HEALTHEQUITY, INC. ANNUAL REPORT
FY 2021
Connecting Health and Wealth
Copyright ©2021 HealthEquity, Inc. All rights reserved.
TO OUR SHAREHOLDERS
In Fiscal 2021, we transitioned quickly to remote work while still meeting the needs of our members, clients and partners. The work-from-home approach invigorated our focus like never before. This year revealed much about the character of Team Purple.
Our focus remains on meeting the needs of our members, clients and partners. That focus was rewarded as we welcomed nearly 1 million combined CDB and HSA new members, while still serving those whose employment or lives were impacted by the pandemic. The team's purple efforts and focus on service to our members, clients and partners led to more RFP opportunities, even while the broader market stalled. Our HSA members grew their HSA assets by 24 percent to $14.3 billion combined with 8 percent HSA member growth. This helped us to outpace the market according to Devenir's January market supplement that estimated 22 percent HSA asset growth and 6 percent HSA growth year over year.
Our sales and member services teams helped our partners and clients move quickly to a virtual open enrollment season, helping families, members, partners and clients better understand how HSAs and our CDB services can help them stretch tight resources further. This allowed us to have many more opportunities to meet our members where they are at on their journey to connecting health and wealth.
Despite COVID-related headwinds (including low interest rates, suspended commuter accounts, and an overall decline in healthcare spending), the team worked together to generate a record $734 million in revenue. Our business showed remarkable strength, delivering 33% Adjusted EBITDA margins even with the loss of high-margin commuter services, interchange, and custodial revenue.
Adversity doesn't build character- it reveals it.
-James Lane Allen
HealthEquity | Annual Report 2021 | Copyright ©2021 HealthEquity, Inc. All rights reserved. |
We begin fiscal 2022 well positioned to serve our members, clients and network partners even better. We are working hard to complete the WageWorks integration efforts. To date, we've completed 13 of the planned platform migrations and have realized more than $60 million in permanent run-rate synergies. We also launched our integrated platform with upgraded features to serve our members better and hope to have it rolled out to all of our clients and members by the end of this year.
We also want to help our employer clients return to work safely. We're thrilled with the acquisition of Luum, a technology platform for employee commute management, compliance and sustainability. We believe Luum reinforces our position as industry leader in the commuter space, enabling us to go beyond monthly transit to deliver the full spectrum of hybrid workplace solutions that our clients need to navigate
a post-COVID world.
The Luum acquisition is just one part of our larger commitment to sustainability and responsible corporate governance. For the complete picture, we invite our shareholders to read our inaugural Corporate Sustainability Report. It showcases how we apply our Purple principles toward solving global, social and environmental challenges. Although HealthEquity has prioritized sustainability for more than a decade, this is the first time we've formally documented our achievements and plans for continued progress.
The ongoing pandemic and associated economic fallout only reinforce the urgency of our mission to connect health and wealth. We believe Team Purple was resilient this past year and we are more confident than ever that we can deliver for our members, clients and partners.
We are grateful to our shareholders who support us in this mission.
Jon Kessler | Stephen D. Neeleman, M.D. |
President, Chief Executive Officer | Founder, Vice Chairman and Director |
and Director |
HealthEquity | Annual Report 2021 | Copyright ©2021 HealthEquity, Inc. All rights reserved. |
6,000 | HSAs | 5,782 | ||||
5,344 | ||||||
5,000 | ||||||
3,994 | ||||||
4,000 | 3,403 | |||||
3,000 | 2,746 | |||||
2,000 | ||||||
1,000 | ||||||
0 | ||||||
(thousands) FY17 | FY18 | FY19 | FY20 | FY21 | ||
15,000 | TOTAL ACCOUNTS | 12,781 | 12,810 | |||
12,000 | ||||||
9,000 | ||||||
6,000 | 4,566 | |||||
3,962 | ||||||
3,274 | ||||||
2,000 | ||||||
0 | ||||||
(thousands) FY17 | FY18 | FY19 | FY20 | FY21 | ||
800 | REVENUE | $733.6 | ||||
700 | ||||||
600 | $532.0 | |||||
500 | ||||||
400 | ||||||
300 | $287.2 | |||||
$229.5 | ||||||
200 | $178.4 | |||||
100 | ||||||
0 | FY17 | FY18 | FY19 | FY20 | FY21 | |
(millions) |
15,000 | HSA ASSETS | $14,335 | ||||
$11,541 | ||||||
12,000 | ||||||
9,000 | $8,098 | |||||
$6,778 | ||||||
6,000 | $5,039 | |||||
2,000 | ||||||
0 | ||||||
(millions) | FY17 | FY18 | FY19 | FY20 | FY21 |
100,000
Clients
10,000
Registered Benefits Advisors
174
Network Parters
250 | ADJUSTED EBITDA | $240.8 | ||||
$196.5 | ||||||
200 | ||||||
150 | ||||||
$118.4 | ||||||
100 | $84.7 | |||||
$62.8 | ||||||
50 | ||||||
0 | ||||||
(millions) | FY17 | FY18 | FY19 | FY20 | FY21 |
HealthEquity | Annual Report 2021 | Copyright ©2021 HealthEquity, Inc. All rights reserved. |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
- ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2021
OR
- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from | to | |||
Commission File Number: 001-36568 | ||||
HEALTHEQUITY, INC. | ||||
(Exact name as specified in its charter) | ||||
Delaware | 7389 | 52-2383166 | ||
(State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer | ||
incorporation or organization) | Classification Code Number) | Identification Number) |
15 West Scenic Pointe Drive
Suite 100
Draper, Utah 84020
(801) 727-1000
(Address, including Zip Code, and Telephone Number, including Area Code, of Registrant's Principal Executive Offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol | Name of each exchange on which registered | ||
Common stock, par value $0.0001 per share | HQY | The NASDAQ Global Select Market |
Securities registered pursuant to Section 12(g) of the Act:
None.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant on July 31, 2020, based on the closing price of $51.56 for shares of the registrant's common stock as reported by the NASDAQ Global Select Market was approximately $3.9 billion. For purposes of determining whether a stockholder was an affiliate of the registrant at July 31, 2020, the registrant assumed that a stockholder was an affiliate of the registrant at July 31, 2020 if such stockholder (i) beneficially owned 10% or more of the registrant's capital stock, as determined based on public filings, and/or (ii) was an executive officer or director, or was affiliated with an executive officer or director of the registrant, at July 31, 2020. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
As of March 22, 2021, there were 83,017,352 shares of the registrant's common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's definitive proxy statement related to its 2021 annual meeting of stockholders (the "2021 Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2021 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
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HealthEquity Inc. published this content on 15 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 21:22:02 UTC.
