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Apr 30, 2021
HealthEquity Q1 2022 Earnings Report
HealthEquity's first quarter results were reported, showing a slight decrease in revenue and a net loss compared to the previous year, but with growth in HSAs and total HSA assets.
Key Takeaways
HealthEquity reported a decrease in revenue and a net loss for the first quarter of fiscal year 2022. While revenue decreased by 3% to $184.2 million, the company saw a 9% increase in the number of HSAs to 5.8 million and a 31% increase in total HSA assets to $15.0 billion. The company also completed its acquisition of Luum and entered into agreements to acquire Further and transition the Fifth Third Bank HSA portfolio.
Revenue decreased by 3% to $184.2 million compared to the same quarter last year.
Net loss was $2.6 million, a shift from the $1.8 million net income in the first quarter of the previous fiscal year.
The company sold 5,750,000 shares of common stock, yielding net proceeds of $456.6 million.
Total HSAs increased by 9% to 5.8 million, and total HSA assets increased by 31% to $15.0 billion.
HealthEquity
HealthEquity
HealthEquity Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.comCustodial Revenue
CapyFin.comInterchange Revenue
CapyFin.com Forward Guidance
For the fiscal year ending January 31, 2022, HealthEquity expects revenues of $755 million to $765 million, a net loss between $19 million and $15 million, non-GAAP net income between $122 million and $126 million, and Adjusted EBITDA of $241 million to $247 million. This outlook does not include any potential impact from the acquisitions of Further or the Fifth Third Bank HSA portfolio.
Positive Outlook
- Revenue outlook between $755 million and $765 million.
- Non-GAAP net income outlook between $122 million and $126 million.
- Adjusted EBITDA outlook between $241 million and $247 million.
- Expects non-GAAP net income per diluted share of $1.45 to $1.50.
- Based on an estimated 84 million diluted weighted-average shares outstanding.
Challenges Ahead
- Net loss outlook between $19 million and $15 million.
- Net loss of $0.23 to $0.18 per diluted share.
- Outlook does not include any potential impact from the acquisitions of Further or the Fifth Third Bank HSA portfolio.
- Achieved approximately $65 million of the approximately $80 million in annualized ongoing net synergies expected to achieve by the end of fiscal year 2022.
- Past performance is not necessarily indicative of future results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income