Intuit beats Q3 estimates but announces 17% workforce reduction, weighing on shares despite strong segment growth.
Intuit Inc shares fell nearly 19% after the company reported fiscal third-quarter revenue of $8.56 billion, up 10.4% year-over-year and above analysts’ $8.52 billion estimate. Adjusted earnings reached $12.80 per share, surpassing the $12.48 consensus. Consumer revenue grew 8% to $5.3 billion, while TurboTax revenue rose 7% to $4.4 billion.
The company’s Global Business Solutions segment saw a 15% revenue increase to $3.3 billion, with Online Ecosystem revenue climbing 19% to $2.5 billion. Excluding Mailchimp, these segments grew 17% and 22%, respectively. Despite the strong quarter, Intuit plans to cut 3,000 jobs, or roughly 17% of its workforce, overshadowing the results.
TurboTax Live revenue is projected to grow 36% to $2.8 billion for the full fiscal year, making up 53% of total TurboTax revenue. The company expects TurboTax Live customers to rise 38%, but investors focused on the layoffs and long-term concerns about TurboTax growth.