Intuit Inc. (INTU) stock is lower today after the company, which provides accounting software and tax solutions through its subsidiaries QuickBooks and TurboTax, announced financial results for the second quarter of fiscal 2022.
The company grew total revenue 70% to $2.7 billion thanks to the acquisition of Mailchimp, which it completed in the second quarter, and a full quarter of Credit Karma, which it acquired in 2020.
However, excluding Mailchimp and Credit Karma, total revenue grew 39%.
Small Business Revenue Jump
Intuit saw strong growth in its Small Business segment in the quarter.
QuickBooks Online Accounting revenue grew 35% in the quarter, driven primarily by higher effective prices, customer growth, and mix-shift.
“We see continued strong momentum across the company as we focus on our mission to power prosperity and solve our customers’ biggest financial problems," said Sasan Goodarzi, Intuit's CEO.
"Our platform continues to thrive as digitization is more important now than ever. As we move through tax season, we're proud to help customers get the biggest refund they deserve."
Online Services revenue also grew to $574 million, up 139%, driven by the addition of Mailchimp, and growth in QuickBooks Online Payroll and QuickBooks Online payments, up from $240 million the prior year.
Looking Ahead
Going into the third quarter, Intuit expects revenue of $12.16 billion to $12.3 billion and growth of approximately 26 to 28% (including MailChimp)
Excluding Mailchimp, revenue growth is projected between 18 to 20%.
GAAP diluted earnings per share is projected to be between $7.00 to $7.16, a decline of approximately 7 to 5 percent.
Intuit is still working to finalize the purchase price accounting process for its purchase of MailChimp, which could result in a one-time impact on its second-quarter GAAP results and full-year fiscal 2022 GAAP guidance issued today.
