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QBES ROLLS ON; UP 25 PERCENT

Brad Smith, IntuitQuickBooks Enterprise Solutions strengthened its growth in the second quarter ended January 31. Intuit reported there were 80,000 active subscribers at the end of the period, a 25-percent increase from 64,000 a year earlier. That was up 4,000 subscribers or 5.2 percent from the prior quarter. Since sequentially quarterly growth has usually been an increase of 2,000 to 3,000 active subscribers, the 4,000-unit increase from the first to second quarter was an improvement.

You have to wonder if the dip in license revenue reported for the December quarter by several companies if some users were turning to QBES as well as to the cloud. On the broader QuickBooks front, there were 430,000 QuickBooks Online subscribers at the end of the quarter, an increase of 28 percent from 336,000 a year earlier. CEO Brad Smith noted that swift rise, along with double-digit increases in other online services such as payroll and payments. However, while sales of desktop QB units dropped to 307,000, 18 percent, desktop subscriptions were up 25 percent to 175,000. The company expects desktop unit sales to drop about 5 percent this year and revenue from that source about 1 percent as customers continue to move online.

 

 

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