HealthEquity (NASDAQ: HQY) reported Q3 EPS of $0.47, $0.25 better than the analyst estimate of $0.22. Revenue for the quarter came in at $157.1 million versus the consensus estimate of $152.38 million.

Highlights of the third quarter include:

• Revenue of $157.1 million, an increase of 123% compared to Q3 FY19.
• Net loss of $21.3 million, compared to net income of $15.7 million in Q3 FY19, with non-GAAP net income of $32.8 million, an increase of 65% compared to Q3 FY19.
• Net loss per diluted share of $0.30, compared to net income per share of $0.25 in Q3 FY19, with non-GAAP net income per diluted share of $0.47, an increase of 52% compared to Q3 FY19.
• Adjusted EBITDA of $55.5 million, an increase of 87% compared to Q3 FY19.
• 5.0 million HSAs, an increase of 37% compared to Q3 FY19.
• $10.5 billion Total HSA Assets, an increase of 48% compared to Q3 FY19.
• 12.5 million Total Accounts, including both HSAs and complementary consumer-directed benefit ("CDB") accounts.
• The WageWorks acquisition closed on August 30, 2019.

“The new HealthEquity outperformed in a market that keeps growing, and got a fast start on the integration of WageWorks to continue that growth,” said President and CEO Jon Kessler. “For the full year, these results set the team up to deliver strong sales while keeping its commitments to customers, partners and shareholders.”

GUIDANCE:

HealthEquity sees FY2020 EPS of $1.46-$1.52, versus the consensus of $1.28. HealthEquity sees FY2020 revenue of $520-526 million, versus the consensus of $517.31 million.

For fiscal year 2020 for the combined HealthEquity, which includes five months of WageWorks' operating results, we expect our revenue to be between $520 million and $526 million. Our outlook for net income is a range of $16 million to $20 million, resulting in net income per diluted share range of $0.24 to $0.28. Our Adjusted EBITDA outlook is a range of $182 million to $186 million. We define Adjusted EBITDA as adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, integration and acquisition-related costs, gains and losses on marketable equity securities, and other certain non-operating items. We also expect our non-GAAP net income to be in a range between $101 million and $105 million. Our non-GAAP net income is calculated by adding back to net income amortization of acquired intangible assets, stock-based compensation expense, and integration and acquisition-related costs, net of an estimated statutory tax rate of 24%, subtracting the excess tax benefits due to the adoption of Accounting Standards Update ("ASU") 2016-09, and adjusting for gains and losses on marketable equity securities, net of an estimated statutory tax rate of 24%. Our non-GAAP net income outlook results in a non-GAAP net income per diluted share range between $1.46 to $1.52 (based on an estimated 69 million weighted-average shares outstanding).

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