CPA2Biz Inc., the online marketing and technology portal for the American Institute of CPAs, announced that it expects to deliver a second year of profitability when its fiscal year closes July 31.
With the spring meeting of the American Institute of CPAs' Governing Council convening in three weeks in Salt Lake City, executives for CPA2Biz said that projections show the Web site's overall revenues should increase by 6 percent this year, to about $15.2 million. Forecasts call for about $600,000 in net income.
Last October, CPA2Biz marked its four-year anniversary by announcing its first-ever profit -- net income of $150,000 for the year ending July 31, 2005, on revenues of $14.3 million. E xecutives at the time said that the profits were fueled by a combination of strong growth, operational efficiencies and a significant reduction in depreciation expenses.
The site brought in revenues of $13.2 million in the 2004 fiscal year, with a loss of roughly $3 million.
CPA2Biz said that this year, its revenues are being driven by a more than 25 percent growth across all of its major business lines. According to CPA2Biz, the site's Job Board and e-newsletter offerings are also seeing growth. Those new lines are contributing 20 percent of the site's revenues, or approximately $3 million.
In a statement, CPA2Biz chief executive Erik Asgeirsson said, "[CPA2Biz] continues to invest significant cash from operations into the site. We have some exciting things planned for the site in this upcoming fiscal year, which we expect to share in more detail in the not-too-distant future."
The company also touted the fact that the purchasing behavior of financial professionals continues to move online, with more than 50 percent of AICPA product sales being placed through the CPA2Biz site.Separately, CPA2Biz also announced that it has extended its Business Solutions relationship with Paychex through 2011, an additional five years. Launched in late 2003, nearly 24,000 CPAs are enrolled in the Paychex Partner Program, which offers retirement plan services. Measured by the number of enrolled participants, the program now ranks second only to the AICPA Insurance Program.
