DALLAS, Nov. 04, 2021 (GLOBE NEWSWIRE) — Blucora, Inc. (NASDAQ: BCOR), a leading provider of technology-enabled, tax focused financial solutions, today announced financial results for the third quarter ended September 30, 2021.
Third Quarter Highlights and Recent Developments
- Total revenue for the quarter was $174.2 million
- GAAP Net Loss of $27.8 million, or $(0.57) per diluted share
- Non-GAAP Net Loss of $12.8 million, or $(0.26) per diluted share
- Total client assets ended the quarter up 14% year-over-year to $86.6 billion, with $39.8 billion, or 45.9% in advisory assets
- Advisory assets increased 23% year-over-year, including approximately $5.4 billion in Avantax Planning Partners (“APP”) assets
- Preliminary outlook for the tax software segment projects revenue growth of between 14% and 18% from the mid-point of our 2021 full-year guidance. Preliminary outlook for operating income for full year 2022 of between $98 million and $106 million, which would be an all-time high
- In late August, we completed the acquisition of Headquarters Advisory Group, LLC and on November 2nd, we announced the completed acquisition of Warner Finance, both were existing FPs, which continues to expand the nationwide footprint of Avantax’s in-house RIA
“We believe that continued execution of our strategy will drive long-term sustainable growth within both of our segments. It’s great to see the progress that our team is making in delivering ongoing improvements in the experiences for our Financial Professionals and customers” commented Chris Walters, Blucora’s President and Chief Executive Officer. Mr. Walters continued, “Our progress is highlighted by the strong 2022 tax software segment outlook that we’ve shared today.”
Summary Financial Performance: Q3 2021
($ in millions, except per share amounts)
| Q3 2021 | Q3 2020 | Change | |||||||||||
| Revenue: | |||||||||||||
| Wealth Management | $ | 169.1 | $ | 135.9 | 24 | % | |||||||
| Tax Software | 5.0 | 39.4 | (87 | ) | % | ||||||||
| Total Revenue | $ | 174.2 | $ | 175.4 | (1 | ) | % | ||||||
| Segment Operating Income (Loss) | |||||||||||||
| Wealth Management | $ | 19.6 | $ | 17.5 | 12 | % | |||||||
| Tax Software | (13.9 | ) | 16.2 | (185 | ) | % | |||||||
| Total Segment Operating Income | $ | 5.7 | $ | 33.7 | (83 | ) | % | ||||||
| Unallocated Corporate-Level General and Administrative Expenses | $ | (6.5 | ) | $ | (6.7 | ) | 3 | % | |||||
| GAAP: | |||||||||||||
| Operating Income (Loss) | $ | (20.3 | ) | $ | 1.0 | (2,102 | ) | % | |||||
| Net Loss | $ | (27.8 | ) | $ | (26.2 | ) | (6 | ) | % | ||||
| Diluted Net Loss Per Share | $ | (0.57 | ) | $ | (0.55 | ) | (4 | ) | % | ||||
| Non-GAAP: (1) | |||||||||||||
| Adjusted EBITDA | $ | (0.8 | ) | $ | 27.0 | (103 | ) | % | |||||
| Net Income (Loss) | $ | (12.8 | ) | $ | 15.1 | (185 | ) | % | |||||
| Net Income (Loss) per Share – diluted | $ | (0.26 | ) | $ | 0.31 | (184 | ) | % | |||||
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(1) See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.
Full Year 2021 Outlook
| ($ in millions, except per share amounts) | Prior Outlook | Current Outlook |
| Wealth Management Revenue | $631.5 – $649.5 | $645.0 – $650.0 |
| Tax Software Revenue | $223.5 – $226.5 | $225.5 – $226.5 |
| Total Revenue | $855.0 – $876.0 | $870.5 – $876.5 |
| Wealth Management Segment Operating Income | $79.0 – $83.5 | $81.0 – $83.0 |
| Tax Software Segment Operating Income | $80.0 – $82.0 | $80.5 – $81.5 |
| Unallocated Corporate-Level General and Administrative Expenses | $27.5 – $26.5 | $26.0 – $25.5 |
| GAAP: | ||
| Net Income (loss) | ($8.5) – $1.0 | ($4.5) – ($0.0) |
| Net Income (loss) per diluted share | ($0.17) – $0.02 | ($0.09) – ($0.00) |
| Non-GAAP: | ||
| Adjusted EBITDA (1) | $131.5 – $139.0 | $135.5 – $139.0 |
| Non-GAAP Net Income (loss) (1) | $76.0 – $84.5 | $82.0 – $86.0 |
| Non-GAAP Net Income (loss) per diluted share (1) | $1.52 – $1.70 | $1.65 – $1.73 |
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(1) See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.
Preliminary 2022 Tax Software Outlook
As we have continued to analyze the data from our new marketing efforts and from our new product and service offerings, we are confident in providing our preliminary outlook for 2022. At this time, we are providing our preliminary 2022 outlook for the Tax Software segment to provide revenue growth of between 14% and 18% from the mid-point of our full year 2021 guidance and segment operating income of between $98 and $106 million.
About Blucora®
Blucora, Inc. (NASDAQ: BCOR) is a provider of data and technology-driven solutions that empower people to improve their financial wellness. Blucora operates in two segments including (i) wealth management, through its Avantax Wealth Management and Avantax Planning Partners brands, with a collective $87 billion in total client assets as of September 30, 2021 and (ii) tax software, through its TaxAct business, a market leader in tax software with approximately 3 million consumer users and approximately 24,500 professional users in 2021. With integrated tax-focused software and wealth management, Blucora is uniquely positioned to assist our customers in achieving better long-term outcomes via holistic, tax-advantaged solutions. For more information on Blucora, visit www.blucora.com.
