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Jan 31, 2021

HealthEquity Q4 2021 Earnings Report

HealthEquity's Q4 2021 financial results were announced, revealing a decrease in revenue but an increase in net income compared to the same quarter last year.

Key Takeaways

HealthEquity reported a decrease in revenue by 6% to $188.2 million, but net income increased to $5.4 million. The company's non-GAAP net income was $33.3 million, and it saw growth in HSAs with investments, which increased by 51% year over year.

Revenue decreased by 6% compared to Q4 FY20.

Net income increased compared to a net loss in Q4 FY20.

Non-GAAP net income increased compared to Q4 FY20.

HSAs with investments grew by 51% year over year.

Total Revenue
$188M
Previous year: $201M
-6.5%
EPS
$0.42
Previous year: $0.39
+7.7%
HSAs with investments
333K
Previous year: 220K
+51.4%
Total CDBs
7M
Previous year: 7.44M
-5.9%
Total Accounts
12.81M
Previous year: 12.78M
+0.2%
Gross Profit
$101M
Previous year: $114M
-11.2%
Cash and Equivalents
$329M
Previous year: $192M
+71.5%
Free Cash Flow
$59.2M
Previous year: $28.8M
+105.3%
Total Assets
$2.71B
Previous year: $2.57B
+5.7%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2022, HealthEquity expects revenues of $750 million to $760 million, a net loss between $10 million and $5 million, non-GAAP net income between $115 million and $119 million, and Adjusted EBITDA of $240 million to $246 million.

Positive Outlook

  • Revenue is expected to be between $750 million and $760 million.
  • Adjusted EBITDA is expected to be between $240 million and $246 million.
  • The outlook for non-GAAP net income is between $115 million and $119 million.
  • Non-GAAP net income per diluted share of $1.37 to $1.42 (based on an estimated 84 million weighted-average shares outstanding).
  • Company expects Adjusted EBITDA of $240 million to $246 million.

Challenges Ahead

  • Net loss is expected to be between $10 million and $5 million.
  • Net loss of $0.12 to $0.07 per diluted share.
  • Significant competition in a rapidly evolving healthcare and benefits administration industry.
  • Reliance on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits.
  • Uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income