Turbo Tax Sales Down 5 Percent

 

turbotaxMOUNTAIN VIEW — Intuit Inc., maker of popular TurboTax software, has released the first of two seasonal updates for its  consumer tax offerings. Through Feb. 18, sales of TurboTax units declined 5 percent versus the comparable prior-year period as the tax season is off to a slow start for all preparation methods.

The most recent Internal Revenue Service data through Feb. 17 shows total e-filed returns down 13 percent while self-prepared e-filings were down approximately 11 percent and assisted e-filings down 16 percent.

“As we previously shared, the tax season is forming more slowly this year across the industry,” said Dan Wernikoff, executive vice president and general manager of Intuit’s TurboTax business. “TurboTax e-filed returns are down 10 percent vs. prior year, indicating we are maintaining share at this juncture in the tax season.

“While the competitive environment continues to change, our end-to-end product innovations, marketing strategy and expert advice are reaching a broader range of consumers and convincing them that TurboTax is the right choice for them.

“Through the second half of the season we remain focused on delivering for customers and continuing to grow share in the do-it-yourself software category. Everyone must file by April 18, so it’s on us to continue to deliver the best offerings across the board,” Wernikoff said.

Season-to-date TurboTax Federal Unit Data

Season through
Feb. 18, 2017

Season through
Feb. 20, 2016

Change
Year-Over-Year

TurboTax Desktop 3,830,000 3,954,000 -3%
TurboTax Online 14,025,000 14,957,000 -6%
Sub-total TurboTax Units 17,855,000 18,911,000 -6%
TurboTax Free File Alliance 471,000 464,000 2%
Total TurboTax

Units

18,326,000 19,375,000 -5%

Full-year Guidance

Intuit also reported second-quarter earnings of $1.016 billion, a 10% increase. Net income for the quarter was $13 million.

Total QuickBooks Online subscribers grew 49 percent, to more than 1.87 million subscribers.

Intuit will issue a final tax season update in April after the close of the tax season.