“We have opened our API to third-party developers to extend the functionality and reach of our tools,” CEO Jeff Jones said during the webcast. H&R Block acquired Wave during its October quarter. Wave contributed $11 million revenue for the second quarter.
Allowing developers access to APIs (application program interfaces) is necessary so they can develop applications that work with another program. Opening previously closed applications is a strong trend in the software business.
Block is also completing integrations to provide more functionality to Wave. “We are also releasing new integrations to make it easier for small businesses to track all of their transactions from various sources in a single system,” Jones said. The first integration launched is with Shopify.
The company has also started cross selling Block and Wave customers. “We are emailing qualified H&R Block clients about Wave; we will be emailing qualified wWve clients about Block," Jones said.
The third quarter is usually a weak one for Block since it is largely outside of tax season. For the most recently ended quarter, the company $184 million, compared to a loss of $171 million the prior year. Third-quarter revenue was $161 million, an 8-percent increase from $149 million in last year’s corresponding period. Most of the increase came from Wave.