DELAWARE | 000-25131 | 91-1718107 | ||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.0001 per share | BCOR | NASDAQ Global Select Market |
Exhibit No | Description | |||||||
Press release dated August 7, 2019 | ||||||||
Supplemental financial information dated August 7, 2019 |
BLUCORA, INC. | ||||||||
By | /s/ Davinder Athwal | |||||||
Davinder Athwal | ||||||||
Chief Financial Officer | ||||||||
August 7, 2019 |
Q2 | Q2 | ||||||||||||||||
2019 | 2018 | Change | |||||||||||||||
Revenue: | |||||||||||||||||
Wealth Management | $ | 127.8 | $ | 92.0 | 39 | % | |||||||||||
Tax Preparation | $ | 65.9 | $ | 65.8 | — | % | |||||||||||
Total Revenue | $ | 193.7 | $ | 157.8 | 23 | % | |||||||||||
Segment Income: | |||||||||||||||||
Wealth Management | $ | 17.0 | $ | 13.0 | 31 | % | |||||||||||
Tax Preparation | $ | 41.4 | $ | 44.1 | (6) | % | |||||||||||
Total Segment Income | $ | 58.3 | $ | 57.1 | 2 | % | |||||||||||
Unallocated Corporate Operating Expenses | $ | (6.2) | $ | (4.2) | 47 | % | |||||||||||
GAAP: | |||||||||||||||||
Operating Income | $ | 28.0 | $ | 39.1 | (28) | % | |||||||||||
Net Income Attributable to Blucora, Inc. | $ | 31.0 | $ | 35.2 | (12) | % | |||||||||||
Diluted Net Income Per Share Attributable to Blucora, Inc. (EPS) | $ | 0.62 | $ | 0.71 | (13) | % | |||||||||||
Non-GAAP*: | |||||||||||||||||
Adjusted EBITDA* | $ | 52.1 | $ | 52.8 | (1) | % | |||||||||||
Net Income* | $ | 41.4 | $ | 47.7 | (13) | % | |||||||||||
Diluted Net Income Per Share (EPS)* | $ | 0.83 | $ | 0.97 | (14) | % | |||||||||||
* See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below. |
Second Quarter Results vs. Prior Guidance | ||||||||||||||
$ in millions | Prior Guidance | Midpoint | Actual | Difference at Midpoint | ||||||||||
Wealth Management Revenue | $121.0 - $125.5 | 123.3 | 127.8 | 4.5 | ||||||||||
HD Vest | $95.5 - $98.5 | 97 | 98.8 | 1.8 | ||||||||||
1st Global (May 6-Jun 30) | $25.5 - $27.0 | 26.3 | 29 | 2.7 | ||||||||||
TaxAct Revenue | $67.5 – $68.0 | 67.8 | 65.9 | -1.9 | ||||||||||
Total Revenue | $188.5 - $193.5** | 191 | 193.7 | 2.7 | ||||||||||
Wealth Management Segment Income | $14.0 - $16.0 | 15 | 17 | 2 | ||||||||||
HD Vest Segment Income | $13.0 - $14.5 | 13.8 | 14.8 | 1 | ||||||||||
1st Global Segment Income | $1.0 - $1.5 | 1.3 | 2.2 | 0.9 | ||||||||||
TaxAct Segment Income | $39.0 - $40.0 | 39.5 | 41.4 | 1.9 | ||||||||||
Corporate Unallocated Operating Expenses | $7.5 - $8.0 | 7.8 | 6.2 | 1.6 | ||||||||||
Adjusted EBITDA* | $45.0 - $48.5** | 46.8 | 52.1 | 5.3 | ||||||||||
**Prior guidance including 1st Global. |
Full Year 2019 Outlook | |||||||||||
$ in millions | Prior Guidance | Current Outlook | Difference at Midpoint | ||||||||
Wealth Management Revenue | $493.0 - $511.0 | $500.0 - $513.0 | 4.5 | ||||||||
HD Vest | $384.5 - $395.5 | ||||||||||
1st Global (May 6-Dec. 31) | $108.5 - $115.5 | ||||||||||
TaxAct Revenue | $211.0 - $213.0 | $210.0 - $211.0 | (1.5) | ||||||||
Total Revenue | $704.0 - $724.0** | $710.0 - $724.0 | 3 | ||||||||
Wealth Management Segment Income | $65.5 - $73.5 | $67.0 - $73.5 | 0.7 | ||||||||
HD Vest Segment Income | $56.5 - $62.5 | ||||||||||
1st Global Segment Income | $9.0 - $11.0 | ||||||||||
TaxAct Segment Income | $92.0 - $95.0 | $93.0 - $94.5 | 0.3 | ||||||||
Corporate Unallocated Operating Expense | $28.5 - $29.5 | $28.5 - $29.5 | 0 | ||||||||
Adjusted EBITDA* | $128.0 - $140.0** | $130.5 - $139.5 | 1 | ||||||||
Net Income | $27.0 - $37.5 | ||||||||||
Net Income per share | $0.54 - $0.75 | ||||||||||
Non-GAAP Net Income* | $92.5 - $102.5 | ||||||||||
Non-GAAP Net Income per share* | $1.84 - $2.04 |
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Wealth management services revenue | $ | 127,831 | $ | 92,015 | $ | 217,363 | $ | 184,097 | |||||||||||||||
Tax preparation services revenue | 65,909 | 65,833 | 202,145 | 179,716 | |||||||||||||||||||
Total revenue | 193,740 | 157,848 | 419,508 | 363,813 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Wealth management services cost of revenue | 87,477 | 62,149 | 148,851 | 125,213 | |||||||||||||||||||
Tax preparation services cost of revenue | 3,149 | 2,459 | 7,350 | 6,812 | |||||||||||||||||||
Amortization of acquired technology | — | 49 | — | 99 | |||||||||||||||||||
Total cost of revenue (1) | 90,626 | 64,657 | 156,201 | 132,124 | |||||||||||||||||||
Engineering and technology (1) | 7,159 | 4,848 | 13,688 | 9,979 | |||||||||||||||||||
Sales and marketing (1) | 29,256 | 23,791 | 84,828 | 79,044 | |||||||||||||||||||
General and administrative (1) | 19,002 | 15,625 | 36,079 | 30,491 | |||||||||||||||||||
Acquisition and integration | 9,183 | — | 10,980 | — | |||||||||||||||||||
Depreciation | 1,315 | 993 | 2,376 | 2,908 | |||||||||||||||||||
Amortization of other acquired intangible assets | 9,169 | 8,806 | 17,213 | 17,113 | |||||||||||||||||||
Restructuring (1) | — | 2 | — | 291 | |||||||||||||||||||
Total operating expenses | 165,710 | 118,722 | 321,365 | 271,950 | |||||||||||||||||||
Operating income | 28,030 | 39,126 | 98,143 | 91,863 | |||||||||||||||||||
Other loss, net (2) | (5,118) | (2,759) | (9,076) | (7,987) | |||||||||||||||||||
Income before income taxes | 22,912 | 36,367 | 89,067 | 83,876 | |||||||||||||||||||
Income tax benefit (expense) | 8,124 | (907) | 4,139 | (2,870) | |||||||||||||||||||
Net income | 31,036 | 35,460 | 93,206 | 81,006 | |||||||||||||||||||
Net income attributable to noncontrolling interests | — | (222) | — | (427) | |||||||||||||||||||
Net income attributable to Blucora, Inc.: | $ | 31,036 | $ | 35,238 | $ | 93,206 | $ | 80,579 | |||||||||||||||
Net income per share attributable to Blucora, Inc.: | |||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.75 | $ | 1.93 | $ | 1.72 | |||||||||||||||
Diluted | $ | 0.62 | $ | 0.71 | $ | 1.88 | $ | 1.64 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 48,555 | 47,221 | 48,358 | 46,931 | |||||||||||||||||||
Diluted | 49,822 | 49,434 | 49,681 | 49,049 |
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Cost of revenue | $ | 896 | $ | 271 | $ | 1,416 | $ | 527 | |||||||||||||||
Engineering and technology | 156 | 202 | 332 | 412 | |||||||||||||||||||
Sales and marketing | 180 | 702 | (13) | 1,218 | |||||||||||||||||||
General and administrative | 2,850 | 2,555 | 4,790 | 4,528 | |||||||||||||||||||
Total stock-based compensation expense | $ | 4,082 | $ | 3,730 | $ | 6,525 | $ | 6,685 |
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Interest income | $ | (149) | $ | (58) | $ | (289) | $ | (98) | |||||||||||||||
Interest expense | 4,770 | 3,847 | 8,546 | 8,028 | |||||||||||||||||||
Amortization of debt issuance costs | 375 | 284 | 547 | 487 | |||||||||||||||||||
Accretion of debt discounts | 85 | 40 | 123 | 87 | |||||||||||||||||||
Loss on debt extinguishment | — | 758 | — | 1,534 | |||||||||||||||||||
Other | 37 | (2,112) | 149 | (2,051) | |||||||||||||||||||
Other loss, net | $ | 5,118 | $ | 2,759 | $ | 9,076 | $ | 7,987 |
June 30, 2019 | December 31, 2018 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 109,606 | $ | 84,524 | |||||||
Cash segregated under federal or other regulations | 146 | 842 | |||||||||
Accounts receivable, net of allowance | 20,391 | 15,721 | |||||||||
Commissions receivable | 19,857 | 15,562 | |||||||||
Other receivables | 8,069 | 7,408 | |||||||||
Prepaid expenses and other current assets, net | 10,595 | 7,755 | |||||||||
Total current assets | 168,664 | 131,812 | |||||||||
Long-term assets: | |||||||||||
Property and equipment, net | 15,090 | 12,389 | |||||||||
Right-of-use assets, net | 11,338 | — | |||||||||
Goodwill, net | 674,130 | 548,685 | |||||||||
Other intangible assets, net | 355,596 | 294,603 | |||||||||
Other long-term assets | 10,820 | 10,236 | |||||||||
Total long-term assets | 1,066,974 | 865,913 | |||||||||
Total assets | $ | 1,235,638 | $ | 997,725 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 7,945 | $ | 3,798 | |||||||
Commissions and advisory fees payable | 18,810 | 15,199 | |||||||||
Accrued expenses and other current liabilities | 43,429 | 18,980 | |||||||||
Lease liabilities | 7,168 | 46 | |||||||||
Deferred revenue | 4,158 | 10,257 | |||||||||
Current portion of long-term debt, net | 919 | — | |||||||||
Total current liabilities | 82,429 | 48,280 | |||||||||
Long-term liabilities: | |||||||||||
Long-term debt, net | 381,579 | 260,390 | |||||||||
Deferred tax liability, net | 44,840 | 40,394 | |||||||||
Deferred revenue | 7,635 | 8,581 | |||||||||
Lease liabilities | 6,911 | 100 | |||||||||
Other long-term liabilities | 7,012 | 7,440 | |||||||||
Total long-term liabilities | 447,977 | 316,905 | |||||||||
Total liabilities | 530,406 | 365,185 | |||||||||
Redeemable noncontrolling interests | — | 24,945 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock | 5 | 5 | |||||||||
Additional paid-in capital | 1,575,554 | 1,569,725 | |||||||||
Accumulated deficit | (870,119) | (961,689) | |||||||||
Accumulated other comprehensive loss | (208) | (446) | |||||||||
Total stockholders’ equity | 705,232 | 607,595 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,235,638 | $ | 997,725 |
Six months ended June 30, | |||||||||||
2019 | 2018 | ||||||||||
Operating Activities: | |||||||||||
Net income | $ | 93,206 | $ | 81,006 | |||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Stock-based compensation | 6,525 | 6,685 | |||||||||
Depreciation and amortization of acquired intangible assets | 20,185 | 20,338 | |||||||||
Reduction of right-of-use lease assets | 1,977 | — | |||||||||
Deferred income taxes | 4,446 | (781) | |||||||||
Amortization of premium on investments, net, and debt issuance costs | 547 | 487 | |||||||||
Accretion of debt discounts | 123 | 87 | |||||||||
Loss on debt extinguishment | — | 1,533 | |||||||||
Other | 260 | — | |||||||||
Cash provided (used) by changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (3,217) | 4,096 | |||||||||
Commissions receivable | 847 | 2 | |||||||||
Other receivables | (661) | 3,142 | |||||||||
Prepaid expenses and other current assets | 12,258 | 461 | |||||||||
Other long-term assets | (355) | (764) | |||||||||
Accounts payable | (2,995) | 59 | |||||||||
Commissions and advisory fees payable | (663) | (655) | |||||||||
Lease liabilities | (2,066) | — | |||||||||
Deferred revenue | (24,760) | (5,746) | |||||||||
Accrued expenses and other current and long-term liabilities | (8,845) | (3,393) | |||||||||
Net cash provided by operating activities | 96,812 | 106,557 | |||||||||
Investing Activities: | |||||||||||
Business acquisition, net of cash acquired | (164,461) | — | |||||||||
Purchases of property and equipment | (2,938) | (2,602) | |||||||||
Net cash used by investing activities | (167,399) | (2,602) | |||||||||
Financing Activities: | |||||||||||
Proceeds from credit facilities | 121,499 | — | |||||||||
Payments on credit facilities | — | (80,000) | |||||||||
Payment of redeemable noncontrolling interests | (24,945) | — | |||||||||
Proceeds from stock option exercises | 3,320 | 10,386 | |||||||||
Proceeds from issuance of stock through employee stock purchase plan | 1,144 | 704 | |||||||||
Tax payments from shares withheld for equity awards | (5,160) | (4,229) | |||||||||
Contingent consideration payments for business acquisition | (943) | (1,315) | |||||||||
Net cash provided (used) by financing activities | 94,915 | (74,454) | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 58 | (30) | |||||||||
Net increase in cash, cash equivalents, and restricted cash | 24,386 | 29,471 | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 85,366 | 62,311 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 109,752 | $ | 91,782 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Wealth Management (1) | $ | 127,831 | $ | 92,015 | $ | 217,363 | $ | 184,097 | |||||||||||||||
Tax Preparation (1) | 65,909 | 65,833 | 202,145 | 179,716 | |||||||||||||||||||
Total revenue | 193,740 | 157,848 | 419,508 | 363,813 | |||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
Wealth Management | 16,979 | 12,954 | 28,519 | 26,029 | |||||||||||||||||||
Tax Preparation | 41,368 | 44,121 | 120,640 | 102,927 | |||||||||||||||||||
Corporate-level activity (2) | (30,317) | (17,949) | (51,016) | (37,093) | |||||||||||||||||||
Total operating income | 28,030 | 39,126 | 98,143 | 91,863 | |||||||||||||||||||
Other loss, net | (5,118) | (2,759) | (9,076) | (7,987) | |||||||||||||||||||
Income tax benefit (expense) | 8,124 | (907) | 4,139 | (2,870) | |||||||||||||||||||
Net income | $ | 31,036 | $ | 35,460 | $ | 93,206 | $ | 81,006 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Wealth Management: | |||||||||||||||||||||||
Commission | $ | 48,068 | $ | 40,384 | $ | 85,228 | $ | 83,254 | |||||||||||||||
Advisory | 61,410 | 40,058 | 101,167 | 79,359 | |||||||||||||||||||
Asset-based | 13,219 | 7,306 | 22,912 | 14,478 | |||||||||||||||||||
Transaction and fee | 5,134 | 4,267 | 8,056 | 7,006 | |||||||||||||||||||
Total Wealth Management revenue | $ | 127,831 | $ | 92,015 | $ | 217,363 | $ | 184,097 | |||||||||||||||
Tax Preparation: | |||||||||||||||||||||||
Consumer | $ | 62,686 | $ | 63,137 | $ | 186,628 | $ | 165,049 | |||||||||||||||
Professional | 3,223 | 2,696 | 15,517 | 14,667 | |||||||||||||||||||
Total Tax Preparation revenue | $ | 65,909 | $ | 65,833 | $ | 202,145 | $ | 179,716 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Operating expenses | $ | (6,221) | $ | (4,238) | $ | (13,326) | $ | (9,779) | |||||||||||||||
Stock-based compensation | (4,082) | (3,730) | (6,525) | (6,685) | |||||||||||||||||||
Acquisition-related costs | (9,183) | — | (10,980) | — | |||||||||||||||||||
Depreciation | (1,662) | (1,124) | (2,972) | (3,126) | |||||||||||||||||||
Amortization of acquired intangible assets | (9,169) | (8,855) | (17,213) | (17,212) | |||||||||||||||||||
Restructuring | — | (2) | — | (291) | |||||||||||||||||||
Total corporate-level activity | $ | (30,317) | $ | (17,949) | $ | (51,016) | $ | (37,093) |
(In thousands) | Three Months Ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net income attributable to Blucora, Inc. (2) | $ | 31,036 | $ | 35,238 | $ | 93,206 | $ | 80,579 | |||||||||||||||
Stock-based compensation | 4,082 | 3,730 | 6,525 | 6,685 | |||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 10,831 | 9,979 | 20,185 | 20,338 | |||||||||||||||||||
Restructuring | — | 2 | — | 291 | |||||||||||||||||||
Other loss, net (3) | 5,118 | 2,759 | 9,076 | 7,987 | |||||||||||||||||||
Net income attributable to noncontrolling interests | — | 222 | — | 427 | |||||||||||||||||||
Acquisition and integration costs | 9,183 | — | 10,980 | — | |||||||||||||||||||
Income tax (benefit) expense | (8,124) | 907 | (4,139) | 2,870 | |||||||||||||||||||
Adjusted EBITDA | $ | 52,126 | $ | 52,837 | $ | 135,833 | $ | 119,177 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net income attributable to Blucora, Inc. (2) | $ | 31,036 | $ | 35,238 | $ | 93,206 | $ | 80,579 | |||||||||||||||
Stock-based compensation | 4,082 | 3,730 | 6,525 | 6,685 | |||||||||||||||||||
Amortization of acquired intangible assets | 9,169 | 8,855 | 17,213 | 17,212 | |||||||||||||||||||
Restructuring | — | 2 | — | 291 | |||||||||||||||||||
Impact of noncontrolling interests | — | 222 | — | 427 | |||||||||||||||||||
Acquisition and integration costs | 9,183 | — | 10,980 | — | |||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (771) | (903) | (1,182) | (1,216) | |||||||||||||||||||
Non-cash income tax (benefit) expense (1) | (11,317) | 582 | (8,166) | 1,980 | |||||||||||||||||||
Non-GAAP net income | $ | 41,382 | $ | 47,726 | $ | 118,576 | $ | 105,958 | |||||||||||||||
Per diluted share: | |||||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 0.62 | $ | 0.71 | $ | 1.88 | $ | 1.64 | |||||||||||||||
Stock-based compensation | 0.08 | 0.08 | 0.13 | 0.14 | |||||||||||||||||||
Amortization of acquired intangible assets | 0.20 | 0.19 | 0.34 | 0.34 | |||||||||||||||||||
Restructuring | — | — | — | 0.01 | |||||||||||||||||||
Impact of noncontrolling interests | — | 0.00 | 0.00 | 0.01 | |||||||||||||||||||
Acquisition and integration costs | 0.18 | 0.00 | 0.22 | 0.00 | |||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (0.02) | (0.02) | (0.02) | (0.02) | |||||||||||||||||||
Non-cash income tax (benefit) expense | (0.23) | 0.01 | (0.16) | 0.04 | |||||||||||||||||||
Non-GAAP net income per share | $ | 0.83 | $ | 0.97 | $ | 2.39 | $ | 2.16 | |||||||||||||||
Weighted average shares outstanding used in computing per diluted share amounts | 49,822 | 49,434 | 49,681 | 49,049 |
Ranges for the three months ending | Ranges for the year ending | ||||||||||||||||||||||
September 30, 2019 | December 31, 2019 | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. | $ | (35,500) | $ | (30,500) | $ | 27,000 | $ | 37,500 | |||||||||||||||
Stock-based compensation | 4,900 | 4,900 | 16,700 | 16,300 | |||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 12,600 | 12,500 | 45,500 | 45,000 | |||||||||||||||||||
Other loss, net (3) | 6,100 | 5,900 | 20,900 | 20,700 | |||||||||||||||||||
Acquisition and integration costs | 6,500 | 6,100 | 22,400 | 22,000 | |||||||||||||||||||
Income tax (benefit) expense | 1,400 | 1,100 | (2,000) | (2,000) | |||||||||||||||||||
Adjusted EBITDA | $ | (4,000) | $ | — | $ | 130,500 | $ | 139,500 |
Ranges for the three months ending | Ranges for the year ending | ||||||||||||||||||||||
June 30, 2019 | December 31, 2019 | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
Net income attributable to Blucora, Inc. | $ | 20,100 | $ | 24,000 | $ | 33,200 | $ | 47,700 | |||||||||||||||
Stock-based compensation | 5,400 | 5,100 | 18,700 | 17,900 | |||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 11,600 | 11,200 | 45,900 | 44,300 | |||||||||||||||||||
Other loss, net (3) | 5,700 | 5,400 | 24,000 | 23,300 | |||||||||||||||||||
Income tax expense | 2,200 | 2,800 | 6,200 | 6,800 | |||||||||||||||||||
Adjusted EBITDA | $ | 45,000 | $ | 48,500 | $ | 128,000 | $ | 140,000 |
Ranges for the three months ending | Ranges for the year ending | ||||||||||||||||||||||
September 30, 2019 | December 31, 2019 | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. | $ | (35,500) | $ | (30,500) | $ | 27,000 | $ | 37,500 | |||||||||||||||
Stock-based compensation | 4,900 | 4,900 | 16,700 | 16,300 | |||||||||||||||||||
Amortization of acquired intangible assets | 9,900 | 9,900 | 37,000 | 37,000 | |||||||||||||||||||
Acquisition and integration costs | 6,500 | 6,100 | 22,400 | 22,000 | |||||||||||||||||||
Cash tax impact of adjustments to net income (loss) | (500) | (500) | (2,000) | (2,000) | |||||||||||||||||||
Non-cash income tax benefit | 200 | 100 | (8,600) | (8,300) | |||||||||||||||||||
Non-GAAP net income (loss) | $ | (14,500) | $ | (10,000) | $ | 92,500 | $ | 102,500 | |||||||||||||||
Per diluted share: | |||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. | $ | (0.72) | $ | (0.62) | $ | 0.54 | $ | 0.75 | |||||||||||||||
Stock-based compensation | 0.10 | 0.10 | 0.33 | 0.32 | |||||||||||||||||||
Amortization of acquired intangible assets | 0.20 | 0.20 | 0.73 | 0.74 | |||||||||||||||||||
Acquisition and integration costs | 0.13 | 0.12 | 0.44 | 0.44 | |||||||||||||||||||
Cash tax impact of adjustments to net income (loss) | (0.01) | (0.01) | (0.04) | (0.04) | |||||||||||||||||||
Non-cash income tax benefit | 0.01 | 0.01 | (0.16) | (0.17) | |||||||||||||||||||
Non-GAAP net income per share | $ | (0.29) | $ | (0.20) | $ | 1.84 | $ | 2.04 | |||||||||||||||
Weighted average shares outstanding used in computing per diluted share amounts | 49,300 | 49,200 | 50,400 | 50,200 |
Financial Information | |||||
Operating Metrics | |||||
(in thousands except %s and per share amounts, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||||||||||||||||||
Segment revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | $ | 127,831 | |||||||||||||||||||||||||||||||
Tax Preparation (1) | 160,937 | 113,883 | 65,833 | 3,498 | 4,068 | 187,282 | 136,236 | 65,909 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 509,557 | $ | 205,965 | $ | 157,848 | $ | 95,385 | $ | 101,258 | $ | 560,456 | $ | 225,768 | $ | 193,740 | |||||||||||||||||||||||||||||||
Segment income (loss): (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 50,916 | $ | 13,075 | $ | 12,954 | $ | 12,891 | $ | 14,133 | $ | 53,053 | $ | 11,540 | $ | 16,979 | |||||||||||||||||||||||||||||||
Tax Preparation (1) | 72,921 | 58,806 | 44,121 | (6,936) | (8,742) | 87,249 | 79,272 | 41,368 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 123,837 | $ | 71,881 | $ | 57,075 | $ | 5,955 | $ | 5,391 | $ | 140,302 | $ | 90,812 | $ | 58,347 | |||||||||||||||||||||||||||||||
Segment income (loss) % of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Wealth Management | 15 | % | 14 | % | 14 | % | 14 | % | 15 | % | 14 | % | 13 | % | 13 | % | |||||||||||||||||||||||||||||||
Tax Preparation (1) | 45 | % | 52 | % | 67 | % | (198) | % | (215) | % | 47 | % | 58 | % | 63 | % | |||||||||||||||||||||||||||||||
Total | 24 | % | 35 | % | 36 | % | 6 | % | 5 | % | 25 | % | 40 | % | 30 | % | |||||||||||||||||||||||||||||||
Unallocated corporate operating expenses (3) | $ | 22,907 | $ | 5,541 | $ | 4,238 | $ | 4,572 | $ | 6,143 | $ | 20,494 | $ | 7,105 | $ | 6,221 | |||||||||||||||||||||||||||||||
Adjusted EBITDA* | $ | 100,930 | $ | 66,340 | $ | 52,837 | $ | 1,383 | $ | (752) | $ | 119,808 | $ | 83,707 | $ | 52,126 | |||||||||||||||||||||||||||||||
Other unallocated operating expenses: (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | $ | 11,653 | $ | 2,955 | $ | 3,730 | $ | 2,874 | $ | 3,694 | $ | 13,253 | $ | 2,443 | $ | 4,082 | |||||||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | 9,183 | |||||||||||||||||||||||||||||||||||||||
Depreciation | 4,137 | 2,002 | 1,124 | 930 | 947 | 5,003 | 1,310 | 1,662 | |||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 34,002 | 8,357 | 8,855 | 8,271 | 8,103 | 33,586 | 8,044 | 9,169 | |||||||||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3) | 288 | — | — | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 48,037 | $ | 52,737 | $ | 39,126 | $ | (10,692) | $ | (13,493) | $ | 67,678 | $ | 70,113 | $ | 28,030 | |||||||||||||||||||||||||||||||
Unallocated other income/loss: (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | (110) | $ | (40) | $ | (58) | $ | (119) | $ | (132) | $ | (349) | $ | (140) | $ | (149) | |||||||||||||||||||||||||||||||
Interest expense | 21,211 | 4,181 | 3,847 | 3,744 | 3,838 | 15,610 | 3,776 | 4,770 | |||||||||||||||||||||||||||||||||||||||
Amortization of debt issuance costs | 1,089 | 203 | 284 | 172 | 174 | 833 | 172 | 375 | |||||||||||||||||||||||||||||||||||||||
Accretion of debt discounts | 1,947 | 47 | 40 | 38 | 38 | 163 | 38 | 85 | |||||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment and modification expense | 20,445 | 776 | 758 | — | — | 1,534 | — | — | |||||||||||||||||||||||||||||||||||||||
Other (income) loss, net | (31) | 61 | (2,112) | 28 | 29 | (1,994) | 112 | 37 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 44,551 | $ | 5,228 | $ | 2,759 | $ | 3,863 | $ | 3,947 | $ | 15,797 | $ | 3,958 | $ | 5,118 | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 3,486 | $ | 47,509 | $ | 36,367 | $ | (14,555) | $ | (17,440) | $ | 51,881 | $ | 66,155 | $ | 22,912 | |||||||||||||||||||||||||||||||
Income tax (benefit) expense: (4) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 963 | $ | 565 | $ | 325 | $ | 515 | $ | 1,309 | $ | 2,714 | $ | 834 | $ | 3,193 | |||||||||||||||||||||||||||||||
Non-cash (5) | (26,853) | 1,398 | 582 | (1,333) | (3,050) | (2,403) | 3,151 | (11,317) | |||||||||||||||||||||||||||||||||||||||
Total | $ | (25,890) | $ | 1,963 | $ | 907 | $ | (818) | $ | (1,741) | $ | 311 | $ | 3,985 | (8,124) | ||||||||||||||||||||||||||||||||
GAAP income (loss) | $ | 29,376 | $ | 45,546 | $ | 35,460 | $ | (13,737) | $ | (15,699) | $ | 51,570 | $ | 62,170 | $ | 31,036 | |||||||||||||||||||||||||||||||
GAAP income (loss) per share - diluted | $ | 0.57 | $ | 0.93 | $ | 0.71 | $ | (0.37) | $ | (0.38) | $ | 0.90 | $ | 1.25 | $ | 0.62 | |||||||||||||||||||||||||||||||
GAAP impact of noncontrolling interests (6) | (2,337) | (205) | (222) | (227) | (281) | (935) | — | — | |||||||||||||||||||||||||||||||||||||||
GAAP net income (loss) attributable to Blucora, Inc. | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964) | $ | (15,980) | $ | 50,635 | $ | 62,170 | $ | 31,036 | |||||||||||||||||||||||||||||||
Non-GAAP net income (loss)* | $ | 69,148 | $ | 58,232 | $ | 47,726 | $ | (4,430) | $ | (7,492) | $ | 94,036 | $ | 77,194 | $ | 41,382 |
(in thousands except %s and per share amounts, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income (loss) per share - diluted* | $ | 1.46 | (7) | $ | 1.20 | $ | 0.97 | $ | (0.09) | $ | (0.16) | $ | 1.90 | (8) | $ | 1.56 | $ | 0.83 | |||||||||||||||||||||||||||||
Outstanding Shares | 46,366 | 46,828 | 47,494 | 47,816 | 48,044 | 48,044 | 48,255 | 48,779 | |||||||||||||||||||||||||||||||||||||||
Basic shares - GAAP | 44,370 | 46,641 | 47,221 | 47,712 | 48,002 | 47,394 | 48,161 | 48,555 | |||||||||||||||||||||||||||||||||||||||
Diluted shares - GAAP | 47,211 | 48,665 | 49,434 | 47,712 | 48,002 | 49,381 | 49,542 | 49,822 |
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands except per share amounts, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964) | $ | (15,981) | $ | 50,634 | $ | 62,170 | $ | 31,036 | |||||||||||||||||||||||||||||||
Stock-based compensation | 11,653 | 2,955 | 3,730 | 2,874 | 3,694 | 13,253 | 2,443 | 4,082 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization of acquired intangible assets | 38,139 | 10,359 | 9,979 | 9,201 | 9,050 | 38,590 | 9,354 | 10,831 | |||||||||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3) | 288 | — | — | |||||||||||||||||||||||||||||||||||||||
Other loss, net | 44,551 | 5,228 | 2,759 | 3,863 | 3,947 | 15,797 | 3,958 | 5,118 | |||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 2,337 | 205 | 222 | 227 | 281 | 935 | — | — | |||||||||||||||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | 9,183 | |||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (25,890) | 1,963 | 907 | (818) | (1,741) | 311 | 3,985 | (8,124) | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 100,930 | $ | 66,340 | $ | 52,837 | $ | 1,383 | $ | (753) | $ | 119,808 | $ | 83,707 | $ | 52,126 | |||||||||||||||||||||||||||||||
Non-GAAP Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Blucora, Inc. (1) (2) | $ | 27,039 | $ | 45,341 | $ | 35,238 | $ | (13,964) | $ | (15,981) | $ | 50,634 | $ | 62,170 | $ | 31,036 | |||||||||||||||||||||||||||||||
Stock-based compensation | 11,653 | 2,955 | 3,730 | 2,874 | 3,694 | 13,253 | 2,443 | 4,082 | |||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 34,002 | 8,357 | 8,855 | 8,271 | 8,103 | 33,586 | 8,044 | 9,169 | |||||||||||||||||||||||||||||||||||||||
Accretion and write-off of debt discount and debt issuance costs on previous debt | 17,875 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | — | 1,797 | 9,183 | |||||||||||||||||||||||||||||||||||||||
Restructuring | 3,101 | 289 | 2 | — | (3) | 288 | — | — | |||||||||||||||||||||||||||||||||||||||
Impact of noncontrolling interests | 2,337 | 205 | 222 | 227 | 281 | 935 | — | — | |||||||||||||||||||||||||||||||||||||||
Cash tax impact of adjustments to GAAP net income | (6) | (313) | (903) | (505) | (536) | (2,257) | (411) | (771) | |||||||||||||||||||||||||||||||||||||||
Non-cash income tax (benefit) expense | (26,853) | 1,398 | 582 | (1,333) | (3,050) | (2,403) | 3,151 | (11,317) | |||||||||||||||||||||||||||||||||||||||
Non-GAAP net income (loss) | $ | 69,148 | $ | 58,232 | $ | 47,726 | $ | (4,430) | $ | (7,492) | $ | 94,036 | $ | 77,194 | $ | 41,382 | |||||||||||||||||||||||||||||||
Non-GAAP net income (loss) per share | $ | 1.06 | $ | 1.20 | $ | 0.97 | $ | (0.09) | $ | (0.16) | $ | 1.90 | $ | 1.56 | $ | 0.83 | |||||||||||||||||||||||||||||||
Diluted shares | 47,211 | 48,665 | 49,434 | 47,712 | 48,002 | 49,381 | 49,542 | 49,822 |
2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands except ratio, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||||||||||||||||||||
CASH: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 59,965 | $ | 77,107 | $ | 89,840 | $ | 88,274 | $ | 84,524 | $ | 84,524 | $ | 149,762 | $ | 109,606 | ||||||||||||||||||||||||||||||||||
DEBT: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior secured credit facility | $ | 345,000 | $ | 305,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | $ | 265,000 | $ | 390,000 | ||||||||||||||||||||||||||||||||||
NET DEBT (1) (2) | $ | (285,035) | $ | (227,893) | $ | (175,160) | $ | (176,726) | $ | (180,476) | $ | (180,476) | $ | (115,238) | $ | (280,394) | ||||||||||||||||||||||||||||||||||
Last twelve months: | ||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INCOME: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Wealth Management | $ | 50,916 | $ | 52,138 | $ | 52,686 | $ | 53,152 | $ | 53,053 | $ | 53,053 | $ | 51,518 | $ | 55,543 | ||||||||||||||||||||||||||||||||||
Tax Preparation | 72,921 | 78,594 | 86,200 | 85,502 | 87,249 | 87,249 | 107,715 | 104,962 | ||||||||||||||||||||||||||||||||||||||||||
$ | 123,837 | $ | 130,732 | $ | 138,886 | $ | 138,654 | $ | 140,302 | $ | 140,302 | $ | 159,233 | $ | 160,505 | |||||||||||||||||||||||||||||||||||
Unallocated corporate operating expenses | (22,907) | (21,675) | (19,450) | (19,435) | (20,494) | (20,494) | (22,058) | (24,041) | ||||||||||||||||||||||||||||||||||||||||||
ADJUSTED EBITDA (1) | $ | 100,930 | $ | 109,057 | $ | 119,436 | $ | 119,219 | $ | 119,808 | $ | 119,808 | $ | 137,175 | $ | 136,464 | ||||||||||||||||||||||||||||||||||
LEVERAGE RATIO (1) (3) | 2.8 | x | 2.1 | x | 1.5 | x | 1.5 | x | 1.5 | x | 1.5 | x | 0.8 | x | 2.1 | x | ||||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | |||||||||||||||||||||||||||||||||||||||
Net cash provided (used) by operating activities from continuing operations | $ | 72,846 | $ | 57,450 | $ | 49,107 | $ | (974) | $ | (35) | $ | 105,548 | $ | 70,236 | $ | 26,576 | |||||||||||||||||||||||||||||||
Purchases of property and equipment | (5,039) | (940) | (1,662) | (2,738) | (2,293) | (7,633) | (1,243) | (1,695) | |||||||||||||||||||||||||||||||||||||||
Operating free cash flow from continuing operations | $ | 67,807 | $ | 56,510 | $ | 47,445 | $ | (3,712) | $ | (2,328) | $ | 97,915 | $ | 68,993 | $ | 24,881 |
2017 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands except %s, rounding differences may exist) | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | |||||||||||||||||||||||||||||||||||||||
Segment revenue | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | $ | 127,831 | |||||||||||||||||||||||||||||||
Segment net revenue (1) | $ | 113,417 | $ | 29,256 | $ | 29,822 | $ | 29,994 | $ | 31,745 | $ | 120,817 | $ | 28,672 | $ | 41,248 | |||||||||||||||||||||||||||||||
Segment income (2) | $ | 50,916 | $ | 13,075 | $ | 12,954 | $ | 12,891 | $ | 14,133 | $ | 53,053 | $ | 11,540 | $ | 16,979 | |||||||||||||||||||||||||||||||
Segment income % of revenue | 15 | % | 14 | % | 14 | % | 14 | % | 15 | % | 14 | % | 13 | % | 13 | % | |||||||||||||||||||||||||||||||
Segment income % of net revenue | 45 | % | 45 | % | 43 | % | 43 | % | 45 | % | 44 | % | 40 | % | 41 | % |
(in thousands except %s, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sources of Revenue | Primary Drivers | FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||||||||||||||||||||||
Adviser-driven | Commission | - Transactions - Asset levels | $ | 160,241 | $ | 42,870 | $ | 40,384 | $ | 41,015 | $ | 39,932 | $ | 164,201 | $ | 37,160 | $ | 48,068 | |||||||||||||||||||||||||||||||||||
Advisory | - Advisory asset levels | 145,694 | 39,301 | 40,058 | 41,443 | 43,551 | 164,353 | 39,757 | 61,410 | ||||||||||||||||||||||||||||||||||||||||||||
Other revenue | Asset-based | - Cash balances - Interest rates - Number of accounts - Client asset levels | 26,297 | 7,172 | 7,306 | 6,979 | 9,999 | 31,456 | 9,693 | 13,219 | |||||||||||||||||||||||||||||||||||||||||||
Transaction and fee | - Account activity - Number of clients - Number of advisors - Number of accounts | 16,388 | 2,739 | 4,267 | 2,450 | 3,708 | 13,164 | 2,922 | 5,134 | ||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 348,620 | $ | 92,082 | $ | 92,015 | $ | 91,887 | $ | 97,190 | $ | 373,174 | $ | 89,532 | $ | 127,831 | |||||||||||||||||||||||||||||||||||||
Total recurring revenue (3) | $ | 277,546 | $ | 72,962 | $ | 75,369 | $ | 74,228 | $ | 80,558 | $ | 303,117 | $ | 73,241 | $ | 106,557 | |||||||||||||||||||||||||||||||||||||
Recurring revenue rate (3) | 79.6 | % | 79.2 | % | 81.9 | % | 80.8 | % | 82.9 | % | 81.2 | % | 81.8 | % | 83.4 | % |
(in thousands except %s and as otherwise indicated, rounding differences may exist) | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
FY 12/31 | 1Q | 2Q | 3Q | 4Q | FY 12/31 | 1Q | 2Q | ||||||||||||||||||||||||||||||||||||||||
Total Client Assets | $ | 44,178,710 | $ | 44,383,024 | $ | 45,016,993 | $ | 46,413,409 | $ | 42,249,055 | $ | 42,249,055 | $ | 46,164,603 | $ | 67,602,006 | |||||||||||||||||||||||||||||||
Brokerage Assets | $ | 31,648,545 | $ | 31,665,899 | $ | 32,069,800 | $ | 32,897,081 | $ | 29,693,650 | $ | 29,693,650 | $ | 32,176,414 | $ | 41,335,972 | |||||||||||||||||||||||||||||||
Advisory Assets | $ | 12,530,165 | $ | 12,717,125 | $ | 12,947,193 | $ | 13,516,328 | $ | 12,555,405 | $ | 12,555,405 | $ | 13,988,189 | $ | 26,266,034 | |||||||||||||||||||||||||||||||
% of total Total Client Assets | 28.4 | % | 28.7 | % | 28.8 | % | 29.1 | % | 29.7 | % | 29.7 | % | 30.3 | % | 38.9 | % | |||||||||||||||||||||||||||||||
Number of advisors (in ones) | 3,999 | 3,920 | 3,709 | 3,687 | 3,593 | 3,593 | 3,553 | 4,225 | |||||||||||||||||||||||||||||||||||||||
Adviser-driven revenue per adviser (4) | $ | 76.5 | $ | 21.0 | $ | 21.7 | $ | 22.4 | $ | 23.2 | $ | 91.4 | $ | 21.6 | $ | 25.9 |
(in thousands except %s, rounding differences may exist) | Six months ended June 30, | U.S. tax seasons ended | |||||||||||||||||||||||||||||||||
Consumers | 2019 | 2018 | % change | April 16, 2019 | April 19, 2018 | % change | |||||||||||||||||||||||||||||
E-files | 3,179 | 3,831 | (17) | % | 3,115 | 3,772 | (17) | % |
(in thousands except %s and as otherwise indicated, rounding differences may exist) | Six months ended June 30, | U.S. tax seasons ended | |||||||||||||||||||||||||||||||||
Preparers | 2019 | 2018 | % change | April 16, 2019 | April 19, 2018 | % change | |||||||||||||||||||||||||||||
E-files | 1,916 | 1,833 | 5 | % | 1,833 | 1,763 | 4 | % | |||||||||||||||||||||||||||
Units sold (in ones) | 20,583 | 20,637 | — | % | 20,502 | 20,588 | — | % | |||||||||||||||||||||||||||
E-files per unit sold (in ones) | 93.1 | 88.8 | 5 | % | 89.4 | 85.6 | 4 | % |