H & R Block Inc (HRB) 2024 Q4 法說會逐字稿

Thank you for standing by, and welcome to H&R Block's Fourth Quarter Fiscal Year 2024 earnings conference call. (Operator Instructions) I would now like to hand the call over to Makela Galena, Vice President, Investor Relations. Please go ahead.

感謝您的耐心等待，歡迎參加 H&R Block 2024 財年第四季財報電話會議。 （操作員指示）我現在想將電話轉給投資者關係副總裁 Makela Galena。請繼續。

Thank you, operator. Good afternoon, everyone, and welcome to H&R Block’s fiscal year 2024 financial results conference call. Joining me today are Jeff Jones, our president and chief executive officer, and Tony Bowen, our chief financial officer.

謝謝你，接線生。大家下午好，歡迎參加 H&R Block 2024 財年財務績效電話會議。今天與我一起出席的有我們的總裁兼執行長 Jeff Jones 和我們的財務長 Tony Bowen。

Earlier today, we issued a press release and presentation, that 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. 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.

今天早些時候，我們發布了一份新聞稿和演示文稿，您可以在我們的網站 Investors.hrblock.com 上下載或即時查看。我們的電話會議正在進行廣播和網路直播，網路直播的重播將在 90 天內提供。在開始之前，我想提醒聽眾，管理層發表的評論可能包括聯邦證券法含義內的前瞻性陳述。這些陳述涉及重大風險和不確定性，由於多種因素，實際結果可能與任何前瞻性陳述中的預測有所不同。有關這些風險和不確定性的描述，請參閱 H&R Block 的 10-K 表格年度報告和 10-Q 表格季度報告，該報告與我們向 SEC 提交的其他文件定期更新。

Please note, some metrics we’ll discuss today are presented on a non-GAAP basis. We’ve reconciled the comparable GAAP and non-GAAP figures in the appendix of our presentation. Finally, the content of this call contains time-sensitive information accurate only as of today, August 15, 2024. H&R Block undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call. With that, I will now turn it over to Jeff.

請注意，我們今天討論的一些指標是根據非公認會計原則提出的。我們在簡報的附錄中對可比較的 GAAP 和非 GAAP 資料進行了核對。最後，本次電話會議的內容包含截至今天（2024 年8 月15 日）的時間敏感資訊。 。有了這個，我現在將把它交給傑夫。

Good afternoon, everyone, and thanks for joining us today. We will begin by sharing our results for the full fiscal year and the progress we continue to make on our Block Horizons imperatives; then Tony will discuss our financial performance and outlook for fiscal ‘25, and then we’ll open it up for Q&A.

大家下午好，感謝您今天加入我們。我們將首先分享我們整個財年的業績以及我們在「區塊地平線」目標上繼續取得的進展；然後托尼將討論我們 25 財年的財務表現和前景，然後我們將進行問答。

Beginning with our FY24 results: I am pleased that we were able to deliver another year of revenue growth, EBITDA that grows even faster, and double-digit EPS growth. Our DIY business continued its momentum with market share gains for the second consecutive year.

從我們 2024 財年的業績開始：我很高興我們能夠實現另一年的營收成長、EBITDA 成長更快以及每股盈餘兩位數成長。我們的 DIY 業務繼續保持成長勢頭，市場份額連續第二年增長。

Performance was driven by paid client and NAC growth, as well as ongoing strength in our Tax Pro Review product. I was pleased with how fast we were able to launch AI Tax Assist, which resulted in higher new client conversion, and our customer satisfaction scores remained strong.

業績是由付費客戶和 NAC 的成長以及我們的 Tax Pro Review 產品的持續實力所推動的。我對我們能夠以如此快的速度推出人工智慧稅務助理感到滿意，這導致了更高的新客戶轉換率，並且我們的客戶滿意度得分仍然很高。

In Assisted, our brand continued to resonate with higher value clients, and we were able to grow NAC. Trends in Assisted small business tax also remained positive this year. In addition, we’re continuing to drive value for shareholders through our capital allocation practice. In fact, today we announced another 17% increase to our quarterly dividend as well as a new repurchase authorization of $1.5 billion which replaces the prior authorization.

在 Assisted 領域，我們的品牌繼續與高價值客戶產生共鳴，並且我們能夠發展 NAC。今年輔助小企業稅的趨勢也保持著正面的趨勢。此外，我們將繼續透過資本配置實踐為股東創造價值。事實上，今天我們宣布將季度股息再次增加 17%，並授予 15 億美元的新回購授權，以取代先前的授權。

Since 2016 through today, we have increased the dividend 88% and repurchased more than 40% of shares outstanding. Looking to fiscal ‘25, we feel well positioned to deliver for clients and shareholders; and Tony will share more about our Outlook in a moment. But first, let me turn to our Block Horizons strategy, where we continue to make important progress in all three of our strategic imperatives.

自2016年至今，我們已將股利增加了88%，並回購了超過40%的流通股。展望第 25 財年，我們認為我們有能力為客戶和股東提供服務；托尼稍後將分享更多有關我們的展望的資訊。但首先，讓我談談我們的「區塊地平線」策略，我們繼續在所有三個戰略要務方面取得重要進展。

Starting with Small Business, we had another good year in tax, delivering revenue growth in the mid-single digits. NAC grew 3%, entity trends remained strong, and bookkeeping and payroll had another year of double-digit growth. Our centralized fulfillment model alongside our dedicated sales team have driven services client conversion, and we continue to see a lot of opportunity ahead.

從小型企業開始，我們在稅收方面又取得了豐碩的一年，實現了中個位數的收入成長。 NAC 成長 3%，實體趨勢依然強勁，簿記和薪資又實現了兩位數成長。我們的集中履行模式和專門的銷售團隊推動了服務客戶的轉化，並且我們繼續看到未來的大量機會。

Turning to Wave, I’m pleased with the progress that has been made in the last year on our key priorities to accelerate revenue growth and drive profitability. You’ll recall we recently launched a new paid subscription solution, called Pro-Tier.

談到 Wave，我對去年在加速收入成長和提高獲利能力的關鍵優先事項上取得的進展感到高興。您可能還記得我們最近推出了一種新的付費訂閱解決方案，稱為 Pro-Tier。

This, along with our paid receipt product, are designed to further empower small business owners to manage their business better. These products have been performing better than anticipated. For the full year, revenue growth was 7%. We continue to improve the losses in the business and expect ongoing positive trends in fiscal 25.

這與我們的付費收據產品一起旨在進一步幫助小型企業主更好地管理他們的業務。這些產品的表現比預期的要好。全年營收成長7%。我們將繼續改善業務虧損，並預計 25 財年將持續出現正面趨勢。

Moving on to our Financial Products imperative, we are pleased with the growth of our mobile banking platform, Spruce, and its performance in both the Assisted and DIY channels this season. Since launch through June 30, Spruce has 476,000 sign ups and we are nearing a milestone of $1 billion in customer deposits. We are pleased to see positive deposit trends, with nearly 50% coming from non-tax sources this year. In fact, last month deposits increased 60% year over year.

繼續我們的金融產品需求，我們對我們的行動銀行平台 Spruce 的成長及其本季在輔助和 DIY 管道中的表現感到滿意。自推出以來截至 6 月 30 日，Spruce 已有 476,000 名註冊用戶，我們的客戶存款已接近 10 億美元的里程碑。我們很高興看到積極的存款趨勢，今年有近 50% 來自非稅收來源。事實上，上個月存款年增了60%。

At the same time, Spruce is continuing to deliver on its mission to help people be better with money. We’re excited about new innovations that will be rolling out in the coming months, and our team is focused on acquiring users in and out of the tax season.

同時，雲杉將繼續履行其使命，幫助人們更好地利用金錢。我們對未來幾個月推出的新創新感到興奮，我們的團隊專注於在納稅季節內外獲取用戶。

Now let’s turn to Block Experience, which is all about blending digital tools with human expertise and care. We feel great about how we’re positioned to serve clients however they want to be served, fully virtual to fully in person and every way in between.

現在讓我們轉向 Block Experience，這就是將數位工具與人類專業知識和關懷相結合。我們對如何以客戶想要的方式為客戶提供服務感到非常滿意，從完全虛擬到完全面對面，以及介於兩者之間的各種方式。

In DIY, our strategy continues to deliver, and we’re pleased with the results. As I mentioned, we had meaningful growth in paid clients and NAC, which translated to strong revenue growth of 11% this year. AI Tax Assist performed well, and we’re excited about our genAI use cases which have the potential to drive future efficiencies and cost savings. We look forward to continuing this momentum in fiscal year ’25.

在 DIY 領域，我們的策略繼續發揮作用，我們對結果感到滿意。正如我所提到的，我們在付費客戶和 NAC 方面取得了顯著成長，這意味著今年營收強勁成長了 11%。 AI Tax Assist 表現良好，我們對 genAI 用例感到非常興奮，這些用例有潛力提高未來的效率並節省成本。我們期待在 25 財年繼續保持這一勢頭。

In the Assisted channel, we were pleased with our NAC growth, improved client satisfaction scores, and success in attracting and serving higher value clients. We’re clear about where we 6 can improve the experience for clients, and recently welcomed Curtis Campbell as President of Global Consumer Tax and Chief Product Officer, who has more than ten years of tax industry experience. His impact is already being felt across the organization and I’m excited about his leadership.

在輔助管道中，我們對 NAC 的成長、客戶滿意度得分的提高以及在吸引和服務更高價值客戶方面的成功感到滿意。我們清楚我們 6 可以在哪些方面改善客戶體驗，最近還歡迎柯蒂斯·坎貝爾 (Curtis Campbell) 擔任全球消費者稅總裁兼首席產品官，他擁有十多年的稅務行業經驗。整個組織已經感受到了他的影響，我對他的領導能力感到興奮。

Over the last few years, we’ve made significant strides in our products, services, and features through our Block Horizons plan, and I’m feeling very good about our positioning for fiscal year ‘25. Before I turn things over to Tony to share more about our financial performance and outlook, I want to take a moment to thank him for his incredible tenure at H&R Block.

在過去的幾年裡，我們透過 Block Horizo​​ns 計畫在產品、服務和功能方面取得了重大進展，我對我們 25 財年的定位感到非常滿意。在我將事情交給托尼分享更多有關我們的財務表現和前景之前，我想花點時間感謝他在 H&R Block 的出色任期。

As we shared on the Q2 call, Tony made the personal decision to retire after a 20-year career with Block. Tony has been an integral part of our company, playing a key role in our growth, transformation, and success. His financial acumen, strategic insights, and industry experience have been invaluable to our team.

正如我們在第二季電話會議上分享的那樣，托尼在與 Block 合作 20 年後做出了退休的個人決定。托尼一直是我們公司不可或缺的一部分，在我們的成長、轉型和成功中發揮關鍵作用。他的財務頭腦、策略洞察力和行業經驗對我們的團隊來說非常寶貴。

During his tenure, Tony helped us navigate through numerous challenges and opportunities, ensuring that we remain on strong financial footing. He began his career with H&R Block as a Senior Treasury Analyst and has since held multiple executive roles.

在他任職期間，托尼幫助我們應對了許多挑戰和機遇，確保我們保持強勁的財務基礎。他的職業生涯始於 H&R Block 擔任高級財務分析師，此後擔任多個高階主管。

Under his leadership as CFO, we have returned more than $3.9 billion to shareholders. His impact on H&R Block will be felt for years to come. On behalf of the entire Block family and our Board of Directors, I want to extend our gratitude to Tony for his years of service and leadership, and we wish him all the best in his retirement and future endeavors.

在他擔任財務長的領導下，我們已向股東返還超過 39 億美元。他對 H&R Block 的影響將在未來幾年內顯現出來。我謹代表整個布洛克家族和我們的董事會，向托尼多年來的服務和領導表示感謝，並祝他在退休後和未來的工作中一切順利。

As you may have seen in our announcement last week, I am pleased to share that we have hired Tony’s successor. Tiffany Mason brings a proven track record of financial leadership in consumer services, retail, and franchising, which are all critical to our business. She most recently served as EVP and CFO at Driven Brands, a high-growth auto services company, where she drove strong organic and inorganic growth and led the company through a successful IPO.

正如您可能在我們上週的公告中看到的那樣，我很高興地告訴大家，我們已經聘請了托尼的繼任者。蒂芙尼梅森 (Tiffany Mason) 在消費者服務、零售和特許經營領域擁有良好的財務領導記錄，這些對我們的業務都至關重要。她最近在高成長的汽車服務公司 Driven Brands 擔任執行副總裁和財務官，推動了強勁的有機和無機成長，並帶領公司成功完成了 IPO。

Prior to that, Tiffany spent 13 years at Lowe’s, a Fortune 50 omni-channel home improvement retailer. Tony and Tiffany are working closely together to ensure a seamless transition, and she will officially step into the role of CFO on September 13.

在此之前，蒂芬妮在財富 50 強全通路家居裝修零售商 Lowe’s 工作了 13 年。 Tony 和 Tiffany 正在密切合作，以確保無縫過渡，她將於 9 月 13 日正式接任財務長。

In addition, as we continue to transform H&R Block into an agile and innovative company that delivers more value to our clients, associates, and shareholders, I’ve also added another key member to our senior leadership team.

此外，隨著我們繼續將 H&R Block 轉型為一家敏捷、創新的公司，為我們的客戶、員工和股東提供更多價值，我還為我們的高階領導團隊增添了另一位關鍵成員。

Scott Manuel joined last week as Chief Strategy and Operations Officer and reports directly to me. Within his role, Scott is overseeing functions essential to driving our long-term enterprise strategy and improving our execution. Scott has a long history of delivering customer-centric innovation in complex and dynamic environments.

斯科特·曼努埃爾 (Scott Manuel) 上週加入，擔任首席策略和營運官，直接向我匯報。在他的職責範圍內，史考特負責監督對於推動我們的長期企業策略和提高我們的執行力至關重要的職能。斯科特在複雜和動態的環境中提供以客戶為中心的創新方面有著悠久的歷史。

He’s an accomplished engineer, has worked in large scale companies and private equity, and across industries, and is steeped in artificial intelligence. I’m thrilled to have Curtis, Tiffany, and Scott join the already strong Senior Leadership Team. With that, Tony, I will now turn it over to you

他是一位出色的工程師，曾在大型公司和私募股權公司以及跨行業工作，並精通人工智慧。我很高興柯蒂斯、蒂芬妮和史考特加入已經很強大的高階領導團隊。這樣，東尼，我現在就把它交給你了

Thank you, Jeff. It's been an incredible journey, and I'm deeply grateful for the career I’ve had at H&R Block. First and foremost, I want to thank our finance department and associates, whose hard work and commitment have been instrumental in driving our success. I also want to extend my gratitude to our Board of Directors, shareholders, and investors for their support and trust.

謝謝你，傑夫。這是一次令人難以置信的旅程，我對我在 H&R Block 的職業生涯深表感謝。首先，我要感謝我們的財務部門和同事，他們的辛勤工作和奉獻精神對推動我們的成功發揮了重要作用。我還要感謝我們的董事會、股東和投資者的支持和信任。

As I look back on my time with the company, I'm immensely proud of what we have accomplished together. I’m confident that Block will continue to drive value for shareholders in the years to come. With that, I will now turn to our fiscal year ‘24 results.

當我回顧我在公司的時光時，我對我們共同取得的成就感到非常自豪。我相信 Block 將在未來幾年繼續為股東創造價值。接下來，我將討論 24 財年的業績。

We delivered $3.6 billion of revenue, an increase of 4% or $138 million, primarily due to a higher net average charge and company-owned volumes in the Assisted category, combined with greater online paid returns at a higher net average charge in DIY, partially offset by lower Emerald Card activity in the current year.

我們實現了36 億美元的收入，成長了4%，即1.38 億美元，這主要是由於輔助類別中較高的淨平均費用和公司擁有的銷量，以及DIY 中較高的淨平均費用帶來的更大的線上付費回報，部分原因是被本年度翡翠卡活動減少所抵消。

Total operating expenses in the year were $2.8 billion, an increase of 3% or $82 million, primarily due to higher labor costs and bad debt expense, partially offset by lower consulting and outsourced services. Interest expense was $79 million, an increase of 8% over prior year due to higher draws on our line of credit and the higher rate environment.

全年總營運費用為 28 億美元，成長 3%，即 8,200 萬美元，主要是由於勞動力成本和壞帳費用增加，但部分被諮詢和外包服務減少所抵消。由於我們的信用額度提取量增加以及利率環境提高，利息支出為 7,900 萬美元，比上年增加 8%。

Pretax income was $762 million, an increase of $51 million, or 7%, primarily due to higher revenues in the current year. Our effective tax rate was 21.6% for the full year versus 21% in the prior year.

稅前收入為 7.62 億美元，增加了 5,100 萬美元，即 7%，主要是由於本年度收入增加。我們全年的有效稅率為 21.6%，而前一年為 21%。

Turning to EBITDA, we delivered $963 million compared to $915 million in the prior year, an increase of more than 5%. We are pleased with another year of growing EBITDA faster than revenue. Earnings per share from continuing operations increased from $3.56 to $4.14, or 16%, while adjusted earnings per share from continuing operations increased from $3.82 to $4.41, or 15%. In FY24, we acquired a total of 158 franchise offices. We feel great about franchisees’ willingness to sell to us and are pleased with how this strategy supports our longer-term revenue and earnings growth.

說到 EBITDA，我們實現了 9.63 億美元的利潤，與前一年的 9.15 億美元相比，成長了 5% 以上。我們對 EBITDA 成長速度快於營收成長的一年感到高興。持續經營業務的每股收益從 3.56 美元增至 4.14 美元，即 16%，而持續經營業務的調整後每股收益從 3.82 美元增至 4.41 美元，即 15%。 2024 財年，我們總共收購了 158 個特許經營辦事處。我們對特許經營商向我們出售產品的意願感到非常滿意，並對這項策略如何支持我們的長期收入和獲利成長感到滿意。

As Jeff shared, our capital allocation story remains strong. Regardless of year-to-year nuances, our disciplined approach drives meaningful value for shareholders. We produce significant and stable cash flow, pay a growing dividend, and buy back a material number of shares.

正如傑夫所說，我們的資本配置故事仍然強勁。無論每年的細微差別如何，我們嚴格的方法都會為股東帶來有意義的價值。我們產生大量穩定的現金流，支付不斷增長的股息，並回購大量股票。

We also today announced a 17% increase in our quarterly dividend to $0.375 per share. Since 2016, we’ve increased the dividend by 88%. In FY24 we completed $350 million of share repurchases at an average price of $43.66, and today we are pleased to announce a new share repurchase authorization of $1.5 billion. Since 2016, we have repurchased more than $2.3 billion, retiring over 89 million shares, or more than 40% of shares outstanding at an average price of $26.74.

今天我們也宣布將季度股息增加 17% 至每股 0.375 美元。自 2016 年以來，我們已將股息增加了 88%。 2024 財年，我們以 43.66 美元的平均價格完成了 3.5 億美元的股票回購，今天我們很高興地宣布新的 15 億美元的股票回購授權。自 2016 年以來，我們已回購超過 23 億美元，以 26.74 美元的平均價格回購了超過 8,900 萬股股票，即超過 40% 的已發行股票。

Now turning to our FY25 outlook, let me begin with context around the assumptions we’ve made. First, we believe the industry growth next year will be in line with historical trends, or about 1%. Second, we assume that we will maintain market share in the overall tax category, but our goal, of course, is always to grow share.

現在轉向我們的 25 財年展望，讓我先介紹我們所做假設的背景。首先，我們認為明年的產業成長將符合歷史趨勢，約1%。其次，我們假設我們將保持在整個稅收類別中的市場份額，但我們的目標當然始終是增加份額。

Third, we expect to continue taking low single digit price, which we successfully executed again this year with customer satisfaction scores remaining strong. Fourth, we expect Wave and Small Business to continue to be revenue growth drivers, and lastly, we will continue to repurchase franchise locations opportunistically.

第三，我們預計將繼續採取較低的個位數價格，今年我們再次成功執行了這一價格，客戶滿意度得分仍然很高。第四，我們預期 Wave 和 Small Business 將繼續成為營收成長的驅動力，最後，我們將繼續機會性地回購特許經營地點。

As a result, our outlook for FY25 is for revenue to be in the range of $3.69 to $3.75 billion. EBITDA to be in the range of $975 million to $1.02 billion. EPS to be in the range of $5.15 to $5.35, which will benefit from an unusually low effective tax rate of approximately 13%.

因此，我們對 2025 財年的營收預期為 369 至 37.5 億美元。 EBITDA 將在 9.75 億美元至 10.2 億美元之間。每股收益將在 5.15 美元至 5.35 美元之間，這將受益於約 13% 的異常低的有效稅率。

The tax rate is positively impacted due to the anticipated closure of various matters under examination and the expiration of statute of limitations. We expect this to contribute approximately $0.50 to EPS in fiscal year ‘25. As we have shared, we have multiple levers to drive annual revenue growth in our targeted range of 3% to 6%, and we believe we can leverage our cost structure for EBITDA to outpace revenue, while utilizing share repurchase to grow EPS even faster. All in all, we are well positioned for fiscal ’25 and beyond.

由於各種正在審查的事項預計將結束以及訴訟時效到期，稅率受到正面影響。我們預計這將為第 25 財年的每股收益貢獻約 0.50 美元。正如我們所分享的，我們有多種槓桿來推動年收入成長在3% 至6% 的目標範圍內，我們相信我們可以利用我們的EBITDA 成本結構來超過收入，同時利用股票回購來更快地增長每股收益。總而言之，我們為 25 財年及以後的財年做好了充分準備。

In closing, it has been an honor to serve as CFO, and I look forward to seeing the company's continued success in the years to come. With that, I will now turn it back over to Jeff for some closing remarks.

最後，我很榮幸擔任財務官，我期待看到公司在未來幾年繼續取得成功。現在，我將把它轉回給傑夫，讓他發表一些結束語。

Thank you, Tony. As I reflect on all that we have accomplished, I am grateful for our associates and team. Every day, we strive to deliver on our purpose of providing help and inspiring confidence in our clients and communities everywhere. I would like to extend a sincere and meaningful thank you to our tax professionals, our franchisees, and our associates who make our success possible. I am looking forward to all we will accomplish in the next year and sharing our Q1 results in November. Now, operator, we will open the line for questions.

謝謝你，托尼。當我回顧我們所取得的一切成就時，我對我們的同事和團隊表示感謝。每一天，我們都努力實現為世界各地的客戶和社區提供幫助並激發信心的目標。我謹向我們的稅務專業人士、我們的特許經營商以及我們的同事致以誠摯而有意義的感謝，是他們使我們的成功成為可能。我期待著我們明年將完成的一切，並在 11 月分享我們的第一季業績。現在，接線員，我們將開通提問線路。

(Operator Instructions) Kartik Mehta,

（操作員說明）Kartik Mehta，

Good afternoon. First of all, Tony, it was a pleasure working with you. Best of luck in your retirement. Jeff, if you look at FY25 and over next tax season and kind of compare to this tax season, what changes do you think that Block use to make to make sure that you maintain your market share on the assisted side?

午安.首先，托尼，很高興與您合作。祝您退休生活順利。傑夫，如果你看看 25 財年和下一個納稅季，並與本納稅季進行比較，你認為 Block 會做出哪些改變來確保你維持在輔助方面的市場份額？

Kartik, thank you. I mean there's no question. And I teed this up a bit in our last call of just the opportunity I saw last year as I traveled in office execution in assisted. We have lots and lots of clients that are choosing the brand, they're making an appointment, they're coming to the office, and we just didn't deliver well enough.

卡蒂克，謝謝你。我的意思是毫無疑問。我在上次電話會議中提到了這一點，去年我在協助辦公室執行時看到了這個機會。我們有很多很多的客戶正在選擇這個品牌，他們正在預約，他們正在來到辦公室，但我們只是交付得不夠好。

And so that's really the focus of the entire team as we go into '25 is how do we improve the experience? How do we better manage expectations? How do we help clients understand the value? And then ultimately, how do we deliver on that? And with a real emphasis on new clients in particular, we saw there's even more opportunity for those people who are coming to us for the first time and don't really understand exactly how the process should work at H&R Block. And so there's many things across all the different businesses that teams are working on. But you know that has everyone's attention for next year.

因此，當我們進入 25 世紀時，整個團隊真正關注的焦點是我們如何改善體驗？我們如何更好地管理期望？我們如何幫助客戶理解價值？最終，我們如何實現這一目標？特別是在真正重視新客戶的情況下，我們發現對於那些第一次來找我們但並不真正了解 H&R Block 的流程應該如何運作的人來說，有更多的機會。因此，團隊正在處理的所有不同業務中都有很多事情。但你知道明年每個人都會關注這一點。

And then turning just on free cash flow. Obviously your free cash flow measure was much higher than net income. I'm assuming depreciation will be higher than CapEx again next year. But any other changes on the operating cash flow line that might impact free cash flow next year?

然後只考慮自由現金流。顯然，您的自由現金流量指標遠高於淨利潤。我假設明年折舊將再次高於資本支出。但營運現金流量線上還有其他可能影響明年自由現金流量的變化嗎？

No. I mean, you're right that depreciation and amortization continues to exceed CapEx, which is why we're generating more than 100% of free cash flow relative to net income. So that trend should continue. As you know, FY23, we had unusually high free cash flow because of some tax benefits that we got. But this year, I'd say it was more of a normal year, I think for free cash flow as defined by cash flow from operations plus CapEx is north of $650 million. I think that's a pretty good run rate number for us going forward.

不，我的意思是，你說得對，折舊和攤提繼續超過資本支出，這就是為什麼我們產生的自由現金流相對於淨利潤超過 100%。因此，這種趨勢應該會持續下去。如您所知，2023 財年，由於我們獲得了一些稅收優惠，我們的自由現金流異常高。但今年，我想說這更像是正常的一年，我認為由營運現金流加上資本支出定義的自由現金流超過 6.5 億美元。我認為這對我們未來來說是一個相當不錯的運行率數字。

Thank you. Appreciate it.

謝謝。欣賞它。

Scott Schneeberger, Oppenheimer.

史考特‧施內伯格，奧本海默。

Thanks very much. Good afternoon. And Tony, I'm going to miss you as well. All the best. And I'll get a question to you, I promise. But starting now, Jeff, high level and looking out to next year, the -- given a little bit of color on what you're expecting, probably the next earnings call is going to be right around the election.

非常感謝。午安.東尼，我也會想念你的。一切順利。我保證，我會問你一個問題。但從現在開始，傑夫，高層，展望明年，考慮到你的預期，下一次財報電話會議可能會在大選前後舉行。

I'm curious how you're thinking about the political outlook and developments in that 1% growth for the industry. Just kind of maybe compare and contrast candidate and other things you're thinking about out there that could influence the tax season next year? And then I'll follow with a quick follow up.

我很好奇您如何看待該行業 1% 成長的政治前景和發展。只是比較和對比候選人和您正在考慮的可能影響明年納稅季的其他事情？然後我將進行快速跟進。

All right. Yes, I'll leave the compare and contrast candidates for the political pundits. And so, you know, it'll happen. And then as we get into whatever happens in terms of who wins, whatever policy changes they may make and how that trickle down and impacts the consumer. I mean, we certainly aren't trying to predict that, but that's where it really starts to potentially have an impact positive, potentially on the business as well.

好的。是的，我將把比較和對比候選人留給政治專家。所以，你知道，這將會發生。然後，當我們討論誰獲勝、他們可能做出什麼政策變化以及這些變化如何影響消費者等方面發生的情況時。我的意思是，我們當然不會試圖預測這一點，但這就是它真正開始產生積極影響的地方，也可能對業務產生積極影響。

So as we think about the season, you know, Tony mentioned we expect it to be a more normal season. Each year, there's always a little something that pops up. I think we have proven and a great ability to respond to whatever those things are.

因此，當我們考慮這個賽季時，托尼提到我們希望這是一個更正常的賽季。每年，總是會有一些小事突然出現。我認為我們已經證明了我們有能力應對這些事情。

1099 case have been on the agenda for a couple of years. We're ready. If it happens, it's not built into the plan. We don't know if it will happen. So that does hang out there, and we'll wait and see. But otherwise, we're most focused on what can we best do to serve our customers and how do we build the best products and experiences to win more people to the brand.

1099案提上議程已有幾年了。我們準備好了。如果發生這種情況，也不會納入計劃。我們不知道它是否會發生。所以這確實存在，我們拭目以待。但除此之外，我們最關注的是如何才能最好地為客戶服務，以及如何打造最好的產品和體驗來贏得更多人使用該品牌。

Thanks. I appreciate that, Jeff. Just one more follow-up for you, and then I'll get to Tony. But Kartik asked about our market share opportunity in assisted and what you can do there? You've done a nice job the last couple of years and do it yourself on the market share front? Is that sustainable? And what are some of the levers you're pulling to trying to keep that position?

謝謝。我很感激，傑夫。請再向您跟進一次，然後我會聯絡托尼。但卡蒂克詢問了我們在輔助領域的市場份額機會以及您可以在那裡做什麼？過去幾年你們做得很好，並且在市場佔有率方面自己做到了？這是可持續的嗎？為了維持這個地位，你採取了哪些手段？

Well, it's been a couple of years of really nice performance as you said. And the key always starts with having an excellent product, you know, and experience that is easy for the consumer. And we feel very good about the product. Of course, there's always things we want to do every year to make it better and better, but that's always the starting point.

嗯，正如你所說，這幾年的表現非常出色。你知道，關鍵總是從擁有優秀的產品以及對消費者來說容易的體驗開始。我們對這個產品感覺非常好。當然，我們每年都想做一些事情來讓它變得越來越好，但這始終是起點。

We have to deliver great value and price competitively. We're doing that. That's obviously a more dynamic conversation as the season unfolds and we see competitive moves. And then the third thing is, you know, we continue to be very aggressive about going after dissatisfied TurboTax clients.

我們必須提供巨大的價值和具有競爭力的價格。我們正在這樣做。隨著賽季的展開，這顯然是一場更充滿活力的對話，我們看到了有競爭力的舉動。第三件事是，您知道，我們繼續非常積極地追求不滿意的 TurboTax 客戶。

And we've made that very easy to switch from. We have been very aggressive in how we market against them. Then you should expect us to follow that recipe but not take anything for granted.

我們已經讓這種切換變得非常容易。我們在針對他們的營銷方式上一直非常積極。那麼你應該期望我們遵循這個秘訣，但不要認為任何事情都是理所當然的。

Great. Thanks. Appreciate that. And then, Tony, congrats again. My question to you is on margin expansion. It looks like got a little bit this year. You referenced growing EBITDA faster than revenue. And the guidance next year appears -- the ranges imply kind of in line. What is the opportunity as you kind of pass the baton to Tiffany. What type of margin expansion can be achieved in years to come? And where might the levers be there? Thanks.

偉大的。謝謝。很欣賞這一點。然後，托尼，再次恭喜。我向您提出的問題是關於利潤率擴張的問題。今年好像有點收穫了。您提到 EBITDA 的成長速度快於營收的成長速度。明年的指導將會出現——這些範圍意味著有點一致。當您將接力棒傳遞給蒂芙尼時，機會是什麼？未來幾年可以實現什麼類型的利潤擴張？槓桿可能在哪裡？謝謝。

Thanks, Scott, and I really appreciated working with you over the years. We've delivered pretty consistently EBITDA growing faster than revenue for a number of years. And we've talked about, you know, if we can hit that 3%-plus revenue number, EBITDA can grow over the long term, 1.5 times that rate.

謝謝，斯科特，我非常感謝這些年來與你的合作。多年來，我們的 EBITDA 成長速度一直快於營收成長速度。我們已經討論過，如果我們能夠達到 3% 以上的收入數字，從長遠來看，EBITDA 可以成長 1.5 倍。

And I think that just takes advantage of the cost structure, takes advantage of cost managing expenses, trying to drive productivity, figuring out ways to invest in the business by taking out costs in other places. And as you said, margins has expanded several years in a row, and I think it will continue.

我認為這只是利用成本結構，利用成本管理費用，試圖提高生產力，找出透過消除其他地方的成本來投資業務的方法。正如您所說，利潤率連續幾年擴大，我認為這種情況將持續下去。

We guided to obviously top line growth again in '25. We guided to EBITDA growing faster than the revenue and EPS growing even faster. So the model is working. There's always your specific nuances one year over another.

我們在 25 年再次引導營收明顯成長。我們指導 EBITDA 的成長速度快於收入的成長速度，而 EPS 的成長速度甚至更快。所以這個模型正在發揮作用。年復一年總會有一些具體的細微差別。

This year we have some ERC credits that we got the benefit of in '24 that aren't continuing in '25. So that it has EBITDA being a little bit lower on a year-over-year basis, but it's still outpacing revenue when you look at the guidance range.

今年，我們在 24 年獲得了一些 ERC 積分，但在 25 年不再繼續。因此，它的 EBITDA 同比略低，但當你查看指導範圍時，它仍然超過收入。

So overall, the model is still working. No inflation has moderated versus what we saw kind of coming out of the pandemic. So that's obviously helpful. We're still seeing things like merit increases and rent go up. But some of those other things like supplies and utilities that were kind of out of control for a few years are now kind of more normal rate. So the model is working, and I think it will continue to work for the foreseeable future.

所以總體而言，該模型仍然有效。與我們在大流行中看到的情況相比，通膨並未放緩。所以這顯然是有幫助的。我們仍然看到諸如績效增加和租金上漲之類的事情。但其他一些事情，例如供應和公用事業，幾年來一直處於失控狀態，現在已經是比較正常的水平了。所以這個模型正在發揮作用，我認為在可預見的未來它將繼續發揮作用。

Great. Thanks, Tony.

偉大的。謝謝，托尼。

George Tong, Goldman Sachs.

喬治唐，高盛。

Hi, thanks. Good morning or good afternoon. I'd also like to extend the thanks and congrats to Tony. Best wishes ahead.

你好，謝謝。早安或下午好。我還要向托尼表示感謝和祝賀。祝一切順利。

Thank you. I appreciate it.

謝謝。我很感激。

Yes. So you mentioned that looking at the outlook, industry volumes, you're expecting to be up 1%. Can you break that down into expectations for the Assisted and DIY categories, how fast you expect both of those to grow in 2025 tax season?

是的。您提到，從前景和行業銷售來看，您預計會成長 1%。您能否將其分解為對輔助類別和 DIY 類別的預期，您預計這兩個類別在 2025 年納稅季的成長速度有多快？

Yes. I mean, I don't think our expectations for this upcoming season are different than what we would have thought over the last several years. Obviously, this most recent one was a little bit unusual because of the California extension causing some kind of rebound this most recent tax season.

是的。我的意思是，我認為我們對即將到來的賽季的期望與過去幾年的期望沒有不同。顯然，最近的這次有點不尋常，因為加州的延期導致最近的納稅季出現了某種反彈。

But I think going into next year, we expect DIY to grow a little bit faster than assisted. I think that's consistent with the longer-term trend. Overall industry growth of 1% probably means DIY growing a couple of percent, assisted slightly up. I think that's been our mantra for a long time. And I think overall, you know, year to year you might have slight nuances. But over the longer term, that's been the trend.

但我認為進入明年，我們預計 DIY 的成長速度會比輔助成長快一些。我認為這符合長期趨勢。整體產業成長 1% 可能意味著 DIY 成長幾個百分點，略有上升。我認為這一直是我們的口頭禪。我認為總的來說，你知道，每年你可能會有細微的差別。但從長遠來看，這就是趨勢。

Okay. Got it. That's helpful. And then with respect to the goal to maintain market share, is that -- how much of that is a reflection of overall tax volumes versus individually on assisted and DIY? In other words, would you expect to be gaining share in DIY? Is that the base case assumed in guidance? And is the guide -- does the guidance also assume assisted market shares stable?

好的。知道了。這很有幫助。然後，關於維持市場佔有率的目標，其中有多少是整體稅收量的反映，而不是單獨對輔助和 DIY 的稅收量？換句話說，您希望在 DIY 領域獲得更多份額嗎？這是指南中假設的基本情況嗎？該指引是否也假設輔助市場佔有率穩定？

Yes, I think we start with we want to make sure we maintain overall share. And we want to make sure that we're serving as many as many customers as the category is growing. And obviously, we did that in this most recent year. So that's a starting place.

是的，我認為我們首先要確保保持整體份額。我們希望確保我們服務的客戶數量與該類別的成長一樣多。顯然，我們在最近一年就做到了這一點。這是一個起點。

And then obviously, given the trends in our assisted business over the last few years, we know that that's more of a headwind. And DIY has got a lot of tailwinds. So we know that wouldn't be surprising. But as Jeff said, we're making a lot of changes in focus in the assisted channel to try to get back to flat share. So that's definitely the goal, but it's current expectation overall share being flat across the tax category is the base expectation.

顯然，考慮到過去幾年我們協助業務的趨勢，我們知道這更像是一個逆風。 DIY 也有很多順風車。所以我們知道這並不奇怪。但正如傑夫所說，我們正在對輔助管道的重點進行很多改變，以嘗試恢復持平份額。所以這絕對是目標，但目前預期整個稅收類別的整體份額持平是基本預期。

Got it. That's helpful. And just one more quick follow up on our initiatives to drive higher stable or higher market share in assisted. I know last year the trying to maintain market share was a big area of focus for assisted, and you've tried a number of initiatives. I guess how will the approach this year be different than last year? Given last year you had such a big focus on maintaining market share in assisted as well?

知道了。這很有幫助。這只是我們為推動輔助領域更高的穩定性或更高的市場份額而採取的舉措的又一快速跟進。我知道去年試圖保持市場份額是輔助的一個重點領域，並且您已經嘗試了許多舉措。我想今年的做法與去年有何不同？鑑於去年您也非常注重維持輔助市場佔有率？

Yes, you're exactly right. We did and we will for sure. I mean, last year, we were able to slow the decline among EITC filers. So we did see progress there. That's good news, but it's not enough. And some of the things I mentioned about converting more of the people who are choosing us and starting with us, it is really what is a big shift for this year.

是的，你說得完全正確。我們做到了，而且我們肯定會這樣做。我的意思是，去年，我們能夠減緩 EITC 申報者的下降速度。所以我們確實看到了進展。這是個好消息，但這還不夠。我提到的一些關於改變更多選擇我們並從我們開始的人的事情，這確實是今年的一個重大轉變。

And as I mentioned a couple of times already, George, I mean, when we look at the customer journey and the fact that they're choosing us and they're coming and they're starting with us, the two big reasons that they didn't finish last year had a lot to do with, they were new clients to block. They didn't fully understand how the process was going to work. We didn't do a good enough job communicating and welcoming them to the brand. And that's a breakdown and execution.

正如我已經提到過幾次，喬治，我的意思是，當我們審視客戶旅程時，以及他們選擇我們、他們來了、他們從我們開始的事實，這是他們選擇我們的兩大原因。沒有完成有很大關係，他們是要阻止的新客戶。他們並不完全理解這個過程將如何進行。我們在溝通和歡迎他們加入品牌方面做得不夠好。這就是分解和執行。

So what the team has been working on is real changes to the client experience in the office. We think about before during and after-tax prep, and then specifically within into selling new clients on which we know is an extra area of emphasis.

因此，團隊一直致力於真正改變客戶在辦公室的體驗。我們考慮稅前、稅中和稅後準備，然後特別考慮銷售新客戶，我們知道這是一個額外重點的領域。

Very helpful. Thank you very much.

非常有幫助。非常感謝。

Thanks, George.

謝謝，喬治。

Alex Paris, Barrington Research.

亞歷克斯·帕里斯，巴靈頓研究中心。

I'd like to add my congratulations to Tony. We'll definitely miss you. And I just wanted to say to Tiffany, who I'm sure is listening, we look forward to working with you. So just to dive a little bit more into the fiscal 2025 guidance, you basically have revenue growth at 3%, EBITDA growth at 4%, and adjusted EPS growth at about 8%. So the first question is, what sort of assumption do you have for share repurchases in fiscal 2025?

我想向托尼表示祝賀。我們一定會想念你的。我只想對蒂芙尼說，我們期待與您合作，我相信她正在傾聽。因此，為了更深入了解 2025 財年的指導，您基本上可以看到營收成長 3%，EBITDA 成長 4%，調整後每股盈餘成長約 8%。那麼第一個問題是，您對 2025 財年的股票回購有何假設？

Yes. I mean, we obviously we don't share the specific number that we're targeting, but obviously, we've assumed some share repurchase, which is obviously driving EPS benefit obviously. Some of the share repurchase we did even in '24 gives us a benefit going into 25 as well.

是的。我的意思是，我們顯然沒有透露我們的目標具體數字，但顯然，我們已經假設了一些股票回購，這顯然明顯推動了每股盈餘的成長。我們在 24 年進行的一些股票回購也為我們在 25 年帶來了好處。

But I think you should expect us to be on a trend that's similar to what we've done the last several years. And obviously, we're trying to be opportunistic and take advantage of volatility in the stock price. It naturally happens over time, but I think our approach will be very consistent with what you've seen in the last several years.

但我認為你應該期望我們的趨勢與過去幾年的情況類似。顯然，我們正在嘗試機會主義並利用股價的波動。隨著時間的推移，這種情況自然會發生，但我認為我們的方法將與您在過去幾年中看到的非常一致。

Great. And then as seasonally refresh my memory, you do more of your share repurchase in the first half of the fiscal year?

偉大的。然後，隨著季節性的刷新我的記憶，你們在本財年上半年進行了更多的股票回購？

That's right. We typically come out of this call and have a focus on it. So in Q1 and into Q2, and we do that for a couple of reasons. One is we get a better EPS benefit that earlier we bite in the year. Secondly, we're typically in blackout a lot of time during tax season. So for that reason, we tried to do most of it in the first half of the year.

這是正確的。我們通常會在電話會議結束後集中註意力。因此，在第一季和第二季度，我們這樣做有幾個原因。一是我們獲得了比今年稍早更好的每股盈餘。其次，在報稅季節，我們通常會有很多時間處於停電狀態。因此，我們嘗試在上半年完成大部分工作。

It isn't always the case. There have been years where we've done 10b5-1 programs that we've executed during tax season. We've done open market purchases coming out of tax season. So it's not always the case, but generally, we tried to do it in the first half of the year.

情況並非總是如此。多年來，我們在納稅季節執行了 10b5-1 計劃。我們在報稅季結束後進行了公開市場購買。所以情況並不總是如此，但一般來說，我們在上半年嘗試這樣做。

Great. Thank you. And then it's regarding the long-term growth algorithm for fiscal 2025, you're kind of at the low end of that revenue range, I assume there's some conservatism built into that. The adjusted EBITDA is definitely growing, or EBITDA is growing faster than revenue. But I think you said it earlier and perhaps in response to your question, you have some not ERC numbers that are not going to repeat this year versus last year. Is that the entire explanation for the slightly lower EBITDA growth rate than I would expect But with all that said, I just want to be clear, I realize your guidance is above consensus.

偉大的。謝謝。然後是關於 2025 財年的長期成長演算法，你處於該收入範圍的低端，我認為其中存在一些保守主義。調整後的 EBITDA 肯定在成長，或者說 EBITDA 的成長速度快於營收的成長速度。但我認為您之前說過，也許是為了回答您的問題，您有一些非 ERC 數字，今年與去年相比不會重複。這就是 EBITDA 成長率略低於我預期的全部解釋嗎？

Yes, the employee retention credit is about a $15 million impact. So I definitely push EBITDA quite a bit higher if it wasn't for that that roll-off that we received in '24. But regardless, as you said, we tried to set these numbers in a level we can achieve. And the fact that the top line is even if it's a lower end of the range is still in the range.

是的，員工保留信用的影響約為 1500 萬美元。因此，如果不是因為我們在 24 年收到的下滑，我肯定會將 EBITDA 推得更高一些。但無論如何，正如您所說，我們試圖將這些數字設定在我們可以達到的水平。事實上，頂線即使是範圍的下限，仍然在範圍內。

Top end of the EBITDA number is over $1 billion on the guidance range, which is an incredible feat. Obviously, EPS has benefited from the much lower tax rate, which I talked about in the opening comments. In fact, we exceeded $4 even on an adjusted or a regular GAAP basis and EPS in '24 and now guiding to a number that's over $5, even if it's benefited from tax rate is in the credit.

EBITDA 數字的上限在指導範圍內超過 10 億美元，這是一個令人難以置信的壯舉。顯然，每股收益受益於低得多的稅率，我在開場評論中談到了這一點。事實上，即使在調整後或常規的 GAAP 基礎上，我們在 24 年的每股收益也超過了 4 美元，現在的指導數字超過了 5 美元，即使它受益於稅收優惠。

P&L nuances, if you will, but the trajectory remains the same, which is up and to the right.

如果你願意的話，損益表會有細微差別，但軌跡保持不變，即向上且向右。

Even with that expected one-time $0.5 per share gain as a result of the tax benefit, the adjusted EPS guidance, excluding that benefit is still above consensus. I wanted to ask you about the that tax benefit. Is there a particular quarter that you expect that to hit or is that going to hit evenly over the four quarters?

即使因稅收優惠而預期每股收益為 0.5 美元，調整後的每股收益指引（不包括該優惠）仍然高於共識。我想問你關於稅收優惠的事。您是否預計某個特定季度會出現這種情況，或者在四個季度中會均勻地出現這種情況嗎？

No, it'll hit in a particular quarter once we resolve the open audit and kind of the statutes expire. We're not exactly sure which quarter that will be yet. Could be Q2 could be later in the year, but it will definitely happen, we believe, in the fiscal year, which is why we included in the guidance range.

不，一旦我們解決了公開審計並且某種法規到期，它將在特定季度發生。我們還不確定具體是哪個季度。第二季度可能會在今年晚些時候，但我們相信，這肯定會在本財年發生，這就是我們將其納入指導範圍的原因。

So will you answer that question? It's unlikely in Q1, it's going to be Q2 or later in the year?

那你會回答這個問題嗎？第一季不太可能，第二季或今年稍晚吧？

Yes, it's possible that we just we aren't in complete control of when that's going to happen, but it will happen by the end of the fiscal year.

是的，我們可能無法完全控制何時發生這種情況，但它會在本財政年度結束時發生。

And then I think my last question for you is California. You got a little benefit in fiscal '24 because of the extent of the extended deadline from April 15 to October 15 as I recall. How much did that contribute to that extra bolus of revenue from the California? Because I'm assuming you got two boluses of revenue from California last fall and then this spring. What's the grow over for fiscal 2025 because of that?

我想我要問你的最後一個問題是加州。我記得，由於 4 月 15 日至 10 月 15 日的延長期限，您在 24 財年獲得了一些好處。這對加州的額外收入貢獻了多少？因為我假設你去年秋天和今年春天從加州獲得了兩筆收入。因此，2025 財年的成長是多少？

Yes. I mean, maybe the way to think about it is how much it drove the industry volume. And as you saw, the assisted category was probably up about a point more because of that California extension in the prior year. So you think that's driving a point of volume.

是的。我的意思是，也許思考它的方式是它對行業數量的推動程度。正如您所看到的，由於去年加州的延期，援助類別可能增加了約一個百分點。所以你認為這推動了成交量的成長。

But obviously not all of that is that doesn't equal a point of revenue. So it's probably 75% of that from a revenue perspective. So three-quarters of 1 point of revenue, about 1 point of industry, the tax prep volume.

但顯然並非所有這些都不等於收入點。所以從收入的角度來看，這可能是其中的 75%。因此，四分之三的1點收入，大約1點工業，稅收準備量。

Great. Super helpful, guys.

偉大的。非常有幫助，夥計們。

Thanks again.

再次感謝。

Thank you. I would now like to turn the conference back to Michaella Gallina for closing remarks.

謝謝。現在我想請米凱拉·加利納 (Michaella Gallina) 致閉幕詞。

Thanks, everyone, for joining us. We'll look forward to speaking with next quarter.

謝謝大家加入我們。我們期待與下個季度進行交談。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。