Intuit, Inc. (INTU)

nicogrande1 (< 20) Submitted: 6/01/08 7:37 PM

Recs: 0 | Rec This

Called intuit last week after reading the turbo tax support board. if you dont know they had a horible mistake which they blame on IRS (but the consensus is that it was intuit's blunder). if you paid your filing fees or your owed tax on time using direct deposit(or cc, i think) and asked for your rebate check to be direct deposited- it wont happen. mine was due may 9 but will be receiving it by mail june 29. this has happened to a huge amount of their customers. 2 points: there is a LOT of anger on the turbotax board, people,like me, who have used them for 10 years are adament that they wont use the product again. also there was a lot of people that said they called intuit and were immediately given refunds for the software. i called and quickly got refunds to my cc for both the softwae and the e-filing.94bucks. in talking to the support person on the phone it was clear that anyone with this issue can simply call and get the refund and that it is company policy to give it to all that ask. he also said that everyone that is calling is furious. i dont know how you quatify the loss of revenue for this past tax year or the number of lost repeat customers but it sure is tempting to short them. this info isnt very public but its real. any thoughts?
nico

Report this Post Reply

pontiki (77.05) Submitted: 6/02/08 1:17 AM

Recs: 0 | Rec This

They reported earnings last week, which included very strong consumer tax revenue growth of 16% on 7M+ tax returns. Their total revenue was $1.3B for the quarter. I hadn't heard of the problem you mention, but their tax performance (from a business perspective) was very solid despite whatever problems you encountered. With a revenue number that high, they'd have to have granted a *LOT* of refunds to hit the bottom line. Not sure how the problem will affect customer retention but, again, I doubt enough people are effected to cause serious problems.

From a consumer's perspective, I'm surprised (and impressed) that they offered refunds - that seems quite generous.

I'd add that performance for the next 3 quarters will be driven principally by Quickbooks division sales. That division has been under performing the last two quarters (result of current economic funk?), so I'm a bit worried. That said, there is FAR less risk and recession exposure in INTU compared to natural resources, commodity, financials, and consumer product companies. If you expect a market correction this summer/fall (as I do), I consider INTU safe money. I wouldn't recommend shorting.

Report this Post Reply