Despite a slowing economy, Intuit Inc. (NASDAQ: INTU) continues to eke out growth. In the latest quarter, revenues increased 8% to $481 million.
The good news is that the company has a diversified array of revenue streams – such as with tax preparation, payroll and small business software – that have strong market positions and customer loyalty.
Unfortunately, it looks like the U.S. economy is getting worse – and that means some more weakness for Intuit. Going into the next quarter, the guidance is for revenue growth of 3% to 5%.
Essentially, there are three main drags. First, there has been a fall in merchant transaction volume, which is probably a result of the deterioration of consumer spending. Next, the number of new QuickBooks users has fallen -- perhaps a key reason is that people have a difficulty getting credit to start up businesses. Finally, there are slowdowns in segments like real estate and Quicken.
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