Healthequity Inc (NASDAQ:HQY) stock rose 1.99% (As on September 7, 11:36:48 AM UTC-4, Source: Google Finance) after the company posted better than expected topline results for the second quarter of FY 23. HealthEquity reported sales of 196,000 new HSAs in the second quarter ended July 31, 2022, compared to 180,000 in the second quarter ended July 31, 2021. HSAs as of July 31, 2022 were 7.5 million, an increase of 26% year over year, including 516,000 HSAs with investments, an increase of 28% year over year. Total Accounts as of July 31, 2022 were 14.5 million, including 7.0 million other consumer-directed benefits (“CDBs”). Total HSA Assets as of July 31, 2022 were $20.5 billion, an increase of 33% year over year. Total HSA Assets included $13.1 billion of HSA cash and $7.4 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 generates custodial revenue, were $0.8 billion as of July 31, 2022. Adjusted EBITDA was $67.0 million for the second quarter ended July 31, 2022, an increase of 2% compared to the second quarter ended July 31, 2021. Adjusted EBITDA was 33% of revenue, compared to 35% for the fiscal quarter ended July 31, 2021. HealthEquity has reported a net loss of $10.7 million and non-GAAP net income of $28.1 million, for the second quarter ended July 31, 2022. The Company reported a net loss of $3.8 million, and non-GAAP net income of $33.4 million for the second quarter ended July 31, 2021.

HQY in the second quarter of FY 23 has reported the adjusted earnings per share of 33 cents, which is in line with the analysts’ estimates for the adjusted earnings per share of 33 cents. The company had reported the adjusted revenue growth of 9 percent to $206.1 million in the second quarter of FY 23, beating the analysts’ estimates for revenue of $203.82 million. Revenue this quarter included: service revenue of $103.0 million, custodial revenue of $65.6 million, and interchange revenue of $37.5 million.

For the fiscal year ending January 31, 2023, management expects revenues to be in the range of $834 million to $844 million. The company’s outlook for net loss is between $43 million and $36 million, resulting in net loss of $0.51 to $0.43 per diluted share. The company expects Adjusted EBITDA to be in the range of $252 million to $262 million