Intuit Inc. (NASDAQ:INTU) shares fell on Thursday after the company reported third-quarter results on Wednesday, announced a 17% workforce reduction, and issued a weaker-than-expected outlook.
Weak Tax Filing Trends Pressure Shares
Despite the earnings beat, investors focused on weakening tax filing trends, lower TurboTax online volumes, restructuring plans, and softer guidance.
CEO Sasan Goodarzi said total IRS filers are expected to decline about 30 basis points this season, representing an industry-wide contraction of roughly 2 million filings since the post-COVID period.
TurboTax online units are expected to decline about 2%, while pay-nothing customers fell to 7 million from 8 million.
Goodarzi said “we lost on price” among the most price-sensitive DIY filers earning less than $50,000 annually.
Management said the company plans to “evolve our business model” as customers increasingly spend more on tax and accounting experts than software alone.
Intuit plans to launch an expanded lineup of AI-driven expert platforms in August.
Q3 Results Beat Estimates
Intuit reported third-quarter revenue of $8.56 billion, topping …