DALLAS, May 05, 2021 (GLOBE NEWSWIRE) — Blucora, Inc. (NASDAQ: BCOR), a leading provider of technology-enabled, tax focused financial solutions, today announced financial results for the first quarter ended March 31, 2021.
First Quarter Highlights and Recent Developments
- Increased total revenue for the quarter to $278.4 million, or 6% year-over-year
- GAAP Net Income of $27.6 million, or $0.56 per diluted share
- Non-GAAP Net Income of $51.0 million, or $1.04 per diluted share
- Total client assets ended the quarter up 39% year over year to $84.8 billion, with $36.8 billion, or 43.4% in advisory assets
- Advisory assets increased 56% year-over-year, including the addition of approximately $5.0 billion in Avantax Planning Partners (“APP”) assets
- Free cash flow of $45.1 million in Q1 2021 vs. $39.1 million during Q1 2020, or a 15% increase
- Strong cash position, ending the quarter with $191.8 million in cash and cash equivalents compared to $150.1 million at December 31, 2020, while reducing net debt levels since December 31, 2020 with a 3.5x net leverage ratio as of March 31, 2021
- Announced appointment of Tina Perry, President of OWN, to our Board of Directors
“As we continue to serve our financial professionals and assist in the growth of their businesses, our wealth management segment reported strong results with the first quarter coming in at the high end of our expectations, commented Chris Walters, Blucora’s President and Chief Executive Officer. “We continue to see growth in total client assets as well as advisory assets, which sets the Company up for a strong year.”
Tax Season Update
“Our progress leading up to the conclusion of the extended Tax Year 2020 continues to be on track. We are realizing the benefits of continued strong NPS scores, retention rates, improved marketing effectiveness and ARPU strength driven by our broad set of customer offerings for consumers.” Walters continued.
Summary Financial Performance: Q1 2021
($ in millions except per share amounts)
| Q1 2021 | Q1 2020 | Change | |||||||||
| Revenue: | |||||||||||
| Wealth Management | $ | 154.5 | $ | 145.0 | 7 | % | |||||
| Tax Software | $ | 123.9 | $ | 118.3 | 5 | % | |||||
| Total Revenue | $ | 278.4 | $ | 263.3 | 6 | % | |||||
| Segment Operating Income | |||||||||||
| Wealth Management | $ | 19.4 | $ | 22.6 | (14 | ) | % | ||||
| Tax Software | $ | 50.9 | $ | 37.8 | 35 | % | |||||
| Total Segment Operating Income | $ | 70.3 | $ | 60.4 | 16 | % | |||||
| Unallocated Corporate-Level General and Administrative Expenses | $ | (5.7 | ) | $ | (7.0 | ) | 19 | % | |||
| GAAP: | |||||||||||
| Operating Income (Loss) | $ | 37.2 | $ | (241.8 | ) | 115 | % | ||||
| Net Income (Loss) | $ | 27.6 | $ | (315.5 | ) | 109 | % | ||||
| Diluted Net Income (Loss) Per Share | $ | 0.56 | $ | (6.60 | ) | 108 | % | ||||
| Non-GAAP: (1) | |||||||||||
| Adjusted EBITDA | $ | 64.6 | $ | 53.3 | 21 | % | |||||
| Net Income | $ | 51.0 | $ | 43.6 | 17 | % | |||||
| Diluted Net Income per Share | $ | 1.04 | $ | 0.90 | 16 | % | |||||
| (1) | See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below. |
Second Quarter and Full Year 2021 Outlook
| ($ in millions except per share amounts) | 2Q 2021 | Full Year 2021 |
| Wealth Management Revenue | $155.5 – $161.5 | $631.5 – $649.5 |
| TaxAct Revenue | $82.5 – $87.5 | $212.5 – $218.0 |
| Total Revenue | $238.0 – $249.0 | $844.0 – $867.5 |
| Wealth Management Segment Operating Income | $17.5 – $19.5 | $79.0 – $83.5 |
| TaxAct Segment Operating Income | $53.0 – $58.0 | $72.0 – $76.5 |
| Unallocated Corporate-Level General and Administrative Expenses | $7.5 – $7.0 | $28.5 – $27.5 |
| GAAP: | ||
| Net Income | $22.5 – $31.5 | ($12.5) – $2.0 |
| Net Income per share | $0.45 – $0.63 | ($0.25) – $0.04 |
| Non-GAAP: | ||
| Adjusted EBITDA (1) | $63.0 – $70.5 | $122.5 – $132.5 |
| Non-GAAP Net Income (1) | $47.0 – $55.5 | $67.5 – $80.0 |
| Non-GAAP Net Income per share (1) | $0.94 – $1.11 | $1.34 – $1.60 |
| (1) | See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below. |
About Blucora®
Blucora, Inc. (NASDAQ: BCOR) is on the forefront of financial technology, a provider of data and technology-driven solutions that empowers people to improve their financial wellness. Blucora operates in two segments including (i) wealth management, through its Avantax Wealth Management brand, with a collective $85 billion in total client assets as of March 31, 2021 and (ii) tax software, through its TaxAct business, a market leader in tax software with approximately 3 million consumer and 23,000 professional users in 2020. 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.
