Investing.com -- Shares in Intuit Inc (NASDAQ:INTU) fell in premarket U.S. trading on Wednesday after the business software firm reported disappointing third-quarter revenue and unveiled a weaker-than-anticipated outlook for the final three months of its 2023 financial year.
The company, known for its tax-preparation product TurboTax and QuickBooks accounting tools, reported a 7% uptick in sales in the three months ended on April 30 to $6.02 billion. However, the figure was around 1% below estimates, according to analysts at Wolfe Research.
California-based Intuit noted that many Americans who filed taxes during the pandemic to receive federal stimulus funds failed to deliver their returns this season. Total tax filings are seen declining by around 2% in its current fiscal year, while TurboTax's share of these returns is projected to slide by approximately 80 basis points.
Meanwhile, elevated interest rates also ate into the performance of Intuit's Credit Karma personal finance platform, where revenue fell by 12%.
Despite these headwinds, quarterly income of $8.92 per share still managed to top projections of $8.48.
But the company said it predicts that fourth-quarter adjusted earnings per share will be between $1.43 to $1.48, which, according to Refinitiv data cited by Reuters, would be below expectations of $1.51.
Chief Executive Sasan Goodarzi noted in an earnings call that the group had invested heavily in building up its data and artificial intelligence capabilities. Intuit is in a race to enhance its offerings in a bid to fend off competitors like Oracle's (NYSE:ORCL) NetSuite and Microsoft's (NASDAQ:MSFT) Dynamics 365 Platform.
Additional reporting by Scott Kanowsky.
Reuters contributed to this report.