Payroll solutions provider Intuit Inc. (INTU) on Thursday reported a 12% increase in second-quarter revenue to $1.5 billion, helped by a 38% jump in Small Business Online Ecosystem revenue. Analysts had projected total revenue of just $1.48 billion for Q2.
The stock gained 0.4% during after-market trading following the announcement. INTU shares have gained 35% in the past 12 months and are currently trading at an all-time high.
Net income rose to 72 cents per share from 70 per share a year ago. Excluding for one-time costs, the company earned $1 per share, which surpassed the street expectation of 77 cents per share.
CEO Sasan Goodarzi said, “Small Business and Self-Employed Group delivered another strong quarter led by our Online Ecosystem. We are solving top customer problems with offerings that deliver better money outcomes, smarter decisions and enhanced connections for those leveraging the QuickBooks platform.”
QuickBooks Online subscribers grew 38%, ending the quarter with nearly 3.9 million subscribers.
Looking ahead into the third quarter, the company expects adjusted earnings in the range of $5.35 to $5.40 per share and revenue growth in the range of 10% to 12%.
For the full year 2019, Intuit reiterated its adjusted earnings guidance in the range of $6.40 to $6.50 per share. Revenues outlook projection was unchanged at $6.530 billion to $6.630 billion.
Market experts remain optimistic about the company’s mid-market targeting QuickBooks Online Advanced service. Customers would be benefited by the easy discovery of critical payments functionality in the QuickBooks Payments that was redesigned recently.