NEW YORK (TheStreet) --Shares of Intuit were lower during early-morning trading on Wednesday as the company forecast a disappointing revenue outlook for the first quarter of fiscal 2017, despite beating earnings projections for the 2016 fourth-quarter, after the bell on Tuesday.

The Mountain View, CA-based software company that designs platforms for tax and financial services, posted earnings of 8 cents per share on revenue of $754 million. Analysts had estimated an earnings loss of 2 cents per share on revenue of $732.7 million for the latest quarter.

Intuit CEO Brad Smith joined CNBC's Jon Fortt on Wednesday morning's "Squawk on the Street" to discuss the company's pivot into more cloud-based applications and how it continues to assist individuals.

"The majority of small businesses are now leaning to the cloud; we've seen the tipping point. Just about two years ago it was 50-50 cloud vs. desktop. Now it's about 70-30 leaning to the cloud and it increases every single quarter," Smith told Fort.

Additionally, The small businesses that do not use the cloud-based services tend to be more established, product-based, and are overall happy with their current accounting solution, typically QuickBooks, a program made by Intuit.

"We're working with them to get them comfortable, working with their accountants who already use cloud services and we think it's just a matter of time," Smith noted.

Moreover, Smith commented on the continuing phenomena of individuals, who end up being sole proprietors, using Intuits platforms at a rate that has seen the number triple.

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"They get jobs driving for Uber or Lyft, but one of the thing they don't realize is that the government considers them to be a small business. So they have to file a different kind of tax come tax time. What we have with QuickBooks Self-Employed is a simple app. You simply swipe right if it's a business expense, and swipe left if it's a personal expense," Smith explained.

By offering users this app, it saves them about $3,500 a year in tax savings, Smith said.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Intuit's strengths such as its revenue growth, notable return on equity, expanding profit margins, solid stock price performance and impressive record of earnings per share growth outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: INTU

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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