Intuit, known for products like TurboTax, Credit Karma and QuickBooks, has benefited from growing demand for its AI-powered offerings, which provide personalized financial recommendations and automation of specific tasks like accounting.
Shares of the Mountain View, California-based company initially gained more than 2% in extended trading, but then reversed course as investors digested a forecast due to first-quarter revenue growth that was below market expectations.
Earlier this month, Intuit rolled out price increases for QuickBooks, introducing new features to attract customers.
“Our momentum both in the first quarter and looking ahead to next year is coming from our customers’ growth with both QuickBooks Online and QuickBooks Advanced,” Chief Executive Sasan Goodarzi told Reuters in an interview.
“We’re adding nearly 1,000 people who will focus on a number of areas, particularly around AI,” Goodarzi said.
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The AI-focused hire follows a major workforce restructuring. In July, Intuit announced plans to lay off 10% of its workforce, or about 1,800 employees. Intuit expects fiscal 2025 revenue to be between $18.16 billion and $18.35 billion, slightly above the median analyst estimate of $18.18 billion, according to LSEG data.
The company, which also announced a new $3 billion share repurchase authorization, expects full-year adjusted earnings per share to be between $19.16 and $19.36, versus estimates of $19.15.
First-quarter revenue growth is expected to be between 5% and 6%, below expectations for 13.1% growth, as it transitioned its QuickBooks desktop products to a recurring subscription model.
Intuit expects these changes to reduce first-quarter revenue by approximately $160 million.
Fourth-quarter revenue came in at $3.18 billion, beating the $3.08 billion estimate. Excluding one-time items, it earned $1.99 per share, compared with the $1.84 per share estimate.
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