Intuit Inc. stock prices are dropping fast after it lost 1 million consumers compared to last year.
According to the California-based software developer, only 10 million people used its free TurboTax service, which is down by a million from its numbers last year. In addition to this, the company’s market share and stock price all dropped. The latter, in particular, experienced its worst intraday decline in nearly two years.
Despite the downward trend, Intuit remains committed to improving its services. Specifically, it’s now looking to cater to customers facing more complicated tax situations as it promotes new features like online expert assistance and artificial intelligence.
Furthermore, Intuit’s other investments are making up for the deficiency. Despite the drop in the number of free users, the average TurboTax user is spending at least 10% more filings this year compared to last year.
The period, which ended on April 30, is significant for the company as its profit was beyond the expectations of Wall Street at $9.88 per share. In addition to this, the company’s fiscal third-quarter revenue jumped by 12% to $6.74 billion.
As Intuit strives to improve to adapt to the changing market dynamics, it will be interesting to see if it will continue its current course. The numbers tell a complicated story. Only time will tell if Intuit’s current direction will steer it towards a better future.