DRAPER, Utah – HealthEquity Inc. (NASDAQ: HQY), the nation’s largest custodian of health savings accounts (HSA), reported a robust first quarter with earnings and revenues that exceeded analyst expectations, sending the stock up 4% in response. The company’s adjusted earnings per share of $0.80 surpassed the consensus estimate of $0.66, while revenue for the quarter rose 18% to $287.6 million, surpassing the consensus estimate of $277.66 million.
The company’s financial success in the first quarter ended April 30, 2024 was attributed to record HSA sales, improved rate acceptance and the timely transition of two of the three BenefitWallet tranches. President and CEO Jon Kessler highlighted the team’s strong start to fiscal 2025, noting the momentum in growth and margins and the company’s decision to raise full-year expectations while building on its platform to continue investing.
Compared to the same quarter last year, the company’s revenue showed a significant increase of $244.4 million, reflecting an increase of 18%. Net income also saw a substantial jump to $28.8 million, compared to $4.1 million in the first quarter of the previous fiscal year. Adjusted EBITDA grew 36% to $117.4 million, representing 41% of revenue, compared to 35% in the prior year quarter.
For the fiscal year ending January 31, 2025, HealthEquity expects revenue between $1.16 billion and $1.18 billion, with adjusted earnings per share expected to range from $2.93 to $3.10. This expectation exceeds the analyst consensus of $2.90 for adjusted earnings per share and is slightly above the revenue consensus of $1.155 billion.
The company’s optimistic outlook is a reflection of its strategic acquisitions and operational efficiencies. The acquisition of the BenefitWallet HSA portfolio, completed on May 9, 2024, for $425.0 million, has been a significant contributor to the company’s growth, adding approximately 616,000 HSAs and $2.7 billion in HSA assets.
HealthEquity’s leadership remains optimistic about the company’s trajectory. CEO Jon Kessler expressed confidence in the company’s direction, saying: “With momentum on both growth and margins, we are raising full-year expectations and continuing our platform investments to deliver remarkable experiences, deepen partnerships and improve member outcomes.”
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