HealthEquity Inc · Q2 2023 earnings

Briefing

HealthEquity's financial results for Q2 2023 were announced, revealing a mix of revenue growth and net losses.

HealthEquity reported a 9% increase in revenue to $206.1 million, driven by growth in service, custodial, and interchange revenue. The company experienced a net loss of $10.7 million, or $0.13 per diluted share, while non-GAAP net income was $28.1 million, or $0.33 per diluted share. The number of HSAs grew by 26% to 7.5 million, and total HSA assets increased by 33% to $20.5 billion.

• Revenue increased by 9% to $206.1 million compared to Q2 FY22.
• Net loss was $10.7 million, with a net loss per diluted share of $0.13.
• Non-GAAP net income was $28.1 million, with non-GAAP net income per diluted share of $0.33.
• Total HSAs grew by 26% to 7.5 million and Total HSA Assets increased by 33% to $20.5 billion.

Headline financials

Revenue & EPS history

For the fiscal year ending January 31, 2023, management expects revenues of $834 million to $844 million. Its outlook for net loss is between $43 million and $36 million, resulting in net loss of $0.51 to $0.43 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $103 million and $111 million, resulting in non-GAAP net income per diluted share of $1.23 to $1.32 (based on an estimated 84 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $252 million to $262 million.