HealthEquity (NASDAQ:HQY) was on a roll. Shares of the largest health savings account (HSA) custodian in the U.S. soared 33% in just the last three months of 2019. Then came the coronavirus-fueled stock market crash. HealthEquity stock gave up all of its Q4 gains and then some. 

The company announced its fiscal 2019 fourth-quarter and full-year results after the market closed on Monday. Here are the highlights from HealthEquity's Q4 update -- and why they really don't matter much, at least for now.

White piggy bank with HSA written on it in black

Image source: Getty Images.

By the numbers

HealthEquity reported that its revenue jumped 166% year over year to $201.2 million in the fourth quarter. This result topped the average analysts' estimate of Q4 revenue of $199.26 million.

The company reported a net loss in the fourth quarter of $200,000, or less than half of $0.01 per share, based on generally accepted accounting principles (GAAP). This reflected significant deterioration from the GAAP net income of $13.1 million, or $0.21 per share, in the prior-year period.

On a non-GAAP (adjusted) basis, HealthEquity's net income in the fourth quarter was $27.9 million, or $0.39 per share. This represented a nice jump from the prior-year period's adjusted net income of $18.9 million, or $0.30 per share. It also beat the consensus Wall Street estimate of earnings of $0.35 per share in the quarter.

Behind the numbers

HealthEquity announced that as of Jan. 31, 2020, it had over 5.3 million HSAs, up 34% year over year. Some of this gain came from acquired HSAs, but the company still delivered organic growth of 15%. 

The company said that active HSAs totaled 4.3 million at the end of fiscal 2019, also up 34% year over year. This count included 220,000 HSAs with investments, a 35% year-over-year increase. HealthEquity stated that it had 12.8 million total accounts as of the the fiscal year ending Jan. 31, 2020, of which 7.4 million were consumer-directed benefit (CDB) accounts. The WageWorks acquisition accounted for 6.8 million of those CDBs.

HealthEquity also reported strong 43% year-over-year growth in total HSA assets, with $11.5 billion as of Jan. 31, 2020. Again, while acquisitions boosted this number, the company still recorded 22% organic growth. The company said that its total HSA assets reflected $8.8 billion of HSA cash plus $2.8 billion in HSA investment assets.

During its fiscal 2019, HealthEquity added 724,000 new HSAs, up 7% from the previous year. Its HSA members also boosted their balances by around $1.7 billion, reflecting a 35% year-over-year jump.

Why the results don't matter (for now)

HealthEquity's revenue and earnings beats didn't matter for a couple of reasons. Most importantly, the near-term future of the U.S. economy remains in doubt, with the coronavirus pandemic likely to cause a recession. 

The company also provided disappointing revenue guidance for full-year fiscal 2021. HealthEquity expects revenue will be between $770 million and $790 million. The consensus analysts' estimate projects revenue of $821.5 million. HealthEquity anticipates non-GAAP earnings per share between $1.70 and $1.81. The midpoint of this range is below the average analysts' expected adjusted earnings of $1.80 per share.

Healthcare stocks, including HealthEquity, will likely remain highly volatile until we know just how serious COVID-19's impact in the U.S. will be. Over the long term, though, the prospects for the company still appear to be good.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.