Slide 1: Blucora to Acquire HD Vest, Announces Strategic Transformation
Exhibit 99.2 Blucora to Acquire HD Vest, Announces Strategic Transformation October 14, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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. Actual results may differ significantly from management's expectations due to various risks and unc
Slide 3: Announcing Strategic Transformation
Announcing Strategic Transformation • Becoming a strategically focused company in the growing financial services and technology market by acquiring HD Vest and divesting Monoprice and InfoSpace • Moving from a collection of less predictable assets to aligned businesses with consistent growth, recurr
Slide 4: Blucora Acquisition of HD Vest
Blucora Acquisition of HD Vest Transformative acquisition that is attractive, synergistic with TaxACT and consistent with our stated strategy • Establishes strategic focus, building around our strongest asset in TaxACT Strategic • Combines largest U.S. tax professional-oriented Independent Broker/De
Slide 5: Strategic Repositioning
Strategic Repositioning Upon this transaction, Blucora will seek to divest InfoSpace and Monoprice and meaningfully reduce corporate expenses • Divest InfoSpace and Monoprice Blucora • Upon divestitures, use sale proceeds to pay down debt Portfolio • Expected timeline to achieve separation is mid-20
Slide 6: HD Vest
HD Vest
Slide 7: Company Overview
Company Overview A leading technology, training and support platform for tax professionals to deliver customized financial solutions to retail investors Revenue Trend CAGR $304.9 10.8% $273.2 32.4 Other 6.8% • Founded in 1983 and $248.3 headquartered in Irving, Texas 29.2 revenue 28.3 retained • Mar
Slide 8: Financial Outlook
Financial Outlook Forward guidance reflects current market conditions and the underlying momentum in the HDV model. HD Vest ($ millions) Long-term 2015 2016 model (1) • Revenue $318-322 $334-344 – % YoY (mid-point) 5% 6% 7-9% • Net revenue $99-101 $105-108 – Financial % YoY 4% 7% 6-9% Metrics • Segm
Slide 9: Differentiated Broker-Dealer Model
Differentiated Broker-Dealer Model Traditional IBDs Developing financial advisors through Advisor client relationship limited to specialized training of tax professionals investments Long-standing tax advisory relationship anchors Advisors bring established book of business investment advisory busin
Slide 10: Topline Performance and Recurring Revenue
Topline Performance and Recurring Revenue • Business model generates Revenue Trend CAGR high recurring revenue $ Millions $304.9 10.8% and strong visibility • 77% recurring revenue in $273.2 68.9 Other 3.5% 2014, (fee-based, trails $248.3 and sweep income) 68.3 • Multiple levers for future 64.3 orga
Slide 11: Growth in Advisory AUM
Growth in Advisory AUM • Fee-based advisory AUM Fee-Based Advisory AUM CAGR is a key growth driver $ Billions at year end $9.6 18.8% • 2014 net inflows totaled approximately 11% of $8.4 prior year-end advisory AUM $6.8 • Since 2012, advisory AUM share of total client 25.7% assets has grown by over 2
Slide 12: Balanced Sensitivity to Market Movements
Balanced Sensitivity to Market Movements • Eliminating equity market impact to AUM shows steady Market Neutral organic growth in a market neutral environment: Growth – Consistent net asset inflows and the AUM shift to fee-based advisory are the primary drivers of growth • We estimate a 20% decrease
Slide 13: Blucora Transformation
Blucora Transformation
Slide 14: Compelling Combination
Compelling Combination + = Leading provider of Leading brokerage and • Industry-leading internet-enabled tax technology platform for tax franchise across the tax Well solutions professionals advisors preparation and financial Established • Has enabled filing of 46M • 4,500+ advisors in all 50 states
Slide 15: Positioned Favorably Against Converging Trends
Positioned Favorably Against Converging Trends Technology Enabled Business Models Reshaping Financial Services • Mass-market is embracing the convergence of technology enabled financial services and personal advice • “Do it yourself” and “Do it for me” models both must be powered by scaled technolog
Slide 16: Substantial Synergy Opportunities, Expanded Addressable Markets
Substantial Synergy Opportunities, Expanded Addressable Markets Synergies will produce $5 million in EBITDA by 2017 Tax Software for Investment and Individuals Retirement and wealth management Advisory Platform for and Tax Professionals solutions tailored to TaxACT customers Tax Professionals Additi
Slide 17: The New Blucora
The New Blucora (1) Pro Forma 2015E • Focused company with leading assets in the financial services and technology space • Revenue: $436.8M • Growing businesses, 9.6% 2015E 3-year Revenue CAGR • Segment Income: $ 98.5M • Experienced HD Vest and TaxAct management team with key operating expertise • A
Slide 18: Core Financial Technology and Services Financial Profile
Core Financial Technology and Services Financial Profile Pro Forma Revenue Pro Forma Segment Income Pro Forma Adj. EBITDA & Unlevered $ Millions $ Millions FCF (1) $ Millions CAGR $437 9.6% $409 $364 CAGR $331 CAGR 16.1% $99 19.4% 13.6% 320 8.8% $90 305 $87 $78 $81 273 $74 43 13.5% $70 248 $67 40 $6
Slide 19: Recap-Strategic Transformation
Recap-Strategic Transformation • Becoming a strategicallyfocused company in the growing financial services and technology market by acquiring HD Vest and divesting Monoprice and InfoSpace • Moving from a collection of less predictableassets to aligned businesses with consistent growth, recurring rev
Slide 20: Thank You
Thank You
Slide 21: Pro Forma Non-GAAP Reconciliation
Pro Forma Non-GAAP Reconciliation BLUCORA, INC. Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measure Segment Income / Adjusted EBITDA / Unlevered Free Cash Flow Reconciliation (Unaudited) (Amounts in thousands) 2012 2013 2014 2015 Estimate (1) - (3) GAAP ProForma Net