HealthEquity : Reports Fiscal Year and Fourth Quarter Ended January 31, 2022 Financial Results - Form 8-K
March 22, 2022 at 04:12 pm
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HealthEquity Reports Fiscal Year and Fourth Quarter Ended January 31, 2022 Financial Results
Highlights of the fiscal year include:
•Revenue of $756.6 million, an increase of 3% compared to $733.6 million in FY21.
•Net loss of $44.3 million, compared to net income of $8.8 million in FY21, with non-GAAP net income of $110.2 million, compared to $127.6 million in FY21.
•Net loss per diluted share of $0.53, compared to net income per diluted share of $0.12 in FY21, with non-GAAP net income per diluted share of $1.33, compared to $1.69 in FY21.
•Adjusted EBITDA of $236.0 million, a decrease of 2% compared to $240.8 million in FY21.
•7.2 million HSAs, an increase of 25% compared to FY21.
•Total HSA Assets of $19.6 billion, an increase of 37% compared to FY21.
•14.4 million Total Accounts, including both HSAs and complementary CDBs, an increase of 12% compared to FY21.
•The Company sold 5,750,000 shares of common stock, yielding net proceeds of $456.6 million.
•The Company closed its acquisitions of Luum, the Fifth Third Bank HSA portfolio, and Further.
•The Company issued $600 million aggregate principal amount of 4.50% Senior Notes due 2029 and refinanced its credit facility.
Highlights of the fourth quarter include:
•Revenue of $203.3 million, an increase of 8% compared to $188.2 million in Q4 FY21.
•Net loss of $32.8 million, compared to net income of $5.4 million in Q4 FY21, with non-GAAP net income of $17.0 million, compared to $34.6 million in Q4 FY21.
•Net loss per diluted share of $0.39, compared to net income per diluted share of $0.07 in Q4 FY21, with non-GAAP net income per diluted share of $0.20, compared to $0.44 in Q4 FY21.
•Adjusted EBITDA of $50.4 million, a decrease of 11% compared to $56.6 million in Q4 FY21.
•The Company closed its acquisition of Further on November 1, 2021.
•The Company agreed to purchase the HealthSavings HSA portfolio, which closed on March 2, 2022.
Draper, Utah - March 22, 2022 - HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), the nation's largest health savings account non-bank custodian, today announced financial results for its fourth quarter and fiscal year ended January 31, 2022.
"The HealthEquity team closed out the fiscal 2022 year strong with $203 million in fourth quarter revenue, the highest revenue quarter in our history," said Jon Kessler, President and CEO of HealthEquity. "With record HSA and asset growth in fiscal 2022, pandemic headwinds beginning to subside, and the emergence of potential tailwinds, we believe we are well-positioned for continued growth in fiscal 2023."
Fiscal year financial results
Revenue for the fiscal year ended January 31, 2022 was $756.6 million, an increase of 3% compared to $733.6 million for the fiscal year ended January 31, 2021. Revenue this year included: service revenue of $426.9 million, custodial revenue of $202.8 million, and interchange revenue of $126.8 million.
HealthEquity reported a net loss of $44.3 million, or $0.53 per diluted share, and non-GAAP net income of $110.2 million, or $1.33 per diluted share, for the fiscal year ended January 31, 2022. The Company reported net income of $8.8 million, or $0.12 per diluted share, and non-GAAP net income of $127.6 million, or $1.69 per diluted share, for the fiscal year ended January 31, 2021.
Adjusted EBITDA was $236.0 million for the fiscal year ended January 31, 2022, a decrease of 2% compared to $240.8 million for the fiscal year ended January 31, 2021. Adjusted EBITDA was 31% of revenue, compared to 33% for the fiscal year ended January 31, 2021.
As of January 31, 2022, HealthEquity had $225.4 million of cash and cash equivalents and $930.8 million of outstanding debt, net of issuance costs. This compares to $328.8 million in cash and cash equivalents and $986.7 million of outstanding debt as of January 31, 2021.
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Fourth quarter financial results
Revenue for the fourth quarter ended January 31, 2022 was $203.3 million, an increase of 8% compared to $188.2 million for the fourth quarter ended January 31, 2021. Revenue this quarter included: service revenue of $112.5 million, custodial revenue of $58.1 million, and interchange revenue of $32.8 million.
HealthEquity reported a net loss of $32.8 million, or $0.39 per diluted share, and non-GAAP net income of $17.0 million, or $0.20 per diluted share, for the fourth quarter ended January 31, 2022. The Company reported net income of $5.4 million, or $0.07 per diluted share, and non-GAAP net income of $34.6 million, or $0.44 per diluted share, for the fourth quarter ended January 31, 2021.
Adjusted EBITDA was $50.4 million for the fourth quarter ended January 31, 2022, a decrease of 11% compared to $56.6 million for the fourth quarter ended January 31, 2021. Adjusted EBITDA was 25% of revenue, compared to 30% for the fourth quarter ended January 31, 2021.
Account and asset metrics
HSAs as of January 31, 2022 were approximately 7.2 million, an increase of 25% year over year, including 455,000 HSAs with investments, an increase of 37% year over year. Total Accounts as of January 31, 2022 were 14.4 million, including 7.2 million other consumer-directed benefits ("CDBs").
Total HSA Assets as of January 31, 2022 were $19.6 billion, an increase of 37% year over year. Total HSA Assets included $12.9 billion of HSA cash and $6.7 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.9 billion as of January 31, 2022.
HealthSavings HSA portfolio acquisition
On December 4, 2021, we signed an agreement to acquire the Health Savings Administrators, L.L.C. ("HealthSavings") HSA portfolio, which consisted of $1.3 billion of HSA Assets held in approximately 87,000 HSAs in exchange for a purchase price of $60 million. This acquisition closed on March 2, 2022.
WageWorks integration
HealthEquity completed its acquisition of WageWorks on August 30, 2019. As of January 31, 2022, the Company has substantially completed the integration of WageWorks and achieved approximately $80 million in annualized ongoing net synergies.
Business outlook
For the fiscal year ending January 31, 2023, management expects revenues of $820 million to $830 million. Its outlook for net loss is between $61 million and $53 million, resulting in net loss of $0.73 to $0.63 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $102 million and $110 million, resulting in non-GAAP net income per diluted share of $1.21 to $1.30 (based on an estimated 84 million weighted-average shares outstanding). Management expects Adjusted EBITDA of $245 million to $255 million.
See "Non-GAAP financial information" below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.
Conference call
HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Tuesday, March 22, 2022 to discuss the fiscal 2022 fourth quarter and year-end results. The conference call will be accessible by dialing 844-791-6252, or 661-378-9636 for international callers, and referencing conference ID 4530548. A live audio webcast of the call will also be available on the investor relations section of our website at http://ir.healthequity.com.
Non-GAAP financial information
To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.
•Adjusted EBITDA is adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and other certain non-operating items.
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•Non-GAAP net income is calculated by adding back to GAAP net income (loss) before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, and losses on extinguishment of debt, costs associated with unused office space, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
•Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is not excluded. We have changed the definitions of Adjusted EBITDA and non-GAAP net income to exclude costs associated with unused office space to reflect that a majority of our work force is now permanently working remotely. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.
About HealthEquity
HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for our more than 14 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to connect health and wealth and value our culture of remarkable "Purple" service. For more information, visit www.healthequity.com.
Forward-looking statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words "may," "believes," "intends," "seeks," "aims," "anticipates," "plans," "estimates," "expects," "should," "assumes," "continues," "could," "will," "future" and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.
Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:
•the impact of the ongoing COVID-19 pandemic on the Company, its operations and its financial results;
•our ability to realize the anticipated financial and other benefits from combining the operations of WageWorks and Further with our business in an efficient and effective manner;
•our ability to integrate the Further business successfully;
•our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
•our dependence on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits;
•our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
•the significant competition we face and may face in the future, including from those with greater resources than us;
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•our reliance on the availability and performance of our technology and communications systems;
•recent and potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
•the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
•our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
•our reliance on partners and third-party vendors for distribution and important services;
•our ability to develop and implement updated features for our technology and communications systems and successfully manage our growth;
•our ability to protect our brand and other intellectual property rights; and
•our reliance on our management team and key team members.
For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our most recent Annual Report on Form 10-K and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Investor Relations Contact
Richard Putnam
801-727-1209
rputnam@healthequity.com
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HealthEquity, Inc. and its subsidiaries
Consolidated balance sheets (unaudited)
(in thousands, except par value)
January 31, 2022
January 31, 2021
Assets
Current assets
Cash and cash equivalents
$
225,414
$
328,803
Accounts receivable, net of allowance for doubtful accounts of $6,228 and $4,239 as of January 31, 2022 and 2021, respectively
87,428
72,767
Other current assets
38,495
58,607
Total current assets
351,337
460,177
Property and equipment, net
23,372
29,106
Operating lease right-of-use assets
63,613
89,508
Intangible assets, net
973,137
767,003
Goodwill
1,645,836
1,327,193
Other assets
49,807
37,420
Total assets
$
3,107,102
$
2,710,407
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$
27,541
$
1,614
Accrued compensation
47,136
50,670
Accrued liabilities
57,589
75,880
Current portion of long-term debt
8,750
62,500
Operating lease liabilities
12,171
14,037
Total current liabilities
153,187
204,701
Long-term liabilities
Long-term debt, net of issuance costs
922,077
924,217
Operating lease liabilities, non-current
65,232
74,224
Other long-term liabilities
14,185
8,808
Deferred tax liability
99,846
119,729
Total long-term liabilities
1,101,340
1,126,978
Total liabilities
1,254,527
1,331,679
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of January 31, 2022 and 2021
-
-
Common stock, $0.0001 par value, 900,000 shares authorized, 83,780 and 77,168 shares issued and outstanding as of January 31, 2022 and 2021, respectively
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Additional paid-in capital
1,676,508
1,158,372
Accumulated earnings
176,059
220,348
Total stockholders' equity
1,852,575
1,378,728
Total liabilities and stockholders' equity
$
3,107,102
$
2,710,407
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HealthEquity, Inc. and its subsidiaries
Consolidated statements of operations and comprehensive income (loss) (unaudited)
Three months ended January 31,
Year ended January 31,
(in thousands, except per share data)
2022
2021
2022
2021
Revenue
Service revenue
$
112,461
$
111,328
$
426,910
$
430,966
Custodial revenue
58,057
48,581
202,817
190,933
Interchange revenue
32,779
28,260
126,829
111,671
Total revenue
203,297
188,169
756,556
733,570
Cost of revenue
Service costs
86,119
78,019
290,302
280,214
Custodial costs
6,300
4,769
21,867
19,574
Interchange costs
5,579
4,463
20,681
18,448
Total cost of revenue
97,998
87,251
332,850
318,236
Gross profit
105,299
100,918
423,706
415,334
Operating expenses
Sales and marketing
16,317
13,462
58,605
49,964
Technology and development
45,927
32,319
157,364
124,809
General and administrative
20,876
22,903
84,379
84,493
Amortization of acquired intangible assets
23,046
19,159
82,791
76,064
Merger integration
26,383
14,662
64,805
45,990
Total operating expenses
132,549
102,505
447,944
381,320
Income (loss) from operations
(27,250)
(1,587)
(24,238)
34,014
Other income (expense)
Interest expense
(10,748)
(6,771)
(36,572)
(34,881)
Other income (expense), net
(5,767)
7,016
(5,931)
5,007
Total other income (expense)
(16,515)
245
(42,503)
(29,874)
Income (loss) before income taxes
(43,765)
(1,342)
(66,741)
4,140
Income tax benefit
(10,947)
(6,709)
(22,452)
(4,694)
Net income (loss) and comprehensive income (loss)
$
(32,818)
$
5,367
$
(44,289)
$
8,834
Net income (loss) per share:
Basic
$
(0.39)
$
0.07
$
(0.53)
$
0.12
Diluted
$
(0.39)
$
0.07
$
(0.53)
$
0.12
Weighted-average number of shares used in computing net income (loss) per share:
Basic
83,708
76,846
83,133
74,235
Diluted
83,708
78,559
83,133
75,679
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HealthEquity, Inc. and its subsidiaries
Consolidated statements of cash flows (unaudited)
Year ended January 31,
(in thousands)
2022
2021
2020
Cash flows from operating activities:
Net income (loss)
$
(44,289)
$
8,834
$
39,664
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
137,188
115,904
55,352
Stock-based compensation
52,750
42,863
39,844
Impairment of right-of-use assets
11,246
-
-
Amortization of debt issuance costs
4,448
5,102
2,711
Loss on extinguishment of debt
4,049
-
-
Change in fair value of contingent consideration
(2,147)
-
-
Gains on equity securities
(1,677)
-
(27,570)
Other non-cash items
1,232
1,753
728
Deferred taxes
(23,430)
(5,132)
3,665
Changes in operating assets and liabilities:
Accounts receivable
(11,204)
(413)
(4,029)
Other assets
7,464
(24,839)
(12,577)
Operating lease right-of-use assets
15,235
11,150
6,218
Accrued compensation
(3,657)
771
4,550
Accounts payable, accrued liabilities, and other current liabilities
(2,178)
30,422
1,920
Operating lease liabilities, non-current
(9,412)
(10,803)
(5,383)
Other long-term liabilities
5,377
6,007
(83)
Net cash provided by operating activities
140,995
181,619
105,010
Cash flows from investing activities:
Acquisitions, net of cash acquired
(504,533)
-
(1,644,575)
Purchases of software and capitalized software development costs
(62,708)
(51,500)
(25,654)
Acquisition of intangible member assets
(65,465)
(32,371)
(9,134)
Purchases of property and equipment
(8,908)
(13,093)
(7,286)
Purchases of equity securities
-
-
(53,845)
Proceeds from sale of equity securities
2,367
-
-
Net cash used in investing activities
(639,247)
(96,964)
(1,740,494)
Cash flows from financing activities:
Principal payments on long-term debt
(1,003,125)
(239,063)
(7,813)
Proceeds from long-term debt
950,000
-
1,250,000
Payment of debt issuance costs
(11,920)
-
(30,504)
Proceeds from follow-on equity offering, net of payments for offering costs
456,640
286,779
458,495
Settlement of client-held funds obligation, net
(486)
(3,862)
(215,790)
Proceeds from exercise of common stock options
9,754
8,568
11,347
Payment of contingent consideration
(6,000)
-
-
Net cash provided by financing activities
394,863
52,422
1,465,735
Increase (decrease) in cash and cash equivalents
(103,389)
137,077
(169,749)
Beginning cash and cash equivalents
328,803
191,726
361,475
Ending cash and cash equivalents
$
225,414
$
328,803
$
191,726
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HealthEquity, Inc. and its subsidiaries
Consolidated statements of cash flows (unaudited) (continued)
Year ended January 31,
(in thousands)
2022
2021
2020
Supplemental cash flow data:
Interest expense paid in cash
$
16,107
$
27,686
$
21,806
Income tax payments (refunds), net
(5,632)
(6,022)
9,277
Supplemental disclosures of non-cash investing and financing activities:
Purchases of software and capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation
4,640
1,930
1,742
Purchases of property and equipment included in accounts payable or accrued liabilities
1,414
160
487
Purchases of intangible member assets included in accounts payable or accrued liabilities
1,692
-
-
Decrease in goodwill due to measurement period adjustments, net
19
5,438
-
Exercise of common stock options receivable
470
1,478
-
Equity-based acquisition consideration
-
-
3,776
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Stock-based compensation expense (unaudited)
Total stock-based compensation expense included in the consolidated statements of operations and comprehensive income (loss) is as follows:
Three months ended January 31,
Year ended January 31,
(in thousands)
2022
2021
2022
2021
Cost of revenue
$
2,711
$
2,259
$
11,258
$
7,996
Sales and marketing
1,324
2,176
7,001
6,986
Technology and development
2,968
2,721
13,132
10,772
General and administrative
4,047
5,394
21,359
17,109
Other expense, net
-
-
342
-
Total stock-based compensation expense
$
11,050
$
12,550
$
53,092
$
42,863
Total Accounts (unaudited)
(in thousands, except percentages)
January 31, 2022
January 31, 2021
% Change
HSAs
7,207
5,782
25
%
New HSAs from sales - Quarter-to-date
472
370
28
%
New HSAs from sales - Year-to-date
918
687
34
%
New HSAs from acquisitions - Year-to-date
740
-
n/a
HSAs with investments
455
333
37
%
CDBs
7,192
7,028
2
%
Total Accounts
14,399
12,810
12
%
Average Total Accounts - Quarter-to-date
14,326
12,659
13
%
Average Total Accounts - Year-to-date
13,450
12,604
7
%
HSA assets (unaudited)
(in millions, except percentages)
January 31, 2022
January 31, 2021
% Change
HSA cash with yield (1)
$
12,934
$
9,875
31
%
HSA cash without yield (2)
9
244
(96)
%
Total HSA cash
12,943
10,119
28
%
HSA investments with yield (1)
6,668
4,078
64
%
HSA investments without yield (2)
7
138
(95)
%
Total HSA investments
6,675
4,216
58
%
Total HSA Assets
19,618
14,335
37
%
Average daily HSA cash with yield - Year-to-date
10,465
8,599
22
%
Average daily HSA cash with yield - Quarter-to-date
$
12,084
$
9,060
33
%
(1)HSA Assets that generate custodial revenue.
(2)HSA Assets that do not generate custodial revenue.
Client-held funds (unaudited)
(in millions, except percentages)
January 31, 2022
January 31, 2021
% Change
Client-held funds (1)
$
897
$
986
(9)
%
Average daily Client-held funds - Year-to-date (1)
842
847
(1)
%
Average daily Client-held funds - Quarter-to-date (1)
822
848
(3)
%
(1)Client-held funds that generate custodial revenue.
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Net income (loss) reconciliation to Adjusted EBITDA (unaudited)
Three months ended January 31,
Year ended January 31,
(in thousands)
2022
2021
2022
2021
Net income (loss)
$
(32,818)
$
5,367
$
(44,289)
$
8,834
Interest income
(82)
(195)
(1,501)
(1,045)
Interest expense
10,748
6,771
36,572
34,881
Income tax benefit
(10,947)
(6,709)
(22,452)
(4,694)
Depreciation and amortization
15,778
11,259
54,397
39,839
Amortization of acquired intangible assets
23,046
19,159
82,791
76,064
Stock-based compensation expense
11,050
12,550
52,750
42,863
Merger integration expenses
26,383
14,662
64,805
45,990
Acquisition costs (1)
5,915
1,039
10,832
1,118
Gain on equity securities
(15)
-
(1,692)
-
Other (2)
1,381
(7,257)
3,802
(3,055)
Adjusted EBITDA
$
50,439
$
56,646
$
236,015
$
240,795
(1)For the fiscal year ended January 31, 2022, acquisition costs included $0.3 million of stock-based compensation expense.
(2)For the fiscal year ended January 31, 2022, Other consisted of amortization of incremental costs to obtain a contract of $4.3 million, partially offset by other income, net, of $0.5 million. For the fiscal year ended January 31, 2021, Other consisted of amortization of incremental costs to obtain a contract of $2.0 million, offset by other income of $5.1 million.
Reconciliation of net loss outlook to Adjusted EBITDA outlook (unaudited)
Outlook for the year ending
(in millions)
January 31, 2023
Net loss
$(61) - (53)
Interest income
(2)
Interest expense
42
Income tax benefit
(20) - (18)
Depreciation and amortization
64
Amortization of acquired intangible assets
102
Stock-based compensation expense
79
Merger integration expenses
31
Costs associated with unused office space
5
Other
5
Adjusted EBITDA
$245 - 255
10
Reconciliation of net loss to non-GAAP net income (unaudited)
Three months ended
Year ended
Outlook for the year ending
(in millions, except per share data)
January 31, 2022
January 31, 2022
January 31, 2023
Net loss
$
(33)
$
(44)
$(61) - (53)
Income tax benefit
(11)
(23)
(20) - (18)
Loss before income taxes - GAAP
(44)
(67)
(81) - (71)
Non-GAAP adjustments:
Amortization of acquired intangible assets
23
83
102
Stock-based compensation expense
11
53
79
Merger integration expenses
27
65
31
Acquisition costs
6
11
-
Gain on equity securities
-
(2)
-
Loss on extinguishment of debt
-
4
-
Costs associated with unused office space
-
-
5
Total adjustments to loss before income taxes - GAAP
67
214
217
Income before income taxes - Non-GAAP
23
147
136 - 146
Income tax provision - Non-GAAP (1)
6
37
34 - 36
Non-GAAP net income
17
110
102 - 110
Diluted weighted-average shares
84
83
84
Non-GAAP net income per diluted share (2)
$
0.20
$
1.33
$1.21 - 1.30
(1)The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company's longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.
(2)Non-GAAP net income per diluted share may not calculate due to rounding of non-GAAP net income and diluted weighted-average shares.
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Certain terms
Term
Definition
HSA
A financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDB
Consumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements ("FSAs" and "HRAs"), Consolidated Omnibus Budget Reconciliation Act ("COBRA") administration, commuter and other benefits.
HSA member
Consumers with HSAs that we serve.
Total HSA Assets
HSA members' deposits with our federally insured custodial depository partners and custodial cash placed in annuity contracts with our insurance company partners. Total HSA Assets also includes HSA members' investments in mutual funds through our custodial investment fund partner.
Client
Our employer clients.
Total Accounts
The sum of HSAs and CDBs on our platforms.
Client-held funds
Deposits held on behalf of our Clients to facilitate administration of our CDBs.
Network Partner
Our health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and other certain non-operating items.
Non-GAAP net income
Calculated by adding back to GAAP net income (loss) before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, and losses on extinguishment of debt, costs associated with unused office space, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted share
Calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
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Disclaimer
HealthEquity Inc. published this content on 22 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2022 20:11:02 UTC.
HealthEquity, Inc. is engaged in providing technology-enabled services that help consumers make healthcare savings and spending decisions. The Company uses its technology to manage consumers' tax-advantaged health savings accounts (HSAs) and other consumer-directed benefits (CDBs) offered by employers, including flexible spending accounts and health reimbursement arrangements (FSAs and HRAs), and to administer Consolidated Omnibus Budget Reconciliation Act (COBRA), commuter and other benefits. It offers a mutual fund investment platform and access to an online-only automated investment advisory service to all its members. It offers multiple cloud-based platforms, accessed by its members online via a desktop or mobile device, through which individuals can make health saving and spending decisions, pay healthcare bills, compare treatment options and prices, receive personalized benefit and clinical information, earn wellness incentives, grow their savings and make investment choices.