Intuit will halt sales of desktop QuickBooks products to new customers on July 31. It will continue to support the applications for existing customers. The one exception in the mid-market QuickBooks Enterprise, a desktop package which has shown strong growth. In the last two financial quarters, Intuit reported QBE revenue grew in the low 20-percent range.
Next summer, new customers will not be able to buy desktop versions of QuickBooks Pro Plus, Premier Plus, Mac Plus and Enhanced Payroll.
This action follows Intuit’s hiking pricing on the desktop products which helped the software company’s desktop QB business to achieve year-over-revenue growth of 14 percent for the first quarter ended October 31.
Meanwhile, revenue for QB Online rose by 22.3 percent year-over-year for the first quarter ended October 31, rising to $762 million in the quarter, compared to $623 million a year earlier.
First-revenue revenue for QBO hit $2.85 billion, rising 25.7. percent from $2.27 billion. Services is the area where QBO growth outstrips desktop. Desktop services were flat at $1.17 billion. However, the same category for QBO reached $2.91. billion, a 34 percent rise form $2.17 billion.
Overall, QBO ecosystem revenue shot past $5 billion, hitting $5.76 billion, up from $4.44 billion a year earlier. QBO services received a boost from MailChimp, payroll, payments, capital and time tracking. Overall, Intuit posted income of $241 million in the most recently ended period, up from $40 million. Revenue grew 15 percent to slightly less than $3 billion from $2.6 billion in last year’s corresponding period.
