H&R Block, Inc. (NYSE:HRB) Q1 2021 Earnings Conference Call - Final Transcript
Sep 01, 2020 • 04:30 pm ET
[Operator Instructions] Our first question comes from the line of Kartik Mehta of Northcoast Research. Your question, please.
Hi, Jeff and Tony. I guess, Tony, maybe just to start off with your thoughts on margins as we go forward. I know FY '20 was an odd year. But if you kind of look at FY '19 as a base year, as we move forward and get to more of a normal tax season, what do you anticipate for EBITDA margin?
Thanks, Kartik. We're not going to provide a long-term outlook today. But obviously, as we grow the business both on the topline and then grow EBITDA obviously, we would expect EBITDA margin to grow with it. And that's really what we're focused on. Well, it's starting this year and in the future is investing where we need to invest to continue to grow. And then as we grow the topline, that resulting in improvement on the margin as well. We've talked about how -- we now have a specific goal of getting EBITDA margin to a specific number over the next several years, but it's more in growing that topline, which will eventually grow the bottom line as well.
And Jeff, I know this question you could probably take an hour to answer. So I apologize for it, but maybe if you could just give some highlights. As you see more of the business migrate from traditional face-to-face to virtual, what kind of benefits could that have for H&R Block?
Jeffrey J. Jones II
Yeah, Kartik. Thanks. And we could spend a lot of time, but I think the first thing I would say is we're obviously building a kind of platform of capabilities that mean a lot of different things, right. It means everything from digital upload of your docs, a proven pay online, get help as the DIY filer, upload with mobile, and let us to do all the work for you. So, there is really an array of products. Obviously, the Number 1 benefit is to the customer and continuing to make this experience as easy and personalized as possible. From our perspective, we're building these capabilities really ahead of consumer demand. We're seeing high growth rates, but still a relatively low base, but we're getting great feedback from clients about the products. We're attracting a new younger client to the brand. Those are all positives.
On the operating side, when we look into the future, this is not a '21 thing, but it's in the future. The more that we're able to serve clients virtually in whatever way that means, it means we have an opportunity to look closer at efficiency in both our utilization of our experts and at the physical footprint. And over the next several years, that has potential to be real benefit to us, while we're also driving value for the customer.
Thank you very much. I appreciate it.
Jeffrey J. Jones II
Yeah. Good to hear from you.
Thank you. Our next question comes from the line of Jeff Goldstein