Healthequity, Inc. · NASDAQ:HQY
Healthequity — Investor Presentation (March 2017)
21 slides from Healthequity's investor presentation, March 2017
Slide 1: Investor Presentation
INVESTOR PRESENTATION March 2017 Copyright © 2015 - 2017 HealthEquity, Inc. All rights reserved. HealthEquity and the HealthEquity logo are registered trademarks and service marks of HealthEquity, Inc. Confidential and proprietary. Reproduction without express written consent is prohibited.
Slide 2: Notice and disclaimer
Notice and disclaimer 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 Comm
Slide 3: Legal disclaimers
Legal disclaimers HealthEquity Advisors, LLC is a separate, wholly-owned subsidiary of HealthEquity. Investments available to HSA holders are subject to risk, including the possible loss of the principal invested and are not FDIC insured or guaranteed by HealthEquity, Inc.. HealthEquity, Inc. does n
Slide 4: Investment highlights
Investment highlights Momentum Innovation Rapid growth Vast ecosystem in customers, revenue, profit of 3rd-party solutions enabled and lead over competitors by HQY’s technology An independent, trusted platform used by millions of consumers Opportunity to build health savings Leadership Powerful tren
Slide 5: Key metrics
Key metrics Revenue ($M) $178.4 44% $126.8 41% 42% $87.9 $62.0 FY14 FY15 FY16 FY17 Adjusted EBITDA ($M) $62.8 60% 61% $40.6 55% $25.2 $15.8 FY14 FY15 FY16 FY17 HSA Members (000s) 2,746 2,141 50% 47% 1,427 968 28% FY14 FY15 FY16 FY17 Custodial Assets ($M) 56% $5,039 45% $3,685 $2,362 37% $1,625 FY14
Slide 6: Our core – health savings accounts
Our core – health savings accounts 19% HSA plan penetration* Commercial healthcare inflation** 15% 14% 11% 11% 9% 8% 6% 6% 6% 6% 7% 6% 6% * ** 2010 2011 2012 2013 2014 2015 2016 $2,266 $6,750 $1,617 Average premium savings* Maximum contribution to HSA Average employer contribution* SOURCE: * Kaiser
Slide 7: Expanding market
Expanding market 19% Penetration of HSA 20% CAGR Market Growth* plans among under-65, privately insured*** *Devenir HSA Report 12/31/2016 **Management estimate 7 ***Kaiser Family Foundation, 2016 Employee Benefits Survey
Slide 8: Growing market share
Growing market share Market Share 13% By HSA 12% 11% By Custodial Assets 10% 9% 9% 9% 8% 8% 7% 7% 6% 4% 4% 2010 2011 2012 2013 2014 2015 2016 Rank #7 #6 #4/5 #4/5 #4/5 #4/3 #2/3 Based on Devenir Research HSA reports December 31, 2010-2016 8
Slide 9: Highly differentiated
Highly differentiated Healthcare: Benefits: • UNH • WAGE • AET • WLTW Proprietary platform Engagement ecosystem Distribution network Banking: Retirement: • BAC • CNDT • WBS • FRM 9
Slide 10: Proprietary platform
Proprietary platform @ INVEST SPEND HealthEquity”
Slide 11: Unique engagement ecosystem
Unique engagement ecosystem NOTE: Data as of January 31, 2017 11
Slide 12: Unmatched B2B2C distribution
Unmatched B2B2C distribution HSAs UNH 16% Network partners 584 Large employers 87 Health plans >1/3 HQY 13% Of Americans under 65 are covered by HQY All Others network partners* 60% WBS Health plan and broker 11% sales, account execs Custodial UNH Assets 20% 34K+ Employers HQY All Others 12% 54% WBS
Slide 13: Powerful monetization
Powerful monetization Gross margin 57% 68% 72% FY 16 overall 3-year old HSA 6-year old HSA Investing Saving Payment Service HQY data as of January 31, 2016 13
Slide 14: Account balance growth by age
Account balance growth by age NOTE: HealthEquity data as of January 31, 2017 Source: Average balance data from Devenir HSA Report December 31, 2016 14
Slide 15: Value of mature accounts
Value of mature accounts $13,907 $9,993 $4,544 $1,835 $4,544 $240 $3,914 $1,595 $320 AVG HSA SPENDERS SAVERS INVESTORS 100% 70% 28% 2% Percent of total HSAs 15 NOTE: HealthEquity data as of January 31, 2017
Slide 16: Seeds of future growth
Seeds of future growth 51% Of HSAs are less than two years old $1,835 Average account balance 98% Of HSA members yet to invest Low Penetration of network partners Low Interest rate environment > 95% Retention rate FY 2017 data 16
Slide 17: Year-end operating results
Year-end operating results HSAs (000s) Custodial Assets ($M) Net new HSAs Cash AUM Investment Assets 2,746 $5,039 $659 605 2,141 $3,685 $406 714 1,427 $2,362 459 286 $4,380 2,141 $3,279 1,427 $2,076 968 FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 • New HSAs of 668K • Net increase of $1.4B YoY •
Slide 18: 4th quarter and year-end financial results
4th quarter and year-end financial results (1) Revenue ($M) Adjusted EBITDA ($M) Three Months Twelve Months Three Months Twelve Months $62.8 $178.4 $46.8 $126.8 $40.6 $35.9 $11.8 $87.9 $8.9 $25.2 $24.9 $5.5 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 • 41% YTD revenue growth YoY • 55
Slide 19: Capitalization
Capitalization ($ in millions) January 31, 2017 January 31, 2016 Cash, cash equivalents & $180.4 $123.8 marketable securities Long-term debt $0.0 $0.0 ($100M available LOC) Total equity $261.9 $203.5 NOTE: For more information, see our public filings with the Securities and Exchange Commission. 19
Slide 20: Guidance
Guidance * Guidance as of March 21, 2017 ($ in millions, except per share) For the Fiscal Year Ending January 31, 2018 Revenue $220 – $226 Net Income $30 - $34 Earnings per diluted share $0.50 - $0.55 Adjusted EBITDA** $77 – $82 *Guidance issued in press release dated February 6, 2017. We do not und
Slide 21: HealthEquity: Building Health Savings
HealthEquity: Building Health Savings”