Intuit knows that good accounting takes more than a pocket calculator. The company is a leading developer of software used to manage personal finances (Quicken), small business accounting (QuickBooks), and consumer tax preparation (TurboTax). Customers include consumers, accountants, and small businesses; Intuit claims more than 50 million users for its products and services. Other software offerings include industry-specific accounting and management applications for construction, health care, and retail organizations. Intuit also provides payroll services, financial supplies, and software for professional tax preparation, as well as products and services geared for financial institutions.
ersIntuit believes the ease of use of its products give it a competitive edge over rivals, especially for its consumer-oriented offerings, such as TurboTax and QuickBooks, which account for the majority of sales. The ubiquity of its products in prominent retail locations also gives the company an edge in the consumer space that competitors such as H&R Block, Sage, and Microsoft struggle to match.
Most of the company's sales are made in the US, but it has key international offices and facilities in Canada, the United Kingdom, and India. Its presence in the Asia Pacific region comprises offices in Hong Kong, Singapore, Sydney, and Tokyo.
Intuit's sales and net income continued their upward march in 2012, with total revenue reaching $4.1 billion (representing a 10% increase over the previous year) and profits rising to $792 million; the company's profit margin was 19% for the year. The company attributed growth largely to its small business division, although its other product segments, including financial management, employee management, and payment solutions, also reported sales growth. Operating costs were higher for the year in part due to expenses associate with staffing and compensation.
The company's strategy is focused on ensuring that Intuit products and services are all accessible online and can be accessed via desktops, laptops, and mobile devices, as well as through social communities such as online forums and social media sites.
Acquisitions in recent years have supported this effort, including the 2011 purchase of the mobile Web banking technology assets of Mobile Money Ventures (MMV). MMV's technology was used by about 400,000 consumers to access banking services from mobile devices.
The company has also used acquisitions to expand further beyond the consumer finance and accounting markets, adding products for small and midsized businesses and industry-specific accounting and health care applications, among others. In 2010 Intuit purchased Medfusion for $91 million in cash. Medfusion provides software tools and services that improve communication between patients and health care providers, including applications for patients to schedule appointments, access patient information online, and to settle and track health care expenses. Shortly after buying Medfusion the company formed a new division, Intuit Health, that combined Medfusion and Quicken Health Group.
In 2012 the company paid $423.5 million in cash to buy San Francisco-based Demandforce, a provider of hosted software used to automate marketing and customer communications. The acquisition furthered Intuit's expansion into software-as-a-service (SaaS) products for small and midsized businesses to address demand among many companies for cloud-based software delivery. Demandforce's e-mail, mobile, and social tools are used in such industries as automotive and health care. – less