Highlights of the third quarter include:

• Revenue of $179.4 million, an increase of 14% compared to $157.1 million in Q3 FY20.
• Net income of $1.8 million, with non-GAAP net income of $32.2 million, compared to net loss of $21.3 million and non-GAAP net income of $30.3 million in Q3 FY20.
• Net income per diluted share of $0.02, with non-GAAP net income per diluted share of $0.41, compared to net loss per diluted share of $0.30 and non-GAAP net income per diluted share of $0.43 in Q3 FY20.
• Adjusted EBITDA of $61.1 million, an increase of 10% compared to $55.5 million in Q3 FY20.
• 5.5 million HSAs, an increase of 9% compared to Q3 FY20.
• $12.4 billion Total HSA Assets, an increase of 19% compared to Q3 FY20.
• 12.5 million Total Accounts, including both HSAs and complementary CDB accounts, the same as in Q3 FY20.

DRAPER, Utah, Dec. 07, 2020 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), the nation's largest health savings account ("HSA") non-bank custodian, today announced financial results for its third quarter ended October 31, 2020, compared to its prior quarter ended October 31, 2019. The third quarter of fiscal 2020 reflects two months of WageWorks' results.

"HealthEquity provided another quarter of growth and profitability," said Jon Kessler, President and CEO of HealthEquity. "Our team helped members open over 104,000 new HSAs this quarter, growing membership organically by 11% year-over-year, with HSA assets growing by more than $200 million, or 19% year-over-year. Total accounts held steady at 12.5 million despite 0.6 million commuter accounts being suspended as more participants began working from home due to COVID-19. Revenue grew by 14% to $179 million, overcoming a nearly 40% decrease in commuter revenue, and adjusted EBITDA grew 10% to $61 million in the quarter, producing a 34% margin during the pandemic. We are pleased with how quickly the team has adjusted during this time and look forward to finishing this fiscal year strong, positioning us for further growth next year."

Third quarter financial results

Revenue for the third quarter ended October 31, 2020 of $179.4 million grew 14% compared to $157.1 million for the third quarter ended October 31, 2019. Revenue this quarter included: service revenue of $104.6 million, custodial revenue of $48.5 million, and interchange revenue of $26.3 million.

HealthEquity reported net income of $1.8 million, or $0.02 per diluted share, and non-GAAP net income of $32.2 million, or $0.41 per diluted share, for the third quarter ended October 31, 2020. The Company reported a net loss of $21.3 million, or $0.30 per diluted share, and non-GAAP net income of $30.3 million, or $0.43 per diluted share, for the third quarter ended October 31, 2019.

Adjusted EBITDA was $61.1 million for the third quarter ended October 31, 2020, an increase of 10% compared to $55.5 million for the third quarter ended October 31, 2019. Adjusted EBITDA was 34% of revenue compared to 35% for the third quarter ended October 31, 2019.

Account and asset metrics

HSAs as of October 31, 2020 were approximately 5.5 million, an increase of 9% year over year, including 302,000 HSAs with investments, an increase of 54% year over year. Total Accounts as of October 31, 2020 were 12.5 million, including 7.0 million consumer-directed benefit ("CDB") accounts.

Total HSA Assets as of October 31, 2020 were $12.4 billion, an increase of 19% year over year. Total HSA Assets included $9.0 billion of HSA cash and $3.4 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.8 billion as of October 31, 2020.

New HSA openings and HSA asset balances

HealthEquity reported sales of 104,000 new HSAs in the third quarter ended October 31, 2020, compared to 129,000 in the third quarter ended October 31, 2019. HSA members grew their cash balances by approximately $46.0 million during the quarter, while total member balances increased by approximately $229.0 million due primarily to decreased spending per HSA and appreciation of invested balances.

WageWorks integration

HealthEquity completed its acquisition of WageWorks on August 30, 2019. We have identified opportunities of approximately $80 million in annualized ongoing net synergies to be achieved by the end of the fiscal year ending January 31, 2022, of which approximately $55 million have been achieved as of October 31, 2020.

Business outlook

For the fiscal year ending January 31, 2021, management expects revenues of $725 million to $731 million. Its outlook for net loss or income is between net loss of $5 million and net income of $2 million, resulting in net loss of $0.07 to net income of $0.02 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $116 million and $121 million, resulting in non-GAAP net income per diluted share of $1.55 to $1.61 (based on an estimated 75 million weighted-average shares outstanding). Management expects Adjusted EBITDA of $232 million to $238 million.

See “Non-GAAP financial information” below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Conference call

HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Monday, December 7, 2020 to discuss the third quarter 2021 financial results. The conference call will be accessible by dialing 844-791-6252, or 661-378-9636 for international callers, and referencing conference ID 4225999. A live audio webcast of the call will also be available on the investor relations section of our website at http://ir.healthequity.com.

Non-GAAP financial information

To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.

• Adjusted EBITDA is adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration and acquisition-related costs, gains and losses on marketable equity securities, and other certain non-operating items.
• Non-GAAP net income is calculated by adding back to GAAP net income (loss) before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration and acquisition-related costs, and gains and losses on marketable equity securities, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
• Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.

About HealthEquity

HealthEquity administers Health Savings Accounts (HSAs) and other consumer-directed benefits for our more than 12 million members in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to connect health and wealth and value our culture of remarkable “Purple” service. For more information, visit www.healthequity.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “aims,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.

Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:

• the impact of the ongoing COVID-19 pandemic on the Company, its operations and its financial results;
• our ability to realize the anticipated financial and other benefits from combining the operations of WageWorks with our business in an efficient and effective manner;
• our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
• our dependence on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits;
• our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
• the significant competition we face and may face in the future, including from those with greater resources than us;
• our reliance on the availability and performance of our technology and communications systems;
• recent and potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
• the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
• our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
• our reliance on partners and third-party vendors for distribution and important services;
• our ability to develop and implement updated features for our technology and communications systems and successfully manage our growth;
• our ability to protect our brand and other intellectual property rights; and
• our reliance on our management team and key team members.

For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2020, as updated by our Quarterly Report on Form 10-Q for the quarter ended July 31, 2020, and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Investor Relations ContactRichard Putnam801-727-1209[email protected]

HealthEquity, Inc. and its subsidiariesCondensed consolidated balance sheets
(in thousands, except par value)	October 31, 2020				January 31, 2020
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	299,356			$	191,726
Accounts receivable, net of allowance for doubtful accounts of $3,458 and $1,216 as of October 31, 2020 and January 31, 2020, respectively	64,291				70,863
Other current assets	32,383				34,711
Total current assets	396,030				297,300
Property and equipment, net	31,774				33,486
Operating lease right-of-use assets	92,314				83,178
Intangible assets, net	776,311				783,279
Goodwill	1,326,793				1,332,631
Deferred tax asset	21				18
Other assets	34,019				35,089
Total assets	$	2,657,262			$	2,564,981
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	6,746			$	3,980
Accrued compensation	34,839				50,121
Accrued liabilities	33,380				46,372
Current portion of long-term debt	62,500				39,063
Operating lease liabilities	13,894				12,401
Total current liabilities	151,359				151,937
Long-term liabilities
Long-term debt, net of issuance costs	938,558				1,181,615
Operating lease liabilities, non-current	76,666				68,017
Other long-term liabilities	11,429				2,625
Deferred tax liability	123,993				130,492
Total long-term liabilities	1,150,646				1,382,749
Total liabilities	1,302,005				1,534,686
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of October 31, 2020 and January 31, 2020, respectively	—				—
Common stock, $0.0001 par value, 900,000 shares authorized, 76,951 and 71,051 shares issued and outstanding as of October 31, 2020 and January 31, 2020, respectively	8				7
Additional paid-in capital	1,140,268				818,774
Accumulated earnings	214,981				211,514
Total stockholders’ equity	1,355,257				1,030,295
Total liabilities and stockholders’ equity	$	2,657,262			$	2,564,981

HealthEquity, Inc. and its subsidiariesCondensed consolidated statements of operations and comprehensive income (loss) (unaudited)
	Three months ended October 31,								Nine months ended October 31,
(in thousands, except per share data)		2020				2019				2020				2019
Revenue
Service revenue	$	104,562			$	87,620			$	319,638			$	140,710
Custodial revenue	48,544				46,972				142,352				132,538
Interchange revenue	26,245				22,526				83,411				57,545
Total revenue	179,351				157,118				545,401				330,793
Cost of revenue
Service costs	65,936				52,278				202,195				92,672
Custodial costs	4,762				4,384				14,805				12,716
Interchange costs	4,095				4,421				13,985				13,177
Total cost of revenue	74,793				61,083				230,985				118,565
Gross profit	104,558				96,035				314,416				212,228
Operating expenses
Sales and marketing	12,880				12,654				36,502				30,015
Technology and development	30,758				23,511				92,490				46,061
General and administrative	22,099				19,222				61,590				37,193
Amortization of acquired intangible assets	19,126				13,051				56,905				16,036
Merger integration	8,193				17,675				31,328				20,459
Total operating expenses	93,056				86,113				278,815				149,764
Income from operations	11,502				9,922				35,601				62,464
Other expense
Interest expense	(6,952		)		(10,225		)		(28,110		)		(10,355		)
Other expense, net	(421		)		(30,949		)		(2,009		)		(8,347		)
Total other expense	(7,373		)		(41,174		)		(30,119		)		(18,702		)
Income (loss) before income taxes	4,129				(31,252		)		5,482				43,762
Income tax provision (benefit)	2,340				(9,918		)		2,015				3,908
Net income (loss) and comprehensive income (loss)	$	1,789			$	(21,334	)		$	3,467			$	39,854
Net income (loss) per share:
Basic	$	0.02			$	(0.30	)		$	0.05			$	0.61
Diluted	$	0.02			$	(0.30	)		$	0.05			$	0.59
Weighted-average number of shares used in computing net income (loss) per share:
Basic	76,701				70,524				73,358				65,727
Diluted	77,845				70,524				74,665				67,150

HealthEquity, Inc. and its subsidiariesCondensed consolidated statements of cash flows (unaudited)
	Nine months ended October 31,
(in thousands)		2020				2019
Cash flows from operating activities:
Net income	$	3,467			$	39,854
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	85,485				28,791
Stock-based compensation	30,313				31,194
Amortization of debt issuance costs	3,818				1,138
Gains on marketable equity securities	—				(27,570		)
Other non-cash items	1,727				139
Deferred taxes	(973		)		690
Changes in operating assets and liabilities:
Accounts receivable	8,063				(1,901		)
Other assets	3,309				(4,863		)
Operating lease right-of-use assets	8,344				3,340
Accrued compensation	(15,251		)		(8,012		)
Accounts payable, accrued liabilities, and other current liabilities	(7,936		)		14,179
Operating lease liabilities, non-current	(8,361		)		(2,859		)
Other long-term liabilities	8,712				(50		)
Net cash provided by operating activities	120,717				74,070
Cash flows from investing activities:
Purchases of property and equipment	(11,388		)		(5,180		)
Purchases of software and capitalized software development costs	(37,242		)		(17,232		)
Acquisition of intangible member assets	(28,100		)		(9,070		)
Purchases of marketable securities	—				(53,845		)
Acquisitions, net of cash acquired	—				(1,630,066		)
Net cash used in investing activities	(76,730		)		(1,715,393		)
Cash flows from financing activities:
Proceeds from follow-on equity offering, net of payments for offering costs	286,779				458,495
Principal payments on long-term debt	(223,438		)		—
Settlement of client-held funds obligation, net	(4,189		)		(230,928		)
Proceeds from exercise of common stock options	4,491				7,342
Proceeds from long-term debt	—				1,250,000
Payment of debt issuance costs	—				(30,504		)
Net cash provided by financing activities	63,643				1,454,405
Increase (decrease) in cash and cash equivalents	107,630				(186,918		)
Beginning cash and cash equivalents	191,726				361,475
Ending cash and cash equivalents	$	299,356			$	174,557

HealthEquity, Inc. and its subsidiariesCondensed consolidated statements of cash flows (unaudited) (continued)
	Nine months ended October 31,
(in thousands)		2020				2019
Supplemental cash flow data:
Interest expense paid in cash	$	22,849			$	249
Income taxes paid in cash, net of refunds received	1,053				9,127
Supplemental disclosures of non-cash investing and financing activities:
Property and equipment included in accounts payable or accrued liabilities	$	167			$	168
Software and capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation	1,346				316
Intangible member assets included in accounts payable or accrued liabilities	289				(151		)
Decrease in goodwill due to measurement period adjustments, net	5,838				—
Exercise of common stock options receivable	89				21
Equity-based acquisition consideration	—				3,776

Stock-based compensation expense (unaudited)

Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income (loss) is as follows:

	Three months ended October 31,								Nine months ended October 31,
(in thousands)		2020				2019				2020				2019
Cost of revenue	$	2,209			$	1,415			$	5,737			$	3,285
Sales and marketing	2,035				1,304				4,810				3,469
Technology and development	2,641				2,171				8,051				5,600
General and administrative	4,594				3,332				11,715				9,486
Merger Integration	—				1,220				—				1,220
Other expense, net	—				13,714				—				13,714
Total stock-based compensation expense	$	11,479			$	23,156			$	30,313			$	36,774

Total Accounts (unaudited)
(in thousands, except percentages)		October 31, 2020			October 31, 2019			% Change			January 31, 2020
HSAs		5,460			5,031			9%			5,344
New HSAs from Sales - Quarter-to-date		104			129			(19)%			379
New HSAs from Sales - Year-to-date		317			344			(8)%			724
New HSAs from Acquisitions - Year-to-date		—			757			(100)%			757
HSAs with investments		302			197			54%			220
CDBs		7,060			7,504			(6)%			7,437
Total Accounts		12,520			12,535			—%			12,781
Average Total Accounts - Quarter-to-date		12,084			9,970			21%			12,603
Average Total Accounts - Year-to-date		12,429			6,482			92%			8,013

HSA Assets (unaudited)
(in millions, except percentages)	October 31, 2020			October 31, 2019				% Change		January 31, 2020
HSA cash with yield (1)	$	8,759		$	7,564			16%		$	8,301
HSA cash without yield (2)	258			381				(32)%		383
Total HSA cash	9,017			7,945				13%		8,684
HSA investments with yield (1)	3,255			2,188				49%		2,495
HSA investments without yield (2)	168			326				(48)%		362
Total HSA investments	3,423			2,514				36%		2,857
Total HSA Assets	12,440			10,459				19%		11,541
Average daily HSA cash with yield - Year-to-date	8,445			6,652				27%		6,937
Average daily HSA cash with yield - Quarter-to-date	$	8,672		$	7,146			21%		$	7,791

(1) HSA Assets that generate custodial revenue.(2) HSA Assets that do not generate custodial revenue.

Client-held funds (unaudited)
(in millions, except percentages)	October 31, 2020				October 31, 2019			% Change		January 31, 2020
Client-held funds (1)	$	798			$	670		19%		$	779
Average daily Client-held funds - Year-to-date (1)	847				268			216%		382
Average daily Client-held funds - Quarter-to-date (1)	819				500			64%		727

(1) Client-held funds that generate custodial revenue.

Net income (loss) reconciliation to Adjusted EBITDA (unaudited)
			Three months ended October 31,								Nine months ended October 31,
(in thousands)				2020				2019				2020				2019
Net income (loss)			$	1,789			$	(21,334	)		$	3,467			$	39,854
Interest income			(174		)		(2,046		)		(850		)		(5,273		)
Interest expense			6,952				10,225				28,110				10,355
Income tax provision (benefit)			2,340				(9,918		)		2,015				3,908
Depreciation and amortization			10,253				6,203				28,580				12,940
Amortization of acquired intangible assets			19,126				13,051				56,905				16,036
Stock-based compensation expense			11,479				8,222				30,313				21,840
Merger integration expenses (1)			8,193				17,675				31,328				20,459
Acquisition costs (2)			13				32,932				79				40,712
Gain on marketable equity securities			—				(285		)		—				(27,570		)
Other (3)			1,168				824				4,202				1,854
Adjusted EBITDA			$	61,139			$	55,549			$	184,149			$	135,115
(1)		For the three and nine months ended October 31, 2019, includes $1.2 million of stock-based compensation expense from post-acquisition merger integration activities.
(2)		For the three and nine months ended October 31, 2019, includes $13.7 million of stock-based compensation expense from acquisition-related cash and equity accelerations.
(3)		For the three months ended October 31, 2020 and 2019, Other consisted of amortization of incremental costs to obtain a contract of $587 and $475, non-income-based taxes of $401 and $238, and other costs of $180 and $111, respectively. For the nine months ended October 31, 2020 and 2019, Other consisted of amortization of incremental costs to obtain a contract of $1,422 and $1,375, non-income-based taxes of $1,233 and $359, and other costs of $1,547 and $120, respectively.

Reconciliation of net income (loss) outlook to Adjusted EBITDA outlook (unaudited)
	Outlook for the
(in millions)	year ending January 31, 2021
Net income (loss)	$(5) - 2
Interest income	(1)
Interest expense	35
Income tax benefit	1 - 0
Depreciation and amortization	38
Amortization of acquired intangible assets	76
Stock-based compensation expense	42
Merger integration expenses	41
Other expense	5
Adjusted EBITDA	$232 - 238

Reconciliation of net income (loss) to non-GAAP net income (unaudited)
	Three months ended October 31,								Nine months ended October 31,								Outlook for the year ending
(in millions, except per share data)		2020				2019				2020				2019			January 31, 2021
Net income (loss)	$	2			$	(21	)		$	3			$	40			$(5) - 2
Income tax provision (benefit)	2				(10		)		2				4				1 - 0
Income (loss) before income taxes - GAAP	4				(31		)		5				44				(4) - 2
Non-GAAP adjustments:
Amortization of acquired intangible assets	19				13				57				16				76
Stock-based compensation expense	12				8				30				22				42
Merger integration expenses	8				17				32				20				41
Acquisition costs	—				33				—				41				—
Gain on marketable equity securities	—				—				—				(28		)		—
Total adjustments to income (loss) before income taxes - GAAP	39				71				119				71				159
Income before income taxes - Non-GAAP	43				40				124				115				155 - 161
Income tax provision - Non-GAAP (1)	11				10				31				29				39 - 40
Non-GAAP net income	32				30				93				86				116 - 121
Diluted weighted-average shares	78				71				75				67				75
Non-GAAP net income per diluted share (2)	$	0.41			$	0.43			$	1.25			$	1.29			$1.55 - 1.61

(1) The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

(2) Non-GAAP net income per diluted share may not calculate due to rounding of non-GAAP net income and diluted weighted-average shares.

Certain terms
Term	Definition
HSA	A financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDB	Consumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), Consolidated Omnibus Budget Reconciliation Act (“COBRA”) administration, commuter and other benefits.
HSA member	Consumers with HSAs that we serve.
Total HSA Assets	HSA members' deposits with our federally insured custodial depository partners and custodial cash deposits invested in an annuity contract with our insurance company partner. Total HSA Assets also includes HSA members' investments in mutual funds through our custodial investment fund partner.
Client	Our employer clients.
Total Accounts	The sum of HSAs and CDBs on our platforms.
Client-held funds	Deposits held on behalf of our Clients to facilitate administration of our CDBs.
Network Partner	Our health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDA	Adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration and acquisition-related costs, gains and losses on marketable equity securities, and other certain non-operating items.
Non-GAAP net income	Calculated by adding back to GAAP net income (loss) before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration and acquisition-related costs, and gains and losses on marketable equity securities, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted share	Calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

Source: HealthEquity, Inc.

Globe Newswire Press Releases

HealthEquity (HQY) Tops Q3 EPS by 7c, Revenues Beat; Offers FY21 EPS/Revenue OutlookDecember 7, 2020 4:04 PM