NASDAQ$HQY

HealthEquity Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

HealthEquity demonstrated strong growth and completed the WageWorks acquisition.

HealthEquity reported a revenue of $201.2 million, a 166% increase compared to Q4 FY19. The company reported a net loss of $0.2 million, and non-GAAP net income of $27.9 million. Total HSAs exceeded 5.3 million, an increase of 34% year over year.

  • Revenue increased by 166% to $201.2 million compared to Q4 FY19.
  • Net loss was $0.2 million, compared to net income of $13.1 million in Q4 FY19.
  • Non-GAAP net income was $27.9 million, compared to $18.9 million in Q4 FY19.
  • Adjusted EBITDA increased by 125% to $61.3 million compared to $27.3 million in Q4 FY19.

Headline financials

Total Revenue

$201M

Previous: $75.8M+165.5%
EPS (adj)

$0.39

Previous: $0.27+44.4%
Total HSAs

5.3M

Previous: 4.0M+33.8%
HSAs with Investments

220.0K

Previous: 163.0K+35.0%
Total CDBs

7.4M

No prior period
Total Accounts

12.8M

Previous: 4.6M+179.9%
Average Total Accounts - QTD

12.6M

No prior period
New HSAs from Sales - QTD

379.0K

Previous: 341.0K+11.1%
Capital Expenditures

$2.11M

Previous: $402K+423.9%
Free Cash Flow

$28.8M

Previous: $32.2M-10.6%
Net Income

-$200K

Previous: $13.1M-101.5%
Operating Income

$14.5M

Previous: $16.6M-12.3%
Gross Profit

$114M

Previous: $44.4M+155.8%
Cash & Equivalents

$192M

Previous: $361M-47.0%
Total Assets

$2.57B

Previous: $510M+403.0%
Stock-Based Comp

$8.65M

Previous: $5.6M+54.6%

Revenue & EPS history

HealthEquity · Revenue · Quarterly

$201M

Q4 2020+165.5%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

HealthEquity · $201M total across 3 segments · Q4 2020

  • Service Revenue
    $122M+374.1%
  • Custodial Revenue
    $49.4M+39.2%
  • Interchange Revenue
    $29.7M+104.1%

Forward guidance

For the fiscal year ending January 31, 2021, HealthEquity expects revenue between $770 million and $790 million. Net loss is projected in the range of $14 million to $4 million, with an adjusted EBITDA outlook between $245 million and $255 million.

Tailwinds

  • Revenue to be between $770 million and $790 million.
  • Adjusted EBITDA outlook is a range of $245 million to $255 million.
  • Non-GAAP net income between $124 million and $132 million.
  • Non-GAAP net income per diluted share range between $1.70 and $1.81.
  • Momentum in HSA growth, taking a larger share of the market than ever before.

Headwinds

  • Net loss is projected in the range of $14 million to $4 million.
  • Net loss per diluted share range of $0.19 to $0.05.
  • Uncertain healthcare environment.
  • Potential future cybersecurity breaches.
  • Ability to realize the anticipated financial and other benefits from combining the operations of WageWorks with our business in an efficient and effective manner.

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 Q4 2020

Historical avgQ4 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro