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Apr 30, 2023

HealthEquity Q1 2024 Earnings Report

HealthEquity demonstrated growth and profitability, driven by an increase in new HSA members and improved Adjusted EBITDA margin.

Key Takeaways

HealthEquity reported a 19% increase in revenue, reaching $244.4 million for the first quarter ended April 30, 2023. Net income was $4.1 million, a significant improvement from the previous year's net loss of $13.6 million. The company added 134,000 new HSA members and increased its Adjusted EBITDA margin by 700 basis points year-over-year.

Revenue increased by 19% to $244.4 million compared to Q1 FY23.

Net income was $4.1 million, a significant turnaround from the $13.6 million net loss in Q1 FY23.

Non-GAAP net income increased by 89% to $42.8 million compared to Q1 FY23.

The company added 134,000 new HSA members during the quarter.

Total Revenue
$244M
Previous year: $206M
+18.8%
EPS
$0.5
Previous year: $0.27
+85.2%
Total HSAs
8M
Previous year: 7.4M
+8.1%
HSAs with Investments
556K
Previous year: 506K
+9.9%
Total Accounts
15M
Previous year: 14.5M
+3.4%
Gross Profit
$148M
Previous year: $111M
+33.0%
Cash and Equivalents
$226M
Previous year: $161M
+39.9%
Free Cash Flow
$31.4M
Previous year: $5.92M
+430.3%
Total Assets
$3.04B
Previous year: $3.07B
-1.0%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2024, HealthEquity expects revenue of $975 million to $985 million and net income between $9 million and $14 million, resulting in net income of $0.10 to $0.16 per diluted share. Non-GAAP net income is projected to be between $164 million and $171 million, or $1.88 to $1.97 per diluted share. Adjusted EBITDA is expected to be $333 million to $343 million.

Positive Outlook

  • Revenue is projected to be between $975 million and $985 million.
  • Net income is expected to be between $9 million and $14 million.
  • Non-GAAP net income is projected to be between $164 million and $171 million.
  • Adjusted EBITDA is expected to be between $333 million and $343 million.
  • Non-GAAP net income per diluted share is projected to be $1.88 to $1.97.

Revenue & Expenses

Visualization of income flow from segment revenue to net income