DALLAS, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Blucora, Inc. (NASDAQ: BCOR), a leading provider of technology-enabled, tax focused financial solutions, today announced financial results for the third quarter ended September 30, 2021.

Third Quarter Highlights and Recent Developments

  • Total revenue for the quarter was $174.2 million
  • GAAP Net Loss of $27.8 million, or $(0.57) per diluted share
  • Non-GAAP Net Loss of $12.8 million, or $(0.26) per diluted share
  • Total client assets ended the quarter up 14% year-over-year to $86.6 billion, with $39.8 billion, or 45.9% in advisory assets
  • Advisory assets increased 23% year-over-year, including approximately $5.4 billion in Avantax Planning Partners (“APP”) assets
  • Preliminary outlook for the tax software segment projects revenue growth of between 14% and 18% from the mid-point of our 2021 full-year guidance. Preliminary outlook for operating income for full year 2022 of between $98 million and $106 million, which would be an all-time high
  • In late August, we completed the acquisition of Headquarters Advisory Group, LLC and on November 2nd, we announced the completed acquisition of Warner Finance, both were existing FPs, which continues to expand the nationwide footprint of Avantax’s in-house RIA

“We believe that continued execution of our strategy will drive long-term sustainable growth within both of our segments. It’s great to see the progress that our team is making in delivering ongoing improvements in the experiences for our Financial Professionals and customers” commented Chris Walters, Blucora’s President and Chief Executive Officer. Mr. Walters continued, “Our progress is highlighted by the strong 2022 tax software segment outlook that we’ve shared today.”

Summary Financial Performance: Q3 2021
($ in millions, except per share amounts)

 Q3 2021 Q3 2020 Change
Revenue:     
Wealth Management$169.1   $135.9   24 %
Tax Software5.0   39.4   (87)%
Total Revenue$174.2   $175.4   (1)%
Segment Operating Income (Loss)     
Wealth Management$19.6   $17.5   12 %
Tax Software(13.9)  16.2   (185)%
Total Segment Operating Income$5.7   $33.7   (83)%
Unallocated Corporate-Level General and Administrative Expenses$(6.5)  $(6.7)  3 %
GAAP:     
Operating Income (Loss)$(20.3)  $1.0   (2,102)%
Net Loss$(27.8)  $(26.2)  (6)%
Diluted Net Loss Per Share$(0.57)  $(0.55)  (4)%
Non-GAAP: (1)     
Adjusted EBITDA$(0.8)  $27.0   (103)%
Net Income (Loss)$(12.8)  $15.1   (185)%
Net Income (Loss) per Share - diluted$(0.26)  $0.31   (184)%

_________________________
(1)   See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.

Full Year 2021 Outlook

($ in millions, except per share amounts)Prior OutlookCurrent Outlook
Wealth Management Revenue$631.5 - $649.5$645.0 - $650.0
Tax Software Revenue$223.5 - $226.5$225.5 - $226.5
Total Revenue$855.0 - $876.0$870.5 - $876.5
Wealth Management Segment Operating Income$79.0 - $83.5$81.0 - $83.0
Tax Software Segment Operating Income$80.0 - $82.0$80.5 - $81.5
Unallocated Corporate-Level General and Administrative Expenses$27.5 - $26.5$26.0 - $25.5
GAAP:  
Net Income (loss)($8.5) - $1.0($4.5) - ($0.0)
Net Income (loss) per diluted share($0.17) - $0.02($0.09) - ($0.00)
Non-GAAP:  
Adjusted EBITDA (1)$131.5 - $139.0$135.5 - $139.0
Non-GAAP Net Income (loss) (1)$76.0 - $84.5$82.0 - $86.0
Non-GAAP Net Income (loss) per diluted share (1)$1.52 - $1.70$1.65 - $1.73

____________________________
(1)   See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.

Preliminary 2022 Tax Software Outlook

As we have continued to analyze the data from our new marketing efforts and from our new product and service offerings, we are confident in providing our preliminary outlook for 2022. At this time, we are providing our preliminary 2022 outlook for the Tax Software segment to provide revenue growth of between 14% and 18% from the mid-point of our full year 2021 guidance and segment operating income of between $98 and $106 million.      

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 third quarter results, its outlook for full year 2021, and other business matters. We will also provide supplemental financial information to our results on the Investor Relations section of the Blucora corporate website at www.blucora.com prior to the call. The supplemental financial information has also been furnished with the SEC on Form 8-K. A replay of the call will be available on our website.

About Blucora®

Blucora, Inc. (NASDAQ: BCOR) is a provider of data and technology-driven solutions that empower people to improve their financial wellness. Blucora operates in two segments including (i) wealth management, through its Avantax Wealth Management and Avantax Planning Partners brands, with a collective $87 billion in total client assets as of September 30, 2021 and (ii) tax software, through its TaxAct business, a market leader in tax software with approximately 3 million consumer users and approximately 24,500 professional users in 2021. With integrated tax-focused software and wealth management, Blucora is uniquely positioned to assist our customers in achieving better long-term outcomes via holistic, tax-advantaged solutions. For more information on Blucora, visit www.blucora.com.

Source: Blucora

Blucora Investor Relations
Dee Littrell (972) 870-6463
IR@Blucora.com

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecasts,” “future,” “will,” “projects,” “predicts,” “potential,” “continues,” “target,” “outlook,” “guidance” and similar expressions and variations. Actual results may differ significantly from management’s expectations due to various risks and uncertainties including, but not limited to: our ability to effectively compete within our industries; our ability to attract and retain financial professionals, qualified employees, clients, and customers, as well as our ability to provide strong customer/client service; the impact of the COVID-19 pandemic on our results of operations and our business, including the impact of the resulting economic and market disruption, the extension of tax filing deadlines and other related government actions; our ability to retain employees and acquired client assets following acquisitions; our future capital requirements and the availability of financing, if necessary; our ability to meet our current and future debt service obligations, including our ability to maintain compliance with our debt covenants; any downgrade of the Company’s credit ratings; our ability to generate strong performance for our clients and the impact of the financial markets on our clients’ portfolios; the impact of new or changing legislation and regulations (or interpretations thereof) on our business, including our ability to successfully address and comply with such legislation and regulations (or interpretations thereof) and increased costs, reductions of revenue, and potential fines, penalties or disgorgement to which we may be subject as a result thereof; risks, burdens, and costs, including fines, penalties, or disgorgement, associated with our business being subjected to regulatory inquiries, investigations, or initiatives including those of the Financial Industry Regulatory Authority, Inc. and the Securities and Exchange Commission; risks associated with legal proceedings, including litigation and regulatory proceedings; our ability to close, finance, and realize all of the anticipated benefits of acquisitions, as well as our ability to integrate the operations of recently acquired businesses, and the potential impact of such acquisitions on our existing indebtedness and leverage;   our ability to manage leadership and employee transitions, including costs and time burdens on management and our board of directors related thereto; the compromising of confidentiality, availability or integrity of information, including cyberattacks; political and economic conditions and events that directly or indirectly impact the wealth management and tax preparation software industries; our ability to respond to rapid technological changes, including our ability to successfully release new products and services or improve upon existing products and services; our expectations concerning the revenues we generate from fees associated with the financial products that we distribute; risks related to goodwill and other intangible asset impairment; our ability to develop, establish, and maintain strong brands; risks associated with the use and implementation of information technology and the effect of security breaches, computer viruses, and computer hacking attacks; our ability to comply with laws and regulations regarding privacy and protection of user data; our ability to maintain our relationships with third-party partners, providers, suppliers, vendors, distributors, contractors, financial institutions, industry associations, and licensing partners, and our expectations regarding and reliance on the products, tools, platforms, systems, and services provided by these third parties; our beliefs and expectations regarding the seasonality of our business; our assessments and estimates that determine our effective tax rate; and our ability to protect our intellectual property and the impact of any claim that we have infringed on the intellectual property rights of others. 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 hereof. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law.

Blucora, Inc.
Condensed Consolidated Statements of Operations
(Unaudited) (Amounts in thousands, except per share data)

 Three months ended 
September 30,		 Nine months ended 
September 30,
 2021 2020 2021 2020
Revenue:       
Wealth management services revenue$169,135   $135,932   $486,021   $396,805  
Tax software services revenue5,039   39,421   220,848   202,990  
Total revenue174,174   175,353   706,869   599,795  
Operating expenses:       
Cost of revenue:       
Wealth management services cost of revenue120,641   96,122   343,174   282,332  
Tax software services cost of revenue2,323   2,692   12,330   9,759  
Total cost of revenue122,964   98,814   355,504   292,091  
Engineering and technology7,874   6,007   22,233   21,899  
Sales and marketing28,399   31,018   140,809   150,785  
General and administrative23,102   18,605   71,619   63,533  
Acquisition and integration2,241   10,276   28,513   18,782  
Depreciation2,867   1,874   8,371   5,345  
Amortization of other acquired intangible assets7,009   7,746   21,247   22,167  
Impairment of goodwill—   —   —   270,625  
Total operating expenses194,456   174,340   648,296   845,227  
Operating income (loss)(20,282)  1,013   58,573   (245,432) 
Other loss, net (1)(8,295)  (11,963)  (24,202)  (23,386) 
Income (loss) before income taxes(28,577)  (10,950)  34,371   (268,818) 
Income tax benefit (expense)774   (15,256)  (2,920)  (23,237) 
Net income (loss)$(27,803)  $(26,206)  $31,451   $(292,055) 
Net income (loss) per share:       
Basic$(0.57)  $(0.55)  $0.65   $(6.09) 
Diluted$(0.57)  $(0.55)  $0.64   $(6.09) 
Weighted average shares outstanding:       
Basic48,707   48,039   48,492   47,936  
Diluted48,707   48,039   49,373   47,936  

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

 Three months ended
September 30,		 Nine months ended
September 30,
 2021 2020 2021 2020
Interest expense$7,304  $7,254   $21,789   $17,410  
Amortization of debt issuance costs388  362   1,128   1,006  
Accretion of debt discounts290  276   851   414  
Total interest expense7,982  7,892   23,768   18,830  
Interest income—  (2)  (2)  (27) 
Gain on the sale of a business—  (349)  —   (349) 
Non-capitalized debt issuance expenses—  3,687   —   3,687  
Other313  735   436   1,245  
Other loss, net$8,295  $11,963   $24,202   $23,386  

Blucora, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands, except per share amounts)

 September 30,
2021
(unaudited)		 December 31,
2020 
(audited)
ASSETS   
Current assets:   
Cash and cash equivalents$184,926   $150,125  
Cash segregated under federal or other regulations536   637  
Accounts receivable, net of allowance17,886   12,736  
Commissions and advisory fees receivable25,003   26,132  
Other receivables468   717  
Prepaid expenses and other current assets, net11,119   10,321  
Total current assets239,938   200,668  
Long-term assets:   
Property and equipment, net68,950   58,500  
Right-of-use assets, net20,818   23,455  
Goodwill454,821   454,821  
Other intangible assets, net304,435   322,179  
Other long-term assets14,519   4,569  
Total long-term assets863,543   863,524  
Total assets$1,103,481   $1,064,192  
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities:   
Accounts payable$8,932   $9,290  
Commissions and advisory fees payable18,297   19,021  
Accrued expenses and other current liabilities75,375   56,419  
Deferred revenue—current5,469   12,298  
Lease liabilities—current4,429   2,304  
Current portion of long-term debt1,790   1,784  
Total current liabilities114,292   101,116  
Long-term liabilities:   
Long-term debt, net552,987   552,553  
Deferred tax liability, net29,502   30,663  
Deferred revenue—long-term5,553   6,247  
Lease liabilities—long-term34,020   36,404  
Other long-term liabilities7,992   24,919  
Total long-term liabilities630,054   650,786  
Total liabilities744,346   751,902  
    
Stockholders’ equity:   
Common stock, par value $0.0001 per share—900,000 authorized shares; 50,025 shares issued and 48,719 shares outstanding at September 30, 2021; 49,483 shares issued and 48,177 shares outstanding at December 31, 20205   5  
Additional paid-in capital1,613,624   1,598,230  
Accumulated deficit(1,226,095)  (1,257,546) 
Treasury stock, at cost—1,306 shares at September 30, 2021 and December 31, 2020(28,399)  (28,399) 
Total stockholders’ equity359,135   312,290  
Total liabilities and stockholders’ equity$1,103,481   $1,064,192  

Blucora, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited) (Amounts in thousands)

 Nine months ended September 30,
 2021 2020
Operating activities:   
Net income (loss)$31,451   $(292,055) 
Adjustments to reconcile net income (loss) to net cash from operating activities:   
Stock-based compensation15,499   7,220  
Depreciation and amortization of acquired intangible assets32,498   29,619  
Impairment of goodwill—   270,625  
Reduction of right-of-use lease assets2,694   8,335  
Deferred income taxes(1,161)  23,199  
Amortization of debt issuance costs1,128   1,006  
Accretion of debt discounts851   414  
Gain on sale of a business—   (349) 
Change in fair value of acquisition-related contingent consideration19,500   (1,000) 
Accretion of lease liability731   1,413  
Other1,371   984  
Cash provided (used) by changes in operating assets and liabilities:   
Accounts receivable(5,008)  12,267  
Commissions and advisory fees receivable1,129   (1,480) 
Other receivables249   (2,909) 
Prepaid expenses and other current assets(798)  2,555  
Other long-term assets(10,898)  2,763  
Accounts payable(358)  (7,018) 
Commissions and advisory fees payable(500)  (3,012) 
Lease liabilities(1,047)  (3,568) 
Deferred revenue(7,523)  (8,582) 
Accrued expenses and other current and long-term liabilities(5,417)  (5,113) 
Net cash provided by operating activities74,391   35,314  
Investing activities:   
Purchases of property and equipment(21,624)  (28,711) 
Business acquisitions, net of cash acquired—   (102,425) 
Asset acquisitions, net of cash acquired(3,823)  —  
Proceeds from sale of a business—   349  
Net cash used by investing activities(25,447)  (130,787) 
Financing activities:   
Proceeds from credit facilities, net of debt issuance costs and debt discounts(502)  226,278  
Payments on credit facilities(1,359)  (66,078) 
Proceeds from stock option exercises535   25  
Proceeds from issuance of stock through employee stock purchase plan1,845   1,201  
Tax payments from shares withheld for equity awards(1,613)  (1,034) 
Acquisition-related contingent consideration payments(13,150)  —  
Net cash provided (used) by financing activities(14,244)  160,392  
Net increase in cash, cash equivalents, and restricted cash34,700   64,919  
Cash, cash equivalents, and restricted cash, beginning of period150,762   86,450  
Cash, cash equivalents, and restricted cash, end of period$185,462   $151,369  

Blucora, Inc.
Segment Information
(Unaudited) (Amounts in thousands)

 Three months ended 
September 30,		 Nine months ended 
September 30,
 2021 2020 2021 2020
Revenue:       
Wealth Management (1)$169,135   $135,932   $486,021   $396,805  
Tax Software (1)5,039   39,421   220,848   202,990  
Total revenue$174,174   $175,353   $706,869   $599,795  
Operating income (loss):       
Wealth Management$19,564   $17,498   $60,356   $51,827  
Tax Software(13,864)  16,234   100,472   60,646  
Corporate-level activity (2)(25,982)  (32,719)  (102,255)  (357,905) 
Total operating income (loss)(20,282)  1,013   58,573   (245,432) 
Other loss, net(8,295)  (11,963)  (24,202)  (23,386) 
Income (loss) before income taxes(28,577)  (10,950)  34,371   (268,818) 
Income tax benefit (expense)774   (15,256)  (2,920)  (23,237) 
Net income (loss)$(27,803)  $(26,206)  $31,451   $(292,055) 

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

 Three months ended 
September 30,		 Nine months ended 
September 30,
 2021 2020 2021 2020
Wealth Management:       
Advisory revenue$103,540  $82,612  $291,167  $227,672 
Commission revenue52,961  44,921  157,197  135,337 
Asset-based revenue5,659  4,351  16,514  18,911 
Transaction and fee revenue6,975  4,048  21,143  14,885 
Total Wealth Management revenue$169,135  $135,932  $486,021  $396,805 
Tax Software:       
Consumer revenue$4,479  $38,482  $203,891  $186,724 
Professional revenue560  939  16,957  16,266 
Total Tax Software revenue$5,039  $39,421  $220,848  $202,990 

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

 Three months ended 
September 30,		 Nine months ended 
September 30,
 2021 2020 2021 2020
Unallocated corporate-level general and administrative expenses$6,499  $6,745  $18,452  $19,571 
Stock-based compensation4,729  4,517  15,499  7,220 
Acquisition and integration costs2,241  10,276  28,513  18,782 
Depreciation3,906  2,620  11,251  7,452 
Amortization of acquired intangible assets7,009  7,746  21,247  22,167 
Impairment of goodwill—  —  —  270,625 
Executive transition costs—  405  —  10,225 
Headquarters relocation costs—  410  —  1,863 
Contested proxy and other legal and consulting costs1,598  —  7,293  — 
Total corporate-level activity$25,982  $32,719  $102,255  $357,905 

Blucora, Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures (1)

Adjusted EBITDA Reconciliation (1)
(Unaudited) (Amounts in thousands)

 Three months ended 
September 30,		 Nine months ended 
September 30,
 2021 2020 2021 2020
Net income (loss) (2)$(27,803)  $(26,206)  $31,451  $(292,055) 
Stock-based compensation4,729   4,517   15,499  7,220  
Depreciation and amortization of acquired intangible assets10,915   10,366   32,498  29,619  
Other loss, net8,295   11,963   24,202  23,386  
Acquisition and integration—Excluding change in the fair value of acquisition-related contingent consideration541   11,276   9,013  19,782  
Acquisition and integration—Change in the fair value of acquisition-related contingent consideration1,700   (1,000)  19,500  (1,000) 
Impairment of goodwill—   —   —  270,625  
Executive transition costs—   405   —  10,225  
Headquarters relocation costs—   410   —  1,863  
Contested proxy and other legal and consulting costs1,598   —   7,293  —  
Income tax (benefit) expense(774)  15,256   2,920  23,237  
Adjusted EBITDA (1)$(799)  $26,987   $142,376  $92,902  

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share Reconciliation (1)
(Unaudited) (Amounts in thousands, except per share amounts)

 Three months ended 
September 30,		 Nine months ended 
September 30,
 2021 2020 2021 2020
Net income (loss) (2)$(27,803)  $(26,206)  $31,451   $(292,055) 
Stock-based compensation4,729   4,517   15,499   7,220  
Amortization of acquired intangible assets7,009   7,746   21,247   22,167  
Gain on the sale of a business—   (349)  —   (349) 
Acquisition and integration—Excluding change in the fair value of HKFS Contingent Consideration541   11,276   9,013   19,782  
Acquisition and integration—Change in the fair value of HKFS Contingent Consideration1,700   (1,000)  19,500   (1,000) 
Impairment of goodwill—   —   —   270,625  
Executive transition costs—   405   —   10,225  
Headquarters relocation costs—   410   —   1,863  
Contested proxy and other legal and consulting costs1,598   —   7,293   —  
Non-capitalized debt issuance expenses—   3,687   —   3,687  
Cash tax impact of adjustments to GAAP net income (loss)(331)  (418)  (1,523)  (1,413) 
Non-cash income tax (benefit) expense(197)  14,987   (1,160)  22,327  
Non-GAAP net income (loss)$(12,754)  $15,055   $101,320   $63,079  
Per diluted share:       
Net income (loss) (2) (3)$(0.57)  $(0.54)  $0.64   $(6.06) 
Stock-based compensation0.10   0.09   0.31   0.15  
Amortization of acquired intangible assets0.14   0.16   0.43   0.46  
Gain on the sale of a business—   (0.01)  —   (0.01) 
Acquisition and integration—Excluding change in the fair value of HKFS Contingent Consideration0.01   0.23   0.18   0.41  
Acquisition and integration—Change in the fair value of HKFS Contingent Consideration0.03   (0.02)  0.39   (0.02) 
Impairment of goodwill—   —   —   5.62  
Executive transition costs—   0.01   —   0.21  
Headquarters relocation costs—   0.01   —   0.04  
Contested proxy and other legal and consulting costs0.04   —   0.15   —  
Non-capitalized debt issuance expenses—   0.08   —   0.08  
Cash tax impact of adjustments to GAAP net income (loss)(0.01)  (0.01)  (0.03)  (0.03) 
Non-cash income tax (benefit) expense—   0.31   (0.02)  0.46  
Non-GAAP net income (loss) per share - diluted$(0.26)  $0.31   $2.05   $1.31  
Weighted average shares outstanding - diluted48,707   48,203   49,373   48,184  

Adjusted EBITDA Reconciliation for Forward-Looking Guidance (1)
(Amounts in thousands)

 Ranges for the year ending
 December 31, 2021
 Low High
Net income (loss)$(4,500)  $— 
Stock-based compensation20,700   20,500 
Depreciation and amortization of acquired intangible assets44,200   44,100 
Other loss, net32,600   32,200 
Acquisition, integration, and contested proxy and other legal and consulting costs (4)40,500   40,300 
Income tax (benefit) expense2,000   1,900 
Adjusted EBITDA$135,500   $139,000 

Non-GAAP Net Income and Non-GAAP Net Income Per Share Reconciliation
for Forward-Looking Guidance (1)
(Amounts in thousands, except per share amounts)

 Ranges for the year ending
 December 31, 2021
 Low High
Net income (loss)$(4,500)  $—  
Stock-based compensation20,700   20,500  
Amortization of acquired intangible assets28,300   28,300  
Acquisition, integration, and contested proxy and other legal and consulting costs (4)40,500   40,300  
Cash tax impact of adjustments to net income (loss)(2,000)  (2,000) 
Non-cash income tax benefit(1,000)  (1,100) 
Non-GAAP net income (loss)$82,000   $86,000  
Per diluted share:   
Net income (loss) (3)$(0.09)  $—  
Stock-based compensation0.42   0.41  
Amortization of acquired intangible assets0.57   0.58  
Acquisition, integration, and contested proxy and other legal and consulting costs (4)0.81   0.81  
Cash tax impact of adjustments to net income (loss)(0.04)  (0.04) 
Non-cash income tax benefit(0.02)  (0.03) 
Non-GAAP net income per share$1.65   $1.73  
Weighted average shares outstanding - diluted49,670   49,570  

Adjusted EBITDA Reconciliation for Prior Guidance (1)
(Amounts in thousands)

 Ranges for the year ending
 December 31, 2021
 Low High
Net income (loss)$(8,500)  $1,000 
Stock-based compensation21,700   21,300 
Depreciation and amortization of acquired intangible assets46,100   45,600 
Other loss, net32,600   31,900 
Acquisition, integration, and contested proxy and other legal and consulting costs (4)38,100   37,400 
Income tax expense1,500   1,800 
Adjusted EBITDA$131,500   $139,000 

Non-GAAP Net Income and Non-GAAP Net Income Per Share Reconciliation for Prior Guidance (1)

(Amounts in thousands, except per share amounts)

 Ranges for the year ending
 December 31, 2021
 Low High
Net income (loss)$(8,500)  $1,000  
Stock-based compensation21,700   21,300  
Amortization of acquired intangible assets28,300   28,200  
Acquisition, integration, and contested proxy and other legal and consulting costs (4)38,100   37,400  
Cash tax impact of adjustments to net income (loss)(2,200)  (2,000) 
Non-cash income tax benefit(1,400)  (1,400) 
Non-GAAP net income$76,000   $84,500  
Per diluted share:   
Net income (loss) (3)$(0.17)  $0.02  
Stock-based compensation0.43   0.43  
Amortization of acquired intangible assets0.57   0.57  
Acquisition, integration, and contested proxy and other legal and consulting costs (4)0.76   0.75  
Cash tax impact of adjustments to net income (loss)(0.04)  (0.04) 
Non-cash income tax benefit(0.03)  (0.03) 
Non-GAAP net income per share$1.52   $1.70  
Weighted average shares outstanding - diluted50,000   49,800  

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

(1)   We define Adjusted EBITDA as net income (loss), determined in accordance with GAAP, excluding the effects of stock-based compensation, depreciation and amortization of acquired intangible assets, other loss, net, acquisition and integration costs, impairment of goodwill, executive transition costs, headquarters relocation costs, contested proxy and other legal and consulting costs, and income tax expense. Other loss, net primarily consists of interest expense, net and non-capitalized debt issuance expenses. Acquisition and integration costs primarily relate to the HKFS Acquisition and 1st Global Acquisition. Impairment of goodwill relates to the impairment of our Wealth Management reporting unit goodwill in the first quarter of 2020. Executive transition costs relate to the departure of certain Company executives in the first quarter of 2020. Headquarters relocation costs relate to the process of moving from our Dallas and Irving offices to our new headquarters.

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 (loss). 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 (loss) as net income (loss), determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets, gain on the sale of a business, acquisition and integration costs, impairment of goodwill, executive transition costs, headquarters relocation costs, contested proxy and other legal and consulting costs, non-capitalized debt issuance expenses, the related cash tax impact of those adjustments, and non-cash income tax (benefit) expense. We exclude the non-cash portion of income tax expense 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 be utilized or expire between 2021 and 2024. Gain on the sale of a business relates to the disposition of SimpleTax in 2019 and the subsequent working capital adjustment in the third quarter of 2020. Non-capitalized debt issuance expense relates to the expense recognized as a result of the Term Loan increase in the third quarter of 2020.

We believe that non-GAAP net income (loss) and non-GAAP net income (loss) 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 (loss) and non-GAAP net income (loss) per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP net income (loss) and non-GAAP net income (loss) 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 (loss) and net income (loss) per share. Other companies may calculate non-GAAP net income (loss) and non-GAAP net income (loss) per share differently, and, therefore, our non-GAAP net income (loss) and non-GAAP net income (loss) per share may not be comparable to similarly titled measures of other companies.

(2)   As presented in the condensed consolidated statements of operations (unaudited).

(3)   Any difference in the “per diluted share” amounts between this table and the condensed consolidated statements of comprehensive income is due to using different weighted average shares outstanding in the event that there is GAAP net loss but non-GAAP net income and vice versa.

(4)   The breakout of components cannot be determined on a forward-looking basis without unreasonable efforts.