Blucora Inc (NASDAQ:BCOR) Google Ad Space Deal & FY14 Outlook Drives Stock Down
There were two key market drivers which drove the stock of $815 million market capped internet information provider Blucora Inc (NASDAQ:BCOR) down by close to 8 percent during trading on 21st February. The first was the disappointing result an announcement stemming from its weak forecasts for FY14 during its 4Q13 results announcement and the second was the unfavourable terms of its agreement with search engine major Google disclosed on 21st February.
No More Google Ads On Blucora Inc
First the details of the “Search engine agreement” between Blucora Inc (NASDAQ:BCOR) and Google Inc. The fact that the renewed agreement between the two tech firms did not cover the lucrative and exponentially growing mobile search and mobile user base disappointed the markets. The exclusion of the potentially large user base from the search deal, prompted the investment community to opine that the deal is not attractive enough for Blucora Inc (NASDAQ:BCOR) which largely generates its revenue from offering online search and optimization solutions. The new pact will extend into March 2017. This promoted the price target of the stock being brought down from previously $31 to $25.
4Q13 and Full Year 2013 Highlights
While Blucora Inc (NASDAQ:BCOR) Director, President, Chief Executive Officer William J. Ruckelshaus expressed his happiness to a strong close to the previous fiscal 2013 and has been quoted to have said that, “We are pleased with our results for the fourth quarter and full year. Our businesses participate in large and growing markets and they are well positioned going forward.” Revenue was up 72 percent for the quarter and 41 percent for the full year. EPS for the quarter was up 67 percent while for the full year, Earnings was up 32 percent.
For the 1Q14 operations, Blucora Inc (NASDAQ:BCOR) expects its revenue to come in the range of $213 to $222 million.