Intuit's Credit Karma Revenue Drove Outperformance in Fiscal Q3, RBC Says
Intuit reported strong fiscal Q3 results, driven by $115 million in Credit Karma revenue exceeding expectations, according to RBC Capital Markets. The Consumer segment also outperformed by $53 million. TurboTax Live customers grew by 24%, with revenue up 47% due to effective tax strategies. RBC raised Intuit's price target to $850 from $760, maintaining an outperform rating, as shares rose over 8% recently.
Intuit delivered a "solid" fiscal Q3 from a "strong" tax season, with lower-quality Credit Karma revenue mainly driving the outperformance, RBC Capital Markets said in a note Friday.
The firm noted that Credit Karma revenue was $115 million above consensus, followed by the Consumer segment, which was ahead of consensus by $53 million.
RBC also noted that TurboTax Live customers increased 24% and revenue rose 47% due to "continued success of assist tax strategy."
The firm added that the company saw a robust monetization across simple and complex filers, boosting average revenue per return by 13%.
RBC raised its price target on Intuit to $850 from $760 and maintained its outperform rating.
The company's shares rose over 8% in recent trading.
