Tax-preparation software provider Intuit Inc. on Thursday forecast profit and sales for the fiscal year ahead that were above Wall Street's expectations, although its first-quarter outlook came up short, as it tries to prepare for a world of AI-driven financial assistance.
After initially rising more than 2%, shares ended the extended session down 0.7%.
The company - known for TurboTax, Credit Karma, QuickBooks and Mailchimp - said it expected sales of $18.16 billion to $18.347 billion for its fiscal 2025, which is set to finish at the end of next July. The midpoint of that forecast was better than FactSet estimates for $18.16 billion.
Intuit $(INTU)$ said it expected full-year adjusted earnings per share of $19.16 to $19.36. FactSet estimates called for $19.10 a share.
For its first quarter, Intuit forecast revenue growth of "approximately 5 to 6 percent," helped by its online products. But those expectations were below Wall Street's, as a revamp of its QuickBook desktop offerings to rely more on subscriptions shakes up the timing of when the company recognizes sales.
The company said it expects sales for its desktop-software products to drop roughly 20% during the first quarter, with a rebound in the second. Intuit forecast first-quarter adjusted earnings per share of $2.33 to $2.38, below FactSet forecasts for $2.78.
Intuit made the forecast after announcing a 10% staff cut last month, part of an effort to free up room to invest in artificial intelligence. It also reported earnings in the wake of the key tax-filing season in April, and as stubborn inflation poses a bigger threat to the budgets of smaller businesses - the type that comprise a big chunk of Intuit's sales.
The company is trying to expand the capabilities of Intuit Assist, an AI financial assistant, and build out "AI-powered experts" - and use more human ones, available in real-time - to offer assistance to small businesses and other customers. Intuit is also trying to digitize the process for invoicing and bill-paying, and expand Mailchimp and QuickBooks abroad.
Intuit on Thursday reported a fiscal fourth-quarter net loss of $20 million, or 7 cents a share, contrasting with a profit of $89 million, or 32 cents a share, in the same quarter last year. Adjusted for things like share-based compensation costs and restructuring, Intuit earned $1.99 a share.
Revenue jumped 17% to $3.2 billion, helped by an increase in demand from businesses. However, demand from individual users slipped, as some people seek to do their taxes elsewhere, amid an effort by the company to place less priority on users who file for free and upsell customers on its other services.
Analysts polled by FactSet expected Intuit to report adjusted earnings per share of $1.85, on revenue of $3.09 billion.
Shares of Intuit are up 6.4% so far this year.
