our results; any significant offering quality
problems or delays in our offerings could harm our revenue,
earnings and reputation; our participation in the Free File
Alliance may result in lost revenue opportunities and
cannibalization of our traditional paid franchise; the continuing
global economic downturn may continue to impact consumer and small
business spending, financial institutions and tax filings, which
could negatively affect our revenue and profitability;
year-over-year changes in the total number of tax filings that are
submitted to government agencies due to economic conditions or
otherwise may result in lost revenue opportunities; our revenue and
earnings are highly seasonal and the timing of our revenue between
quarters is difficult to predict, which may cause significant
quarterly fluctuations in our financial results; our financial
position may not make repurchasing shares advisable or we may issue
additional shares in an acquisition causing our number of
outstanding shares to grow; our inability to adequately protect our
intellectual property rights may weaken our competitive position
and reduce our revenue and earnings; our acquisition and
divestiture activities may disrupt our ongoing business, may
involve increased expenses and may present risks not contemplated
at the time of the transactions; our use of significant amounts of
debt to finance acquisitions or other activities could harm our
financial condition and results of operation; and litigation
involving intellectual property, antitrust, shareholder and other
matters may increase our costs. More details about the risks that
may impact our business are included in our Form 10-K for fiscal
2016 and in our other SEC filings. You can locate these reports
through our website at http://investors.intuit.com. Forward-looking
statements are based on information as of February 23, 2017 and we
do not undertake any duty to update any forward-looking statement
or other information in these materials.
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version on businesswire.com: http://www.businesswire.com/news/home/20170223006596/en/
Intuit Inc.InvestorsKim Watkins,
650-944-3324kim_watkins@intuit.comMediaDiane Carlini,
650-944-6251diane_carlini@intuit.com
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