Financial software powerhouse Intuit this afternoon reported fiscal Q1 revenue and profit that comfortably topped Wall Street’s expectations, and raised its outlook for the full year above consensus as well.
The raised forecast reflects “early momentum” in the fiscal year given the first quarter’s results, plus the inclusion of the marketing automation software technology program Mailchimp, which Intuit acquired this month.
The report sent Intuit shares surging by 10% in late trading.
CEO Sasan Goodarzi remarked that the company is “off to a strong start in fiscal year 2022, delivering on our strategy of becoming an AI-driven expert platform powering the prosperity of consumers and small businesses.”
Added Goodarzi,”We continue to see strong momentum and proof that our Big Bets are further positioning us for durable growth in the future, and we’re delighted that Mailchimp has joined Intuit.”
Goodarzi was referring to the company’s acquisition of The Rocket Science Group LLC, makers of Mailchimp, for $12.4 billion in cash, a deal completed November 1st.
Intuit’s purchase of Mailchimp was for the purpose of enabling Intuit it to build an “end-to-end customer growth platform” for SMBs.
Intuit expects that its SMB platform will enable businesses to go online, market, manage customer relationships and get analytics while managing cash flow.
Revenue in the three months ended in September rose 57%, year over year, to $2 billion, yielding a net profit of $1.53 a share, excluding some costs.
Analysts had been modeling $1.81 billion and 99 cents per share.
Intuit said its revenue from small business customers and self-employed types rose by 22%, year over year, to $1.4 billion.
Intuit’s Online Ecosystem rose by 36% to $845 million, it said.
The Credit Karma product for credit ratings, which Intuit acquired a year prior, rose to $418 million from $405 million in the prior quarter. It was a new record for Credit Karma revenue, the company said.
For the current quarter, the company sees revenue rising by 73% to 74%, equivalent to $2.73 billion to $2.74 billion, and EPS in a range of $1.84 cents to $1.88. That compares to consensus for $2.32 billion and a $1.74 profit per share.
For the full year, the company sees revenue in a range of $12.165 billion to $12.3 billion, and EPS of $11.48 to $11.64, up from the company’s prior forecast of $11.05 to $11.2 billion in revenue and EPS of $11.05 to $11.25, first offered back in August.
The new forecast is above consensus of $11.16 billion and a 11.23 profit per share.