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Jan 31, 2022
HealthEquity Q4 2022 Earnings Report
HealthEquity's Q4 2022 financial results were announced, revealing an 8% increase in revenue compared to Q4 FY21, alongside a net loss, though the company closed its acquisition of Further and agreed to purchase the HealthSavings HSA portfolio.
Key Takeaways
HealthEquity reported an 8% increase in revenue for the fourth quarter ended January 31, 2022, reaching $203.3 million. However, the company experienced a net loss of $32.8 million, or $0.39 per diluted share, and a non-GAAP net income of $17.0 million, or $0.20 per diluted share. The company closed its acquisition of Further and agreed to purchase the HealthSavings HSA portfolio.
Revenue increased by 8% to $203.3 million compared to Q4 FY21.
Net loss was $32.8 million, or $0.39 per diluted share, compared to net income of $5.4 million in Q4 FY21.
Non-GAAP net income was $17.0 million, or $0.20 per diluted share, compared to $34.6 million in Q4 FY21.
The company closed its acquisition of Further on November 1, 2021, and agreed to purchase the HealthSavings HSA portfolio, which closed on March 2, 2022.
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 revenues of $820 million to $830 million. Its outlook for net loss is between $61 million and $53 million, resulting in net loss of $0.73 to $0.63 per diluted share. Its outlook for non-GAAP net income is between $102 million and $110 million, resulting in non-GAAP net income per diluted share of $1.21 to $1.30. Management expects Adjusted EBITDA of $245 million to $255 million.
Positive Outlook
- Revenue of $820 million to $830 million is expected.
- Non-GAAP net income is expected to be between $102 million and $110 million.
- Non-GAAP net income per diluted share of $1.21 to $1.30 is expected.
- Adjusted EBITDA of $245 million to $255 million is expected.
- The company completed its acquisition of WageWorks on August 30, 2019. As of January 31, 2022, the Company has substantially completed the integration of WageWorks and achieved approximately $80 million in annualized ongoing net synergies.
Challenges Ahead
- Net loss is expected to be between $61 million and $53 million.
- Net loss per diluted share of $0.73 to $0.63 is expected.
- The company faces significant competition in a rapidly evolving healthcare and benefits administration industry.
- The company depends on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits.
- The current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations, could negatively impact the company.
Revenue & Expenses
Visualization of income flow from segment revenue to net income