HealthEquity Reports Year-End Sales Metrics
The total number of HSAs for which it serves as a non-bank custodian ("HSA Members") as of January 31, 2018 was 3.4 million, an increase of 24%, from 2.7 million as of January 31, 2017. Total custodial assets held by HSA Members as of January 31, 2018 was
HSA Members (unaudited)
% change from | % change from | ||||||||||||||
January 31, 2018 | January 31, 2017 | January 31, 2016 | 2017 to 2018 | 2016 to 2017 | |||||||||||
HSA Members | 3,402,889 | 2,746,132 | 2,140,631 | 24% | 28% | ||||||||||
Average HSA Members - Year-to-date | 2,951,790 | 2,339,091 | 1,600,327 | 26% | 46% | ||||||||||
Average HSA Members - Quarter-to-date | 3,188,927 | 2,519,382 | 1,850,843 | 27% | 36% | ||||||||||
HSA Members with investments | 121,614 | 65,906 | 44,680 | 85% | 48% | ||||||||||
Custodial assets (unaudited)
% change from | % change from | |||||||||||||||||
(in thousands, except percentages) | January 31, 2018 | January 31, 2017 | January 31, 2016 | 2017 to 2018 | 2016 to 2017 | |||||||||||||
Custodial cash | $ | 5,489,617 | $ | 4,380,487 | $ | 3,278,628 | 25% | 34% | ||||||||||
Custodial investments | 1,288,693 | 658,580 | 405,878 | 96% | 62% | |||||||||||||
Total custodial assets | $ | 6,778,310 | $ | 5,039,067 | $ | 3,684,506 | 35% | 37% | ||||||||||
Average daily custodial cash - Year-to-date | $ | 4,571,341 | $ | 3,661,058 | $ | 2,326,506 | 25% | 57% | ||||||||||
Average daily custodial cash - Quarter-to-date | $ | 4,876,438 | $ | 3,854,518 | $ | 2,682,827 | 27% | 44% |
Business outlook
For the year ended January 31, 2018, the Company reaffirmed previously provided outlook as follows:
- Revenue in the range of
$225.0 million and$228.0 million ; - Net income in the range of
$43.0 million and$45.0 million ; - Adjusted EBITDA in the range of
$80.0 million and$83.0 million ; - Non-GAAP net income in the range of
$39.0 million and$41.0 million ; and - Non-GAAP net income per diluted share range between
$0.64 and $0.66 .
Non-GAAP net income is calculated by adding back to net income all non-cash stock-based compensation expense, net of an estimated statutory tax rate of 38%, and the impact of excess tax benefits due to the adoption of Accounting Standards Update ("ASU") 2016-09. Non-GAAP net income outlook results is based on an estimated 62.0 million diluted weighted-average shares outstanding.
The Company also provided fiscal year 2019 revenue guidance in the range of
A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial table at the end of this release.
Conference call
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 the Company’s industry, business strategy, plans, goals and expectations concerning our market position, product expansion, future operations, revenue, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “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. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the control of the Company. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, the continued availability of tax-advantaged consumer-directed benefits to employers and employees, the Company’s ability to acquire and retain new network partners and to cross-sell its products to existing network partners and members, the Company’s ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets, the Company’s ability to raise awareness among employers and employees about the advantages of adopting and participating in consumer-directed benefits programs, and the Company’s ability to identify and execute on network partner opportunities. For a detailed discussion of these and other risk factors, please refer to the risks detailed in the Company’s filings with the
Reconciliation of net income outlook to adjusted EBITDA outlook
Outlook for the year ending | |
(in millions) | January 31, 2018 |
Net income | $43 - $45 |
Income tax provision | 5 - 6 |
Depreciation and amortization | ~ 11 |
Amortization of acquired intangible assets | ~ 4 |
Stock-based compensation expense | ~ 14 |
Other | ~ 3 |
Adjusted EBITDA | $80 - $83 |
Reconciliation of net income outlook to non-GAAP net income
Outlook for the year ending | ||
(in millions, except per share data) | January 31, 2018 | |
Net income | $43 - $45 | |
Stock compensation, net of tax (1) | ~ 9 | |
Excess tax benefit due to adoption of ASU 2016-09 | ~ (13) | |
Non-GAAP net income | $39 - $41 | |
Diluted weighted-average shares used in computing GAAP and Non-GAAP per share amounts | 62 | |
Non-GAAP net income per diluted share (2) | $0.64 - $0.66 |
(1) The Company used an estimated statutory tax rate of 38% to calculate the net impact stock-based compensation expense.
(2) Non-GAAP net income per diluted share does not calculate due to rounding.
Investor Relations Contact:
801-727-1209
rputnam@healthequity.com
Source: HealthEquity, Inc.