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Economy Dampens Blucora Wealth Biz

 Dollar blue greensBlucora said market volatility held down growth in its Avatax wealth management business for the second quarter ended June 30. The company this month reported a revenue increase of 1 percent over last year’s corresponding period as a result.

The culprit was an $8.9-million decrease in commission revenue, which partially offset a $7.6-million increase in advisory revenue and $1.4-million rise in asset-based revenue.

Overall, the company reported net income of $39.4 million in the most recently ended period, up 24.7 percent from $31.5 million a year ago. Revenue was $256.9 million, compared to $254.3 million a year ago. Wealth.management revenue rose to $162.7 million from $162.4 million.

Revenue from its TaxAct tax software business was $94. million, an increase of 2.5 percent from $919 million in last year’s corresponding period.

However, TaxAct revenues were up 9.1 percent for the company and Blucora said it still expects double-digit increase for the segment in 2022. Sales to tax professionals reached $3.2 million in the recently ended quarter, an increase of 3.8 percent year-over-year. For the half, professional revenue, showed a rise of 16.3 percent

Continue to expect double-digit top line growth for TaxAct for tax year 2021.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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