Intuit Inc posted better-than-expected third-quarter results on the strength of the company’s internet-based business. The Mountain View, California-based provider of financial software reported net income of $72.6m, or $1.12 per share, compared to a net loss of $2.2m in the year-ago quarter. Revenue for the quarter rose 68.8% to $239.7m. That total includes sales from the Lacerte tax software business, which was acquired in June 1998. Without Lacerte, revenue rose 48% year-over-year.
Excluding one-time items such as a $58.6m gain on the sale of securities and $20.9m in acquisition charges, earnings for the quarter were $0.73 per share, beating the First Call consensus by $0.03. On a pro-forma basis, year-ago earnings were $0.20 per share. For the nine-month period, net income was $113.2m on revenue up 46.7% at $697.6m, compared to net income of $26.9m last year. Earnings per share were $1.79, up from $0.54 last year. On a pro forma basis, earnings rose to $1.74 from $0.95.
The company says the solid numbers – in what is already its seasonally-strongest quarter – was fueled by internet-related revenues, the launch of QuickBooks 99 in January and strong growth in personal tax products, in addition to the Lacerte business. Internet commerce revenue, including electronic software distribution, grew to over 20% of overall revenue, more than double the same quarter a year ago.
The number of people using the company’s WebTurboTax product to file electronically rose to more than ten times the year-ago level. Overall, Intuit says its software was used in 70% of the electronically filed returns from individuals. On the retail side, over 4 million personal federal tax products were sold, with Turbo Tax bagging an estimated 70% retail market share.
