HealthEquity, Inc. · NASDAQ:HQY
HealthEquity — Investor Presentation (March 2018)
20 slides from HealthEquity's investor presentation, March 2018
Slide 1: Investor presentation March 2018
Investor presentation March 2018 Copyright © 2017 HealthEquity, Inc. All rights reserved.
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
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
Slide 4: Key metrics: cumulative growth
Key metrics 800% Revenue HSAs 700% Adj. EBITDA Custodial Assets 600% Cumulative Growth 500% 400% 300% 200% 100% 0% FY14 FY15 FY16 FY17 FY18 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 and
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
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 $6,850 Average premium savings1 Average employer contribution1 Maximum family HSA contribution SOURCE:
Slide 7: Expanding market
Expanding market 1. Devenir HSA Report 12/31/2017 7 2. Management estimate as of January 31, 2018
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
Slide 9: Proprietary end-to-end platform
Proprietary end-to-end platform 9 HealthEquity data as of January 31, 2018
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
Slide 11: Powerful monetization
Powerful monetization Interchange 19% Service Investing 50% Custodial Cash 31% FY14 Card Interchange 22% Service Service 40% Custodial 38% FY18 11
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
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
Slide 14: Value of mature accounts
Value of mature accounts $14,116 $10,596 $5,176 $1,991 $5,176 $379 $314 $3,520 $1,612 AVG HSA SPENDER CONFIDENT CONSUMER HEALTHY SAVER 14 NOTE: HealthEquity data as of January 31, 2018
Slide 15: Rising above
Rising above 1. Data as of January 31, 2018 15 2. Devenir Research HSA report, December 31, 2017 3. Management estimate as of January 31, 2018 4. HealthEquity data as of January 31, 2018
Slide 16: Fiscal year 2018 operating results
Fiscal year 2018 operating results HSAs (000s) Custodial Assets ($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
Slide 17: 4th quarter financial results
4th quarter financial results (1) Revenue ($M) Adjusted EBITDA ($M) Three Months Twelve Months Three Months Twelve Months $229.5 $84.7 $178.4 $62.8 $126.8 $40.6 $60.4 $17.1 $46.8 $35.9 $11.8 $8.9 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 • 29% Q4 revenue growth YoY • 45% Adjusted E
Slide 18: Capitalization
Capitalization ($ in millions) January 31, 2017 January 31, 2018 Cash, cash equivalents $180.4 $240.3 & marketable securities Long-term debt ($100M available LOC) $0.0 $0.0 Total stockholders’ equity $261.9 $346.3 18 NOTE: For more information, see our public filings with the Securities and Exchange
Slide 19: Guidance
Guidance Business Outlook For the Fiscal Year Ending January 31, 2019 Guidance as of: March 19, 2018* ($ in millions, except per share) Revenue $276 – $282 Non-GAAP Net Income** $63 - $67 Non-GAAP Net Income per diluted share** $0.98 - $1.04 Adjusted EBITDA** $106 – $111 19 * Guidance issued in pres
Slide 20: HealthEquity
HealthEquity: