“Looking ahead, we continue to expect online ecosystem revenue in total to grow approximately 20% in fiscal 2025.”

In context

“online ecosystem revenue grew 10% in Q1. As we shared at Investor Day, we win as a platform company. Our online ecosystem revenue growth reflects the progress we are making with our strategy of serving both small businesses and mid-market businesses with more complex needs. This represents an addressable market of over $180 billion, roughly half of which is mid-market. In Q1, online ecosystem revenue grew 20%, including approximately 42% growth in online ecosystem revenue for QBO Advanced and Intuit Enterprise Suite. This reflects our progress serving customers with our mid-market offerings. Online ecosystem revenue for small business and the rest of the base grew a strong 17%. We are excited about our progress in serving mid-market customers while continuing to focus on small businesses. Looking ahead, we continue to expect online ecosystem revenue in total to grow approximately 20% in fiscal 2025. Turning to desktop. During Q1, desktop ecosystem revenue declined 17%, including QuickBooks desktop enterprise revenue, which declined in the low teens. As we described last quarter, Q1 desktop ecosystem revenue reflects changes the company made to its QuickBooks desktop offering in early fiscal 2024 to complete the transition to a recurring subscription model, including more frequent product updates. We continue to expect desktop ecosystem revenue to return to growth in Q2 and overall, we expect desktop ecosystem revenue to grow in the low single digits in fiscal 2025. Turning to a consumer platform, our consumer platform is helping customers make smart money decisions, take steps to improve their financial health year-round, achieve their best tax outcome, and accelerate receipt of the”