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HealthEquity Gains After Q1 Results, Guides FY23 Revenue Above Consensus

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  • HealthEquity Inc (NASDAQ: HQY) reported first-quarter revenue growth of 12% year-over-year to $205.7 million, beating the consensus of $203.98 million.

  • Service revenue was $104.3 million, custodial revenue was $59.4 million, and interchange revenue was $42 million.

  • The gross margin declined by 193 bps to 54.1%, and the company recorded an operating loss of $7.29 million, compared to a profit of $4.25 million a year ago.

  • Adjusted EPS was $0.27, above the consensus of $0.26.

  • Adjusted EBITDA of $58.3 million, a decrease of 1% Y/Y, and the margin was 28%, compared to 32% in 1Q22.

  • Net cash provided by operating activities of $7.08 million in Q1, versus $30.92 million in 1Q22.

  • HealthEquity reported sales of 159,000 new HSAs in Q1, compared to 115,000 in1Q22.

  • HSAs as of April 30, 2022, was 7.4 million, an increase of 26% Y/Y. Total Accounts were 14.5 million, including 7.1 million other consumer-directed benefits ("CDBs").

  • Total HSA Assets as of April 30, 2022, were $20.3 billion (+35% Y/Y). Total HSA Assets included $12.9 billion of HSA cash and $7.3 billion of HSA investments.

  • FY23 Outlook: HealthEquity expects revenues of $827 million to $837 million, vs. a consensus of $826.16 million.

  • It sees adjusted net income per diluted share of $1.23 to $1.32 and Adjusted EBITDA of $249 million to $259 million.

  • Price Action: HQY shares are trading higher by 3.06% at $64.35 during the post-market session on Monday.


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