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Sep 30, 2022

H&R Block Q1 2023 Earnings Report

Reported first quarter fiscal year 2023 results, meeting expectations and reiterating full year outlook.

Key Takeaways

H&R Block's first quarter fiscal 2023 results were in line with expectations, with extension conversions increasing 5% over the prior year. The company repurchased $219.8 million of shares and reaffirmed its fiscal year 2023 outlook.

Q1 performance met expectations, and extension conversions increased 5% over the prior year

Reiterated fiscal year 2023 outlook

Repurchased $219.8 million of shares, retiring another 3% of shares outstanding

Block Advisors launched a new self-serve business formation product

Total Revenue
$180M
Previous year: $193M
-6.6%
EPS
-$0.99
Previous year: -$0.78
+26.9%
Gross Profit
$19.7M
Previous year: $208M
-90.5%
Cash and Equivalents
$323M
Previous year: $892M
-63.8%
Free Cash Flow
-$338M
Previous year: -$328M
+2.9%
Total Assets
$2.56B
Previous year: $3.37B
-24.0%

H&R Block

H&R Block

H&R Block Revenue by Segment

Forward Guidance

The Company continues to expect: •Revenue to be in the range of $3.535 to $3.585 billion •EBITDA3 to be in the range of $915 to $950 million •Effective tax rate to be approximately 22% •Adjusted Diluted Earnings Per Share3 to be in the range of $3.70 to $3.95 •Double-digit Adjusted Diluted Earnings Per Share3 growth annually through 2025

Positive Outlook

  • Revenue to be in the range of $3.535 to $3.585 billion
  • EBITDA to be in the range of $915 to $950 million
  • Effective tax rate to be approximately 22%
  • Adjusted Diluted Earnings Per Share to be in the range of $3.70 to $3.95
  • Double-digit Adjusted Diluted Earnings Per Share growth annually through 2025

Revenue & Expenses

Visualization of income flow from segment revenue to net income