HEALTHEQUITY, INC. Highlights of the fiscal year include:
- Revenue of
$756.6 million , an increase of 3% compared to$733.6 million in FY21. - Net loss of
$44.3 million , compared to net income of$8.8 million in FY21, with non-GAAP net income of$110.2 million , compared to$127.6 million in FY21. - Net loss per diluted share of
$0.53 , compared to net income per diluted share of$0.12 in FY21, with non-GAAP net income per diluted share of$1.33 , compared to$1.69 in FY21. - Adjusted EBITDA of
$236.0 million , a decrease of 2% compared to$240.8 million in FY21. - 7.2 million HSAs, an increase of 25% compared to FY21.
- Total HSA Assets of
$19.6 billion , an increase of 37% compared to FY21. - 14.4 million Total Accounts, including both HSAs and complementary CDBs, an increase of 12% compared to FY21.
- The Company sold 5,750,000 shares of common stock, yielding net proceeds of
$456.6 million . - The Company closed its acquisitions of Luum, the Fifth Third Bank HSA portfolio, and Further.
- The Company issued
$600 million aggregate principal amount of 4.50% Senior Notes due 2029 and refinanced its credit facility.
Highlights of the fourth quarter include:
- Revenue of
$203.3 million , an increase of 8% compared to$188.2 million in Q4 FY21. - Net loss of
$32.8 million , compared to net income of$5.4 million in Q4 FY21, with non-GAAP net income of$17.0 million , compared to$34.6 million in Q4 FY21. - Net loss per diluted share of
$0.39 , compared to net income per diluted share of$0.07 in Q4 FY21, with non-GAAP net income per diluted share of$0.20 , compared to$0.44 in Q4 FY21. - Adjusted EBITDA of
$50.4 million , a decrease of 11% compared to$56.6 million in Q4 FY21. - The Company closed its acquisition of Further on
November 1, 2021 . - The Company agreed to purchase the HealthSavings HSA portfolio, which closed on
March 2, 2022 .
“The HealthEquity team closed out the fiscal 2022 year strong with
Fiscal year financial results
Revenue for the fiscal year ended
Adjusted EBITDA was
As of
Fourth quarter financial results
Revenue for the fourth quarter ended
Adjusted EBITDA was
Account and asset metrics
HSAs as of
Total HSA Assets as of
HealthSavings HSA portfolio acquisition
On
Business outlook
For the fiscal year ending
See “Non-GAAP financial information” below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.
Conference call
Non-GAAP financial information
To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.
- Adjusted EBITDA is adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and other certain non-operating items.
- Non-GAAP net income is calculated by adding back to GAAP net income (loss) before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, and losses on extinguishment of debt, costs associated with unused office space, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
- Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is not excluded. We have changed the definitions of Adjusted EBITDA and non-GAAP net income to exclude costs associated with unused office space to reflect that a majority of our work force is now permanently working remotely. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.
About HealthEquity
Forward-looking statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, 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,” “aims,” “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 press release.
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, risks related to the following:
- the impact of the ongoing COVID-19 pandemic on the Company, its operations and its financial results;
- our ability to realize the anticipated financial and other benefits from combining the operations of
WageWorks and Further with our business in an efficient and effective manner; - our ability to integrate the Further business successfully;
- our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
- our dependence on the continued availability and benefits of tax-advantaged health savings accounts and other consumer-directed benefits;
- our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
- the significant competition we face and may face in the future, including from those with greater resources than us;
- our reliance on the availability and performance of our technology and communications systems;
- recent and potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
- the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
- our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
- our reliance on partners and third-party vendors for distribution and important services;
- our ability to develop and implement updated features for our technology and communications systems and successfully manage our growth;
- our ability to protect our brand and other intellectual property rights; and
- our reliance on our management team and key team members.
For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the
Investor Relations Contact
801-727-1209
rputnam@healthequity.com
Consolidated balance sheets (unaudited)
| (in thousands, except par value) | |||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 225,414 | $ | 328,803 | |
| Accounts receivable, net of allowance for doubtful accounts of | 87,428 | 72,767 | |||
| Other current assets | 38,495 | 58,607 | |||
| Total current assets | 351,337 | 460,177 | |||
| Property and equipment, net | 23,372 | 29,106 | |||
| Operating lease right-of-use assets | 63,613 | 89,508 | |||
| Intangible assets, net | 973,137 | 767,003 | |||
| 1,645,836 | 1,327,193 | ||||
| Other assets | 49,807 | 37,420 | |||
| Total assets | $ | 3,107,102 | $ | 2,710,407 | |
| Liabilities and stockholders’ equity | |||||
| Current liabilities | |||||
| Accounts payable | $ | 27,541 | $ | 1,614 | |
| Accrued compensation | 47,136 | 50,670 | |||
| Accrued liabilities | 57,589 | 75,880 | |||
| Current portion of long-term debt | 8,750 | 62,500 | |||
| Operating lease liabilities | 12,171 | 14,037 | |||
| Total current liabilities | 153,187 | 204,701 | |||
| Long-term liabilities | |||||
| Long-term debt, net of issuance costs | 922,077 | 924,217 | |||
| Operating lease liabilities, non-current | 65,232 | 74,224 | |||
| Other long-term liabilities | 14,185 | 8,808 | |||
| Deferred tax liability | 99,846 | 119,729 | |||
| Total long-term liabilities | 1,101,340 | 1,126,978 | |||
| Total liabilities | 1,254,527 | 1,331,679 | |||
| Commitments and contingencies | |||||
| Stockholders’ equity | |||||
| Preferred stock, | — | — | |||
| Common stock, | 8 | 8 | |||
| Additional paid-in capital | 1,676,508 | 1,158,372 | |||
| Accumulated earnings | 176,059 | 220,348 | |||
| Total stockholders’ equity | 1,852,575 | 1,378,728 | |||
| Total liabilities and stockholders’ equity | $ | 3,107,102 | $ | 2,710,407 | |
Consolidated statements of operations and comprehensive income (loss) (unaudited)
| Three months ended | Year ended | ||||||||||||||
| (in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Revenue | |||||||||||||||
| Service revenue | $ | 112,461 | $ | 111,328 | $ | 426,910 | $ | 430,966 | |||||||
| Custodial revenue | 58,057 | 48,581 | 202,817 | 190,933 | |||||||||||
| Interchange revenue | 32,779 | 28,260 | 126,829 | 111,671 | |||||||||||
| Total revenue | 203,297 | 188,169 | 756,556 | 733,570 | |||||||||||
| Cost of revenue | |||||||||||||||
| Service costs | 86,119 | 78,019 | 290,302 | 280,214 | |||||||||||
| Custodial costs | 6,300 | 4,769 | 21,867 | 19,574 | |||||||||||
| Interchange costs | 5,579 | 4,463 | 20,681 | 18,448 | |||||||||||
| Total cost of revenue | 97,998 | 87,251 | 332,850 | 318,236 | |||||||||||
| Gross profit | 105,299 | 100,918 | 423,706 | 415,334 | |||||||||||
| Operating expenses | |||||||||||||||
| Sales and marketing | 16,317 | 13,462 | 58,605 | 49,964 | |||||||||||
| Technology and development | 45,927 | 32,319 | 157,364 | 124,809 | |||||||||||
| General and administrative | 20,876 | 22,903 | 84,379 | 84,493 | |||||||||||
| Amortization of acquired intangible assets | 23,046 | 19,159 | 82,791 | 76,064 | |||||||||||
| Merger integration | 26,383 | 14,662 | 64,805 | 45,990 | |||||||||||
| Total operating expenses | 132,549 | 102,505 | 447,944 | 381,320 | |||||||||||
| Income (loss) from operations | (27,250 | ) | (1,587 | ) | (24,238 | ) | 34,014 | ||||||||
| Other income (expense) | |||||||||||||||
| Interest expense | (10,748 | ) | (6,771 | ) | (36,572 | ) | (34,881 | ) | |||||||
| Other income (expense), net | (5,767 | ) | 7,016 | (5,931 | ) | 5,007 | |||||||||
| Total other income (expense) | (16,515 | ) | 245 | (42,503 | ) | (29,874 | ) | ||||||||
| Income (loss) before income taxes | (43,765 | ) | (1,342 | ) | (66,741 | ) | 4,140 | ||||||||
| Income tax benefit | (10,947 | ) | (6,709 | ) | (22,452 | ) | (4,694 | ) | |||||||
| Net income (loss) and comprehensive income (loss) | $ | (32,818 | ) | $ | 5,367 | $ | (44,289 | ) | $ | 8,834 | |||||
| Net income (loss) per share: | |||||||||||||||
| Basic | $ | (0.39 | ) | $ | 0.07 | $ | (0.53 | ) | $ | 0.12 | |||||
| Diluted | $ | (0.39 | ) | $ | 0.07 | $ | (0.53 | ) | $ | 0.12 | |||||
| Weighted-average number of shares used in computing net income (loss) per share: | |||||||||||||||
| Basic | 83,708 | 76,846 | 83,133 | 74,235 | |||||||||||
| Diluted | 83,708 | 78,559 | 83,133 | 75,679 | |||||||||||
Consolidated statements of cash flows (unaudited)
| Year ended | |||||||||||
| (in thousands) | 2022 | 2021 | 2020 | ||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | (44,289 | ) | $ | 8,834 | $ | 39,664 | ||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 137,188 | 115,904 | 55,352 | ||||||||
| Stock-based compensation | 52,750 | 42,863 | 39,844 | ||||||||
| Impairment of right-of-use assets | 11,246 | — | — | ||||||||
| Amortization of debt issuance costs | 4,448 | 5,102 | 2,711 | ||||||||
| Loss on extinguishment of debt | 4,049 | — | — | ||||||||
| Change in fair value of contingent consideration | (2,147 | ) | — | — | |||||||
| Gains on equity securities | (1,677 | ) | — | (27,570 | ) | ||||||
| Other non-cash items | 1,232 | 1,753 | 728 | ||||||||
| Deferred taxes | (23,430 | ) | (5,132 | ) | 3,665 | ||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (11,204 | ) | (413 | ) | (4,029 | ) | |||||
| Other assets | 7,464 | (24,839 | ) | (12,577 | ) | ||||||
| Operating lease right-of-use assets | 15,235 | 11,150 | 6,218 | ||||||||
| Accrued compensation | (3,657 | ) | 771 | 4,550 | |||||||
| Accounts payable, accrued liabilities, and other current liabilities | (2,178 | ) | 30,422 | 1,920 | |||||||
| Operating lease liabilities, non-current | (9,412 | ) | (10,803 | ) | (5,383 | ) | |||||
| Other long-term liabilities | 5,377 | 6,007 | (83 | ) | |||||||
| Net cash provided by operating activities | 140,995 | 181,619 | 105,010 | ||||||||
| Cash flows from investing activities: | |||||||||||
| Acquisitions, net of cash acquired | (504,533 | ) | — | (1,644,575 | ) | ||||||
| Purchases of software and capitalized software development costs | (62,708 | ) | (51,500 | ) | (25,654 | ) | |||||
| Acquisition of intangible member assets | (65,465 | ) | (32,371 | ) | (9,134 | ) | |||||
| Purchases of property and equipment | (8,908 | ) | (13,093 | ) | (7,286 | ) | |||||
| Purchases of equity securities | — | — | (53,845 | ) | |||||||
| Proceeds from sale of equity securities | 2,367 | — | — | ||||||||
| Net cash used in investing activities | (639,247 | ) | (96,964 | ) | (1,740,494 | ) | |||||
| Cash flows from financing activities: | |||||||||||
| Principal payments on long-term debt | (1,003,125 | ) | (239,063 | ) | (7,813 | ) | |||||
| Proceeds from long-term debt | 950,000 | — | 1,250,000 | ||||||||
| Payment of debt issuance costs | (11,920 | ) | — | (30,504 | ) | ||||||
| Proceeds from follow-on equity offering, net of payments for offering costs | 456,640 | 286,779 | 458,495 | ||||||||
| Settlement of client-held funds obligation, net | (486 | ) | (3,862 | ) | (215,790 | ) | |||||
| Proceeds from exercise of common stock options | 9,754 | 8,568 | 11,347 | ||||||||
| Payment of contingent consideration | (6,000 | ) | — | — | |||||||
| Net cash provided by financing activities | 394,863 | 52,422 | 1,465,735 | ||||||||
| Increase (decrease) in cash and cash equivalents | (103,389 | ) | 137,077 | (169,749 | ) | ||||||
| Beginning cash and cash equivalents | 328,803 | 191,726 | 361,475 | ||||||||
| Ending cash and cash equivalents | $ | 225,414 | $ | 328,803 | $ | 191,726 | |||||
Consolidated statements of cash flows (unaudited) (continued)
| Year ended | ||||||||||
| (in thousands) | 2022 | 2021 | 2020 | |||||||
| Supplemental cash flow data: | ||||||||||
| Interest expense paid in cash | $ | 16,107 | $ | 27,686 | $ | 21,806 | ||||
| Income tax payments (refunds), net | (5,632 | ) | (6,022 | ) | 9,277 | |||||
| Supplemental disclosures of non-cash investing and financing activities: | ||||||||||
| Purchases of software and capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation | 4,640 | 1,930 | 1,742 | |||||||
| Purchases of property and equipment included in accounts payable or accrued liabilities | 1,414 | 160 | 487 | |||||||
| Purchases of intangible member assets included in accounts payable or accrued liabilities | 1,692 | — | — | |||||||
| Decrease in goodwill due to measurement period adjustments, net | 19 | 5,438 | — | |||||||
| Exercise of common stock options receivable | 470 | 1,478 | — | |||||||
| Equity-based acquisition consideration | — | — | 3,776 | |||||||
Stock-based compensation expense (unaudited)
Total stock-based compensation expense included in the consolidated statements of operations and comprehensive income (loss) is as follows:
| Three months ended | Year ended | ||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||
| Cost of revenue | $ | 2,711 | $ | 2,259 | $ | 11,258 | $ | 7,996 | |||
| Sales and marketing | 1,324 | 2,176 | 7,001 | 6,986 | |||||||
| Technology and development | 2,968 | 2,721 | 13,132 | 10,772 | |||||||
| General and administrative | 4,047 | 5,394 | 21,359 | 17,109 | |||||||
| Other expense, net | — | — | 342 | — | |||||||
| Total stock-based compensation expense | $ | 11,050 | $ | 12,550 | $ | 53,092 | $ | 42,863 | |||
Total Accounts (unaudited)
| (in thousands, except percentages) | % Change | |||||
| HSAs | 7,207 | 5,782 | 25 | % | ||
| New HSAs from sales - Quarter-to-date | 472 | 370 | 28 | % | ||
| New HSAs from sales - Year-to-date | 918 | 687 | 34 | % | ||
| New HSAs from acquisitions - Year-to-date | 740 | — | n/a | |||
| HSAs with investments | 455 | 333 | 37 | % | ||
| CDBs | 7,192 | 7,028 | 2 | % | ||
| Total Accounts | 14,399 | 12,810 | 12 | % | ||
| Average Total Accounts - Quarter-to-date | 14,326 | 12,659 | 13 | % | ||
| Average Total Accounts - Year-to-date | 13,450 | 12,604 | 7 | % | ||
HSA assets (unaudited)
| (in millions, except percentages) | % Change | |||||||
| HSA cash with yield (1) | $ | 12,934 | $ | 9,875 | 31 | % | ||
| HSA cash without yield (2) | 9 | 244 | (96 | )% | ||||
| Total HSA cash | 12,943 | 10,119 | 28 | % | ||||
| HSA investments with yield (1) | 6,668 | 4,078 | 64 | % | ||||
| HSA investments without yield (2) | 7 | 138 | (95 | )% | ||||
| Total HSA investments | 6,675 | 4,216 | 58 | % | ||||
| Total HSA Assets | 19,618 | 14,335 | 37 | % | ||||
| Average daily HSA cash with yield - Year-to-date | 10,465 | 8,599 | 22 | % | ||||
| Average daily HSA cash with yield - Quarter-to-date | $ | 12,084 | $ | 9,060 | 33 | % | ||
(1) HSA Assets that generate custodial revenue.
(2) HSA Assets that do not generate custodial revenue.
Client-held funds (unaudited)
| (in millions, except percentages) | % Change | |||||||
| Client-held funds (1) | $ | 897 | $ | 986 | (9 | )% | ||
| Average daily Client-held funds - Year-to-date (1) | 842 | 847 | (1 | )% | ||||
| Average daily Client-held funds - Quarter-to-date (1) | 822 | 848 | (3 | )% | ||||
(1) Client-held funds that generate custodial revenue.
Net income (loss) reconciliation to Adjusted EBITDA (unaudited)
| Three months ended | Year ended | ||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Net income (loss) | $ | (32,818 | ) | $ | 5,367 | $ | (44,289 | ) | $ | 8,834 | |||||
| Interest income | (82 | ) | (195 | ) | (1,501 | ) | (1,045 | ) | |||||||
| Interest expense | 10,748 | 6,771 | 36,572 | 34,881 | |||||||||||
| Income tax benefit | (10,947 | ) | (6,709 | ) | (22,452 | ) | (4,694 | ) | |||||||
| Depreciation and amortization | 15,778 | 11,259 | 54,397 | 39,839 | |||||||||||
| Amortization of acquired intangible assets | 23,046 | 19,159 | 82,791 | 76,064 | |||||||||||
| Stock-based compensation expense | 11,050 | 12,550 | 52,750 | 42,863 | |||||||||||
| Merger integration expenses | 26,383 | 14,662 | 64,805 | 45,990 | |||||||||||
| Acquisition costs (1) | 5,915 | 1,039 | 10,832 | 1,118 | |||||||||||
| Gain on equity securities | (15 | ) | — | (1,692 | ) | — | |||||||||
| Other (2) | 1,381 | (7,257 | ) | 3,802 | (3,055 | ) | |||||||||
| Adjusted EBITDA | $ | 50,439 | $ | 56,646 | $ | 236,015 | $ | 240,795 | |||||||
(1) For the fiscal year ended
(2) For the fiscal year ended
Reconciliation of net loss outlook to Adjusted EBITDA outlook (unaudited)
| Outlook for the year ending | |
| (in millions) | |
| Net loss | |
| Interest income | (2) |
| Interest expense | 42 |
| Income tax benefit | (20) - (18) |
| Depreciation and amortization | 64 |
| Amortization of acquired intangible assets | 102 |
| Stock-based compensation expense | 79 |
| Merger integration expenses | 31 |
| Costs associated with unused office space | 5 |
| Other | 5 |
| Adjusted EBITDA |
Reconciliation of net loss to non-GAAP net income (unaudited)
| Three months ended | Year ended | Outlook for the year ending | |||||||
| (in millions, except per share data) | |||||||||
| Net loss | $ | (33 | ) | $ | (44 | ) | |||
| Income tax benefit | (11 | ) | (23 | ) | (20) - (18) | ||||
| Loss before income taxes - GAAP | (44 | ) | (67 | ) | (81) - (71) | ||||
| Non-GAAP adjustments: | |||||||||
| Amortization of acquired intangible assets | 23 | 83 | 102 | ||||||
| Stock-based compensation expense | 11 | 53 | 79 | ||||||
| Merger integration expenses | 27 | 65 | 31 | ||||||
| Acquisition costs | 6 | 11 | — | ||||||
| Gain on equity securities | — | (2 | ) | — | |||||
| Loss on extinguishment of debt | — | 4 | — | ||||||
| Costs associated with unused office space | — | — | 5 | ||||||
| Total adjustments to loss before income taxes - GAAP | 67 | 214 | 217 | ||||||
| Income before income taxes - Non-GAAP | 23 | 147 | 136 - 146 | ||||||
| Income tax provision - Non-GAAP (1) | 6 | 37 | 34 - 36 | ||||||
| Non-GAAP net income | 17 | 110 | 102 - 110 | ||||||
| Diluted weighted-average shares | 84 | 83 | 84 | ||||||
| Non-GAAP net income per diluted share (2) | $ | 0.20 | $ | 1.33 | |||||
(1) The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.
(2) Non-GAAP net income per diluted share may not calculate due to rounding of non-GAAP net income and diluted weighted-average shares.
Certain terms
| Term | Definition |
| HSA | A financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis. |
| CDB | Consumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), Consolidated Omnibus Budget Reconciliation Act (“COBRA”) administration, commuter and other benefits. |
| HSA member | Consumers with HSAs that we serve. |
| Total HSA Assets | HSA members' deposits with our federally insured custodial depository partners and custodial cash placed in annuity contracts with our insurance company partners. Total HSA Assets also includes HSA members' investments in mutual funds through our custodial investment fund partner. |
| Client | Our employer clients. |
| Total Accounts | The sum of HSAs and CDBs on our platforms. |
| Client-held funds | Deposits held on behalf of our Clients to facilitate administration of our CDBs. |
| Network Partner | Our health plan partners, benefits administrators, and retirement plan recordkeepers. |
| Adjusted EBITDA | Adjusted earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and other certain non-operating items. |
| Non-GAAP net income | Calculated by adding back to GAAP net income (loss) before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, and losses on extinguishment of debt, costs associated with unused office space, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate. |
| Non-GAAP net income per diluted share | Calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding. |
2022 GlobeNewswire, Inc., source
