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QBO BUSINESS RACES PAST $1 BILLION Featured

Intuit’s QuickBooks Online Accounting segment continued its rapid growth, blowing by the $1 billion revenue mark for the year ended July 31. The segment had $1.35 billion in revenue for the most recently reported period, up 38.2 percent from a year earlier.

That was spurred by customer growth but also by a QBO price increase that started to roll out in the first quarter, although the change was delayed during the second half because of the impact the COVID-19 outbreak was having on customers. The segment includes more than just the cost of the products as total product revenue for the company was $1.64 billion for the year just ended. The rest is services. Intuit said new customer acquisition for QBO in the fourth quarter accelerated by roughly 10 points from the second half of the third quarter, but was still down 5 points from pre-COVID levels. Despite the crisis, the company turned in a strong performance. Net income for fiscal 2020 was $1.83 billion, an increase of 17.3 percent from $1.56 billion a year earlier. Revenue for the most recently ended year of $7.68 billion was 13.2 percent higher than $6.78 billion the prior year. The economic slowdown dented QB desktop revenue, which was still $755 million for the year,  5.6 percent-growth from $715 million in fiscal 2019. CEO Sasan Goodarzi said revenue for QuickBooks Enterprise Solutions, revenue grew by “mid-single digits”. Before the last two quarters, QBES had been reported growing in double digits.

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