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INTUIT'S QBO, TURBOTAX SURGE Featured

Brad Smith, IntuitThe move to cloud products produced healthy results for Intuit for the second quarter ended January 31. The company this week reported it swung to net income of $24 million for the most recently ended period, compared to a loss of $66 million a year earlier. Revenue of $923 million was 23 percent higher than the $749 million for last year's corresponding period. "We are out of the gate strong in the first half of fiscal 2016," CEO Brad Smith said during this week's earnings webcast.

Intuit said the number of TurboTax Online units sold is up 12 percent and total TurboTax units increased by 9 percent over the prior year. With the number of returns filed with the IRS down 1 percent, the company is gaining marketshare from paid preparers, probably the tax stores. The company also said it had learned its lesson from last year's attempt to force desktop users to higher-priced editions and using pricing to try pushing QuickBooks users to QBO.  Last year, Intuit removed schedules C, D, E, and F from TurboTax Deluxe and made them available only in the Premier edition at a higher price. Smith apologized for the change and the company offered Premier buyers the $25 difference between the products. This week, Smith said Intuit had won most of the customers it lost from the move. He also said the price increase of $199 to $249 for desktop QuickBooks failed to spur migrations. "We will keep people who want to stay on desktop at least active," he said. The company added nearly 100,000 QBO subscribers during the quarter with the totals up 49 percent over the prior year. That brought the total to 1,257,000 QBO subscribers. Intuit's is also seeing strong growth for its QuickBooks Self-employed edition with about 50,000 subscribers there, up from 35,000 the prior quarter.

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