HealthEquity, Inc. Files 2024 10-K Report

TL;DR

<b>HealthEquity, Inc. has submitted its annual 10-K filing detailing financial performance and asset information for the fiscal years 2021-2024.</b>

AI Summary

HEALTHEQUITY, INC. (HQY) filed a Annual Report (10-K) with the SEC on March 22, 2024. HealthEquity, Inc. filed its 10-K report for the fiscal year ending January 31, 2024. The company operates in the Services-Business Services, NEC sector (SIC 7389). The filing covers financial data for fiscal years 2021, 2022, and 2023. Key financial statement elements like Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed for the period. Intangible assets, including Computer Software and Acquired HSA Intangible Assets, are reported for fiscal years 2021 through 2024.

Why It Matters

For investors and stakeholders tracking HEALTHEQUITY, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of HealthEquity's financial health and operational structure for the fiscal year ending January 31, 2024, offering insights into revenue streams, asset composition, and equity changes. Investors and analysts can use this report to assess the company's financial stability, growth trajectory, and potential risks, particularly concerning its intangible assets and various service segments.

Risk Assessment

Risk Level: medium — HEALTHEQUITY, INC. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies, but the sheer volume of data and the need to analyze specific financial line items and segment performance introduce a medium level of complexity and risk for interpretation.

Analyst Insight

Review the detailed financial statements and segment information within the 10-K to understand revenue drivers and asset valuations for HealthEquity.

Key Numbers

• 2024-01-31 — Fiscal Year End (Reporting period)
• 2024-03-22 — Filing Date (Date of submission)
• 2021-02-01 — Start of Reporting Period (First fiscal year included)

Key Players & Entities

• HEALTHEQUITY, INC. (company) — Filer name
• 0001428336 (company) — Central Index Key
• 7389 (company) — Standard Industrial Classification
• DE (company) — State of Incorporation
• UT (company) — State of Business Address
• 801-727-1000 (company) — Business Phone
• 001-36568 (company) — SEC File Number

FAQ

Industry Context

HealthEquity, Inc. operates within the business services sector, specifically focusing on health savings accounts and related financial services.

Regulatory Implications

The filing is a 10-K, an annual report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive summary of a company's financial performance.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends and profitability metrics.
2. Examine the breakdown of intangible assets and their impact on the balance sheet.
3. Review any disclosed risk factors or management discussions for forward-looking statements.

Key Dates

• 2024-01-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-22: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing provided for analysis, so no comparison to a previous filing is available.

Key Financial Figures

• $0.0001 — ich registered Common stock, par value $0.0001 per share HQY The NASDAQ Global Select
• $67.94 — 31, 2023, based on the closing price of $67.94 for shares of the registrant's common s
• $25.2 b — .7 million HSAs, with balances totaling $25.2 billion, which we call HSA Assets, as wel
• $56.2 million — price for the acquisition consisted of $56.2 million in cash. Luum provides employers with v
• $490.0 million — ird") HSA portfolio, which consisted of $490.0 million of HSA Assets held in approximately 160
• $60.8 million — SAs in exchange for a purchase price of $60.8 million in cash. -2- Table of Contents Fur
• $1.9 billion — es, with approximately 580,000 HSAs and $1.9 billion of HSA Assets, for $455 million in cash
• $455 million — SAs and $1.9 billion of HSA Assets, for $455 million in cash (the "Further Acquisition"). H
• $1.3 billion — ngs") HSA portfolio, which consisted of $1.3 billion of HSA Assets held in approximately 87,
• $60 million — SAs in exchange for a purchase price of $60 million in cash. BenefitWallet HSA portfolio a
• $425.0 million — Services, LLC, for a purchase price of $425.0 million and reimbursement of up to $20.0 millio
• $20.0 million — 25.0 million and reimbursement of up to $20.0 million of Conduent's transfer-related expenses
• $7.0 million — ition, we expect to incur approximately $7.0 million of transaction costs associated with th
• $2.8 billion — stomer accounts and their approximately $2.8 billion of HSA Assets and includes a mechanism
• $1.1 billion — ed, with approximately 266,000 HSAs and $1.1 billion of HSA Assets transferring to HealthEqu

Filing Documents

• hqy-20240131.htm (10-K) — 1966KB
• exhibit2112024-1x31.htm (EX-21.1) — 3KB
• exhibit2312024-1x31.htm (EX-23.1) — 2KB
• exhibit3112024-1x31ceo.htm (EX-31.1) — 11KB
• exhibit3122024-1x31cfo.htm (EX-31.2) — 11KB
• exhibit3212024-1x31ceo.htm (EX-32.1) — 6KB
• exhibit3222024-1x31cfo.htm (EX-32.2) — 6KB
• exhibit97-clawbackpolicy.htm (EX-97) — 35KB
• hqy-20240131_g1.jpg (GRAPHIC) — 124KB
• 0001428336-24-000016.txt (&nbsp;) — 10772KB
• hqy-20240131.xsd (EX-101.SCH) — 59KB
• hqy-20240131_cal.xml (EX-101.CAL) — 124KB
• hqy-20240131_def.xml (EX-101.DEF) — 349KB
• hqy-20240131_lab.xml (EX-101.LAB) — 842KB
• hqy-20240131_pre.xml (EX-101.PRE) — 588KB
• hqy-20240131_htm.xml (XML) — 1705KB

Risk factors

Item 1A. Risk factors 13

Unresolved staff comments

Item 1B. Unresolved staff comments 26

Cybersecurity

Item 1C. Cybersecurity 26

Properties

Item 2. Properties 28

Legal proceedings

Item 3. Legal proceedings 28

Mine safety disclosures

Item 4. Mine safety disclosures 28 Part II.

Market for registrant's common equity, related stockholder matters and issuer purchases of equity securities

Item 5. Market for registrant's common equity, related stockholder matters and issuer purchases of equity securities 29

Reserved

Item 6. Reserved 31

Management's discussion and analysis of financial condition and results of operations

Item 7. Management's discussion and analysis of financial condition and results of operations 31

Quantitative and qualitative disclosures about market risk

Item 7A. Quantitative and qualitative disclosures about market risk 47

Financial statements and supplementary data

Item 8. Financial statements and supplementary data 49

Changes in and disagreements with accountants on accounting and financial disclosure

Item 9. Changes in and disagreements with accountants on accounting and financial disclosure 81

Controls and procedures

Item 9A. Controls and procedures 81

Other information

Item 9B. Other information 82

Disclosure regarding foreign jurisdictions that prevent inspections

Item 9C. Disclosure regarding foreign jurisdictions that prevent inspections 82 Part III.

Directors, executive officers and corporate governance

Item 10. Directors, executive officers and corporate governance 83

Executive compensation

Item 11. Executive compensation 83

Security ownership of certain beneficial owners and management and related stockholder matters

Item 12. Security ownership of certain beneficial owners and management and related stockholder matters 83

Certain relationships and related transactions, and director independence

Item 13. Certain relationships and related transactions, and director independence 83

Principal accounting fees and services

Item 14. Principal accounting fees and services 83 Part IV.

Exhibits and financial statement schedules

Item 15. Exhibits and financial statement schedules 84

Form 10-K Summary

Item 16. Form 10-K Summary 87

Signatures

Signatures 88 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K includes forward-looking statements that involve risks and uncertainties, including in the sections entitled "Business," "Risk factors," and "Management's discussion and analysis of financial condition and results of operations." Statements that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements include, without limitation, statements regarding our industry, business strategy, plans, goals, and expectations concerning our markets and market position, future operations, expenses and other results of operations, margins, profitability, tax rates, capital expenditures, liquidity and capital resources, and other financial and operating information. When used in this discussion, the words "may," "believes," "intends," "seeks," "anticipates," "plans," "estimates," "expects," "should," "assumes," "continues," "could," "will," "future," and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this report. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties, and other factors. Although it is not possible to identify all of these risks and factors, they include, among others,

Business

Item 1. Business Company overview We are a leader and an innovator in providing technology-enabled services that empower consumers to make healthcare saving and spending decisions. We use our innovative technology to manage consumers' tax-advantaged health savings accounts ("HSAs") and other consumer-directed benefits ("CDBs") offered by employers, including flexible spending accounts and health reimbursement arrangements ("FSAs" and "HRAs"), and to administer Consolidated Omnibus Budget Reconciliation Act ("COBRA"), commuter and other benefits. As part of our services, we provide consumers with payment processing services, personalized benefit information, the ability to earn wellness incentives, and investment advice to grow their tax-advantaged healthcare savings. We believe the shift to greater consumer responsibility for healthcare costs will require a significant portion of consumers under the age of 65 with private health insurance in the United States to use offerings such as ours. The core of our offerings is the HSA, a financial account through which consumers spend and save long-term for healthcare expenses on a tax-advantaged basis. As of January 31, 2024, we administered 8.7 million HSAs, with balances totaling $25.2 billion, which we call HSA Assets, as well as 7.0 million complementary CDBs. We refer to the aggregate number of HSAs and other CDBs that we administer as Total Accounts, of which we had 15.7 million as of January 31, 2024. We reach consumers primarily through relationships with their employers, which we call Clients. We reach Clients primarily through relationships with benefits brokers and advisors, integrated partnerships with a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan recordkeepers, which we call Network Partners, and a sales force that calls on Clients directly. As of January 31, 2024, our platforms were integrated with more than 200 Network Partners. We have increase

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View this 10-K filing on SEC EDGAR