The acquisition of 1st. Global boosted financial results for Blucora for the second quarter ended June 30. The addition of the investment firm to Blucora’s wealth management business, which includes HD Vest, led to a 23-percent rise in revenue for the most recently ended period.

Revenue rose to $193.7 million for the quarter, up from $157.8 million for last year’s corresponding period. Expenses from the acquisition depressed operating income leading to net income of $31 million for the most recently ended period, off 12.1 percent from $35.3 million a year earlier.

During the company’s recent earnings webcast CEO John Clendening said the purchase of 1st Global for $180 million “our position with large accounting firms” and noted six accounting firms had joined the financial planning program during the quarter.

With the addition of 1st Global, revenue for the wealth management business was $127.8 million, up 39 percent from $92 million a year earlier. The remainder of revenue, $65.9 million from the TaxAct business, virtually unchanged from a year ago since the total reflects operations outside of tax season.

Blucora said there was a $21.4 million increase in the advisory business over a year go with about $17.6 million from 1st Global, based on the increase in beginning-of-the-period advisory assets. Asset-based revenue of $5.9 million included approximately $2.4 million from 1st Global.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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