Intuit Sells Data Center, Revises Outlook

   By Aisha Al-Muslim 
 

Intuit Inc. (INTU) has sold its largest data center as the business-software company migrates its services to the public cloud and moves away from investing in owning hosting platforms.

The Mountain View, Calif.-based company, whose products include TurboTax and QuickBooks, said Wednesday it sold its data center in Quincy, Wash., to H5 Data Centers, a privately-owned data center operators in the U.S. Terms of the sale weren't disclosed.

Intuit said it is moving to Amazon Web Services to accelerate developer productivity and innovation and to accommodate spikes in customer usage through the tax season.

During the latter part of this tax season, TurboTax Online customers were served entirely from Amazon Web Services, Intuit said. The company said it expects to finish transitioning QuickBooks Online this year.

As a result of the data center sale, Intuit said it expects to book an operating loss of $75 million to $85 million during the quarter, offset by tax benefits related to the sale, share-based compensation and a subsidiary reorganization.

The company also cut its full-year operating income guidance to $1.47 billion to $1.48 billion from its previous guidance of $1.55 billion to $1.56 billion.

Intuit backed its fiscal year revenue and adjusted profit and operating income outlook.

Write to Aisha Al-Muslim at [e-mail]

(END) Dow Jones Newswires

July 18, 2018 10:03 ET (14:03 GMT)

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