Block is going to be more selective in its pursuit of paying customers. And the company's leaving Wal-Mart after tax season in 300 stores could reflect the move for a better margin mix. It also parted company with Sears last year.

"Not all clients generate the same economics for the business," Cobb told call participants. Noting that the number of assisted clients was down 3-percentage points from fiscal 2012, he continued that Block's business is "not just about increasing clients.  We will be evaluating driving a better mix of high-value clients" to its tax preparation services. He also did not state whether the goal is to drive them to stores, online tax preparation services or both.

With overall tax filings for the United States down 1 percent, Block described the last tax season with the word that has come from most company's providing services or software - tough. Net income did well because of what the company said were greater than expected savings from the year's cost cutting. The bottom line for 2013 was $465 million, an increase of 34.4 percent from $346 million in net income for 2012. However, revenue nudged up only a half a percentage point to just over $2.9 billion from $2.89 billion.

Cobb initially focused on digital returns in which he said Block had increased market share at the expense of its main competitor. "I am pleased we grew and took share from Intuit for the third consecutive year in the digital category," he said. Cobb reiterated past claims that the growth in digital tax preparation is stalling since there are fewer manual preparers to convert.