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HealthEquity
🇺🇸 NASDAQ:HQY
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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.

Total Revenue
$180M
Previous year: $179M
+0.3%
EPS
$0.35
Previous year: $0.41
-14.6%
Total HSAs
6.2M
Previous year: 5.5M
+12.7%
HSAs with investments
431K
Previous year: 302K
+42.7%
Total Accounts
13.3M
Previous year: 12.5M
+6.4%
Gross Profit
$103M
Previous year: $105M
-1.2%
Cash and Equivalents
$649M
Previous year: $299M
+116.8%
Free Cash Flow
$21.3M
Previous year: $49.7M
-57.0%
Total Assets
$3.1B
Previous year: $2.66B
+16.6%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

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

Company Overview

Full financial data and analysis

View HealthEquity