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Sensor Tower · Abraham Yousef · February 2025
QuickBooks and Credit Karma Bolster App Growth in Intuit's Portfolio
An increasingly complex federal and state tax landscape, coupled with a proliferation of small businesses in the US, has propelled app adoption for Intuit’s various products over the past few years. Sensor Tower data shows that Credit Karma and QuickBooks, particularly QuickBooks Workforce, have outperformed other Intuit apps in fostering consumer adoption. TurboTax has seen its mobile app download growth and associated business revenue threatened by the rise of free tax filing services (via FreeTaxUSA and Cash App) with 2Q FY25 estimates hinting at a significant decline in downloads, however the company has employed a more video-centric advertising approach in reaching consumers ahead of Super Bowl LIX, which could kickstart download and user growth in 3Q FY25.
Key Takeaways:
Per ST data, Credit Karma app downloads increased 5% YoY in FY24, in line with a similar (+5% YoY) increase in the company’s reported Credit Karma revenue. This represented a 23ppts and 14ppts acceleration in YoY growth in FY24 mobile app downloads and reported Credit Karma revenue, respectively, compared to the previous year
Potentially driven by the rising number of small businesses in the US, QuickBooks total app downloads from 1Q FY24 - 1Q FY25 increased an average of 11% YoY, per quarter, compared to an average decline of 9% YoY, per quarter, in the previous five quarters (4Q FY22 - 4Q FY23)
Per ST data, TurboTax app downloads boast a high correlation coefficient (.84) with Intuit’s reported consumer revenue from 1Q FY20 to 1Q FY25, suggesting that these metrics will often move in line with one another. TurboTax YoY download growth in 1Q FY25 accelerated 11ppts vs growth registered in 4Q FY24, which was in line with a 6ppts acceleration in YoY growth in Intuit’s reported consumer revenue
Portfolio-level downloads for Intuit through 2Q FY25 QTD are up 15% YoY, an acceleration from the 12% YoY growth registered in 2Q FY24, primarily driven by an uptick in consumer adoption at Credit Karma, which saw app downloads surge 73% in the quarter, up from 16% YoY growth in 2Q FY24
Intuit has boosted its US digital ad spend by nearly 53% YoY in Jan’25 MTD, likely aiming to heighten consumer awareness for its forthcoming Super Bowl LIX campaign and tax season
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Written by: Abraham Yousef, Senior Insights Analyst
Date: February 2025