HEALTHEQUITY INC (HQY) has reported 73.78 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $14.03 million, or $0.23 a share in the quarter, compared with $8.07 million, or $0.14 a share for the same period last year. On an adjusted basis, the company has earned $12 million, or $0.19 a share for the quarter.
Revenue during the quarter grew 25.92 percent to $55.42 million from $44.01 million in the previous year period. Gross margin for the quarter contracted 201 basis points over the previous year period to 60.88 percent. Total expenses were 71.26 percent of quarterly revenues, up from 69.90 percent for the same period last year. That has resulted in a contraction of 137 basis points in operating margin to 28.74 percent.
Operating income for the quarter was $15.93 million, compared with $13.25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $22.42 million compared with $18.02 million in the prior year period. At the same time, adjusted EBITDA margin contracted 49 basis points in the quarter to 40.45 percent from 40.94 percent in the last year period.
Jon Kessler, president and chief executive officer of HealthEquity said, "During the first quarter our team began the fiscal year the way that we ended last year, outpacing the market’s 20% growth rate as we grew HSAs by 26% year-over-year, adding nearly 77,000 new HSAs and $189 million in custodial assets in the first quarter. Even more importantly, custodial investments grew by 58% year-over-year, as we continue to succeed in enabling our HSA members to build health savings."
For fiscal year 2018, HEALTHEQUITY INC expects revenue to be in the range of $222 million to $227 million. It forecasts net income to be in the range of $33 million to $37 million. The company projects adjusted net income to be in the range of $38 million to $42 million, the company projects diluted earnings per share to be in the range of $0.62 to $0.67 on adjusted basis.
Operating cash flow improves significantlyHEALTHEQUITY INC has generated cash of $15.58 million from operating activities during the quarter, up 637.50 percent or $13.46 million, when compared with the last year period. The company has spent $4.27 million cash to meet investing activities during the quarter as against cash outgo of $2.41 million in the last year period.
Cash flow from financing activities was $3.83 million for the quarter, down 59.37 percent or $5.59 million, when compared with the last year period.
Cash and cash equivalents stood at stood at $155.08 million as at Apr. 30, 2017.
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