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Apr 30, 2020

HealthEquity Q1 2021 Earnings Report

HealthEquity's first quarter results for fiscal year 2021 showed significant revenue growth and an increase in key account metrics.

Key Takeaways

HealthEquity reported a strong first quarter with a 118% increase in revenue to $190.0 million. The company saw growth in HSAs, total HSA assets, and total accounts. While net income increased, the company withdrew its full-year fiscal 2021 guidance due to the COVID-19 pandemic.

Revenue increased by 118% to $190.0 million compared to the previous year.

Net income was $1.8 million, with non-GAAP net income reaching $30.8 million.

The number of HSAs grew by 33% to 5.4 million.

Total HSA assets increased by 38% to $11.5 billion.

Total Revenue
$190M
Previous year: $87.1M
+118.3%
EPS
$0.43
Previous year: $0.41
+4.9%
Total HSAs
5.4M
Previous year: 4.05M
+33.2%
HSAs with investments
245K
Previous year: 177K
+38.4%
Total Accounts
12.7M
Previous year: 4.72M
+168.8%
Gross Profit
$108M
Previous year: $57.8M
+87.1%
Cash and Equivalents
$171M
Previous year: $329M
-48.0%
Free Cash Flow
$7.52M
Previous year: $24.2M
-69.0%
Total Assets
$2.56B
Previous year: $597M
+329.5%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

Due to uncertainty regarding the pace of reopening during the COVID-19 pandemic, the Company is withdrawing its full-year fiscal 2021 guidance. For the fiscal second quarter ending July 31, 2020, management expects revenues of $168 million to $173 million.

Positive Outlook

  • N/A

Challenges Ahead

  • Net loss outlook between $20 million and $15 million, resulting in net loss per diluted share of $0.27 to $0.21.
  • Non-GAAP net income outlook is between $17 million and $22 million, resulting in non-GAAP net income per diluted share of $0.23 to $0.30.
  • Adjusted EBITDA is expected to be $42 million to $48 million.
  • The COVID-19 pandemic’s negative effect on operating performance.
  • Uncertainty regarding the pace of reopening during the COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income