ntuit misses by $0.08, beats on revs; guides Q1 below consensus; guides FY15 EPS and rev below consensus; guides long term
Reports Q4 (Jul) loss of $0.01 per share, excluding non-recurring items, $0.08 worse than the Capital IQ Consensus of $0.07; revenues rose 12.6% year/year to $714 mln vs the $699.56 mln consensus.
Co issues downside guidance for Q1, sees EPS of ($0.20)-(0.21), excluding non-recurring items, vs. ($0.04) Capital IQ Consensus; sees Q1 revs of $620-630 mln vs. $680.08 mln Capital IQ Consensus Estimate.
Co issues downside guidance for FY15, sees EPS of $2.45-2.50, excluding non-recurring items, vs. $3.97 Capital IQ Consensus; sees FY15 revs of $4.75-4.85 bln, excluding non-recurring items, vs. $4.85 bln Capital IQ Consensus Estimate. This adjusted revenue guidance takes into account the expected increase in deferred revenue due to the change in future desktop product offerings, as well as acceleration in QuickBooks Online ecosystem growth, which impacts near-term revenue growth as customers pay monthly subscription fees.
These results factor in the co's strategic decisions to invest in the acceleration to cloud-based subscriptions and to improve the company's future desktop offerings to encourage migration to online services. As a result, desktop software license revenue will be recognized as services are delivered, rather than up front.
Looking beyond fiscal 2015, the co shared financial targets for fiscal 2017:
Revenue of ~$5.8 billion, 9% growth on average over the next three years. Non-GAAP earnings per share of ~$5.00, compounded annual growth of 13%. QuickBooks Online subscribers of ~2 million, an increase from 683,000 at the end of fiscal 2014, compounded annual growth rate of more than 40%.