HealthEquity, Inc. Reports Double-Digit Year-Over-Year Revenue Growth at 16%

HealthEquity, Inc., a leading provider of health savings accounts (HSAs), recently announced impressive financial results for the fiscal year 2024. During its Q4 2024 Earnings Call, the company reported an outstanding 16% year-over-year revenue growth, reaching the significant milestone of $1 billion in revenue. HealthEquity also experienced remarkable growth in other key areas, such as adjusted EBITDA, which grew at a rate of 36%. Additionally, they opened nearly one million new HSAs and now boast 8.7 million HSA members. With a three-year strategy in place to maintain strong top-line growth and competitive outperformance, HealthEquity aims to double its non-GAAP net income per share from fiscal 2024 levels. Furthermore, the company has provided guidance for fiscal 2025, forecasting expected revenue between $1.14 billion and $1.16 billion, GAAP net income between $73 million and $88 million, and non-GAAP net income between $247 million and $262 million. They also anticipate adjusted EBITDA to be between $438 million and $458 million for fiscal 2025. These impressive figures demonstrate HealthEquity’s commitment to growth and success in the HSA industry.

Q4 2024 Earnings Call

HealthEquity, Inc. (HQY) held its Q4 2024 Earnings Call on March 19, 2024. During the call, the company shared several significant achievements and provided insights into its future growth strategy and financial guidance for fiscal 2025.

Double-Digit Year-Over-Year Revenue Growth

One of the highlights of the earnings call was HealthEquity’s impressive double-digit year-over-year growth in revenue. The company reported a revenue growth rate of 16%, a substantial increase that showcases its ability to generate consistent and robust financial performance. This growth allowed HealthEquity to reach a significant milestone, surpassing the $1 billion mark in revenue. This achievement demonstrates the company’s strong market position and highlights its ability to deliver value to its clients and stakeholders.

Adjusted EBITDA Growth

HealthEquity also reported substantial growth in its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Adjusted EBITDA is a crucial financial metric that provides insight into the operational efficiency and profitability of a company. In the case of HealthEquity, its adjusted EBITDA grew at an impressive rate of 36%, reflecting the company’s effective cost management and its ability to generate sustainable earnings.

New HSAs and HSA Members

Another key area of growth for HealthEquity is its Health Savings Accounts (HSAs) and the number of HSA members. In Q4 2024, HealthEquity opened 949,000 new HSAs, further expanding its client base. This growth in HSAs is a testament to the increasing popularity of these accounts as a way for individuals to save for healthcare expenses and take control of their healthcare financial planning. Additionally, HealthEquity ended the fiscal year with an impressive 8.7 million HSA members, signifying the company’s leadership in the HSA market.

Investing Members and Invested Assets

HealthEquity’s success in attracting new members is not limited to HSAs alone; the company also experienced growth in its investing members and invested assets. Investing members, those who use their HSAs to invest in the financial markets, grew at a rate of 13%, showcasing the increasing interest and adoption of this feature among HealthEquity’s members. Additionally, HealthEquity’s invested assets grew at a rate of 28%, reflecting the growing trust and confidence of its members in utilizing their HSAs as an investment tool. These figures highlight the value and trust that HealthEquity has built in its member base, positioning the company for continued growth and expansion.

Total HSA Assets

An essential measure of HealthEquity’s success and impact is the total HSA assets the company manages. In Q4 2024, HealthEquity saw its total HSA assets reach an impressive $25.2 billion. This substantial amount underscores the trust that both individuals and employers place in HealthEquity’s ability to manage and grow their HSA funds effectively. It also highlights the dedication and expertise of HealthEquity’s financial management team in delivering excellent results for its clients and shareholders.

3-Year Growth Strategy

During the earnings call, HealthEquity outlined its 3-year growth strategy to continue its strong top-line growth and maintain a competitive edge in the marketplace. Key to this strategy is the company’s goal to double its non-GAAP net income per share from fiscal 2024 levels. This ambitious target showcases HealthEquity’s commitment to delivering not only revenue growth but also sustainable profitability. By focusing on enhancing operational efficiency and driving innovation, HealthEquity aims to create long-term value for its shareholders while expanding its market leadership.

Guidance for Fiscal 2025

Looking ahead to fiscal 2025, HealthEquity provided guidance on its expected financial performance. The company anticipates revenue between $1.14 billion and $1.16 billion for the fiscal year, reflecting its confidence in continued growth and market demand for its services. In terms of net income, HealthEquity expects GAAP net income to range between $73 million and $88 million, while non-GAAP net income is projected to be between $247 million and $262 million. These figures demonstrate HealthEquity’s commitment to driving profitability and creating value for its shareholders while maintaining its financial transparency.

Furthermore, HealthEquity expects its adjusted EBITDA to fall between $438 million and $458 million for fiscal 2025. This guidance illustrates the company’s emphasis on sustainable profitability and its ability to effectively manage costs while driving revenue growth.

In conclusion, HealthEquity’s Q4 2024 Earnings Call showcased the company’s remarkable financial performance and provided insights into its future strategic direction. With double-digit revenue growth, substantial increases in adjusted EBITDA, and a significant expansion of HSAs and HSA members, HealthEquity continues to solidify its position as a leader in the healthcare financial services industry. By outlining a comprehensive 3-year growth strategy and offering financial guidance for fiscal 2025, HealthEquity reaffirms its commitment to delivering long-term value for its shareholders while maintaining its focus on exceptional service and operational excellence.