Pro forma net income for the most recently ended quarter was $22.7 million, an increase of 23 percent from $18.4 million. Pro forma revenue was $165.8 million, up from $157.9 million in last year's corresponding period.
New CEO John Clendening termed tax season "impressive" despite the fact TaxAct lost some consumers because of a decision to no longer offer free software for all customers. It continues to offer a Free Federal and Free State return for simple filers and implemented a forms-based pricing and new packaging strategy during the quarter.
Tax revenue reached $88.5 million for the most recently ended quarter, an increase of 9.1 per cent from $81.1 million. On a historical basis, HD Vest revenue was $77.3 million with no revenue for the year-earlier period, reflecting its purchase by Blucora on December 31. On a pro forma basis, HD Vest revenue was up 1 percent from $76.8 million.
Net income was $20.3 million, up 4.5 percent from $19.4 million in last year's corresponding period. Income from continuing operations fell to $22.8 million, down 1.3 percent from $23.1 million a year ago.
Blucora is a much-changed company with the addition of HD Vest and the announced plans to divest its search, content and ecommerce businesses mid year.
Clendening expressed confidence TaxAct will benefit from growth in the DIY market. "We think that we're well positioned to benefit from the shrinking of the legacy storefront business that we're certainly seeing this year," he said. The company also believes that consumers who left for a competitor when free offerings were dropped can be won back as they ended up paying more money with the other company.
There were slightly more than 5 million efiled returns for the recently ended season, down 10 percent from 5,491,000 for the season ended April 16, 2015. On the professional side, there were 1.630,000 efiles, an increase of 10 percent from 1,475,000 a year ago. The company sold 20,114 units of the professional software, a 4-percent increase from 19,284 a year earlier.