Intuit beats estimates on AI-driven tool demand, shares down on Q2 guidance miss

Investing.com - Intuit Inc (NASDAQ:INTU ) on Thursday reported better-than-expected quarterly results but shares fell more than 5% in premarket trading Friday on Q2 guidance miss.

The maker of TurboTax, Credit Karma, and QuickBooks has capitalized on the rising adoption of its AI-driven offerings, which provide personalized financial recommendations and automate tasks like bookkeeping.

Revenue for the first quarter, ended Oct.31, grew about 10% to $3.28 billion, while the estimates were of $3.18 billion. Excluding items, it earned $2.50 per share, ahead of the consensus of $2.36 per share.

"We are confident in delivering double-digit revenue growth and margin expansion this year, and we are reiterating our full year guidance for fiscal 2025," said Sandeep Aujla, Intuit 's chief financial officer.

The QuickBooks Online software package was the second biggest contributor to the revenue beat, with growth accelerating to 21% year-over-year in the quarter.

The revenue upside yielded $41 million in upside to non-GAAP operating income, but an operating margin of 29% came in just in-line with consensus.

The company projected full-year revenue between $18.16 billion and $18.347 billion, implying growth of approximately 12 to 13 percent.

In its guidance for the second quarter of fiscal year 2025, which ends January 31, the company projected revenue in the range of $3.812 billion to $3.845 billion, below the consensus of $3.875 billion. 

"Promising acceleration in Online Ecosystem growth and a large pop in Credit Karma were balanced by limited operating margin outperformance in the quarter and a weaker than expected Q2 guide," Morgan Stanley (NYSE:MS ) analysts commented. 

"With the FY25 guide left unchanged, this debated stock likely remains debated," they added. 

Stifel analysts shares more bullish comments, saying they are "buyers on weakness" in stock as they "do not expect a DOGE Tax app anytime soon and believe the company is a clear beneficiary from stronger economic growth." This should enable Intuit to post durable double-digit growth over coming years as up-market, Live and AI initiatives ramp.

The company said it was expecting a single digit decline in its Consumer Group revenue due to some promotional changes in retail channels largely related to its desktop offering. Despite the beat, shares slumped more than 8% around $622 in the extended trading.  

Pratyush Thakur contributed to this report. 

 

Source: Investing.com