Healthequity Inc (NASDAQ:HQY) stock rose 2.06% (As on December 7, 11:33:56 AM UTC-4, Source: Google Finance) after the company reported third quarter earnings that beat analysts’ forecasts and revenue that topped expectations. Adjusted EBITDA was $73.4 million for the third quarter ended October 31, 2022, an increase of 20% compared to the third quarter ended October 31, 2021. Adjusted EBITDA was 34% of revenue for each of the third quarters ended October 31, 2022 and 2021. HealthEquity reported sales of 170,000 new HSAs in the third quarter ended October 31, 2022, compared to 151,000 in the third quarter ended October 31, 2021. HSAs as of October 31, 2022 were 7.7 million, an increase of 23% year over year, including 529,000 HSAs with investments, an increase of 23% year over year. Total Accounts as of October 31, 2022 were 14.5 million, including 6.8 million other consumer-directed benefits (“CDBs”). Total HSA Assets as of October 31, 2022 were $20.2 billion, an increase of 23% year over year. Total HSA Assets included $13.1 billion of HSA cash and $7.1 billion of HSA investments. Client-held funds, which are deposits held on behalf of the Clients to facilitate administration of the CDBs, and from which the company generate custodial revenue, were $0.8 billion as of October 31, 2022. HealthEquity reported a non-GAAP net income of $32.4 million for the third quarter ended October 31, 2022.

HQY in the third quarter of FY 22 has reported the adjusted earnings per share of 38 cents, beating the analysts’ estimates for the adjusted earnings per share of 34 cents. The company had reported the adjusted revenue growth of 20 percent to $216 million in the third quarter of FY 22, beating the analysts’ estimates for revenue of $206.75 million. Revenue this quarter included: service revenue of $108.6 million, custodial revenue of $74.6 million, and interchange revenue of $32.9 million.

For the fiscal year ending January 31, 2023, management expects revenue of $850 million to $860 million. Its outlook for non-GAAP net income, calculated using the method described below, is between $106 million and $114 million, resulting in non-GAAP net income per diluted share of $1.26 to $1.35. Management expects Adjusted EBITDA of $261 million to $271 million. For the fiscal year ending January 31, 2024, management expects revenue of approximately $950 million to $970 million and Adjusted EBITDA of approximately 33-34% of revenue.