Intuit Inc. (INTU) recently announced the Intuit Online Payroll for Google Apps (formerly PayCycle).
This online payroll is available to small business owners on the Google Apps Marketplace; Google’s recently launched online storefront for Google Apps products and services.
Intuit Online Payroll will also soon be available on Intuit’s own App Center with Web applications designed for small businesses.
In 2009, Intuit acquired online Payroll services provider PayCycle Inc. for about $170 million. PayCycle specializes in serving small businesses, accountants and financial institutions, and has more than 85,000 small-business users.
With the acquisition of PayCycle and more than one million payroll customers, management wants to ensure that small businesses are well catered to. So, in addition to its own Intuit App Center, business owners will be able to use Intuit Online Payroll within Google Apps.
Intuit Online Payroll for Google Apps gives employers the ability to manage payroll with the online convenience of Google Apps. Employers and employees can use Intuit Online Payroll whenever and wherever they need it and also continue to work on other office applications, such as e-mail or word processing without logging into another site or launching another program.
Meanwhile, the Intuit Small Business Employment Index has indicated that small businesses are showing signs of recovery. This index is a new, monthly report that provides unique, near real-time insight into employment trends in the smallest of small businesses.
Intuit bases its report on data from businesses with fewer than 20 employees, which comprise 87% of the total U.S. private employer base. Employment for these small businesses began trending upward in mid-2009.
Strong Second Quarter
Last month, Intuit reported results for the second quarter, which topped estimates and raised its outlook for the rest of fiscal 2010. Revenue of $837 million in the second quarter of fiscal 2010 was up 8% year over year and was more than the top-end of the guidance provided by management of $20 million. Earnings per share (EPS) came in at 38 cents, easily beating the Zacks Consensus Estimate of 25 cents.
Based on a strong first half, particularly in the tax business, Intuit raised its full-year revenue and earnings guidance.
For fiscal year 2010, Intuit now expects revenue to grow around 6% – 9%, implying a revenue guidance of $3.3 billion – $3.4 billion. The company earlier expected revenues to grow around 4% – 8%. Operating margin is estimated at 30% or more.
EPS is projected between $1.97 and $2.04, up from the previous projection of $1.89 to $1.96. The third Quarter is a seasonally strong quarter for the company. For the third-quarter, Intuit estimates revenues between $1.51 billion and $1.59 billion, up 7% – 12%. EPS is forecasted between $1.75 and $1.85.
California-based Intuit is a leading provider of business and financial management solutions. Its flagship products and services include QuickBooks, Quicken and TurboTax.
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