Today's Viewpoint: A MarshBerry Publication


Blucora, Inc. reported Q3 2022 losses, but topped revenue estimates. Third quarter 2022 diluted Earnings Per Share for the quarter came in at a reported loss of $0.20, matching consensus estimates. Read the five things you should know about this earnings report.


Blucora, Inc. (BCOR) reported Q3 2022 losses, but topped revenue estimates. Third quarter 2022 diluted Earnings Per Share (EPS) for the quarter came in at a reported loss of $0.20, matching consensus estimates. Here are five things you should know about this earnings call:

  1. BCOR announced that they have entered into an agreement for the sale of TaxAct to an affiliate of Cinven for $720 million in an all-cash deal. After tax proceeds are expected to be around $620 million. Post-close, BCOR plans to use the net proceeds to pay down existing debt and return excess capital to shareholders in the range of $400-$450 million. This will allow BCOR to transition into a pure-play wealth management firm and allow them to rebrand as “Avantax.”
  2. Total revenue year-to-date (YTD) was $736.1 million, up from $706.9 million last year, or 4.1%. Net income for 3Q2022 was $21.8 million. Post-closing of the TaxAct deal, BCOR is targeting a leverage ratio of 2.0x to 3.0x net debt/Earnings Before Interest Depreciation and Amortization (EBITDA). BCOR’s anticipated long-term pro forma revenue growth range is 8.5-11% and their adjusted EBITDA margin range is 16-18%.
  3. The wealth management sector’s quarterly revenue was $165.0 million, down 2.4% from $169.1 this time last year. The segment’s quarterly financial professional production retention rate was 98.6%. Financial professionals’ attrition was less than anticipated with low producing financial professionals accounting for 81% of the attrition rate. BCOR’s anticipated 2023 estimated wealth adjusted EBITDA range is $135 to $170 million. This incorporates a more efficient corporate structure that will provide sizeable run-rate savings by end of 2023.
  4. BCOR reduced their term loan balance by $35 million. In addition, they also paid the last earn-out obligation related to the HKFS acquisition for $23 million. BCOR ended 3Q 2022 with $91.1 million in cash and cash equivalents.
  5. BCOR’s Avantax wealth management ended Q3 with total client assets of $72.6 billion and advisory assets of $35.4 billion, or 48.8% of total client assets. Total client assets were down approximately 5.0% from Q2. The company attributes this to declining market conditions. Avantax wealth management service added $214 million of newly recruited assets in the third quarter totaling approximately $1.3 billion of new assets for YTD 2022. YTD newly recruited assets surpass the entire year of 2021’s $929 million.  

To learn more visit – Blucora Reports Third Quarter 2022 Results

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This earnings summary has been prepared by Marsh, Berry & Co., LLC. and is not intended to provide investment recommendations on any company. It is not a research report, as such term is defined by applicable laws and regulations, and it does not contain sufficient information upon which to make an investment decision. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy. These materials are based solely on information contained in publicly available documents and Marsh, Berry & Co., LLC has not independently attempted to investigate or to verify such information.

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