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Jul 31, 2022

HealthEquity Q2 2023 Earnings Report

HealthEquity's financial results for Q2 2023 were announced, revealing a mix of revenue growth and net losses.

Key Takeaways

HealthEquity reported a 9% increase in revenue to $206.1 million, driven by growth in service, custodial, and interchange revenue. The company experienced a net loss of $10.7 million, or $0.13 per diluted share, while non-GAAP net income was $28.1 million, or $0.33 per diluted share. The number of HSAs grew by 26% to 7.5 million, and total HSA assets increased by 33% to $20.5 billion.

Revenue increased by 9% to $206.1 million compared to Q2 FY22.

Net loss was $10.7 million, with a net loss per diluted share of $0.13.

Non-GAAP net income was $28.1 million, with non-GAAP net income per diluted share of $0.33.

Total HSAs grew by 26% to 7.5 million and Total HSA Assets increased by 33% to $20.5 billion.

Total Revenue
$206M
Previous year: $189M
+9.0%
EPS
$0.33
Previous year: $0.4
-17.5%
Total HSAs
7.5M
Previous year: 6M
+25.0%
HSAs with investments
516K
Previous year: 402K
+28.4%
Total Accounts
14.5M
Previous year: 13.1M
+10.7%
Gross Profit
$118M
Previous year: $112M
+5.2%
Cash and Equivalents
$177M
Previous year: $754M
-76.5%
Free Cash Flow
$38.9M
Previous year: $33.4M
+16.6%
Total Assets
$3.07B
Previous year: $3.15B
-2.4%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2023, management expects revenues of $834 million to $844 million. Its outlook for net loss is between $43 million and $36 million, resulting in net loss of $0.51 to $0.43 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $103 million and $111 million, resulting in non-GAAP net income per diluted share of $1.23 to $1.32 (based on an estimated 84 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $252 million to $262 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income