Blucora, Inc. (BCOR) reported second quarter 2022 results this morning. Diluted Earnings Per Share (EPS) was $0.81, up 26.6% from $0.64 last year. Here are five things you should know about this earnings call:
- Total revenue was $256.9 million, up 1.0% from 2Q2021. Net income was $39.4 million for the quarter, up 24.7% from $31.6 million in 2Q2021. The company’s net leverage ratio was 3.1x, up from 1.9x in 2Q2021, but essentially flat from 3.1x at the end of 2021 and 3.0x in 1Q2022.
- Wealth management revenue registered at $162.7 million, up 0.2% from $162.4 million in 2Q2021. The segment’s quarterly financial professional production retention rate was 99.4%. The total number of financial professionals fell to 3,349, with low producing financial professionals accounting for 90% of the 2Q2022 attrition rate.
- Total client assets declined to $76.5 billion, down 12.9% from 2Q2021 and 11.2% from 1Q2022. The company attributes this to declining market conditions. BCOR’s Avantax wealth management service added $514 million of newly recruited assets in the second quarter, with net new assets of $185 million for the quarter. Year-to-date for the first half of 2022, total newly recruited assets have already surpassed the total from 2021. Advisory assets accounted for 48% of total client assets in 2Q2022. This share increased from 44.9% in 2Q2021 as BCOR’s organic asset inflows shifted toward the more durable advisory platforms.
- Avantax announced the acquisition of the wealth management practice of a financial advisor in Florida, adding approximately $157 million in total client assets. Avantax also announced the addition of over $400 million in total client assets through partnership with a San Diego, California based financial services firm that specializes in advanced estate planning.
- Management believes the wealth management business is in the strongest position it has seen in several years. They believe this is demonstrated by improvements in advisor satisfaction, record levels of newly acquired assets, higher retention levels, net positive flows for two consecutive quarters, meaningful shifts to advisory platforms, and a steady pipeline of product releases to help BCOR’s financial professional base.
To learn more visit – Blucora Reports Second Quarter 2022 Results
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