Intuit’s (INTU) Q4 2016 Results

posted in: Earnings Call, Notes | 0

Brad Smith – Chairman and CEO

A strong financial year

“To sum it up, fiscal 2016 was a strong year from start to finish. The QuickBooks Online ecosystem is driving Small Business growth and our tax businesses are celebrating a successful season. We are heading into fiscal 2017 with the wind at our backs, and we have some exciting plans underway as we look ahead.”

A healthy growth rate

“So, for those who are looking at the fact sheet, the total paying customers were up 23%. We saw healthy growth across the board. We saw QuickBooks Online subs at 41%. We saw the desktop customers growing 8%…And so there is just healthy growth across the board. ”

…Customers are slow to move to the cloud

“…the number of migrations who moved from desktop to QuickBooks Online this year within our own customer base was up 25%. So we have done work with our customer base in the desktop to figure out why they aren’t interested in the cloud. And reasons one through five are all basically, I am not ready to move to the cloud. I don’t want to put my data in the cloud. I don’t want to move to a subscription service. My current product is working just fine. My accountant is working with me and they have got a desktop version.”

They are ready to work with whoever wins  the US election

“…at this point, we just want to remain focused on working with whoever ends up winning the election. We are big supporters of tax simplification. That’s the business we are in. We are big supporters of voluntary compliance, which is helping people voluntarily file their taxes. And if the government disagrees, let the government contest that. And at the end of the day, we want to make sure we are helping people keep their hard earned dollars in their pocket, only pay the stuff that they owe the government. And so whether it’s a Republican, a Democrat, an independent, we have a lot of years of working with both sides to try to make sure that we keep those three things front and center.”

Some modest price increases done

“…we did just pass through a modest price increase in QuickBooks Online. It’s gone out to the new customers. And we are in the process of rolling it out to existing base. ”