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TurboTax Shifts to Higher-Paying Filers

Intuit is shifting away from an emphasis on free-filers and the lower-paying cusomters in its TurboTax business. 

During the company’s recent earnings webcast for the third quarter April 30, CEO Sasan Goodarzi noted in the reporting period, “we strategically prioritized focusing on the assisted tax segment and higher-value customers over the pay-nothing and lower ARPR segment.” The company did not specify the dollar amounts that define those segements.

In addition, CFO Sandeep Aujla said Intuit is yielding share with the pay-nothing and lower-paying filers. For fiscal 2024, “we expect our share of total consumer returns to decline approximately 80 basis points this year,” Aujla said.

The company expects a 12-percent increase in TurboTax Live customer for the year, with a 2-percent rise in online paying unit. Intuit anticipates TurboTax Live revenue will be $1.4 billion for the year, 17-percent increase.

Consumer Group revenue—the TurboTax business—reported $3.65 billion in revenue,, an increase of 9 percent from $3.34 billion in last year’s corresponding quarter.

On the professional side, revenue for the ProTax Group rose to $254 million for the most recently ended quarter, up 3 percent from $246 million a year ago. Intuit expects revenue from this sector to increase by 6 percent to 7 percent for the year.

Total revenue for the third quarter was $6.74 billion, rising from $6.02 billion in last year’s corresponding period. Third-quarter net income was $2.39 billion, an increase of 14.5 percent from $2.09 billion a year earlier.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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