Intuit says sales of TurboTax software are flat in early tax season update

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Intuit says sales of its TurboTax consumer and business tax preparation software are so far flat compared to early tax filing season year ago. Overall, TurboTax e-files are down 3.5 percent as of Feb. 16, the company said. Intuit maintains that it’s so far pleased with the season, and that the filing levels line up with broader IRS data.

Intuit also released its second quarter financial results on Thursday. The personal and small business financial software maker reported a Q2 net income of $189 million million, or 73 cents per share. Non-GAAP earnings were $1.00 per share on top of revenue of $1.5 billion, up 12 percent year over year.

Wall Street was expecting earnings of 87 cents per share with $1.47 billion in revenue.

Breaking revenue down, Intuit said small business and self-employed group revenue rose 17 percent to $833 million, while consumer group revenue by 11 percent to $461 million.

As for the rest of Intuit’s portfolio, the company said it increased QuickBooks Online subscribers by 38 percent to end the quarter with 3.9 million paid subscribers. Intuit’s QuickBooks Self-Employed product also saw subscriber growth on the up, ending the quarter with 845,000 users. 

“We are halfway through our fiscal year and continue to see good momentum,” said Intuit CEO Sasan Goodarzi. “I’m pleased to see our products continuing to deliver for our customers. We like what we’re seeing at this stage.”

In terms of guidance, Wall Street is still expecting big third quarter results from Intuit’s tax season with an earnings target of $5.38 per share and $3.19 billion in revenue. Intuit responded in line with expectations with a revenue forecast of $3.22 billion to $2.36 billion, and earnings between $5.35 and $5.40 a share.

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