Intuit (NASDAQ:INTU), the financial software company known for products like TurboTax and Quicken, has decided to shutter Mint, its popular personal finance app, and is urging its user base of 3.6 million to transition to Credit Karma, another of its platforms. The integration process is slated for completion by January 1.
The move has stirred discontent among Mint's users, as Credit Karma lacks some of the budgeting tools available on Mint. Users will be able to migrate their financial accounts, historical balances, and net worth graph to Credit Karma, but will lose the functionality of setting and categorizing monthly budgets.
Mint was acquired by Intuit in 2009 for $170 million when it had approximately 1.5 million users tracking nearly $50 billion in assets and $200 billion in transactions.
Sasan Goodarzi, CEO of Intuit, stated that Credit Karma generated a revenue of $1.6 billion in the fiscal quarter ending July 31. He anticipates a long-term annual revenue growth rate of between 20 to 25 percent. Credit Karma currently serves a user base of 130 million with personalized loan recommendations and credit score improvements.
As a result of Mint's closure, other personal finance apps such as Monarch have seen an uptick in new users. Val Agostino, CEO and co-founder of Monarch, opined that it would not be financially prudent for Intuit to continue investing in both Mint and Credit Karma due to high operating costs.
This development comes at a time when American consumers are grappling with increasing credit card debt. The Federal Reserve Bank of New York recently reported that U.S. credit card balances have surged to over $1 trillion following the resumption of student loan payments. Credit card balances rose by over 16 percent in Q2 compared to the same period last year, indicating rising levels of consumer debt. Other popular budgeting apps in the market include PocketGuard, Simplifi, and You Need A Budget.
InvestingPro Insights
Intuit, the company behind Mint and Credit Karma, is a prominent player in the Software industry, boasting high earnings quality, with free cash flow exceeding net income. This is one of the key InvestingPro Tips for Intuit. The company has also managed to maintain its dividend payments for 13 consecutive years, demonstrating a stable financial position.
In terms of real-time data from InvestingPro, Intuit has an impressive market cap of 139.76B USD and a P/E ratio of 58.82 as of the end of Q4 2023. The company's revenue for the last twelve months as of Q4 2023 was 14.37B USD, showing a healthy growth of 12.9%.
This data and the InvestingPro Tips demonstrate Intuit's financial stability and potential for growth, which is especially relevant given the recent decision to shutter Mint and focus on Credit Karma. For those interested in further insights, InvestingPro offers an additional 14 tips specifically for Intuit.
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