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INTUIT SHIFTS QB STRATEGY

Intuit has spent the last two years saying free is not free and using products that initially have no charge to hook customers who will buy more services. But in this week's third-quarter earnings conference call, CEO Brad Smith said Intuit has downplayed the use of the free QB Simple Start package. Instead, Intuit is putting emphasis on getting new customers into the product franchise via offerings such as the QuickBooks Online edition and its Web site service.
Smith said the company hasn't shifted strategy, commenting, "We are leading now with Web sites and QB line instead of leading with Simple Start." He termed Simple Start "a blunt instrument" in the way it was used. Even with QB unit sales down, Intuit turned in a good performance for the third quarter ended April 30. Revenue hit $1.61 billion, up 13 percent from $1.4 billion a year earlier. Net income hit $576 million for the most recently ended period, up 18.8 percent from $485 million in last year's corresponding quarter. The company had good performance in several areas with revenue for its Financial Services up 21 percent, although that's still a small percentage of the total. TurboTax revenue was up 12 percent as Intuit cut into market share held by retail tax preparations and the company said its professional tax business, which rose 15 percent as some revenue had been shifted from the second quarter, had also taken share. Without the shift, there would have been a 10-percent increase.
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