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TaxAct Price Lowered for Growth

 Prices for federal TaxAct modules were lowered for the recent tax season, according to its parent company Blucora. CEO Chris Walters said during a recent earnings webcas for earnings for the second quarter ended June 30.

“We meaningfully improved our value proposition by lowering federal pricing to offer a great experience at up to a 20 percent to 50 percent discount relative to the market leader; drove a 10x increase in our number of partnerships versus prior,” Walters said.

Walters also reported the company gained market share in the tax professional market, but provided no details.

The company expects to report 7.1-percent to 8.5-percent revenue growth for the tax software company for 2021 compared to 2020.

Actual tax business results for the June quarter were skewed by last year’s extension of the tax season deadline to July 15, which pushed revenue into the September quarter,  Revenue more than doubled to $91.9 million for the most recently ended quarter, from $45.2 million. Operating income rose to $63.4 million from $6.7 million in last year’s corresponding period.

Revenue for the Avantax wealth management business reached  $162.4 million, an increase of  40.1 percent from $115.9 million in last year’s corresponding period. Operating income reached $21.4 million up 8.3 percent from $11.7 million a year earlier.

The wealth management operations included $9.9 million from Avantax Planning Partners, the former HK Financial Services, which was acquired in 2020.

Overall, net income dropped to $31.6 million, off 36.3. percent from $49.6 million. Company revenue was $254.3 million, up 57. 9 percent from $161.1 million 

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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