HQY stock exploded higher in after-hours trading on December 3, 2019.

HQY explodes +14 percent in after-hours trading (brown shaded area) on December 3, 2019.

The reason for the after-hours surge was the company’s block buster quarterly report. Reports Q3 revenue $157.12M, consensus $152.38M.

HealthEquity, Inc. (NASDAQ: HQY) the nation’s largest health savings account (“HSA”) non-bank custodian, today announced financial results for its third quarter ended October 31, 2019.

“The new HealthEquity outperformed in a market that keeps growing, and got a fast start on the integration of WageWorks to continue that growth,” said President and CEO Jon Kessler. “For the full year, these results set the team up to deliver strong sales while keeping its commitments to customers, partners and shareholders.”

Revenue for the third quarter ended October 31, 2019 of $157.1 million grew 123% compared to $70.5 million for the third quarter ended October 31, 2018, and 21% excluding the impact of the WageWorks acquisition and related realized net synergies. Revenue this quarter included: service revenue of $87.6 million, custodial revenue of $47.0 million, and interchange revenue of $22.5 million.

HealthEquity reported a net loss of $21.3 million, or $0.30 per diluted share, and non-GAAP net income of $32.8 million, or $0.47 per diluted share, for the third quarter ended October 31, 2019. One year ago, the Company reported third quarter ended October 31, 2018 net income of $15.7 million, or $0.25 per diluted share, and non-GAAP net income of $20.0 million, or $0.31 per diluted share. The net loss for the quarter is primarily due to merger integration expenses and acquisition costs combined, net of tax, of $38.5 million.

Adjusted EBITDA of $55.5 million for the third quarter ended October 31, 2019 grew 87% compared to $29.7 million for the third quarter ended October 31, 2018, and 24% excluding the impact of the WageWorks acquisition and related net realized synergies. Adjusted EBITDA was 35% of revenue compared to 42% for the third quarter ended October 31, 2018.

HealthEquity sees FY20 EPS $1.46-$1.52, consensus $1.28. Sees FY20 revenue $520M-$526M, consensus $517.31M.

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