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HealthEquity (HQY) Third-Quarter 2021 Results Miss on Revenue; Shares Tumble Pre-Market

Tuesday, December 07, 2021 09:02 AM | Carl Pettit
HealthEquity (HQY) Third-Quarter 2021 Results Miss on Revenue; Shares Tumble Pre-Market

On Dec. 6, HealthEquity (HQY) released its 2021 financial results for its third quarter, which ended October 31, 2021. The company, which provides health care account management services, missed on revenue for the quarter. As a likely result of underperforming, HQY stock took a tumble this morning, down 26.79% before market open Tuesday.

HealthEquity Misses on Revenue

HealthEquity reported revenue of $180 million for the quarter, falling short of forecasts that had the Utah company coming in with an expected $185 million. The firm also posted a net loss of $5.0 million, compared to a net income of $1.8 million for the same period last year.

Third-Quarter Earnings

The company reported a net loss per diluted share of $0.06 as well. Non-GAAP net income per diluted share — adjusted for one-time gains and costs — came in at $0.35, which was slightly better than most analysts had forecast.

CEO Comments

“The HealthEquity team delivered another strong quarter of HSA [health savings account] growth, with new HSA sales of 151,000 in the third quarter and 446,000 in the year to date,” CEO Jon Kessler remarked. “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.”

Fiscal Year Outlook

HealthEquity expects full-year revenue (ending January 31, 2022) to reach $750 million to $755 million, with non-GAAP net income per diluted share to land somewhere between $1.30 to $1.35 per share for the full fiscal year. The company's outlook for net loss is “between $36 million and $33 million,” resulting in a net loss of $0.43 to $0.40 per diluted share.

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