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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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