WageWorks is an on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits, or CDBs. The company administers and operates a broad array of CDBs, including spending account management programs, such as health and dependent care Flexible Spending Accounts, or FSAs, Health Savings Accounts, or HSAs, Health Reimbursement Arrangements, or HRAs, and commuter benefits, such as transit and parking programs.In May 2012, WageWorks went public with a valuation of $231.6 million.
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Expert Collections containing WageWorks
Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.
WageWorks is included in 1 Expert Collection, including Health Plans & Benefits Management.
Health Plans & Benefits Management
Companies developing or offering digital platforms and services, including online insurance marketplaces, data analytics for claims adjustment, benefits administration, and payments systems, that help make private health insurance more affordable, navigable, or transparent.
WageWorks has filed 1 patent.
Dietary supplements, Contactless smart cards, Nutrition, Employee benefits, Marketing
Dietary supplements, Contactless smart cards, Nutrition, Employee benefits, Marketing
Latest WageWorks News
Mar 22, 2022
Revenue of $756.6 million, an increase of 3% compared to $733.6 million in FY21. Net loss of $44.3 million, compared to net income of $8.8 million in FY21, with non-GAAP net income of $110.2 million, compared to $127.6 million in FY21. Net loss per diluted share of $0.53, compared to net income per diluted share of $0.12 in FY21, with non-GAAP net income per diluted share of $1.33, compared to $1.69 in FY21. Adjusted EBITDA of $236.0 million, a decrease of 2% compared to $240.8 million in FY21. 7.2 million HSAs, an increase of 25% compared to FY21. Total HSA Assets of $19.6 billion, an increase of 37% compared to FY21. 14.4 million Total Accounts, including both HSAs and complementary CDBs, an increase of 12% compared to FY21. The Company sold 5,750,000 shares of common stock, yielding net proceeds of $456.6 million. The Company closed its acquisitions of Luum, the Fifth Third Bank HSA portfolio, and Further. The Company issued $600 million aggregate principal amount of 4.50% Senior Notes due 2029 and refinanced its credit facility. Highlights of the fourth quarter include: Revenue of $203.3 million, an increase of 8% compared to $188.2 million in Q4 FY21. Net loss of $32.8 million, compared to net income of $5.4 million in Q4 FY21, with non-GAAP net income of $17.0 million, compared to $34.6 million in Q4 FY21. Net loss per diluted share of $0.39, compared to net income per diluted share of $0.07 in Q4 FY21, with non-GAAP net income per diluted share of $0.20, compared to $0.44 in Q4 FY21. Adjusted EBITDA of $50.4 million, a decrease of 11% compared to $56.6 million in Q4 FY21. The Company closed its acquisition of Further on November 1, 2021. The Company agreed to purchase the HealthSavings HSA portfolio, which closed on March 2, 2022. DRAPER, Utah, March 22, 2022 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), the nation's largest health savings account non-bank custodian, today announced financial results for its fourth quarter and fiscal year ended January 31, 2022. “The HealthEquity team closed out the fiscal 2022 year strong with $203 million in fourth quarter revenue, the highest revenue quarter in our history,” said Jon Kessler, President and CEO of HealthEquity. “With record HSA and asset growth in fiscal 2022, pandemic headwinds beginning to subside, and the emergence of potential tailwinds, we believe we are well-positioned for continued growth in fiscal 2023.” Fiscal year financial results Revenue for the fiscal year ended January 31, 2022 was $756.6 million, an increase of 3% compared to $733.6 million for the fiscal year ended January 31, 2021. Revenue this year included: service revenue of $426.9 million, custodial revenue of $202.8 million, and interchange revenue of $126.8 million. HealthEquity reported a net loss of $44.3 million, or $0.53 per diluted share, and non-GAAP net income of $110.2 million, or $1.33 per diluted share, for the fiscal year ended January 31, 2022. The Company reported net income of $8.8 million, or $0.12 per diluted share, and non-GAAP net income of $127.6 million, or $1.69 per diluted share, for the fiscal year ended January 31, 2021. Adjusted EBITDA was $236.0 million for the fiscal year ended January 31, 2022, a decrease of 2% compared to $240.8 million for the fiscal year ended January 31, 2021. Adjusted EBITDA was 31% of revenue, compared to 33% for the fiscal year ended January 31, 2021. As of January 31, 2022, HealthEquity had $225.4 million of cash and cash equivalents and $930.8 million of outstanding debt, net of issuance costs. This compares to $328.8 million in cash and cash equivalents and $986.7 million of outstanding debt as of January 31, 2021. Fourth quarter financial results Revenue for the fourth quarter ended January 31, 2022 was $203.3 million, an increase of 8% compared to $188.2 million for the fourth quarter ended January 31, 2021. Revenue this quarter included: service revenue of $112.5 million, custodial revenue of $58.1 million, and interchange revenue of $32.8 million. HealthEquity reported a net loss of $32.8 million, or $0.39 per diluted share, and non-GAAP net income of $17.0 million, or $0.20 per diluted share, for the fourth quarter ended January 31, 2022. The Company reported net income of $5.4 million, or $0.07 per diluted share, and non-GAAP net income of $34.6 million, or $0.44 per diluted share, for the fourth quarter ended January 31, 2021. Adjusted EBITDA was $50.4 million for the fourth quarter ended January 31, 2022, a decrease of 11% compared to $56.6 million for the fourth quarter ended January 31, 2021. Adjusted EBITDA was 25% of revenue, compared to 30% for the fourth quarter ended January 31, 2021. Account and asset metrics HSAs as of January 31, 2022 were approximately 7.2 million, an increase of 25% year over year, including 455,000 HSAs with investments, an increase of 37% year over year. Total Accounts as of January 31, 2022 were 14.4 million, including 7.2 million other consumer-directed benefits ("CDBs"). Total HSA Assets as of January 31, 2022 were $19.6 billion, an increase of 37% year over year. Total HSA Assets included $12.9 billion of HSA cash and $6.7 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 $0.9 billion as of January 31, 2022. HealthSavings HSA portfolio acquisition On December 4, 2021, we signed an agreement to acquire the Health Savings Administrators, L.L.C. (“HealthSavings”) HSA portfolio, which consisted of $1.3 billion of HSA Assets held in approximately 87,000 HSAs in exchange for a purchase price of $60 million. This acquisition closed on March 2, 2022. WageWorks integration HealthEquity completed its acquisition of WageWorks on August 30, 2019. As of January 31, 2022, the Company has substantially completed the integration of WageWorks and achieved approximately $80 million in annualized ongoing net synergies. Business outlook For the fiscal year ending January 31, 2023, management expects revenues of $820 million to $830 million. Its outlook for net loss is between $61 million and $53 million, resulting in net loss of $0.73 to $0.63 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $102 million and $110 million, resulting in non-GAAP net income per diluted share of $1.21 to $1.30 (based on an estimated 84 million weighted-average shares outstanding). Management expects Adjusted EBITDA of $245 million to $255 million. See “Non-GAAP financial information” below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release. Conference call HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Tuesday, March 22, 2022 to discuss the fiscal 2022 fourth quarter and year-end results. The conference call will be accessible by dialing 844-791-6252, or 661-378-9636 for international callers, and referencing conference ID 4530548. A live audio webcast of the call will also be available on the investor relations section of our website at http://ir.healthequity.com. Non-GAAP financial information To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share. Adjusted EBITDA is adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and other certain non-operating items. Non-GAAP net income is calculated by adding back to GAAP net income (loss) before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, and losses on extinguishment of debt, costs associated with unused office space, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate. Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is not excluded. We have changed the definitions of Adjusted EBITDA and non-GAAP net income to exclude costs associated with unused office space to reflect that a majority of our work force is now permanently working remotely. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below. About HealthEquity HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for our more than 14 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to connect health and wealth and value our culture of remarkable “Purple” service. For more information, visit www.healthequity.com. Forward-looking statements This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “aims,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following: the impact of the ongoing COVID-19 pandemic on the Company, its operations and its financial results; our ability to realize the anticipated financial and other benefits from combining the operations of WageWorks and Further with our business in an efficient and effective manner; our ability to integrate the Further business successfully; our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry; our dependence on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits; our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets; the significant competition we face and may face in the future, including from those with greater resources than us; our reliance on the availability and performance of our technology and communications systems; recent and potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business; the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations; our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business; our reliance on partners and third-party vendors for distribution and important services; our ability to develop and implement updated features for our technology and communications systems and successfully manage our growth; our ability to protect our brand and other intellectual property rights; and our reliance on our management team and key team members. For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our most recent Annual Report on Form 10-K and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Investor Relations Contact $1.21 - 1.30 (1) The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations. (2) Non-GAAP net income per diluted share may not calculate due to rounding of non-GAAP net income and diluted weighted-average shares. Certain terms
WageWorks Frequently Asked Questions (FAQ)
When was WageWorks founded?
WageWorks was founded in 2000.
Where is WageWorks's headquarters?
WageWorks's headquarters is located at 1100 Park Place, San Mateo.
What is WageWorks's latest funding round?
WageWorks's latest funding round is Acq - P2P.
How much did WageWorks raise?
WageWorks raised a total of $25.87M.
Who are the investors of WageWorks?
Investors of WageWorks include HealthEquity, ArrowPath Venture Partners, Camden Partners, VantagePoint Capital Partners, Advent International and 3 more.
Who are WageWorks's competitors?
Competitors of WageWorks include PayFlex and 6 more.
Compare WageWorks to Competitors
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Bright.MD is a healthcare automation company dedicated to modernizing direct-to-patient telehealth for healthcare systems with its AI-powered virtual-care platform. The firm was founded in 2014 and is based in Portland, Oregon.
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Fringe provides a benefits marketplace by providing a personalized dashboard. This dashboard helps companies offer employees non-traditional benefits such as subscriptions to popular services. It helps brands grow sales, enhance marketing, and acquire customers.The company was founded in 2018 and is based in Richmond, Virginia.
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