H & R Block Inc (HRB) 2023 Q2 法說會逐字稿

Thank you for standing by, and welcome to H&R Block's Second Quarter Fiscal Year 2023 Earnings Call. (Operator Instructions) I would now like to hand the call over to Vice President, Investor Relations, Michaella Gallina. Please go ahead.

感謝您的支持，歡迎來到 H&R Block 的 2023 財年第二季度財報電話會議。 （操作員說明）我現在想將電話轉交給投資者關係副總裁 Michaella Gallina。請繼續。

Thank you, Latif. Good afternoon, everyone, and welcome to H&R Block's Second Quarter Fiscal 2023 Financial Results Conference Call.

謝謝你，拉蒂夫。大家下午好，歡迎來到 H&R Block 的 2023 財年第二季度財務業績電話會議。

Joining me today are Jeff Jones, our President and Chief Executive Officer; and Tony Bowen, our Chief Financial Officer.

今天加入我的是我們的總裁兼首席執行官 Jeff Jones；和我們的首席財務官 Tony Bowen。

Earlier today, we issued a press release and presentation, which can be downloaded or viewed live on our website at investors.hrblock.com. Our call is being broadcast and webcast live, and a replay of the webcast will be available for 90 days.

今天早些時候，我們發布了一份新聞稿和演示文稿，可以下載或在我們的網站 investors.hrblock.com 上實時查看。我們的電話會議正在現場直播和網絡直播，網絡直播的重播將持續 90 天。

Before we begin, I'd like to remind listeners that comments made by management may include forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties and actual results could differ from those projected in any forward-looking statement due to numerous factors. For a description of these risks and uncertainties, please see H&R Block's annual report on Form 10-K and quarterly reports on Form 10-Q as updated periodically with our other SEC filings.

在我們開始之前，我想提醒聽眾，管理層發表的評論可能包括聯邦證券法意義上的前瞻性陳述。這些陳述涉及重大風險和不確定性，實際結果可能因多種因素而與任何前瞻性陳述中預測的結果不同。有關這些風險和不確定性的描述，請參閱 H&R Block 關於 10-K 表格的年度報告和關於 10-Q 表格的季度報告，這些報告會定期與我們提交給美國證券交易委員會的其他文件一起更新。

Please note, some metrics we'll discuss today are presented on a non-GAAP basis. We reconciled the comparable GAAP and non-GAAP figures in the appendix of our presentation.

請注意，我們今天討論的一些指標是在非 GAAP 基礎上提出的。我們在演示文稿的附錄中調整了可比較的 GAAP 和非 GAAP 數據。

Finally, the content of this call contains time-sensitive information accurate only as of today, February 7, 2023. H&R Block undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call.

最後，本次電話會議的內容包含僅截至 2023 年 2 月 7 日今天才准確的時效信息。H&R Block 不承擔修改或以其他方式更新任何聲明以反映本次電話會議日期之後發生的事件或情況的義務。

With that, I will now turn it over to Jeff.

有了這個，我現在將把它交給傑夫。

Thank you, Michaella. Good afternoon, everyone, and thanks for joining us.

謝謝你，邁克爾。大家下午好，感謝您加入我們。

Today, I will begin with a summary of our Q2 results, progress on Block Horizons, and the momentum we have entering the tax season. Then Tony will provide details on our financial performance and we'll open it up for Q&A.

今天，我將首先總結我們的第二季度業績、Block Horizons 的進展以及我們進入稅收季節的勢頭。然後 Tony 將提供有關我們財務業績的詳細信息，我們將公開進行問答。

Second quarter results met expectations, and we've performed well in the first half of fiscal 2023. I feel confident about our positioning as we move into tax season and the third quarter, and I'm pleased to reaffirm our full year guidance.

第二季度業績符合預期，我們在 2023 財年上半年表現良好。隨著我們進入報稅季和第三季度，我對我們的定位充滿信心，我很高興重申我們的全年指引。

In the second quarter, revenue grew 5% to last year on continued business momentum and a strong ending to the 2022 tax season. We are seeing signs that consumers are feeling more pressure this year versus last year given the rollback of government stimulus and the broader inflationary environment. As a result, clients turned to H&R Block in Q2 to bridge the gap in their time of need, and we saw higher demand for our Emerald Advance product in December, which we view as a good leading indicator for tax season.

第二季度，由於持續的業務發展勢頭和 2022 年稅收季節的強勁結束，收入比去年增長了 5%。我們看到有跡象表明，鑑於政府刺激措施的取消和更廣泛的通脹環境，消費者今年比去年感受到更大的壓力。因此，客戶在第二季度轉向 H&R Block 以彌補他們的需求時間缺口，我們在 12 月看到對 Emerald Advance 產品的更高需求，我們認為這是稅收季節的一個很好的領先指標。

On the expense front, we managed well despite the macro environment, and our capital allocation practice remains solid as we repurchased another 2% of shares outstanding in the quarter.

在費用方面，儘管宏觀環境不佳，但我們的管理仍然良好，我們的資本配置實踐依然穩健，因為我們在本季度回購了另外 2% 的已發行股票。

Turning to Block Horizons. I continue to be pleased with the progress we're making. Starting with small business, revenue growth was strong as a result of the extended filing season and our bold marketing of the up to 30% price advantage we provide over CPAs. As we've talked about, we're also building out our year-round services for bookkeeping and payroll, and we're seeing positive adoption signals on these products.

轉向 Block Horizons。我仍然對我們取得的進展感到高興。從小企業開始，由於申請季的延長以及我們大膽宣傳我們提供的比 CPA 高達 30% 的價格優勢，收入增長強勁。正如我們所談到的，我們還在為簿記和工資單構建我們的全年服務，並且我們看到了這些產品的積極採用信號。

We're also feeling good about the value our new business formation tool is offering clients. There are often tax and legal benefits to small business owners from being incorporated, and we built this product with a partner to answer this clear need with the added benefit of being a revenue driver to Block. It also provides an opportunity to increase tax prep revenue if we file both a personal and business return the following tax year.

我們也對我們的新業務形成工具為客戶提供的價值感到滿意。成立公司通常會給小企業主帶來稅收和法律上的好處，我們與合作夥伴一起開發了這個產品來滿足這一明確的需求，並增加了成為 Block 收入驅動力的好處。如果我們在下一個納稅年度同時提交個人和企業申報表，它還提供了增加稅收準備收入的機會。

Another way we're moving this segment forward is increasing training and certification levels. Half of our small business tax pros have achieved the advanced level, which focuses on levers to directly drive customer and revenue growth to 13 hours of additional training. In all, I'm very happy with the results we're producing in small business.

我們推動這一細分市場向前發展的另一種方式是提高培訓和認證水平。我們一半的小企業稅務專家已達到高級水平，該水平側重於直接推動客戶和收入增長的槓桿到 13 小時的額外培訓。總而言之，我對我們在小型企業中取得的成果感到非常滿意。

The second component of our small business imperative is Wave, which is a one-stop money management platform for small business owners, offering invoicing, payments, accounting, banking, payroll and advisory services. For the quarter, revenue growth was 13%. Our main focus is accelerating revenue growth and determining the ways we'll drive long-term profitability.

我們小企業的第二個組成部分是 Wave，這是一個為小企業主提供的一站式資金管理平台，提供發票、支付、會計、銀行、工資單和諮詢服務。本季度，收入增長率為 13%。我們的主要重點是加速收入增長和確定推動長期盈利能力的方式。

Moving to financial products. We were pleased to roll out Spruce in the assisted channel via all company and franchise offices in January. We knew that educating our tax pros on the clear and different value propositions of Spruce and the Emerald Card would be critical to the success of both products. As such, we had a dedicated training and feel good about the readiness of our field and how we're informing our clients. The goal for Spruce this season is to educate clients on its value, generate sign-ups and ideally have all or a portion of the tax refund deposited as an initial step. The next steps are about ensuring that once an account is open, clients are engaging with the platform, setting up direct deposit and using Spruce for their day-to-day purchases.

轉向金融產品。我們很高興在 1 月份通過所有公司和特許經營辦事處在輔助渠道中推出 Spruce。我們知道，讓我們的稅務專家了解 Spruce 和 Emerald Card 明確且不同的價值主張對於這兩種產品的成功至關重要。因此，我們接受了專門的培訓，並對我們領域的準備情況以及我們如何通知客戶感到滿意。 Spruce 本季的目標是讓客戶了解其價值、促成註冊並理想情況下將全部或部分退稅作為第一步存入。接下來的步驟是確保一旦開設賬戶，客戶就可以使用該平台，設置直接存款並使用 Spruce 進行日常購買。

In just the first few weeks, Spruce is living its purpose of helping our clients to be good with money and enabling them to grow in their own personal financial confidence. In fact, our very first Spruce sign-up in the assisted channel came from a long-standing H&R Block client who came to her appointment with an interest in Spruce because she had seen our marketing beforehand. This client had historically deposited her refund at another bank, but after learning about Spruce's specific value proposition and features such as low fees, the ability to easily deposit cash at retail locations, the fee-free ATM locator in the mobile app and FDIC backing, she chose to put her refund balance on Spruce.

在最初的幾週內，Spruce 實現了幫助我們的客戶善用金錢並使他們能夠增強個人財務信心的目標。事實上，我們在輔助渠道中的第一個 Spruce 註冊來自一位長期合作的 H&R Block 客戶，她來預約時對 Spruce 很感興趣，因為她事先看過我們的營銷。該客戶過去曾將她的退款存入另一家銀行，但在了解了 Spruce 的具體價值主張和特點（例如低費用、在零售點輕鬆存入現金的能力、移動應用程序中的免費 ATM 定位器和 FDIC 支持）後，她選擇將退款餘額放在 Spruce 上。

At the same time, we're continuing to innovate the platform. Importantly, we're making it easier for clients to convert their payroll to Spruce. They will soon be able to set up direct deposit electronically from within the app, skipping the manual forms and phone calls to HR. Building on our learnings from the DIY launch last year, our marketing approach for Spruce was strategically planned for before, during and after the tax event. As of December 31, we had 171,000 Spruce sign-ups and $117 million in customer deposits. Given the initial launch in the Assisted channel, we look forward to updating you on the trends and learnings after tax season.

與此同時，我們也在繼續創新平台。重要的是，我們正在讓客戶更輕鬆地將他們的工資單轉換為 Spruce。他們很快將能夠在應用程序內以電子方式設置直接存款，跳過手動表格和給人力資源部的電話。基於我們從去年推出的 DIY 中吸取的教訓，我們針對 Spruce 的營銷方法在稅務事件之前、期間和之後進行了戰略規劃。截至 12 月 31 日，我們有 171,000 名 Spruce 註冊用戶和 1.17 億美元的客戶存款。鑑於輔助頻道的首次發布，我們期待在稅收季節後向您更新趨勢和知識。

Turning to Block experience. We are blending technology with human expertise, and we continue to make great progress. This imperative underpins many of the ways we will win in both Assisted and DIY and our go-to-market strategy reflects these advancements this year. Let me share more about it and why we feel confident in our ability to execute this season, which just began with e-file opening on January 23.

轉向塊體驗。我們正在將技術與人類專業知識相結合，並繼續取得長足進步。這一當務之急是我們將在輔助和 DIY 領域獲勝的許多方式的基礎，我們的上市戰略反映了今年的這些進步。讓我分享更多相關信息，以及為什麼我們對本賽季的執行能力充滿信心，本賽季剛剛從 1 月 23 日電子文件開放開始。

I'll start with the Assisted channel. We are leveraging our technology to empower clients to choose how they want to be served, fully virtual or fully in-person and everything in between. You'll recall that last season, we increased the use of virtual tools by more than 3x, and we are continuing to make progress on client adoption.

我將從輔助頻道開始。我們正在利用我們的技術使客戶能夠選擇他們想要的服務方式，完全虛擬或完全面對面以及介於兩者之間的一切。您會記得上一季，我們將虛擬工具的使用增加了 3 倍以上，並且我們在客戶採用方面繼續取得進展。

We are also improving the operational efficiencies within our innovative fulfillment network. You'll recall, we piloted this last year and are further rolling it out this season. The network benefits our clients by allowing them to more quickly access tax professionals who have capacity and increases our productivity.

我們還在提高創新履行網絡的運營效率。你會記得，我們去年試行了這個，本賽季將進一步推廣。該網絡使我們的客戶能夠更快地接觸到有能力並提高我們生產力的稅務專業人士，從而使他們受益。

While the employment market is currently a challenge for many companies, we have successfully met our hiring and staffing goals. Our tax pros tell us that they return to H&R Block year after year because of our culture. They build strong relationships with their clients and teams, and are passionate about helping people. In addition, we hear positive feedback about the flexibility we offer related to scheduling and remote work.

雖然就業市場目前對許多公司來說都是一個挑戰，但我們已經成功地實現了我們的招聘和人員配置目標。我們的稅務專家告訴我們，由於我們的文化，他們年復一年地回到 H&R Block。他們與客戶和團隊建立牢固的關係，並熱衷於幫助他人。此外，我們還聽到了關於我們提供的與日程安排和遠程工作相關的靈活性的積極反饋。

In Assisted, we're taking modest price increases this season. Despite inflation being materially higher, we feel that these modest price increases are appropriate as we continue to deliver a great value for price. We've done the work to position ourselves for success, and I'm looking forward to the rest of the season.

在 Assisted 方面，本季我們將適度提價。儘管通貨膨脹率大幅上升，但我們認為這些適度的價格上漲是適當的，因為我們繼續提供物超所值的產品。我們已經完成了為成功定位自己的工作，我期待著本賽季的剩餘時間。

Turning to the DIY channel. We have spent a significant amount of time understanding how we can return to share gains by speaking to both our clients and our competitors' clients, and we came away with clear learnings. There is a large awareness gap that H&R Block has a competitive product. DIY filers do not believe that it's easy to switch to new software, and they do not want to be surprised on pricing when they get to the end of the experience and are ready to file. With these 3 challenges in mind, we responded.

轉向DIY頻道。通過與我們的客戶和競爭對手的客戶交談，我們花費了大量時間來了解我們如何能夠回報以分享收益，並且我們從中得到了清晰的經驗教訓。對於 H&R Block 具有競爭力的產品存在很大的認知差距。 DIY 歸檔者不相信切換到新軟件很容易，並且他們不希望在體驗結束並準備歸檔時對定價感到驚訝。考慮到這 3 個挑戰，我們做出了回應。

First, on the awareness front, we've allocated more of our marketing spend to DIY-specific messaging and are boldly addressing the clear advantages of our product, such as a better product experience, a price advantage to our largest competitor, how easy it is to switch and the access to our network of expert tax professionals for assistance. We're also identifying underpenetrated markets where we have a large opportunity and are going deeper in these regions with even more personalized messaging.

首先，在意識方面，我們將更多的營銷支出分配給 DIY 特定的消息傳遞，並大膽地強調我們產品的明顯優勢，例如更好的產品體驗、相對於我們最大競爭對手的價格優勢、它的易用性是轉換和訪問我們的專業稅務專家網絡尋求幫助。我們還確定了我們有很大機會的滲透不足的市場，並通過更加個性化的消息傳遞在這些地區深入。

As you may have seen already, our television advertisements are focused on bringing top-of-funnel awareness and addressing the ease of switching, which we know is the biggest barrier. We then leverage digital to optimize conversion such as search, display and social content like TikTok, Instagram and Pinterest to deliver messaging on the value proposition I just discussed. In addition, reflecting trends of the creator economy we have targeted campaigns for groups such as the self-employed and students.

正如您可能已經看到的那樣，我們的電視廣告專注於提高漏斗頂端意識並解決轉換的難易程度，我們知道這是最大的障礙。然後，我們利用數字技術優化搜索、展示和社交內容（如 TikTok、Instagram 和 Pinterest）等轉化，以傳遞關於我剛才討論的價值主張的信息。此外，為了反映創作者經濟的趨勢，我們針對個體經營者和學生等群體開展了有針對性的活動。

Second, we made it easier than ever to switch, including customized flows for clients moving from TurboTax. With just a couple of clicks, clients can drag and drop their previous year's TurboTax return into the H&R Block online flow, which then auto populates into the current year tax flow. We've also created simple step-by-step instructional videos to demonstrate this to our clients.

其次，我們比以往任何時候都更容易切換，包括為從 TurboTax 遷移的客戶定制流程。只需點擊幾下，客戶就可以將他們前一年的 TurboTax 退稅拖放到 H&R Block 在線流程中，然後自動填充到當年的稅收流程中。我們還創建了簡單的分步教學視頻來向我們的客戶展示這一點。

At the same time, we launched newly built AI technology, which is powered by models for millions of returns and AI algorithms and other technology such as optical character recognition. This new feature automatically scans the prior year TurboTax return to identify if the client may have missed out on refund dollars. If it identifies opportunities, we notify the client and connect them to one of our expert tax professionals who can help them file an amendment. Clients only pay if they amend their return to get an additional refund. This technology is the game changer and as the possibility of a recession looms, it's important that consumers get every available dollar of their tax refund.

同時，我們推出了全新的人工智能技術，以百萬回報率模型和人工智能算法為基礎，以及光學字符識別等其他技術。這項新功能會自動掃描前一年的 TurboTax 申報表，以確定客戶是否可能錯過了退款。如果發現機會，我們會通知客戶並將他們聯繫到我們的一位專業稅務專家，他們可以幫助他們提交修正案。客戶只有在修改退貨以獲得額外退款時才需要付費。這項技術改變了遊戲規則，隨著經濟衰退的可能性迫在眉睫，重要的是消費者獲得退稅中的每一美元。

Finally, to solve for pricing transparency, we present price previews to clients throughout the DIY experience, so there are no surprises when they get to the end. Like in Assisted, we're taking modest price increases this year. We feel very good about our improved positioning and go-to-market strategy in DIY this season. The progress we continue to make across the business is significant, and I'm excited about what's ahead. With tax season upon us and after spending time in the field already, I can't wait to see what we will accomplish for clients this year.

最後，為了解決定價透明度問題，我們在整個 DIY 體驗過程中向客戶展示價格預覽，這樣當他們到達終點時就不會感到意外。與輔助產品一樣，我們今年將適度提價。我們對本季度 DIY 中改進的定位和上市策略感到非常滿意。我們在整個業務中繼續取得的進展意義重大，我對未來感到興奮。隨著報稅季的臨近，在實地考察之後，我迫不及待地想看看今年我們將為客戶取得的成就。

With that, I'll now turn things over to Tony to discuss our financial results.

有了這個，我現在將事情交給托尼來討論我們的財務結果。

Thanks, Jeff, and good afternoon, everyone. Our performance continues to be on track for the first half of the year, and as a result, we are pleased to reaffirm our full year outlook for 2023, as Jeff mentioned earlier. In the second quarter, we delivered $166 million of revenue, which increased 5% or $8 million for the prior year. This was primarily driven by client volumes and net average charge improvements as we had a strong end to the 2022 tax season, partially offset by lower Emerald Card revenues.

謝謝，傑夫，大家下午好。正如 Jeff 之前提到的，我們今年上半年的業績繼續步入正軌，因此，我們很高興重申我們對 2023 年的全年展望。第二季度，我們實現了 1.66 億美元的收入，比上年增長 5% 或 800 萬美元。這主要是由於我們在 2022 年稅收季節結束時表現強勁，客戶數量和淨平均費用改善推動了這一點，部分被翡翠卡收入下降所抵消。

As we mentioned last quarter, we expected this impact due to the advanced child tax credit payments being loaded on to Emerald Cards last year.

正如我們上個季度提到的，我們預計這種影響是由於去年 Emerald 卡上預付的兒童稅收抵免付款。

Total operating expenses were approximately $450 million, an increase of about 3% or $13 million, primarily due to higher corporate and field wages, along with increased bad debt expense. This was partially offset by lower consulting and outsourced services as well as favorable developments in insurance loss reserves.

總運營費用約為 4.5 億美元，增長約 3% 或 1300 萬美元，這主要是由於公司和現場工資增加，以及壞賬費用增加。這部分被較低的諮詢和外包服務以及保險損失準備金的有利發展所抵消。

EBITDA was a loss of approximately $246 million, an increase of about 3% or $6 million to the prior year. Interest expense was approximately $19 million, a decrease of about $4 million or 18%. Recall that in June of 2021, we issued notes at 2.5% and paid off our $500 million 5.5% notes early in May of 2022. This was partially offset by increased interest expense on our CLOC due to higher interest rates. Although we are seeing higher interest expense on our short-term borrowings, this will be more than offset with higher interest income in the fourth quarter when we enter a positive cash position, assuming interest rates remain similar to current levels.

EBITDA 虧損約 2.46 億美元，比上年增長約 3% 或 600 萬美元。利息支出約為 1900 萬美元，減少約 400 萬美元或 18%。回想一下，我們在 2021 年 6 月以 2.5% 的利率發行了票據，並於 2022 年 5 月初還清了 5 億美元的 5.5% 票據。這部分被我們的 CLOC 利息支出因利率升高而增加所抵消。儘管我們看到短期借款的利息支出增加，但假設利率保持與當前水平相似，第四季度當我們進入正現金頭寸時，這將被更高的利息收入所抵消。

Pretax loss was effectively flat to the prior year at $298 million, and our effective tax rate was 25.9% compared to 36.7% last year. As a reminder, our effective tax rate in fiscal year '22 was 15%, and we expect it to increase to approximately 22% in fiscal year '23.

稅前虧損實際上與上一年持平，為 2.98 億美元，我們的有效稅率為 25.9%，而去年為 36.7%。提醒一下，我們在 22 財年的有效稅率為 15%，我們預計在 23 財年將增至約 22%。

Loss per share from continuing operations increased from $1.09 to $1.43, while adjusted loss per share from continuing operations increased from $1.02 to $1.37, primarily due to larger net loss from lower income tax benefits in the quarter and fewer shares outstanding. As a reminder, the only adjustment we are currently making to adjusted earnings per share is amortization related to acquisitions.

持續經營每股虧損從 1.09 美元增加到 1.43 美元，而調整後的持續經營每股虧損從 1.02 美元增加到 1.37 美元，這主要是由於本季度較低的所得稅優惠帶來的淨虧損增加以及流通股減少。提醒一下，我們目前對調整後每股收益所做的唯一調整是與收購相關的攤銷。

Turning to guidance. We're pleased to reiterate top line growth, EBITDA that outpaces revenue and EPS that grows even faster. As a reminder, we did not assume any benefit from 1099 Ks in our outlook. We also remain confident in the longer-term target we provided in August of adjusted EPS growing double digits annually through fiscal year '25.

轉向指導。我們很高興重申頂線增長，EBITDA 超過收入和 EPS 增長更快。提醒一下，我們沒有假設 1099 Ks 在我們的前景中有任何好處。我們也對我們在 8 月份提供的長期目標充滿信心，即調整後的每股收益在 25 財年每年增長兩位數。

Our capital allocation practice remains strong. In Q2, we bought a total of 3.2 million shares for $130 million at an average price of $40.22. As Jeff mentioned, this was another 2% of our shares outstanding for a total of $350 million or 5% of shares repurchased in the first half of the year. Given our narrow trading windows, we have historically executed most of our share repurchases in the early part of the year.

我們的資本配置實踐依然強勁。在第二季度，我們以 40.22 美元的平均價格以 1.3 億美元的價格購買了 320 萬股股票。正如 Jeff 所提到的，這是我們另外 2% 的已發行股票，總計 3.5 億美元或今年上半年回購的 5% 的股票。鑑於我們狹窄的交易窗口，我們歷來在今年年初執行了大部分股票回購。

Overall, I believe this is a great use of capital and I feel good about what we've accomplished this year.

總的來說，我相信這是對資本的一種很好的利用，我對我們今年所取得的成就感到滿意。

Before moving into Q&A, I'd also like to highlight the strength of our business during periods of economic downturns. Both the tax industry and H&R Block have a history of resilience. The industry is most correlated with employment, which remains strong in calendar year 2022, boding well for the tax season in '23. And as trends over the last couple of decades have shown, when times are tough, clients want to ensure they are getting their maximum refund by turning to our trusted brand. We've also seen more small businesses form during tough economic times, and if the backdrop deteriorates more meaningfully, our government has a history of stepping in to provide stimulus distributed through the tax filing system.

在進入問答環節之前，我還想強調一下我們在經濟低迷時期的業務實力。稅務行業和 H&R Block 都有彈性的歷史。該行業與就業最相關，就業在 2022 年仍然強勁，預示著 23 年的稅收季節。正如過去幾十年的趨勢所表明的那樣，在艱難時期，客戶希望通過轉向我們值得信賴的品牌來確保他們獲得最大的退款。我們還看到在經濟困難時期成立了更多的小企業，如果背景惡化得更有意義，我們的政府有介入的歷史，通過稅收申報系統提供刺激措施。

You'll recall our biggest compensation line item is for tax pros, which is largely variable in relation to filing volumes, meaning we can flex expenses in line with business trends. And as I mentioned before, rising interest rates are actually near-term positive for H&R Block. The bottom line is, our industry volatility is low and our business is resilient.

您會記得我們最大的薪酬項目是針對稅務專家的，這在很大程度上取決於申請量，這意味著我們可以根據業務趨勢調整開支。正如我之前提到的，利率上昇實際上對 H&R Block 近期有利。底線是，我們的行業波動性較低，我們的業務具有彈性。

In summary, we feel very good about the performance of our business and are looking forward to the rest of this tax season. Our next update, including filing volumes, will be on our Q3 call in early May.

總而言之，我們對我們的業務表現感到非常滿意，並期待著這個稅收季節的剩餘時間。我們的下一次更新，包括備案量，將在 5 月初的第三季度電話會議上公佈。

With that, I will now turn it back over to Jeff for some closing remarks.

有了這個，我現在將把它轉回給 Jeff 做一些結束語。

Thanks, Tony. In summary, we are pleased with our first half performance and are confident in our ability to drive value for shareholders through our business results and capital allocation practice. As we end our prepared remarks, I would like to sincerely thank our hardworking associates, franchisees and tax professionals who inspire confidence in our clients and communities everywhere. With tax season in full swing, our Block family is hard at work, and I cannot thank them all enough.

謝謝，托尼。總而言之，我們對上半年的業績感到滿意，並對我們通過業務成果和資本配置實踐為股東創造價值的能力充滿信心。在我們準備好的發言結束時，我要衷心感謝我們辛勤工作的員工、加盟商和稅務專業人士，他們激發了我們各地客戶和社區的信心。隨著稅收季節如火如荼地進行，我們的布洛克家族正在努力工作，我對他們感激不盡。

Now we'll open the line for questions.

現在我們將打開問題熱線。

(Operator Instructions) Our first question comes from the line of Kartik Mehta of Northcoast.

（操作員說明）我們的第一個問題來自 Northcoast 的 Kartik Mehta。

Jeff, I know it's early and whatever color you can give would be appreciated. Just how the tax season has started and is it in line with your expectations, better than expectations, I guess, worse than expectations? Just any commentary you could give from what you're seeing early on?

傑夫，我知道現在還早，無論你能提供什麼顏色，我們都將不勝感激。稅收季節是如何開始的，是否符合您的預期，好於預期，我猜，差於預期？您可以根據您早期看到的內容髮表任何評論嗎？

Kartik, thanks for the question. Yes, obviously, we won't get into details about the current quarter and season, but I will say that we have seen clients filing earlier in both the Assisted and DIY channels. And we think that's true for the broader industry as well. And it makes sense when you think about those that really need their money, their refund and with stimulus payments ending from last year. So that's one insight I can provide. Otherwise, we probably don't want to get too deep into current performance.

Kartik，謝謝你的提問。是的，很明顯，我們不會詳細介紹當前的季度和季節，但我會說我們已經看到客戶在輔助和 DIY 渠道中提交了更早的申請。我們認為更廣泛的行業也是如此。當你想到那些真正需要錢、退款和去年結束的刺激付款的人時，這是有道理的。所以這是我可以提供的一種見解。否則，我們可能不想太深入了解當前的性能。

Yes. That's fair. And Jeff, just on the Block Horizons strategy, small business, when you look at the end of the season, what would you define as success? I guess, what metrics are you looking at to say if the program is working up to your expectations? Or if there's some tweaks that might be needed?

是的。這還算公平。傑夫，就 Block Horizons 戰略而言，小企業，當你看到賽季結束時，你將什麼定義為成功？我想，您正在查看哪些指標來說明該程序是否達到您的期望？或者是否需要進行一些調整？

It's a great question. And obviously, there are a number of different metrics we're looking at, financial performance, operational because there are a number of pieces to the small business strategy. I think if I start at the top, we've had 2 really good years in small business performance. And so we expect to continue to see Assisted tax growth for small businesses. That's a core component of the strategy.

這是一個很好的問題。顯然，我們正在研究許多不同的指標，財務績效，運營，因為小企業戰略有很多部分。我認為，如果我從高層開始，我們在小企業業績方面已經有 2 個非常好的年份。因此，我們預計小企業的輔助稅收會繼續增長。這是該戰略的核心組成部分。

We're also building year-round capabilities in bookkeeping and payroll, so we want to see that we're not only growing those businesses, but operationally, we're able to deliver the kind of experience that we want and we know clients expect. And then, as you know, we're also launching new products like the Business Formation service. That's a brand-new product. And so for a year like this when it's coming out of the gates, we're looking closely at operational performance and making sure that we're really delivering for clients when they raise their hand and say they're interested in that service.

我們還在簿記和工資單方面建立全年能力，因此我們希望看到我們不僅在發展這些業務，而且在運營方面，我們能夠提供我們想要的那種體驗，我們知道客戶期望.然後，如您所知，我們還將推出新產品，例如 Business Formation 服務。那是一種全新的產品。因此，在這樣的一年裡，當它走出大門時，我們正在密切關注運營績效，並確保當他們舉手錶示對這項服務感興趣時，我們真正為客戶提供服務。

So a lot of different metrics, but we feel very good about the small business imperatives performance over the last couple of years and have expectations that will continue.

有很多不同的指標，但我們對過去幾年小企業的必要表現感到非常滿意，並期望這種情況會持續下去。

Our next question comes from the line of George Tong of Goldman Sachs.

我們的下一個問題來自高盛的 George Tong。

We've seen estimates out there that this year, refunds on average will come in lower, which could potentially make consumers more price sensitive. Can you discuss your expectations on how lower refunds might impact the elasticity of consumers, especially the lower end with subprime consumer that may be a little bit more stretched given the effect of inflation and what the ultimate impact could be on market share performance given some of those dynamics?

我們已經看到估計，今年平均退款會減少，這可能會使消費者對價格更加敏感。您能否討論一下您對較低退款可能如何影響消費者彈性的預期，尤其是考慮到通貨膨脹的影響可能會更加緊張的次級消費者的低端消費，以及考慮到某些因素，最終可能對市場份額表現產生什麼影響那些動態？

George, it's Jeff. I'll kick this off. I mean, I think at the highest level to start, we don't control the size of the refund. So we do the work for the customer. We deliver the experience and the outcome. But what we do control is the price and the experience and how that adds up to value for the customer. And I think that's one of the reasons why we're taking the steps we're taking on pricing this year as one example, knowing that every dollar matters, so expertise matters. And despite a much faster, higher inflationary backdrop, we're only taking nominal price increases in Assisted to make sure that value is really strong.

喬治，是傑夫。我會開始的。我的意思是，我認為從最高級別開始，我們不控制退款的數額。所以我們為客戶工作。我們提供經驗和結果。但我們真正控制的是價格和體驗，以及它們如何為客戶創造價值。我認為這就是我們今年採取定價措施的原因之一，因為我們知道每一美元都很重要，所以專業知識很重要。儘管通貨膨脹率更快、更高，但我們只是在輔助中進行名義價格上漲，以確保該價值真的很強勁。

So that's really what we can control, and we just continue to be focused on the best experience, providing expertise and making sure that the price value equation continues to be strong because we see it strong and that's been several years of building that as we've talked about.

所以這真的是我們可以控制的，我們只是繼續專注於最好的體驗，提供專業知識並確保價格價值等式繼續強大，因為我們看到它很強大，而且已經建立了幾年，因為我們'已經談過了。

Yes. And George, I would just layer on. I mean, I think we do expect the refunds could come down a little bit this year. If you remember last year, they increased, but even if they do, I mean, early season clients, in particular, are still getting very large refunds relative to obviously the price they're paying for their services, and many of them are leveraging products like refund, transfer to pay for that tax preparation. So we don't expect that to be a near-term issue that would impact any kind of client volume.

是的。喬治，我會穿上。我的意思是，我認為我們確實預計今年的退款會有所下降。如果你還記得去年，他們增加了，但即使他們增加了，我的意思是，相對於他們為服務支付的價格，特別是早期客戶仍然獲得非常大的退款，而且他們中的許多人正在利用產品如退稅、轉賬支付該稅務準備。因此，我們預計這不會成為影響任何類型的客戶量的近期問題。

Got it. That's helpful. And then can you refresh your views around the tax filing complexity this year, and its impact on Assisted net average charge? What are some of the puts and takes that you expect in this tax season compared to last year's tax season?

知道了。這很有幫助。然後您能否更新您對今年報稅複雜性及其對輔助淨平均費用的影響的看法？與去年的稅收季節相比，您在這個稅收季節預計會有哪些看跌期權？

Yes, we can tag team again. But I think starting with, it's obviously been a few unusual years with a number of different things that were causing the filer to have to think about federal stimulus, unemployment benefits, et cetera. And we expect this to be a more normal year in general. That said, we continue to see consumer opting for expertise. Even in the DIY channel and looking at growth of products like Tax Pro Review, for example, where they start as a DIY filer, but at some point in the process, recognize they have questions and push the help button to get their questions answered or ultimately turn over the work for us to finish for them.

是的，我們可以再次標記團隊。但我認為首先，這顯然是不尋常的幾年，有許多不同的事情導致申報者不得不考慮聯邦刺激、失業救濟等。總體而言，我們預計今年將是更正常的一年。也就是說，我們繼續看到消費者選擇專業知識。即使在 DIY 渠道中，看看 Tax Pro Review 等產品的增長，例如，他們從 DIY 申報者開始，但在這個過程中的某個時刻，認識到他們有問題並按下幫助按鈕來回答他們的問題或最終將工作交由我們為他們完成。

So even with a normal -- " normal year" we still see the consumer opting for expertise, and that's why we like the way that we're positioned with our network of experts.

因此，即使是正常的——“正常的一年”，我們仍然看到消費者選擇專業知識，這就是為什麼我們喜歡我們在專家網絡中的定位方式。

Our next question comes from the line of Scott Schneeberger of Oppenheimer.

我們的下一個問題來自 Oppenheimer 的 Scott Schneeberger。

I guess, let's start with the advertising campaign with regard to DIY, you've really stepped it up this year, and very much going against your largest competitor. I just wanted to delve into that a little bit more. How are your marketing dollars, advertising dollars allocated this year? What type of increase year-over-year this year versus last, if any?

我想，讓我們從有關 DIY 的廣告活動開始吧，你們今年真的加強了它，並且非常反對你們最大的競爭對手。我只是想更深入地研究一下。今年你的營銷資金、廣告資金是如何分配的？如果有的話，今年與去年相比有什麼類型的同比增長？

And then how are you approaching Assisted in DIY as far as balancing those dollars versus past years? And then also kind of your media channels certainly been very active on TV with the DIY. Just curious what more you can share about the marketing approach.

然後，就平衡這些美元與過去幾年而言，您如何接近 Assisted in DIY？然後，您的媒體渠道肯定也通過 DIY 在電視上非常活躍。只是好奇您可以分享更多有關營銷方法的內容。

You got it. Let me try to break that down a bit and keep me honest if I miss the piece of the puzzle. I mean, so starting at the highest level, we know that the brand H&R Block has tremendous assistance and we know that people know that we have tax pros and locations. What they don't know is that we offer a DIY software product. They don't know that to the same degree. So our allocation this year is skewed more than in the past to DIY messaging.

你說對了。讓我試著把它分解一下，如果我錯過了拼圖的一部分，請保持誠實。我的意思是，從最高層開始，我們知道 H&R Block 品牌有巨大的幫助，我們知道人們知道我們有稅務專家和地點。他們不知道的是，我們提供的是 DIY 軟件產品。他們在相同程度上不知道這一點。因此，我們今年的分配比過去更偏向於 DIY 消息傳遞。

And over the summer, we did a lot of research to understand why had we been growing revenue and volume and new clients in DIY, but not market share in DIY, and there were 3 real reasons: number one, far and away, number 1 was the lack of awareness that we offered the product broadly. Number 2 was a misunderstanding about how easy it is to switch. And number 3 is about pricing and a little bit about the actual price, but more about the frustration that comes when you're surprised by what you're charged when you get to the end of the process.

整個夏天，我們做了很多研究來理解為什麼我們在 DIY 的收入和數量以及新客戶在增長，但在 DIY 的市場份額卻沒有增長，真正的原因有 3 個：第一，很遠，第一是缺乏對我們廣泛提供該產品的認識。第 2 點是對切換有多容易的誤解。第三個是關於定價和一點點實際價格，但更多的是當你對過程結束時所收取的費用感到驚訝時所帶來的挫敗感。

And so we've really gone at all 3 of those head on. You see it reflected in television, really top of the funnel as we think, building awareness, but we are more active than usual in digital channels, really delivering the details about the value proposition. And then once you arrive at the website, having built a custom flow, particularly for TurboTax switchers, to really educate them on how easy it is to switch, video content to teach the filers how to find your TurboTax return and upload it to Block.

所以我們真的已經完成了所有 3 個。你看到它反映在電視上，就像我們認為的那樣真正在漏斗的頂端，建立意識，但我們在數字渠道中比平時更活躍，真正提供有關價值主張的細節。然後一旦你到達網站，建立了一個自定義流程，特別是為 TurboTax 切換器，真正教育他們切換是多麼容易，視頻內容教申報者如何找到你的 TurboTax 回報並將其上傳到 Block。

So a number of things very specifically to really go at those exact barriers that we understood clearly from clients from the summer.

因此，許多事情非常具體地真正解決了我們從夏季開始就從客戶那裡清楚地了解的那些確切障礙。

Thanks, Jeff. Appreciate it. And yes, you did a great job, as you say, getting all the pieces of the puzzle there on the multipart question. Just a follow-up on that. The one piece I think we missed was just, was there more overall marketing dollars spent? Or was it relatively in line with last year or a normal increase?

謝謝，傑夫。欣賞它。是的，正如你所說，你做得很好，把多部分問題的所有拼圖都解開了。只是對此的後續行動。我認為我們錯過的一件事情是，是否花費了更多的整體營銷資金？還是與去年基本持平或正常增長？

And then a follow-up on that, just on the same topic, is this the AI-driven technology that you've highlighted. How differentiated is that in the industry? Clearly, you're promoting it a lot, but is it truly differentiated? Are your peers they're not promoting it as much, but is that something that you have that is truly differentiated?

然後是關於同一主題的後續行動，這是您強調的人工智能驅動技術。行業差異化程度如何？很明顯，你在大力宣傳它，但它真的與眾不同嗎？您的同行是否沒有那麼多地宣傳它，但是您擁有的東西真的與眾不同嗎？

Yes, absolutely. So on your first question, I think dollars about flat, all contemplated in the outlook. It's really more about allocation and allocation between virtual/assisted in DIY and then within the channels, like I just walked through.

是的，一點沒錯。所以關於你的第一個問題，我認為美元持平，所有這些都在前景中被考慮到。它實際上更多的是虛擬/輔助DIY之間的分配和分配，然後是渠道內的分配，就像我剛剛走過的那樣。

On your second question, we haven't actively run any advertising or marketing for the AI technology and have no plans to do that. We announced it in a press release and it is an industry first. There is no one who has ever used AI to proactively and retroactively look at a prior year return to see if there are any available refund dollars. And in the product, if any are identified, we notify the client and then we connect them with the tax pro to actually do the rest of the leg work to figure out exactly what it could be and then decide if they want to file an amended return.

關於你的第二個問題，我們沒有積極為人工智能技術進行任何廣告或營銷，也沒有這樣做的計劃。我們在新聞稿中宣布了它，這是行業首創。沒有人曾經使用 AI 主動和追溯地查看前一年的退貨，看看是否有任何可用的退款資金。在產品中，如果發現任何問題，我們會通知客戶，然後我們將他們與稅務專家聯繫起來，實際完成剩下的腿部工作，以確定它可能是什麼，然後決定他們是否要提交修改後的文件返回。

So that's how it works. Again, we announced it in a press release. We're not actively advertising it and don't have plans to actively advertise it.

這就是它的工作原理。同樣，我們在新聞稿中宣布了這一點。我們沒有積極宣傳它，也沒有積極宣傳它的計劃。

Got it. Appreciate that. If I could just go up 1 or 2 more in there and maybe get Tony involved. The -- just curious, Tony, first off, how are you progressing on buying in franchisees this year? Is it consistent with expectations? And just any mention of comparison to last year?

知道了。感謝。如果我能在那裡再上升 1 或 2 個，也許可以讓 Tony 參與進來。 - 只是好奇，托尼，首先，你今年在購買特許經營商方面進展如何？是否符合預期？只是提到與去年的比較嗎？

And then my other question is just -- and Jeff, I think we'll bring you back to this as well. But I heard Tony mention in the guidance, there's no consideration for 1099K which is a good thing. But I just like the big picture view of what H&R Block is expecting on that front in future years and how that would impact the industry and H&R Block specifically? Thanks for letting me put them all through there. I'll stop right there.

然後我的另一個問題是——傑夫，我想我們也會讓你回到這個問題上。但我聽 Tony 在指南中提到，沒有考慮 1099K，這是一件好事。但我只是喜歡 H&R Block 在未來幾年在這方面的期望以及這將如何影響行業和 H&R Block 的具體情況？謝謝你讓我把它們都放在那裡。我會在那裡停下來。

Thanks, Scott. And I appreciate you getting me involved. So franchise acquisitions are going well this year. We've done that for a number of years. It's ebbed and flowed a little bit, but kind of we've been in that 100 to 150 location range, and I think it will be in that range again this year. We still have some active kind of negotiations that are occurring and some deals that are yet to close, but we'll probably be in that zone and feel good about franchisees' willingness to sell to us is obviously a willing buyer.

謝謝，斯科特。我很感激你讓我參與進來。因此，今年的特許經營收購進展順利。我們已經這樣做了很多年。它有一點起伏，但我們一直處於 100 到 150 個位置範圍內，我認為今年它會再次處於該範圍內。我們仍在進行一些積極的談判，一些交易尚未完成，但我們可能會在那個區域並且對加盟商願意出售給我們的意願感到滿意顯然是一個願意的買家。

And Scott, on your second question, I mean, it's obviously hard to speculate on what might be the impact of a piece of legislation that isn't final or passed. I mean, 1099Ks are a topic that depending on how it is implemented, could impact lots of people or fewer people. We don't really worry about trying to judge when something might get passed. We just every single year, learn what the changes are, train on the changes and communicate to clients the value of expertise. We see doing the same thing next year. But again, we didn't build any assumptions of 1099K into this year's financials.

斯科特，關於你的第二個問題，我的意思是，顯然很難推測一項尚未最終或未通過的立法可能產生的影響。我的意思是，1099Ks 是一個主題，取決於它的實施方式，可能會影響很多人或更少的人。我們真的不擔心試圖判斷什麼時候可以通過。我們只是每一年，了解變化是什麼，就變化進行培訓，並向客戶傳達專業知識的價值。我們預計明年會做同樣的事情。但同樣，我們沒有在今年的財務數據中建立任何 1099K 的假設。

Our next question comes from the line of Alex Paris of Barrington Research.

我們的下一個問題來自 Barrington Research 的 Alex Paris。

I have just a couple of follow-up or cleanup calls. Most of the questions have been asked and answered. On the Wave side, I know we have a new CEO there, who is completing a strategic review, I think last time we were together, on a call like this. In Q1, revenues were up 18% year-over-year. In Q2, they were up 13%. Is there anything to read into that?

我只有幾個跟進或清理電話。大多數問題都已提出並得到解答。在 Wave 方面，我知道我們有一位新 CEO，他正在完成一項戰略審查，我想上次我們在一起時，是在這樣的電話會議上。第一季度，收入同比增長 18%。在第二季度，它們上漲了 13%。有什麼要讀的嗎？

I appreciate the question. And I think the only thing I would read into it is that we're not pleased with that progress. Zahir has been enrolled for a handful of months. He's doing a phenomenal job of interrogating all parts of the business. We want to return that business to a higher growth rate. Obviously, it is growing, but we want to return it to a higher growth rate. And importantly, he is looking very carefully at how do we accelerate the path to profitability in addition to restoring to a higher growth rate. So we will have more to share in the future, but for now, that's the message for me about what we're seeing at Wave.

我很欣賞這個問題。而且我認為我唯一會讀到的是我們對這一進展不滿意。 Zahir 已經註冊了幾個月。他在審問公司的所有部門方面做得非常出色。我們希望將該業務恢復到更高的增長率。顯然，它正在增長，但我們希望它恢復到更高的增長率。重要的是，他非常仔細地研究除了恢復更高的增長率之外，我們如何加快盈利之路。所以我們將來會有更多分享，但就目前而言，這就是我們在 Wave 上看到的信息。

Is there a particular area or product offering within Wave that is lagging the others?

Wave 中是否有特定領域或產品落後於其他領域？

Well, I mean, it could get complicated fast, just recognizing all the things they do in their business. So I try for now to just keep it at a high level and say that the way their clients use the product to send invoices and receive payments isn't performing at the level that it used to. And so that's a primary place that we're interrogating, but to be clear, his work is looking at the entire business, every piece of performance, what we can do for monetization and what we can do on the expense side.

好吧，我的意思是，它可能會很快變得複雜，只要認識到他們在業務中所做的所有事情。因此，我現在嘗試將其保持在高水平，並說他們的客戶使用該產品發送發票和接收付款的方式沒有像過去那樣執行。所以這是我們正在審問的一個主要地方，但要明確的是，他的工作是著眼於整個業務，每一項表現，我們可以為貨幣化做些什麼，以及我們可以在費用方面做些什麼。

Yes. And just to put a finer point, I think what Jeff saying is, where the small businesses who are sending out those invoices are sending fewer invoices than they were previously, which obviously is probably more of a macro environment type issue. But beyond that, we know that we can do better within our own control and own performance.

是的。更確切地說，我認為 Jeff 所說的是，發送這些發票的小企業發送的發票比以前少，這顯然可能更多是宏觀環境類型的問題。但除此之外，我們知道我們可以在自己的控制和自己的表現範圍內做得更好。

Got you. That's helpful. All right. And then moving on, Spruce. It was launched last year in DIY only. I believe that's correct. And this year, starting in January, it's being rolled out to the Assisted offices as well. How -- again, it's very early in the tax season, but what have been your experiences so far with the tax pros and with consumer-driven demand?

明白了這很有幫助。好的。然後繼續前進，雲杉。它於去年僅以 DIY 形式推出。我相信這是正確的。今年，從 1 月開始，它也將推廣到輔助辦公室。如何 - 同樣，現在是稅收季節的早期，但到目前為止，您與稅務專家和消費者驅動的需求有什麼經驗？

Yes. Again, I appreciate the question. You're exactly right. Last year, we launched a beta version of the product in the DIY flow only. This year, we're back in DIY. We are marketing direct to customers, and we have launched it in the retail channel. I feel very good about the way it was received. The plans we built to make it easy for the tax professional at the desk to explain the value proposition. We've only been at it a few weeks. And so it's way too early to comment beyond the operational cleanup things that we're working on to improve the experience.

是的。我再次感謝這個問題。你完全正確。去年，我們僅在 DIY 流程中推出了該產品的測試版。今年，我們又回到了 DIY 領域。我們直接面向客戶進行營銷，我們已經在零售渠道推出了它。我對收到它的方式感覺很好。我們制定的計劃是為了讓辦公桌上的稅務專業人員能夠輕鬆解釋價值主張。我們只參與了幾週。因此，除了我們正在努力改善體驗的運營清理之外，現在評論還為時過早。

We're focused on account creation ideally at the tax desk, but ultimately loading funds into the account and then keeping those clients engaged by spending. And so there's a number of pieces that go way beyond account creation, because this really is the formation of a year-round relationship with the clients. And as we get to Q3 and beyond, we'll be updating you on what we've seen in performance.

我們專注於理想情況下在稅務櫃檯創建賬戶，但最終將資金存入賬戶，然後通過支出保持這些客戶的參與度。因此，有許多內容遠遠超出了創建帳戶的範圍，因為這確實是與客戶建立全年關係的過程。隨著我們進入第三季度及以後，我們將向您更新我們在性能方面看到的情況。

Great. And then last question for Tony. In your prepared comments, you talked a little bit about within operating expenses, insurance loss reserves, providing a favorable impact. Just wondering if we can get a little bit more color on that. And then the increased bad debt, what is that related to?

偉大的。然後是托尼的最後一個問題。在您準備好的評論中，您在運營費用、保險損失準備金中談了一些，提供了有利的影響。只是想知道我們是否可以在上面獲得更多顏色。然後增加的壞帳，這與什麼有關？

Yes. So we'll start with the bad debt. I mean part of that is driven by the fact that we had a stronger EA season. When we participate in those EA loans, we book our portion of the bad debt all upfront. As you know, Alex, a lot of that revenue is recognized over several months as there is an interest income component through the period to where those loans are ultimately paid off.

是的。所以我們將從壞賬開始。我的意思是部分原因是我們有一個更強大的 EA 賽季。當我們參與這些 EA 貸款時，我們會預先預訂我們的壞賬部分。正如你所知，亞歷克斯，很多收入會在幾個月內確認，因為在這些貸款最終還清的這段時間裡有利息收入部分。

On the insurance loss reserve, it's a fairly technical topic, but essentially, we have an actuarial assumption based on some expected losses. That actuarial assumption changed during the quarter, and that positive benefit resulted from. So not something that typically occurs, but it's a change from kind of pre-pandemic and post-pandemic some of the expectations on losses specifically related to workers' compensation.

關於保險損失準備金，這是一個相當技術性的話題，但本質上，我們有一個基於一些預期損失的精算假設。該精算假設在本季度發生了變化，並且產生了積極的收益。所以這不是通常會發生的事情，但它是對大流行前和大流行後對與工人賠償特別相關的損失的一些預期的一種改變。

At this time, I'd like to turn the call back over to Michaella Gallina for closing remarks. Madam?

此時，我想將電話轉回給 Michaella Gallina 以作結束語。女士？

Thank you, Latif, and thanks, everyone, for joining us today. This concludes our second quarter 2023 financial results conference call.

謝謝 Latif，也謝謝大家今天加入我們。我們的 2023 年第二季度財務業績電話會議到此結束。

Thank you for participating. You may now disconnect.

感謝您的參與。您現在可以斷開連接。