Essentials and Beyond
‘Death and taxes’—part of a trite saying about eternal matters. Intuit’s innovative TurboTax software led to double-digit revenue growth, soaring from under $1 billion in the late 1990s to over $14 billion in FY23. Expanding during the Covid boom, Intuit diversified into consumer finance, email marketing, and digital ad services.
Gathering over 100 million customers across TurboTax, QuickBooks, Credit Karma, and Mailchimp, Intuit’s wide range of services taps into multiple economy segments with enduring appeal.
TurboTax stands as the face of Intuit, covering only 29% of FY23 sales, with Credit Karma at 11%. The remaining 56% came from small business and self-employed solutions through QuickBooks.
Growth Outlook
Projected to sustain a 12% revenue growth in both FY24 and FY25, Intuit forecasts continued expansion, aiming to escalate from $14.37 billion in FY23 to $18.00 billion in FY25. Expected to increase its adjusted 2024 earnings by 14%, Intuit anticipates a 15% bottom-line growth the following year.
Performance, Technical Levels & Valuation
Outpacing the Zacks Tech sector by 3,300% over the last two decades, Intuit has surged 80% in the past two years, overshadowing tech giants like Microsoft and Apple. Trading at 51.7X forward 12-month earnings, Intuit, though not a value stock, remains a favored choice for consistent growth over a decade.
Bottom Line
Intuit’s buyback of $2.7 billion in stock and a 15% boost in FY24 dividends amid a 0.5% yield manifests a commitment to shareholders. Backed by 24 of 29 brokerages with “Strong Buy” ratings, Intuit’s robust growth trajectory continues to captivate investors.