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Oct 31, 2021
HealthEquity Q3 2022 Earnings Report
HealthEquity experienced a mixed quarter with revenue slightly increasing, a net loss reported, but strong HSA growth and strategic acquisitions finalized.
Key Takeaways
HealthEquity reported a slight revenue increase to $180.0 million, but experienced a net loss of $5.0 million, contrasting with a net income of $1.8 million in the same quarter last year. Non-GAAP net income was $28.9 million. The company saw a 14% increase in HSAs to 6.2 million and a 32% increase in total HSA assets to $16.4 billion. Key acquisitions of Fifth Third Bank HSA portfolio and Further were completed during and after the quarter.
Revenue increased slightly to $180.0 million, up less than 1% year-over-year.
Net loss was $5.0 million, a significant change from the $1.8 million net income in Q3 FY21.
Total HSAs grew by 14% to 6.2 million, with total HSA assets increasing by 32% to $16.4 billion.
Completed acquisition of Fifth Third Bank HSA portfolio and Further, adding a substantial number of new HSAs.
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, 2022, HealthEquity anticipates revenues between $750 million and $755 million, a net loss between $36 million and $33 million, and non-GAAP net income between $108 million and $112 million. Adjusted EBITDA is expected to be between $230 million and $235 million. This outlook includes the impact of recent acquisitions and financing activities.
Positive Outlook
- Revenue expected to be between $750 million and $755 million.
- Non-GAAP net income anticipated between $108 million and $112 million.
- Adjusted EBITDA projected to be between $230 million and $235 million.
- Outlook includes impact of Fifth Third Bank HSA portfolio acquisition.
- Outlook includes impact of Further acquisition.
Challenges Ahead
- Net loss expected to be between $36 million and $33 million.
- Includes impact of $600 million aggregate principal amount of 4.50% Senior Notes.
- Includes impact of refinanced credit facility.
- WageWorks integration synergies are expected to reach approximately $75 million of the approximately $80 million by the end of fiscal year 2022.
- Uncertainty in healthcare environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income