Healthequity Inc (NASDAQ:HQY) stock plunges 23.91% (As on Dec 7, 11:32:41 AM UTC-4, Source: Google Finance) after the company posted mixed results for the third quarter of FY 21. HealthEquity reported sales of 151,000 new HSAs in the third quarter ended October 31, 2021, compared to 104,000 in the third quarter ended October 31, 2020. HSAs as of October 31, 2021 were approximately 6.2 million, an increase of 14% year over year, including 431,000 HSAs with investments, an increase of 43% year over year. Total Accounts as of October 31, 2021 were 13.3 million, including 7.1 million other consumer-directed benefits.

Meanwhile, the company has entered into a definitive agreement with Health Savings Administrators, L.L.C. to transition the custody of HealthSavings’ HSA portfolio to HealthEquity. The definitive agreement provides a $60 million purchase price for nearly $1.3 billion of HSA assets held in approximately 87,000 HSAs. The transition of HealthSavings’ HSAs to the HealthEquity platform is expected to be completed in the first quarter of fiscal 2023. Willkie Farr & Gallagher LLP is serving as legal advisor to HealthEquity. Further, the company has completed its acquisition of WageWorks on August 30, 2019. As of October 31, 2021, the company had achieved approximately $75 million of the approximately $80 million in annualized ongoing net synergies the company expects to achieve by the end of fiscal year 2022.

HQY in the third quarter of FY 21 has reported the adjusted earnings per share of 35 cents, beating the analysts’ estimates for the adjusted earnings per share of 34 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of less than one percent to $180 million in the third quarter of FY 21, missing the analysts’ estimates for revenue of $185 million. The revenue this quarter included, service revenue of $102.7 million, custodial revenue of $49.0 million, and interchange revenue of $28.2 million. Adjusted EBITDA was $61.1 million for the third quarter ended October 31, 2021, the same as in the third quarter ended October 31, 2020. Adjusted EBITDA was 34% of revenue for each of the third quarters ended October 31, 2021 and 2020.

HealthEquity expects full-year earnings in the range of $1.30 to $1.35 per share, with revenue in the range of $750 million to $755 million. The company expects Adjusted EBITDA to be in the range of $230 million to $235 million.