Healthequity (HQY) Q3 FY2024 earnings: revenue $249 million, up 15.3% on the year

Healthequity, Inc. (HQY) reported revenue of $249 million for Q3 FY2024, the quarter ended 31 October 2023, up 15.3% on the same quarter a year earlier. Net income was $15 million, and diluted earnings per share $0.17. The figures are the company's own, from the 10-Q it filed with the SEC on 5 December 2023.

Revenue$249 millionup 15.3%

Net income$15 million

Diluted EPS$0.17

QuarterQ3 FY2024ended 31 October 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2024	Quarter before	A year earlier	Change on the year
Revenue	249	n/a	n/a	n/a
Cost of revenue	90.0	n/a	n/a	n/a
Gross profit	159	n/a	n/a	n/a
Gross margin	63.9%	n/a	n/a
Research and development	55.6	n/a	n/a	n/a
Operating income	30.9	n/a	n/a	n/a
Operating margin	12.4%	n/a	n/a
Interest expense	13.5	n/a	n/a	n/a
Pre-tax income	21.1	n/a	n/a	n/a
Income tax	6.4	n/a	n/a	n/a
Effective tax rate	30.4%	n/a	n/a
Net income	14.7	n/a	n/a	n/a
Net margin	5.9%	n/a	n/a
Diluted EPS	$0.17	n/a	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow and capital returned

Line	Q3 FY2024	Quarter before	A year earlier	Change on the year
Operating cash flow	57.1	n/a	n/a	n/a
Capital expenditure	0.5	n/a	n/a	n/a
Free cash flow	56.6	n/a	n/a	n/a
Free cash flow margin	22.7%	n/a	n/a
Cash from investing	-15.4	n/a	n/a	n/a
Cash from financing	2.0	n/a	n/a	n/a
Depreciation and amortisation	37.8	n/a	n/a	n/a
Share-based compensation	21.7	n/a	n/a	n/a
Diluted shares, weighted	87m	n/a	n/a	n/a
Shares outstanding at period end	86m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2024	Quarter before	A year earlier	Change on the year
Shareholders' equity	1,988	n/a	n/a	n/a
Debt	874	n/a	n/a	n/a
Operating lease liabilities	50.6	n/a	n/a	n/a
Other liabilities	181	n/a	n/a	n/a
Total liabilities and equity	3,094	n/a	n/a	n/a
Fixed assets	7.7	n/a	n/a	n/a
Goodwill	1,648	n/a	n/a	n/a
Intangible assets	861	n/a	n/a	n/a
Cash and equivalents	334	n/a	n/a	n/a
Receivables	96.2	n/a	n/a	n/a
Other assets	147	n/a	n/a	n/a
Total assets	3,094	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2024 †	Q4 FY2024	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027	Q2 FY2027
Revenue	249	262	288	300	300	312	331	326	322	335	355	351
Cost of revenue	90.0	99.1	100	95.9	103	123	107	93.2	94.1	106	98.3	92.8
Gross profit	159	163	187	204	197	189	224	233	228	228	256	258
Gross margin	64%	62%	65%	68%	66%	61%	68%	71%	71%	68%	72%	74%
R&D	55.6	55.2	56.1	58.6	60.2	64.7	61.4	64.8	65.9	70.4	67.8	73.9
Operating income	30.9	38.9	41.6	58.9	19.6	42.1	83.1	89.6	78.7	71.1	103	98.7
Operating margin	12%	15%	14%	20%	7%	14%	25%	28%	24%	21%	29%	28%
Interest expense	13.5	13.6	11.8	15.4	18.2	15.3	14.9	15.0	14.0	13.3	12.6	12.6
Pre-tax income	21.1	29.7	33.2	46.6	6.2	30.0	71.0	78.0	67.5	60.9	92.4	87.9
Tax rate	30%	11%	13%	23%	8%	12%	24%	23%	23%	18%	25%	25%
Net income	14.7	26.4	28.8	35.8	5.7	26.4	53.9	59.9	51.7	49.7	69.4	65.6
Net margin	6%	10%	10%	12%	2%	8%	16%	18%	16%	15%	20%	19%
Diluted EPS	$0.17	$0.30	$0.33	$0.40	$0.06	$0.30	$0.61	$0.68	$0.59	$0.58	$0.82	$0.78
Operating cash flow	57.1	77.1	65.4	108	90.5	75.7	64.7	136	139	118	97.5	136
Capital expenditure	0.5	0.6	0.7	0.7	0.3	0.3	0.1	0.8	0.8	0.3	0.4	1.0
Free cash flow	56.6	76.5	64.7	107	90.3	75.4	64.7	135	138	118	97.2	135
Buybacks	n/a	n/a	0.0	0.0	58.5	63.0	59.1	66.7	92.4	81.0	123	108
Shares outstanding	86m	86m	87m	87m	87m	87m	87m	86m	86m	85m	84m	83m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 October 2023, filed 5 December 2023, accession 0001428336-23-000037: the filing on EDGAR. All of Healthequity, Inc.'s filings: EDGAR company page.

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