It may sound obvious that QuickBooks desktop revenue declined for the third quarter ended April 30. That was the result of what Intuit said was a sharp decline in unit sales through retail and direct channels since mid-March.

But until COVDID-19,  the desktop numbers have been up modestly every quarter since the first quarter of FY 2019, which was below the prior year, and desktop FY 2019 totals increased by 2.2 percent over FY 2018. These improvements have been attributed to QuickBooks Enterprise Solutions and that was still up in “mid-single digits” for the most recently ended period, CFO Michelle Clatterbuck said during this week’s earnings webcast. But this time, QBES sales could not overcome the decline in other desktop products. The result was $173 million in desktop sales  was down 4.6 percent from $181 million a year earlier. Not surprisingly, online QB sales continued to rise sharply to $353 million, an increase of 35.8 percent from $260 million in last year’s corresponding period. Intuit no longer reports unit sales or number of subscribers so its figures can no longer be compared to rival Xero, whose $437 million in revenue for the year ended March 31 was up 30 percent from fiscal 2019.  Moreover, Intuit’s increase of $93 million in online subscription revenue for one quarter compared with Xero’s roughly $101 million rise in revenue for its fiscal year.

Last modified on Friday, 22 May 2020
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