Intuit Payroll and Payments
Intuit recently announced Investor Day 2009 will be on September 24th. Intuit financial results and discussion are fascinating reading for anyone interested in small business finance. I have a lot of respect for Intuit, own some Intuit stock and use a few of their products.
Over at Slideshare there is a copy of the 2008 Intuit Investor Day Presentation, which I spent a few minutes digging through this evening in search of interesting insight.
One cool bit of data from the presentation is that revenue from Payroll and Payments exceeds revenue generated from Quickbooks, which was surprising to me since Quickbooks is far better known than Intuit’s Payroll and Payments products.
Payments and Payroll Exceed Quickbooks Revenue
Payroll and Payments revenue is also growing much faster than Quickbooks. If the trend continues it will constitute the nearly all of Intuit’s Small Business revenue within a few years.
Also interesting: Intuit generated that $561M in payroll and payments revenue from around 1.25M customers, averaging out to around $449 of revenue per year per customer. Furthermore, those customers tend to stick around for at least a few years. In contrast, a copy of Quickbooks Pro 2009 can be purchased for $200 at intuit.com and around $100 at amazon.com and those customers typically only buy a new copy of quickbooks every few years. It is no wonder that Intuit sees payroll and payments as an appealing business.