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BCOR Blucora

Filed: 4 Aug 21, 6:37am

Exhibit 99.1
 blucoralogo.jpg
Blucora Announces Second Quarter 2021 Results
DALLAS, TX — August 4, 2021 — Blucora, Inc. (NASDAQ: BCOR), a leading provider of technology-enabled, tax focused financial solutions, today announced financial results for the second quarter ended June 30, 2021.
Second Quarter Highlights and Recent Developments
Total revenue increased to $254.3 million, or a 58% increase versus Q2 2020
GAAP Net Income of $31.6 million, or $0.64 per diluted share
Non-GAAP Net Income of $63.1 million, or $1.28 per diluted share
Total client assets ended the quarter up 28% year-over-year to $87.8 billion, with $39.4 billion, or 44.9% in advisory assets
Advisory assets increased 49% year-over-year, including approximately $5.3 billion in Avantax Planning Partners (“APP”) assets
Agreed to acquire Headquarters Advisory Group, LLC, an existing FP with approximately $1.1 billion in assets; once closed, the assets would expand the nationwide footprint of Avantax’s in-house RIA

“Our wealth management and tax software businesses continue to exceed expectations during the year, both completing a strong second quarter”, commented Chris Walters, Blucora’s President and Chief Executive Officer. Mr. Walters continued, “We continue to operate effectively in executing our strategic priorities, which were designed to drive long-term sustainable growth for both businesses.”


Summary Financial Performance: Q2 2021
($ in millions except per share amounts)
Q2 2021Q2 2020Change
Revenue:
Wealth Management$162.4 $115.9 40 %
Tax Software$91.9 $45.2 103 %
Total Revenue$254.3 $161.1 58 %
Segment Operating Income
Wealth Management$21.4 $11.7 83 %
Tax Software$63.4 $6.7 846 %
Total Segment Operating Income$84.8 $18.4 361 %
Unallocated Corporate-Level General and Administrative Expenses$(6.3)$(5.8)(9)%
GAAP:
Operating Income (Loss)$41.6 $(4.6)1004 %
Net Income$31.6 $49.6 (36)%
Diluted Net Income Per Share$0.64 $1.03 (38)%
Non-GAAP: (1)
Adjusted EBITDA$78.6 $12.6 524 %
Net Income$63.1 $4.5 1302 %
Diluted Net Income per Share$1.28 $0.09 1322 %
_________________________
(1)See reconciliations of all non-GAAP to GAAP measures presented in this release in the tables below.







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Third Quarter and Full Year 2021 Outlook
($ in millions except per share amounts)3Q 2021Full Year 2021
Wealth Management Revenue$158.5 - $162.5$631.5 - $649.5
Tax Software Revenue$5.0 - $5.5$223.5 - $226.5
Total Revenue$163.5 - $168.0$855.0 - $876.0
Wealth Management Segment Operating Income$16.5 - $18.0$79.0 - $83.5
Tax Software Segment Operating Income($15.5) - ($15.0)$80.0 - $82.0
Unallocated Corporate-Level General and Administrative Expenses$7.5 - $7.0$27.5 - $26.5
GAAP:
Net Income (loss)($34.0) - $(30.5)($8.5) - $1.0
Net Income (loss) per diluted share($0.69) - ($0.62)($0.17) - $0.02
Non-GAAP:
Adjusted EBITDA (1)($6.5) - ($4.0)$131.5 - $139.0
Non-GAAP Net Income (loss) (1)($19.0) - ($16.0)$76.0 - $84.5
Non-GAAP Net Income (loss) per diluted share (1)($0.39) - ($0.33)$1.52 - $1.70
____________________________

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


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 full year 2021, its tax season update, 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 empowers 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 $88 billion in total client assets as of June 30, 2021 and (ii) tax software, through its TaxAct business, a market leader in tax software with approximately 3 million consumer 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 and Section 21E of the Securities Exchange Act of 1934. 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” 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: the impact of the coronavirus 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 relief; 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 financial professionals, qualified employees, clients, and customers, as well as our ability to provide strong customer/client service; 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

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businesses, and the potential impact of such acquisitions on our existing indebtedness and leverage; our ability to fulfill the closing conditions to, and consummate, the acquisition of Headquarters Advisory Group; our ability to retain employees and acquired client assets following such acquisition; 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; 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; risks associated with legal proceedings, including litigation and regulatory proceedings; our ability to manage leadership and employee transitions, including costs and time burdens on management and our board of directors related thereto; political and economic conditions and events that directly or indirectly impact the wealth management and tax 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; the compromising of confidentiality, availability or integrity of information, including cyberattacks; 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.

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Blucora, Inc.
Condensed Consolidated Statements of Operations
(Unaudited) (Amounts in thousands, except per share data)
 Three months ended
June 30,
Six months ended
June 30,
 2021202020212020
Revenues:
Wealth management services revenue$162,395 $115,884 $316,886 $260,873 
Tax software services revenue91,917 45,238 215,809 163,569 
Total revenue254,312 161,122 532,695 424,442 
Operating expenses:
Cost of revenue:
Wealth management services cost of revenue113,910 83,868 222,533 186,210 
Tax software services cost of revenue4,429 3,054 10,007 7,067 
Total cost of revenue118,339 86,922 232,540 193,277 
Engineering and technology7,231 7,377 14,359 15,892 
Sales and marketing34,848 40,057 112,410 119,767 
General and administrative23,832 20,200 48,517 44,928 
Acquisition and integration18,169 2,824 26,272 8,506 
Depreciation3,204 1,675 5,504 3,471 
Amortization of other acquired intangible assets7,063 6,673 14,238 14,421 
Impairment of goodwill— — — 270,625 
Total operating expenses212,686 165,728 453,840 670,887 
Operating income (loss)41,626 (4,606)78,855 (246,445)
Other loss, net (1)
(8,024)(5,288)(15,907)(11,423)
Income (loss) before income taxes33,602 (9,894)62,948 (257,868)
Income tax benefit (expense)(1,994)59,539 (3,694)(7,981)
Net income (loss)$31,608 $49,645 $59,254 $(265,849)
Net income (loss) per share:
Basic$0.65 $1.04 $1.22 $(5.55)
Diluted$0.64 $1.03 $1.20 $(5.55)
Weighted average shares outstanding:
Basic48,508 47,941 48,384 47,884 
Diluted49,385 48,092 49,241 47,884 
_________________________
(1)Other loss, net consisted of the following (in thousands):
Three months ended
June 30,
Six months ended
June 30,
2021202020212020
Interest expense$7,302 $4,840 $14,485 $10,156 
Amortization of debt issuance costs377 331 740 644 
Accretion of debt discounts284 70 561 138 
Total interest expense7,963 5,241 15,786 10,938 
Interest income— (11)(2)(25)
Other61 58 123 510 
Other loss, net$8,024 $5,288 $15,907 $11,423 




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Blucora, Inc.
Condensed Consolidated Balance Sheets
(Unaudited) (Amounts in thousands)
June 30,
2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents$232,409 $150,125 
Cash segregated under federal or other regulations591 637 
Accounts receivable, net of allowance18,784 12,736 
Commissions and advisory fees receivable26,662 26,132 
Other receivables1,045 717 
Prepaid expenses and other current assets, net13,972 10,321 
Total current assets293,463 200,668 
Long-term assets:
Property and equipment, net65,004 58,500 
Right-of-use assets, net21,245 23,455 
Goodwill, net454,821 454,821 
Other intangible assets, net308,743 322,179 
Other long-term assets13,613 4,569 
Total long-term assets863,426 863,524 
Total assets$1,156,889 $1,064,192 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$10,164 $9,290 
Commissions and advisory fees payable19,170 19,021 
Accrued expenses and other current liabilities80,359 56,419 
Deferred revenue—current5,084 12,298 
Lease liabilities—current3,768 2,304 
Current portion of long-term debt, net1,788 1,784 
Total current liabilities120,333 101,116 
Long-term liabilities:
Long-term debt, net552,828 552,553 
Deferred tax liability, net29,700 30,663 
Deferred revenue—long-term5,784 6,247 
Lease liabilities—long-term34,765 36,404 
Other long-term liabilities30,972 24,919 
Total long-term liabilities654,049 650,786 
Total liabilities774,382 751,902 
Stockholders’ equity:
Common stock, par $0.0001—900,000 authorized shares; 49,962 shares issued and 48,656 shares outstanding at June 30, 2021; 49,483 shares issued and 48,177 shares outstanding at December 31, 2020
Additional paid-in capital1,609,193 1,598,230 
Accumulated deficit(1,198,292)(1,257,546)
Treasury stock, at cost—1,306 shares at June 30, 2021 and December 31, 2020(28,399)(28,399)
Total stockholders’ equity382,507 312,290 
Total liabilities and stockholders’ equity$1,156,889 $1,064,192 


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Blucora, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited) (Amounts in thousands)
 Six months ended June 30,
 20212020
Operating activities:
Net income (loss)$59,254 $(265,849)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Stock-based compensation10,770 2,703 
Depreciation and amortization of acquired intangible assets21,583 19,253 
Impairment of goodwill— 270,625 
Reduction of right-of-use lease assets1,420 3,196 
Deferred income taxes(963)8,784 
Amortization of debt issuance costs740 644 
Accretion of debt discounts561 138 
Change in fair value of acquisition-related contingent consideration17,800 — 
Accretion of lease liability1,046 901 
Other481 670 
Cash provided (used) by changes in operating assets and liabilities:
Accounts receivable(5,948)184 
Commissions and advisory fees receivable(530)5,586 
Other receivables(406)(2,809)
Prepaid expenses and other current assets(3,651)1,435 
Other long-term assets(9,239)3,162 
Accounts payable874 2,942 
Commissions and advisory fees payable149 (5,210)
Lease liabilities(431)(2,572)
Deferred revenue(7,677)(8,299)
Accrued expenses and other current and long-term liabilities11,438 (1,110)
Net cash provided by operating activities97,271 34,374 
Investing activities:
Purchases of property and equipment(13,544)(19,072)
Asset acquisitions(881)— 
Net cash used by investing activities(14,425)(19,072)
Financing activities:
Proceeds from credit facilities, net of debt issuance costs and debt discounts(502)55,000 
Payments on credit facilities(906)(65,625)
Proceeds from stock option exercises284 25 
Proceeds from issuance of stock through employee stock purchase plan1,845 1,201 
Tax payments from shares withheld for equity awards(1,329)(1,006)
Net cash used by financing activities(608)(10,405)
Net increase in cash, cash equivalents, and restricted cash82,238 4,897 
Cash, cash equivalents, and restricted cash, beginning of period150,762 86,450 
Cash, cash equivalents, and restricted cash, end of period$233,000 $91,347 













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Blucora, Inc.
Segment Information
(Unaudited) (Amounts in thousands)
Three months ended
June 30,
Six months ended
June 30,
2021202020212020
Revenue:
Wealth Management (1)
$162,395 $115,884 $316,886 $260,873 
Tax Software (1)
91,917 45,238 215,809 163,569 
Total revenue254,312 161,122 532,695 424,442 
Operating income (loss):
Wealth Management21,396 11,731 40,792 34,329 
Tax Software63,448 6,659 114,336 44,412 
Corporate-level activity (2)
(43,218)(22,996)(76,273)(325,186)
Total operating income (loss)41,626 (4,606)78,855 (246,445)
Other loss, net(8,024)(5,288)(15,907)(11,423)
Income (loss) before income taxes33,602 (9,894)62,948 (257,868)
Income tax benefit (expense)(1,994)59,539 (3,694)(7,981)
Net income (loss)$31,608 $49,645 $59,254 $(265,849)
_________________________
(1)Revenues by major category within each segment are presented below (in thousands):
Three months ended
June 30,
Six months ended
June 30,
2021202020212020
Wealth Management:
Advisory$96,508 $66,303 $187,627 $145,060 
Commission51,702 39,836 104,236 90,416 
Asset-based5,526 3,981 10,855 14,560 
Transaction and fee8,659 5,764 14,168 10,837 
Total Wealth Management revenue$162,395 $115,884 $316,886 $260,873 
Tax Software:
Consumer$88,846 $44,421 $199,413 $148,242 
Professional3,071 817 16,396 15,327 
Total Tax Software revenue$91,917 $45,238 $215,809 $163,569 

(2) Corporate-level activity included the following (in thousands):
Three months ended
June 30,
Six months ended
June 30,
 2021202020212020
Unallocated corporate-level general and administrative expenses$6,259 $5,810 $11,953 $12,826 
Stock-based compensation5,160 3,904 10,770 2,703 
Acquisition and integration costs18,169 2,824 26,272 8,506 
Depreciation4,102 2,412 7,345 4,832 
Amortization of acquired intangible assets7,063 6,673 14,238 14,421 
Impairment of goodwill— — — 270,625 
Executive transition costs— 636 — 9,820 
Headquarters relocation costs— 737 — 1,453 
Contested proxy and other legal and consulting costs2,465 — 5,695 — 
Total corporate-level activity$43,218 $22,996 $76,273 $325,186 


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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
June 30,
Six months ended
June 30,
 2021202020212020
Net income (loss) (2)
$31,608 $49,645 $59,254 $(265,849)
Stock-based compensation5,160 3,904 10,770 2,703 
Depreciation and amortization of acquired intangible assets11,165 9,085 21,583 19,253 
Other loss, net8,024 5,288 15,907 11,423 
Acquisition and integration—Excl. Change in fair value of acquisition-related contingent consideration6,669 2,824 8,472 8,506 
Acquisition and integration—Change in fair value of acquisition-related contingent consideration11,500 — 17,800 — 
Impairment of goodwill— — — 270,625 
Executive transition costs— 636 — 9,820 
Headquarter relocation costs— 737 — 1,453 
Contested proxy and other legal and consulting costs2,465 — 5,695 — 
Income tax (benefit) expense1,994 (59,539)3,694 7,981 
Adjusted EBITDA (1)
$78,585 $12,580 $143,175 $65,915 


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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,
 2021202020212020
Net income (loss) (2)
$31,608 $49,645 $59,254 $(265,849)
Stock-based compensation5,160 3,904 10,770 2,703 
Amortization of acquired intangible assets7,063 6,673 14,238 14,421 
Acquisition and integration—Excluding change in fair value of HKFS Contingent Consideration6,669 2,824 8,472 8,506 
Acquisition and integration—Change in fair value of HKFS Contingent Consideration11,500 — 17,800 — 
Impairment of goodwill— — — 270,625 
Executive transition costs— 636 — 9,820 
Headquarters relocation costs— 737 — 1,453 
Contested proxy and other legal and consulting costs2,465 — 5,695 — 
Cash tax impact of adjustments to GAAP net income(649)(259)(1,192)(995)
Non-cash income tax (benefit) expense(694)(59,697)(963)7,340 
Non-GAAP net income$63,122 $4,463 $114,074 $48,024 
Per diluted share:
Net income (loss) (2) (3)
$0.64 $1.03 $1.20 $(5.52)
Stock-based compensation0.10 0.08 0.22 0.06 
Amortization of acquired intangible assets0.14 0.14 0.29 0.30 
Acquisition and integration—Excluding change in fair value of HKFS Contingent Consideration0.14 0.06 0.17 0.18 
Acquisition and integration—Change in fair value of HKFS Contingent Consideration0.23 — 0.36 — 
Impairment of goodwill— — — 5.62 
Executive transition costs— 0.01 — 0.20 
Headquarters relocation costs— 0.02 — 0.03 
Contested proxy and other legal and consulting costs0.05 — 0.12 — 
Cash tax impact of adjustments to GAAP net income(0.01)(0.01)(0.02)(0.02)
Non-cash income tax (benefit) expense(0.01)(1.24)(0.02)0.15 
Non-GAAP net income per share$1.28 $0.09 $2.32 $1.00 
Weighted average shares outstanding used in computing per diluted share amounts49,385 48,092 49,241 48,172 


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

 Ranges for the three months endingRanges for the year ending
September 30, 2021December 31, 2021
LowHighLowHigh
Net income (loss)$(34,000)$(30,500)$(8,500)$1,000 
Stock-based compensation5,400 5,200 21,700 21,300 
Depreciation and amortization of acquired intangible assets12,200 12,000 46,100 45,600 
Other loss, net8,400 8,000 32,600 31,900 
Acquisition, integration, and contested proxy and other legal and consulting costs (4)
3,100 2,800 38,100 37,400 
Income tax expense(1,600)(1,500)1,500 1,800 
Adjusted EBITDA$(6,500)$(4,000)$131,500 $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 three months endingRanges for the year ending
September 30, 2021December 31, 2021
LowHighLowHigh
Net income (loss)$(34,000)$(30,500)$(8,500)$1,000 
Stock-based compensation5,400 5,200 21,700 21,300 
Amortization of acquired intangible assets7,000 7,000 28,300 28,200 
Acquisition, integration, and contested proxy and other legal and consulting costs (4)
3,100 2,800 38,100 37,400 
Cash tax impact of adjustments to net loss(500)(400)(2,200)(2,000)
Non-cash income tax benefit— (100)(1,400)(1,400)
Non-GAAP net income$(19,000)$(16,000)$76,000 $84,500 
Per diluted share:
Net income (loss) (3)
$(0.69)$(0.62)$(0.17)$0.02 
Stock-based compensation0.11 0.11 0.43 0.43 
Amortization of acquired intangible assets0.14 0.13 0.57 0.57 
Acquisition, integration, and contested proxy and other legal and consulting costs (4)
0.06 0.06 0.76 0.75 
Cash tax impact of adjustments to net loss(0.01)(0.01)(0.04)(0.04)
Non-cash income tax benefit— — (0.03)(0.03)
Non-GAAP net income per share$(0.39)$(0.33)$1.52 $1.70 
Weighted average shares outstanding used in computing per diluted share amounts49,100 49,000 50,000 49,800 


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Notes to Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measure
(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 benefit (expense). Other loss, net primarily constitutes our interest expense, net of interest income. Acquisition and integration costs primarily relate to the acquisition of HKFS and the acquisition of 1st Global, including the increase to the contingent liability reserve related to a regulatory inquiry assumed in the acquisition of 1st Global. 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 as net income (loss), determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets, acquisition and integration costs, impairment of goodwill, executive transition costs, headquarters relocation costs, contested proxy and other legal and consulting costs, 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 either be utilized or expire between 2021 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 (loss) and net income (loss) 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 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.

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