In spite of its divestiture decision, Intuit launched new Quicken version
In the previous part of the series, we looked at Intuit’s (INTU) fiscal 1Q16 results and its reporting structure. We also saw that in fiscal 4Q15, Intuit announced the divestiture of three of its software products: Quicken, Demandforce, and QuickBase. This is intended to accelerate growth in QuickBooks and cloud-based tax and small business accounting services.
In fiscal 1Q16, Quicken, Demandforce and QuickBase together generated revenue of $59 million, a 3% decline on a YoY (year-over-year) basis. In spite of Intuit’s decision to divest Quicken, it released Quicken 2016 in mid-November 2015. It’s the newest version of its 32-year-old personal finance program. It did this even in the midst of selling Quicken so it can focus on cloud-based tax and small business accounting services.
Intuit’s vision to become a cloud company compelled it to divest select offerings
Intuit is trying to evolve from a traditional packaged software company to a cloud-based services and platform company. As part of that plan, Intuit is attempting to migrate its legacy desktop QuickBooks users to QuickBooks Online.
In the 1990s, Microsoft wanted to acquire Intuit for $2.3 billion. If the acquisition had been approved, Microsoft would have had a significant hold on personal finance management (or PFM) space. However, the U.S. Department of Justice wouldn’t approve the deal and filed an anti-trust complaint that blocked the acquisition. It stated that if Microsoft acquired Intuit, it would have almost a monopoly on the US PFM market.