HealthEquity (HQY) Tops Q1 EPS by 6c, Revenues Beat; Offers FY22 EPS/Guidance Above Consensus

HealthEquity (NASDAQ: HQY) reported Q1 EPS of $0.38, $0.06 better than the analyst estimate of $0.32. Revenue for the quarter came in at $184.2 million versus the consensus estimate of $180.84 million.

Highlights of the first quarter include:

• Revenue of $184.2 million, a decrease of 3% compared to $190.0 million in Q1 FY21.
• Net loss of $2.6 million, compared to net income of $1.8 million in Q1 FY21, with non-GAAP net income of $31.0 million, compared to $30.8 million in Q1 FY21.
• Net loss per diluted share of $0.03, compared to net income per diluted share of $0.03 in Q1 FY21, with non-GAAP net income per diluted share of $0.38, compared to $0.43 in Q1 FY21.
• Adjusted EBITDA of $59.0 million, a decrease of 6% compared to $63.0 million in Q1 FY21.
• 5.8 million HSAs, an increase of 9% compared to Q1 FY21.
• $15.0 billion Total HSA Assets, an increase of 31% compared to Q1 FY21.
• 12.8 million Total Accounts, including both HSAs and complementary CDB accounts, an increase of 1% compared to Q1 FY21.
• The Company sold 5,750,000 shares of common stock, yielding net proceeds of $456.6 million.
• The Company closed its acquisition of Luum on March 8, 2021.
• The Company entered into definitive agreements to acquire Further and to transition custodianship of the Fifth Third Bank HSA portfolio to HealthEquity.

"Our fiscal year 2022 is off to a fast start with early sales wins, two material acquisition agreements in our core HSA business, and the new Luum mobility benefits platform helping clients return to work,” said Jon Kessler, President and CEO of HealthEquity. “We believe our total solution is well-positioned to deliver substantial growth through the economy's reopening and recovery."

GUIDANCE:

HealthEquity sees FY2022 EPS of $1.45-$1.50, versus the consensus of $1.41. HealthEquity sees FY2022 revenue of $755-765 million, versus the consensus of $755.51 million.

For the fiscal year ending January 31, 2022, management expects revenues of $755 million to $765 million. Its outlook for net loss is between $19 million and $15 million, resulting in net loss of $0.23 to $0.18 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $122 million and $126 million, resulting in non-GAAP net income per diluted share of $1.45 to $1.50 (based on an estimated 84 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $241 million to $247 million.

This outlook does not include any potential impact from the acquisitions of Further or the Fifth Third Bank HSA portfolio.

For earnings history and earnings-related data on HealthEquity (HQY) click here.

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