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Jan 31, 2020

HealthEquity Q4 2020 Earnings Report

HealthEquity demonstrated strong growth and completed the WageWorks acquisition.

Key Takeaways

HealthEquity reported a revenue of $201.2 million, a 166% increase compared to Q4 FY19. The company reported a net loss of $0.2 million, and non-GAAP net income of $27.9 million. Total HSAs exceeded 5.3 million, an increase of 34% year over year.

Revenue increased by 166% to $201.2 million compared to Q4 FY19.

Net loss was $0.2 million, compared to net income of $13.1 million in Q4 FY19.

Non-GAAP net income was $27.9 million, compared to $18.9 million in Q4 FY19.

Adjusted EBITDA increased by 125% to $61.3 million compared to $27.3 million in Q4 FY19.

Total Revenue
$201M
Previous year: $75.8M
+165.5%
EPS
$0.39
Previous year: $0.27
+44.4%
Total HSAs
5.34M
Previous year: 3.99M
+33.8%
HSAs with investments
220K
Previous year: 163K
+35.0%
Total CDBs
7.44M
Gross Profit
$114M
Previous year: $44.4M
+155.8%
Cash and Equivalents
$192M
Previous year: $361M
-47.0%
Free Cash Flow
$28.8M
Previous year: $32.2M
-10.6%
Total Assets
$2.57B
Previous year: $510M
+403.0%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2021, HealthEquity expects revenue between $770 million and $790 million. Net loss is projected in the range of $14 million to $4 million, with an adjusted EBITDA outlook between $245 million and $255 million.

Positive Outlook

  • Revenue to be between $770 million and $790 million.
  • Adjusted EBITDA outlook is a range of $245 million to $255 million.
  • Non-GAAP net income between $124 million and $132 million.
  • Non-GAAP net income per diluted share range between $1.70 and $1.81.
  • Momentum in HSA growth, taking a larger share of the market than ever before.

Challenges Ahead

  • Net loss is projected in the range of $14 million to $4 million.
  • Net loss per diluted share range of $0.19 to $0.05.
  • Uncertain healthcare environment.
  • Potential future cybersecurity breaches.
  • Ability to realize the anticipated financial and other benefits from combining the operations of WageWorks with our business in an efficient and effective manner.

Revenue & Expenses

Visualization of income flow from segment revenue to net income