Payroll solutions provider Intuit Inc. (INTU) swung to a profit in the first quarter from a loss last year helped by higher income tax benefit. The results exceeded analysts’ expectations. The company guided second-quarter earnings and revenue above consensus estimates. Following this, the stock inched up over 6% in the after-market session.
Net income was $34 million or $0.13 per share compared to a loss of $2 million or $0.01 per share in the previous year quarter. Non-GAAP earnings soared 71% to $0.29 per share.
Revenue increased 12% to $1.02 billion, led by 42% growth in small business online ecosystem revenue. Total Small Business and Self-Employed Group revenue grew 11%. Consumer revenue jumped by 22% while professional tax revenue within the Strategic Partner Group rose by 6%.
QuickBooks Online subscribers grew 41%, ending the quarter with nearly 3.6 million subscribers. U.S. subscribers grew 35% to about 2.7 million, and international subscribers grew 61% to over 880,000. Within QuickBooks Online, Self-Employed subscribers grew to about 745,000, up from roughly 425,000 a year ago.
Looking ahead into the second quarter, the company expects adjusted earnings in the range of $0.85 to $0.88 per share and revenues in the range of $1.47 billion to $1.49 billion. GAAP earnings are anticipated to be in the range of $0.55 to $0.58 per share.
For the full year 2019, Intuit reiterated its adjusted earnings guidance in the range of $6.40 to $6.50 per share and unadjusted earnings estimate in the range of $5.25 to $5.35 per share. Revenues outlook was still predicted to be in the range of $6.53 billion to $6.63 billion.
Shares of Intuit ended Monday’s regular session down 5.77% at $199.24 on the Nasdaq. The stock has risen over 26 in the year so far and over 27% in the past year.