NASDAQ$HQY

HealthEquity Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

HealthEquity reported growth and profitability, driven by increased revenue and effective cost management.

HealthEquity reported a 14% increase in revenue to $179.4 million and net income of $1.8 million, or $0.02 per diluted share, for the third quarter ended October 31, 2020. The company's HSA count grew by 9% year-over-year to 5.5 million, and total HSA assets increased by 19% to $12.4 billion.

  • Revenue increased by 14% to $179.4 million compared to Q3 FY20.
  • Net income was $1.8 million, with non-GAAP net income reaching $32.2 million.
  • HSA count grew to 5.5 million, a 9% increase year-over-year.
  • Total HSA assets increased by 19% to $12.4 billion compared to Q3 FY20.

Headline financials

Total Revenue

$179M

Previous: $157M+14.2%
EPS (adj)

$0.41

Previous: $0.47-12.8%
Total HSAs

5.5M

Previous: 5.0M+9.3%
HSAs with Investments

302.0K

Previous: 197.0K+53.3%
Total Accounts

12.5M

Previous: 12.5M-0.3%
Capital Expenditures

-$11.4M

Previous: -$5.18M-119.8%
Free Cash Flow

-$9.6M

Previous: -$26.5M+63.8%
Net Income

$1.79M

Previous: -$21.3M+108.4%
Operating Income

$11.5M

Previous: $9.92M+15.9%
Gross Profit

$105M

Previous: $96M+8.9%
Cash & Equivalents

$299M

Previous: $175M+71.5%
Total Assets

$2.66B

Previous: $2.56B+3.8%
Stock-Based Comp

$11.5M

Previous: $17.6M-34.7%

Revenue & EPS history

HealthEquity · Revenue · Quarterly

$179M

Q3 2021+14.2%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

HealthEquity · $179M total across 3 segments · Q3 2021

  • Service Revenue
    $105M+19.3%
  • Custodial Revenue
    $48.5M+3.3%
  • Interchange Revenue
    $26.2M+16.5%

Forward guidance

For the fiscal year ending January 31, 2021, management expects revenues of $725 million to $731 million, net loss or income between net loss of $5 million and net income of $2 million, non-GAAP net income between $116 million and $121 million, and Adjusted EBITDA of $232 million to $238 million.

Tailwinds

  • Revenues of $725 million to $731 million are expected.
  • Net loss or income is projected to be between a net loss of $5 million and a net income of $2 million.
  • Non-GAAP net income is expected to be between $116 million and $121 million.
  • Non-GAAP net income per diluted share is projected to be $1.55 to $1.61.
  • Adjusted EBITDA is expected to be between $232 million and $238 million.

Headwinds

  • The outlook includes potential impacts from the ongoing COVID-19 pandemic.
  • Uncertainty in healthcare programs and expenditures could affect results.
  • The company's ability to achieve synergies from the WageWorks acquisition may influence future performance.
  • Competition in the healthcare and benefits administration industry poses a risk.
  • Cybersecurity breaches and data interruptions could negatively impact operations.

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 Q3 2021

Historical avgQ3 2021

-0.4%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-1.1%

Avg return

30 days after

54%

29 / 54 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 2027-2.8%-5.8%
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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