Healthequity, Inc. · NASDAQ:HQY
Healthequity — JP Morgan Healthcare Conference January 2018
20 slides from Healthequity's conference presentation, Jan 8, 2018
Slide 1: Investor presentation, JP Morgan Healthcare Conference January 2018
Copyright © 2017 HealthEquity, Inc. All rights reserved. Investor presentation JP Morgan Healthcare Conference January 2018
Slide 2: Safe Harbor
Safe Harbor 2 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 (
Slide 3: Investment highlights
Investment highlights 3 1. HealthEquity data measured for fiscal years 2014 to 2017 2. Based on Devenir Research HSA reports December 31, 2010-2016
Slide 4: Key metrics
Key metrics 4 0% 100% 200% 300% 400% 500% 600% 700% FY14 FY15 FY16 FY17 YTD FY18 TTM C u m ula ti ve Gro w th 1. For the fiscal year ended January 31, 2017 2. Balances as of October 31, 2017 Revenue Adj. EBITDA HSAs Custodial Assets
Slide 5: Rising first dollar responsibility
Rising first dollar responsibility 5 The differences among health plans are narrowing as all plans trend toward higher deductibles 10-Year CAGR Deductible: HMO PPO POS HDHP Source: Kaiser Family Foundation 2017 Survey report – September 2017 13.7% 9.2% 7.1% 2.3% $- $500 $1,000 $1,500 $2,000 $2,500 $
Slide 6: Our core – health savings accounts
Our core – health savings accounts 6 $6,900 Maximum family HSA contribution $1,900 Average premium savings1 $1,417 Average employer contribution1 SOURCE: 1. Kaiser Family Foundation, 2017 Employee Benefits Survey 2. MEDACorp Survey referenced in Leerink 2017 Outlook report December 12, 2016. 6% 9% 1
Slide 7: Expanding market
Expanding market 7 1. Devenir HSA Report 6/30/20172. Management estimate
Slide 8: Growing market share
Growing market share 8 4% 7% 8% 9% 9% 11% 13% 4% 6% 7% 8% 9% 10% 12% 2010 2011 2012 2013 2014 2015 2016 Rank Based on Devenir Research HSA reports December 31, 2010-2016 HealthEquity HSAs market share UNH 20% HQY 12% WBS 14% All Others 54% Custodial assets UNH 16% HQY 13% WBS 11% All Others 60% HSAs
Slide 9: Proprietary end-to-end platform
Proprietary end-to-end platform 9 HealthEquity data as of January 31, 2017
Slide 10: FY sales results
FY 18 sales results 10 • Largest HSA take away • Preferred relationship agreements with Blue Cross Blue Shield Association and Health Plan Alliance • Renewal of Anthem partnership
Slide 11: Powerful monetization
Powerful monetization 11 Service Card Cash Investing Service 40% Custodial 38% Interchange 22% FY18 YTD* Service 50% Custodial 31% Interchange 19% FY14 *Nine months as of October 31, 2017
Slide 12: Growing forward
Growing forward 12 1. Kaiser Family Foundation Annual Survey 2017 2. Devenir Research HSA report, December 31, 2016 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 13 $7,457 $6,783 $5,493 $4,588 $4,059 $3,595 $3,053 $2,464 $2,061 $1,710 $1,355 $1,232 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 Average balance by
Slide 14: Value of mature accounts
Value of mature accounts 14 $1,595 $4,544 $3,914 $240 $9,993 $1,835 $320 $4,544 $13,907 AVG HSA SPENDER CONFIDENT CONSUMER HEALTHY SAVER NOTE: HealthEquity data as of January 31, 2017
Slide 15: Rising above
Rising above 15 1. Data as of January 31, 2017 2. Devenir Research HSA report, December 31, 2016 3. Management estimate as of January 31, 2017 4. HealthEquity data as of October 31, 2017
Slide 16: 3rd quarter operating results
3rd quarter operating results 16 HSAs (000s) • New organic Q3 HSAs of 109K vs 89K YoY • An additional 14K FIBK HSAs • 27% Q3 growth in ending HSAs YoY • Net increase of $1.3B YoY • 30% growth YoY NOTE: Historic performance depicted is not necessarily indicative of past and future performance. For mo
Slide 17: 3rd quarter financial results
3rd quarter financial results 17 NOTE: Historic performance depicted is not necessarily indicative of past and future performance. For more information, see our Company’s public filings with the Securities and Exchange Commission (1) See Appendix for a reconciliation of net income, the most comparab
Slide 18: Capitalization
Capitalization 18 ($ in millions) January 31, 2017 October 31, 2017 Cash, cash equivalents & marketable securities $180.4 $225.1 Long-term debt ($100M available LOC) $0.0 $0.0 Total equity $261.9 $334.4 NOTE: For more information, see our public filings with the Securities and Exchange Commission.
Slide 19: Guidance
Guidance 19 Business Outlook For the Fiscal Year Ending January 31, 2018 Guidance as of: ($ in millions, except per share) December 5, 2017 * September 5, 2017 June 6, 2017 March 21, 2017 Revenue $225 - $228 $223 – $228 $222 - $227 $220 - $225 Non-GAAP Net Income** $39 - $41 $39 - $43 $38 - $42 Non-
Slide 20: HealthEquity
HealthEauitv:
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