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What to expect in today's market 🕒
Broadcom Inc. Earnings (AVGO)
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Cooper Companies Inc. Earnings (COO)
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Guidewire Software Inc. Earnings (GWRE)
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🧾​ Intuit: The Perfect Match For Mailchimp?
Intuit Inc. (INTU), the parent of popular brands like QuickBooks and TurboTax looking to acquire email marketing firm Mailchimp for over $10B. Intuit already has an armada of market-leading products geared towards small businesses. Mailchimp might well be another feather in its multi-hued cap!
Portfolio Of Market Leaders
Intuit was founded in 1983 with the conviction that computers will replace paper-based personal accounting. Its first product, Quicken, was coded in Microsoft's BASIC programming language for the IBM PC and Apple II.Â
Mailchimp: The Gorilla In The Room
Mailchimp rose like a Phoenix from the ashes of the dot-com bust in 2001. It is a leading marketing automation platform for SMEs. Its software enables businesses to send bespoke emails to their customers to maximize the impact of the message at opportune moments.Â
In its two-decade-long history, Mailchimp has never raised any venture capital funding! The company is already profitable, generating $300M EBITDA in 2020 with revenue of $750M and a customer base of 140M. Mailchimp has put itself on the block for about a month and has elicited interest from PE funds and tech companies alike. While no official announcement was forthcoming from either Mailchimp or Intuit, the synergies between them, given the focus on SMEs, are too obvious to ignore. If Intuit can successfully woo Mailchimp, it’ll be the company’s largest acquisition to date. The Q4 results that were released last week were a demonstration of sorts that Mailchimp will be in good hands with Intuit. Credit Karma contributed to nearly one-fifth of the top line.Â
Key Stats From Q4:
Revenue: $2.56B Vs $2.32B | Expected EPS: $1.97 Vs $1.59 expected.
For the full fiscal 2022, the company expects ~16% Y-o-Y revenue growth and ~15% Y-o-Y EPS growth. If the deal with Mailchimp does go through, these forecasts may become more of a foregone conclusion. Intuit simply has to manage its industry-leading product portfolio to continue what it does best: enabling shareholders to use its accounting software to calculate the profits they’ve earned from their Intuit holdings!
Market Reaction
INTU ended at $563.13, down 0.53%. Shares are up over 50% this year.
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Disclaimer: The email content is prepared and provided by Winvesta India Technologies Ltd. for informational and educational purposes only and is not meant to represent trade or investment recommendations. Remember capital is at risk. Terms & Conditions apply.Â