HealthEquity (NASDAQ: HQY) reported Q2 EPS of $0.27, $0.12 better than the analyst estimate of $0.15. Revenue for the quarter came in at $56.9 million versus the consensus estimate of $55.66 million.

• Revenue of $56.9 million, an increase of 29% compared to Q2 FY17.
• Net income of $16.9 million, an increase of 106% compared to Q2 FY17.
• Net income per diluted share of $0.27 compared to $0.14 in Q2 FY17.
• Adjusted EBITDA of $23.9 million, an increase of 30% compared to Q2 FY17.

“HealthEquity opened nearly 120,000 new HSAs in the second quarter, 40% more than during the same period last year,” said Jon Kessler, President and CEO of HealthEquity. “In terms of sales growth, this is the strongest second quarter performance in the team’s history. Since the second quarter of last year, we have added over 700,000 new HSAs and grown custodial assets by $1.2 billion. Our solid second quarter results and start to fiscal 2018, provide the basis to once again increase our guidance for fiscal 2018 financial expectations.”

Business outlook

We are increasing our business outlook for the year ended January 31, 2018. We are increasing our revenue outlook from a range between $222.0 million and $227.0 million to a range between $223.0 million and $228.0 million, our net income from a range between $33.0 million and $37.0 million to a range between $41.0 million and $45.0 million, our Adjusted EBITDA from a range between $78.0 million and $83.0 million to a range between $79.0 million and $84.0 million. We also expect our non-GAAP net income to be in a range between $39.0 million and $43.0 million, up from our prior range between $38.0 million and $42.0 million. Our 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 38%, and the impact of excess tax benefits due to the adoption of Accounting Standards Update ("ASU") 2016-09. Our non-GAAP net income outlook results in a non-GAAP net income per diluted share range between $0.64 and $0.68 (based on an estimated 62.0 million diluted weighted-average shares outstanding), up from our prior range between $0.62 and $0.67.

(*** consensus is $0.60 and $224.84 million)

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