H&r Block, Inc. · NYSE:HRB
H&r Block — Q3 2024 Earnings Presentation
22 slides from H&r Block's earnings presentation, May 9, 2024
Slide 1: Q3FY24 Financial Results Conference Call
HaR BLOCK Q3FY24 Financial Results Conference Call May 9, 2024
Slide 2: Michaella Gallina, VP Investor Relations
H&R BLOCK Michaella Gallina VP, Investor Relations, ESG, & Productivity
Slide 3: Safe Harbor Statement: Forward-Looking Statement
H&R BLOCK Safe Harbor Statement Forward-Looking Statement This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include word
Slide 4: Safe Harbor Statement: Non-GAAP Measures
H&R BLOCK | Safe Harbor Statement Non-GAAP Measures We refer to certain Non-GAAP financial measures in this presentation, including adjusted earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA), which management believes provide additional meaningful
Slide 5: Jeff Jones, President & Chief Executive Officer
H&R BLOCK Jeff Jones President & Chief Executive Officer
Slide 6: Q3 Results
H&RBLOCK —Q3FY24 Financial Results Conference Call Q3 Results Q3 results ending March 31, 2024: =" 4% Revenue growth " 6% EBITDA growth = 18% EPS growth ‘y 1 Please see the safe harbor statement at the beginning of this presentation for information on non-GAAP financial measures. A reconciliation of
Slide 7: Ongoing Momentum in DIY
H&RBLOCK — Q3FY24 Financial Resul Its Conference Call Ongoing Momentum in DIY YoY through April 30, DIY Paid Online: Volume: NAC: +6% [eres Significantly outpaced the DIY category, and many of these filers came from TurboTax®
Slide 8: Ongoing Momentum in DIY
H&RBLOCK —Q3FY24 Financial Results Conference Call | Ongoing Momentum in DIY Continued to see DIY clients accessing help New genAl powered Al Tax Assist performed well "Feedback indicated that the tool was easy to use, helpful, and clients found value in it Greater conversion among new clients ‘Year
Slide 9: Assisted Consumer Tax
H&RBLOCK —Q3FY24 Financial Results Conference Call Assisted Consumer Tax CNS ‘Year over year through April 30, 2024. Slowed decline of EITC filers, but still have work to do in lower income segments In total, Assisted volumes declined ~1%' Assisted NAC grew A%', driven by mix shift and modest price
Slide 10: Assisted Consumer Tax
Q3FY24 Financial Results Conference Call ‘Year over year through April 30, 2024. Assisted Consumer Tax Grew the number of Assisted clients who were completely virtual by >25%' GenAl efforts to improve customer experience in call center operations provided great learnings in initial pilot
Slide 11: Block Horizons
H&R BLOCK Block Horizons ce
Slide 12: Small Business
QSFY24 Fin: ancial Resul Its Conference Call Small Business BLOCK Advisors by H&R BLOCK YoY through April 30: NAC increased +3% Outperformed among higher income and entity clients Double-digit increase in bookkeeping and payroll ef wave = +7% revenue growth in Q3 = Monetization better than anticipat
Slide 13: Financial Products: Spruce
H&RBLOCK —Q3FY24 Financial Results Conference Call | Financial Products Spruce: H&R Block’s mobile banking platform Since launch through April 30, 2024: 470K signups Customer deposits have nearly tripled from last year Saving « Among new Spruce®” users who filed a return with HRB, 54% were new clien
Slide 14: Tony Bowen, Chief Financial Officer
H&R BLOCK Tony Bowen Chief Financial Officer
Slide 15: Q3 FY24 Financial Results
HaR BLOCK Q3FY24 Financial Results Conference Call Q3 FY24 Financial Results For the three months ended March 31, 2024 In millions, except per share amounts Q3 FY24 Revenue $2,184.8 Operating Expenses $1,256.6 Interest Expense Pretax Income EBITDA’ Earnings Per Share' Adjusted Earnings Per Share’ $4
Slide 16: FY24 Outlook
H&RBLOCK —Q3FY24 Financial Results Conference Call | FY24 Outlook FY24 Outlook Revenue $3,530 - $3,585M Now expect to finish the year 1 . near the high end of previously EBITDA $930 - $965M provided outlook Adjusted EPS' $4.10 - $4.30 . Now expect ETR to be 21 - 22% compared Effective Tax Rate to 23
Slide 17: Q&A
H&R BLOCK QSFY24 Financial Results Conference Call v7
Slide 18: Appendix
H&RBLOCK —Q3FY24 Financial Results Conference Call Appendix Wa Section
Slide 19: H&R Block Operating Statistics
H&R Block Operating Statistics July 1, 2023 - July 1, 2022 - % Change OPERATING STATISTICS April 30, 2024 April 30, 2023 TAX RETURNS PREPARED (U.S. only, in 000s)(1): Company-owned operations 8,621 8,528 1.1 % Franchise operations(2) 2,542 2,773 (8.3)% Total Assisted 11,163 11,301 (1.2)% Desktop 1,7
Slide 20: H&R Block Tax Offices
H&R Block Tax Offices TAX OFFICES (as of March 31): 2024 2023 U.S. offices: Company-owned offices 6,643 6,582 Franchise offices 2,168 2,367 Total U.S. offices 8,811 8,949 International offices: Canada 952 961 Australia 397 394 Total international offices 1,349 1,355 Tax offices worldwide 10,160 10,3
Slide 21: Non-GAAP Measure: EBITDA
Non-GAAP Measure: EBITDA The following is a reconciliation of EBITDA, which is a non-GAAP financial measure: (in 000s) Three months ended Three months ended EBITDA March 31, 2024 March 31, 2023 Net income - as reported $ 690,737 $ 643,429 Discontinued operations, net 849 2,648 Net income from contin
Slide 22: Non-GAAP Measure: Adjusted EPS
Non-GAAP Measure: Adjusted EPS The following is a reconciliation of Adjusted EPS, which is a non-GAAP financial measure: (in 000s, except per share amounts) Three months ended Three months ended ADJUSTED EPS March 31, 2024 March 31, 2023 Net income from continuing operations - as reported $ 691,586