Intuit is currently worth 155 billion dollars.
They own TurboTax, Mint, & QuickBooks as their biggest products.
Revenue for 2021 is projected to be 9.6 billion.
Profit is projected at 2 billion, so a 20.8% margin.
Revenue growth has also been pretty insane, growing 182% the last 10 years and profit is up 233%.
They also have a lot of users on their products.
TurboTax was used by 50 million people in 2019.
Mint has 20 million users.
QuickBooks has 30 million users.
But Mailchimp could potentially become bigger than all of them.
MailChimp has been around since 2001 and spent the 2000s as a hobby project with its founders. The first five years only generated around $5-10,000 a month.
The company hasn’t ever taken any VC money and was one of those rare tech companies to grow completely organically.
Basic pitch on what they do for those not aware, it’s pretty simple. Person, org or business wants a newsletter to send emails to their email list. Mailchimp is the company storing emails, sending the emails and showing data on the emails.
In 2015, the company was sending 600 million emails a day and today that number is about 2 billion.
They also have something no tech company can say they have besides them, which is everyone’s inbox. Mailchimp in 2019 reported having 11 million paying users and they reached 4 billion people every month through those email list.
The entire global population of internet users gets something powered by MailChimp every single month. Even Google which has 1.5 billion gmail users can’t say that.
And revenue in 2019 was 700 million, which is now rumored to have grown close to 1 billion.
The company is rapid growth in the last decade.
Has easy spinoff products they can implement.
Touches a large audience base for potential use in other places.
The valuation also matches another email related company that was bought out this year, with Proofpoint being bought out for 12.3 billion by Thoma Bravo. That company did email security and cloud services and held 1 billion in revenue with 2,900 large customers on email services for larger companies and agencies.
Everything about this buyout make sense, but writing this the question becomes, does this help Intuit become the next Microsoft?
Microsoft is currently worth 2.2 trillion.
Revenue for this year is 168 billion.
Profit will be 61 billion.
While Microsoft has a lot of products such as Linkedin, Bing & X-Box, they are still mainly known for office products which make up 25% of the company with Office 365 and Windows is still 16%.
Intuit isn’t even valued at 10% of what Microsoft and it makes sense, looking at revenue/profit not being 10% of it, but they have a really solid growth and seem to be doing more products in the home office space.
I don’t think they ever get Microsoft big, but wouldn’t be shocked if they do more buyouts like this in an attempt to be seen as the Pepsi to Microsoft’s Coke.