|
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
91-1718107
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
6333 State Hwy 161, 4th Floor, Irving, Texas
|
75038
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Large accelerated filer
|
ý
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
|
|
Emerging growth company
|
o
|
|
Outstanding at
|
Class
|
October 24, 2018
|
Common Stock, Par Value $0.0001
|
47,970,272
|
|
Page
|
||
Item 1.
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
|
•
|
our ability to effectively implement our future business plans and growth strategy, including our ability to achieve the anticipated benefits of our Strategic Transformation (as defined in this Quarterly Report on Form 10-Q);
|
•
|
our ability to effectively compete within our industry;
|
•
|
our ability to attract and retain customers and productive financial advisors, as well as our ability to provide strong service to both;
|
•
|
our future capital requirements and the availability of financing, if necessary;
|
•
|
our ability to meet our current and future debt service obligations, including our ability to maintain compliance 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 and investment behavior;
|
•
|
political and economic conditions and changes and events that directly or indirectly impact the wealth management and tax preparation industries;
|
•
|
our ability to respond to rapid technological changes, including our ability to successfully release new products and services or improve upon existing products and services;
|
•
|
our expectations concerning the revenues we generate from fees associated with the financial products that we distribute;
|
•
|
our ability to comply with regulations applicable to the wealth management and tax preparation industries, including increased costs associated with new or changing regulations;
|
•
|
our ability to achieve the expected benefits from our new clearing platform and investment advisory platform;
|
•
|
risks associated with the use and implementation of information technology and the effect of security breaches, computer viruses and computer hacking attacks;
|
•
|
our ability to comply with laws and regulations regarding privacy and protection of user data;
|
•
|
our ability to maintain our relationships with third party partners, providers, suppliers, vendors, distributors, contractors, financial institutions and licensing partners;
|
•
|
our beliefs and expectations regarding the seasonality of our business;
|
•
|
risks associated with litigation;
|
•
|
our ability to attract and retain qualified employees;
|
•
|
our assessments and estimates that determine our effective tax rate;
|
•
|
the impact of new or changing tax legislation on our business and our ability to attract and retain customers;
|
•
|
our ability to develop, establish and maintain strong brands;
|
•
|
our ability to protect our intellectual property and the impact of any claim that we have infringed on the intellectual property rights of others; and
|
•
|
our ability to effectively integrate companies or assets that we acquire.
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
88,274
|
|
|
$
|
59,965
|
|
Cash segregated under federal or other regulations
|
317
|
|
|
1,371
|
|
||
Accounts receivable, net of allowance
|
6,056
|
|
|
10,694
|
|
||
Commissions receivable
|
16,762
|
|
|
16,822
|
|
||
Other receivables
|
626
|
|
|
3,180
|
|
||
Prepaid expenses and other current assets, net
|
5,571
|
|
|
7,365
|
|
||
Total current assets
|
117,606
|
|
|
99,397
|
|
||
Long-term assets:
|
|
|
|
||||
Property and equipment, net
|
11,111
|
|
|
9,831
|
|
||
Goodwill, net
|
548,915
|
|
|
549,037
|
|
||
Other intangible assets, net
|
302,715
|
|
|
328,205
|
|
||
Other long-term assets
|
15,363
|
|
|
15,201
|
|
||
Total long-term assets
|
878,104
|
|
|
902,274
|
|
||
Total assets
|
$
|
995,710
|
|
|
$
|
1,001,671
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
2,158
|
|
|
$
|
4,413
|
|
Commissions and advisory fees payable
|
15,186
|
|
|
17,813
|
|
||
Accrued expenses and other current liabilities
|
16,473
|
|
|
19,577
|
|
||
Deferred revenue
|
5,997
|
|
|
9,953
|
|
||
Total current liabilities
|
39,814
|
|
|
51,756
|
|
||
Long-term liabilities:
|
|
|
|
||||
Long-term debt, net
|
260,208
|
|
|
338,081
|
|
||
Deferred tax liability, net
|
42,356
|
|
|
43,433
|
|
||
Deferred revenue
|
500
|
|
|
804
|
|
||
Other long-term liabilities
|
6,923
|
|
|
8,177
|
|
||
Total long-term liabilities
|
309,987
|
|
|
390,495
|
|
||
Total liabilities
|
349,801
|
|
|
442,251
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interests
|
22,224
|
|
|
18,033
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 8)
|
|
|
|
||||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, par $0.0001—authorized shares, 900,000; issued and outstanding shares,
|
|
|
|
||||
47,816 and 46,366, respectively
|
5
|
|
|
5
|
|
||
Additional paid-in capital
|
1,569,539
|
|
|
1,555,560
|
|
||
Accumulated deficit
|
(945,708
|
)
|
|
(1,014,174
|
)
|
||
Accumulated other comprehensive loss
|
(151
|
)
|
|
(4
|
)
|
||
Total stockholders’ equity
|
623,685
|
|
|
541,387
|
|
||
Total liabilities and stockholders’ equity
|
$
|
995,710
|
|
|
$
|
1,001,671
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Wealth management services revenue
|
$
|
91,887
|
|
|
$
|
86,809
|
|
|
$
|
275,984
|
|
|
$
|
254,772
|
|
Tax preparation services revenue
|
3,498
|
|
|
3,362
|
|
|
183,214
|
|
|
156,936
|
|
||||
Total revenue
|
95,385
|
|
|
90,171
|
|
|
459,198
|
|
|
411,708
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue:
|
|
|
|
|
|
|
|
||||||||
Wealth management services cost of revenue
|
62,313
|
|
|
59,607
|
|
|
187,526
|
|
|
172,444
|
|
||||
Tax preparation services cost of revenue
|
1,370
|
|
|
1,314
|
|
|
8,182
|
|
|
7,543
|
|
||||
Amortization of acquired technology
|
—
|
|
|
50
|
|
|
99
|
|
|
145
|
|
||||
Total cost of revenue
|
63,683
|
|
|
60,971
|
|
|
195,807
|
|
|
180,132
|
|
||||
Engineering and technology
|
4,246
|
|
|
5,051
|
|
|
14,225
|
|
|
14,041
|
|
||||
Sales and marketing
|
15,675
|
|
|
13,680
|
|
|
94,719
|
|
|
84,974
|
|
||||
General and administrative
|
13,404
|
|
|
12,207
|
|
|
43,895
|
|
|
39,405
|
|
||||
Depreciation
|
798
|
|
|
867
|
|
|
3,706
|
|
|
2,680
|
|
||||
Amortization of other acquired intangible assets
|
8,271
|
|
|
8,615
|
|
|
25,384
|
|
|
25,192
|
|
||||
Restructuring
|
—
|
|
|
106
|
|
|
291
|
|
|
2,726
|
|
||||
Total operating expenses
|
106,077
|
|
|
101,497
|
|
|
378,027
|
|
|
349,150
|
|
||||
Operating income (loss)
|
(10,692
|
)
|
|
(11,326
|
)
|
|
81,171
|
|
|
62,558
|
|
||||
Other loss, net
|
(3,863
|
)
|
|
(5,241
|
)
|
|
(11,850
|
)
|
|
(39,149
|
)
|
||||
Income (loss) before income taxes
|
(14,555
|
)
|
|
(16,567
|
)
|
|
69,321
|
|
|
23,409
|
|
||||
Income tax benefit (expense)
|
818
|
|
|
(166
|
)
|
|
(2,052
|
)
|
|
(5,952
|
)
|
||||
Net income (loss)
|
(13,737
|
)
|
|
(16,733
|
)
|
|
67,269
|
|
|
17,457
|
|
||||
Net income attributable to noncontrolling interests
|
(227
|
)
|
|
(164
|
)
|
|
(654
|
)
|
|
(466
|
)
|
||||
Net income (loss) attributable to Blucora, Inc.
|
$
|
(13,964
|
)
|
|
$
|
(16,897
|
)
|
|
$
|
66,615
|
|
|
$
|
16,991
|
|
Net income (loss) per share attributable to Blucora, Inc.*:
|
|||||||||||||||
Basic
|
$
|
(0.37
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
1.34
|
|
|
$
|
0.39
|
|
Diluted
|
$
|
(0.37
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
1.28
|
|
|
$
|
0.36
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
47,712
|
|
|
45,459
|
|
|
47,191
|
|
|
43,749
|
|
||||
Diluted
|
47,712
|
|
|
45,459
|
|
|
49,292
|
|
|
46,813
|
|
||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
(13,737
|
)
|
|
$
|
(16,733
|
)
|
|
$
|
67,269
|
|
|
$
|
17,457
|
|
Unrealized gain on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Foreign currency translation adjustment
|
102
|
|
|
223
|
|
|
(147
|
)
|
|
413
|
|
||||
Other comprehensive income (loss)
|
102
|
|
|
223
|
|
|
(147
|
)
|
|
414
|
|
||||
Comprehensive income (loss)
|
(13,635
|
)
|
|
(16,510
|
)
|
|
67,122
|
|
|
17,871
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(227
|
)
|
|
(164
|
)
|
|
(654
|
)
|
|
(466
|
)
|
||||
Comprehensive income (loss) attributable to Blucora, Inc.
|
$
|
(13,862
|
)
|
|
$
|
(16,674
|
)
|
|
$
|
66,468
|
|
|
$
|
17,405
|
|
* The 2018 net income (loss) per share amounts include the noncontrolling interest redemption impact discussed further in "Note 7: Redeemable Noncontrolling Interests" and in "Note 11: Net Income (Loss) Per Share."
|
|
Nine months ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
67,269
|
|
|
$
|
17,457
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
||||
Stock-based compensation
|
9,559
|
|
|
8,434
|
|
||
Depreciation and amortization of acquired intangible assets
|
29,539
|
|
|
28,553
|
|
||
Restructuring (non-cash)
|
—
|
|
|
1,499
|
|
||
Deferred income taxes
|
(1,073
|
)
|
|
(473
|
)
|
||
Amortization of premium on investments, net, and debt issuance costs
|
659
|
|
|
901
|
|
||
Accretion of debt discounts
|
125
|
|
|
1,893
|
|
||
Loss on debt extinguishment
|
1,534
|
|
|
19,764
|
|
||
Cash provided (used) by changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
4,636
|
|
|
3,259
|
|
||
Commissions receivable
|
60
|
|
|
(288
|
)
|
||
Other receivables
|
3,149
|
|
|
2,384
|
|
||
Prepaid expenses and other current assets
|
1,369
|
|
|
1,720
|
|
||
Other long-term assets
|
(902
|
)
|
|
432
|
|
||
Accounts payable
|
(2,255
|
)
|
|
(1,375
|
)
|
||
Commissions and advisory fees payable
|
(2,627
|
)
|
|
(23
|
)
|
||
Deferred revenue
|
(2,411
|
)
|
|
(5,856
|
)
|
||
Accrued expenses and other current and long-term liabilities
|
(3,048
|
)
|
|
949
|
|
||
Net cash provided by operating activities
|
105,583
|
|
|
79,230
|
|
||
Investing Activities:
|
|
|
|
||||
Purchases of property and equipment
|
(5,340
|
)
|
|
(3,809
|
)
|
||
Proceeds from sales of investments
|
—
|
|
|
249
|
|
||
Proceeds from maturities of investments
|
—
|
|
|
7,252
|
|
||
Purchases of investments
|
—
|
|
|
(409
|
)
|
||
Net cash provided (used) by investing activities
|
(5,340
|
)
|
|
3,283
|
|
||
Financing Activities:
|
|
|
|
||||
Proceeds from credit facilities
|
—
|
|
|
367,212
|
|
||
Payments on convertible notes
|
—
|
|
|
(172,827
|
)
|
||
Payments on credit facilities
|
(80,000
|
)
|
|
(285,000
|
)
|
||
Proceeds from stock option exercises
|
11,738
|
|
|
38,228
|
|
||
Proceeds from issuance of stock through employee stock purchase plan
|
1,608
|
|
|
1,428
|
|
||
Tax payments from shares withheld for equity awards
|
(5,983
|
)
|
|
(6,744
|
)
|
||
Contingent consideration payments for business acquisition
|
(1,315
|
)
|
|
(946
|
)
|
||
Net cash used by financing activities
|
(73,952
|
)
|
|
(58,649
|
)
|
||
Net cash provided by continuing operations
|
26,291
|
|
|
23,864
|
|
||
|
|
|
|
||||
Net cash provided by investing activities from discontinued operations
|
—
|
|
|
1,028
|
|
||
Net cash provided by discontinued operations
|
—
|
|
|
1,028
|
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
(11
|
)
|
|
86
|
|
||
Net increase in cash, cash equivalents, and restricted cash
|
26,280
|
|
|
24,978
|
|
||
Cash, cash equivalents, and restricted cash, beginning of period
|
62,311
|
|
|
54,868
|
|
||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
88,591
|
|
|
$
|
79,846
|
|
Non-cash investing and financing activities from continuing operations:
|
|
|
|
||||
|
|
|
|
||||
Cash paid for income taxes
|
$
|
1,096
|
|
|
$
|
1,013
|
|
Cash paid for interest
|
$
|
11,573
|
|
|
$
|
14,205
|
|
|
September 30,
|
|
December 31,
|
||||||||
|
2018
|
|
2017
|
|
2017
|
||||||
Cash and cash equivalents
|
$
|
88,274
|
|
|
$
|
78,558
|
|
|
$
|
59,965
|
|
Cash segregated under federal or other regulations
|
317
|
|
|
313
|
|
|
1,371
|
|
|||
Restricted cash included in "Prepaid expenses and other current assets, net"
|
—
|
|
|
425
|
|
|
425
|
|
|||
Restricted cash included in "Other long-term assets"
|
—
|
|
|
550
|
|
|
550
|
|
|||
Total cash, cash equivalents, and restricted cash
|
$
|
88,591
|
|
|
$
|
79,846
|
|
|
$
|
62,311
|
|
|
First Quarter
|
|
Second Quarter
|
||||||||||||
|
Reported
|
|
Recast
|
|
Reported
|
|
Recast
|
||||||||
Income statement data:
|
|
|
|
|
|
|
|
||||||||
Wealth management services cost of revenue
|
$
|
63,067
|
|
|
$
|
63,064
|
|
|
$
|
62,452
|
|
|
$
|
62,149
|
|
Operating income (loss)
|
52,734
|
|
|
52,737
|
|
|
38,823
|
|
|
39,126
|
|
||||
Net income (loss)
|
45,543
|
|
|
45,546
|
|
|
35,157
|
|
|
35,460
|
|
||||
Net income (loss) attributable to Blucora, Inc.
|
45,338
|
|
|
45,341
|
|
|
34,935
|
|
|
35,238
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to Blucora, Inc.
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.97
|
|
|
$
|
0.97
|
|
|
$
|
0.74
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
46,641
|
|
|
46,641
|
|
|
47,221
|
|
|
47,221
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Wealth Management
|
$
|
91,887
|
|
|
$
|
86,809
|
|
|
$
|
275,984
|
|
|
$
|
254,772
|
|
Tax Preparation
|
3,498
|
|
|
3,362
|
|
|
183,214
|
|
|
156,936
|
|
||||
Total revenue
|
95,385
|
|
|
90,171
|
|
|
459,198
|
|
|
411,708
|
|
||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
Wealth Management
|
12,891
|
|
|
12,425
|
|
|
38,920
|
|
|
36,684
|
|
||||
Tax Preparation
|
(6,936
|
)
|
|
(6,238
|
)
|
|
95,991
|
|
|
83,410
|
|
||||
Corporate-level activity
|
(16,647
|
)
|
|
(17,513
|
)
|
|
(53,740
|
)
|
|
(57,536
|
)
|
||||
Total operating income
|
(10,692
|
)
|
|
(11,326
|
)
|
|
81,171
|
|
|
62,558
|
|
||||
Other loss, net
|
(3,863
|
)
|
|
(5,241
|
)
|
|
(11,850
|
)
|
|
(39,149
|
)
|
||||
Income tax benefit (expense)
|
818
|
|
|
(166
|
)
|
|
(2,052
|
)
|
|
(5,952
|
)
|
||||
Net income
|
$
|
(13,737
|
)
|
|
$
|
(16,733
|
)
|
|
$
|
67,269
|
|
|
$
|
17,457
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Wealth Management:
|
|
|
|
|
|
|
|
||||||||
Commission
|
$
|
41,015
|
|
|
$
|
39,432
|
|
|
$
|
124,269
|
|
|
$
|
117,181
|
|
Advisory
|
41,443
|
|
|
37,588
|
|
|
120,802
|
|
|
107,078
|
|
||||
Asset-based
|
6,979
|
|
|
6,526
|
|
|
21,457
|
|
|
19,276
|
|
||||
Transaction and fee
|
2,450
|
|
|
3,263
|
|
|
9,456
|
|
|
11,237
|
|
||||
Total Wealth Management revenue
|
$
|
91,887
|
|
|
$
|
86,809
|
|
|
$
|
275,984
|
|
|
$
|
254,772
|
|
Tax Preparation:
|
|
|
|
|
|
|
|
||||||||
Consumer
|
$
|
3,246
|
|
|
$
|
3,149
|
|
|
$
|
168,295
|
|
|
$
|
143,239
|
|
Professional
|
252
|
|
|
213
|
|
|
14,919
|
|
|
13,697
|
|
||||
Total Tax Preparation revenue
|
$
|
3,498
|
|
|
$
|
3,362
|
|
|
$
|
183,214
|
|
|
$
|
156,936
|
|
|
Employee-Related Termination Costs
|
|
Contract Termination Costs
|
|
Total
|
||||||
Balance as of December 31, 2017
|
$
|
1,202
|
|
|
$
|
681
|
|
|
1,883
|
|
|
Restructuring charges
|
291
|
|
|
—
|
|
|
291
|
|
|||
Payments
|
(1,202
|
)
|
|
(212
|
)
|
|
(1,414
|
)
|
|||
Balance as of September 30, 2018
|
$
|
291
|
|
|
$
|
469
|
|
|
$
|
760
|
|
|
|
|
Fair value measurements at the reporting date using
|
||||||||||||
|
September 30, 2018
|
|
Quoted prices in
active markets using identical assets (Level 1) |
|
Significant other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
Cash equivalents: money market and other funds
|
$
|
23,055
|
|
|
$
|
—
|
|
|
$
|
23,055
|
|
|
$
|
—
|
|
Total assets at fair value
|
$
|
23,055
|
|
|
$
|
—
|
|
|
$
|
23,055
|
|
|
$
|
—
|
|
Acquisition-related contingent consideration liability
|
$
|
1,346
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,346
|
|
Total liabilities at fair value
|
$
|
1,346
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,346
|
|
|
|
|
Fair value measurements at the reporting date using
|
||||||||||||
|
December 31, 2017
|
|
Quoted prices in
active markets
using identical
assets
(Level 1)
|
|
Significant other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
Cash equivalents: money market and other funds
|
$
|
10,857
|
|
|
$
|
—
|
|
|
$
|
10,857
|
|
|
$
|
—
|
|
Total assets at fair value
|
$
|
10,857
|
|
|
$
|
—
|
|
|
$
|
10,857
|
|
|
$
|
—
|
|
Acquisition-related contingent consideration liability
|
$
|
2,689
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,689
|
|
Total liabilities at fair value
|
$
|
2,689
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,689
|
|
Acquisition-related contingent consideration liability:
|
|
||
Balance as of December 31, 2017
|
$
|
2,689
|
|
Payment
|
(1,315
|
)
|
|
Foreign currency transaction gain
|
(28
|
)
|
|
Balance as of September 30, 2018
|
$
|
1,346
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
|
Principal
amount
|
|
Discount
|
|
Debt issuance costs
|
|
Net
carrying
value
|
|
Principal
amount
|
|
Discount
|
|
Debt issuance costs
|
|
Net
carrying
value
|
||||||||||||||||
Senior secured credit facility
|
$
|
265,000
|
|
|
$
|
(1,008
|
)
|
|
$
|
(3,784
|
)
|
|
$
|
260,208
|
|
|
$
|
345,000
|
|
|
$
|
(1,455
|
)
|
|
$
|
(5,464
|
)
|
|
$
|
338,081
|
|
|
Redeemable Noncontrolling Interests
|
|
Blucora, Inc.
|
||||
Balance as of December 31, 2017
|
$
|
18,033
|
|
|
$
|
541,387
|
|
Common stock issued for stock options and restricted stock units
|
—
|
|
|
12,332
|
|
||
Common stock issued for employee stock purchase plan
|
—
|
|
|
1,608
|
|
||
Other comprehensive income (loss)
|
—
|
|
|
(147
|
)
|
||
Stock-based compensation
|
—
|
|
|
9,559
|
|
||
Tax payments from shares withheld for equity awards
|
—
|
|
|
(5,983
|
)
|
||
Impact of adoption of new accounting guidance related to revenue recognition
|
—
|
|
|
1,851
|
|
||
Net income
|
654
|
|
|
66,615
|
|
||
Adjustment of redeemable noncontrolling interests to redemption value
|
3,537
|
|
|
(3,537
|
)
|
||
Balance as of September 30, 2018
|
$
|
22,224
|
|
|
$
|
623,685
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Cost of revenue
|
$
|
413
|
|
|
$
|
412
|
|
|
$
|
940
|
|
|
$
|
546
|
|
Engineering and technology
|
178
|
|
|
225
|
|
|
590
|
|
|
734
|
|
||||
Sales and marketing
|
617
|
|
|
529
|
|
|
1,835
|
|
|
1,801
|
|
||||
General and administrative
|
1,666
|
|
|
1,966
|
|
|
6,194
|
|
|
5,353
|
|
||||
Restructuring
|
—
|
|
|
97
|
|
|
—
|
|
|
1,078
|
|
||||
Total
|
$
|
2,874
|
|
|
$
|
3,229
|
|
|
$
|
9,559
|
|
|
$
|
9,512
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Stock options exercised
|
188
|
|
|
1,243
|
|
|
1,060
|
|
|
3,651
|
|
RSUs vested
|
90
|
|
|
91
|
|
|
310
|
|
|
442
|
|
Shares purchased pursuant to ESPP
|
45
|
|
|
62
|
|
|
80
|
|
|
138
|
|
Total
|
323
|
|
|
1,396
|
|
|
1,450
|
|
|
4,231
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Percentage
Change |
|
2018
|
|
2017
|
|
Percentage
Change |
||||||||||
Revenue
|
$
|
95,385
|
|
|
$
|
90,171
|
|
|
6
|
%
|
|
$
|
459,198
|
|
|
$
|
411,708
|
|
|
12
|
%
|
Operating income (loss)
|
$
|
(10,692
|
)
|
|
$
|
(11,326
|
)
|
|
(6
|
)%
|
|
$
|
81,171
|
|
|
$
|
62,558
|
|
|
30
|
%
|
•
|
$4.6 million increase in the Wealth Management segment’s operating expenses, primarily due to higher commissions paid to our financial advisors, which fluctuated in proportion to the change in underlying commission and advisory revenues earned on client accounts, and consulting costs and costs incurred in connection with our transition to a new clearing firm, which was completed in the third quarter of 2018.
|
•
|
$0.8 million increase in the Tax Preparation segment’s operating expenses, primarily due to higher spend on consulting expenses and personnel-related expenses due to higher headcount.
|
•
|
$0.9 million decrease in corporate-level expense activity, primarily related to lower amortization expense as certain assets became fully amortized.
|
•
|
$19.0 million increase in the Wealth Management segment’s operating expenses, primarily due to higher commissions paid to our financial advisors, which fluctuated in proportion to the change in underlying commission and advisory revenues earned on client accounts, consulting costs and costs incurred in connection with our transition to a new clearing firm, which was completed in the third quarter of 2018, and an increase in stock-based compensation expense related to stock options granted to certain HD Vest financial advisors.
|
•
|
$13.7 million increase in the Tax Preparation segment’s operating expenses, primarily due to higher spend on marketing, particularly offline media and digital marketing efforts, an increase in engineering development projects, and an increase in consulting expenses primarily related to strategic initiatives.
|
•
|
$3.8 million decrease in corporate-level expense activity, primarily due to lower Strategic Transformation Costs, which primarily consisted of severance and other personnel-related costs, offset by higher depreciation due to the abandonment of certain internally-developed software fixed assets.
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Percentage
Change
|
|
2018
|
|
2017
|
|
Percentage
Change |
||||||||||
Revenue
|
$
|
91,887
|
|
|
$
|
86,809
|
|
|
6
|
%
|
|
$
|
275,984
|
|
|
$
|
254,772
|
|
|
8
|
%
|
Operating income
|
$
|
12,891
|
|
|
$
|
12,425
|
|
|
4
|
%
|
|
$
|
38,920
|
|
|
$
|
36,684
|
|
|
6
|
%
|
Segment margin
|
14
|
%
|
|
14
|
%
|
|
|
|
14
|
%
|
|
14
|
%
|
|
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
Sources of Revenue
|
Primary Drivers
|
2018
|
|
2017
|
|
Percentage
Change
|
|
2018
|
|
2017
|
|
Percentage
Change
|
||||||||||
Advisor-driven
|
Commission
|
- Transactions
- Asset levels
|
$
|
41,015
|
|
|
$
|
39,432
|
|
|
4
|
%
|
|
$
|
124,269
|
|
|
$
|
117,181
|
|
|
6
|
%
|
Advisory
|
- Advisory asset levels
|
41,443
|
|
|
37,588
|
|
|
10
|
%
|
|
120,802
|
|
|
107,078
|
|
|
13
|
%
|
|||||
Other revenue
|
Asset-based
|
- Cash balances
- Interest rates
- Number of accounts
- Client asset levels
|
6,979
|
|
|
6,526
|
|
|
7
|
%
|
|
21,457
|
|
|
19,276
|
|
|
11
|
%
|
||||
Transaction and fee
|
- Account activity
- Number of clients
- Number of advisors
- Number of accounts
|
2,450
|
|
|
3,263
|
|
|
(25
|
)%
|
|
9,456
|
|
|
11,237
|
|
|
(16
|
)%
|
|||||
|
Total revenue
|
$
|
91,887
|
|
|
$
|
86,809
|
|
|
6
|
%
|
|
$
|
275,984
|
|
|
$
|
254,772
|
|
|
8
|
%
|
|
|
Total recurring revenue
|
$
|
74,228
|
|
|
$
|
70,539
|
|
|
5
|
%
|
|
$
|
222,559
|
|
|
$
|
203,417
|
|
|
9
|
%
|
|
|
Recurring revenue rate
|
80.8
|
%
|
|
81.3
|
%
|
|
|
|
80.6
|
%
|
|
79.8
|
%
|
|
|
(In thousands, except percentages and as otherwise indicated)
|
September 30,
|
|||||||||
|
2018
|
|
2017
|
|
Percentage
Change
|
|||||
Total Client Assets
|
$
|
46,413,409
|
|
|
$
|
42,696,862
|
|
|
9
|
%
|
Brokerage Assets
|
$
|
32,897,081
|
|
|
$
|
30,712,542
|
|
|
7
|
%
|
Advisory Assets
|
$
|
13,516,328
|
|
|
$
|
11,984,320
|
|
|
13
|
%
|
Percentage of Total Client Assets
|
29.1
|
%
|
|
28.1
|
%
|
|
|
|||
Number of advisors (in ones)
|
3,687
|
|
|
4,392
|
|
|
(16
|
)%
|
||
Advisor-driven revenue per advisor
|
$
|
22.4
|
|
|
$
|
17.5
|
|
|
28
|
%
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Percentage
Change
|
|
2018
|
|
2017
|
|
Percentage
Change |
||||||||||
By product category:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mutual funds
|
$
|
21,201
|
|
|
$
|
21,128
|
|
|
—
|
%
|
|
$
|
66,494
|
|
|
$
|
62,371
|
|
|
7
|
%
|
Variable annuities
|
13,033
|
|
|
12,879
|
|
|
1
|
%
|
|
38,883
|
|
|
36,820
|
|
|
6
|
%
|
||||
Insurance
|
3,910
|
|
|
3,037
|
|
|
29
|
%
|
|
10,361
|
|
|
9,715
|
|
|
7
|
%
|
||||
General securities
|
2,871
|
|
|
2,388
|
|
|
20
|
%
|
|
8,531
|
|
|
8,275
|
|
|
3
|
%
|
||||
Total commission revenue
|
$
|
41,015
|
|
|
$
|
39,432
|
|
|
4
|
%
|
|
$
|
124,269
|
|
|
$
|
117,181
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
By type of commission:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales-based
|
$
|
16,928
|
|
|
$
|
15,590
|
|
|
9
|
%
|
|
$
|
51,192
|
|
|
$
|
49,190
|
|
|
4
|
%
|
Trailing
|
24,087
|
|
|
23,842
|
|
|
1
|
%
|
|
73,077
|
|
|
67,991
|
|
|
7
|
%
|
||||
Total commission revenue
|
$
|
41,015
|
|
|
$
|
39,432
|
|
|
4
|
%
|
|
$
|
124,269
|
|
|
$
|
117,181
|
|
|
6
|
%
|
(In thousands)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance, beginning of the period
|
$
|
12,947,193
|
|
|
$
|
11,551,288
|
|
|
$
|
12,530,165
|
|
|
$
|
10,397,071
|
|
Net increase in new advisory assets
|
202,156
|
|
|
94,408
|
|
|
609,970
|
|
|
613,848
|
|
||||
Market impact and other
|
366,979
|
|
|
338,624
|
|
|
376,193
|
|
|
973,401
|
|
||||
Balance, end of the period
|
$
|
13,516,328
|
|
|
$
|
11,984,320
|
|
|
$
|
13,516,328
|
|
|
$
|
11,984,320
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Percentage
Change
|
|
2018
|
|
2017
|
|
Percentage
Change |
||||||||||
Revenue
|
$
|
3,498
|
|
|
$
|
3,362
|
|
|
4
|
%
|
|
$
|
183,214
|
|
|
$
|
156,936
|
|
|
17
|
%
|
Operating income (loss)
|
$
|
(6,936
|
)
|
|
$
|
(6,238
|
)
|
|
11
|
%
|
|
$
|
95,991
|
|
|
$
|
83,410
|
|
|
15
|
%
|
Segment margin
|
(198
|
)%
|
|
(186
|
)%
|
|
|
|
52
|
%
|
|
53
|
%
|
|
|
(In thousands)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Operating expenses
|
$
|
4,572
|
|
|
$
|
4,587
|
|
|
$
|
(15
|
)
|
|
$
|
14,351
|
|
|
$
|
17,823
|
|
|
$
|
(3,472
|
)
|
Stock-based compensation
|
2,874
|
|
|
3,132
|
|
|
(258
|
)
|
|
9,559
|
|
|
8,434
|
|
|
1,125
|
|
||||||
Depreciation
|
930
|
|
|
1,023
|
|
|
(93
|
)
|
|
4,056
|
|
|
3,216
|
|
|
840
|
|
||||||
Amortization of acquired intangible assets
|
8,271
|
|
|
8,665
|
|
|
(394
|
)
|
|
25,483
|
|
|
25,337
|
|
|
146
|
|
||||||
Restructuring
|
—
|
|
|
106
|
|
|
(106
|
)
|
|
291
|
|
|
2,726
|
|
|
(2,435
|
)
|
||||||
Total corporate-level activity
|
$
|
16,647
|
|
|
$
|
17,513
|
|
|
$
|
(866
|
)
|
|
$
|
53,740
|
|
|
$
|
57,536
|
|
|
$
|
(3,796
|
)
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Wealth management services cost of revenue
|
$
|
62,313
|
|
|
$
|
59,607
|
|
|
$
|
2,706
|
|
|
$
|
187,526
|
|
|
$
|
172,444
|
|
|
$
|
15,082
|
|
Tax preparation services cost of revenue
|
1,370
|
|
|
1,314
|
|
|
56
|
|
|
8,182
|
|
|
7,543
|
|
|
639
|
|
||||||
Amortization of acquired technology
|
—
|
|
|
50
|
|
|
(50
|
)
|
|
99
|
|
|
145
|
|
|
(46
|
)
|
||||||
Total cost of revenue
|
$
|
63,683
|
|
|
$
|
60,971
|
|
|
$
|
2,712
|
|
|
$
|
195,807
|
|
|
$
|
180,132
|
|
|
$
|
15,675
|
|
Percentage of revenue
|
67
|
%
|
|
68
|
%
|
|
|
|
43
|
%
|
|
44
|
%
|
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Engineering and technology
|
$
|
4,246
|
|
|
$
|
5,051
|
|
|
$
|
(805
|
)
|
|
$
|
14,225
|
|
|
$
|
14,041
|
|
|
$
|
184
|
|
Percentage of revenue
|
4
|
%
|
|
6
|
%
|
|
|
|
3
|
%
|
|
3
|
%
|
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Sales and marketing
|
$
|
15,675
|
|
|
$
|
13,680
|
|
|
$
|
1,995
|
|
|
$
|
94,719
|
|
|
$
|
84,974
|
|
|
$
|
9,745
|
|
Percentage of revenue
|
16
|
%
|
|
15
|
%
|
|
|
|
21
|
%
|
|
21
|
%
|
|
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
General and administrative
|
$
|
13,404
|
|
|
$
|
12,207
|
|
|
$
|
1,197
|
|
|
$
|
43,895
|
|
|
$
|
39,405
|
|
|
$
|
4,490
|
|
Percentage of revenue
|
14
|
%
|
|
14
|
%
|
|
|
|
10
|
%
|
|
10
|
%
|
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Depreciation
|
$
|
798
|
|
|
$
|
867
|
|
|
$
|
(69
|
)
|
|
$
|
3,706
|
|
|
$
|
2,680
|
|
|
$
|
1,026
|
|
Amortization of acquired intangible assets
|
8,271
|
|
|
8,615
|
|
|
(344
|
)
|
|
25,384
|
|
|
25,192
|
|
|
192
|
|
||||||
Total
|
$
|
9,069
|
|
|
$
|
9,482
|
|
|
$
|
(413
|
)
|
|
$
|
29,090
|
|
|
$
|
27,872
|
|
|
$
|
1,218
|
|
Percentage of revenue
|
10
|
%
|
|
11
|
%
|
|
|
|
6
|
%
|
|
7
|
%
|
|
|
(In thousands, except percentages)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Restructuring
|
$
|
—
|
|
|
$
|
106
|
|
|
$
|
(106
|
)
|
|
$
|
291
|
|
|
$
|
2,726
|
|
|
$
|
(2,435
|
)
|
Percentage of revenue
|
—
|
%
|
|
—
|
%
|
|
|
|
—
|
%
|
|
1
|
%
|
|
|
(In thousands)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Interest income
|
$
|
(119
|
)
|
|
$
|
(31
|
)
|
|
$
|
(88
|
)
|
|
$
|
(217
|
)
|
|
$
|
(76
|
)
|
|
$
|
(141
|
)
|
Interest expense
|
3,744
|
|
|
4,781
|
|
|
(1,037
|
)
|
|
11,772
|
|
|
16,746
|
|
|
(4,974
|
)
|
||||||
Amortization of debt issuance costs
|
172
|
|
|
177
|
|
|
(5
|
)
|
|
659
|
|
|
891
|
|
|
(232
|
)
|
||||||
Accretion of debt discounts
|
38
|
|
|
53
|
|
|
(15
|
)
|
|
125
|
|
|
1,893
|
|
|
(1,768
|
)
|
||||||
Loss on debt extinguishment
|
—
|
|
|
183
|
|
|
(183
|
)
|
|
1,534
|
|
|
19,764
|
|
|
(18,230
|
)
|
||||||
Other
|
28
|
|
|
78
|
|
|
(50
|
)
|
|
(2,023
|
)
|
|
(69
|
)
|
|
(1,954
|
)
|
||||||
Other loss, net
|
$
|
3,863
|
|
|
$
|
5,241
|
|
|
$
|
(1,378
|
)
|
|
$
|
11,850
|
|
|
$
|
39,149
|
|
|
$
|
(27,299
|
)
|
(In thousands)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss) attributable to Blucora, Inc.
|
$
|
(13,964
|
)
|
|
$
|
(16,897
|
)
|
|
$
|
66,615
|
|
|
$
|
16,991
|
|
Stock-based compensation
|
2,874
|
|
|
3,132
|
|
|
9,559
|
|
|
8,434
|
|
||||
Depreciation and amortization of acquired intangible assets
|
9,201
|
|
|
9,688
|
|
|
29,539
|
|
|
28,553
|
|
||||
Restructuring
|
—
|
|
|
106
|
|
|
291
|
|
|
2,726
|
|
||||
Other loss, net
|
3,863
|
|
|
5,241
|
|
|
11,850
|
|
|
39,149
|
|
||||
Net income attributable to noncontrolling interests
|
227
|
|
|
164
|
|
|
654
|
|
|
466
|
|
||||
Income tax (benefit) expense
|
(818
|
)
|
|
166
|
|
|
2,052
|
|
|
5,952
|
|
||||
Adjusted EBITDA
|
$
|
1,383
|
|
|
$
|
1,600
|
|
|
$
|
120,560
|
|
|
$
|
102,271
|
|
(In thousands, except per share amounts)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss) attributable to Blucora, Inc.
|
$
|
(13,964
|
)
|
|
$
|
(16,897
|
)
|
|
$
|
66,615
|
|
|
$
|
16,991
|
|
Stock-based compensation
|
2,874
|
|
|
3,132
|
|
|
9,559
|
|
|
8,434
|
|
||||
Amortization of acquired intangible assets
|
8,271
|
|
|
8,665
|
|
|
25,483
|
|
|
25,337
|
|
||||
Accretion of debt discount on the Notes
|
—
|
|
|
—
|
|
|
—
|
|
|
1,567
|
|
||||
Write-off of debt discount and debt issuance costs on terminated Notes
|
—
|
|
|
—
|
|
|
—
|
|
|
6,715
|
|
||||
Write-off of debt discount and debt issuance costs on terminated TaxAct - HD Vest 2015 credit facility
|
—
|
|
|
—
|
|
|
—
|
|
|
9,593
|
|
||||
Restructuring
|
—
|
|
|
106
|
|
|
291
|
|
|
2,726
|
|
||||
Impact of noncontrolling interests
|
227
|
|
|
164
|
|
|
654
|
|
|
466
|
|
||||
Cash tax impact of adjustments to GAAP net income
|
(505
|
)
|
|
(928
|
)
|
|
(1,721
|
)
|
|
(3,334
|
)
|
||||
Non-cash income tax (benefit) expense
|
(1,333
|
)
|
|
224
|
|
|
647
|
|
|
6,325
|
|
||||
Non-GAAP net income (loss)
|
$
|
(4,430
|
)
|
|
$
|
(5,534
|
)
|
|
$
|
101,528
|
|
|
$
|
74,820
|
|
Per diluted share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Blucora, Inc.
|
$
|
(0.37
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
1.28
|
|
|
$
|
0.36
|
|
Stock-based compensation
|
0.06
|
|
|
0.07
|
|
|
0.19
|
|
|
0.18
|
|
||||
Amortization of acquired intangible assets
|
0.18
|
|
|
0.20
|
|
|
0.52
|
|
|
0.55
|
|
||||
Accretion of debt discount on the Notes
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
||||
Write-off of debt discount and debt issuance costs on terminated Notes
|
—
|
|
|
—
|
|
|
—
|
|
|
0.14
|
|
||||
Write-off of debt discount and debt issuance costs on closed TaxAct - HD Vest 2015 credit facility
|
—
|
|
|
—
|
|
|
—
|
|
|
0.20
|
|
||||
Restructuring
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.06
|
|
||||
Impact of noncontrolling interests
|
0.08
|
|
|
—
|
|
|
0.08
|
|
|
0.01
|
|
||||
Cash tax impact of adjustments to GAAP net income
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
(0.07
|
)
|
||||
Non-cash income tax (benefit) expense
|
(0.03
|
)
|
|
—
|
|
|
0.01
|
|
|
0.14
|
|
||||
Non-GAAP net income (loss) per share
|
$
|
(0.09
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
2.06
|
|
|
$
|
1.60
|
|
Weighted average shares outstanding used in computing per diluted share amounts
|
47,712
|
|
|
45,459
|
|
|
49,292
|
|
|
46,813
|
|
(In thousands)
|
Nine months ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
Net cash provided by operating activities
|
$
|
105,583
|
|
|
$
|
79,230
|
|
Net cash provided (used) by investing activities
|
(5,340
|
)
|
|
3,283
|
|
||
Net cash used by financing activities
|
(73,952
|
)
|
|
(58,649
|
)
|
||
Net cash provided by continuing operations
|
26,291
|
|
|
23,864
|
|
||
Net cash provided by discontinued operations
|
—
|
|
|
1,028
|
|
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
(11
|
)
|
|
86
|
|
||
Net increase in cash, cash equivalents, and restricted cash
|
$
|
26,280
|
|
|
$
|
24,978
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Date of First Filing
|
|
Exhibit Number
|
|
Filed
Herewith
|
10.1
|
|
|
|
|
|
|
|
|
X
|
|
10.2
|
|
|
|
|
|
|
|
|
X
|
|
31.1
|
|
|
|
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
|
|
|
|
X
|
|
101
|
|
The following financial statements from the Company's 10-Q for the fiscal quarter ended September 30, 2018, formatted in XBRL: (i) Unaudited Condensed Consolidated Balance Sheets, (ii) Unaudited Condensed Consolidated Statements of Operations, (iii) Unaudited Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Unaudited Condensed Consolidated Financial Statements
|
|
|
|
|
|
|
|
X
|
|
BLUCORA, INC.
|
|
|
|
|
|
By:
|
/s/ Davinder Athwal
|
|
|
Davinder Athwal
Chief Financial Officer
(On behalf of the Registrant and as Principal Financial Officer)
|
|
|
|
|
Date:
|
October 31, 2018
|
1.
|
Certain Definitions
|
2.
|
Duties and Scope of Employment
|
3.
|
Obligations
|
4.
|
Agreement Term
|
5.
|
Compensation and Benefits
|
6.
|
Termination of Employment
|
7.
|
Section 280G
|
8.
|
No Impediment to Agreement
|
9.
|
Confidentiality and Non-Competition Agreement
|
10.
|
Cooperation
|
11.
|
Arbitration
|
12.
|
Successors; Personal Services
|
13.
|
Notices
|
14.
|
Section 409A
|
15.
|
Miscellaneous Provisions
|
BLUCORA, INC.
|
|
By: /s/ John S. Clendening
|
Name: John S. Clendening
|
Title: President and Chief Executive Officer
|
|
|
|
EXECUTIVE:
|
|
/s/ Transient Taylor
|
Transient Taylor
|
Title
|
Date
|
Identifying Number or Brief Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature of Employee
|
|
Print Name of Employee
|
|
Date
|
1.
|
Termination of Employment
|
2.
|
Consideration
|
3.
|
Waiver and Release
|
4.
|
No Interference
|
5.
|
No Admission of Wrongdoing
|
6.
|
Legal Disclosure
|
7.
|
Binding Agreement; Successors and Assigns
|
8.
|
Other Agreements
|
9.
|
Knowing and Voluntary Agreement; Consideration and Revocation Periods
|
10.
|
Disclaimer of Reliance
|
11.
|
Execution in Multiple Counterparts
|
12.
|
Effective Date
|
EXECUTIVE:
|
Signature:
|
|
Printed Name: Transient Taylor
|
|
Date:
|
|
|
THE COMPANY:
|
Blucora, Inc.:
|
|
Signature:
|
|
Name:
|
|
Title:
|
|
Date:
|
|
|
Grant Date:
|
_________________
|
|
|
|
|
|
|
|
|
Number of RSUs
Subject to the Award: |
_________________
|
|
|
|
|
|
|
|
|
Vesting Commencement Date:
|
_________________
|
|
|
|
|
|
|
|
|
BLUCORA, INC.
By:___________________________
Its:___________________________
|
|
EMPLOYEE
____________________________
Signature
|
|
|
Date:______________________________
|
Attachments:
1. Restricted Stock Unit Agreement
2. 2016 Equity Inducement Plan
|
|
Address:____________________________
____________________________
Taxpayer ID:_________________________
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Blucora, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ John S. Clendening
|
|
John S. Clendening
|
|
Chief Executive Officer and President
(Principal Executive Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Blucora, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Davinder Athwal
|
|
Davinder Athwal
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
By:
|
/s/ John S. Clendening
|
|
Name:
|
John S. Clendening
|
|
Title:
|
Chief Executive Officer and President
(Principal Executive Officer)
|
|
By:
|
/s/ Davinder Athwal
|
|
Name:
|
Davinder Athwal
|
|
Title:
|
Chief Financial Officer
(Principal Financial Officer)
|