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HealthEquity Inc. (HQY+1.70%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $300,432,000 from $249,219,000 in the same quarter the previous year. This increase is attributed to higher custodial and interchange revenues.
Service revenue for the quarter was $119,174,000, up from $114,082,000 in the previous year, driven by an increase in the number of HSAs and HSA investments.
Custodial revenue rose to $140,953,000 from $100,005,000, primarily due to a higher average annualized yield on HSA cash and an increase in the average daily balance of HSA cash.
Interchange revenue increased to $40,305,000 from $35,132,000, reflecting higher spending per account using payment cards.
Total cost of revenue for the quarter was $103,406,000, up from $90,037,000, due to increased service costs and custodial costs.
Operating expenses increased to $177,401,000 from $128,291,000, driven by higher sales and marketing, technology and development, and general and administrative expenses.
Net income for the quarter was $5,703,000, down from $14,673,000 in the previous year, impacted by a $30,000,000 settlement related to a lease termination.
Cash provided by operating activities was $264,108,000, while cash used in investing and financing activities was $491,897,000 and $145,973,000, respectively.
HealthEquity had a working capital of $495,246,000 as of October 31, 2024. The company continues to focus on expanding its HSA and CDB offerings and integrating acquired businesses.
The filing also details the acquisition of the BenefitWallet HSA portfolio and the assumption of a contract with a depository partner.
The company anticipates continued growth in revenue driven by increases in Total Accounts and HSA Assets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the HealthEquity Inc. quarterly 10-Q report dated December 9, 2024. To report an error, please email earnings@qz.com.