8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

August 1, 2018

Date of Report

(Date of earliest event reported)

BLUCORA, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	000-25131	91-1718107
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

6333 State Hwy 161, 4th Floor

Irving, Texas 75038

(Address of principal executive offices)

(972) 870-6000

Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. ☐

Item 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On August 1, 2018, Blucora, Inc. (the “Company”) announced its financial results for the quarter ended June 30, 2018. Copies of the press release and supplemental financial information are furnished to, but not filed with, the Securities and Exchange Commission as Exhibits 99.1 and 99.2 hereto.

The press release includes non-GAAP financial measures as that term is defined in Regulation G. The press release also includes the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), information reconciling the non-GAAP financial measures to the GAAP financial measures, and a discussion of the reasons why the Company’s management believes that presentation of the non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations. The non-GAAP financial information presented therein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.

Item 9.01    FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No	Description
99.1	Press release dated August 1, 2018
99.2	Supplemental financial information dated August 1, 2018

Safe Harbor Statement Under the Private Securities and Litigation Reform Act

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this report, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. Actual results may differ significantly from management’s expectations due to various risks and uncertainties including, but not limited to: our ability to effectively implement our future business plans and growth strategy; our ability to effectively compete within our industry; our ability to attract and retain customers; the availability of financing and our ability to meet our current and future debt service obligations and comply 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; political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation industries; our ability to attract and retain productive financial advisors; our ability to successfully make technology enhancements and introduce new and improve on 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 laws and regulations, including, among others, those related to privacy protection and consumer data; our ability to successfully transition our wealth management business to a new clearing platform and our expectations concerning the benefits that may be derived therefrom; cybersecurity risks; our ability to maintain our relationships with third party partners; the seasonality of our business; litigation risks; 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; our ability to develop, establish and maintain strong brands; our ability to protect our intellectual property; and our ability to effectively integrate companies or assets that we acquire. A more detailed description of these and certain other factors that could affect actual results is included in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this report, except as may be required by law.

-2-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BLUCORA, INC.
By	/s/ Davinder Athwal
	Davinder Athwal
	Chief Financial Officer
	August 1, 2018

-3-

EX-99.1

Exhibit 99.1

Blucora Announces Second Quarter2018 Results

Continued Double-Digit Revenue Growth, Strong Cash Generation

IRVING, TX — August 1, 2018 — Blucora, Inc. (NASDAQ: BCOR), a leading provider of technology-enabled financial solutions to consumers, small businesses and tax professionals, today announced financial results for the second quarter ended June 30, 2018.

Second Quarter Highlights and Recent Developments

• Increased revenue and operating income by 13% and 29%, respectively, year-over-year (y/y)

• Grew TaxAct revenue by 17% y/y for the first half of 2018, with 57.3% segment margin

• Posted record level of advisory assets (formerly referred to as assets under management) at HD Vest of $12.9 billion, or 28.8% of total client assets (formerly referred to as assets under administration)

• Achieved 1.5x net leverage ratio on continued strong cash generation and debt reduction

“Strong tax preparation results helped drive continued double-digit growth in revenue and earnings with healthy cash flow," said John Clendening, Blucora's President and Chief Executive Officer. "We once again utilized that cash flow to reduce debt, further strengthen our balance sheet and accelerate earnings growth. Our wealth management business also continued its upward momentum demonstrating strong revenue growth and record asset levels.”

Summary Financial Performance: Q22018

($ in millions except per share amounts)

	Q2			Q2
	2018			2017			Change
Revenue:
Wealth Management	$	92.0		$	85.3		8	%
Tax Preparation	$	65.8		$	53.9		22	%
Total Revenue	$	157.8		$	139.2		13	%
Segment Income:
Wealth Management	$	13.0		$	12.4		4	%
Tax Preparation	$	44.1		$	36.5		21	%
Total Segment Income	$	57.1		$	48.9		17	%
Unallocated Corporate Operating Expenses	$	(4.2	)	$	(6.5	)	(34	)%
GAAP:
Operating Income	$	38.8		$	30.0		29	%
Net Income Attributable to Blucora, Inc.	$	34.9		$	3.3		957	%
Diluted Net Income Per Share Attributable to Blucora, Inc. (EPS)	$	0.71		$	0.07		914	%
Non-GAAP:
Adjusted EBITDA	$	52.8		$	42.5		24	%
Net Income	$	47.7		$	32.9		45	%
Diluted Net Income Per Share (EPS)	$	0.97		$	0.70		39	%
See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.

Third Quarter and Full Year 2018 Outlook

For the third quarter of 2018, the Company expects revenues to be between $92.0 million and $95.5 million, GAAP net loss attributable to Blucora, Inc. to be between $18.5 million and $22.5 million, or $0.39 to $0.47 per diluted share, Adjusted EBITDA loss to be between $2.0 million and $5.0 million, and Non-GAAP net loss to be between $8.0 million and $11.0 million, or $0.17 to $0.23 per diluted share.

For the full year 2018, the Company expects revenues to be between $553.5 million and $563.0 million, GAAP net income attributable to Blucora, Inc. to be between $42.5 million and $46.0 million, or $0.86 to $0.93 per diluted share, Adjusted EBITDA to be between $114.5 million and $119.5 million, and Non-GAAP net income to be between $89.0 million and $94.5 million, or $1.80 to $1.92 per diluted share.

The third quarter and fiscal 2018 outlook for GAAP net income or loss attributable to Blucora assumes an estimated tax rate of approximately 2% to 6%.

Conference Call and Webcast

A conference call and live webcast will be held today at 8:30 a.m. Eastern Time during which the Company will further discuss second quarter results, its outlook for the third quarter and full year 2018 and other business matters. We will also provide the prepared remarks for the conference call along with supplemental financial information to our results on the Investor Relations section of the Blucora corporate website at http://www.blucora.com prior to the call. The supplemental financial information has also been filed with the SEC on Form 8-K. A replay of the call be available on our website.

About Blucora®

Blucora, Inc. (NASDAQ: BCOR) is a leading provider of technology-enabled financial solutions to consumers, small businesses and tax professionals. Our products and services in tax preparation and wealth management, through TaxAct and HD Vest, respectively, help consumers manage their financial lives. TaxAct is an affordable digital tax preparation solution for individuals, business owners and tax professionals. HD Vest Financial Services ^®supports an independent network of tax professionals who provide comprehensive financial planning solutions. For more information on Blucora or its businesses, please visit www.blucora.com.

Source: Blucora

Blucora Contact:

Bill Michalek (972) 870-6463

VP, Investor Relations

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. Actual results may differ significantly from management’s expectations due to various risks and uncertainties including, but not limited to: our ability to effectively implement our future business plans and growth strategy; our ability to effectively compete within our industry; our ability to attract and retain customers; the availability of financing and our ability to meet our current and future debt service obligations and comply 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; political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation industries; our ability to attract and retain productive financial advisors; our ability to successfully make technology enhancements and introduce new and improve on 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 laws and regulations, including, among others, those related to privacy protection and consumer data; our ability to successfully transition our wealth management business to a new clearing platform and our expectations concerning the benefits that may be derived therefrom; cybersecurity risks; our ability to maintain our relationships with third party partners; the seasonality of our business; litigation risks; 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; our ability to develop, establish and maintain strong brands; our ability to protect our intellectual property; and our ability to effectively integrate companies or assets that we acquire. A more detailed description of these and certain other factors that could affect actual results is included in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release, except as may be required by applicable law.

Blucora, Inc.

Preliminary Condensed Consolidated Statements of Operations

(Unaudited)

(Amounts in thousands, except per share data)

	Three Months Ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Revenue:
Wealth management services revenue	$	92,015		$	85,296		$	184,097		$	167,963
Tax preparation services revenue	65,833			53,866			179,716			153,574
Total revenue	157,848			139,162			363,813			321,537
Operating expenses:
Cost of revenue:
Wealth management services cost of revenue	62,452			56,963			125,519			112,837
Tax preparation services cost of revenue	2,459			2,411			6,812			6,229
Amortization of acquired technology	49			47			99			95
Total cost of revenue (1)	64,960			59,421			132,430			119,161
Engineering and technology (1)	4,848			4,242			9,979			8,990
Sales and marketing (1)	23,791			22,296			79,044			71,294
General and administrative (1)	15,625			13,715			30,491			27,198
Depreciation	993			873			2,908			1,813
Amortization of other acquired intangible assets	8,806			8,289			17,113			16,577
Restructuring (1)	2			331			291			2,620
Total operating expenses	119,025			109,167			272,256			247,653
Operating income	38,823			29,995			91,557			73,884
Other loss, net (2)	(2,759		)	(24,200		)	(7,987		)	(33,908		)
Income before income taxes	36,064			5,795			83,570			39,976
Income tax expense	(907		)	(2,315		)	(2,870		)	(5,786		)
Net income	35,157			3,480			80,700			34,190
Net income attributable to noncontrolling interests	(222		)	(176		)	(427		)	(302		)
Net income attributable to Blucora, Inc.	$	34,935		$	3,304		$	80,273		$	33,888
Net income per share attributable to Blucora, Inc.:
Basic	$	0.74		$	0.08		$	1.71		$	0.79
Diluted	$	0.71		$	0.07		$	1.64		$	0.73
Weighted average shares outstanding:
Basic	47,221			43,644			46,931			42,895
Diluted	49,434			46,937			49,049			46,182

⁽¹⁾ Stock-based compensation expense was allocated among the following captions (in thousands):

	Three Months Ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Cost of revenue	$	574	$	88	$	833	$	134
Engineering and technology	202		224		412		509
Sales and marketing	702		581		1,218		1,272
General and administrative	2,555		1,844		4,528		3,387
Restructuring	—		538		—		981
Total stock-based compensation expense	$	4,033	$	3,275	$	6,991	$	6,283

⁽²⁾Other loss, net consisted of the following (in thousands):

	Three Months Ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Interest income	$	(58	)	$	(25	)	$	(98	)	$	(45	)
Interest expense	3,847			5,529			8,028			11,965
Amortization of debt issuance costs	284			327			487			714
Accretion of debt discounts	40			755			87			1,840
Loss on debt extinguishment	758			17,801			1,534			19,581
Other	(2,112		)	(187		)	(2,051		)	(147		)
Other loss, net	$	2,759		$	24,200		$	7,987		$	33,908

Blucora, Inc.

Preliminary Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands)

	June 30, 2018			December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	89,840		$	59,965
Cash segregated under federal or other regulations	1,117			1,371
Accounts receivable, net of allowance	6,595			10,694
Commissions receivable	16,820			16,822
Other receivables	38			3,180
Prepaid expenses and other current assets, net	6,754			7,365
Total current assets	121,164			99,397
Long-term assets:
Property and equipment, net	9,308			9,831
Goodwill, net	548,838			549,037
Other intangible assets, net	310,983			328,205
Other long-term assets	15,806			15,201
Total long-term assets	884,935			902,274
Total assets	$	1,006,099		$	1,001,671
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,472		$	4,413
Commissions and advisory fees payable	17,158			17,813
Accrued expenses and other current liabilities	16,181			19,577
Deferred revenue	2,661			9,953
Total current liabilities	40,472			51,756
Long-term liabilities:
Long-term debt, net	260,029			338,081
Deferred tax liability, net	42,652			43,433
Deferred revenue	501			804
Other long-term liabilities	6,871			8,177
Total long-term liabilities	310,053			390,495
Total liabilities	350,525			442,251
Redeemable noncontrolling interests	18,460			18,033
Stockholders’ equity:
Common stock	5			5
Additional paid-in capital	1,569,412			1,555,560
Accumulated deficit	(932,050		)	(1,014,174		)
Accumulated other comprehensive loss	(253		)	(4		)
Total stockholders’ equity	637,114			541,387
Total liabilities and stockholders’ equity	$	1,006,099		$	1,001,671

Blucora, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)

	Six months ended June 30,
	2018			2017
Operating Activities:
Net income	$	80,700		$	34,190
Adjustments to reconcile net income to net cash from operating activities:
Stock-based compensation	6,991			5,302
Depreciation and amortization of acquired intangible assets	20,338			18,865
Restructuring (non-cash)	—			1,402
Deferred income taxes	(781		)	(681		)
Amortization of premium on investments, net, and debt issuance costs	487			724
Accretion of debt discounts	87			1,840
Loss on debt extinguishment	1,533			19,581
Cash provided (used) by changes in operating assets and liabilities:
Accounts receivable	4,096			2,956
Commissions receivable	2			581
Other receivables	3,142			2,544
Prepaid expenses and other current assets	461			(545		)
Other long-term assets	(764		)	341
Accounts payable	59			(795		)
Commissions and advisory fees payable	(655		)	(444		)
Deferred revenue	(5,746		)	(8,493		)
Accrued expenses and other current and long-term liabilities	(3,393		)	3,768
Net cash provided by operating activities	106,557			81,136
Investing Activities:
Purchases of property and equipment	(2,602		)	(1,911		)
Proceeds from sales of investments	—			249
Proceeds from maturities of investments	—			7,252
Purchases of investments	—			(409		)
Net cash provided (used) by investing activities	(2,602		)	5,181
Financing Activities:
Proceeds from credit facilities	—			367,212
Payments on convertible notes	—			(172,827		)
Payments on credit facilities	(80,000		)	(275,000		)
Proceeds from stock option exercises	10,386			23,996
Proceeds from issuance of stock through employee stock purchase plan	704			662
Tax payments from shares withheld for equity awards	(4,229		)	(5,267		)
Contingent consideration payments for business acquisition	(1,315		)	(946		)
Net cash used by financing activities	(74,454		)	(62,170		)
Net cash provided by continuing operations	29,501			24,147
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	(30		)	43
Net increase in cash, cash equivalents, and restricted cash	29,471			25,218
Cash, cash equivalents, and restricted cash, beginning of period	62,311			54,868
Cash, cash equivalents, and restricted cash, end of period	$	91,782		$	80,086

Blucora, Inc.

Preliminary Segment Information

(Unaudited)

(Amounts in thousands)

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Revenue:
Wealth Management (1)	$	92,015		$	85,296		$	184,097		$	167,963
Tax Preparation (1)	65,833			53,866			179,716			153,574
Total revenue	157,848			139,162			363,813			321,537
Operating income:
Wealth Management	12,954			12,406			26,029			24,259
Tax Preparation	44,121			36,515			102,927			89,648
Corporate-level activity (2)	(18,252		)	(18,926		)	(37,399		)	(40,023		)
Total operating income	38,823			29,995			91,557			73,884
Other loss, net	(2,759		)	(24,200		)	(7,987		)	(33,908		)
Income tax expense	(907		)	(2,315		)	(2,870		)	(5,786		)
Net income	$	35,157		$	3,480		$	80,700		$	34,190

⁽¹⁾ Revenues by major category within each segment are presented below (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Wealth Management:
Commission	$	40,384	$	38,154	$	83,254	$	77,749
Advisory	40,058		35,914		79,359		69,490
Asset-based	7,306		6,784		14,478		12,750
Transaction and fee	4,267		4,444		7,006		7,974
Total Wealth Management revenue	$	92,015	$	85,296	$	184,097	$	167,963
Tax Preparation:
Consumer	$	63,137	$	51,848	$	165,049	$	140,090
Professional	2,696		2,018		14,667		13,484
Total Tax Preparation revenue	$	65,833	$	53,866	$	179,716	$	153,574

⁽²⁾ Corporate-level activity included the following (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Operating expenses	$	(4,238	)	$	(6,463	)	$	(9,779	)	$	(13,236	)
Stock-based compensation	(4,033		)	(2,737		)	(6,991		)	(5,302		)
Depreciation	(1,124		)	(1,059		)	(3,126		)	(2,193		)
Amortization of acquired intangible assets	(8,855		)	(8,336		)	(17,212		)	(16,672		)
Restructuring	(2		)	(331		)	(291		)	(2,620		)
Total corporate-level activity	$	(18,252	)	$	(18,926	)	$	(37,399	)	$	(40,023	)

Blucora, Inc.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

Preliminary Adjusted EBITDA Reconciliation⁽¹⁾ 

(Unaudited)

(Amounts in thousands)

(In thousands)	Three Months Ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Net income attributable to Blucora, Inc.(2)	$	34,935	$	3,304	$	80,273	$	33,888
Stock-based compensation	4,033		2,737		6,991		5,302
Depreciation and amortization of acquired intangible assets	9,979		9,395		20,338		18,865
Restructuring	2		331		291		2,620
Other loss, net (3)	2,759		24,200		7,987		33,908
Net income attributable to noncontrolling interests	222		176		427		302
Income tax expense	907		2,315		2,870		5,786
Adjusted EBITDA	$	52,837	$	42,458	$	119,177	$	100,671

Preliminary Non-GAAP Net Income and Non-GAAP Net Income Per Share Reconciliation⁽¹⁾ 

(Unaudited)

(Amounts in thousands, except per share amounts)

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Net income attributable to Blucora, Inc.(2)	$	34,935		$	3,304		$	80,273		$	33,888
Stock-based compensation	4,033			2,737			6,991			5,302
Amortization of acquired intangible assets	8,855			8,336			17,212			16,672
Accretion of debt discount on the Notes	—			633			—			1,567
Write-off of debt discount and debt issuance costs on terminated Notes	—			6,715			—			6,715
Write-off of debt discount and debt issuance costs on terminated TaxAct - HD Vest 2015 credit facility	—			9,593			—			9,593
Restructuring	2			331			291			2,620
Impact of noncontrolling interests	222			176			427			302
Cash tax impact of adjustments to GAAP net income	(903		)	(1,819		)	(1,216		)	(2,406		)
Non-cash income tax expense (1)	582			2,941			1,980			6,101
Non-GAAP net income	$	47,726		$	32,947		$	105,958		$	80,354
Per diluted share:
Net income attributable to Blucora, Inc.	$	0.71		$	0.07		$	1.64		$	0.73
Stock-based compensation	0.08			0.06			0.14			0.11
Amortization of acquired intangible assets	0.19			0.19			0.34			0.36
Accretion of debt discount on the Notes	—			0.01			—			0.03
Write-off of debt discount and debt issuance costs on terminated Notes	—			0.14			—			0.15
Write-off of debt discount and debt issuance costs on terminated TaxAct - HD Vest 2015 credit facility	—			0.20			—			0.21
Restructuring	—			0.01			0.01			0.06
Impact of noncontrolling interests	0.00			0.00			0.01			0.01
Cash tax impact of adjustments to GAAP net income	(0.02		)	(0.04		)	(0.02		)	(0.05		)
Non-cash income tax expense	0.01			0.06			0.04			0.13
Non-GAAP net income per share	$	0.97		$	0.70		$	2.16		$	1.74
Weighted average shares outstanding used in computing per diluted share amounts	49,434			46,937			49,049			46,182

Preliminary Adjusted EBITDA Reconciliation for Forward-Looking Guidance

(Amounts in thousands)

	Ranges for the three months ending						Ranges for the year ending
	September 30, 2018						December 31, 2018
	Low			High			Low		High
Net income (loss) attributable to Blucora, Inc.	$	(22,500	)	$	(18,500	)	$	42,500	$	46,000
Stock-based compensation	3,800			3,700			14,400		14,300
Depreciation and amortization of acquired intangible assets	9,500			9,400			39,300		39,200
Restructuring	—			—			300		300
Other loss, net (3)	4,000			3,900			16,200		15,700
Impact of noncontrolling interests	200			200			700		700
Income tax (benefit) expense	—			(700		)	1,100		3,300
Adjusted EBITDA	$	(5,000	)	$	(2,000	)	$	114,500	$	119,500

Preliminary Non-GAAP Net Income (Loss) Reconciliation for Forward-Looking Guidance

(Amounts in thousands)

	Ranges for the three months ending						Ranges for the year ending
	September 30, 2018						March 31, 2018
	Low			High			Low			High
Net income (loss) attributable to Blucora, Inc.	$	(22,500	)	$	(18,500	)	$	42,500		$	46,000
Stock-based compensation	3,800			3,700			14,400			14,300
Amortization of acquired intangible assets	8,300			8,300			33,700			33,700
Restructuring	—			—			300			300
Impact of noncontrolling interests	200			200			700			700
Cash tax impact of adjustments to net income (loss)	(300		)	(300		)	(1,600		)	(1,600		)
Non-cash income tax benefit	(500		)	(1,400		)	(1,000		)	1,100
Non-GAAP net income (loss)	$	(11,000	)	$	(8,000	)	$	89,000		$	94,500

Notes to Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

⁽¹⁾ We define Adjusted EBITDA as net income attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation and amortization of acquired intangible assets (including acquired technology), restructuring, other loss, net, the impact of noncontrolling interests and income tax expense. Restructuring costs relate to the relocation of our corporate headquarters during 2017.

We believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. We use this non-GAAP financial measure for internal management and compensation purposes, when publicly providing guidance on possible future results, and as a means to evaluate period-to-period comparisons. We believe that Adjusted EBITDA is a common measure used by investors and analysts to evaluate our performance, that it provides a more complete understanding of the results of operations and trends affecting our business when viewed together with GAAP results, and that management and investors benefit from referring to this non-GAAP financial measure. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of our business and, therefore, Adjusted EBITDA should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income. Other companies may calculate Adjusted EBITDA differently and, therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

We define non-GAAP net income as net income attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets (including acquired technology), accelerated accretion of debt discount on our Convertible Senior Notes that were outstanding for a portion of 2017 (the "Notes"), write-off of debt discount and debt issuance costs on terminated Notes and terminated TaxAct - HD Vest 2015 credit facility, restructuring costs (described further under Adjusted EBITDA above), the impact of noncontrolling interests, the related cash tax impact of those adjustments, and non-cash income taxes. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024.

We believe that non-GAAP net income and non-GAAP net income per share provide meaningful supplemental information to management, investors, and analysts regarding our performance and the valuation of our business by excluding items in the statement of operations that we do not consider part of our ongoing operations or have not been, or are not expected to be, settled in cash. Additionally, we believe that non-GAAP net income and non-GAAP net income per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP net income and non-GAAP net income per share should be evaluated in light of our financial results prepared in accordance with GAAP and should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income and net income per share. Other companies may calculate non-GAAP net income and non-GAAP net income per share differently, and, therefore, our non-GAAP net income and non-GAAP net income per share may not be comparable to similarly titled measures of other companies.

⁽²⁾ As presented in the Preliminary Condensed Consolidated Statements of Operations (unaudited).

⁽³⁾ Other loss, net primarily includes items such as interest income, interest expense, amortization of debt issuance costs, accretion of debt discounts, and gain/loss on debt extinguishment.

EX-99.2

Exhibit 99.2

Blucora, Inc.

Supplemental Information

June 30, 2018

Table of Contents

Financial Information
Consolidated Financial Results	2
Reconciliation of Non-GAAP Financial Measures	4
Net Leverage Ratio	6
Reconciliation of Operating Free Cash Flow from Continuing Operations	7
Operating Metrics
Wealth Management	8
Tax Preparation	9

1

Blucora Consolidated Financial Results ⁽¹⁾ 

(in thousands except %s and per share amounts, rounding differences may exist)	2016				2017																	2018
	FY 12/31				1Q			2Q			3Q			4Q			FY 12/31					1Q			2Q
Segment revenue:
Wealth Management (1)	$	316,546			$	82,667		$	85,296		$	86,809		$	93,848		$	348,620				$	92,082		$	92,015
Tax Preparation (2)	139,365				99,708			53,866			3,362			4,001			160,937					113,883			65,833
Total	$	455,911			$	182,375		$	139,162		$	90,171		$	97,849		$	509,557				$	205,965		$	157,848
Segment income (loss): (3)
Wealth Management (1)	$	46,296			$	11,853		$	12,406		$	12,425		$	14,232		$	50,916				$	13,075		$	12,954
Tax Preparation (2)	66,897				53,133			36,515			(6,238		)	(10,489		)	72,921					58,806			44,121
Total	$	113,193			$	64,986		$	48,921		$	6,187		$	3,743		$	123,837				$	71,881		$	57,075
Segment income (loss) % of revenue:
Wealth Management (1)	15		%		14		%	15		%	14		%	15		%	15		%			14		%	14		%
Tax Preparation (2)	48		%		53		%	68		%	(186		)%	(262		)%	45		%			52		%	67		%
Total	25		%		36		%	35		%	7		%	4		%	24		%			35		%	36		%
Unallocated corporate operating expenses (3)	$	18,999			$	6,773		$	6,463		$	4,587		$	5,084		$	22,907				$	5,541		$	4,238
Adjusted EBITDA	$	94,194			$	58,213		$	42,458		$	1,600		$	(1,341	)	$	100,930				$	66,340		$	52,837
Other unallocated operating expenses: (3)
Stock-based compensation (4)	$	14,128			$	2,565		$	2,737		$	3,132		$	3,219		$	11,653				$	2,958		$	4,033
Acquisition-related costs	391				—			—			—			—			—					—			—
Depreciation	4,545				1,134			1,059			1,023			921			4,137					2,002			1,124
Amortization of acquired intangible assets (4)	34,143				8,336			8,336			8,665			8,665			34,002					8,357			8,855
Restructuring	3,870				2,289			331			106			375			3,101					289			2
Operating income (loss)	$	37,117			$	43,889		$	29,995		$	(11,326	)	$	(14,521	)	$	48,037				$	52,734		$	38,823
Unallocated other income/loss: (3)
Interest income	$	(81	)		$	(20	)	$	(25	)	$	(31	)	$	(34	)	$	(110	)			$	(40	)	$	(58	)
Interest expense (5)	32,424				6,436			5,529			4,781			4,465			21,211					4,181			3,847
Amortization of debt issuance costs (5)	1,840				387			327			177			198			1,089					203			284
Accretion of debt discounts (5)	4,690				1,085			755			53			54			1,947					47			40
Loss on debt extinguishment and modification expense (6)	1,036				1,780			17,801			183			681			20,445					776			758
Other (income) loss, net	(128		)		40			(187		)	78			38			(31		)			61			(2,112		)
Total	$	39,781			$	9,708		$	24,200		$	5,241		$	5,402		$	44,551				$	5,228		$	2,759
Income (loss) from continuing operations before income taxes	$	(2,664	)		$	34,181		$	5,795		$	(16,567	)	$	(19,923	)	$	3,486				$	47,506		$	36,064
Income tax (benefit) expense: (3)
Cash	$	2,517			$	311		$	(626	)	$	(58	)	$	1,336		$	963				$	565		$	325
Non-cash (7)	(3,802		)		3,160			2,941			224			(33,178		)	(26,853		)			1,398			582
Total	$	(1,285	)		$	3,471		$	2,315		$	166		$	(31,842	)	$	(25,890	)			$	1,963		$	907
GAAP income (loss) from continuing operations (8)	$	(1,379	)		$	30,710		$	3,480		$	(16,733	)	$	11,919		$	29,376				$	45,543		$	35,157
GAAP income (loss) from continuing operations per share - diluted	$	(0.05	)		$	0.67		$	0.07		$	(0.37	)	$	0.21		$	0.57				$	0.93		$	0.71
GAAP discontinued operations, net of income taxes (9)	$	(63,121	)		$	—		$	—		$	—		$	—		$	—				$	—		$	—
GAAP impact of noncontrolling interests (8)	(658		)		(126		)	(176		)	(164		)	(1,871		)	(2,337		)			(205		)	(222		)
GAAP net income (loss) attributable to Blucora, Inc.	$	(65,158	)		$	30,584		$	3,304		$	(16,897	)	$	10,048		$	27,039				$	45,338		$	34,935
Non-GAAP net income (loss)	$	45,096			$	47,407		$	32,947		$	(5,534	)	$	(5,672	)	$	69,148				$	58,232		$	47,726
Non-GAAP net income (loss) per share - diluted	$	1.06		(10)	$	1.04		$	0.70		$	(0.12	)	$	(0.12	)	$	1.46		(11	)	$	1.20		$	0.97
Outstanding Shares	41,845				42,635			44,681			46,077			46,366			46,366					46,828			47,493
Basic shares - GAAP	41,494				42,145			43,644			45,459			46,231			44,370					46,641			47,221
Diluted shares - GAAP	41,494				45,428			46,937			45,459			48,406			47,211					48,665			49,434

Notes to Consolidated Financial Results on next page

2

Notes to Consolidated Financial Results

⁽¹⁾  On October 14, 2015, we announced the acquisition of HD Vest, which closed on December 31, 2015. As part of our announcement, we also stated our plans to divest the Search and Content and E-Commerce businesses in order to focus more strategically on the technology-enabled financial solutions market. The pro forma information represents the combination of HD Vest, TaxAct, and corporate expenses as if the acquisition closed on January 1, 2014. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis.

⁽²⁾  As a highly seasonal business, almost all of the Tax Preparation revenue is generated in the first four months of the calendar year.

⁽³⁾  We do not allocate certain general and administrative costs (including personnel and overhead costs), stock-based compensation, acquisition-related costs, depreciation, amortization of acquired intangible assets, restructuring, other income/loss, or income taxes to the reportable segments.  The general and administrative costs are included in "Unallocated corporate operating expenses."

⁽⁴⁾  Includes stock-based compensation for Blucora share-based award grants to HD Vest employees and amortization of the definite-lived intangible assets identified in the HD Vest acquisition.

⁽⁵⁾  Excludes interest expense and amortization of debt-related costs associated with the TaxAct 2013 credit facility and HD Vest's previous debt facility, both of which were paid off at the acquisition date, and includes similar expenses associated with the TaxAct - HD Vest 2015 credit facility that was used to finance the HD Vest acquisition.

⁽⁶⁾  1Q16 gain on debt extinguishment related to the repurchase of a portion of our previously outstanding Notes below par value, offset by a loss on debt extinguishment related to the prepayment of a portion of the TaxAct - HD Vest 2015 credit facility, which resulted in the acceleration of a portion of the unamortized discount and debt issuance costs. 2Q16, 3Q16, 4Q16, 1Q17, and 2Q17 loss on debt extinguishment related to the prepayment of a portion of the TaxAct - HD Vest 2015 credit facility during each of those quarters. 2Q17 loss on debt extinguishment also related to the redemption of all of the Convertible Senior Notes and pay-off of the remaining TaxAct - HD Vest 2015 credit facility, resulting in the write-off of the remaining unamortized debt discount and issuance costs.

⁽⁷⁾  Amounts represent the non-cash portion of income taxes from continuing operations. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024.

⁽⁸⁾  GAAP income (loss) from continuing operations excludes the impact of noncontrolling interests associated with former HD Vest management rollover equity ownership of 4.48%. The impact of noncontrolling interests is recorded separately and after GAAP income (loss) from continuing operations.

⁽⁹⁾  On October 14, 2015, Blucora announced plans to divest of the Search and Content and E-Commerce businesses. Accordingly, our financial condition, results of operations, and cash flows reflect the Search and Content and E-Commerce businesses as discontinued operations for all periods presented. On August 9, 2016, we closed on an agreement with OpenMail, under which OpenMail acquired substantially all of the assets and assumed certain specified liabilities of the Search and Content business for $45.2 million. On November 17, 2016, we closed on an agreement with YFC, under which YFC acquired the E-Commerce business for $40.5 million. As a result, we recognized a combined loss on sale of discontinued operations before income taxes of $73.8 million in FY 2016.

⁽¹⁰⁾  Calculation in FY 2016 used 42,686,000 diluted shares due to non-GAAP net income.

⁽¹¹⁾  Calculation in FY 2017 used 47,211,000 diluted shares due to non-GAAP net income.

3

Blucora Reconciliation of Non-GAAP Financial Measures^{(1) (2)} 

	2016			2017															2018
(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) (3)	$	(65,158	)	$	30,584		$	3,304		$	(16,897	)	$	10,048		$	27,039		$	45,338		$	34,935
Stock-based compensation	14,128			2,565			2,737			3,132			3,219			11,653			2,958			4,033
Depreciation and amortization of acquired intangible assets	38,688			9,470			9,395			9,688			9,586			38,139			10,359			9,979
Restructuring	3,870			2,289			331			106			375			3,101			289			2
Other loss, net	39,781			9,708			24,200			5,241			5,402			44,551			5,228			2,759
Net income attributable to noncontrolling interests	658			126			176			164			1,871			2,337			205			222
Income tax expense	(1,285		)	3,471			2,315			166			(31,842		)	(25,890		)	1,963			907
Discontinued operations, net of income taxes	63,121			—			—			—			—			—			—			—
Acquisition-related costs	391			—			—			—			—			—			—			—
Adjusted EBITDA	$	94,194		$	58,213		$	42,458		$	1,600		$	(1,341	)	$	100,930		$	66,340		$	52,837
Non-GAAP Net Income (Loss)
Net income (loss) attributable to Blucora, Inc. (1) (2) (3)	$	(65,158	)	$	30,584		$	3,304		$	(16,897	)	$	10,048		$	27,039		$	45,338		$	34,935
Discontinued operations, net of income taxes	63,121			—			—			—			—			—			—			—
Stock-based compensation	14,128			2,565			2,737			3,132			3,219			11,653			2,958			4,033
Amortization of acquired intangible assets	34,143			8,336			8,336			8,665			8,665			34,002			8,357			8,855
Accretion of debt discount on Convertible Senior Notes	3,666			934			633			—			—			1,567			—			—
Accelerated accretion of debt discount on Convertible Senior Notes repurchased	1,628			—			—			—			—			—			—			—
Gain on Convertible Senior Notes repurchased	(7,724		)	—			—			—			—			—			—			—
Write-off of debt discount and debt issuance costs on terminated Convertible Senior Notes	—			—			6,715			—			—			6,715			—			—
Write-off of debt discount and debt issuance costs on closed TaxAct - HD Vest 2015 credit facility	—			—			9,593			—			—			9,593			—			—
Acquisition-related costs	391			—			—			—			—			—			—			—
Restructuring	3,870			2,289			331			106			375			3,101			289			2
Impact of noncontrolling interests	658			126			176			164			1,871			2,337			205			222
Cash tax impact of adjustments to GAAP net income	175			(587		)	(1,819		)	(928		)	3,328			(6		)	(313		)	(903		)
Non-cash income tax (benefit) expense	(3,802		)	3,160			2,941			224			(33,178		)	(26,853		)	1,398			582
Non-GAAP net income (loss)	$	45,096		$	47,407		$	32,947		$	(5,534	)	$	(5,672	)	$	69,148		$	58,232		$	47,726
Non-GAAP net income (loss) per share	$	1.06		$	1.04		$	0.70		$	(0.12	)	$	(0.12	)	$	1.46		$	1.20		$	0.97
Diluted shares	42,686			45,428			46,937			45,459			46,231			47,211			48,665			49,434

⁽¹⁾  On October 14, 2015, Blucora announced the acquisition of HD Vest, which closed on December 31, 2015. As part of that announcement, we also stated our plans to divest the Search and Content and E-Commerce businesses in order to focus more strategically on the technology-enabled financial solutions market. The pro forma information represents the combination of HD Vest, TaxAct, and corporate expenses as if the acquisition closed on January 1, 2014. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis.

4

Notes to Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

⁽²⁾ We define Adjusted EBITDA as net income attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation and amortization of acquired intangible assets (including acquired technology), restructuring, other loss, net, the impact of noncontrolling interests, income tax expense, discontinued operations, net of income taxes, and acquisition-related costs. Restructuring costs relate to the relocation of our corporate headquarters during 2017. The aforementioned items are only included in Adjusted EBITDA in the periods they occurred.

We believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. We use this non-GAAP financial measure for internal management and compensation purposes, when publicly providing guidance on possible future results, and as a means to evaluate period-to-period comparisons. We believe that Adjusted EBITDA is a common measure used by investors and analysts to evaluate our performance, that it provides a more complete understanding of the results of operations and trends affecting our business when viewed together with GAAP results, and that management and investors benefit from referring to this non-GAAP financial measure. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of our business and, therefore, Adjusted EBITDA should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income. Other companies may calculate Adjusted EBITDA differently and, therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

We define non-GAAP net income as net income attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of discontinued operations, net of income taxes, stock-based compensation, amortization of acquired intangible assets (including acquired technology), accretion of debt discount and accelerated accretion of debt discount on our Convertible Senior Notes that were outstanding for a portion of 2017 (the "Notes"), gain on those Convertible Senior Notes, write-off of debt discount and debt issuance costs on terminated Notes and the terminated TaxAct - HD Vest 2015 credit facility, acquisition-related costs, restructuring costs (described further under Adjusted EBITDA above), the impact of noncontrolling interests, the related cash tax impact of those adjustments, and non-cash income taxes. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024. The aforementioned items are only included in non-GAAP net income in the periods they occurred.

We believe that non-GAAP net income and non-GAAP net income per share provide meaningful supplemental information to management, investors, and analysts regarding our performance and the valuation of our business by excluding items in the statement of operations that we do not consider part of our ongoing operations or have not been, or are not expected to be, settled in cash. Additionally, we believe that non-GAAP net income and non-GAAP net income per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP net income and non-GAAP net income per share should be evaluated in light of our financial results prepared in accordance with GAAP and should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income and net income per share. Other companies may calculate non-GAAP net income and non-GAAP net income per share differently, and, therefore, our non-GAAP net income and non-GAAP net income per share may not be comparable to similarly titled measures of other companies.

⁽³⁾ As presented in the Blucora Consolidated Financial Results (unaudited) on page 2.

5

Blucora Net Leverage Ratio

	2016				2017																				2018
(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	$	51,713			$	74,609			$	78,312			$	78,558			$	59,965			$	59,965			$	77,107			$	89,840
Available-for-sale investments	7,101				160				—				—				—				—				—				—
	$	58,814			$	74,769			$	78,312			$	78,558			$	59,965			$	59,965			$	77,107			$	89,840
DEBT:
Senior secured credit facility	$	—			$	—			$	360,000			$	350,000			$	345,000			$	345,000			$	305,000			$	265,000
TaxAct - HD Vest 2015 credit facility	260,000				222,000				—				—				—				—				—				—
Convertible Senior Notes	172,859				172,859				—				—				—				—				—				—
Note payable, related party	3,200				3,200				3,200				3,200				—				—				—				—
	$	436,059			$	398,059			$	363,200			$	353,200			$	345,000			$	345,000			$	305,000			$	265,000
NET DEBT	$	(377,245	)		$	(323,290	)		$	(284,888	)		$	(274,642	)		$	(285,035	)		$	(285,035	)		$	(227,893	)		$	(175,160	)
Last twelve months:
SEGMENT INCOME:
Wealth Management	$	46,296			$	47,243			$	49,725			$	50,522			$	50,916			$	50,916			$	52,138			$	52,686
Tax Preparation	66,897				72,457				79,176				77,320				72,921				72,921				78,594				86,200
	113,193				119,700				128,901				127,842				123,837				123,837				130,732				138,886
Unallocated corporate operating expenses	(18,999		)		(21,073		)		(23,076		)		(22,756		)		(22,907		)		(22,907		)		(21,675		)		(19,450		)
ADJUSTED EBITDA	$	94,194			$	98,627			$	105,825			$	105,086			$	100,930			$	100,930			$	109,057			$	119,436
LEVERAGE RATIO	4.0			x	3.3			x	2.7			x	2.6			x	2.8			x	2.8			x	2.1			x	1.5			x

6

Blucora Reconciliation of Operating Free Cash Flow from Continuing Operations⁽¹⁾ 

	2016			2017															2018
(in thousands, rounding differences may exist)	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q
Net cash provided by operating activities from continuing operations	$	85,970		$	52,900		$	28,236		$	(1,906	)	$	(6,384	)	$	72,846		$	57,450		$	49,107
Purchases of property and equipment	(3,812		)	(1,165		)	(746		)	(1,898		)	(1,230		)	(5,039		)	(940		)	(1,662		)
Operating free cash flow from continuing operations	$	82,158		$	51,735		$	27,490		$	(3,804	)	$	(7,614	)	$	67,807		$	56,510		$	47,445

⁽¹⁾  We define operating free cash flow from continuing operations as net cash provided by operating activities from continuing operations less purchases of property and equipment. We believe operating free cash flow is an important liquidity measure that reflects the cash generated by the continuing businesses, after the purchases of property and equipment, that can then be used for, among other things, strategic acquisitions and investments in the businesses, stock repurchases, and funding ongoing operations.

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Blucora Operating Metrics - Wealth Management

	2016			2017															2018
(in thousands except %s, rounding differences may exist)	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q
Segment revenue	$	316,546		$	82,667		$	85,296		$	86,809		$	93,848		$	348,620		$	92,082		$	92,015
Segment net revenue (1)	$	102,550		$	26,793		$	28,394		$	27,591		$	30,639		$	113,417		$	29,259		$	30,125
Segment income (2)	$	46,296		$	11,853		$	12,406		$	12,425		$	14,232		$	50,916		$	13,075		$	12,954
Segment income % of revenue	15		%	14		%	15		%	14		%	15		%	15		%	14		%	14		%
Segment income % of net revenue	45		%	44		%	44		%	45		%	46		%	45		%	45		%	43		%

(in thousands except %s, rounding differences may exist)			2016			2017															2018
	Sources of Revenue	Primary Drivers	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q
Advisor-driven	Commission	- Transactions - Asset levels	$	150,125		$	39,595		$	38,154		$	39,432		$	43,060		$	160,241		$	42,870		$	40,384
	Advisory	- Advisory asset levels	129,417			33,576			35,914			37,588			38,616			145,694			39,301			40,058
Other revenue	Asset-based	- Cash balances - Interest rates - Number of accounts - Client asset levels	22,653			5,966			6,784			6,526			7,021			26,297			7,172			7,306
	Transaction and fee	- Account activity - Number of clients - Number of advisors - Number of accounts	14,351			3,530			4,444			3,263			5,151			16,388			2,739			4,267
	Total revenue		$	316,546		$	82,667		$	85,296		$	86,809		$	93,848		$	348,620		$	92,082		$	92,015
	Total recurring revenue (3)		$	249,130		$	63,907		$	68,971		$	70,539		$	74,129		$	277,546		$	72,962		$	75,369
	Recurring revenue rate (3)		78.7		%	77.3		%	80.9		%	81.3		%	79.0		%	79.6		%	79.2		%	81.9		%

(in thousands except %s and as otherwise indicated, rounding differences may exist)	2016			2017															2018
	FY 12/31			1Q			2Q			3Q			4Q			FY 12/31			1Q			2Q
Total Client Assets (4)	$	38,663,595		$	40,424,515		$	41,427,028		$	42,696,862		$	44,178,710		$	44,178,710		$	44,383,024		$	45,016,993
Brokerage Assets (5)	$	28,266,524		$	29,333,748		$	29,875,740		$	30,712,542		$	31,648,545		$	31,648,545		$	31,665,899		$	32,069,800
Advisory Assets (6)	$	10,397,071		$	11,090,767		$	11,551,288		$	11,984,320		$	12,530,165		$	12,530,165		$	12,717,125		$	12,947,193
% of total Total Client Assets	26.9		%	27.4		%	27.9		%	28.1		%	28.4		%	28.4		%	28.7		%	28.8		%
Number of advisors (in ones)	4,472			4,427			4,426			4,392			3,999			3,999			3,920			3,709
Adviser-driven revenue per adviser	$	16.3		$	16.5		$	16.7		$	17.5		$	20.4		$	20.4		$	21.0		$	21.7

⁽¹⁾  Amount represents segment revenue less advisor commission payout.

⁽²⁾  Excludes expenses associated with non-recurring projects.

⁽³⁾  Recurring revenue consists of trailing commissions, advisory fees, fees from cash sweep programs, and certain transaction and fee revenue.

⁽⁴⁾  Total client assets replaces the previously used term assets under administration.

⁽⁵⁾  Brokerage assets represents the difference between total client assets and advisory assets.

⁽⁶⁾  Advisory assets replaces the previously used term assets under management.

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Blucora Operating Metrics - Tax Preparation

(in thousands except %s, rounding differences may exist)	U.S. tax seasons ended				Six months ended June 30,
Consumers	April 19, 2018	April 18, 2017	% change		2018	2017	% change
Online e-files	3,432	3,958	(13	)%	3,483	4,034	(14	)%
Desktop e-files	152	184	(17	)%	155	187	(17	)%
Sub-total e-files	3,584	4,142	(13	)%	3,638	4,221	(14	)%
Free File Alliance e-files (1)	188	164	15	%	193	171	13	%
Total e-files	3,772	4,306	(12	)%	3,831	4,392	(13	)%

(in thousands except %s and as otherwise indicated, rounding differences may exist)	U.S. tax seasons ended				Six months ended June 30,
Preparers	April 19, 2018	April 18, 2017	% change		2018	2017	% change
E-files	1,763	1,717	3	%	1,833	1,786	3	%
Units sold (in ones)	20,588	20,964	(2	)%	20,637	20,694	—	%
E-files per unit sold (in ones)	85.6	81.9	5	%	88.8	86.3	3	%

⁽¹⁾  Free File Alliance e-files are provided as part of an IRS partnership that provides free electronic tax filing services to taxpayers meeting certain income-based guidelines.

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