Financial Information

Summary - Consolidated Financial Results

Reconciliation of Non-GAAP Financial Measures

Search Operating Metrics

Pro-Forma Information

Q3 year-over-year Tax Preparation

Last 12 Months - Pro Forma Results

Last 12 Months - Levered Free Cash Flow

Reconciliation Pro Forma Non-GAAP Financial Measures

Segment Revenue

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Tax Preparation ⁽¹⁾

Total

Segment Income (Loss) ⁽²⁾

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Tax Preparation ⁽¹⁾

Total

Segment Income (Loss) % of Revenue

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Tax Preparation

Total

Unallocated Corporate Operating Expense

Adjusted EBITDA

Other Unallocated Corporate

Depreciation

Amortization of Intangibles

Stock Compensation

Other (Income) Expense

Total

Income (Loss) Before Taxes

Income Tax

Cash

Non-cash ⁽⁷⁾

Total

Income (Loss) from Continuing Operations

Discontinued Operations Loss ⁽⁹⁾

GAAP Net Income (Loss)

GAAP Earnings Per Share

Non-GAAP Net Income

Non-GAAP Earnings (Loss) Per Share

Outstanding Shares

Basic Shares

Fully-diluted Shares

Cash & Short-term Investment

Outstanding Debt

Net Cash

On January 31, 2012, the Company acquired TaxACT Holdings, Inc. and its wholly-owned subsidiary, 2^nd Story Software, Inc., which operates the TaxACT tax preparation software and online service and software business. The TaxACT business consists of an online tax preparation service for individuals, tax preparation software for individuals and professional tax preparers, and ancillary data storage services. The majority of the TaxACT business’s revenue is generated by the online service at www.taxact.com. As a highly seasonal business, almost all of the TaxACT revenue is generated in the first four months of the calendar year. Amounts represent the results of operations for the TaxACT business from February 1, 2012 to September 30, 2012.

The Company does not allocate certain general, administrative, and overhead costs, or stock-based compensation, depreciation, amortization of intangible assets, other loss (income), net, income tax expense, or results from discontinued operations to the reportable segments. The general, administrative and overhead costs are included in Unallocated Corporate Operating Expense.

Amount for the quarter ended March 31, 2012 includes $1.1 million in transaction costs related to the TaxACT acquisition.

Amount for the quarter ended March 31, 2012 includes $3.4 million related to amortization of acquired intangible assets related to the TaxACT acquisition.

In the quarter ended September 30, 2011, $1.9 million in stock-based compensation expense was recorded in association with issuance of a warrant. In the quarter ended March 31, 2012, $5.2 million in stock-based compensation expense was recorded in association with the modification of the terms of a warrant and the vesting of a non-employee performance-based equity award, which were both triggered by the acquisition of the TaxACT business.

Amount includes $4.3 million related to loss on derivative.

Amounts represent the non-cash portion of income tax expense from continuing operations. The Company excludes the non-cash portion of income tax expense because of its ability to offset a substantial portion of its cash tax liabilities by using these deferred tax assets. The majority of these deferred tax assets will expire if unutilized in 2020.

Amount includes a tax benefit of $19.6 million, due to the release of the valuation allowance on deferred tax assets.

In the quarter ended June 30, 2011, the Company completed the sale of its Mercantila e-commerce business. The operating results of that business have been presented as discontinued operations for all periods presented.

Adjusted EBITDA

Net Income (loss) ⁽²⁾

Discontinued operations

Depreciation

Amortization of intangible assets

Stock-based compensation

Other (income) loss ⁽³⁾

Income tax expense (benefit)

Adjusted EBITDA

Non-GAAP Net Income

Net Income ⁽²⁾

Discontinued operations

Amortization of acquired intangible assets

Stock-based compensation

Loss / (Gain) on derivative

Cash tax impacts of GAAP adjustments

Non-cash income tax expenses (benefit) from continuing operations ⁽¹⁾

Non-GAAP net income ⁽⁴⁾

Non-GAAP Earnings Per Share

Non-GAAP Net Income

Non-GAAP Earnings Per Share ⁽⁴⁾

Fully-diluted Shares

For definitions of these non-GAAP financial measures and their relationship to the Company’s GAAP financial statements, please see Note 1 to the Company’s Reconciliations of Non-GAAP financial Measures to the Nearest Comparable GAAP Measure for the three months ended September 30, 2012 and 2011 in exhibit 99.1 to this Current Report on Form 8-K filed on November 1, 2012

As presented in the Preliminary Condensed Consolidated Statements of Operations (unaudited).

Other loss (income), net includes such items as interest expense, interest income, derivative instrument gains or losses, foreign currency gains or losses, gains or losses from the disposal of assets, adjustments to the fair values of contingent liabilities related to business combinations, gains on resolutions of contingencies and litigation settlements.

Amounts previously disclosed have been revised to reflect the effect of classifying the Company’s Mercantila e-commerce business as discontinued operations.

Revenue by Source

Owned & Operated (B2C)

Distribution (B2B)

Pro Forma Revenue

Pro Forma Segment Income

Segment Margin

Includes $613,000 of revenue not reported on a GAAP basis due to fair value purchase accounting on deferred revenue at date of acquisition.

Excludes $3.6 million of non-operational expenses related to a non-consummated sales transaction for 3Q 2011.

Includes $2.0M of revenue not reported on a GAAP basis due to fair value purchase accounting on deferred revenue at date of acquisition.

Excludes $120,000 and $6.4M of non-operational expenses related to a non-consummated sales transaction for the nine months ended 3Q 2012 and 3Q 2011, respectively.

Pro Forma Revenue

Pro Forma Segment Income ^(c)

Segment Margin

Excludes $1.1 million, $1.8 million, $3.6 million, $2.9 million and $9.3 million of non-operational expenses related to a non-consummated sales transaction for 1Q 2011, 2Q 2011, 3Q 2011, 4Q 2011 and full-year 2011.

Revenue

Segment income

Unallocated Corporate expenses

Adjusted EBITDA

Non-GAAP Net Income

Non-GAAP Earnings Per Share

Diluted Shares for the twelve-month period ended September 30, 2012

Includes $2.0M of revenue not reported on a GAAP basis due to fair value purchase accounting on deferred revenue at date of acquisition in 2012, and $23.1M revenue prior to the acquisition (October 2011 - January 2012).

Includes $2.0M of revenue which was not reported on a GAAP basis due to fair value purchase accounting on deferred revenue in 2012 and excludes $3.0M of Transaction expenses related to the failed HRB acquisition

Pro Forma Adjusted EBITDA

Less - Pro Forma Capital Expenditures

Less - Pro Forma Cash Taxes

Unlevered FCF

Less - Pro Forma Cash Interest Expense

Levered FCF

Interest expense estimated at 5% and assumes initial debt amount of $100 million for periods prior to acquisition; as of September 30, 2012 there is $74.5M of debt outstanding.

Pro Forma Adjusted EBITDA

Pro forma income from continuing operations

Pro forma depreciation

Pro forma amortization of intangible assets

Pro forma stock-based compensation

Pro forma other expense, net

Pro forma income tax expense

Pro Forma Adjusted EBITDA

Pro Forma Non-GAAP Net Income

Pro forma income from continuing operations

Pro forma amortization of acquired intangible assets

Pro forma stock-based compensation

Loss on derivative

Pro forma cash tax impact of GAAP adjustments

Pro forma non-cash income tax expense from continuing operations

Pro forma non-GAAP net income

Pro forma non-GAAP Earnings per share - diluted

Weighted average diluted shares

For definitions of these non-GAAP financial measures and their relationship to the Company’s GAAP financial statements, please see Note 1 to the Company’s Reconciliations of Non-GAAP financial Measures to the Nearest Comparable GAAP Measure for the three months ended September 30, 2012 and 2011 in exhibit 99.1 to this Current Report on Form 8-K filed on November 1, 2012.