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Jan 31, 2024

HealthEquity Q4 2024 Earnings Report

HealthEquity's Q4 2024 financial performance was marked by revenue growth and increased profitability.

Key Takeaways

HealthEquity reported a 12% increase in revenue to $262.4 million for Q4 2024, with net income reaching $26.4 million and non-GAAP net income at $55.0 million. The company's adjusted EBITDA grew by 34% to $98.8 million, reflecting improved operational efficiency. They also delivered fiscal 2024 with a record of nearly $1 billion in revenue as well as over 500 bps expansion in Adjusted EBITDA margin.

Revenue increased by 12% year-over-year, reaching $262.4 million.

Net income was $26.4 million, a significant improvement from the net loss in Q4 FY23.

Non-GAAP net income rose to $55.0 million, compared to $31.3 million in the prior year.

Adjusted EBITDA increased by 34% to $98.8 million.

Total Revenue
$262M
Previous year: $234M
+12.2%
EPS
$0.63
Previous year: $0.37
+70.3%
Total HSAs
8.69M
Previous year: 7.98M
+8.9%
HSAs with investments
610K
Previous year: 541K
+12.8%
Total CDBs
7.01M
Previous year: 6.93M
+1.1%
Gross Profit
$140M
Cash and Equivalents
$404M
Free Cash Flow
$76.5M
Total Assets
$3.16B

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2025, HealthEquity anticipates revenues between $1.14 billion and $1.16 billion. Net income is projected to be between $73 million and $88 million, with a non-GAAP net income outlook of $247 million to $262 million. Adjusted EBITDA is expected to range from $438 million to $458 million.

Positive Outlook

  • Revenue is projected to be between $1.14 billion and $1.16 billion.
  • Net income is expected to be between $73 million and $88 million.
  • Non-GAAP net income is forecasted to be between $247 million and $262 million.
  • Adjusted EBITDA is anticipated to be between $438 million and $458 million.
  • Increases of approximately 15% in revenue and 20% in Adjusted EBITDA.

Revenue & Expenses

Visualization of income flow from segment revenue to net income