HealthEquity went down by 25% and announced its third-quarter financials for 2021

on Dec 7, 2021
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  • Reported $180 million revenue this quarter, representing about a one percent increase.
  • Recorded $5 million net loss representing a 10% decrease.
  • Reported $61.1 million Adjusted EBITDA.

HealthEquity Inc. (NASDAQ: HQY), a top HSA (health savings account) non-bank custodian, dropped by 25% and announced its third-quarter financial results for 2021. 

How does top management feel?

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HealthEquity’s Chief Executive Officer and President, Jon Kessler, said that their team helped deliver another solid financial quarter of HSA growth. The company recorded 151,000 new HAS sales in the third quarter. Mr. Kessler said:

“Adding to this year’s strong organic growth, we have on-boarded 160,000 new HSAs from Fifth Third Bank in the third quarter and 580,000 from Further in November to start our fourth quarter. HSA members have added nearly another $1 billion to their HSAs this quarter, and their HSA investments have grown significantly.”

The CEO claims they’re expecting to finish this year’s selling season strongly and continue to outdo market growth. 

Financial results 

The company reported $180 million in revenue in the third quarter of this fiscal year, representing a less than 1% increase compared to the $179 million they recorded in the same quarter of the previous fiscal year. 

This third-quarter revenue included; $102.7 million in service revenue, $49 million in custodial revenue, and $28 million in interchange revenue. 

The company recorded a $5 million net loss, representing diluted shares of $0.06 each. And a $28.9 million non-GAAP net income. The Adjusted EBITDA, the company, reported came to $61.1 million for the third quarter of 2021, which was the same as what it got in the same quarter of the previous fiscal year. 

HealthEquity also reported 151,000 new HSA sales in the third quarter of 2021, which was more than the 104,000 it recorded in the same quarter of the previous fiscal year. 

The company is also looking to complete its WageWorks acquisition soon and has already attained roughly $75 million from it. The company expects to make revenues of roughly $750 million in the first quarter of the next financial year. It expects that to be around $33 million and $36 million when it comes to net loss. 

All top management believes that there’s still a lot more to come soon.