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QUICKBOOKS ONLINE SOARS Featured

Brad Smith, IntuitThe momentum of QuickBooks Online shows no sign of letting up. Intuit this week reported that it ended its third quarter on April 30 with 1,397,965 subscribers of the cloud product, an increase of 44.8 percent from last year's corresponding period. In this week's earnings webcast, CEO Brad Smith noted the fact that 80 percent of subscribers have not previously been Intuit customers—in line with the trend for the online financial product.

At the current pace, Smith said Intuit expects to have 2 million to 2.2 million subscribers when the fiscal year ends on June 30, 2017. Intuit also made progress outside the United States, ending the quarter with 250,000 subscribers, a 25-percent rise. "We're improving customer retention and fully expect retention to continue to improve next year, as more of our QBO customers are acquired through and work with accountants," Smith said in his prepared remarks. The company reports having more than 100,000 QBO Accountant customers with more than three clients; double a year ago. Intuit is also making progress in getting customers for its other applications to buy QBO. About 40 percent of online payroll customers use QBO and Intuit expects that number to grow by 25 percent this year. For payments, half of those customers subscribe to QBO and that base is expected to increase by more than 50 percent this year.

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