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5 Metrics Behind Intuit's Soaring Stock Price

By Daniel Sparks – Sep 5, 2018 at 7:41PM

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Here's a look back at the fintech's mind-boggling performance in fiscal 2018.

While a handful of financial-technology stocks have performed very well over the past year, one fintech stock's rise has been particularly impressive, considering that the company was already large and mature this time last year. This stock is financial software company Intuit (INTU -0.45%).

Shares surged 54% over the past 12 months, more than doubling the Nasdaq's 25% gain over the same period. With a market capitalization at about $36 billion this time last year, it would have been difficult to imagine the company adding about $20 billion to its market cap in 12 months -- but that's exactly what happened.

With the company recently wrapping up its fiscal 2018, it's a good time to review what's been driving the stock higher. Fueling investor optimism has been a range of factors, including accelerating revenue growth, outsize earnings-per-share growth, a big increase in online ecosystem revenue, and more.

Here's an overview of Intuit's fiscal 2018 performance in five metrics:

A small business owner using QuickBooks Online on a tablet

QuickBooks Online. Image source: Intuit.

1. Revenue rose 15%

Intuit's revenue in fiscal 2018, which ended on July 31, increased 15% year over year to $6 billion. This marks a significant acceleration compared with the company's fiscal 2017 revenue growth of 10%. Intuit's strong top-line performance in fiscal 2018 was driven by stronger growth across its business, including double-digit growth in both Intuit's small-business and self-employed group and its consumer group.

2. Consumer group revenue grew 14%

Consumer group revenue, which accounts for about 42% of Intuit's total revenue, notably increased 14% year over year -- a significant acceleration from 9% year-over-year growth in fiscal 2017. The segment was helped by a 4% year-over-year increase in overall TurboTax units and a 6% increase in online TurboTax units. 

3. Online ecosystem revenue increased 40%

Intuit's online ecosystem revenue, which includes sales from Intuit's online small-business and self-employed group offerings, increased 40% year over year in fiscal 2018 -- an acceleration from 33% growth in fiscal 2017.

That growth crushed management's guidance for online ecosystem revenue to increase at a rate "better than 30%." 

4. International QuickBooks Online subscribers increased 62%

Intuit's international momentum persisted in fiscal 2018, with year-over-year growth in international QuickBooks Online subscribers easily outpacing subscriber growth in the U.S. QuickBooks Online subscribers outside the U.S. increased by 62% year over year to more than 800,000 subscribers. Subscribers in the U.S. climbed 38% year over year to about 2.6 million.

5. EPS increased 25%

Highlighting Intuit's scalable business model, the company's EPS increased faster than revenue during fiscal 2018. EPS during the period was up 25% year over year. On a non-GAAP basis, EPS increased 27%.

In a year of accelerating and broad-based growth, a review of Intuit's fiscal 2018 results shows why investors piled on the stock.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Intuit. The Motley Fool has a disclosure policy.

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