What happened
Shares of Intuit (INTU 0.73%) popped 12% last month, according to data provided by S&P Global Market Intelligence, after the company reported strong third-quarter growth from QuickBooks customers and expanded its reach in the DIY tax software segment.
Image source: Intuit.
So what
Intuit's revenue rose 10% year over year in the third quarter to $2.51 billion, and the company's GAAP operating income grew by 12%, to $1.44 billion.
Investors were likely pleased with strong growth from the company's QuickBooks Online subscriptions, which jumped 59% and now stand at 2.2 million. Intuit also doubled its QuickBooks self-employed users in the quarter and now believes it will end the fiscal year with 2.3 million QuickBooks online subscribers. The company's non-GAAP earnings per share grew by 14% to $3.90.
CEO Brad Smith said in a statement:
Overall, we successfully delivered strong financial results. We entered the tax season with a clear plan to extend our lead in the do-it-yourself category and begin transforming the assisted category as well, embracing the power of the Intuit ecosystem. In small business, QuickBooks subscriber growth continued, driven by improvements across our platform for self-employed, small business and accountants.
Now what
Intuit's third-quarter results caused the company to raise its full-year revenue guidance, and it now expects a 9% to 10% increase over fiscal 2016.
"Obviously, we're feeling good with the quarter. More importantly, we feel like we have momentum that we're building as we enter the fourth quarter, and we have some important lessons learned that will sharpen our thinking as we look ahead to next year," Smith said on third-quarter earnings call.
