Healthequity, Inc. · NASDAQ:HQY

Healthequity — Raymond James Investor Conference 2018

20 slides from Healthequity's conference presentation, March 2018

  1. Slide 1: Investor presentation

    Investor presentation Raymond James Investor Conference March 2018 Copyright © 2017 HealthEquity, Inc. All rights reserved.

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation is a summary of information contained in our public filings filed with the Securities and Exchange Commission (SE

  3. Slide 3: Investment highlights

    Investment highlights 1. HealthEquity data measured for fiscal years 2014 to 2017 3 2. Based on Devenir Research HSA reports December 31, 2010-2017

  4. Slide 4: Cumulative Growth

    Key metrics 700% Revenue HSAs Adj. EBITDA Custodial Assets 600% Cumulative Growth 500% 400% 300% 200% 100% 0% FY14 FY15 FY16 FY17 YTD FY18 TTM 1. Revenue and Adjusted EBITDA cumulative growth were calculated based on FY2014 to TTM at October 31, 2017, the most recent reported quarter. 4 2. Balances

  5. Slide 5: Rising first dollar responsibility

    Rising first dollar responsibility Deductible for Family Plan $5,000 HMO PPO POS HDHP HDHP min $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 The differences among health plans are narrowing as all plans trend toward higher

  6. Slide 6: Our core – health savings accounts

    Our core – health savings accounts 19% 19% HSA plan penetration1 Commercial healthcare inflation2 15% 14% 11% 11% 9% 8% 7% 7% 6% 6% 6% 6% 6% 7% 2010 2011 2012 2013 2014 2015 2016 2017 $1,900 $1,417 $6,900 Average premium savings1 Average employer contribution1 Maximum family HSA contribution SOURCE:

  7. Slide 7: Expanding market

    Expanding market 1. Devenir HSA Report 12/31/2017 7 2. Management estimate as of January 31, 2018

  8. Slide 8: Growing market share

    Growing market share HealthEquity HSAs market share HSAs 15% UNH By custodial assets 16% 13% 13% By HSA 12% HQY 11% 15% 10% All Others 9% 9% 58% 9% 8% 8% WBS 7% 7% 11% 6% 4% 4% Custodial assets UNH 18% All HQY 2010 2011 2012 2013 2014 2015 2016 2017 13% Others 55% #7 #6 #4/5 #4/5 #4/5 #4/3 #2/3 #2/3

  9. Slide 9: Proprietary end-to-end platform

    Proprietary end-to-end platform 9 HealthEquity data as of January 31, 2018

  10. Slide 10: FY18 sales results

    FY 18 sales results • Largest HSA take away • Preferred relationship agreements with Blue Cross Blue Shield Association and Health Plan Alliance • Renewal of Anthem partnership 10 HealthEquity data as of January 31, 2018

  11. Slide 11: Powerful monetization

    Powerful monetization Interchange 19% Service Investing 50% Custodial Cash 31% FY14 Card Interchange 22% Service Service 40% Custodial 38% FY18 YTD* 11 *Nine months as of October 31, 2017

  12. Slide 12: Growing forward

    Growing forward 1. Kaiser Family Foundation Annual Survey 2017 12 2. Devenir Research HSA report, December 31, 2017 3. Management estimate based on HealthEquity HSAs as a percent of eligible employees within enterprise employers

  13. Slide 13: Account balance growth by age

    Account balance growth by age Average balance by year the account opened* 12/31/2017 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 $10,000 $8,592 $7,753 $8,000 $5,975 $5,224 $4,795 $6,000 $4,317 $3,577 $4,000 $3,060 $2,449 $2,121 $2,229 $1,619 $2,000 $817 $0 2005 2006 2007 2008 2009 2010 2011 2012 20

  14. Slide 14: Value of mature accounts

    Value of mature accounts $14,116 $10,596 $5,176 $1,991 $5,176 $379 $314 $3,520 $1,612 AVG HSA SPENDER CONFIDENT CONSUMER HEALTHY SAVER 14 NOTE: HealthEquity data as of January 31, 2018

  15. Slide 15: Rising above

    Rising above 1. Data as of January 31, 2018 15 2. Devenir Research HSA report, December 31, 2017 3. Management estimate as of January 31, 2018 4. HealthEquity data as of January 31, 2018

  16. Slide 16: Fiscal year 2018 operating results

    Fiscal year 2018 operating results HSAs (000s) Custodial Assets ($M) Net new HSAs Cash Assets Investment Assets 6,779 3,403 1,289 5,039 2,746 657 659 2,141 605 3,685 406 714 5,490 2,746 4,380 2,141 3,279 1,427 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 • New organic HSAs of 669K vs 668K YoY • Net inc

  17. Slide 17: 3rd quarter financial results

    3rd quarter financial results (1) Revenue ($M) Adjusted EBITDA ($M) Three Months Nine Months Three Months Nine Months $169.1 $67.6 $131.6 $51.0 $90.9 $56.8 $31.8 $21.2 $43.4 $30.6 $14.5 $9.9 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 • 31% Q3 revenue growth YoY • 46% Adjusted EBITDA

  18. Slide 18: Capitalization

    Capitalization ($ in millions) January 31, 2017 October 31, 2017 Cash, cash equivalents $180.4 $225.1 & marketable securities Long-term debt ($100M available LOC) $0.0 $0.0 Total equity $261.9 $334.4 18 NOTE: For more information, see our public filings with the Securities and Exchange Commission.

  19. Slide 19: Guidance

    Guidance Business Outlook For the Fiscal Year Ending January 31, 2018 Guidance as of: December 5, 2017* September 5, 2017 June 6, 2017 March 21, 2017 ($ in millions, except per share) Revenue $225 - $228 $223 – $228 $222 - $227 $220 - $225 Non-GAAP Net Income** $39 - $41 $39 - $43 $38 - $42 Non-GAAP

  20. Slide 20: HealthEquity

    HealthEquity:

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