HealthEquity (HQY) HSAs Increase 17%, Assets Rise 19%

HealthEquity, Inc. (NASDAQ: HQY) announced HSA Member and custodial assets as of its fiscal year ended January 31, 2019.

The total number of HSAs for which it serves as a non-bank custodian ("HSA Members") as of January 31, 2019 was 4.0 million, an increase of 17%, from 3.4 million as of January 31, 2018. Total custodial assets held by HSA Members as of January 31, 2019 was $8.1 billion, an increase of 19% from $6.8 billion a year earlier.

Jon Kessler, President and CEO of HealthEquity, commented, “Excluding acquisitions, the team opened 674,000 new HSAs, a new record, helping our HSA Members add $1.3 billion in custodial assets during fiscal 2019. With more than $8 billion in custodial assets and 4 million HSA members, we believe HealthEquity has once again outpaced competitors and gained market share. Proprietary platform, remarkable purple service and unmatched ability to connect health and wealth position HealthEquity to lead the HSA market as it continues its strong, steady growth.”

HSA Members (unaudited)

Custodial assets (unaudited)

Business outlook

For the year ended January 31, 2019, the Company revised its previously provided outlook as follows:

• Revenue in the range of $284 million and $287 million;
• Net income in the range of $70 million and $73 million;
• Adjusted EBITDA in the range of $115 million and $118 million;
• Non-GAAP net income in the range of $72 million and $75 million; and
• Non-GAAP net income per diluted share range between $1.13 and $1.17.

Non-GAAP net income is calculated by adding back to net income all non-cash stock-based compensation expense, net of an estimated statutory tax rate of 24%, and the impact of excess tax benefits due to the adoption of Accounting Standards Update ("ASU") 2016-09. Non-GAAP net income per diluted share outlook is based on an estimated 64.0 million diluted weighted-average shares outstanding.

The Company also provided fiscal year 2020 revenue guidance in the range of $333 million to $339 million.

A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial table at the end of this release.

Conference call

HealthEquity management will host a conference call at 5:00 pm (Eastern Time) on Wednesday, February 6, 2019. The conference call will be accessible by dialing 844-791-6252, or 661-378-9636 for international callers, and referencing conference ID 7378158. A live webcast of the conference call will also be available on the investor relations section of the company's website at ir.HealthEquity.com.

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