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Oct 31, 2023

HealthEquity Q3 2024 Earnings Report

HealthEquity's Q3 2024 performance demonstrated double-digit revenue growth and margin expansion.

Key Takeaways

HealthEquity reported a 15% increase in revenue to $249.2 million, a net income of $14.7 million, and non-GAAP net income of $52.2 million. The company's HSA count grew to 8.3 million, with total HSA assets reaching $22.6 billion. They also agreed to acquire the BenefitWallet HSA portfolio.

Revenue increased by 15% year-over-year, reaching $249.2 million.

Net income was $14.7 million, a significant improvement compared to the previous year's net loss of $1.6 million.

Non-GAAP net income increased by 61% year-over-year, reaching $52.2 million.

The company's HSA base grew to 8.3 million, representing an 8% increase year-over-year.

Total Revenue
$249M
Previous year: $216M
+15.3%
EPS
$0.6
Previous year: $0.38
+57.9%
Total HSAs
8.3M
Previous year: 7.7M
+7.8%
HSAs with investments
592K
Previous year: 529K
+11.9%
Total Accounts
15.3M
Previous year: 14.5M
+5.5%
Gross Profit
$158M
Previous year: $127M
+24.9%
Cash and Equivalents
$334M
Previous year: $210M
+58.9%
Free Cash Flow
$56.6M
Previous year: $47.3M
+19.5%
Total Assets
$3.09B
Previous year: $3.06B
+0.9%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2024, management expects revenue of $985 million to $995 million. Its outlook for net income is between $34 million and $39 million, resulting in net income of $0.39 to $0.45 per diluted share. Its outlook for non-GAAP net income is between $181 million and $188 million, resulting in non-GAAP net income per diluted share of $2.08 to $2.16. Management expects Adjusted EBITDA of $350 million to $360 million.

Positive Outlook

  • Revenue is expected to be between $985 million and $995 million.
  • Net income is projected to be between $34 million and $39 million.
  • Non-GAAP net income is anticipated to be between $181 million and $188 million.
  • Non-GAAP net income per diluted share is expected to be $2.08 to $2.16.
  • Adjusted EBITDA is forecasted to be between $350 million and $360 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income