Avantax Inc (AVTA, Financial), a leading provider of technology-enabled, tax-intelligent financial solutions, announced its financial results for the third quarter ended September 30, 2023, on November 6, 2023. The company reported a 16.5% increase in total revenue compared to the third quarter of the prior year, reaching $192.3 million.
Financial Highlights and Performance
Avantax continued to deliver net positive asset flows for the seventh consecutive quarter, with approximately $673.0 million reported for Q3 2023. The company ended the quarter with total client assets of $82.3 billion, $42.0 billion of which were advisory assets, representing 51.1% of total client assets.
Despite the increase in revenue, Avantax reported a net loss of $1.5 million for the quarter. However, this represents a significant improvement from the net loss of $21.8 million reported in the same quarter of the previous year. The company's net loss per share for Q3 2023 was $0.04, compared to a net loss per share of $0.46 in Q3 2022.
Key Financial Tables
The company's GAAP revenue for Q3 2023 was $192.3 million, a 16.5% increase from $165.0 million in Q3 2022. The net income (loss) from continuing operations, net of income taxes, was $(1.5) million, a significant decrease from $0.3 million in Q3 2022. The net income (loss) per share (basic) from continuing operations was $(0.04), a decrease from $0.01 in Q3 2022.
On a non-GAAP basis, the company's adjusted EBITDA for Q3 2023 was $34.1 million, a 100.6% increase from $17.0 million in Q3 2022. The non-GAAP net income for the quarter was $13.5 million, a 73.1% increase from $7.8 million in Q3 2022. The non-GAAP net income per share (diluted) was $0.36, a 125.0% increase from $0.16 in Q3 2022.
Future Outlook
Avantax entered into a Merger Agreement with Aretec Group, Inc. on September 9, 2023, whereby Aretec Group will acquire all of the issued and outstanding equity of Avantax in an all-cash transaction valuing Avantax at approximately $1.2 billion. The closing of the merger is expected to occur by the end of November 2023, subject to customary closing conditions, including approval by Avantax’s stockholders.
Following the merger, Avantax will operate as a privately-held company. In light of the pending closing of the merger, Avantax will not be hosting a third quarter 2023 earnings conference call or take follow-up questions from the investment community.
Explore the complete 8-K earnings release (here) from Avantax Inc for further details.
