NASDAQ$HQY
HealthEquity Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
HealthEquity experienced a mixed quarter with revenue slightly increasing, a net loss reported, but strong HSA growth and strategic acquisitions finalized.
HealthEquity reported a slight revenue increase to $180.0 million, but experienced a net loss of $5.0 million, contrasting with a net income of $1.8 million in the same quarter last year. Non-GAAP net income was $28.9 million. The company saw a 14% increase in HSAs to 6.2 million and a 32% increase in total HSA assets to $16.4 billion. Key acquisitions of Fifth Third Bank HSA portfolio and Further were completed during and after the quarter.
- Revenue increased slightly to $180.0 million, up less than 1% year-over-year.
- Net loss was $5.0 million, a significant change from the $1.8 million net income in Q3 FY21.
- Total HSAs grew by 14% to 6.2 million, with total HSA assets increasing by 32% to $16.4 billion.
- Completed acquisition of Fifth Third Bank HSA portfolio and Further, adding a substantial number of new HSAs.
Headline financials
Revenue & EPS history
HealthEquity · Revenue · Quarterly
$180M
Revenue by segment
HealthEquity · $180M total across 3 segments · Q3 2022
- Service Revenue$103M-1.7%57.1%
- Custodial Revenue$49M+1.0%27.2%
- Interchange Revenue$28.2M+7.5%15.7%
Forward guidance
For the fiscal year ending January 31, 2022, HealthEquity anticipates revenues between $750 million and $755 million, a net loss between $36 million and $33 million, and non-GAAP net income between $108 million and $112 million. Adjusted EBITDA is expected to be between $230 million and $235 million. This outlook includes the impact of recent acquisitions and financing activities.
Tailwinds
- Revenue expected to be between $750 million and $755 million.
- Non-GAAP net income anticipated between $108 million and $112 million.
- Adjusted EBITDA projected to be between $230 million and $235 million.
- Outlook includes impact of Fifth Third Bank HSA portfolio acquisition.
- Outlook includes impact of Further acquisition.
Headwinds
- Net loss expected to be between $36 million and $33 million.
- Includes impact of $600 million aggregate principal amount of 4.50% Senior Notes.
- Includes impact of refinanced credit facility.
- WageWorks integration synergies are expected to reach approximately $75 million of the approximately $80 million by the end of fiscal year 2022.
- Uncertainty in healthcare environment.
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 2022
-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
| Quarter | Report date | Reaction (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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