Healthequity Inc (NASDAQ:HQY) stock rose 0.022% (As on December 6, 11:28:56 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 23. Revenue this quarter included: service revenue of $107.5 million, custodial revenue of $106.6 million, and interchange revenue of $35.1 million. HealthEquity reported non-GAAP net income of $52.2 million for the third quarter ended October 31, 2023 compared to the non-GAAP net income of $32.4 million, for the third quarter ended October 31, 2022. HSAs as of October 31, 2023 were 8.3 million, an increase of 8% year over year, including 592,000 HSAs with investments, an increase of 12% year over year. Total Accounts as of October 31, 2023 were 15.3 million, including 7.0 million other consumer-directed benefits (“CDBs”). Total HSA Assets as of October 31, 2023 were $22.6 billion, an increase of 12% year over year. Total HSA Assets included $14.0 billion of HSA cash and $8.6 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.8 billion as of October 31, 2023.

HQY in the third quarter of FY 23 has reported the adjusted earnings per share of 60 cents, beating the analysts’ estimates for the adjusted earnings per share of 50 cents. The company had reported the adjusted revenue growth of 15 percent to $249.2 million in the third quarter of FY 23, beating the analysts’ estimates for revenue of $243.75 million. Adjusted EBITDA was $95.6 million for the third quarter ended October 31, 2023, an increase of 30% compared to the third quarter ended October 31, 2022. Adjusted EBITDA was 38% of revenue, compared to 34% for the third quarter ended October 31, 2022.

For the fiscal year ending January 31, 2024, management expects revenue of $985 million to $995 million.  Its outlook for non-GAAP net income, is expected to be between $181 million and $188 million, resulting in non-GAAP net income per diluted share of $2.08 to $2.16 (based on an estimated 87 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $350 million to $360 million. For the fiscal year ending January 31, 2025, management expects revenue of approximately $1.140 billion to $1.160 billion and Adjusted EBITDA of approximately 38-39% of revenue. These amounts assume an average annualized yield on HSA cash of approximately 3.00%.