LONDON, UK / ACCESSWIRE / July 2, 2018 / If you want access to our free earnings report on HealthEquity, Inc. (NASDAQ: HQY), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HQY. The Company reported its financial results on June 04, 2018, for the first quarter of the fiscal year 2019, ended April 30, 2018. The Company surpassed analysts' estimates for earnings and revenues in Q1 FY19. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For Q1 FY19, HealthEquity's total revenues reached $69.90 million, an increase of 26.13% from $55.42 million in Q1 FY18. The Company's revenue numbers exceeded analysts' consensus estimates of $68.80 million.
For the quarter under review, HealthEquity's service revenues increased 10.38% to $24.82 million; its custodial revenues jumped 47.18% to $28.43 million on a y-o-y basis; and its interchange revenues advanced 22.28% to $16.65 million on a y-o-y basis. HealthEquity had HSA Members of 3.50 million in Q1 FY19, an increase of 24% from Q1 FY18. The Company had custodial assets of $6.90 billion in the reported quarter, an increase of 31% from the prior year's same quarter.
During Q1 FY19, HealthEquity's total cost of revenues was $25.55 million, 17.84% higher than $21.68 million in Q1 FY18. The Company's gross profit advanced 31.46% to $44.36 million in the quarter under review from $33.74 million in the year ago comparable quarter.
HealthEquity incurred total operating expenses of $23.82 million in Q1 FY19, 33.69% higher than $17.81 million in Q1 FY18. For the reported quarter, the Company's sales and marketing (S&M) expenses increased 48.45% to $6.86 million on a y-o-y basis; its technology and development expenses jumped 27.83% to $7.98 million on a y-o-y basis; while its general and administrative (G&A) expenses advanced 27.93% to $7.51 million on a y-o-y basis. HealthEquity's income from operations was $20.54 million in Q1 FY19, an increase of 28.96% from $15.93 million in Q1 FY18. Besides, the Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) advanced 32.16% to $29.63 million in the reported quarter from $22.42 million in the previous year's corresponding quarter.
HealthEquity had a net income of $22.58 million in the quarter ended April 30, 2018, up 60.93% from $14.03 million in Q1 FY18. The Company's diluted earnings per share (EPS) also ascended 56.52% to $0.36 in the reported quarter from $0.23 in the year ago same quarter. The Company's reported earnings included stock-based compensation and excess tax benefit due to the adoption of ASU 2016-09. HealthEquity's adjusted diluted EPS, excluding these non-recurring items, were $0.31 in Q1 FY19, up 63.16% from $0.19 in Q1 FY18. This was higher than analysts' consensus estimates of $0.28 per share.
HealthEquity had cash, cash equivalents, and marketable securities of $269.84 million as on April 30, 2018, an increase of 12.31% from $240.27 million as on January 31, 2018. The Company had no outstanding debt as on April 30, 2018, the same as on January 31, 2018.
HealthEquity's cash provided by operating activities was $22.70 million in the three months ended April 30, 2018, 45.76% higher than $15.58 million in the comparable period of last year.
HealthEquity spent $1.12 million on purchases of property and equipment in Q1 FY19, 21.99% lower than $1.44 million in Q1 FY18. The Company generated $10.17 million from the exercise of common stock options in the reported quarter compared to $3.83 million in Q1 FY18, reflecting an increase of 165.53%.
HealthEquity increased its outlook for the full fiscal year 2019, ending January 31, 2019. The Company expects its revenues to be between $278 million and $284 million, and its net income to be between $55 million to $59 million for FY19. The Company expects its GAAP diluted EPS to be in the range of $0.86 to $0.92, and its adjusted EBITDA to be in the band of $107 million to $111 million for FY19. HealthEquity expects its non-GAAP net income to be in the range of $64 million and $68 million, and its non-GAAP diluted EPS to be in the band of $1 to $1.06 for FY19.
Stock Performance Snapshot
June 29, 2018 - At Friday's closing bell, HealthEquity's stock dropped 2.53%, ending the trading session at $75.10.
Volume traded for the day: 450.39 thousand shares.
Stock performance in the last month – up 1.06%; previous three-month period – up 24.36%; past twelve-month period – up 51.53%; and year-to-date – up 60.95%
After last Friday's close, HealthEquity's market cap was at $4.60 billion.
Price to Earnings (P/E) ratio was at 83.63.
The stock is part of the Technology sector, categorized under the Healthcare Information Services industry. This sector was up 0.2% at the end of the session.
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