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CEO: Intuit Had "Tough Tax Season"

Thursday, Apr 25 2013
Tax
Written by 

Brad Smith, IntuitIntuit this week lowered its guidance for third and fourth-quarter results based on weaker-than-expected TurboTax sales. That announcement came as CEO Brad Smith expressed disappointment in the wake of 3-percent growth in the sale of federal TurboTax units during the recently ended tax season. However, the Mountain View, Calif.-based company held to projections of 5-percent-to-8-percent revenue growth for its professional tax business for the year ending July 31.

The lowered expectations reversed February's announcement that the company was raising guidance for fiscal 2013. The prepared statement two months ago said Intuit expected consumer tax revenue would grow 8 to 10 percent for the fiscal year. The company has lowered that to 4-percent revenue growth for this year.

"This was a tough tax season overall, and while we're disappointed in the outcome for TurboTax, we maintained our strong leadership position in the fastest-growing segment of tax preparation and saw impressive results in mobile," Smith said in a prepared statement. He said the performance should be viewed in the context of the overall season in which the Internal Revenue Service reported a 2-percent drop in the number of returns filed.

The number of desktop federal Turbo Tax units dropped 1 percent to 5.82 million, while TurboTax Online federal units rose 6 percent to 18.5 million. Units available through the Free File Alliance dropped 1 percent to just under 1.1 million.

Besides holding to its projections for the professional tax business, Intuit also said it still expects its small business revenue to grow between 15 percent and 17 percent over fiscal 2012.


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