Bellevue-based Blucora, which operates online retailing sites, search engines and the TaxACT tax preparation service, reported its second-quarter earnings today, posting a 16 percent year-over-year decline in revenue to $119 million, but beating analyst expectations for the quarter.
The company still largely relies on search and content revenue, but that revenue is falling. However, revenues from both its tax preparation and e-commerce platforms are growing and its 48 cents earnings per share beat analyst expectations by six cents.
Blucora, formerly known as InfoSpace, saw a 17 percent rise in revenue from the TaxACT service it acquired in 2012. TaxACT also brought in the majority of the income for Blucora, resulting in $19.9 million of the company’s $25 million EBITDA.
“For the first half of 2015, we are pleased with TaxACT’s revenue and segment income results, reflecting strong performance in a competitive season,” Blucora CEO Bill Ruckelshaus said in a press release.
Search sites run by Blucora continue to see revenues slipping. Year-over-year, the segment dipped 35 percent to $52 million in revenue. The company’s e-commerce efforts are growing slightly, up 2 percent year-over-year.
“Pressures in our Search and Content segment are contributing to overall declines year-on-year,” Ruckelshaus said. “We remain focused on operating our businesses with discipline, managing expenses and allocating capital wisely during this period of transition.”
Shares of Blucora, up 11 percent on the year, fell 12 cents today to $15.48. The company is valued at $636 million.
