Highlights of the first quarter include: Revenue of $287.6 million, an increase of 18% compared to $244.4 million in Q1 FY24. Net income of $28.8 million, compared to $4.1 million in Q1 FY24, with non-GAAP net income of $70.3 million, an increase of 64% compared to $42.8 million in Q1 FY24. Net income per diluted share of $0.33, compared to $0.05 in Q1 FY24, with non-GAAP net income per diluted share of $0.80, compared to $0.50 in Q1 FY24. Adjusted EBITDA of $117.4 million, an increase of 36% compared to $8 ...

Highlights of the first quarter include: Revenue of $287.6 million, an increase of 18% compared to $244.4 million in Q1 FY24. Net income of $28.8 million, compared to $4.1 million in Q1 FY24, with non-GAAP net income of $70.3 million, an increase of 64% compared to $42.8 million in Q1 FY24. Net income per diluted share of $0.33, compared to $0.05 in Q1 FY24, with non-GAAP net income per diluted share of $0.80, compared to $0.50 in Q1 FY24. Adjusted EBITDA of $117.4 million, an increase of 36% compared to $8 ...

Core Viewpoint - HealthEquity, Inc. is expected to report strong first-quarter fiscal 2025 results, driven by growth in Health Savings Accounts (HSAs) and significant asset acquisitions [1][2][3]. Group 1: Financial Performance - The company reported an EPS of 63 cents in the last quarter, exceeding the Zacks Consensus Estimate by 12.5% [1]. - Over the past four quarters, HealthEquity has consistently outperformed earnings estimates, with an average earnings surprise of 17.4% [1]. - For the first quarter of fiscal 2025, total revenue is estimated at $278.8 million, reflecting a 14.1% increase year-over-year, while EPS is projected to be 66 cents, indicating a 32% improvement from the previous year [6]. Group 2: HSA Growth - HealthEquity has seen a significant increase in HSAs, with a 8.9% year-over-year rise in the number of HSA members and a 13.9% increase in total HSA assets as of January 31, 2024 [3]. - The company has recently acquired approximately 2.8 billion dollars in HSA assets from BenefitWallet, adding 665,000 customer accounts [2][3]. Group 3: Strategic Focus - Management has emphasized capital investment in its proprietary health accounts platform, leveraging cloud technology, data science, and API technology to enhance user experience and partnerships [5]. - The Zacks Model anticipates a 12.3% increase in total HSA assets and a 4.8% increase in accounts for the fiscal first quarter [4].

The collective assessment of analysts points to an estimated 'Total HSA Assets' of $25.82 billion. The estimate compares to the year-ago value of $22.32 billion. Bearing this in mind, let's now explore the average estimates of specific HealthEquity metrics that are commonly monitored and projected by Wall Street analysts. Analysts forecast 'Revenue- Service revenue' to reach $113.48 million. The estimate indicates a year-over-year change of +8%. The consensus estimate for 'Revenue- Custodial revenue' stands ...

Core Viewpoint - HealthEquity, Inc. (HQY) is experiencing growth driven by its business model and strong performance in Health Savings Accounts (HSA), despite facing competition and integration challenges from acquisitions [1][2]. Business Model and Strategy - HealthEquity employs a business-to-business-to-consumer distribution strategy, aiming to expand service offerings to current clients and attract new ones through a diverse distribution network [4]. Strength in HSA - As of January 31, 2024, HealthEquity's total number of HSAs increased by 8.9% year over year, with 610,000 HSAs having investments, marking a 12.8% rise. Total accounts grew by 5.2%, including 7 million other consumer-directed benefits (CDB). Total HSA assets rose by 13.9% year over year [5]. Strong Q4 Results - HealthEquity reported solid top and bottom-line performances in the fourth quarter, benefiting from robust contributions across most revenue sources and an expansion of margins [6]. Downsides - The success of recent acquisitions hinges on effective integration, which may be more time-consuming and costly than anticipated, potentially disrupting ongoing business operations [7][8]. - HealthEquity faces significant competition in the Medical Services market, which is rapidly evolving and fragmented. The company's success relies on consumer engagement with HSAs and demonstrating the value of its services [9]. Estimate Trend - HealthEquity has seen a positive estimate revision trend for fiscal 2025, with the Zacks Consensus Estimate for earnings per share increasing by 2.1% to $2.90. The consensus estimate for first-quarter revenues is $278.8 million, indicating a 14.1% rise from the previous year [10].

Core Viewpoint - HealthEquity has completed the acquisition of Conduent's BenefitWallet Health Savings Account (HSA) portfolio for approximately $425 million, which includes around 665,000 customer accounts and $2.7 billion in HSA assets [1][2]. Acquisition Details - The acquisition price for the BenefitWallet HSA portfolio is approximately $425 million [2]. - The transaction includes about 665,000 customer accounts and approximately $2.7 billion of HSA assets [2]. Benefits of Acquisition - HealthEquity is the largest HSA administrator in the U.S., with over 8.7 million HSA accounts and total assets worth approximately $25.2 billion as of January 31, 2024 [3]. - The acquisition is expected to significantly boost HealthEquity's service revenues and increase the number of customer accounts, enhancing its focus on the HSA business [5]. - HealthEquity's market share in the HSA category has increased from 4% to 20% over the past 12 years, and this acquisition is anticipated to further enhance its market position [5]. Financial Performance - HealthEquity reported better-than-expected fourth-quarter fiscal 2024 results, with solid growth in HSAs contributing to the top line [7]. - For fiscal 2025, revenues are projected to be between $1.14 billion and $1.16 billion, with adjusted EPS expected in the range of $2.79 to $2.96 [8].

DRAPER, Utah, May 07, 2024 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ:HQY) ("HealthEquity" or the "Company"), the nation's largest health savings account ("HSA") custodian, today announced plans to release its first quarter of fiscal 2025 financial results following the close of regular stock market trading hours on Monday, June 3, 2024. Following the news release, HealthEquity management plans to host a conference call for investors on Monday, June 3, 2024, at 4:30 p.m. Eastern Time during which manage ...

DRAPER, Utah, May 02, 2024 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ:HQY), the nation's largest Health Savings Account (HSA) custodian has received a Culture Excellence Award by Top Workplaces for the fourth consecutive year. "Our teammates deserve all the credit when it comes to this award," said Cheryl King, executive vice president and chief human resource officer. "They have embraced our values and strive to bring our mission to life each day. Together, we're making big things happen. We know if we ...

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HealthEquity, Inc. (HQY) has been gaining from its business model and strategy. The optimism led by a solid fourth-quarter fiscal 2024 performance and strength in Health Savings Accounts (HSA) are expected to contribute further. However, stiff competition and the possibility that integration of acquisitions may be unsuccessful are major downsides.Over the past year, the Zacks Rank #3 (Hold) stock has gained 43.7% compared with the 1.5% rise of the industry and the S&P 500’s 21.9% growth.The renowned provide ...