Intuit
Credit Karma is Intuit's biggest acquisition, and their new relationship makes perfect sense.
Responsible for personal finance and tax preparation products TurboTax, QuickBooks, and Mint, Intuit has become a household name and popular alternative to traditional tax filing and personal financial accounting systems.
Credit Karma enables users to monitor their credit health (credit scores and credit reports) for free, creating revenue through tailored advertising products like credit cards and loans.
In short, Intuit and Credit Karma combining their efforts could produce even more of a powerhouse in the personal finance industry.
"By joining forces with Credit Karma," Intuit CEO Sasan Goodarzi said in a statement, "we can create a personalized financial assistant that will help consumers find the right financial products, put more money in their pockets and provide insights and advice, enabling them to buy the home they've always dreamed about, pay for education and take the vacation they've always wanted."
According to Goodarzi, Credit Karma will continue to operate separately from their San Francisco headquarters. Kenneth Lin, Credit Karma's CEO, will report to Goordarzi. Lin co-founded the personal finance and financial tech start-up in 2007 with Ryan Graciano and Nichole Mustard.
While Credit Karma is valued now at over $7 billion, two years ago they were valued at around $4 billion. This upward trend has remained relatively consistent over the years. Five years ago, the company generated $370 million in revenue. These days, they boast that as many as half of all millennials and a third of all people in the U.S. have a Credit Karma account.
At 100 million users, with over 30 million logging in weekly, Credit Karma currently generates over $1 billion in annual revenue.
Intuit generates nearly $6.8 billion in annual revenue and has a market cap of roughly $77 billion. Second quarter of fiscal year 2020 has been good to the company, up 13% compared to last year. At $1.7 billion in quarterly revenue, that figure is higher than the $1.68 billion analysts expected.
