One of Intuit's big bets for the years ahead is to disrupt the mid-market ERP business market with its Intuit Enterprise Suite as it aims to fill a gap between QuickBooks Online Advanced and costly ERP implementations that are required when companies grow.

The company launched the Intuit Enterprise Suite last month as it took its unified platform, powered by Intuit Assist, a common data store, services from its various offerings and generative AI, and took aim at an $89 billion total addressable market for larger, mid-market businesses.

Intuit launched Enterprise Suite in the US for multi-entity, service and project-based businesses. These early adopters are providing a feedback loop for Intuit to continue to iterate on its platform.

Sasan Goodarzi, CEO of Intuit, laid out the importance of Intuit Enterprise Suite during the company's recent Investor Day. "We have no intention to serve enterprise businesses, but every intention to serve large mid-market businesses" said Goodarzi, who said there's a massive gap in the ERP market between companies that are growing and complex but don't have the time for an ERP implementation. "You go out and talk to large customers and their words are 'big ERP is an organ transplant, it's too expensive and it's not about the yearly expense as much as it is the couple of years it taes to shift to an ERP solution.'"

Goodarzi explained that Enterprise Suite has been in the works for a long time, but AI has enabled it to serve customers far north of $3 million in revenue that have multiple locations, the need for segment reporting and various requirements. In other words, Intuit has a continuum that serves prosumers with QuickBooks, small businesses with QuickBooks Online Advanced and midmarket firms with Enterprise Suite.

Among early adopters of Intuit Enterprise Suite, annual revenue per customer (ARPC) is about $20,000. That sum is a win for Intuit and businesses since Enterprise Suite can consolidate an average of 10 business apps used by midmarket companies. QuickBooks Online Advanced ARPC for fiscal 2024 was $3,299.

For fiscal 2025, Intuit is projecting revenue growth of 12% to 13% to $18.16 billion to $18.35 billion. Its Global Business Solutions Group, which includes QuickBooks, Mailchimp and Enterprise Suite as well as workforce management tools, will deliver fiscal 2025 revenue north of $11 billion, up 16% to 17% from a year ago.

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Laurent Sellier, SVP Product for Midmarket in Global Business Solutions Group, said: "It's common for customers to allocate tens of thousands of dollars, annually for business management software purchases of tens of thousands and even hundreds of thousands more for external support to get new systems set up. We are encouraged by the customer feedback from early adopters and they're telling us they're getting a lot of value by being on one platform, having one source of truth and easy onboarding due to the familiar navigation."

Intuit estimated that there are 1.9 million mid-market businesses in its priority markets. There are 283,000 QuickBooks Online Advanced customers today, up 28% from a year ago. Those customers now have an upgrade path to Intuit Enterprise Suite. In a demonstration, Intuit used a construction company with 25 employees with $25 million in revenue as an Enterprise Suite customer.

Enterprise Suite includes:

  • Financial and accounting tools to prepare financial statements and manage intercompany transactions. Intuit also uses AI to automate planning tasks such as cash flow management, budgeting and profit and loss forecasts with dashboards.
  • KPI tracking and insights by project and industry. These KPIs also sync with employee payroll and time data as well as historical financials.
  • Mailchimp marketing integration to find, retain and manage customers.
  • HR features for onboarding processes, healthcare, retirement and workers comp benefits. Payroll tax calculations, deductions and filings are automated with AI to catch errors.
  • Accounts payable and receivable automation and reconciliation.
  • Access to experts and services for customer success and customization. Intuit Enterprise Suite will have versions for construction, non-profit, service and project-based businesses.

Impact on competition

Intuit Enterprise Suite may disrupt midmarket ERP by providing a familiar upgrade path for businesses that would move toward Oracle NetSuite, Sage, Microsoft Dynamics and other plays on the bet they'd grow into the functionality. ADP is also expanding in human capital management and could effectively follow the same playbook as Intuit.

For Intuit, Enterprise Suite can also give it a way to leverage its unified platform, data quality and generative AI tools. That platform also gives Intuit the ability to move upstream.

“Innovation for ERP – no matter for large or medium or small enterprises – needs to come from a modern platform, an enterprise application platform (EAP) that supports the generic use case of extension, integration and building proprietary automation, enabled by low-code / no-code,” said Constellation Research analyst Holger Mueller. Equally, it requires to build on common data foundation that supports both Analytics and AI. “Getting these two offerings right is critical and Intuit is making good progress on both ends.”

Will Intuit ever threaten SAP, Workday, Oracle and Infor? No. But will it prolong the sales cycle to move up to those ERP packages? You bet.

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Data to Decisions, Future of Work, Innovation and Product-led Growth, Next-Generation Customer Experience

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