Intuit announced Thursday it will acquire artificial-intelligence start-up Sequence, a move that could bolster the QuickBooks maker's growth prospects as its stock heads toward its worst year in three decades.
Shares of Intuit rose 6.5% to $330.59, making it the top performer in the Nasdaq 100 for the session. The gain offered some relief for the stock, which has plunged 50% this year while pacing toward its worst annual performance since 1996, according to Dow Jones Market Data.
The acquisition will expand Intuit's financial software offerings with technology that automates billing, payments, and revenue management, potentially helping the company attract larger business customers. Intuit said it plans to integrate Sequence's technology into its enterprise software and QuickBooks offerings.
Financial terms weren't disclosed.
Sequence, founded in 2021, develops AI-powered software that automates various financial processes for businesses. Intuit said the acquisition could help it expand into new industries, including business-to-business software and professional services, where complicated pricing structures require more sophisticated financial tools.
It's the latest push by Intuit into AI.
The company reached a multiyear partnership with Anthropic in February to develop customizable AI agents for businesses, and expanded its Intuit Intelligence platform in August with tools designed to automate financial reporting and other accounting tasks.
On Wednesday, Intuit announced plans to expand Intuit Intelligence -- which allows businesses to analyze financial data, generate reports, and automate workflows -- internationally, bringing its AI capabilities to customers outside the U.S.
Wall Street has been increasingly concerned about how AI could disrupt Intuit's business, however.
Goldman Sachs downgraded Intuit stock to Sell in June, citing growing competition from AI-powered tax-preparation platforms that could threaten its TurboTax business.
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