HealthEquity, Inc. (NASDAQ:HQY) Q3 2020 Earnings Conference Call - Final Transcript
Dec 03, 2019 • 04:30 pm ET
Welcome to HealthEquity's Third Quarter of Fiscal 2020 Earnings Call. [Operator Instructions]
Go ahead, Mr. Putnam.
Thank you, Joel. Good afternoon, everyone. Welcome to HealthEquity's third quarter earnings conference call for our fiscal 2020 year. With me today, we have Jon Kessler, President and CEO; Steve Neeleman, HealthEquity's Founder and Vice-Chair; Ted Bloomberg, who is our Executive VP and COO; Darcy Mott, our Executive Vice President and CFO.
Before I turn the call over to Jon, I would like to remind those listening here today that there is a copy of today's earnings release and accompanying financial information posted on our Investor Relations website, which is ir.healthequity.com. We also claim Safe Harbor concerning the forward-looking statements included in today's earnings release and that will be made during this conference call, including predictions, expectations, estimates, or other information that might be considered forward-looking.
Throughout today's discussion, we will present some important factors relating to our business, which could affect those forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from statements made today. As a result, we caution you against placing undue reliance on these forward-looking statements. We encourage you to review the discussion of these factors and other risks that may affect our future results or the market price of our stock and that are detailed on -- which are detailed in our Annual Report on Form 10-K, which is filed with the SEC in March of 2019 along with any subsequent periodic or current reports filed with the SEC. We are not obligating ourselves to revise or update these forward-looking statements in light of new information or future events.
With that out of the way, we'll now turn the call over to Mr. Jon Kessler.
Thank you, Richard. It just gets better every time and thanks all of you for joining us. This is the first quarter in which our operating results will reflect the acquisition of WageWorks completed on August 30th, and I'm pleased to say, it was a good one. Today's results and improved full year outlook speak first, to help Equity's continued leadership of the growing HSA market; second, to our fast start on integrating WageWorks; and third to the multiple opportunities we have for the growth of profits. I'll start with comments on key metrics and performance in the market; Ted will update on WageWorks integration; and then Darcy will offer thoughts on the financial results and revised guidance as well as our path to profitability; and Steve will join us for Q&A.
Here we go. Growth across key metrics were strong as one would expect post acquisition, during Q3, revenue and adjusted EBITDA grew 123% and 87% respectively, year-over-year. HSA members reached $5.0 million and HSA assets $10.5 billion will be at quarter's end, up 37% and 48% respectively year-over-year. Total accounts which include HSA accounts and consumer directed benefit were CDB accounts reached $12.5 million. Legacy HealthEquity and WageWorks both performed well. HealthEquity,