NASDAQ$HQY

HealthEquity Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong second quarter results, driven by revenue growth and increased synergy target.

HealthEquity reported a strong second quarter with a 103% increase in revenue to $176.0 million. The company achieved $60.0 million in adjusted EBITDA and sequential growth in HSA assets by over $700 million. They also raised their net synergy target to $80 million.

  • Revenue increased by 103% to $176.0 million compared to the previous year.
  • Net loss was $0.1 million, while non-GAAP net income reached $30.1 million.
  • Adjusted EBITDA increased by 48% to $60.0 million.
  • Total HSAs grew to 5.4 million, a 29% increase year-over-year.

Headline financials

Total Revenue

$176M

Previous: $86.6M+103.2%
EPS (adj)

$0.42

Previous: $0.45-6.7%
Total HSAs

5.4M

Previous: 4.2M+29.7%
HSAs with Investments

284.0K

Previous: 187.0K+51.9%
Total Accounts

12.5M

Previous: 4.8M+158.1%
New HSAs from Sales - QTD

108.0K

Previous: 126.0K-14.3%
Capital Expenditures

-$8.99M

Previous: -$3.49M-157.4%
Free Cash Flow

-$9.14M

Previous: $15.9M-157.5%
Net Income

-$148K

Previous: $19.4M-100.8%
Operating Income

$9.03M

Previous: $24.9M-63.7%
Gross Profit

$102M

Previous: $58.4M+74.2%
Cash & Equivalents

$269M

Previous: $815M-67.0%
Total Assets

$2.66B

Previous: $1.1B+142.6%
Stock-Based Comp

$11.4M

Previous: $7.59M+50.7%

Revenue & EPS history

HealthEquity · Revenue · Quarterly

$176M

Q2 2021+103.2%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

HealthEquity · $176M total across 3 segments · Q2 2021

  • Service Revenue
    $104M+295.0%
  • Custodial Revenue
    $46.9M+7.6%
  • Interchange Revenue
    $25.3M+51.4%

Forward guidance

For the fiscal year ending January 31, 2021, management expects revenues of $720 million to $730 million. Its outlook is for net loss between $13 million and $5 million, resulting in net loss per diluted share of $0.17 to $0.08. Its outlook for non-GAAP net income is between $111 million and $119 million, resulting in non-GAAP net income per diluted share of $1.48 to $1.58. Management expects Adjusted EBITDA of $226 million to $236 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.4%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-1.1%

Avg return

30 days after

55%

29 / 53 earnings

Positive

+10.8%

Q1 2024

Best reaction

-22.2%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+0.7%+2.8%+8.4%
Q3 2026-2.9%-5.5%-7.7%
Q2 2026+7.6%+4.7%-0.3%
Q1 2026+9.1%+7.1%-1.5%
Q4 2025-17.1%-11.2%-16.9%
Q3 2025-4.8%-4.6%-0.5%
Q2 2025+3.9%-4.2%-1.7%
Q1 2025+2.1%+4.4%+2.3%
Q4 2024-1.9%-4.0%-3.7%
Q3 2024+0.4%-0.8%-0.7%
Q2 2024+4.4%+2.4%+9.4%
Q1 2024+10.8%+9.4%+6.1%
Q4 2023+0.8%-1.1%+0.7%
Q3 2023-2.3%-7.7%-9.8%
Q2 2023+0.1%+4.6%+5.5%
Q1 2023+2.0%-0.0%-4.8%
Q4 2022+2.4%+11.3%+20.3%
Q3 2022-21.3%-24.8%-14.4%
Q2 2022+1.2%-1.4%-0.8%
Q1 2022+0.4%-3.2%-1.6%
Q4 2021-5.9%-9.4%-11.8%
Q3 2021-3.7%-8.5%+8.1%
Q2 2021+5.4%-11.8%-6.2%
Q1 2021-6.6%+5.9%-5.6%
Q4 2020-22.2%-17.9%-15.1%
Q3 2020+2.9%+9.6%+17.4%
Q2 2020-6.1%-6.3%-8.1%
Q1 2020+1.7%+6.0%-0.4%
Q4 2019+2.9%-10.2%-23.8%
Q3 2019-17.5%-23.8%-38.8%
Q2 2019+2.9%+3.0%-3.9%
Q1 2019+4.8%+4.6%+1.1%
Q4 2018+8.7%+6.7%+11.3%
Q3 2018-5.8%-6.4%-1.7%
Q2 2018+7.3%+6.0%+23.1%
Q1 2018+8.8%+7.4%-0.2%
Q4 2017-4.6%-12.1%-0.9%
Q3 2017-1.1%-2.4%-2.8%
Q2 2017+3.0%-0.7%+13.1%
Q1 2017+7.9%+7.4%+11.7%
Q4 2016+5.2%
Q3 2016-4.6%
Q2 2016+6.5%
Q1 2015-0.1%
Q1 2016+3.2%
Q4 2013-0.1%
Q1 2014-0.1%
Q4 2015-1.0%
Q3 2014-8.0%
Q3 2015+0.7%
Q2 2015-0.3%
Q4 2014-0.3%
Q2 2014-0.3%

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