Post Earnings Coverage as HealthEquity’s Quarterly Revenue Surged 30%

Upcoming AWS Coverage on Cotiviti Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 31, 2017 / Active Wall St. announces its post-earnings coverage on HealthEquity, Inc. (NASDAQ: HQY). The Company released its fourth quarter and fiscal 2017 results on March 21, 2017. The provider of services for managing health care exceeded top- and bottom-line expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of HealthEquity’s competitors within the Healthcare Information Services space, Cotiviti Holdings Inc. (NYSE: COTV), reported on February 22, 2017, its financial results for the three months and year ended December 31, 2016. AWS will be initiating a research report on Cotiviti in the coming days.

Today, AWS is promoting its earnings coverage on HQY; touching on COTV. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the fourth quarter ended January 31, 2017, HealthEquity reported revenue of $46.8 million, an increase of 30% compared to $35.9 million for the fourth quarter ended January 31, 2016. The Company’s revenue surpassed analysts’ consensus of $45.0 million.

HealthEquity’s revenue comprised of Service revenue of $20.6 million, an increase of 21% on a y-o-y basis, custodial revenue of $16.0 million, an increase of 44% compared to Q4 FY16 and interchange revenue of $10.1 million, an increase of 33% compared to Q4 FY16. For FY17, HealthEquity reported revenue of $178.4 million, up 41% compared to $126.8 million for FY16.

HealthEquity’s non-GAAP adjusted EBITDA was $11.8 million for Q4 FY17, an increase of 33% compared to $8.9 million for Q4 FY16. The Company’s non-GAAP adjusted EBITDA surged 55% to $62.8 million for FY17 compared to $40.6 million for FY16. HealthEquity’s adjusted EBITDA was 35% of revenue for FY17 compared to 32% for FY16.

For Q4 FY17, HealthEquity’s net income was $4.1 million, or $0.07 per diluted share, compared to $3.1 million, or $0.05 per diluted share, for Q4 FY16. The Company’s revenue number surpassed market estimates of $0.05 per share. For FY17, HealthEquity’s net income was $26.4 million, or $0.44 per share, compared to $16.6 million, or $0.28 per share.

HSA Member and Custodial asset metrics

As of January 31, 2017, the total number of HSAs for which HealthEquity serve as a non-bank custodian were 2.7 million, an increase of 28% from 2.1 million as of January 31, 2016. Total Custodial Assets as of January 31, 2017, was $5.0 billion, an increase of 37% year-over-year, consisting of Custodial Cash Assets of $4.4 billion, an increase of 34% compared to Q4 FY16 and Custodial Investment Assets of $658.6 million, an increase of 62% compared to Q4 FY16.

Outlook

For the year ended January 31, 2018, HealthEquity is forecasting revenue in the range of $220.0 million and $225.0 million. The Company expects net income to be in the band of $30.0 million to $34.0 million, resulting in a net income per diluted share range of $0.50 to $0.55. HealthEquity’s adjusted EBITDA outlook is a range of $77.0 million to $82.0 million. The business outlook for the year ended January 31, 2018, assumes a projected effective income tax rate of approximately 37%.

As of January 31, 2017, we had $180.4 million of cash, cash equivalents, and marketable securities and no outstanding debt. This compared to $123.8 million in cash, cash equivalents, and marketable securities and no outstanding debt as of January 31, 2016.

Stock Performance

On Thursday, March 30, 2017, HealthEquity’s share price finished yesterday’s trading session at $40.84, climbing 2.02%. A total volume of 384.04 thousand shares exchanged hands. The stock has soared 8.07% and 65.55% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 0.79%. The Company’s shares are trading at a P/E of 92.61. At Thursday’s closing price, the stock’s net capitalization stands at $2.55 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 458645