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HealthEquity Reports Third Quarter Ended October 31, 2020 Financial Results

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HealthEquity (NASDAQ: HQY) reported strong Q3 FY20 results with a revenue increase of 14% year-over-year, reaching $179.4 million. The company achieved a net income of $1.8 million and a non-GAAP net income of $32.2 million, compared to a net loss of $21.3 million in Q3 FY20. Adjusted EBITDA was $61.1 million, up 10%. Notably, HSAs rose to 5.5 million, a 9% increase, while total HSA assets surged 19% to $12.4 billion. Looking ahead, the company projects FY21 revenues between $725 million and $731 million.

Positive
  • Revenue increased 14% year-over-year to $179.4 million.
  • Non-GAAP net income of $32.2 million compared to a net loss of $21.3 million in Q3 FY20.
  • Adjusted EBITDA rose 10% to $61.1 million, maintaining a 34% margin.
  • Total HSA assets increased 19% to $12.4 billion.
  • Organic membership growth of 11% year-over-year.
Negative
  • New HSA openings decreased to 104,000 from 129,000 year-over-year.
  • Expected net loss between $5 million and net income of $2 million for FY21.

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 Contact
Richard Putnam
801-727-1209
rputnam@healthequity.com

 
HealthEquity, Inc. and its subsidiaries
Condensed 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, respectively64,291  70,863 
Other current assets32,383  34,711 
Total current assets396,030  297,300 
Property and equipment, net31,774  33,486 
Operating lease right-of-use assets92,314  83,178 
Intangible assets, net776,311  783,279 
Goodwill1,326,793  1,332,631 
Deferred tax asset21  18 
Other assets34,019  35,089 
Total assets$2,657,262  $2,564,981 
Liabilities and stockholders’ equity   
Current liabilities   
Accounts payable$6,746  $3,980 
Accrued compensation34,839  50,121 
Accrued liabilities33,380  46,372 
Current portion of long-term debt62,500  39,063 
Operating lease liabilities13,894  12,401 
Total current liabilities151,359  151,937 
Long-term liabilities   
Long-term debt, net of issuance costs938,558  1,181,615 
Operating lease liabilities, non-current76,666  68,017 
Other long-term liabilities11,429  2,625 
Deferred tax liability123,993  130,492 
Total long-term liabilities1,150,646  1,382,749 
Total liabilities1,302,005  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, respectively8  7 
Additional paid-in capital1,140,268  818,774 
Accumulated earnings214,981  211,514 
Total stockholders’ equity1,355,257  1,030,295 
Total liabilities and stockholders’ equity$2,657,262  $2,564,981 


 
HealthEquity, Inc. and its subsidiaries
Condensed 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 revenue48,544  46,972  142,352  132,538 
Interchange revenue26,245  22,526  83,411  57,545 
Total revenue179,351  157,118  545,401  330,793 
Cost of revenue       
Service costs65,936  52,278  202,195  92,672 
Custodial costs4,762  4,384  14,805  12,716 
Interchange costs4,095  4,421  13,985  13,177 
Total cost of revenue74,793  61,083  230,985  118,565 
Gross profit104,558  96,035  314,416  212,228 
Operating expenses       
Sales and marketing12,880  12,654  36,502  30,015 
Technology and development30,758  23,511  92,490  46,061 
General and administrative22,099  19,222  61,590  37,193 
Amortization of acquired intangible assets19,126  13,051  56,905  16,036 
Merger integration8,193  17,675  31,328  20,459 
Total operating expenses93,056  86,113  278,815  149,764 
Income from operations11,502  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 taxes4,129  (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:       
Basic76,701  70,524  73,358  65,727 
Diluted77,845  70,524  74,665  67,150 


 
HealthEquity, Inc. and its subsidiaries
Condensed 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 amortization85,485  28,791 
Stock-based compensation30,313  31,194 
Amortization of debt issuance costs3,818  1,138 
Gains on marketable equity securities  (27,570)
Other non-cash items1,727  139 
Deferred taxes(973) 690 
Changes in operating assets and liabilities:   
Accounts receivable8,063  (1,901)
Other assets3,309  (4,863)
Operating lease right-of-use assets8,344  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 liabilities8,712  (50)
Net cash provided by operating activities120,717  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 costs286,779  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 options4,491  7,342 
Proceeds from long-term debt  1,250,000 
Payment of debt issuance costs  (30,504)
Net cash provided by financing activities63,643  1,454,405 
Increase (decrease) in cash and cash equivalents107,630  (186,918)
Beginning cash and cash equivalents191,726  361,475 
Ending cash and cash equivalents$299,356  $174,557 


 
HealthEquity, Inc. and its subsidiaries
Condensed 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 received1,053  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 compensation1,346  316 
Intangible member assets included in accounts payable or accrued liabilities289  (151)
Decrease in goodwill due to measurement period adjustments, net5,838   
Exercise of common stock options receivable89  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 marketing2,035  1,304  4,810  3,469 
Technology and development2,641  2,171  8,051  5,600 
General and administrative4,594  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 cash9,017 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 investments3,423 2,514  36% 2,857 
Total HSA Assets12,440 10,459  19% 11,541 
Average daily HSA cash with yield - Year-to-date8,445 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 expense6,952  10,225  28,110  10,355 
Income tax provision (benefit)2,340  (9,918) 2,015  3,908 
Depreciation and amortization10,253  6,203  28,580  12,940 
Amortization of acquired intangible assets19,126  13,051  56,905  16,036 
Stock-based compensation expense11,479  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 expense35
Income tax benefit1 - 0
Depreciation and amortization38
Amortization of acquired intangible assets76
Stock-based compensation expense42
Merger integration expenses41
Other expense5
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 - GAAP4  (31) 5  44  (4) - 2
Non-GAAP adjustments:         
Amortization of acquired intangible assets19  13  57  16  76
Stock-based compensation expense12  8  30  22  42
Merger integration expenses8  17  32  20  41
Acquisition costs  33    41  
Gain on marketable equity securities      (28) 
Total adjustments to income (loss) before income taxes - GAAP39  71  119  71  159
Income before income taxes - Non-GAAP43  40  124  115  155 - 161
Income tax provision - Non-GAAP (1)11  10  31  29  39 - 40
Non-GAAP net income32  30  93  86  116 - 121
          
Diluted weighted-average shares78  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 
TermDefinition
HSAA financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDBConsumer-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 memberConsumers with HSAs that we serve.
Total HSA AssetsHSA 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.
ClientOur employer clients.
Total AccountsThe sum of HSAs and CDBs on our platforms.
Client-held fundsDeposits held on behalf of our Clients to facilitate administration of our CDBs.
Network PartnerOur health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDAAdjusted 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 incomeCalculated 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 shareCalculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.



FAQ

What were HealthEquity's Q3 FY20 revenue results?

HealthEquity reported Q3 FY20 revenue of $179.4 million, a 14% increase compared to the previous year.

What is HealthEquity's outlook for FY21?

HealthEquity projects FY21 revenues between $725 million and $731 million.

How much was HealthEquity's adjusted EBITDA for Q3 FY20?

Adjusted EBITDA for Q3 FY20 was $61.1 million, reflecting a 10% increase from the previous year.

What is the total HSA assets reported by HealthEquity?

HealthEquity reported total HSA assets of $12.4 billion as of October 31, 2020, an increase of 19% year-over-year.

What was the net income for HealthEquity in Q3 FY20?

HealthEquity reported a net income of $1.8 million for Q3 FY20.

HealthEquity, Inc

NASDAQ:HQY

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8.91B
85.56M
2.06%
103.62%
4.8%
Health Information Services
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