Intuit (NASDAQ:INTU) released strong fiscal second-quarter results after market close on Monday, fueled by robust growth in online ecosystem revenue. But an announcement that Intuit agreed to acquire Credit Karma, a technology company with popular financial services for consumers, may have stolen the show.

Here's a closer look at Intuit's better-than-expected fiscal second-quarter results and the tech company's pending acquisition of Credit Karma.

Someone using QuickBooks Online on a laptop

QuickBooks Online. Image source: Intuit.

Intuit's second-quarter results


Q2 2020

Q2 2019



$1.70 billion

$1.50 billion






Fiscal quarters shown. Data source: Intuit's fiscal second-quarter earnings release.

Intuit's fiscal second-quarter revenue rose 13% year over year to $1.70 billion. This was at the high end of management's guidance range and ahead of a consensus analyst estimate for revenue of $1.68 billion. Non-GAAP (adjusted) earnings per share for the period were $1.16, up 16% year over year. Analysts, on average, were expecting non-GAAP EPS of $1.03. GAAP EPS rose 26% year over year to $0.91.

Online ecosystem revenue once again increased 35% year over year during the quarter. This revenue category includes revenue from Intuit's online small-business and self-employed software and is a key growth driver for Intuit. Management has continually aimed for growth in this revenue to rise at rates of 30% year over year or greater -- and Intuit has consistently easily achieved this.

Within its online ecosystem revenue, QuickBooks online accounting revenue jumped 43% year over year. This was notably an acceleration from 41% growth in the first quarter of fiscal 2020.

For the full year of fiscal 2020, Intuit reiterated its guidance for revenue to grow 10% to 11% year over year. Further, management still expects its non-GAAP earnings per share for the full year to rise 11% to 13%, to between $7.50 and $7.60.

Intuit's $7.1 billion acquisition

Alongside its fiscal second-quarter results, Intuit said it entered an agreement to acquire Credit Karma for about $7.1 billion.

The acquisition will add a rapidly growing consumer-facing platform to Intuit's financial software offerings. Intuit said Credit Karma achieved nearly $1 billion in unaudited revenue in 2019 -- and this revenue was up 20% compared to 2018. Equally impressive, Credit Karma boasts over 100 million members in the U.S., Canada, and the U.K., including nearly half of U.S. millennials. Of its 100 million members, 37 million are monthly active users.

"The combination brings together two technology leaders with a shared goal to help solve the personal finance problems that consumers face today," said Intuit in a press release about the deal, "regardless of their financial situation -- managing debt, maximizing savings, access to better credit cards and loans -- with an aim to put more money in consumers' pockets."

The $7.1 billion transaction, which includes a combination of cash and stock, is expected to close sometime during the second half of 2020.