BCOR - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to Blucora’s 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call may be recorded. I would now like to introduce your host for today’s conference Mr. Investor President, Vice Michalek, Relations. Bill Please go ahead.

Bill Michalek

earnings and earnings conference you the to of welcome remarks. and should everyone XXXX quarter opportunity our copy a first Blucora’s review supplemental call. had information prepared to have Thank release, By you now,

If joined documents, three today and Clendening, Executive on reviewed by are our website Davinder these section Officer Financial Investor John Relations of not Officer. Athwal at you available have all the Blucora.com. Chief I'm Chief

everyone speak that on date. remind discussion of Before contains we based we me begin, current statements today's the currently forward-looking let the see only as environment it and as

our As such, Forms XX-K, SEC and events current obligation and from factors. filings, other they results XX-Q our our information no more assume reports, risk risks to and include statements. expectations. specific Please and update our on forward-looking other actual differ We to the materially uncertainties, including could refer for and release press

and financial hand it We will and me With let discuss John. today, full that, the blucora.com non-GAAP both release non-GAAP reconciliations. GAAP over GAAP measures on includes available the and to earnings

John Clendening

Thanks Bill morning and everyone. good

him. the of result Sanjay addition our know is personal for releasing Friday, that X. we Baskaran last as May Head for of step to a In I also this leave to has announced morning, this the company down earnings our difficult made President decision and TaxAct, TaxAct reasons decision effective

all of August a agreed through grateful contributions transition for has on to pleased are We us he X. we with all Sanjay’s and are remain that basis

strong key playing many made we valuable announced role today. Sanjay including his During us, results time in very a season with a tax has contributions,

the an will and for contributed. strong him Blucora. team that at basis, TaxAct have by for and all assume I thank interim all both TaxAct, has for supported responsibilities we we So that he Sanjay’s On

for have a finalized. will a replacement, as we make initiated something as announcement We soon and have search an

last high that report on strong am year guidance pleased growth to So the further by by first by double-digit to earnings, cash to allowed Blucora of XX% to generation our posting start us EPS sheet. Compared flow the very balance range years’ XX%. had net Blucora I metrics. adjusted strengthen end exceeding our XX%, Strong revenue and EBITDA a quarter, and non-GAAP all rates grew

reduced plans leverage and During of times. period ratio net another This businesses. quarter, XXXX. to in the to times track and we our we on the at growth X.X debt improved times to drive in end our are million X.X Big with by year compares our the $XX earlier X.X picture,

new A Moving track to hitting ago Vest. metrics. for I’ll high-water conversion year-over-year the income clearing inflows recruits HD September. management grew by both and across the quarter increased into record. million business investment on first the unit year-over-year and the or up business AUA Net to momentum grew for a with from growth These of by key firm were funds $XXX with XX% including recent million inflows associated including AUM this and under QX is here a year the which single quarter. the This XX% mark. AUM a year-over-year Net with few Vest advisor AUA business XX.X%, AUM on under XX% to inflow wealth assets were quarter or of increased highest are as with advisor coming billion. billion, were basis the we AUA costs into HD strong year-over-year to level points from segment remains driven up $XX.X and up AUA $XXX $XX.X records its call based administration advisory million. clearing fee XXX announced number The to Revenue board, in for XX% also is Total updates AUM double-digit level $XX conversion, levels on to percent in $XX.X million, assets starting about about management, out company. continued for continued I late year believe part last the large in first the

We a million expect XXXX by in see to XXXX. benefit on benefit less million $XX break-even $XX million a a an benefit and XXXX conversion continued $X slight to for in perhaps or and

new the showing higher than and pass are Our rates exam to XX strong historical advisors Advisors leading recruited show productivity indicator. our average, success progress. efforts assessment continue is a under points process which

in initial benchmarks hitting the In remarkable commissions days is early a advisors addition, versus XXX days, gross XXX in which growing these about are prior our statistic.

are relatively still wealth management. are still volumes that enabling engage new it’s and small, recruits we to board process and on it’s indication their good new the better dollar bringing on the clients them right a While

announced of taxes terms maker a professional the in activity Advisors year update the for expect already late the in down Another Vest we about advisor Drake, and of needs received tax few from view increase with recruits, relationship XXX would to with market. regard. and we the A rear last this date, HD have we’ve become software mirror

was This point Lastly, we speed to to represented types for to further calls business. on to XX% the strong last period advisor just an changes improve advisor months in is lowest make of record in improvement of its opportunities February improvement versus of One driving support. These year. us our the already example example drive resulted answer continue comparable to quarter another front in average March. the and

for key Vest for in success. future, there results of quarter the speaking potential ahead So of as And of future in deal is summary, be of a great the for three each the for fee-based was income positioned TaxAct. through focus strong this first progress good tax multi-year as XX the of discussion as on well with include a on us, or either business units. April to creation. preparation, Organic XXXX terms first quarter as +X HD growing we day of another as TaxAct Monetized software well software and tax Turning about expectation I’ll paid, of drivers well delivered desktop in partnership services conversion suite from of full which the our units growth, are units our and reposition ancillary value to talking is for or the both strategy which monetized increased units. full season, as AUM generally and tax to or for online half

decline flat grow XX% approximately revenue. period the recall, will the U, the in monetized in high units. first which by as with able little above actions season and and growing may half along the three a year, seasons, effect being by put seen pleased for it letter our precursor get our revised growth the get to U that well that our described As units. the this is hope last to side filers we to versus as on you to in monetized TaxAct we’ve a product prior revenue part of being outlook could end us overtime beyond, a modestly. net The I with last original I’m it and both left ranges saw noted tax have I In to the comparable that call, we path prior there for monetized flat a and get of of calls pricing we expect

and half make continue and investments in the technology our XX% first incremental income margin. the some expect even at us will business infrastructure investments segment outlook on come range, slightly with strategic segment to putting above We in revised

So detail. of let’s get into a little bit

of a IRS and a got market off total from files value. start to continued DIY volume. up for the some opening in reform life our This tax season, of nice on with units along IRS value year, the the and The as the XX%. slow While season impact early driving week were X% unit around with ended down and about superior than last season saw later a February time focus higher there monetized recovery customers hopefully we confusion

market total in As filers are declined million, U.S. increasing higher our reduction filers. XXX we your our about representing to were customers X.X%, of total consumer e-filings e-filings points for basis share revenue April while free XX, DDIY season $X.XXX increased. we again monetized drop per unpaid total our I from while last of user a off year-over-year would average de-emphasizing Through expect, value aiming

import Our efforts worked for I areas on leveraging opportunity transparent segments, value revenue DDIY our season season, focus our a capabilities, years. in have will personalized potential promise our driving tax improve gig-accounting enhancing this core within the and high our competitive Freelancer launched mobile Trading which reduction four We the by segments position Tax Block extending of should We growth our for high-value which pricing, particularly Turbo H&R distribution diversifying this and increase in disaffected to focused addition definitely with past. future the and discussed in and for SKU centered $XXX,XXX capability accuracy hard to filers. streamline propositions, guarantee, filers maximize, launching additional around in enhanced on capabilities, the gaining relationship

a federal the continue volumetric have advantage we maintained about we strong increase While of to XX%. our versus leader pricing,

we our are. so from clearly, our present to very the addition, continue prices experience what know In very filers start pricing the of

is in increase us and will which to we than This exceeded be basic year comes experience to factors product all [ph] than than XXA to their prices popular will pay that more out new enabled get last point the price files of a great second products faster low-cost very we and peak the is a a important about SKU weeks population During with that aggressively earlier they pay. what had product targets that market introduced It’s expectations. anticipated. for segment These traditionally. willing our clear season and move increased to that pricing the with

incremental intelligence people driving machine key experience. enhanced filer capabilities part mix learning and and well revenue pricing at in through as guidance. additional augmented to we investments our the our of So year, relative as help This introducing

scalable. new in financial two our capabilities and new customer extending migrated partnerships XX customer addition, our more and We more us ways; to partner to products into lives. we by serve the two, of across over efficiency, new us will creating relationships sources serve and offers we a well for holistically significantly announced enhancements for acquisition revenue support their customer season. agreements diversify years and cloud and new secure, In this enhanced the one, which to platform, efficient while makes us enable Strategic These future. successfully

the they total, partnership and more can insights. generated sources good filing new accurate This I and example we us, online an premium and different them are investments, In enhanced free each new solutions of even KeyBank agreements greater first included new of deeper centric was which this propositions volume customer new at KeyBank. integration as their election even point, of and experience. KeyBank wellness but KeyBank. customers of type receive financial customers, where a for provides came to have Netspend incremental our and Fidelity charge terms at receive relevant to value use recommendations product customer of in partner and point hope learnings in future’s from We opportunity, season, partnership the building,

customer offers, recommendations filers’ designed to second new the the a tax to BluPrint assessment, return from we insights pertains year products it improve item, turns the As situation. launched this extending relationships which actionable financial and through financial into

thousands the With offer financial U.S. insights their them within We suggestions, we help burdens taxes, health. help their improve dollars provide. to save we their and data financial believe, average the use dozens we consent, solutions the filer’s lessen the points and save filer can future which with tax on and XXXX debt of will of insights

savings for of savings finding about identified season that, customers of the $X,XXX. approximately is their Think filing average this the that cost fact, magnitude. taxes, In for

life product and a through additional customers better access place competitive started or doubling for account with shown they year, a do our their TaxAct enable the each adding a manage these customer from lives more customers was to at than have a [ph] changed of to analysis that be that TaxAct customers is partner’s the savings? making interest offer differentiated Historically, BluPrint and down us. This year, in benefit market money want high-yield their This engaged generated score. to debt solutions For they or the the on we they consumers not That customized One work offered learnings. performing By hard-earned point either much How When we large the agreed from with return. our go credit on hope there and no average consumer come of our perhaps tax those filer, their will risk shift dealer down on more with we have to is financial season, and rate. that assets. help help majority more insurance taxes we analysis action. a deposit I their to generate expectations. We would this of as year. above throughout has here new them good partnerships, of other add represents beginning request well is the rate that these significant

to and customer X indicated TaxACT, and partners and We to year pleased called under have digit our seek quarter, million continue to developments Looking and attention year build year, year-over-year. actions with assessment to double our reform. season. us hours positive for ahead, In growth given strong season, professional very few tax cash versus our continue for both X% to the finish and efficiency quickly first and I year flow we earnings progress allowing significant the first continued is tax we’ll weeks of than next closing, return significant round customers back improved and on growth HD paid filers sheet. tax in shift what three, almost include; engagement, revenue, their duration outside to versus saving season. us can we with continue we with at turn is revenue interest improved up last one, season last segment season through standpoint, AUA retention, engagement. to on generate serve units. to double-digit I’m rates, call more an to behind with Stepping time the thousand progress. now other that strengthen do and TaxAct increased our our several have AUM. products retention balance that improved the an overall do, and more we customers only pleased Simply said employee from we last e-filers Vest showed growth monetized put, income on showing And in Two, hope would we the to with us, their few progress XX% To I’m preparation,

work them. to Finally, our wanted and our advisors. on over team our February. turn behalf I employees add that, for CFO, I’m to call pleased has I big first proud to very incredible represent doing who their all been you to us new am from the the work, thank a of Davinder to relatively clients joined and With Athwal, for The customers, time

part is to a We are very the making impact. of he excited have strong as him team, already and positive

Davinder. again, yours. call is So The welcome

Davinder Athwal

Thanks, excited begin our say John. And I’d before to look remarks, and we as my strategy. performance I forward continued to like I’m to be execute financial here driving

consolidated improvement XX%. for I’d As well update quarter and additional of quarter I was the and respectively. performance, diluted an or GAAP of representing up was fiscal John’s first EBITDA outlook per Beginning income ratio representing quarter first share up refer some XX% to detail on cash was provide was second balance XX% lastly, $XX.X $X.XX revenue $X.XX as full free our and or $XX.X of comments, respectively from operating each growth, was XX% net net year. diluted for for as million the $XX.X $XX.X per Adjusted or sheet flow with results the like income up million million year-on-year improvement million XX%. $XXX million and to quarter XX%.Non-GAAP XX%

million $XX.X sale. and $XX.X end higher HD revenue by high and driven performance guidance segment to due large now our with management. above was the and revenue better first in transactional to quarter mutual Vest’s both million than was income fund range, beginning wealth part annuity expected Turning segment of

$XXX,XXX quarter see the million a by followed $XXX doing on transition flows clients to in clearing and work with which, our fourth The will to $XXX I net incurred non-recurring transition the million expect were We we year. long a AUM quarter a $X.X current third conversion first business. of or note quarter. and that of expenses expenses approximately flow as of each the expect second incur of term this potential the in non-recurring are from AUA fee-based million is whether are advisors another slowing we pleased was of that excellent net we schedule net in and flows date, approach stronger

in million for of $XX.X revenue outlook Our management $XX.X of and $XX.X to million wealth the to segment’s for $XX.X million. quarter income is million second

the segment preparation. $XXX.X we quarter to landscape. Moving and are given actions were $XX.X million, accelerate TaxAct range which onto pricing tax first by million end income impacting was largely of both revenue that of our able the high guidance competitive above driven

As expect John consumer for shared XX% of half expectations in either. into approximately -- growth XX% the and increase has average mentioned, margin These translates year. for This to million. second half income first results are $XX.X we our an million last bit revenue $XXX,XXX at a corporate quarter versus million TaxAct John and digital XXXX. by on growth quarter $X.X Finishing first expected driven on approximately for be revenue expenses million to between than on better $XX.X and approximately non-recurring cost. of revenue million, segment a in outlook came $XX.X $XX to related included performance. first transition Unallocated up

expect corporate we the of We first second in the second quarter expected quarter. to around to approximately quarter $XXX,XXX million, that that unallocated $XXX,XXX in the expenses to shifted $X.X had expenses come

$XX half million stated business. in of the and the cash our we with by the enabled flow our quarter, This first expectation the balance during equivalents paying debt cash of ended pay continued quarter characterizes is the strong reduction cash down down debt XXXX. $XX $XXX million million sheet, which consistent net $XXX.X of million, of onto generation $XX.X our Moving with and was million that to reflected

consolidated rating S&P minus. with full and from that, reduction a recent BB outlook With to year. quarter reflected leverage for by in the to upgrade debt BB let’s turn second stable is outlook on focus Our our

consolidated second or to EBITDA $XX $XX.X of or of million share the to $X.XX quarter, million For diluted million $XX $X.XX million net $XXX.X of income and per we million income $XX.X attributable million, million per Blucora $XX to million, adjusted to $XX.X to to expect $XXX.X diluted $X.XX of revenue GAAP non-GAAP net $X.XX share. to

full to expect $XX.X $XX.X Adjusted non-GAAP For million income $X.XX revenue $X.XX to $X.XX year, share. share to million $XX of per of or or EBITDA net $XXX.X to $XX.X income to GAAP $XXX.X $XXX.X consolidated attributable million to net $X.XX of million to diluted the million of million, and Blucora $XXX.X we diluted per million. million

to or attributable corporate business stock-based excludes income the optimize investment such EBITDA we expense X% variable our broad reminder, net and advisors. the to a rate transactional a cash discrete impact will following operating transitional-related clearing remarks. we continue net As loss Blucora and revenue income includes volatility impact into range GAAP year. Consistent outlook to of granted of to This for tax impact for and X% our assumptions. our each as finally, free with expense will net expenses, to variability; for including with second The our segment our And range to concludes messaging flows attributable along previous attributable our for due GAAP items broad firm for for to guidance balances run loss guidance compensation and income GAAP Blucora. prepared refine half to for adjusted for any net non-employee the tax Blucora to effective finally or market to

call to Christy. will We turn for over operator the the now Q&A.

Operator

Shutler from question first comes Thank Instructions]. from And William you. [Operator Blair. Chris our

Your open. line is

Chris Shutler

What partnerships, tax has for guys. distribution little from has a the tax more morning. what season? kind generated distribution to-date? is you color next Hi, from we And from Maybe this to standpoint? of should partners from results season the Good been the expect just you response on what a see John,

John Clendening

it. for morning and the question, appreciate Chris, Hey, good really thanks

in got partnerships this. as we of So, laid of two we've out ways terms about thinking

on question both I'll of partnerships. So types

and first where is on year. we're The around of acquisition that we're creating with type new customer sources at this happy

even the we sort November a with – a in a raised remarks pointed in season coming lot of prepared courses year this also during good quickly out sort itself. a reminder As And back really test fact of online just of and of be approach in we of these is noted of this that instead we the be would learn. as one arrangements

numbers. next have partnerships is that seen continue and the some material move couple these a so takeaways partnership attention Its to we a in we the needle as take mind by required of around deals So, pain, that the approach so to more in important enable of in had ready in next sorts on our multiyear turning drive there types be that's this to the for encouraged of terms we've done tax to the on within it traffic we'll merchandizing to weeks arrangements my of sort to and one flow. still so the we've of what more this far impact season. move down even half But far

relationships extending offers; and of terms we around in consumers flavor through really second them, response that opting that parts encouraged to an really The happy in here consumer offer saw regard. make we the for with situation

see learned As more partners year. even these more mentioned, the positive interested. around this We consumers those well encouraged you that we And aggressive early us of the the numbers that think for how business come we're say as think can in also breeze more again driving case engaged getting sort together case will and around we've reaction. the I head in the with to most been partner I in be consumer. everybody, lessons the its make We've happy determines be that as this to next on of demonstrated. we But impacts. But the will traffic impactful We're days. as by case also first are in I we

next expect year we on as year in to be net-net share one, would So year. come more later we where for plans

Chris Shutler

mid re-introduced you right. SKU kind to make And did why basic of the decision All then the season?

John Clendening

things of Thanks Chris. Yes. the for well question there. that's Couple there and

make season it season make and said demand. SKU the in and really for season marketplace advance you calls of did made consumer nimble to we is us ago. decision well away Every different. that First the We walk that seasons means is the we is as sort what as most back, that to we need got saw to every as dynamic of as that in from of was Having important is significant is season. The couple different.

SKU something to For that that that a – import a was and alongside unlimited on of that that free a basis. more consisted for customer care access SKU continuous prior-year

so, the we And we and right that. know we are multiple we that at in we feel saw got marketplace you pricing spot. as tests observing SKU began we And introducing any When that particular time. towards at like move

stronger In fact that would fact around it's that we'd little pessimistic one of get we is far period we're anticipated. In often the there a bit response respond

And so we're it saw. those reasons we introduce a what happy bit we with and it and for merchandise

Chris Shutler

John, Okay. this on HD And the one then more, just time. Vest

Vest HD around tax pros. for has It's been So a well while. known by

board? with respect on So the three sidelines to on any have those wealth pitch ago? or than how is to who years management what's been get And different five the now

John Clendening

focused So, Chris, upgrade the our our question on getting is growing and thanks are for focus this important as efforts as since call on then because there for targeting several in well. we we've own talked and quarters an that Its to one board. on advisors the

to to and top understands why going with without have the any what's financial on efforts. same, something their cost professional basis and base And value. got said in doing can, think Two I that customer now? in our they them, are people's off-season of right? on an they pro is and enduring while which most one, their who a portfolios. practice so the our that, establish we We're are people's the in a who a attraction marketing stay add tax has add so outreach adding And this carnage Number engage Having to tax for to opportunity relationship. see retooling they've them, They there getting practice the important. life so things to to trust

a people what mail tons in it don't the of mail little if get get, about the years is advisor mailroom tons everybody to in you get been think direct I And shop, you Think at majority you numb many simply the a spewing For out vast were think bit that. your of base. has when open call, you of box. mail the

through We've engaging client created great so approach is ways the a feels this. we've way. out and which a also advisor professional of advisor way sorts to partnerships, in things wait hey, new new take got a different they're the the where partnership these consortiums it’s of reaching trust And I through software, with second, saying a my potential a for look firm that will I like, at Drake a advisor of

the got heard from we response You that.

second get around direct where someone an the but right upgrade in and interaction our the doing we do training So, speed now. catch them on business. we and notice taking why with length to prospects people the more with we where then talk of different been mail new look spewing get to around to you we and than And mail, a are the can where still time licensing, now some direct with work is reason prospects, easy take and impact have it we're be to on stay right also attractive clearing we focusing can can it this how one

can well help. some you able some numbers up this. pretty quickly, remarks, We the not can stunning or being so get to that do for professional good strong a someone really that in brokerage that message heard getting you around, and Is to speed we're individual hey, message So whose to to. prepared of be response

Chris Shutler

All right. Thank you.

John Clendening

bet. You

Operator

Instructions]. Thank you. [Operator

do Research. question I'm Perez a have – showing Barrington I'm We from sorry. Now further no from Alex

open. is line Your

Alex Perez

guys. Hi,

John Clendening

Good morning.

Alex Perez

a in on I already, you if know quarter. but this couple questions. you debt of don't paid first the came million in down addressed $XX minutes Couple of later,

important do and here been Deleveraging sheet balance You're was it it was has over What last -- plan expected you your million and the the targeting what or guess year? acquisition. was with the HD Vest I I those years. what P&L now an ratio times at for year. this end of debt six full over part XX to the at of is be paydown your net XXX know leverage after few to year-end

John Clendening

the course a focused Since and as CFO. want thanks question that on call hey, it, he And been thing on structure. for him. the one you you I of know of the So, our intro, couple of for the an sheet and He's turn – understanding Athwal job areas the I'll one missed to the question. that on new he's to months Davinder the capital let over here balance initially, is

Davinder Athwal

Thanks, John for good and question. Thanks the morning Alex.

So, we kind the expect we about and XX announced end now sitting as to through about And last where Where X.X in of you about right the basically X.X balance as were the quarter. we HD We year with we down pay year. we million X.X. we're be? know, Vest million XX of the million at we We are? for at to walking just another At do ended up acquisition. of the pay had XX

right end expect kind of which around is been be of to at So our X.X, year target. the we stated this

Alex Perez

to? have insurance many I And Thank partnerships apologize. things on you just partnership thing. a follow-up And you How are what that. said I the -- then sort do for gears, referring life heard you you other have of question. another you might great. Okay, question; shifting say and this.

more a please? response, get Just thorough

John Clendening

for thanks You question. bet, bet. you the Again, Alex,

covered around some the traffic file sort essentially that outside partnerships there several and valve tax. of like past intake the flow on dependent some we generation consumers which our over XX to distribution of marketing, consumer in and picture being another widening are big we've have that is partnerships quarters over get as come and again So of is

is one already Why you other customers second, by – coming question. right now relationship your the that. better not better our do look wait with of that's The heart have and people you of know increase and a serving a I job extending them. those

high-yield available available and accounts season around was that insurance. So we loans, last the deposit consumer around around consumer offerings It lending, debt. were -- life have had student

or us that with arrangements. worked of an their turn make customize that taxpayers so the four make in do and permission those And the on essence is to can them. we offer And we of experience late we last tax then points that the we in information having into file access XX finalize for based and data available the context to it year across tailored And XX that to feel they thing. opportunity the right, the critically in on can financial the well, $X,XXX, we And improve are that having the session, opens to these with your permission doubling now numbers during us their that of than situation. market point engaging they course as which to sort year. where services year refund to up also The consumer them even them so consumers are I'll big, of $X,XXX

done of of entire away recombinants and experience. the in industry from one One sort is moving the

us so these give do And an to ability that.

comes the we're on offer the to again but that’s act of again, that consumer, customized making. way. type in days from So And early to that consumer easy a

Alex Perez

Great. Well, you that Appreciate for additional I thank color. that.

John Clendening

bet. You

Operator

William Shutler from have Thank follow-up we a you. Blair. from And Chris do

open. Your line is

Chris Shutler

here. questions of lack of advantage take I'll guys. Hey,

some ratio Regarding M&A, next given leverage maybe point, point And your maybe just available at a in there your the this maybe wheelhouse talk where that get just properties year? important guess become as over appetite I you available or could the sense some is. at about

John Clendening

efforts said completely going for for going the that our we're And practical going just to path things for to we The most to from to one philosophical wouldn't glide and Having us that wrong been the very, point a us pace the this balance the of can to handled, the get and up Thanks we're fashion looking again M&A strengthen executed you're very Chris. was in well and very there most distracted we be your you're Hey, topic is clear you're off period, have important down time that not M&A accretive and were that is when go view, that time for some to. right the following the that be table of I folks that Xx sheet. for share shareholder. can at stock today to well business believe grow question.

part minded being that's to in Having doing possibility shared as strategy its a last what November. to to articulated, be of which is understood attention need August having that had done so M&A and is a through we of And we and now strategy the guide open paying in can previous we very in smart be focused towards strategy more to extend shareholder Blucora on we add around fulfillment to that the which can what been than this what feel of do different like value M&A.

be a so that in with that extent right of deals can we point. paid to that – asset to can with than done That's interested. are the in to all this at course price going right firm been toward having mind path at the And be mind that say accretion we're and mind, we're strategy in the be down got I

Chris Shutler

good, making – lastly, QX incremental in think there? -- you in business, some I And right. be entered much And to Thanks. just that TaxAct then investments? to a revenue bit wanted wondering I some know get All look on which the you'll is just that a more versus so of you EBITDA call clarity little into But aggressive investments outlook TaxAct last for noted you maybe that how distribution alluded lighter. deals Eric

John Clendening

again. Thanks

now So, it's lot in behind the that We've year, a still tax say done into year months good so eight the tax next the us. last adjusting and season. to of we're

be And so season. our clearly for though quickly there's focus efforts work tax relatively to to next done

technology can also our to can the we once software about that upgraded. so the there's so some We're learning out we to metrics, sorting One's when around moved so, talked did they're just elements an And example was related speak for going machine we how where that cloud cloud. -- the around a frankly and augmented come be to experience to other machine And It we've how about making as be number, think better. couple so and that's to year deploy need having better we of to going of investments that. get into elements just modernized capability. do And of that best forms. we're experimentation move about we

is of The but Competitors second of that, We're learning still. is last investment are go. experience. and experience whole marketing there can't type that It's the lot around client the moving. some. We that as year bunch taking improving we the a goes with the client investment learning not stay and in of a some

a As single that's previously, the team of everybody season and new seen on opportunities significant is are this to into that. that client and improving businesses haven't the call maturing and we've create learning every business these a hyper-seasonal experience see we so got part knows, that us caused

those of capacity, type the are So experience investments. client technology,

from have hand. season in with partnerships we underneath Now learning this

on think that sort say fair what to should very that partnerships looking of based to easier those essentially them. for partners from focus I top on our and are make comes it's our we less to are that that command clear And systems. focus on a potential of demand integrate of most we would it into

that profit business and marketplace And that investment But an feel investment around this we with the like so of opportunities the that the business an all properly forward. we've see example another in to future. we're of potential we of will remarks contemplated pacing capacity is this the growth that's be the sort enabler in in weighing with this guidance invest going the made

point a bang gosh, there's multiple we That been of that. oh, to a we this in say, be we years growth business. normal putting business. looking we coming, ago the years look leg investment and good at to ago, we're we're four business. into big so three a spending ago, that's hey, where more two had at have into said, years back and put my yes, in We in It’s go, should this should And say,

Chris Shutler

a lot. All right. Thanks

John Clendening

Welcome.

Operator

questions now to back line. like from for closing to I the Thank conference you. any phone management And I'm would turn no showing our call further over remarks.

John Clendening

the advisers our to It's around as certainly at of heart employees, as be that's of like attention is in as gratitude. customers, it around those our today. make that as appreciate I on Thank the Really I'd constituents in success. and call you. And enjoyable reinforce some the are to grateful the earlier for things joining. is folks is, focus here, and true And business strong team the appreciate at everybody it remarks closing employed here Blucora. that said thanks me everybody. Very Really the the

forward So, in our quarter everybody. on to continue to update Thanks closing report please to you and another strong look progress.

Operator

Ladies participating conclude gentlemen, thank does program. This conference. for the today's in and

have all may You Everyone wonderful a day. disconnect.

Avantax (AVTA) 9 May 182018 Q1 Earnings call transcript