H&r Block, Inc. · NYSE:HRB
H&r Block — FY2024 Earnings Presentation
23 slides from H&r Block's earnings presentation, Aug 15, 2024
Slide 1: FY24 Financial Results Conference Call
H&@RBLOCK — FY24 Financial Results Conference Call FY24 Financial Results Conference Call August 15, 2024
Slide 2: Michaella Gallina, VP Investor Relations & ESG
H&@RBLOCK — FY24 Financial Results Conference Call Michaella Gallina VP, Investor Relations & ESG CFO, Wave
Slide 3: Safe Harbor Statement: Forward-Looking Statement
H&R BLOCK FY24 Financial Results Conference Call 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
Slide 4: Safe Harbor Statement: Non-GAAP Measures
H&R BLOCK FY24 Financial Results Conference Call 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), free cash flow, and
Slide 5: Jeff Jones, President & Chief Executive Officer
H&@RBLOCK — FY24 Financial Results Conference Call Jeff Jones President & Chief Executive Officer
Slide 6: FY24 Results
H&RBLOCK —FY24 Financial Results Conference Call FY24 Results Another year of revenue growth, EBITDA that grows even faster, and double-digit EPS growth. New share repurchase authorization of $1.5B All share amounts are from continuing operations and based on weighted average fully diluted shares ov
Slide 7: Block Horizons
H&RBLOCK —_FY24 Financial Results Conference Call Block Horizons
Slide 8: Small Business: Continue to see opportunity ahead
H&RBLOCK — FY24 Financ’ 2 Call Small Business Continue to see opportunity ahead Advisors @ ef wave YoY through June 30: YoY through June 30: Revenue growth in * Recently launched a new the mid-single digits paid subscription and paid +3% NAC increase receipt product = Monetization trends better Enti
Slide 9: Financial Products: Spruce mobile banking platform
H&RBLOCK —_FY24 Financial Results Conference Call Financial Products Spruce: H&R Block’s mobile banking platform Nearing Nearly 50% of Saving deposits in FY24 1 B were non-tax in customer July deposits deposits increased 60% YoY Extra Savings > so ® roundup > 08 OF Note: Banking accounts established
Slide 10: Block Experience: Blending digital tools with human expertise
H&@RBLOCK —FY24 Financi call Block Experience Blending digital tools with human expertise and care DIY = @ Assisted [] Our strategy continues to deliver: NAC growth Meaningful growth in paid clients and NAC 11% revenue growth Al Tax Assist performed well Improved CSAT scores Success in attracting an
Slide 11: Management Transition: Tony Bowen retirement
H&R BLOCK FY24 Financial Results Conference Call Management Transition As shared in Q2, CFO.Tony.Bowen made the personal decision to retire on September.13. Thank you, Tony Under his leadership as CFO: = Returned >$3.9B to shareholders " Retired >40% of shares outstanding = Increased the dividend by
Slide 12: Management Transition: Tiffany Mason joins as CFO
H&R BLOCK FY24 Financial Results Conference Call Management Transition diffany. Mason joined H&R Block as EVP, Finance and will become,CEO.on, September.13 Welcome, Tiffany * Proven track record of financial leadership in consumer services, retail, and franchising Most recently served as EVP & CFO a
Slide 13: Management Transition: Scott Manuel joins
H@R BLOCK FY24 Financial Results Conference Call Management Transition Scott Manuel joined H&R Block as Chief Strategy and Operations Officer Welcome, Scott = Overseeing functions essential to driving our long-term enterprise strategy and improving our execution = Track record of delivering customer
Slide 14: Tony Bowen, Chief Financial Officer
H&RBLOCK —_FY24 Financial Results Conference Call Tony Bowen Chief Financial Officer
Slide 15: FY24 Financial Results
H&RBLOCK —FY24 Financial Results Conference Call FY24 Financial Results In milions, except per share amounts ohne 30,2054 rjune 86,2023. Change FY24 FY23 Revenue $3,610.3 $3,472.2 4.0% Operating Expenses $2,805.1 $2,723.5 (3.0%) Interest Expense (8.4%) Pretax Income 7.2% EBITDA’ | go63.2 | 5.3% Earn
Slide 16: Capital Allocation Story Remains Strong
H&RBLOCK —FY24 Financial Results Conference Ca HI Capital Allocation Story Remains Strong Today Announced: 17% increase to our quarterly dividend to $0.375 / share New share repurchase authorization of $1.5B Since 2016: Increased the Repurchased >$2.3B of dividend by 88%’ shares, retired >40% of sha
Slide 17: FY25 Outlook
H&R BLOCK FY24 Financial Results Conference Call FY25 Outlook Assumptions: * Typical industry of ~1% Maintain market share in Revenue $3.69 7 $3.75B overall tax category Low single digit price EBITDA’ $975M - $1.02B increases Wave and Small Business Adjusted EPS! contribute to revenue growth Opportu
Slide 18: —_
H&RBLOCK —_FY24 Financial Results Conference Call
Slide 19: Appendix Section
H&RBLOCK —_FY24 Financial Results Conference Call Appendix Section
Slide 20: Non-GAAP Measure: EBITDA
Non-GAAP Measure: EBITDA The following is a reconciliation of EBITDA, which is a non-GAAP financial measure: (in 000s) Year ended Year ended EBITDA June 30, 2024 June 30, 2023 Net income - as reported $ 595,317 $ 553,700 Discontinued operations, net 2,646 8,100 Net income from continuing operations
Slide 21: 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) Year ended Year ended ADJUSTED EPS June 30, 2024 June 30, 2023 Net income from continuing operations - as reported $ 597,963 $ 561,800 Adjustme
Slide 22: Non-GAAP Measure: Free Cash Flow and Free Cash Flow Yield
Non-GAAP Measure: Free Cash Flow and Free Cash Flow Yield The following is a reconciliation of Free Cash Flow and Free Cash Flow Yield, which are non-GAAP financial measures: (in 000s, except per share amounts) Year ended FREE CASH FLOW YIELD June 30, 2024 Operating cash flow - as reported $ 720,860
Slide 23: H&R Block Operating Statistics
H&R Block Operating Statistics July 1, 2023 - July 1, 2022 - % Change OPERATING STATISTICS June 30, 2024 June 30, 2023 TAX RETURNS PREPARED (U.S. only, in 000s)(1): Company-owned operations 8,805 8,721 1.0 % Franchise operations(2) 2,609 2,847 (8.4)% Total Assisted 11,414 11,568 (1.3)% Desktop 1,786