After an online price increase in QuickBooks in May, Intuit shared price hikes on QB Desktop in early August, raising Pro Plus and Premier Plus prices by 57% and 45%, respectively, he noted.
Additionally, Intuit looked to sell QB Desktop Plus products at full MSRP, with no discounts in any channel.
However, Intuit kept the pricing intact for QB Desktop Enterprise, which has already transitioned to subscription-based pricing, he highlighted.
Panigrahi believed this price increase, coupled with the change in discount policy, would encourage customers to consider QB online products.
Furthermore, on QB desktop payroll, Intuit plans to consolidate subscription plans for payrolls, he added.
Additionally, Intuit looked to transition earlier Standard Payroll to Enhanced Payroll. The earlier plan costs $500 per year with $2 per employee per month (PEPM), but the new pricing will increase to $500/per year with $5 PEPM.
While Panigrahi expected INTU to exceed Q4 expectations, he believed investors would remain focused on FY23 guidance.
This QB Desktop price increase and the recent announcement of QB Online price hikes led to his conviction of Intuit exceeding QuickBooks expectations for FY23.
Price Action: INTU shares traded lower by 0.11% at $488.71 on the last check Tuesday.
Photo by Mike Mozart via Flickr
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