Earnings Recap: HealthEquity, Inc. (NASDAQ: HQY)

Shares of HealthEquity, Inc. (NASDAQ: HQY) closed the trading at a price of $80.85 with the positive change of +1.18%. In the past session approximately 192,429 shares were exchanged against the average daily trading volume of 479,948 shares. The stock touched to the maximum level of $81.27, and it reached the lower level of $79.37 in past session. The stock’s market capitalization has now valued at $5.016B. The stock’s low price in its 52 week is $40.21 per share while $83.34 as the 52 week high price. The last bid price was called at $71.14 x 800 and the ask price was stated at $82.00 x 800.

HealthEquity, Inc. (NASDAQ: HQY) reported financial results for its first quarter ended April 30, 2018.

First quarter financial results

For the first quarter ended April 30, 2018, HealthEquity stated revenue of $69.9M, a raise of 26% contrast to $55.4M for the first quarter ended April 30, 2017. Revenue consisted of:

Service revenue of $24.8M, a raise of 10% contrast to Q1 FY18.

Custodial revenue of $28.4M, a raise of 47% contrast to Q1 FY18.

Interchange revenue of $16.6M, a raise of 22% contrast to Q1 FY18.

Net income was $22.6M for the first quarter ended April 30, 2018, contrast to $14.0M for the first quarter ended April 30, 2017.

Net income per diluted share was $0.36 for the first quarter ended April 30, 2018, contrast to $0.23 for the first quarter ended April 30, 2017.

Non-GAAP net income per diluted share was $0.31 for the first quarter ended April 30, 2018, contrast to $0.19 for the first quarter ended April 30, 2017.

Non-GAAP Adjusted EBITDA was $29.6M for the first quarter ended April 30, 2018, a raise of 32% contrast to $22.4M for the first quarter ended April 30, 2017. Adjusted EBITDA was 42% of revenue for the first quarter ended April 30, 2018, contrast to 40% for the first quarter ended April 30, 2017.

As of April 30, 2018, we had $269.8M of cash, cash equivalents and marketable securities and no outstanding debt. This compares to $240.3M in cash, cash equivalents and marketable securities and no outstanding debt as of January 31, 2018.

HSA Member and Custodial Asset metrics

The total number of HSAs for which we serve as a non-bank custodian (“HSA Members”) as of April 30, 2018 was 3.5M, a raise of 24% from 2.8M as of April 30, 2017.

Total Custodial Assets as of April 30, 2018 was $6.9B, a raise of 31% year over year, consisting of:

Custodial Cash Assets of $5.5B, a raise of 24% contrast to April 30, 2017; and

Custodial Investment Assets of $1.4B, a raise of 75% contrast to April 30, 2017.

Business outlook

We have modestly increased our outlook for the year ending January 31, 2019. We expect our revenue to be between $278M and $284M. Our outlook for net income is a range of $55M to $59M, resulting in a net income per diluted share range of $0.86 to $0.92. Our Adjusted EBITDA outlook is a range of $107M to $111M. We also expect our non-GAAP net income to be in a range between $64M and $68M. Our non-GAAP net income is calculated by adding back to net income all non-cash stock-based compensation expense, net of an estimated statutory tax rate of 24%, and the impact of excess tax benefits Because of the adoption of Accounting Standards Update (“ASU”) 2016-09. Our non-GAAP net income outlook results in a non-GAAP net income per diluted share range between $1.00 to $1.06.

(HQY) price volatility for a month noted as 3.19% however its price volatility for a week documented as 3.56%. The corporation holds 61.10 million outstanding shares and its 60.12 million shares were floated in the market. The stock established a positive trend of 7.09% in last week and indicated rise of 1.08% in previous month.

Danielle Lockwood

Danielle Lockwood is an experienced writer, editor and proofreader. She covers all Acquisition & Merger news of different companies. These companies registered on US exchanges i.e. NYSE, NASDAQ, AMEX, NYSEMKT etc. Danielle completed her Post-Graduate Diploma in Business Administration with a specialization in Finance from International School of Business and Media (ISB&M). She is married and lives in sunny West Central Florida with her husband and two children.

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