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Intuit’s QuickBooks Paying Customer Base Grows

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Analyzing the key catalysts

Intuit’s (INTU) QuickBooks paying customer base has grown in the last five quarters, buoyed by a robust increase in QuickBooks online subscribers and slightly offset by a decline in QuickBooks desktop unit sales. The launch of customer-friendly products backed by better customer service facilities continues to act as a strong catalyst for subscriber growth. The company’s aggressive customer acquisition strategies and international expansion goals may lead to further subscriber growth.

The graph above shows Intuit’s QuickBooks paying customer growth in the last five quarters. It has maintained an upward trend, growing at a compound annual rate of 9%.

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Subscriber growth

In fiscal 2Q18, Intuit’s QuickBooks paying customer base stood at nearly 3.7 million, marking a 37% increase YoY (year-over-year). In the quarter, the company added ~458,000 subscribers, versus 514,000 in fiscal 2Q17. In the last two quarters, it has added around 533,000 customers at an average of ~267,000 subscribers every quarter.

In fiscal 2Q18, it had ~2.8 million QuickBooks online subscribers, compared with 1.9 million in fiscal 2Q17. During the same period, the company added ~275,000 subscribers, marking an 18% rise YoY. In the last two quarters, it has added ~444,000 customers at an average of ~222,000 subscribers every quarter. Therefore, the launch of popular products such as TurboTax Live may not only drive subscriber growth but also safeguard its position against other financial service providers such as H&R Block (HRB) and PayPal (PYPL).

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