HealthEquity, Inc. (NASDAQ:HQY) Q1 2019 Earnings Conference Call - Preliminary Transcript

Jun 04, 2018 • 05:00 pm ET

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HealthEquity, Inc. (NASDAQ:HQY) Q1 2019 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Welcome to HealthEquity's First Quarter 2019 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.

Executive
Richard Putnam

Thank you, Mark. Good afternoon to everyone. Welcome to HealthEquity's first quarter earnings conference call. With me today, we have Jon Kessler, President and CEO, Dr. Steve Neeleman, our Founder and Vice Chair of the Company, Darcy Mott, our Executive Vice President and CFO, and Bill Otten, our Executive Vice President of Sales.

Before I turn the call over to Jon, I would like to remind those participating with us that there is a copy of today's earnings release and accompanying financial information posted on our investor relations website at ir.healthequity.com. We also refer to you the usual Safe Harbor statements concerning the forward-looking statements included in today's earnings release and that will also be made on this conference call with you. They include predictions, expectations, estimates and other information that might be considered forward-looking.

Throughout today's discussion, we will present some important factors relating to our business, which could affect those forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from 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 28, 2018 along with any other subsequent periodic or current reports filed with the SEC.

We are not obligating ourselves to revise or update these forward-looking statements in light of new information or future events.

With that out of out of the way, I will turn the call over to Mr. Jon Kessler.

Executive
Jon Kessler

Thank you, Richard. Well done and thank you everyone for joining us on this beautiful late spring afternoon for a discussion of the results of our fiscal first quarter of 2019.

Q1 marks the beginning of a new annual sales cycle and that is going to be the focus of our prepared remarks. I will speak to Q1 operating results against our key performance metrics, Darcy will provide a more detailed review of our financial results and guidance, and in between the two of us, Bill Otten, HealthEquity's Executive Vice President of Sales will describe some of the things we are doing to keep our commitment to outpace market growth this year and into the future.

Steve Neeleman is here and will join us during the Q&A following our prepared remarks.

Looking first to the four key metrics that drive our business, HealthEquity continued the trend of outperformance on year-over-year measures of profitability and custodial assets on top of robust revenue and HSA member growth. Revenues of $69.9 million were up 26% year-over-year, adjusted EBITDA of $29.6 million was up an even larger