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Oct 31, 2020
HealthEquity Q3 2021 Earnings Report
HealthEquity reported growth and profitability, driven by increased revenue and effective cost management.
Key Takeaways
HealthEquity reported a 14% increase in revenue to $179.4 million and net income of $1.8 million, or $0.02 per diluted share, for the third quarter ended October 31, 2020. The company's HSA count grew by 9% year-over-year to 5.5 million, and total HSA assets increased by 19% to $12.4 billion.
Revenue increased by 14% to $179.4 million compared to Q3 FY20.
Net income was $1.8 million, with non-GAAP net income reaching $32.2 million.
HSA count grew to 5.5 million, a 9% increase year-over-year.
Total HSA assets increased by 19% to $12.4 billion compared to Q3 FY20.
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, 2021, management expects revenues of $725 million to $731 million, net loss or income between net loss of $5 million and net income of $2 million, non-GAAP net income between $116 million and $121 million, and Adjusted EBITDA of $232 million to $238 million.
Positive Outlook
- Revenues of $725 million to $731 million are expected.
- Net loss or income is projected to be between a net loss of $5 million and a net income of $2 million.
- Non-GAAP net income is expected to be between $116 million and $121 million.
- Non-GAAP net income per diluted share is projected to be $1.55 to $1.61.
- Adjusted EBITDA is expected to be between $232 million and $238 million.
Challenges Ahead
- The outlook includes potential impacts from the ongoing COVID-19 pandemic.
- Uncertainty in healthcare programs and expenditures could affect results.
- The company's ability to achieve synergies from the WageWorks acquisition may influence future performance.
- Competition in the healthcare and benefits administration industry poses a risk.
- Cybersecurity breaches and data interruptions could negatively impact operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income