As someone who is constantly scanning the market for opportunities, I often hear of something and look up the ticker symbol only to find it is a private company or it’s a public company that either trades at too rich a valuation or isn’t that great of a business. Today is a good day because I have unearthed a great business that I wish I would have bought last year. Intuit Inc (NASDAQ:INTU) (reporting tomorrow after the close) is a growing business that develops financial software targeted at simplifying the life of consumers and small business owners. Intuit’s mission per their latest 10-K annual report:
“We are a global product and platform company that seeks to improve our customers’ financial lives so profoundly they can’t imagine going back to the old way.”
Their growth strategy is to be the operating system behind small business success and do taxes in the US and Canada. Intuit is organized under three reportable segments: Small Business, Consumer Tax and ProConnect.
Taking data from their fact sheet, I summarized some relevant facts below.
In the first quarter segment revenue grew 9% over the prior year quarter and segment income grew 4%. Quickbooks online subscribers grew 41%. The second quarter guidance reflects another 41% year over year growth in subscribers.