HealthEquity Q3 2021 Earnings Report
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
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