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Oct 31, 2022
HealthEquity Q3 2023 Earnings Report
HealthEquity's financial performance for Q3 2023, marked by revenue growth and a narrower net loss.
Key Takeaways
HealthEquity reported a 20% increase in revenue to $216.1 million, a reduced net loss of $1.6 million, and a 20% increase in Adjusted EBITDA to $73.4 million. The company also saw growth in HSAs, total HSA assets, and total accounts.
Revenue increased by 20% to $216.1 million compared to Q3 FY22.
Net loss decreased to $1.6 million, compared to $5.0 million in Q3 FY22.
Adjusted EBITDA increased by 20% to $73.4 million compared to Q3 FY22.
Total HSAs grew by 23% to 7.7 million compared to Q3 FY22.
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, 2023, management expects revenue of $850 million to $860 million, a net loss between $34 million and $27 million, non-GAAP net income between $106 million and $114 million, and Adjusted EBITDA of $261 million to $271 million. For the fiscal year ending January 31, 2024, management expects revenue of approximately $950 million to $970 million and Adjusted EBITDA of approximately 33-34% of revenue.
Positive Outlook
- Revenue of $850 million to $860 million is expected for the fiscal year ending January 31, 2023.
- Net loss is projected to be between $34 million and $27 million for FY23.
- Non-GAAP net income is anticipated to be between $106 million and $114 million for FY23.
- Adjusted EBITDA is expected to range from $261 million to $271 million for FY23.
- Revenue of approximately $950 million to $970 million is expected for the fiscal year ending January 31, 2024.
Challenges Ahead
- Net loss is still expected for the fiscal year ending January 31, 2023.
- The outlook for net loss is between $34 million and $27 million.
- Assumes an average annualized yield on HSA cash of approximately 2.25%.
- Future results are subject to risks including those related to the COVID-19 pandemic, competition, and cybersecurity breaches.
- The company's projections rely on several assumptions that may prove to be incorrect.
Revenue & Expenses
Visualization of income flow from segment revenue to net income