Estimated reading time: 1 minute, 21 seconds

QB ONLINE AND DESKTOP GROW Featured

Brad Smith, IntuitI get the feeling that if Intuit started selling a line of hair spray labeled "QuickBooks" that it would quickly dominate the market. Everything appeared to be working well as the software company reported results for the year ended July 31. Net income hit $969 million, a 165-percent increase from $365 million the prior year. Revenue reached $4.69 billion fiscal 2016, up 12 percent from $4.2 million for 2015.

The numbers marked a return to more easily compared set up figures—last year reflected a significant impact of the decision to recognize all revenue ratably, which pushed revenue to this future. Along with this, red-hot QuickBooks Online closed the fiscal year with 1,513,000 subscribers, a rise of 41 percent over the prior year-end. Intuit says it will add about 100,000 QBO subscribers during the current quarter and will hit 2 million by the end of the current fiscal year. CEO Brad Smith sees even more opportunity ahead. "We believe have more opportunity ahead of us with QBO outside the United States," he said during this week's earnings webcast. Smith admitted international sales have gone more slowly than he would like. Earlier this year, EVP Dan Wernikoff described part of the problem this way: "We launched with not completely compliant solutions." Even with that, there were 285,000 subscriptions outside the U.S., up 45 percent. Not only did QBO subscriptions soar, but Intuit also sold 956,000 desktop QB units in 2016, a increase of 8.4 percent from 882,000 in 2015. Smith said that reflected users re-upping after the three-year product cycle and noted that the company plans a long life for the desktop software. Overall, Intuit claimed 2,795,000 paying QB customers as of July 31, up 22.8 percent from 2,276,000 million the prior year.

Read 1909 times
Rate this item
(0 votes)

Visit other PMG Sites:

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.