HealthEquity reports strong second-quarter results, including revenue of $299.9 million and increased net income.
From Globe Newswire.: 2024-09-03 16:01:00
HealthEquity, Inc. (NASDAQ: HQY) reported strong second-quarter results, with revenue totaling $299.9 million, a 23% increase from the previous year. The company’s net income rose to $35.8 million compared to $10.6 million in the same period last year. Total HSAs increased by 15% to 9.4 million, with HSA assets reaching $29.5 billion.
CEO Jon Kessler attributed the growth to strong sales and the transition of BenefitWallet HSAs to the HealthEquity platform. Total accounts, including HSAs and complementary CDBs, rose by 9% to 16.3 million. With these positive results, the company has raised its guidance, launched Health Payment Accounts, and authorized a $300 million share buyback.
HealthEquity’s revenue for the second quarter of 2024 reached $299.9 million, driven by service revenue of $116.7 million, custodial revenue of $138.7 million, and interchange revenue of $44.5 million. Adjusted EBITDA was $128.3 million, a 46% increase from the previous year. The company’s total HSA assets stood at $29.5 billion as of July 31, 2024, a 27% year-over-year increase.
To strengthen its financial position, HealthEquity secured a new $1.0 billion senior secured revolving credit facility in August 2024. The company borrowed $511.9 million to refinance existing obligations. Looking ahead, management expects revenue for the fiscal year ending January 31, 2025, to range between $1.165 billion and $1.185 billion, with adjusted EBITDA projected at $458 million to $478 million.
HealthEquity will host a conference call on September 3, 2024, to discuss its second-quarter financial results. Investors can access the call by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, using conference ID “HealthEquity.” A live webcast will be available on the investor relations section of the company’s website.
Read more at Globe Newswire.:: HealthEquity Reports Second Quarter Ended July 31, 2024