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Jul 31, 2020

HealthEquity Q2 2021 Earnings Report

Reported strong second quarter results, driven by revenue growth and increased synergy target.

Key Takeaways

HealthEquity reported a strong second quarter with a 103% increase in revenue to $176.0 million. The company achieved $60.0 million in adjusted EBITDA and sequential growth in HSA assets by over $700 million. They also raised their net synergy target to $80 million.

Revenue increased by 103% to $176.0 million compared to the previous year.

Net loss was $0.1 million, while non-GAAP net income reached $30.1 million.

Adjusted EBITDA increased by 48% to $60.0 million.

Total HSAs grew to 5.4 million, a 29% increase year-over-year.

Total Revenue
$176M
Previous year: $86.6M
+103.2%
EPS
$0.42
Previous year: $0.45
-6.7%
Total HSAs
5.4M
Previous year: 4.16M
+29.7%
HSAs with investments
284K
Previous year: 187K
+51.9%
Total Accounts
12.5M
Previous year: 4.84M
+158.1%
Gross Profit
$102M
Previous year: $58.4M
+74.2%
Cash and Equivalents
$269M
Previous year: $815M
-67.0%
Free Cash Flow
$52.2M
Previous year: $29.1M
+79.1%
Total Assets
$2.66B
Previous year: $1.1B
+142.6%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2021, management expects revenues of $720 million to $730 million. Its outlook is for net loss between $13 million and $5 million, resulting in net loss per diluted share of $0.17 to $0.08. Its outlook for non-GAAP net income is between $111 million and $119 million, resulting in non-GAAP net income per diluted share of $1.48 to $1.58. Management expects Adjusted EBITDA of $226 million to $236 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income