NASDAQ$HQY

HealthEquity Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

HealthEquity's Q4 2021 financial results were announced, revealing a decrease in revenue but an increase in net income compared to the same quarter last year.

HealthEquity reported a decrease in revenue by 6% to $188.2 million, but net income increased to $5.4 million. The company's non-GAAP net income was $33.3 million, and it saw growth in HSAs with investments, which increased by 51% year over year.

  • Revenue decreased by 6% compared to Q4 FY20.
  • Net income increased compared to a net loss in Q4 FY20.
  • Non-GAAP net income increased compared to Q4 FY20.
  • HSAs with investments grew by 51% year over year.

Headline financials

Total Revenue

$188M

Previous: $201M-6.5%
EPS (adj)

$0.42

Previous: $0.39+7.7%
HSAs with Investments

333.0K

Previous: 220.0K+51.4%
Total CDBs

7.0M

Previous: 7.4M-5.9%
Total Accounts

12.8M

Previous: 12.8M+0.2%
Capital Expenditures

$1.71M

Previous: $2.11M-19.0%
Free Cash Flow

$59.2M

Previous: $28.8M+105.3%
Net Income

$5.4M

Previous: -$200K+2800.0%
Operating Income

$146K

Previous: $14.5M-99.0%
Gross Profit

$101M

Previous: $114M-11.2%
Cash & Equivalents

$329M

Previous: $192M+71.5%
Total Assets

$2.71B

Previous: $2.57B+5.7%
Stock-Based Comp

$12.6M

Previous: $8.65M+45.1%

Revenue & EPS history

HealthEquity · Revenue · Quarterly

$188M

Q4 2021-6.5%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

HealthEquity · $188M total across 3 segments · Q4 2021

  • Service Revenue
    $111M-8.9%
  • Custodial Revenue
    $48.6M-1.5%
  • Interchange Revenue
    $28.3M-4.7%

Forward guidance

For the fiscal year ending January 31, 2022, HealthEquity expects revenues of $750 million to $760 million, a net loss between $10 million and $5 million, non-GAAP net income between $115 million and $119 million, and Adjusted EBITDA of $240 million to $246 million.

Tailwinds

  • Revenue is expected to be between $750 million and $760 million.
  • Adjusted EBITDA is expected to be between $240 million and $246 million.
  • The outlook for non-GAAP net income is between $115 million and $119 million.
  • Non-GAAP net income per diluted share of $1.37 to $1.42 (based on an estimated 84 million weighted-average shares outstanding).
  • Company expects Adjusted EBITDA of $240 million to $246 million.

Headwinds

  • Net loss is expected to be between $10 million and $5 million.
  • Net loss of $0.12 to $0.07 per diluted share.
  • Significant competition in a rapidly evolving healthcare and benefits administration industry.
  • Reliance on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits.
  • Uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations.

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 2021

Historical avgQ4 2021

-0.4%

Avg return

Earnings day

-1.9%

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%
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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