Intuit ( INTU Quick Quote INTU - Free Report) recently unveiled its new all-in-one payment and banking solution, QuickBooks Money. The new solution comes with no requirements for minimum balance and monthly fees. QuickBooks Money is targeted toward the company’s Small Business and Self-Employed Group segment, which accounted for 56% of total revenues in fiscal 2023 compared with 51% in fiscal 2022. This new solution is built on Intuit’s most popular financial management and accounting platform, QuickBooks. In fiscal 2023, on a year-over-year basis, QuickBooks Online Accounting revenues grew 26%, online services increased 34% and QuickBooks Desktop Enterprise revenues surged more than 20%. QuickBooks Money was originally launched as Money by QuickBooks, a free mobile app, which was released in 2021. The latest solution is an upgrade that features web-based interface and other invoicing & banking features. The addition of a much simpler product like QuickBooks Money to INTU’s portfolio is likely to boost user base, especially small businesses, which aren’t already using the company’s products due to complexity.
The new product will cater to the business owners, who do not initially require all the features offered in QuickBooks but need a simple tool to manage finances and receive payments throughout. They can later move to QuickBooks when they need additional tools.
Additionally, the app comes with a feature called Envelopes, allowing users to create virtual containers in which they can allocate funds based on their various financial goals. Users will also earn interest rates, under the annual percentage yield scheme, based on the funds in the envelopes. Intuit Benefits From Robust Product Portfolio
The company has an extensive portfolio of solutions, such as TurboTax, Credit Karma and Mailchimp, which are focused on generating revenues from small businesses based on the subscription model.
INTU recently introduced a new Generative AI-based feature, Intuit Assist, to all its major solutions, including Intuit TurboTax, Credit Karma, QuickBooks and Mailchimp. Intuit Assist is powered by GenOS, which is built on OpenAI’s large language model. It leverages Intuit’s ecosystem and database to offer personalized recommendations to both Business-to-Cunsumer and Business-to-Business customers. The company is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. Moreover, the company’s strategy of shifting its business to a cloud-based subscription model will help generate stable revenues. Intuit expects double-digit revenue growth and margin expansion in fiscal 2024. For the fiscal first quarter of 2024, Intuit expects revenues to grow between 10% and 11% on a year-over-year basis in the band of $2.86-$2.895 billion. Non-GAAP earnings for the quarter are estimated in the range of $1.94-$2 per share. Zacks Rank & Stocks to Consider
Currently, Intuit carries a Zacks Rank #3 (Hold).
Shares of INTU have returned 40.7% year to date compared with the Zacks Computer and Technology sector’s rise of 38.1% in the same time frame. Asure Software ( ASUR Quick Quote ASUR - Free Report) , Palo Alto Networks ( PANW Quick Quote PANW - Free Report) and Freshworks ( FRSH Quick Quote FRSH - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Asure sports a Zacks Rank #1 (Strong Buy), Palo Alto Network and Freshworks carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of Asure, Palo Alto and Freshworks have returned 21.3%, 76.2% and 39.8%, respectively, on a year-to-date basis. Long-term earnings growth rate for Asure, Palo Alto and Freshworks are pegged at 27%, 30% and 27.81%, respectively.