NASDAQ$HQY
HealthEquity Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
HealthEquity's Q4 2022 financial results were announced, revealing an 8% increase in revenue compared to Q4 FY21, alongside a net loss, though the company closed its acquisition of Further and agreed to purchase the HealthSavings HSA portfolio.
HealthEquity reported an 8% increase in revenue for the fourth quarter ended January 31, 2022, reaching $203.3 million. However, the company experienced a net loss of $32.8 million, or $0.39 per diluted share, and a non-GAAP net income of $17.0 million, or $0.20 per diluted share. The company closed its acquisition of Further and agreed to purchase the HealthSavings HSA portfolio.
- Revenue increased by 8% to $203.3 million compared to Q4 FY21.
- Net loss was $32.8 million, or $0.39 per diluted share, compared to net income of $5.4 million in Q4 FY21.
- Non-GAAP net income was $17.0 million, or $0.20 per diluted share, compared to $34.6 million in Q4 FY21.
- The company closed its acquisition of Further on November 1, 2021, and agreed to purchase the HealthSavings HSA portfolio, which closed on March 2, 2022.
Headline financials
Revenue & EPS history
HealthEquity · Revenue · Quarterly
$203M
Revenue by segment
HealthEquity · $203M total across 3 segments · Q4 2022
- Service Revenue$112M+1.0%55.3%
- Custodial Revenue$58.1M+19.5%28.6%
- Interchange Revenue$32.8M+15.8%16.1%
Forward guidance
For the fiscal year ending January 31, 2023, management expects revenues of $820 million to $830 million. Its outlook for net loss is between $61 million and $53 million, resulting in net loss of $0.73 to $0.63 per diluted share. Its outlook for non-GAAP net income is between $102 million and $110 million, resulting in non-GAAP net income per diluted share of $1.21 to $1.30. Management expects Adjusted EBITDA of $245 million to $255 million.
Tailwinds
- Revenue of $820 million to $830 million is expected.
- Non-GAAP net income is expected to be between $102 million and $110 million.
- Non-GAAP net income per diluted share of $1.21 to $1.30 is expected.
- Adjusted EBITDA of $245 million to $255 million is expected.
- The company completed its acquisition of WageWorks on August 30, 2019. As of January 31, 2022, the Company has substantially completed the integration of WageWorks and achieved approximately $80 million in annualized ongoing net synergies.
Headwinds
- Net loss is expected to be between $61 million and $53 million.
- Net loss per diluted share of $0.73 to $0.63 is expected.
- The company faces significant competition in a rapidly evolving healthcare and benefits administration industry.
- The company depends on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits.
- The current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations, could negatively impact the company.
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 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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