HealthEquity, Inc. (NASDAQ:HQY) Q4 2018 Earnings Conference Call Transcript
Mar 19, 2018 • 05:00 pm ET
Welcome to HealthEquity's Fourth Quarter and Fiscal Year End 2018 Earnings Conference Call. Please note that this event is being recorded. I would now like to turn the conference over to Richard Putnam, Investor Relations. Go ahead, Mr. Putnam.
Thank you, Valerie. Good afternoon and welcome to HealthEquity's 2018 fiscal year end earnings conference call. My name is Richard Putnam, Investor Relations for HealthEquity. And with me today, we have Jon Kessler, our President and CEO; Dr. Steve Neeleman, our Vice Chairman and Founder of the Company; and Darcy Mott, our Executive Vice President and CFO. Earlier today, we reported in a press release our fourth quarter and fiscal 2018 year end financial results, a copy of which can be accessed on our Investor Relations website at ir.healthequity.com. It's my duty to also let you know that our call today will include forward-looking statements, including predictions, expectations, estimates or other information that might be considered forward-looking. During today's discussion, we will present some important factors relating to our business, which could affect those forward-looking statements.
Forward-looking statements are subject to risk and uncertainties that may cause our actual results to differ materially from the statements made today. As a result, we caution you against placing undue reliance on these forward-looking statements. We encourage you to review the discussion of these factors and other risks that may affect our future results or the market price of our stock, detailed in our annual report on Form 10-K filed with the SEC on March 31, 2017, along with any subsequent periodic or current reports, including fiscal year's 2018 10-K that will be filed by the end of the month. We are not obligating ourselves to revise or update these forward-looking statements in light of new information or future events. With the introductions and preliminary cautions out of the way, I'll turn the call over to Mr. Jon Kessler.
Thanks. And thanks to everyone for joining us on today's call. I have a few prepared remarks about our operating results and then I will turn the call over to Steve to talk about sales and Darcy to discuss both financial results and guidance before we open up for questions.
So, a year ago at the beginning of fiscal 2018, we made two commitments to you. First, that we would outpace the market's growth and second that we would grow our bottom line faster than at the top line. HealthEquity made good on both of those commitments in fiscal 2018. We reported on growth in custodial assets and HSAs for the fiscal year 2018 last month, which were 35% growth in custodial assets, 24% growth in HSAs.
As Steve will discuss in a moment, according to independent sources, HealthEquity handily outpaced the market. The company saw revenue growth of 29% year-over-year in fiscal 2018 to $229.5 million. And revenue growth combined with scaling our business in turn resulted in adjusted EBITDA margin expansion.
Adjusted EBITDA grew 35% year-over-year in fiscal 2018 to $84.7 million. Adjusted EBITDA