Profit Jumps at Intuit

Offering free software as an on-ramp to new users was a "breakthrough," that had only limited cannibalization of unit sales. The experiment will change the company's entry-level software strategies.

"You'll see some new things from us like that in the future," Bennett said. While the federal tax prep freebie was offered late in the season, some free software may be offered year-round, he added.

Seeking ways to increase web revenue and expand offerings for financial institutions, the company completed the acquisition of Digital Insight, which saw growth for the quarter of 26% in the number of bill-pay users and 17% in online banking services, Bennett said.

Intuit's Web revenue will grow from 14% to 15% for the year, faster than the industry average, Bennett said.

The company got cold feet on two acquisitions during the quarter, including one of Electronic Clearing House(ECHO - Cramer's Take - Stockpickr), which would have increased Intuit's market share in payment processing for Internet retailers, many of which rely on QuickBooks accounting software.

"Most growth is going to happen on the Web," Bennett said. "We're pleased we made such progress this year. We've got to win on the Web."

Intuit's strong results prompted the company to raise its full-year forecast, while not changing fourth-quarter guidance. The company now expects to earn $1.38 to $1.40 a share before items on revenue of $2.685 billion to $2.7 billion.