BCOR 8-K
Grayscale Bitcoin Adopters ETF (BCOR)
8-K
2020-02-19
For: 2020-02-19
View Original
Added on
August 12, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices)
(972 ) 870-6400
Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On February 19, 2020, Blucora, Inc. (the "Company") announced its financial results for the quarter and year ended December 31, 2019. Copies of the press release and a supplemental investor presentation are furnished to, but not filed with, the Commission as Exhibits 99.1 and 99.2 hereto.
The press release includes non-GAAP financial measures as that term is defined in Regulation G. The press release also includes the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), information reconciling the non-GAAP financial measures to the GAAP financial measures, and a discussion of the reasons why the Company’s management believes that presentation of the non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations. The non-GAAP financial information presented therein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS
Safe Harbor Statement Under the Private Securities and Litigation Reform Act
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this report, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. Actual results may differ significantly from management’s expectations due to various risks and uncertainties including, but not limited to: our ability to effectively implement our future business plans and growth strategy; our ability to effectively compete within our industry; our ability to attract and retain qualified employees and leadership, advisors, clients and customers; our ability to execute upon the contemplated strategic and performance initiatives and to successfully integrate acquired businesses or assets and realize the anticipated benefits thereof; the availability of financing and our ability to meet our current and future debt service obligations and comply with our debt covenants; our ability to generate strong investment performance for our customers and the impact of the financial markets on our customers’ portfolios; political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation industries; our ability to successfully make technology enhancements and introduce new and improve on existing products and services; our expectations concerning the revenues we generate from fees associated with the financial products that we distribute; our ability to manage leadership and employee transitions; risks related to goodwill and other intangible asset impairment; our ability to comply with regulations (or interpretations thereof) applicable to the wealth management and tax preparation industries, including increased costs associated with or reductions in revenue resulting from new or changing regulations or interpretations of existing regulations; risks associated with our business being subject to enhanced regulatory scrutiny; our ability to comply with laws and regulations regarding privacy and protection of data; cybersecurity risks; our ability to develop and maintain our relationships with third party partners; the seasonality of our business; legal proceedings risks, including litigation and regulatory proceedings; our assessments and estimates that determine our effective tax rate; the impact of new or changing tax legislation; our ability to develop, establish and maintain strong brands; and our ability to protect our intellectual property. A more detailed description of these and certain other factors that could affect actual results is included in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this report, except as may be required by law. In addition, the Company has not filed its Form 10-K for the year ended December 31, 2019. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect the completion of our audit and any necessary adjustments or changes in accounting estimates that are identified prior to the time the Company files the Form 10-K.
-2-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BLUCORA, INC. | ||
By | /s/ Stacy A. Murray | |
Stacy A. Murray | ||
Interim Principal Financial Officer and Principal Accounting Officer | ||
February 19, 2020 | ||
-3-
Exhibit 99.1
Blucora Reports Fourth Quarter and Full Year 2019 Results
IRVING, TX — February 19, 2020 — Blucora, Inc. (NASDAQ: BCOR), a leading provider of tax-smart financial solutions that empower people’s goals, today announced financial results for the fourth quarter and full year ended December 31, 2019.
2019 Highlights and Recent Developments
• | Increased total revenue by 28% year-over-year (y/y), including addition of 1st Global since May 6 |
• | Achieved record advisory net flows at Avantax of approximately $1 billion |
• | Recorded 22nd consecutive year of revenue growth at TaxAct, growing 12% year-over-year |
• | Completed $28 million of a $100 million share repurchase program, supported by strong cash flow generation |
• | Completed acquisition of 1st Global, adding significant scale, complementary capabilities and high recurring revenue |
• | Achieved $6.5 million in synergies related to 1st Global in 2019, more than double original estimate |
“Blucora’s fourth quarter results cap a year of strong financial performance, strengthening our platform, and investing for future growth,” said Chris Walters, Blucora’s President and Chief Executive Officer. “While we have made good progress on many fronts, I’m even more excited about the growth opportunities we see ahead.”
Summary Financial Performance: Q4 and Full Year 2019
($ in millions except per share amounts)
Q4 | Q4 | Full Year | Full Year | ||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Revenue | |||||||||||||||||||||
Wealth Management | $ | 145.2 | $ | 97.2 | 49 | % | $ | 508.0 | $ | 373.2 | 36 | % | |||||||||
Tax Preparation | $ | 4.2 | $ | 4.1 | 2 | % | $ | 210.0 | $ | 187.3 | 12 | % | |||||||||
Total Revenue | $ | 149.4 | $ | 101.3 | 47 | % | $ | 717.9 | $ | 560.5 | 28 | % | |||||||||
Segment Income (Loss): | |||||||||||||||||||||
Wealth Management | $ | 19.1 | $ | 14.1 | 35 | % | $ | 68.3 | $ | 53.1 | 29 | % | |||||||||
Tax Preparation | $ | (12.3 | ) | $ | (8.7 | ) | (41 | )% | $ | 96.2 | $ | 87.2 | 10 | % | |||||||
Total Segment Income | $ | 6.8 | $ | 5.4 | 26 | % | $ | 164.5 | $ | 140.3 | 17 | % | |||||||||
Unallocated Corporate Operating Expenses | $ | 7.6 | $ | 6.1 | 25 | % | $ | 27.4 | $ | 20.5 | 34 | % | |||||||||
GAAP: | |||||||||||||||||||||
Operating Income (Loss) | $ | (26.0 | ) | $ | (13.5 | ) | (93 | )% | $ | — | $ | 67.7 | (100 | )% | |||||||
Net Income (Loss) Attributable to Blucora. Inc. | $ | 17.3 | $ | (16.0 | ) | 208 | % | $ | 48.1 | $ | 50.6 | (5 | )% | ||||||||
Diluted Net Income (Loss) Per Share Attributable to Blucora. Inc. (1) | $ | 0.36 | $ | (0.38 | ) | 195 | % | $ | 0.98 | $ | 0.90 | 9 | % | ||||||||
Non-GAAP: (2) | |||||||||||||||||||||
Adjusted EBITDA | $ | (0.7 | ) | $ | (0.8 | ) | 13 | % | $ | 137.2 | $ | 119.8 | 15 | % | |||||||
Net Income (Loss) | $ | (4.8 | ) | $ | (7.5 | ) | 36 | % | $ | 104.2 | $ | 94.0 | 11 | % | |||||||
Diluted Net Income (Loss) per Share | $ | (0.10 | ) | $ | (0.16 | ) | 38 | % | $ | 2.11 | $ | 1.90 | 11 | % | |||||||
____________________________
(1) | Includes noncontrolling interest redemption impacts of $(0.05) and (0.13) for the fourth quarter and full year ended December 31, 2018, respectively. |
(2) | See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below. |
2019 Results vs. Prior Guidance
$ in millions | Prior Guidance | Midpoint | Actual | Difference at Midpoint |
Wealth Management Revenue | $505.0 - $510.0 | $507.5 | $508.0 | $0.5 |
TaxAct Revenue | $209.5 - $210.5 | $210.0 | $210.0 | $— |
Total Revenue | $714.5 - $720.5 | $717.5 | $717.9 | $0.4 |
Wealth Management Segment Income | $67.0 - $69.5 | $68.3 | $68.3 | $— |
TaxAct Segment Income | $93.0 - $94.5 | $93.8 | $96.2 | $2.4 |
Corporate Unallocated Operating Expenses | $28.5 - $29.5 | $29.0 | $27.4 | $1.6 |
Adjusted EBITDA | $130.5 - $135.5 | $133.0 | $137.2 | $4.2 |
Tax Season Update
“We’re excited to have a significantly improved experience for TaxAct customers this tax season,” Walters continued. “Customers filing with TaxAct this year will experience a much easier and more enjoyable tax filing process, with several benefits to make the experience even more rewarding. A few highlights for this season include:
• | My Tax Plan: a new feature which creates a custom plan for each user to save more on taxes next year. It is personalized to the customer's tax situation, provides specific savings amounts, and includes a downloadable "checklist" of actions to save. We believe this is a significant and differentiated benefit to customers; |
• | Pro Tips: a visually enticing way to reveal lesser-known tax advantages, customized for the individual filer, that help customers get a bigger refund this year and for years to come. |
We also brought back some more of our most popular features, like our $100,000 accuracy guarantee, and an enhanced personalized Deduction Maximizer, which checks if customers have included every available deduction.”
“Based on early tax season data, we continue to expect first-half 2020 tax preparation revenue growth of approximately 3%-5% versus the comparable period last year, adjusted for the removal of SimpleTax, with segment margin in the range of 56.7%-57.7%.”
First Quarter Outlook
For the first quarter of 2020, the Company expects revenues to be between $271.0 million and $281.5 million, GAAP net income attributable to Blucora, Inc. to be between $31.5 million and $34.5 million, or $0.64 to $0.70 per diluted share, Adjusted EBITDA to be between $85.0 million and $91.0 million, and Non-GAAP net income to be between $74.5 million and $80.5 million, or $1.52 to $1.64 per diluted share.
Conference Call and Webcast
A conference call and live webcast will be held today at 8:30 a.m. Eastern Time during which the Company will further discuss fourth quarter and full year results, its outlook for the first quarter, its tax season update, and other business matters. We will also provide the prepared remarks for the conference call along with supplemental financial information to our results on the Investor Relations section of the Blucora corporate website at http://www.blucora.com prior to the call. The supplemental financial information has also been filed with the SEC on Form 8-K. A replay of the call will be available on our website.
About Blucora®
Blucora, Inc. (NASDAQ: BCOR) is on the forefront of financial technology, pioneering tax-smart financial solutions that empower people’s goals. Blucora operates in two segments including wealth management, through its Avantax Wealth Management business (formerly operating under the HD Vest and 1st Global brands), the No. 1 tax-focused broker-dealer, with $71 billion in total client assets as of December 31, 2019, and tax preparation, through its TaxAct business, a market leader in tax preparation software with approximately 3 million consumer and professional users. With integrated tax and wealth management, Blucora is uniquely positioned to provide better long-term outcomes for customers with holistic, tax-advantaged solutions. For more information on Blucora, visit www.blucora.com.
Source: Blucora
Blucora Contact:
Bill Michalek (972) 870-6463
VP, Investor Relations
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. Actual results may differ significantly from management’s expectations due to various risks and uncertainties including, but not limited to: our ability to effectively implement our future business plans and growth strategy; our ability to effectively compete within our industry; our ability to attract and retain qualified employees and leadership, advisors, clients and customers; our ability to execute upon the contemplated strategic and performance initiatives and to successfully integrate acquired businesses or assets and realize the anticipated benefits thereof; the availability of financing and our ability to meet our current and future debt service obligations and comply with our debt covenants; our ability to generate strong investment performance for our customers and the impact of the financial markets on our customers’ portfolios; political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation industries; our ability to successfully make technology enhancements and introduce new and improve on existing products and services; our expectations concerning the revenues we generate from fees associated with the financial products that we distribute; our ability to manage leadership and employee transitions; risks related to goodwill and other intangible asset impairment; our ability to comply with regulations (or interpretations thereof) applicable to the wealth management and tax preparation industries, including increased costs associated with or reductions in revenue resulting from new or changing regulations or interpretations of existing regulations; risks associated with our business being subject to enhanced regulatory scrutiny; our ability to comply with laws and regulations regarding privacy and protection of data; cybersecurity risks; our ability to develop and maintain our relationships with third party partners; the seasonality of our business; legal proceedings risks, including litigation and regulatory proceedings; our assessments and estimates that determine our effective tax rate; the impact of new or changing tax legislation; our ability to develop, establish and maintain strong brands; and our ability to protect our intellectual property. A more detailed description of these and certain other factors that could affect actual results is included in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law. In addition, the Company has not filed its Form 10-K for the year ended December 31, 2019. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect the completion of our audit and any necessary adjustments or changes in accounting estimates that are identified prior to the time the Company files the Form 10-K.
Blucora, Inc.
Preliminary Condensed Consolidated Statements of Operations
(Unaudited) (Amounts in thousands, except per share data)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue: | |||||||||||||||
Wealth management services revenue | $ | 145,188 | $ | 97,190 | $ | 507,979 | $ | 373,174 | |||||||
Tax preparation services revenue | 4,233 | 4,068 | 209,966 | 187,282 | |||||||||||
Total revenue | 149,421 | 101,258 | 717,945 | 560,456 | |||||||||||
Operating expenses: | |||||||||||||||
Cost of revenue: | |||||||||||||||
Wealth management services cost of revenue | 101,200 | 66,054 | 352,081 | 253,580 | |||||||||||
Tax preparation services cost of revenue | 1,708 | 1,858 | 10,691 | 10,040 | |||||||||||
Amortization of acquired technology | — | — | — | 99 | |||||||||||
Total cost of revenue (1) | 102,908 | 67,912 | 362,772 | 263,719 | |||||||||||
Engineering and technology (1) | 8,608 | 5,107 | 30,931 | 19,332 | |||||||||||
Sales and marketing (1) | 21,401 | 16,642 | 126,205 | 111,361 | |||||||||||
General and administrative (1) | 22,808 | 16,229 | 78,529 | 60,124 | |||||||||||
Acquisition and integration | 8,024 | — | 25,763 | — | |||||||||||
Depreciation | 1,633 | 762 | 5,479 | 4,468 | |||||||||||
Amortization of other acquired intangible assets | 10,062 | 8,103 | 37,357 | 33,487 | |||||||||||
Impairment of intangible asset | — | — | 50,900 | — | |||||||||||
Restructuring | — | (3 | ) | — | 288 | ||||||||||
Total operating expenses | 175,444 | 114,752 | 717,936 | 492,779 | |||||||||||
Operating income (loss) | (26,023 | ) | (13,494 | ) | 9 | 67,677 | |||||||||
Other loss, net (2) | (5,233 | ) | (3,947 | ) | (16,915 | ) | (15,797 | ) | |||||||
Income (loss) before income taxes | (31,256 | ) | (17,441 | ) | (16,906 | ) | 51,880 | ||||||||
Income tax benefit (expense) | 48,584 | 1,741 | 65,054 | (311 | ) | ||||||||||
Net income (loss) | 17,328 | (15,700 | ) | 48,148 | 51,569 | ||||||||||
Net income attributable to noncontrolling interests | — | (281 | ) | — | (935 | ) | |||||||||
Net income (loss) attributable to Blucora, Inc. | $ | 17,328 | $ | (15,981 | ) | $ | 48,148 | $ | 50,634 | ||||||
Net income (loss) per share attributable to Blucora, Inc.: | |||||||||||||||
Basic | $ | 0.36 | $ | (0.38 | ) | $ | 1.00 | $ | 0.94 | ||||||
Diluted | $ | 0.36 | $ | (0.38 | ) | $ | 0.98 | $ | 0.90 | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 47,689 | 48,002 | 48,264 | 47,394 | |||||||||||
Diluted | 48,344 | 48,002 | 49,282 | 49,381 | |||||||||||
____________________________
(1) | Stock-based compensation expense was allocated among the following captions (in thousands): |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cost of revenue | $ | 1,341 | $ | 527 | $ | 4,082 | $ | 1,467 | |||||||
Engineering and technology | 193 | 176 | 715 | 766 | |||||||||||
Sales and marketing | 257 | 589 | 346 | 2,424 | |||||||||||
General and administrative | 3,345 | 2,402 | 11,157 | 8,596 | |||||||||||
Total stock-based compensation expense | $ | 5,136 | $ | 3,694 | $ | 16,300 | $ | 13,253 | |||||||
(2) | Other loss, net consisted of the following (in thousands): |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest expense | $ | 5,002 | $ | 3,838 | $ | 19,017 | $ | 15,610 | |||||||
Interest income | (108 | ) | (132 | ) | (449 | ) | (349 | ) | |||||||
Amortization of debt issuance costs | 194 | 174 | 1,042 | 833 | |||||||||||
Accretion of debt discounts | 39 | 38 | 228 | 163 | |||||||||||
Loss on debt extinguishment | — | — | — | 1,534 | |||||||||||
Gain on sale of a business | — | — | (3,256 | ) | — | ||||||||||
Other | 106 | 29 | 333 | (1,994 | ) | ||||||||||
Other loss, net | $ | 5,233 | $ | 3,947 | $ | 16,915 | $ | 15,797 | |||||||
Blucora, Inc.
Preliminary Condensed Consolidated Balance Sheets
(Unaudited) (Amounts in thousands)
December 31, | |||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 80,820 | $ | 84,524 | |||
Cash segregated under federal or other regulations | 5,630 | 842 | |||||
Accounts receivable, net of allowance | 16,266 | 15,721 | |||||
Commissions receivable | 21,176 | 15,562 | |||||
Other receivables | 2,902 | 7,408 | |||||
Prepaid expenses and other current assets, net | 12,349 | 7,755 | |||||
Total current assets | 139,143 | 131,812 | |||||
Long-term assets: | |||||||
Property and equipment, net | 18,706 | 12,389 | |||||
Right-of-use assets, net | 10,151 | — | |||||
Goodwill, net | 662,375 | 548,685 | |||||
Other intangible assets, net | 290,211 | 294,603 | |||||
Deferred tax asset, net | 9,997 | — | |||||
Other long-term assets | 6,989 | 10,236 | |||||
Total long-term assets | 998,429 | 865,913 | |||||
Total assets | $ | 1,137,572 | $ | 997,725 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 10,969 | $ | 3,798 | |||
Commissions and advisory fees payable | 19,905 | 15,199 | |||||
Accrued expenses and other current liabilities | 36,144 | 18,980 | |||||
Deferred revenue—current | 12,014 | 10,257 | |||||
Lease liabilities—current | 3,272 | 46 | |||||
Current portion of long-term debt, net | 11,228 | — | |||||
Total current liabilities | 93,532 | 48,280 | |||||
Long-term liabilities: | |||||||
Long-term debt, net | 381,485 | 260,390 | |||||
Deferred tax liability, net | — | 40,394 | |||||
Deferred revenue—long-term | 7,172 | 8,581 | |||||
Lease liabilities—long-term | 5,916 | 100 | |||||
Other long-term liabilities | 5,952 | 7,440 | |||||
Total long-term liabilities | 400,525 | 316,905 | |||||
Total liabilities | 494,057 | 365,185 | |||||
Redeemable noncontrolling interests | — | 24,945 | |||||
Stockholders’ equity: | |||||||
Common stock, par $0.0001—900,000 authorized shares; 49,059 shares issued and 47,753 shares outstanding at December 31, 2019; 48,044 shares issued and outstanding at December 31, 2018 | 5 | 5 | |||||
Additional paid-in capital | 1,586,972 | 1,569,725 | |||||
Accumulated deficit | (914,791 | ) | (961,689 | ) | |||
Accumulated other comprehensive loss | (272 | ) | (446 | ) | |||
Treasury stock, at cost—1,306 shares at December 31, 2019 | (28,399 | ) | — | ||||
Total stockholders’ equity | 643,515 | 607,595 | |||||
Total liabilities and stockholders’ equity | $ | 1,137,572 | $ | 997,725 | |||
Blucora, Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited) (Amounts in thousands)
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
Operating activities: | |||||||
Net income | $ | 48,148 | $ | 51,569 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Stock-based compensation | 16,300 | 13,253 | |||||
Depreciation and amortization of acquired intangible assets | 44,208 | 38,589 | |||||
Impairment of intangible asset | 50,900 | — | |||||
Reduction of right-of-use assets | 4,425 | — | |||||
Deferred income taxes | (67,549 | ) | (3,039 | ) | |||
Amortization of premium on investments, net, and debt issuance costs | 1,042 | 833 | |||||
Accretion of debt discounts | 228 | 163 | |||||
Loss on debt extinguishment and modification expense | — | 1,534 | |||||
Gain on sale of a business | (3,256 | ) | — | ||||
Other | 734 | 73 | |||||
Cash provided (used) by changes in operating assets and liabilities: | |||||||
Accounts receivable | 871 | (4,286 | ) | ||||
Commissions receivable | (471 | ) | 1,260 | ||||
Other receivables | 4,506 | (3,851 | ) | ||||
Prepaid expenses and other current assets | 10,537 | (815 | ) | ||||
Other long-term assets | 3,377 | 3,450 | |||||
Accounts payable | 29 | (615 | ) | ||||
Commissions and advisory fees payable | 432 | (2,614 | ) | ||||
Lease liabilities | (7,335 | ) | — | ||||
Deferred revenue | (17,367 | ) | 9,930 | ||||
Accrued expenses and other current and long-term liabilities | 3,045 | 114 | |||||
Net cash provided by operating activities | 92,804 | 105,548 | |||||
Investing activities: | |||||||
Business acquisition, net of cash acquired | (166,560 | ) | — | ||||
Purchases of property and equipment | (10,501 | ) | (7,633 | ) | |||
Proceeds from sale of a business, net of cash | 7,467 | — | |||||
Net cash used by investing activities | (169,594 | ) | (7,633 | ) | |||
Financing activities: | |||||||
Proceeds from credit facilities, net of debt issuance costs and debt discount | 131,489 | — | |||||
Payments on credit facilities | (313 | ) | (80,000 | ) | |||
Stock repurchases | (28,399 | ) | — | ||||
Payment of redeemable noncontrolling interests | (24,945 | ) | — | ||||
Proceeds from stock option exercises | 4,387 | 12,773 | |||||
Proceeds from issuance of stock through employee stock purchase plan | 2,212 | 2,100 | |||||
Tax payments from shares withheld for equity awards | (5,652 | ) | (8,362 | ) | |||
Contingent consideration payments for business acquisition | (943 | ) | (1,315 | ) | |||
Net cash provided (used) by financing activities | 77,836 | (74,804 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 38 | (56 | ) | ||||
Net increase in cash, cash equivalents, and restricted cash | 1,084 | 23,055 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 85,366 | 62,311 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 86,450 | $ | 85,366 | |||
Blucora, Inc.
Preliminary Segment Information
(Unaudited) (Amounts in thousands)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue: | |||||||||||||||
Wealth Management (1) | $ | 145,188 | $ | 97,190 | $ | 507,979 | $ | 373,174 | |||||||
Tax Preparation (1) | 4,233 | 4,068 | 209,966 | 187,282 | |||||||||||
Total revenue | 149,421 | 101,258 | 717,945 | 560,456 | |||||||||||
Operating income (loss): | |||||||||||||||
Wealth Management | 19,142 | 14,133 | 68,292 | 53,053 | |||||||||||
Tax Preparation | (12,316 | ) | (8,742 | ) | 96,249 | 87,249 | |||||||||
Corporate-level activity (2) | (32,849 | ) | (18,885 | ) | (164,532 | ) | (72,625 | ) | |||||||
Total operating income (loss) | (26,023 | ) | (13,494 | ) | 9 | 67,677 | |||||||||
Other loss, net | (5,233 | ) | (3,947 | ) | (16,915 | ) | (15,797 | ) | |||||||
Income tax benefit (expense) | 48,584 | 1,741 | 65,054 | (311 | ) | ||||||||||
Net income (loss) | $ | 17,328 | $ | (15,700 | ) | $ | 48,148 | $ | 51,569 | ||||||
____________________________
(1) | Revenues by major category within each segment are presented below (in thousands): |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Wealth Management: | |||||||||||||||
Commission | $ | 53,199 | $ | 39,932 | $ | 191,050 | $ | 164,201 | |||||||
Advisory | 75,621 | 43,551 | 252,367 | 164,353 | |||||||||||
Asset-based | 11,652 | 9,999 | 48,182 | 31,456 | |||||||||||
Transaction and fee | 4,716 | 3,708 | 16,380 | 13,164 | |||||||||||
Total Wealth Management revenue | $ | 145,188 | $ | 97,190 | $ | 507,979 | $ | 373,174 | |||||||
Tax Preparation: | |||||||||||||||
Consumer | $ | 4,096 | $ | 3,912 | $ | 195,004 | $ | 172,207 | |||||||
Professional | 137 | 156 | 14,962 | 15,075 | |||||||||||
Total Tax Preparation revenue | $ | 4,233 | $ | 4,068 | $ | 209,966 | $ | 187,282 | |||||||
(2)Corporate-level activity included the following (in thousands):
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating expenses | $ | 7,559 | $ | 6,144 | $ | 27,361 | $ | 20,495 | |||||||
Stock-based compensation | 5,136 | 3,694 | 16,300 | 13,253 | |||||||||||
Acquisition and integration costs | 8,024 | — | 25,763 | — | |||||||||||
Depreciation | 2,068 | 947 | 6,851 | 5,003 | |||||||||||
Amortization of acquired intangible assets | 10,062 | 8,103 | 37,357 | 33,586 | |||||||||||
Impairment of intangible asset | — | — | 50,900 | — | |||||||||||
Restructuring | — | (3 | ) | — | 288 | ||||||||||
Total corporate-level activity | $ | 32,849 | $ | 18,885 | $ | 164,532 | $ | 72,625 | |||||||
Blucora, Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures (1)
Preliminary Adjusted EBITDA Reconciliation (1)
(Unaudited) (Amounts in thousands)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income attributable to Blucora, Inc. (2) | $ | 17,328 | $ | (15,981 | ) | $ | 48,148 | $ | 50,634 | ||||||
Stock-based compensation | 5,136 | 3,694 | 16,300 | 13,253 | |||||||||||
Depreciation and amortization of acquired intangible assets | 12,130 | 9,050 | 44,208 | 38,589 | |||||||||||
Restructuring | — | (3 | ) | — | 288 | ||||||||||
Other loss, net (3) | 5,233 | 3,947 | 16,915 | 15,797 | |||||||||||
Net income attributable to noncontrolling interests | — | 281 | — | 935 | |||||||||||
Acquisition and integration costs | 8,024 | — | 25,763 | — | |||||||||||
Income tax (benefit) expense | (48,584 | ) | (1,741 | ) | (65,054 | ) | 311 | ||||||||
Impairment of intangible asset | — | — | 50,900 | — | |||||||||||
Adjusted EBITDA | $ | (733 | ) | $ | (753 | ) | $ | 137,180 | $ | 119,807 | |||||
Preliminary Non-GAAP Net Income (Loss) and Non-GAAP Income (Loss) Per Share Reconciliation (1)
(Unaudited) (Amounts in thousands, except per share amounts)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) attributable to Blucora, Inc. (2) | $ | 17,328 | $ | (15,981 | ) | $ | 48,148 | $ | 50,634 | ||||||
Stock-based compensation | 5,136 | 3,694 | 16,300 | 13,253 | |||||||||||
Amortization of acquired intangible assets | 10,062 | 8,103 | 37,357 | 33,586 | |||||||||||
Impairment of intangible asset | — | — | 50,900 | — | |||||||||||
Gain on sale of a business | — | — | (3,256 | ) | — | ||||||||||
Acquisition and integration costs | 8,024 | — | 25,763 | — | |||||||||||
Restructuring | — | (3 | ) | — | 288 | ||||||||||
Net income attributable to noncontrolling interests | — | 281 | — | 935 | |||||||||||
Cash tax impact of adjustments to GAAP net income | (504 | ) | (536 | ) | (2,396 | ) | (2,257 | ) | |||||||
Non-cash income tax benefit | (44,859 | ) | (3,050 | ) | (68,618 | ) | (2,403 | ) | |||||||
Non-GAAP net income (loss) | $ | (4,813 | ) | $ | (7,492 | ) | $ | 104,198 | $ | 94,036 | |||||
Per diluted share: | |||||||||||||||
Net income (loss) attributable to Blucora, Inc. (2) | $ | 0.36 | $ | (0.38 | ) | $ | 0.98 | $ | 0.90 | ||||||
Stock-based compensation | 0.11 | 0.08 | 0.33 | 0.27 | |||||||||||
Amortization of acquired intangible assets | 0.21 | 0.15 | 0.76 | 0.68 | |||||||||||
Impairment of intangible asset | — | — | 1.03 | — | |||||||||||
Gain on sale of a business | — | — | (0.07 | ) | — | ||||||||||
Acquisition and integration costs | 0.17 | — | 0.52 | — | |||||||||||
Restructuring | — | — | — | 0.01 | |||||||||||
Net income attributable to noncontrolling interests | — | 0.06 | — | 0.14 | |||||||||||
Cash tax impact of adjustments to GAAP net income | (0.01 | ) | (0.01 | ) | (0.05 | ) | (0.05 | ) | |||||||
Non-cash income tax benefit | (0.94 | ) | (0.06 | ) | (1.39 | ) | (0.05 | ) | |||||||
Non-GAAP net income (loss) per share | $ | (0.10 | ) | $ | (0.16 | ) | $ | 2.11 | $ | 1.90 | |||||
Weighted average shares outstanding used in calculating Non-GAAP net income per share | 47,689 | 48,002 | 49,282 | 49,381 | |||||||||||
Preliminary Adjusted EBITDA Reconciliation for Forward-Looking Guidance (1)
(Amounts in thousands)
Ranges for the three months ending | |||||||
March 31, 2020 | |||||||
Low | High | ||||||
Net income attributable to Blucora, Inc. | $ | 31,500 | $ | 34,500 | |||
Stock-based compensation | 3,200 | 3,000 | |||||
Depreciation and amortization of acquired intangible assets | 10,600 | 10,200 | |||||
Acquisition, integration, relocation, and executive transition costs | 18,200 | 17,800 | |||||
Other loss, net (3) | 5,600 | 5,400 | |||||
Income tax expense | 15,900 | 20,100 | |||||
Adjusted EBITDA | $ | 85,000 | $ | 91,000 | |||
Preliminary Non-GAAP Income Reconciliation for Forward-Looking Guidance (1)
(Amounts in thousands)
Ranges for the three months ending | |||||||
March 31, 2020 | |||||||
Low | High | ||||||
Net income attributable to Blucora, Inc. | $ | 31,500 | $ | 34,500 | |||
Stock-based compensation | 3,200 | 3,000 | |||||
Amortization of acquired intangible assets | 7,900 | 7,800 | |||||
Acquisition, integration, relocation, and executive transition costs | 18,200 | 17,800 | |||||
Cash tax impact of adjustments to net income (loss) | (500 | ) | (500 | ) | |||
Non-cash income tax expense | 14,200 | 17,900 | |||||
Non-GAAP income | $ | 74,500 | $ | 80,500 | |||
Per diluted share: | |||||||
Net income attributable to Blucora, Inc. | $ | 0.64 | $ | 0.70 | |||
Stock-based compensation | 0.07 | 0.06 | |||||
Amortization of acquired intangible assets | 0.16 | 0.16 | |||||
Acquisition, integration, relocation, and executive transition costs | 0.37 | 0.36 | |||||
Cash tax impact of adjustments to net income (loss) | (0.01 | ) | (0.01 | ) | |||
Non-cash income tax expense | 0.29 | 0.37 | |||||
Non-GAAP net income per share | $ | 1.52 | $ | 1.64 | |||
Weighted average shares outstanding used in calculating Non-GAAP net income per share | 49,154 | 49,004 | |||||
Preliminary Adjusted EBITDA Reconciliation for Prior Guidance (1)
(Amounts in thousands)
Ranges for the year ending | |||||||
December 31, 2019 | |||||||
Low | High | ||||||
Net income attributable to Blucora, Inc. | $ | (5,400 | ) | $ | (400 | ) | |
Stock-based compensation | 17,000 | 16,500 | |||||
Depreciation and amortization of acquired intangible assets | 45,500 | 45,000 | |||||
Other loss, net (3) | 19,000 | 18,000 | |||||
Acquisition and integration costs | 24,000 | 23,500 | |||||
Impairment of intangible asset | 51,000 | 51,000 | |||||
Income tax benefit | (20,600 | ) | (18,100 | ) | |||
Adjusted EBITDA | $ | 130,500 | $ | 135,500 | |||
Notes to Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
(1) | We define Adjusted EBITDA as net income (loss) attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation and amortization of acquired intangible assets, restructuring, other loss, net, net income attributable to noncontrolling interests, acquisition and integration costs, income tax (benefit) expense, and the impairment of an intangible asset. Restructuring costs relate to the relocation of our corporate headquarters that were completed in 2018. Acquisition and integration costs relate to the acquisition of 1st Global. The impairment of an intangible asset relates to the impairment of the HD Vest trade name intangible asset. |
We believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. We use this non-GAAP financial measure for internal management and compensation purposes, when publicly providing guidance on possible future results, and as a means to evaluate period-to-period comparisons. We believe that Adjusted EBITDA is a common measure used by investors and analysts to evaluate our performance, that it provides a more complete understanding of the results of operations and trends affecting our business when viewed together with GAAP results, and that management and investors benefit from referring to this non-GAAP financial measure. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of our business and, therefore, Adjusted EBITDA should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income (loss). Other companies may calculate Adjusted EBITDA differently and, therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
We define non-GAAP net income (loss) as net income (loss) attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets, the impairment of an intangible asset (described further under Adjusted EBITDA above), gain on the sale of a business, acquisition and integration costs (described further under Adjusted EBITDA above), restructuring costs (described further under Adjusted EBITDA above), net income attributable to noncontrolling interests, the related cash tax impact of those adjustments, and non-cash income taxes. The gain on the sale of a business refers to the gain recognized on the sale of SimpleTax in 2019. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024. The aforementioned items are only included in the calculation of non-GAAP net income (loss) in the periods they occurred.
We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share provide meaningful supplemental information to management, investors, and analysts regarding our performance and the valuation of our business by excluding items in the statement of operations that we do not consider part of our ongoing operations or have not been, or are not expected to be, settled in cash. Additionally, we believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP net income (loss) and non-GAAP net income (loss) per share should be evaluated in light of our financial results prepared in accordance with GAAP and should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income (loss) and net income per share. Other companies may calculate non-GAAP net income (loss) and non-GAAP net income (loss) per share differently, and, therefore, our non-GAAP net income (loss) and non-GAAP net income (loss) per share may not be comparable to similarly titled measures of other companies.
(2) | As presented in the Preliminary Condensed Consolidated Statements of Operations (unaudited). |
(3) | Other loss, net, primarily includes items such as interest expense, interest income, amortization of debt issuance costs, accretion of debt discounts, loss on debt extinguishment, and gain on the sale of a business. |
Exhibit 99.2
Blucora, Inc.
Supplemental Information
December 31, 2019
Table of Contents
1
Blucora Consolidated Financial Results (1)
(in thousands except %s and per share amounts, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | |||||||||||||||||||||||||||||||||
Segment revenue: | |||||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | $ | 127,831 | $ | 145,428 | $ | 145,188 | $ | 507,979 | |||||||||||||||||||||
Tax Preparation (2) | 160,937 | 113,883 | 65,833 | 3,498 | 4,068 | 187,282 | 136,236 | 65,909 | 3,588 | 4,233 | 209,966 | ||||||||||||||||||||||||||||||||
Total | $ | 509,557 | $ | 205,965 | $ | 157,848 | $ | 95,385 | $ | 101,258 | $ | 560,456 | $ | 225,768 | $ | 193,740 | $ | 149,016 | $ | 149,421 | $ | 717,945 | |||||||||||||||||||||
Segment income (loss): (3) | |||||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 50,916 | $ | 13,075 | $ | 12,954 | $ | 12,891 | $ | 14,133 | $ | 53,053 | $ | 11,540 | $ | 16,979 | $ | 20,631 | $ | 19,142 | $ | 68,292 | |||||||||||||||||||||
Tax Preparation (2) | 72,921 | 58,806 | 44,121 | (6,936 | ) | (8,742 | ) | 87,249 | 79,272 | 41,368 | (12,075 | ) | (12,316 | ) | 96,249 | ||||||||||||||||||||||||||||
Total | $ | 123,837 | $ | 71,881 | $ | 57,075 | $ | 5,955 | $ | 5,391 | $ | 140,302 | $ | 90,812 | $ | 58,347 | $ | 8,556 | $ | 6,826 | $ | 164,541 | |||||||||||||||||||||
Segment income (loss) % of revenue: | |||||||||||||||||||||||||||||||||||||||||||
Wealth Management | 15 | % | 14 | % | 14 | % | 14 | % | 15 | % | 14 | % | 13 | % | 13 | % | 14 | % | 13 | % | 13 | % | |||||||||||||||||||||
Tax Preparation (2) | 45 | % | 52 | % | 67 | % | (198 | )% | (215 | )% | 47 | % | 58 | % | 63 | % | (337 | )% | (291 | )% | 46 | % | |||||||||||||||||||||
Total | 24 | % | 35 | % | 36 | % | 6 | % | 5 | % | 25 | % | 40 | % | 30 | % | 6 | % | 5 | % | 23 | % | |||||||||||||||||||||
Unallocated corporate operating expenses (3) | $ | 22,907 | $ | 5,541 | $ | 4,238 | $ | 4,572 | $ | 6,144 | $ | 20,495 | $ | 7,105 | $ | 6,221 | $ | 6,476 | $ | 7,559 | $ | 27,361 | |||||||||||||||||||||
Adjusted EBITDA (4) | $ | 100,930 | $ | 66,340 | $ | 52,837 | $ | 1,383 | $ | (753 | ) | $ | 119,807 | $ | 83,707 | $ | 52,126 | $ | 2,080 | $ | (733 | ) | $ | 137,180 | |||||||||||||||||||
Other unallocated operating expenses: (3) | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | $ | 11,653 | $ | 2,955 | $ | 3,730 | $ | 2,874 | $ | 3,694 | $ | 13,253 | $ | 2,443 | $ | 4,082 | $ | 4,639 | $ | 5,136 | $ | 16,300 | |||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | 9,183 | 6,759 | 8,024 | 25,763 | ||||||||||||||||||||||||||||||||
Depreciation | 4,137 | 2,002 | 1,124 | 930 | 947 | 5,003 | 1,310 | 1,662 | 1,811 | 2,068 | 6,851 | ||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 34,002 | 8,357 | 8,855 | 8,271 | 8,103 | 33,586 | 8,044 | 9,169 | 10,082 | 10,062 | 37,357 | ||||||||||||||||||||||||||||||||
Impairment of intangible asset | — | — | — | — | — | — | — | — | 50,900 | — | 50,900 | ||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3 | ) | 288 | — | — | — | — | — | |||||||||||||||||||||||||||||||
Operating income (loss) | $ | 48,037 | $ | 52,737 | $ | 39,126 | $ | (10,692 | ) | $ | (13,494 | ) | $ | 67,677 | $ | 70,113 | $ | 28,030 | $ | (72,111 | ) | $ | (26,023 | ) | $ | 9 | |||||||||||||||||
Unallocated other income/loss: (3) | |||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | (110 | ) | $ | (40 | ) | $ | (58 | ) | $ | (119 | ) | $ | (132 | ) | $ | (349 | ) | $ | (140 | ) | $ | (149 | ) | $ | (52 | ) | $ | (108 | ) | $ | (449 | ) | ||||||||||
Interest expense | 21,211 | 4,181 | 3,847 | 3,744 | 3,838 | 15,610 | 3,776 | 4,770 | 5,469 | 5,002 | 19,017 | ||||||||||||||||||||||||||||||||
Amortization of debt issuance costs | 1,089 | 203 | 284 | 172 | 174 | 833 | 172 | 375 | 301 | 194 | 1,042 | ||||||||||||||||||||||||||||||||
Accretion of debt discounts | 1,947 | 47 | 40 | 38 | 38 | 163 | 38 | 85 | 66 | 39 | 228 | ||||||||||||||||||||||||||||||||
Loss on debt extinguishment and modification expense | 20,445 | 776 | 758 | — | — | 1,534 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Gain on sale of a business | — | — | — | — | — | — | — | — | (3,256 | ) | — | (3,256 | ) | ||||||||||||||||||||||||||||||
Other (income) loss, net | (31 | ) | 61 | (2,112 | ) | 28 | 29 | (1,994 | ) | 112 | 37 | 78 | 106 | 333 | |||||||||||||||||||||||||||||
Total other loss, net | $ | 44,551 | $ | 5,228 | $ | 2,759 | $ | 3,863 | $ | 3,947 | $ | 15,797 | $ | 3,958 | $ | 5,118 | $ | 2,606 | $ | 5,233 | $ | 16,915 | |||||||||||||||||||||
Income (loss) before income taxes | $ | 3,486 | $ | 47,509 | $ | 36,367 | $ | (14,555 | ) | $ | (17,441 | ) | $ | 51,880 | $ | 66,155 | $ | 22,912 | $ | (74,717 | ) | $ | (31,256 | ) | $ | (16,906 | ) | ||||||||||||||||
Income tax (benefit) expense: (3) (5) | |||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 963 | $ | 565 | $ | 325 | $ | 515 | $ | 1,309 | $ | 2,714 | $ | 834 | $ | 3,193 | $ | 3,262 | $ | (3,725 | ) | $ | 3,564 | ||||||||||||||||||||
Non-cash (6) | (26,853 | ) | 1,398 | 582 | (1,333 | ) | (3,050 | ) | (2,403 | ) | 3,151 | (11,317 | ) | (15,593 | ) | (44,859 | ) | (68,618 | ) | ||||||||||||||||||||||||
Total income tax (benefit) expense | $ | (25,890 | ) | $ | 1,963 | $ | 907 | $ | (818 | ) | $ | (1,741 | ) | $ | 311 | $ | 3,985 | $ | (8,124 | ) | $ | (12,331 | ) | $ | (48,584 | ) | $ | (65,054 | ) | ||||||||||||||
GAAP income (loss) | $ | 29,376 | $ | 45,546 | $ | 35,460 | $ | (13,737 | ) | $ | (15,700 | ) | $ | 51,569 | $ | 62,170 | $ | 31,036 | $ | (62,386 | ) | $ | 17,328 | $ | 48,148 | ||||||||||||||||||
GAAP impact of noncontrolling interests (7) | (2,337 | ) | (205 | ) | (222 | ) | (227 | ) | (281 | ) | (935 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
GAAP net income (loss) attributable to Blucora, Inc. | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964 | ) | $ | (15,981 | ) | $ | 50,634 | $ | 62,170 | $ | 31,036 | $ | (62,386 | ) | $ | 17,328 | $ | 48,148 | ||||||||||||||||||
GAAP net income (loss) per share attributable to Blucora, Inc. - diluted | $ | 0.57 | $ | 0.93 | $ | 0.71 | $ | (0.37 | ) | $ | (0.38 | ) | $ | 0.90 | $ | 1.25 | $ | 0.62 | $ | (1.28 | ) | $ | 0.36 | $ | 0.98 | ||||||||||||||||||
Non-GAAP net income (loss) (4) | $ | 69,148 | $ | 58,232 | $ | 47,726 | $ | (4,430 | ) | $ | (7,492 | ) | $ | 94,036 | $ | 77,194 | $ | 41,382 | $ | (9,565 | ) | $ | (4,813 | ) | $ | 104,198 | |||||||||||||||||
Non-GAAP net income (loss) per share - diluted (4) (8) | $ | 1.46 | $ | 1.20 | $ | 0.97 | $ | (0.09 | ) | $ | (0.16 | ) | $ | 1.90 | $ | 1.56 | $ | 0.83 | $ | (0.20 | ) | $ | (0.10 | ) | $ | 2.11 | |||||||||||||||||
Outstanding Shares | 46,366 | 46,828 | 47,494 | 47,816 | 48,044 | 48,044 | 48,255 | 48,044 | 48,334 | 47,753 | 47,753 | ||||||||||||||||||||||||||||||||
Basic weighted average shares outstanding | 44,370 | 46,641 | 47,221 | 47,712 | 48,002 | 47,394 | 48,161 | 48,555 | 48,652 | 47,689 | 48,264 | ||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 47,211 | 48,665 | 49,434 | 47,712 | 48,002 | 49,381 | 49,542 | 49,822 | 48,652 | 48,344 | 49,282 | ||||||||||||||||||||||||||||||||
Notes to Consolidated Financial Results on next page
2
Notes to Consolidated Financial Results
(1) | The operations of 1st Global are included in the Company's operating results as part of the Wealth Management segment beginning May 6, 2019 when 1st Global was acquired. |
(2) | As a highly seasonal business, almost all of the Tax Preparation revenue is generated in the first four months of the calendar year. |
(3) | We do not allocate certain general and administrative costs (including personnel and overhead costs), stock-based compensation, acquisition and integration costs, depreciation, amortization of acquired intangible assets, restructuring, other income/loss, or income taxes to the reportable segments. General and administrative costs are included in "Unallocated corporate operating expenses." |
(4) | Non-GAAP measure. See Reconciliation of Non-GAAP Financial Measures on page 4 for additional information. |
(5) | On December 22, 2017, the Tax Cuts and Job Act was signed into law. This law, effective January 1, 2018, lowered the corporate income tax rate from 35% to 21%. As a result of that reduction, we re-valued our net deferred tax liabilities in 2017, which resulted in an additional income tax benefit of $21.4 million. For 2017, we recorded an income tax benefit of $25.9 million. |
(6) | Amounts represent the non-cash portion of income taxes. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which consist primarily of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024. |
(7) | GAAP income (loss) excludes the impact of noncontrolling interests associated with the HD Vest management rollover equity ownership of 4.48%. The impact of noncontrolling interests is recorded separately and after GAAP income (loss) through December 31, 2018, which was the final measurement date of those ownership interests. |
(8) | For periods in which non-GAAP net income is generated, non-GAAP net income per share is calculated using diluted weighted average shares outstanding. For periods in which non-GAAP net loss is generated, non-GAAP net loss per share is calculated using basic weighted average shares outstanding. |
3
Blucora Reconciliation of Non-GAAP Financial Measures (1) (2)
(in thousands except per share amounts, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964 | ) | $ | (15,981 | ) | $ | 50,634 | $ | 62,170 | $ | 31,036 | $ | (62,386 | ) | $ | 17,328 | $ | 48,148 | ||||||||||||||||||
Stock-based compensation | 11,653 | 2,955 | 3,730 | 2,874 | 3,694 | 13,253 | 2,443 | 4,082 | 4,639 | 5,136 | 16,300 | ||||||||||||||||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 38,139 | 10,359 | 9,979 | 9,201 | 9,050 | 38,589 | 9,354 | 10,831 | 11,893 | 12,130 | 44,208 | ||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3 | ) | 288 | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other loss, net | 44,551 | 5,228 | 2,759 | 3,863 | 3,947 | 15,797 | 3,958 | 5,118 | 2,606 | 5,233 | 16,915 | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 2,337 | 205 | 222 | 227 | 281 | 935 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | 9,183 | 6,759 | 8,024 | 25,763 | ||||||||||||||||||||||||||||||||
Income tax benefit (expense) | (25,890 | ) | 1,963 | 907 | (818 | ) | (1,741 | ) | 311 | 3,985 | (8,124 | ) | (12,331 | ) | (48,584 | ) | (65,054 | ) | |||||||||||||||||||||||||
Impairment of intangible asset | — | — | — | — | — | — | — | — | 50,900 | — | 50,900 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 100,930 | $ | 66,340 | $ | 52,837 | $ | 1,383 | $ | (753 | ) | $ | 119,807 | $ | 83,707 | $ | 52,126 | $ | 2,080 | $ | (733 | ) | $ | 137,180 | |||||||||||||||||||
Non-GAAP Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964 | ) | $ | (15,981 | ) | $ | 50,634 | $ | 62,170 | $ | 31,036 | $ | (62,386 | ) | $ | 17,328 | $ | 48,148 | ||||||||||||||||||
Stock-based compensation | 11,653 | 2,955 | 3,730 | 2,874 | 3,694 | 13,253 | 2,443 | 4,082 | 4,639 | 5,136 | 16,300 | ||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 34,002 | 8,357 | 8,855 | 8,271 | 8,103 | 33,586 | 8,044 | 9,169 | 10,082 | 10,062 | 37,357 | ||||||||||||||||||||||||||||||||
Impairment of intangible asset | — | — | — | — | — | — | — | — | 50,900 | — | 50,900 | ||||||||||||||||||||||||||||||||
Accretion and write-off of debt discount and debt issuance costs on previous debt | 17,875 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Gain on the sale of a business | — | — | — | — | — | — | — | — | (3,256 | ) | — | (3,256 | ) | ||||||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | 9,183 | 6,759 | 8,024 | 25,763 | ||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3 | ) | 288 | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 2,337 | 205 | 222 | 227 | 281 | 935 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (6 | ) | (313 | ) | (903 | ) | (505 | ) | (536 | ) | (2,257 | ) | (411 | ) | (771 | ) | (710 | ) | (504 | ) | (2,396 | ) | |||||||||||||||||||||
Non-cash income tax (benefit) expense | (26,853 | ) | 1,398 | 582 | (1,333 | ) | (3,050 | ) | (2,403 | ) | 3,151 | (11,317 | ) | (15,593 | ) | (44,859 | ) | (68,618 | ) | ||||||||||||||||||||||||
Non-GAAP net income (loss) | $ | 69,148 | $ | 58,232 | $ | 47,726 | $ | (4,430 | ) | $ | (7,492 | ) | $ | 94,036 | $ | 77,194 | $ | 41,382 | $ | (9,565 | ) | $ | (4,813 | ) | $ | 104,198 | |||||||||||||||||
Non-GAAP net income (loss) per share (3) | $ | 1.46 | $ | 1.20 | $ | 0.97 | $ | (0.09 | ) | $ | (0.16 | ) | $ | 1.90 | $ | 1.56 | $ | 0.83 | $ | (0.20 | ) | $ | (0.10 | ) | $ | 2.11 | |||||||||||||||||
Weighted average shares outstanding (3) | 47,211 | 48,665 | 49,434 | 47,712 | 48,002 | 49,381 | 49,542 | 49,822 | 48,652 | 47,689 | 49,282 | ||||||||||||||||||||||||||||||||
Notes to Reconciliation of Non-GAAP Financial Measures on next page
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Notes to Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
(1) We define Adjusted EBITDA as net income (loss) attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation and amortization of acquired intangible assets, restructuring, other loss, net, the impact of noncontrolling interests, acquisition and integration costs, income tax (benefit) expense, and the impairment of an intangible asset. Restructuring costs relate to the relocation of our corporate headquarters that were completed in 2018. Acquisition and integration costs relate to the acquisition of 1st Global. The impairment of an intangible asset relates to the impairment of the HD Vest trade name intangible asset.
We believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. We use this non-GAAP financial measure for internal management and compensation purposes, when publicly providing guidance on possible future results, and as a means to evaluate period-to-period comparisons. We believe that Adjusted EBITDA is a common measure used by investors and analysts to evaluate our performance, that it provides a more complete understanding of the results of operations and trends affecting our business when viewed together with GAAP results, and that management and investors benefit from referring to this non-GAAP financial measure. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of our business and, therefore, Adjusted EBITDA should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income (loss). Other companies may calculate Adjusted EBITDA differently and, therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
We define non-GAAP net income as net income attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets (including acquired technology), the impairment of an intangible asset, accretion and write-off of debt discount and debt issuance costs on previous debt, gain on the sale of a business, acquisition- and integration-related costs, restructuring costs, net income attributable to noncontrolling interests, the related cash tax impact of those adjustments, and non-cash income taxes. The write-off of debt discount and debt issuance costs on our formerly outstanding convertible senior notes and the closed TaxAct - HD Vest 2015 credit facility related to the debt refinancing that occurred in the second quarter of 2017. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024.
We believe that non-GAAP net income and non-GAAP net income per share provide meaningful supplemental information to management, investors, and analysts regarding our performance and the valuation of our business by excluding items in the statement of operations that we do not consider part of our ongoing operations or have not been, or are not expected to be, settled in cash. Additionally, we believe that non-GAAP net income and non-GAAP net income per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP net income and non-GAAP net income per share should be evaluated in light of our financial results prepared in accordance with GAAP and should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income and GAAP net income per share. Other companies may calculate these non-GAAP measures differently, and, therefore, our non-GAAP net income and non-GAAP net income per share may not be comparable to similarly titled measures of other companies.
(2) As presented in the Blucora Consolidated Financial Results (unaudited) on page 2.
(3) For periods in which non-GAAP net income is generated, non-GAAP net income per share is calculated using diluted weighted average shares outstanding. For periods in which non-GAAP net loss is generated, non-GAAP net loss per share is calculated using basic weighted average shares outstanding.
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Blucora Net Leverage Ratio
2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||
(in thousands except ratio, rounding differences may exist) | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | |||||||||||||||||||||||||||
CASH: | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 59,965 | $ | 77,107 | $ | 89,840 | $ | 88,274 | $ | 84,524 | $ | 149,762 | $ | 109,606 | $ | 97,466 | $ | 80,820 | ||||||||||||||||||
DEBT: | ||||||||||||||||||||||||||||||||||||
Senior secured credit facility | $ | 345,000 | $ | 305,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | $ | 390,000 | $ | 390,000 | $ | 399,687 | ||||||||||||||||||
NET DEBT (1) (2) | $ | (285,035 | ) | $ | (227,893 | ) | $ | (175,160 | ) | $ | (176,726 | ) | $ | (180,476 | ) | $ | (115,238 | ) | $ | (280,394 | ) | $ | (292,534 | ) | $ | (318,867 | ) | |||||||||
Last twelve months: | ||||||||||||||||||||||||||||||||||||
SEGMENT INCOME: | ||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 50,916 | $ | 52,138 | $ | 52,686 | $ | 53,152 | $ | 53,053 | $ | 51,518 | $ | 55,543 | $ | 63,283 | $ | 68,292 | ||||||||||||||||||
Tax Preparation | 72,921 | 78,594 | 86,200 | 85,502 | 87,249 | 107,715 | 104,962 | 99,823 | 96,249 | |||||||||||||||||||||||||||
123,837 | 130,732 | 138,886 | 138,654 | 140,302 | 159,233 | 160,505 | 163,106 | 164,541 | ||||||||||||||||||||||||||||
Unallocated corporate operating expenses | (22,907 | ) | (21,675 | ) | (19,450 | ) | (19,435 | ) | (20,495 | ) | (22,059 | ) | (24,042 | ) | (25,946 | ) | (27,361 | ) | ||||||||||||||||||
ADJUSTED EBITDA (1) | $ | 100,930 | $ | 109,057 | $ | 119,436 | $ | 119,219 | $ | 119,807 | $ | 137,174 | $ | 136,463 | $ | 137,160 | $ | 137,180 | ||||||||||||||||||
LEVERAGE RATIO (1) (3) | 2.8 | x | 2.1 | x | 1.5 | x | 1.5 | x | 1.5 | x | 0.8 | x | 2.1 | x | 2.1 | x | 2.3 | x | ||||||||||||||||||
(1) | Non-GAAP measure using Adjusted EBITDA for the last twelve months. |
(2) | We define net debt as cash and cash equivalents less the outstanding principal of debt. Management believes that the presentation of this non-GAAP financial measure provides useful information to investors because it is an important liquidity measurement that reflects our ability to service debt. |
(3) | Net debt leverage ratio is net debt divided by Adjusted EBITDA. Adjusted EBITDA is reconciled to the nearest non-GAAP measure above. |
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Blucora Reconciliation of Operating Free Cash Flow (1)
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||
(in thousands, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | ||||||||||||||||||||||||||||||||
Net cash provided (used) by operating activities | $ | 72,846 | $ | 57,450 | $ | 49,107 | $ | (974 | ) | $ | (35 | ) | $ | 105,548 | $ | 70,236 | $ | 26,576 | $ | (565 | ) | $ | (3,443 | ) | $ | 92,804 | |||||||||||||||||
Purchases of property and equipment | (5,039 | ) | (940 | ) | (1,662 | ) | (2,738 | ) | (2,293 | ) | (7,633 | ) | (1,243 | ) | (1,695 | ) | (3,949 | ) | (3,614 | ) | (10,501 | ) | |||||||||||||||||||||
Operating free cash flow | $ | 67,807 | $ | 56,510 | $ | 47,445 | $ | (3,712 | ) | $ | (2,328 | ) | $ | 97,915 | $ | 68,993 | $ | 24,881 | $ | (4,514 | ) | $ | (7,057 | ) | $ | 82,303 | |||||||||||||||||
(1) | We define operating free cash flow, which is a Non-GAAP measure, as net cash provided (used) by operating activities less purchases of property and equipment. We believe operating free cash flow is an important liquidity measure that reflects the cash generated by the continuing businesses, after the purchases of property and equipment, that can then be used for, among other things, strategic acquisitions and investments in the business, stock repurchases, and funding ongoing operations. |
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Blucora Operating Metrics - Wealth Management
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||
(in thousands except %s, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | ||||||||||||||||||||||||||||||||
Segment revenue | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | $ | 127,831 | $ | 145,428 | $ | 145,188 | $ | 507,979 | |||||||||||||||||||||
Segment net revenue (1) | $ | 113,417 | $ | 29,256 | $ | 29,822 | $ | 29,994 | $ | 31,745 | $ | 120,817 | $ | 28,672 | $ | 41,248 | $ | 44,728 | $ | 45,328 | $ | 159,976 | |||||||||||||||||||||
Segment income (2) | $ | 50,916 | $ | 13,075 | $ | 12,954 | $ | 12,891 | $ | 14,133 | $ | 53,053 | $ | 11,540 | $ | 16,979 | $ | 20,631 | $ | 19,142 | $ | 68,292 | |||||||||||||||||||||
Segment income % of revenue | 15 | % | 14 | % | 14 | % | 14 | % | 15 | % | 14 | % | 13 | % | 13 | % | 14 | % | 13 | % | 13 | % | |||||||||||||||||||||
Segment income % of net revenue | 45 | % | 45 | % | 43 | % | 43 | % | 45 | % | 44 | % | 40 | % | 41 | % | 46 | % | 42 | % | 43 | % | |||||||||||||||||||||
(in thousands except %s, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
Sources of Revenue | Primary Drivers | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | |||||||||||||||||||||||||||||||||
Advisor-driven | Commission | - Transactions - Asset levels - Product mix | $ | 160,241 | $ | 42,870 | $ | 40,384 | $ | 41,015 | $ | 39,932 | $ | 164,201 | $ | 37,160 | $ | 48,068 | $ | 52,623 | $ | 53,199 | $ | 191,050 | |||||||||||||||||||||
Advisory | - Advisory asset levels | 145,694 | 39,301 | 40,058 | 41,443 | 43,551 | 164,353 | 39,757 | 61,410 | 75,579 | 75,621 | 252,367 | |||||||||||||||||||||||||||||||||
Other revenue | Asset-based | - Cash balances - Interest rates - Number of accounts - Client asset levels | 26,297 | 7,172 | 7,306 | 6,979 | 9,999 | 31,456 | 9,693 | 13,219 | 13,618 | 11,652 | 48,182 | ||||||||||||||||||||||||||||||||
Transaction and fee | - Account activity - Number of clients - Number of advisors - Number of accounts | 16,388 | 2,739 | 4,267 | 2,450 | 3,708 | 13,164 | 2,922 | 5,134 | 3,608 | 4,716 | 16,380 | |||||||||||||||||||||||||||||||||
Total revenue | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | $ | 127,831 | $ | 145,428 | $ | 145,188 | $ | 507,979 | |||||||||||||||||||||||
Total recurring revenue (3) | $ | 277,546 | $ | 72,962 | $ | 75,369 | $ | 74,228 | $ | 80,558 | $ | 303,117 | $ | 73,241 | $ | 106,557 | $ | 121,304 | $ | 121,026 | $ | 422,128 | |||||||||||||||||||||||
Recurring revenue rate (3) | 79.6 | % | 79.2 | % | 81.9 | % | 80.8 | % | 82.9 | % | 81.2 | % | 81.8 | % | 83.4 | % | 83.4 | % | 83.4 | % | 83.1 | % | |||||||||||||||||||||||
(in thousands except %s and as otherwise indicated, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | |||||||||||||||||||||||||||||||||
Total Client Assets | $ | 44,178,710 | $ | 44,383,024 | $ | 45,016,993 | $ | 46,413,409 | $ | 42,249,055 | $ | 42,249,055 | $ | 46,164,603 | $ | 67,602,006 | $ | 67,682,510 | $ | 70,644,385 | $ | 70,644,385 | |||||||||||||||||||||
Brokerage Assets | $ | 31,648,545 | $ | 31,665,899 | $ | 32,069,800 | $ | 32,897,081 | $ | 29,693,650 | $ | 29,693,650 | $ | 32,176,414 | $ | 41,335,972 | $ | 41,358,346 | $ | 43,015,221 | $ | 43,015,221 | |||||||||||||||||||||
Advisory Assets | $ | 12,530,165 | $ | 12,717,125 | $ | 12,947,193 | $ | 13,516,328 | $ | 12,555,405 | $ | 12,555,405 | $ | 13,988,189 | $ | 26,266,034 | $ | 26,324,164 | $ | 27,629,164 | $ | 27,629,164 | |||||||||||||||||||||
% of Total Client Assets | 28.4 | % | 28.7 | % | 28.8 | % | 29.1 | % | 29.7 | % | 29.7 | % | 30.3 | % | 38.9 | % | 38.9 | % | 39.1 | % | 39.1 | % | |||||||||||||||||||||
Number of Advisors (in ones) | 3,999 | 3,920 | 3,709 | 3,687 | 3,593 | 3,593 | 3,553 | 4,225 | 4,119 | 3,984 | 3,984 | ||||||||||||||||||||||||||||||||
Advisor-driven revenue per adviser (4) | $ | 76.5 | $ | 21.0 | $ | 21.7 | $ | 22.4 | $ | 23.2 | $ | 91.4 | $ | 21.6 | $ | 25.9 | $ | 31.1 | $ | 32.3 | $ | 111.3 | |||||||||||||||||||||
(1) | Amount represents segment revenue less advisor commission payout. |
(2) | Excludes expenses associated with non-recurring projects. |
(3) | Recurring revenue consists of trailing commissions, advisory fees, fees from cash sweep programs, and certain transaction and fee revenue. |
(4) | Full-year advisor-driven revenue per advisor is based upon a full year of advisor-driven revenue. |
8
Blucora Operating Metrics - Tax Preparation
(in thousands except %s and as otherwise indicated, rounding differences may exist) | Years ended December 31, | U.S. tax seasons ended | |||||||||||||||
Consumers | 2019 | 2018 | % change | April 16, 2019 | April 19, 2018 | % change | |||||||||||
E-files | 3,239 | 3,896 | (17 | )% | 3,115 | 3,772 | (17 | )% | |||||||||
Preparers | |||||||||||||||||
E-files | 2,011 | 1,916 | 5 | % | 1,833 | 1,763 | 4 | % | |||||||||
Units sold (in ones) | 20,746 | 20,719 | — | % | 20,502 | 20,588 | — | % | |||||||||
E-files per unit sold (in ones) | 96.9 | 92.5 | 5 | % | 89.4 | 85.6 | 4 | % | |||||||||
9