H&R Block, Inc. (NYSE:HRB) Q1 2021 Earnings Conference Call - Final Transcript

Sep 01, 2020 • 04:30 pm ET


H&R Block, Inc. (NYSE:HRB) Q1 2021 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the H&R Block First Quarter Fiscal 2021 Earnings Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your host, Vice President, Finance and Investor Relations, Colby Brown. Sir, please go ahead.

Colby Brown

Thank you. Good afternoon, everyone, and thank you for joining us to discuss our first quarter fiscal 2021 results. On the call today are Jeff Jones, our President and CEO; and Tony Bowen, our CFO. We've posted today's press release on the Investor Relations website at hrblock.com. Also on the website, you will find a link for the webcast containing today's presentation, which will be posted after this call. Some of the figures that we'll discuss today are presented on a non-GAAP basis. We've reconciled the comparable GAAP and non-GAAP figures in the schedules attached to our press release.

Before we begin our prepared remarks, I'll remind everyone that this call will include forward-looking statements as defined under the securities laws. Such statements are based on current information and management's expectations as of this date and are not guarantees of future performance. Forward-looking statements involve certain risks, uncertainties and assumptions that are difficult to predict. As such, our actual outcomes and results could differ materially. You can learn more about these risks in our Form 10-K for fiscal 2020 and our other SEC filings. H&R Block undertakes no obligations to publicly update these risk factors or forward-looking statements.

At the conclusion of our prepared remarks, we'll have a Q&A session. [Operator Instructions]

With that, I'll now turn the call over to Jeff.

Jeffrey J. Jones II

Thank you, Colby. Good afternoon, everyone, and thanks for joining us. When we last talked, we were in the middle of what was the most unique tax season in history. The pandemic resulted in the first-ever extension of the filing deadline and changes to nearly every aspect of our operating model. Throughout the season, our teams demonstrated agility and resilience. We adapted to an ever-changing environment and we delivered for our clients when they needed us the most.

The result was a strong finish, growing revenues 300% in the quarter and serving more clients than last tax season. We've also made progress in other areas of our business. Our results at Wave have steadily improved, as they returned to double-digit percentage revenue growth, following the initial disruption caused by the pandemic. After the close of the quarter, we also successfully issued long-term debt and signed an important agreement with MetaBank to be the provider of our suite of financial products. These developments have resulted in a great start to our fiscal year, as we continue to build positive momentum in the business.

With that backdrop, there's obviously a lot of ground to cover on today's call. First, I'll talk about the recently completed tax season, providing perspectives on both our performance and the overall industry. Then I'll give some thoughts on