There were 230 press releases posted in the last 24 hours and 170,315 in the last 365 days.

HealthEquity Reports Strong Third Quarter Results, Raises Business Outlook

/EIN News/ -- Highlights of the third quarter include:

  • Revenue of $157.1 million, an increase of 123% compared to Q3 FY19.
  • Net loss of $21.3 million, compared to net income of $15.7 million in Q3 FY19, with non-GAAP net income of $32.8 million, an increase of 65% compared to Q3 FY19.
  • Net loss per diluted share of $0.30, compared to net income per share of $0.25 in Q3 FY19, with non-GAAP net income per diluted share of $0.47, an increase of 52% compared to Q3 FY19.
  • Adjusted EBITDA of $55.5 million, an increase of 87% compared to Q3 FY19.
  • 5.0 million HSAs, an increase of 37% compared to Q3 FY19.
  • $10.5 billion Total HSA Assets, an increase of 48% compared to Q3 FY19.
  • 12.5 million Total Accounts, including both HSAs and complementary consumer-directed benefit ("CDB") accounts.
  • The WageWorks acquisition closed on August 30, 2019.

DRAPER, Utah, Dec. 03, 2019 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), 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.”

Third quarter financial results

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.

As of October 31, 2019, HealthEquity had $174.6 million of cash and cash equivalents and $1.2 billion of outstanding debt, net of issuance costs. This compares to $361.5 million in cash and cash equivalents and no outstanding debt as of January 31, 2019.

Account and Asset metrics

HSAs as of October 31, 2019 exceeded 5.0 million, an increase of 37% year over year, or 16% excluding acquired HSAs. Active HSAs were 4.1 million, up 38% from one year ago, including 197,000 HSAs with investments, an increase of 29% year over year. Total Accounts as of October 31, 2019 reached 12.5 million, including 7.5 million CDBs, 6.8 million from the WageWorks acquisition.

Total HSA Assets as of October 31, 2019 were $10.5 billion, an increase of 48% year over year, or 24% excluding acquired HSA assets. Total HSA Assets included $7.9 billion of HSA Cash and $2.5 billion of HSA Investment Assets. Client-held funds, which include funds remitted to the Company to pre-fund and facilitate administration of Client and employee contributions of other CDBs and from which we generate custodial revenue, were $670.0 million as of October 31, 2019, including approximately $593 million from the WageWorks acquisition.

New HSA Openings and HSA Asset Growth

HealthEquity reported sales of 141,000 new HSAs in the third quarter ended October 31, 2019, nearly 18% more than in the year-ago period. HSA members grew their balances by approximately $260 million in the quarter, more than four times greater than in the year-ago period, reflecting both large net inflows and a positive market backdrop.

WageWorks closing and integration

HealthEquity completed its acquisition of WageWorks on August 30, 2019.  We have achieved an annual run-rate of approximately $15 million net synergies since that date, and we now aim to achieve our previously stated goal of a run rate of $50 million of net synergies by the end of fiscal 2021, earlier than the 24 to 36 months from closing previously anticipated. We have made progress on commitments to WageWorks clients, including that we now expect to complete the on-shoring of all telephone-based member services to the United States during the second quarter of fiscal 2021.

Business outlook

For fiscal year 2020 for the combined HealthEquity, which includes five months of WageWorks' operating results, we expect our revenue to be between $520 million and $526 million. Our outlook for net income is a range of $16 million to $20 million, resulting in net income per diluted share range of $0.24 to $0.28. Our Adjusted EBITDA outlook is a range of $182 million to $186 million. We define Adjusted EBITDA as adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, integration and acquisition-related costs, gains and losses on marketable equity securities, and other certain non-operating items. We also expect our non-GAAP net income to be in a range between $101 million and $105 million. Our non-GAAP net income is calculated by adding back to net income amortization of acquired intangible assets, stock-based compensation expense, and integration and acquisition-related costs, net of an estimated statutory tax rate of 24%, subtracting the excess tax benefits due to the adoption of Accounting Standards Update ("ASU") 2016-09, and adjusting for gains and losses on marketable equity securities, net of an estimated statutory tax rate of 24%. Our non-GAAP net income outlook results in a non-GAAP net income per diluted share range between $1.46 to $1.52 (based on an estimated 69 million weighted-average shares outstanding).

A reconciliation of the non-GAAP financial measures used in 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, December 3, 2019 to discuss the fiscal third quarter 2020 financial results. The conference call will be accessible by dialing 844-791-6252, or 661-378-9636 for international callers, and referencing conference ID 1373115. 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, integration and acquisition-related costs, gains and losses on marketable equity securities, and other certain non-operating items.
  • Non-GAAP net income is calculated by adding back to GAAP net income amortization of acquired intangible assets, stock-based compensation expense, and integration and acquisition-related costs, net of an estimated statutory tax rate, subtracting the excess tax benefits due to the adoption of ASU 2016-09, and adjusting for gains and losses on marketable equity securities, net of an estimated statutory 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. 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 administers Health Savings Accounts (HSAs) and other consumer-directed benefits for our more than 12 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, 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,” “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:

  • our ability to realize the anticipated financial and other benefits from combining the operations of WageWorks with our business in an efficient and effective manner;
  • 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;
  • 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, investment advisor 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

Richard Putnam
801-727-1209
rputnam@healthequity.com

 
HealthEquity, Inc. and its subsidiaries
Condensed consolidated balance sheets
 
(in thousands, except par value) October 31, 2019
    January 31, 2019
 
  (unaudited)      
Assets      
Current assets      
Cash and cash equivalents $ 174,557     $ 361,475  
Accounts receivable, net of allowance for doubtful accounts as of October 31, 2019 and
January 31, 2019 of $1,021 and $125, respectively
66,647     25,668  
Other current assets 29,119     7,534  
Total current assets 270,323     394,677  
Property and equipment, net 35,199     8,223  
Operating lease right-of-use assets 88,515      
Intangible assets, net 796,228     79,666  
Goodwill 1,335,187     4,651  
Deferred tax asset     1,677  
Other assets 34,469     21,122  
Total assets $ 2,559,921     $ 510,016  
Liabilities and stockholders’ equity      
Current liabilities      
Accounts payable $ 7,966     $ 3,520  
Accrued compensation 37,559     16,981  
Accrued liabilities 54,305     8,552  
Current portion of long-term debt 31,250      
Operating lease liabilities 10,780      
Total current liabilities 141,860     29,053  
Long-term debt, net of issuance costs 1,196,016      
Operating lease liabilities, non-current 73,052      
Deferred tax liability 128,642     916  
Other long-term liabilities 2,590     2,968  
Total liabilities 1,542,160     32,937  
Commitments and contingencies      
Stockholders’ equity      
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and
outstanding as of October 31, 2019 and January 31, 2019, respectively
     
Common stock, $0.0001 par value, 900,000 shares authorized, 70,832 and 62,446 shares
issued and outstanding as of October 31, 2019 and January 31, 2019, respectively
7     6  
Additional paid-in capital 806,050     305,223  
Accumulated earnings 211,704     171,850  
Total stockholders’ equity 1,017,761     477,079  
Total liabilities and stockholders’ equity $ 2,559,921     $ 510,016  
               


 
HealthEquity, Inc. and its subsidiaries
Condensed consolidated statements of operations and comprehensive income (loss) (unaudited)
 
(in thousands, except per share data) Three months ended October 31,
    Nine months ended October 31,
 
2019
    2018
    2019
    2018
 
Revenue:              
Service revenue $ 87,620     $ 25,041     $ 140,710     $ 74,797  
Custodial revenue 46,972     31,564     132,538     90,713  
Interchange revenue 22,526     13,890     57,545     45,956  
Total revenue 157,118     70,495     330,793     211,466  
Cost of revenue:              
Service costs 52,278     17,562     92,672     52,808  
Custodial costs 4,384     3,551     12,716     10,492  
Interchange costs 4,421     3,565     13,177     11,418  
Total cost of revenue 61,083     24,678     118,565     74,718  
Gross profit 96,035     45,817     212,228     136,748  
Operating expenses:              
Sales and marketing 12,654     7,502     30,015     21,605  
Technology and development 23,511     8,678     46,061     25,055  
General and administrative 19,222     9,161     37,193     24,561  
Amortization of acquired intangible assets 13,051     1,490     16,036     4,438  
Merger integration 17,675         20,459      
Total operating expenses 86,113     26,831     149,764     75,659  
Income from operations 9,922     18,986     62,464     61,089  
Other expense:              
Interest expense (10,225 )   (68 )   (10,355 )   (204 )
Other expense, net (30,949 )   (1,487 )   (8,347 )   (1,427 )
Income (loss) before income taxes (31,252 )   17,431     43,762     59,458  
Income tax provision (benefit) (9,918 )   1,745     3,908     (1,322 )
Net income (loss) and comprehensive income (loss) $ (21,334 )   $ 15,686     $ 39,854     $ 60,780  
Net income (loss) per share:              
Basic $ (0.30 )   $ 0.25     $ 0.61     $ 0.98  
Diluted $ (0.30 )   $ 0.25     $ 0.59     $ 0.96  
Weighted-average number of shares used in computing net income
(loss) per share:
             
Basic 70,524     62,088     65,727     61,718  
Diluted 70,524     63,923     67,150     63,628  
                       


 
HealthEquity, Inc. and its subsidiaries
Condensed consolidated statements of cash flows (unaudited)
 
  Nine months ended October 31,
 
(in thousands) 2019
    2018
 
Cash flows from operating activities:      
Net income $ 39,854     $ 60,780  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 28,791     13,498  
(Gains) losses on marketable equity securities and other (25,303 )   895  
Deferred taxes 690     394  
Stock-based compensation 31,194     15,461  
Changes in operating assets and liabilities:      
Accounts receivable (2,817 )   (2,863 )
Other assets (4,937 )   (4,568 )
Operating lease right-of-use assets

3,340      
Accounts payable 524     (1,087 )
Accrued compensation (8,012 )   (2,617 )
Accrued liabilities and other current liabilities 13,655     451  
Operating lease liabilities, non-current (2,859 )    
Other long-term liabilities (50 )   441  
Net cash provided by operating activities 74,070     80,785  
Cash flows from investing activities:      
Acquisitions, net of cash acquired (1,630,066 )    
Purchases of intangible member assets (9,070 )   (1,195 )
Purchases of marketable equity securities and other (53,845 )   (574 )
Purchases of property and equipment (5,180 )   (3,467 )
Purchases of software and capitalized software development costs (17,232 )   (7,352 )
Net cash used in investing activities (1,715,393 )   (12,588 )
Cash flows from financing activities:      
Proceeds from long-term debt 1,250,000      
Payment of debt issuance costs (30,504 )    
Settlement of client-held funds obligation (230,928 )    
Proceeds from follow-on equity offering, net of payment for offering costs 458,495      
Proceeds from exercise of common stock options 7,342     21,338  
Net cash provided by financing activities 1,454,405     21,338  
Increase (decrease) in cash and cash equivalents (186,918 )   89,535  
Beginning cash and cash equivalents 361,475     199,472  
Ending cash and cash equivalents $ 174,557     $ 289,007  
Supplemental cash flow data:      
Interest expense paid in cash $ 249     $ 162  
Income taxes paid in cash, net of refunds received 9,127     628  
Supplemental disclosures of non-cash investing and financing activities:      
Equity-based acquisition consideration $ 3,776     $  
Purchases of property and equipment included in accounts payable or accrued liabilities at period end 168     6  
Purchases of software and capitalized software development costs included in accounts payable or accrued liabilities at period end 316     156  
Purchases of intangible member assets accrued during the period (151 )    
Exercise of common stock options receivable 21     28  
           

Stock-based compensation expense (unaudited)

Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income (loss) is as follows:

  Three months ended October 31,
    Nine months ended October 31,
 
(in thousands) 2019
    2018
    2019
    2018
 
Cost of revenue $ 1,415     $ 788     $ 3,285     $ 2,008  
Sales and marketing 1,304     990     3,469     2,586  
Technology and development 2,171     1,386     5,600     3,677  
General and administrative 3,332     2,570     9,486     7,190  
Merger integration 1,220         1,220      
Other expense, net 13,714         13,714      
Total stock-based compensation expense $ 23,156     $ 5,734     $ 36,774     $ 15,461  
                               


 
Total Accounts (unaudited)
 
(in thousands, except percentages) October 31, 2019     October 31, 2018     % Change     January 31, 2019  
HSAs 5,031     3,677     37 %   3,994  
Average HSAs - Year-to-date 4,296     3,540     21 %   3,608  
Average HSAs - Quarter-to-date 4,743     3,642     30 %   3,813  
New HSAs - Year-to-date 1,113     338     229 %   679  
New HSAs - Quarter-to-date 898     119     655 %   341  
Active HSAs 4,115     2,972     38 %   3,241  
HSAs with investments 197     153     29 %   163  
CDBs 7,504     598     1,155 %   572  
Total Accounts 12,535     4,275     193 %   4,566  
Average Total Accounts - Year-to-date 6,482     4,125     57 %   4,194  
Average Total Accounts - Quarter-to-date 9,970     4,239     135 %   4,402  
                       


 
HSA Assets (unaudited)
 
(in millions, except percentages) October 31, 2019
    October 31, 2018
    % Change
    January 31, 2019
 
HealthEquity HSA cash (custodial revenue) (1) $ 6,578     $ 5,583     18 %   $ 6,428  
WageWorks HSA cash (custodial revenue) (2) 986         n/a      
WageWorks HSA cash (no custodial revenue) (3) 381         n/a      
Total HSA cash 7,945     5,583     42 %   6,428  
HealthEquity HSA investments (custodial revenue) (1) 2,188     1,507     45 %   1,670  
WageWorks HSA investments (no custodial revenue) (3) 326         n/a      
Total HSA investments 2,514     1,507     67 %   1,670  
Total HSA Assets 10,459     7,090     48 %   8,098  
Average daily HealthEquity HSA cash - Year-to-date 6,435     5,503     17 %   5,586  
Average daily HealthEquity HSA cash - Quarter-to-date $ 6,493     $ 5,551     17 %   $ 5,837  
(1) HSA Assets administered by HealthEquity that generate custodial revenue
(2) HSA Assets administered by WageWorks that generate custodial revenue
(3) HSA Assets administered by WageWorks that do not currently generate custodial revenue
 


 
Client-held funds (unaudited)
 
(in millions, except percentages) October 31, 2019
    October 31, 2018
    % Change   January 31, 2019
 
Client-held funds (custodial revenue) (1) $ 670     $     n/a   $  
Average daily Client-held funds - Year-to-date $ 268     $     n/a   $  
Average daily Client-held funds - Quarter-to-date $ 500     $     n/a   $  
(1) Client-held funds that generate custodial revenue
 


 
Net income (loss) reconciliation to Adjusted EBITDA (unaudited)
 
  Three months ended October 31,
    Nine months ended October 31,
 
(in thousands) 2019
    2018
    2019
    2018
 
Net income (loss) $ (21,334 )   $ 15,686     $ 39,854     $ 60,780  
Interest income (2,046 )   (358 )   (5,273 )   (919 )
Interest expense 10,225     68     10,355     204  
Income tax provision (benefit) (9,918 )   1,745     3,908     (1,322 )
Depreciation and amortization 6,203     3,092     12,940     9,060  
Amortization of acquired intangible assets 13,051     1,490     16,036     4,438  
Stock-based compensation expense 8,222     5,734     21,840     15,461  
Merger integration expenses (1) 17,675         20,459      
Acquisition costs (2) 32,932     849     40,712     1,074  
Gain on marketable equity securities (285 )       (27,570 )    
Other (3) 824     1,360     1,854     2,318  
Adjusted EBITDA $ 55,549     $ 29,666     $ 135,115     $ 91,094  
(1) Includes $1.2 million of stock-based compensation expense related to post-acquisition merger integration activities.
(2) Includes  $13.7 million of stock-based compensation expense related to acquisition related cash and equity accelerations.
(3) For the three months ended October 31, 2019 and 2018, Other consisted of other costs of $349 and $321, amortization of incremental costs to obtain a contract of $475 and $363, and loss on disposal of previously capitalized software development of $0 and $676, respectively. For the nine months ended October 31, 2019 and 2018, Other consisted of other costs of $479 and $597, amortization of incremental costs to obtain a contract of $1,375 and $1,045, and loss on disposal of previously capitalized software development of $0 and $676, respectively.
 


 
Reconciliation of net income outlook to Adjusted EBITDA outlook (unaudited)
 
  Outlook for the year ending
(in millions) January 31, 2020
Net income $16 - $20
Interest income ~ (6)
Interest expense ~ 25
Income tax provision ~ 2
Depreciation and amortization ~ 25
Amortization of acquired intangible assets ~ 35
Stock-based compensation expense ~ 31
Merger integration expenses ~ 38
Acquisition costs ~ 41
Gain on marketable equity securities ~ (28)
Other ~ 3
Adjusted EBITDA $182 - $186
   


 
Reconciliation of non-GAAP net income per diluted share (unaudited)
 
  Three months ended
  Nine months ended
  Outlook for the
year ending
 
             
(in millions, except per share data) October 31, 2019
  October 31, 2018
  October 31, 2019
  October 31, 2018
  January 31, 2020  
Net income (loss)   ($21 )   $16     $40     $61   $16 - $20  
Amortization of acquired intangible assets, net of tax (1)   10     1     12     3   26  
Stock-based compensation expense, net of tax (1)   6     4     17     12   24  
Excess tax benefit due to adoption of ASU 2016-09       (2 )   (4 )   (14 ) (4 )
Merger integration expenses, net of tax (1)   13         16       29  
Acquisition costs, net of tax (1)   25     1     31     1   31  
Gain on marketable equity securities, net of tax (1)           (21 )     (21 )
Non-GAAP net income   $33     $20     $91     $63   $101 - $105  
                             
Diluted weighted-average shares used in
computing GAAP and Non-GAAP per share amounts
  71     64     67     64   69  
Non-GAAP net income per diluted share (2)   $0.47     $0.31     $1.36     $0.98   $1.46 - $1.52  
(1) For the three and nine months ended October 31, 2019 and 2018, the Company used an estimated statutory tax rate of 24% to calculate the net impact of stock-based compensation expense, mark-to-market adjustments, and acquisition and integration-related costs.
(2) Non-GAAP net income per diluted share does not calculate due to rounding of non-GAAP net income and diluted weighted-average shares.
 


Certain terms
 
Term Definition
HSA A financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDB Consumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), Consolidated Omnibus Budget Reconciliation Act (“COBRA”) administration, commuter and other benefits.
HSA member Consumers with HSAs that we serve.
Active HSA member An HSA member that (i) is associated with a Network Partner or a Client, in each case as of the end of the applicable period; or (ii) has held a custodial balance at any point during the previous twelve month period.

CDB member Consumers with CDBs that we serve.
Total HSA Assets HSA members' deposits with our federally-insured custodial depository partners and custodial cash deposits invested in an annuity contract with our insurance company partner. Total HSA Assets also includes HSA members' investments in mutual funds through our custodial investment fund partner.
Client Our employer clients.
Total Accounts The sum of HSAs and CDBs on our platforms.
Client-held funds Pre-funds held on behalf of our Clients to facilitate administration of our CDBs
Network Partner Our health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDA Adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, gains and losses on marketable equity securities, acquisition and integration-related costs, and other certain non-operating items.
Non-GAAP net income Calculated by adding back to net income amortization of acquired intangible assets, stock-based compensation expense, and integration and acquisition-related costs, net of an estimated statutory tax rate, subtracting the excess tax benefits due to the adoption of ASU 2016-09, and adjusting for gains and losses on marketable equity securities, net of an estimated statutory tax rate.
Non-GAAP net income per diluted share Calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

Primary Logo


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.