Last month, cloud-based accounting and tax giant Intuit (NASDAQ: INTU) reported a strong second quarter that beat analyst estimates. However, its soft outlook is causing analysts to ponder the growth rate question.

Intuit’s Financials

Founded in 1983, California-based Intuit reported revenue of $5.2 billion in fiscal 2017, growth of 10.3%. It serves 46 million customers and has about 8,200 employees in major offices in the United States, Canada, India, the United Kingdom, Israel, Australia, and other locations.

Its flagship products and services include QuickBooks®, TurboTax®, which make it easier to manage small businesses and tax preparation and filing. QuickBooks Self-Employed provides freelancers and independent contractors with an easy and affordable way to manage their finances and save money at tax time, while Mint delivers financial tools and insights to help people make smart choices about their money. ProSeries and Lacerte are its tax preparation offerings for professional accountants.

Its second quarter revenue grew 15% to $1.16 billion, within Intuit’s guidance range for revenue of $1.160 billion to $1.180 billion. Non GAAP operating income increased 13% over the year to $120 million or $0.35 per share, from income of $106 million or $0.26 per share a year ago. Analysts had estimated earnings of $0.34 per share on revenue of $1.16 billion.

Revenue growth was driven by 19% growth from Small Business and Self-Employed Group and 12% growth from the Consumer Group. QuickBooks subscribers grew by 51% with US subscribers growing 47%to 2.2 million and international subscribers growing 69% to 630,000.

Intuit repurchased $83 million of its shares in the quarter and has $1.3 billion left in its share purchase authorization. It has received board approval for a $0.39 per share dividend for Q2 2018, an increase of 15% over the year. It ended the quarter with cash, equivalents, and investments of $726 million.

For the third quarter, Intuit expects revenue of $2.785 billion to $2.835 billion or moderate growth of 10% to 12%, GAAP operating income of $1.535 billion to $1.555 billion or $4.32 to $4.37 per share, and non GAAP operating income of 1.635 billion to $1.655 billion or $4.57 to $4.62 per share. Analysts expect adjusted earnings of $4.68 on revenue of $2.75 billion.

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