Healthequity, Inc. · NASDAQ:HQY
Healthequity — JP Morgan Healthcare Conference 2019
24 slides from Healthequity's conference presentation, January 2019
Slide 1: HealthEquity – JP Morgan Healthcare Conference January 2019
HealthEquity JP Morgan Healthcare Conference January 2019 Members since 2010 Members Members since 2008 since 2012 Copyright © 2018 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 1HealthEquity data measured for fiscal years 2013 to 2018 3 2Based on Devenir Research HSA reports December 31, 2010-2017
Slide 4: Connected solutions
Connected solutions Healthcare a Retirement Strategy Strategy $) HealthEquity:
Slide 5: FY19 sales results
FY 19 sales results Press Release – Vanguard Partners with HealthEquity – Nov 2018 HealthEquity employers and network partners data as of January 2018 5 HealthEquity custodial asset and HSA guidance for January 31, 2019 as of January 7, 2019 – see press release dated January 7, 2019 Wealthview DC pa
Slide 6: Growing market share
Growing market share HealthEquity HSAs market share 15% By custodial assets 14% 14% By HSA 13% 13% 12% 11% 9% 9% 8% 8% 7% 7% 6% 4% 4% 2011 2012 2013 2014 2015 2016 2017 2018 #7 #6 #4/5 #4/5 #4/5 #4/3 #2/3 #2/2 Rank 6 Based on actual second quarter HealthEquity balances and Devenir Research HSA repor
Slide 7: Our core – health savings accounts
Our core – health savings accounts 1 Devenir HSA Report 6/30/2018 7 2 Management estimate as of October 31, 2018 3 Management guidance for January 31,2019 as of January 7, 2019 – see press release January 7, 2019
Slide 8: Rising first dollar responsibility
Rising first dollar responsibility Deductible for family plan $4,000 HMO PPO POS HSA min $3,500 “While growing deductibles in PPOs and other plan $3,000 types generally increase enrollee out-of-pocket $2,500 liability, the shift in enrollment to higher $2,000 deductible plans with savings option doe
Slide 9: HSAs reduce healthcare costs
HSAs reduce healthcare costs 20% HSA plan penetration1 18% Commercial healthcare inflation2 16% 14% 12% 10% 8% 6% 4% 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $1,722 $1,073 Average premium savings3 Average employer contribution3 1NCHS Data Brief No. 317 August 2018 – US Dept HHS 9
Slide 10: HSAs multiply retirement savings
HSAs multiply retirement savings 10
Slide 11: Unique market position
Unique market position HSAs UNH 16% HQY All 15% Others 53% WBS 11% FMR 5% Custodial assets UNH 18% All Others HQY 49% 13% WBS FMR 14% 6% 11 Based on actual second quarter HealthEquity balances and Devenir Research HSA reports June 30, 2011-2018
Slide 12: Proprietary end-to-end platform
Proprietary end-to-end platform 12 HealthEquity data as of January 31, 2018
Slide 13: FY19 sales results
FY 19 sales results Press Release – Vanguard Partners with HealthEquity – Nov 2018 HealthEquity employers and network partners data as of January 2018 13 HealthEquity custodial asset and HSA guidance for January 31, 2019 as of January 7, 2019 – see press release dated January 7, 2019 Wealthview DC p
Slide 14: 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 1Revenue and Adjusted EBITDA cumulative growth were calculated based on FY2014 to FY2018. 14 2Balances and cumulative growth as of January 31, 2018
Slide 15: Powerful monetization
Powerful monetization Interchange 19% Service Investing 50% Custodial Cash 31% FY14 Card Interchange 22% Service Service 40% Custodial 38% FY18 15 HealthEquity revenue for January 31, 2014 and January 31, 2018
Slide 16: 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 17: Value of mature accounts
Value of mature accounts $14,116 $10,596 $5,184 $1,991 $379 $3,520 $1,612 $402 Avg HS A No t A ct ive A ct ive S p e n d e r Co n f id e n t Co n su m e r He a lt h y S a ve r % of members 16% 56% 24% 4% 17 NOTE: HealthEquity data as of January 31, 2018
Slide 18: Fiscal third quarter operating results
Fiscal third quarter operating results HSAs (000s) Custodial Assets ($M) Beg HSAs Net new HSAs Cash Assets Investment Assets $7,090 3,677 $1,507 $5,580 3,013 675 $987 $4,284 2,378 635 $571 776 $5,583 3,013 $4,593 2,378 $3,713 1,602 Q3FY17 Q3FY18 Q3FY19 Q3FY17 Q3FY18 Q3FY19 • Q3 New HSAs of 119K • Ne
Slide 19: Fiscal third quarter financial results
Fiscal third quarter financial results 1 Revenue ($M) Adjusted EBITDA ($M) Three months Nine months Three months Nine months $211.5 $91.1 $169.1 $67.6 $70.5 $131.6 $29.7 $56.8 $51.0 $43.4 $21.2 $14.5 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 • 24% Q3 revenue growth YoY • Q3 Adjuste
Slide 20: Capitalization
Capitalization ($ in millions) January 31, 2018 October 31, 2018 Cash, cash equivalents $240.3 $330.3 & marketable securities Long-term debt $0.0 $0.0 ($100M available LOC) Total stockholders’ equity $346.3 $456.8 20
Slide 21: Guidance
Guidance Business outlook For the fiscal year ending January 31, 2019 December 4, 2018* September 4, 2018 June 4, 2018 March 19, 2018 $281 – $285 $279 – $285 $278 – $284 $276 – $282 $68 - $72 $67 - $71 $64 - $68 $63 - $67 $1.06 - $1.13 $1.05 - $1.11 $1.00 - $1.06 $0.98 - $1.04 $110 – $114 $108 – $11
Slide 22: Rising above
Rising above 1 4 1 HealthEquity data as of January 31, 2018 22 2 Market share and HSA balance growth CAGR data from Devenir Research HSA report, December 31, 2017 3 Management estimate as of January 31, 2018 4 HealthEquity data of 100 largest employer clients as of January 31, 2018
Slide 23: Save the date: Investor / Analyst Day June 19, 2019
Save the date HealthEquity Investor / Analyst Day June 19, 2019 Details to follow 23
Slide 24: HealthEquity
HealthEquity: