“We lowered federal pricing this year for the first time in at least five tax seasons,” CEO Christopher Walters noted during this week’s webcast for earnings for the first quarter ended March 31. “Depending upon the point in the season, we had a 20% to 50% discount relative to the market leader.”
However, the company said the launch of its Hybrid Assisted Offering led to an increase in the average retail price per unit for its TaxAct software line.
Revenue for professional tax software dropped to $13.3. million for the most recently ended quarter, down from $14.5 million a year earlier. Consumer tax revenue rose to $110.6 million, up from $103.8 million. Total tax revenue was $123.9 million, up 4.7 percent from $118.3 million in last year’s corresponding period.
The company recently soundly defeated an attempted by Ancora to elect four directors to its board. One point of contention was Ancora’s claim the TaxAct business has no relationship to the company’s Avantax wealth management operations and should be sold.
Avantax revenue rose 6.6 percent to $154.5 million from slightly less than $145 million.
The company reported net income of $27.6 million, compared to a loss of $315.5 million. Last year’s loss reflected a $270.6 million goodwill impairment charge, related to its purcchase of HK Financial Services.
Total revenue was $278.4 million, a 4.7-percent increase from $263.3 million.
The company made more money, partly because it cut marketing expenses. Wolters noted Blucora has revamped almost its entire marketing organization.