HealthEquity (HQY) 10-Q 11 Jun 15 2016 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Apr. 30, 2015	31-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	HEALTHEQUITY INC
Entity Central Index Key	1428336
Current Fiscal Year End Date	-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	30-Apr-15
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		56,722,533

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Apr. 30, 2015	Jan. 31, 2015
In Thousands, unless otherwise specified
Current assets
Cash and cash equivalents	$74,861	$111,005
Marketable securities, at fair value	40,040	0
Total cash, cash equivalents and marketable securities	114,901	111,005
Accounts receivable, net of allowance for doubtful accounts of $39 as of April 30, 2015 and $40 as of January 31, 2015	10,479	9,054
Inventories	667	625
Deferred tax asset	1,464	1,764
Prepaid expenses	2,761	2,271
Total current assets	130,272	124,719
Property and equipment, net	3,079	2,577
Intangible assets, net	26,618	26,541
Goodwill	4,651	4,651
Other assets	662	281
Total assets	165,282	158,769
Current liabilities
Accounts payable	990	1,303
Accrued compensation	2,041	5,301
Accrued liabilities	2,153	2,227
Total liabilities	5,184	8,831
Long-term liabilities
Other long-term liability	477	488
Deferred tax liability	5,053	5,355
Total long-term liabilities	5,530	5,843
Total liabilities	10,714	14,674
Commitments and contingencies (see note 5)
Total stockholders’ equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of April 30, 2015 and January 31, 2015, respectively	0	0
Common stock, $0.0001 par value, 900,000 shares authorized, 55,308 and 54,802 shares issued and outstanding as of April 30, 2015 and January 31, 2015, respectively	6	5
Additional paid-in capital	162,611	157,094
Accumulated other comprehensive loss	-22	0
Accumulated deficit	-8,027	-13,004
Total stockholders’ equity	154,568	144,095
Total liabilities and stockholders’ equity	$165,282	$158,769

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Phantom) (USD $)	Apr. 30, 2015	Jan. 31, 2015
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$39	$40
Preferred Stock, Par or Stated Value Per Share (usd per share)	$0.00	$0.00
Preferred Stock, Shares Authorized	100,000,000	100,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share (usd per share)	$0.00	$0.00
Common Stock, Shares Authorized	900,000,000	900,000,000
Common Stock, Shares, Issued	55,308,000	54,754,000
Common Stock, Shares, Outstanding	55,308,000	54,754,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Operations And Comprehensive Income (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Revenue:
Account fee revenue	$14,397	$10,388
Custodial fee revenue	8,419	5,427
Card fee revenue	6,817	4,298
Other revenue	217	118
Total revenue	29,850	20,231
Cost of services:
Account costs	8,389	6,428
Custodial costs	1,423	938
Card costs	2,102	1,405
Other costs	30	1
Total cost of services	11,944	8,772
Gross profit	17,906	11,459
Operating expenses:
Sales and marketing	2,833	2,233
Technology and development	3,524	2,186
General and administrative	3,158	1,143
Amortization of acquired intangible assets	409	409
Total operating expenses	9,924	5,971
Income from operations	7,982	5,488
Other expense:
Loss on revaluation of redeemable convertible preferred stock derivative	0	-735
Other expense, net	-105	-92
Total other expense	-105	-827
Income before income taxes	7,877	4,661
Income tax provision	2,900	1,943
Net income	4,977	2,718
Net income attributable to common stockholders:
Basic (in dollars)	4,977	3,849
Diluted (in dollars)	4,977	3,453
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$0.09	$0.52
Diluted (in dollars per share)	$0.09	$0.08
Weighted-average number of shares used in computing net income per share attributable to common stockholders
Basic (in shares)	55,063	7,367
Diluted (in shares)	57,770	43,736
Comprehensive income:
Net income	4,977	2,718
Other comprehensive loss:
Unrealized loss on available-for-sale marketable securities, net of tax	-22	0
Comprehensive income	$4,955	$2,718

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Cash flows from operating activities:
Net income	$4,977	$2,718
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,750	1,251
Loss on revaluation of redeemable convertible preferred stock derivative	0	735
Deferred taxes	-2	952
Stock-based compensation	1,094	65
Changes in operating assets and liabilities:
Accounts receivable	-1,425	-345
Inventories	-42	-5
Prepaid expenses	-871	-180
Accounts payable	-340	-1,620
Accrued compensation	-3,260	-2,368
Accrued liabilities	-99	-572
Income taxes payable	0	803
Deferred rent	-11	29
Net cash provided by operating activities	1,771	1,463
Cash flows from investing activities:
Purchases of marketable securities	-40,062	0
Purchase of property and equipment	-826	-480
Purchase of software and capitalized software development costs	-1,451	-1,712
Net cash used in investing activities	-42,339	-2,192
Cash flows from financing activities:
Proceeds from exercise of common stock options	493	251
Proceeds from exercise of common stock warrants	0	397
Tax benefit from exercise of common stock options	3,931	154
Net cash provided by financing activities	4,424	802
(Decrease) increase in cash and cash equivalents	-36,144	73
Beginning cash and cash equivalents	111,005	13,917
Ending cash and cash equivalents	74,861	13,990
Supplemental disclosures of non-cash investing and financing activities:
Common stock warrants exercised	0	75
Series D-3 redeemable convertible preferred stock dividend	$0	$169

Summary_of_business_and_signif

Summary of business and significant accounting policies	3 Months Ended
	Apr. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of business and significant accounting policies	HealthEquity, Inc. was incorporated in the state of Delaware on September 18, 2002, and was organized to offer a full range of innovative solutions for managing health care accounts (Health Savings Accounts, Health Reimbursement Arrangements, and Flexible Spending Accounts) for health plans, insurance companies, and third-party administrators.
	Principles of consolidation—The condensed consolidated financial statements include the accounts of HealthEquity, Inc. and its wholly owned subsidiaries, HEQ Insurance Services, Inc., and HealthEquity Advisors, LLC (collectively referred to as the "Company"). During the year ended January 31, 2015, the Company and an unrelated company formed a partnership for the management of early stage companies in the healthcare industry. The Company has a 22% ownership interest in such partnership accounted for using the equity method of accounting. The investment was approximately $281,000 as of April 30, 2015 and is included in other assets on the accompanying condensed consolidated balance sheet. All significant intercompany balances and transactions have been eliminated.
	Basis of presentation—The accompanying condensed consolidated financial statements as of April 30, 2015 and for the three months ended April 30, 2015 and 2014 are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K. The fiscal year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.
	Marketable securities—Marketable securities consist primarily of mutual funds invested in corporate bonds, U.S. government agency securities, U.S. treasury bills, commercial paper, certificates of deposit, municipal notes, and bonds with original maturities beyond three months at the time of purchase. Marketable securities are classified as available-for-sale, held-to-maturity, or trading at the date of purchase and such classification is reevaluated as of each balance sheet date. As of April 30, 2015, all marketable securities have been classified as available-for-sale. The Company may sell these securities at any time for use in current operations or for other purposes even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including securities with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income. The Company evaluates its marketable securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. The Company considers impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely it will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other expense, net in the condensed consolidated statements of operations and comprehensive income.
	Recent accounting pronouncements—On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for our annual and interim reporting periods beginning February 1, 2017 (although the FASB is considering a deferral of the effective date). Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on the consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor determined the effect of the standard on the ongoing financial reporting.

Net_income_per_share_attributa

Net income per share attributable to common stockholders	3 Months Ended
	Apr. 30, 2015
Earnings Per Share [Abstract]
Net income per share attributable to common stockholders	The Company computed net income per share of common stock in conformity with the two-class method required for participating securities for the three months ended April 30, 2014. Prior to their conversion to common stock, the Company considered its series D-3 redeemable convertible preferred stock to be participating securities as the holders of the preferred stock were entitled to receive a dividend in the event that a dividend was paid on common stock. The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders:
	(in thousands, except per share data)	Three months ended April 30,
		2015		2014
	Numerator (basic and diluted):
	Net income	$	4,977	$	2,718
	Add back: accretion of redeemable convertible preferred stock	—		4,021
	Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock	—		(632		)
	Less: undistributed income attributed to redeemable convertible preferred stockholders	—		(2,258		)
	Net income attributable to common stockholders for basic earnings per share	$	4,977	$	3,849
	Add back: dividend of redeemable convertible preferred stock	—		632
	Less: accretion on redeemable convertible preferred stock and dividend on convertible preferred stock	—		(4,021		)
	Add back: series D-3 derivative liability revaluations	—		735
	Add back: adjustment to undistributed income attributed to redeemable convertible preferred stockholders	—		2,258
	Net income attributable to common stockholders for diluted earnings per share	$	4,977	$	3,453
	Denominator (basic):
	Weighted-average common shares outstanding	55,063		7,367
	Denominator (diluted):
	Weighted-average common shares outstanding	55,063		7,367
	Effect of potential dilutive securities:
	Weighted-average dilutive effect of stock options	2,707		1,782
	Weighted-average dilutive effect of common shares from stock warrants	—		2,119
	Dilutive effect from preferred stock assuming conversion	—		32,468
	Weighted-average common shares outstanding	57,770		43,736
	Net income per share attributable to common stockholders:
	Basic	$	0.09	$	0.52
	Diluted	$	0.09	$	0.08
	For the three months ended April 30, 2015 and 2014, approximately 679,000 and 145,000 shares, respectively, attributable to stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive.

Property_and_equipment

Property and equipment	3 Months Ended
	Apr. 30, 2015
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment consisted of the following as of April 30, 2015 and January 31, 2015:
	(in thousands)	30-Apr-15			31-Jan-15
	Leasehold improvements	$	506		$	506
	Furniture and fixtures	1,531			1,317
	Computer equipment	4,625			4,013
	Property and equipment, gross	6,662			5,836
	Accumulated depreciation	(3,583		)	(3,259		)
	Property and equipment, net	$	3,079		$	2,577
	Depreciation expense for the three months ended April 30, 2015 and 2014 was $324,000 and $239,000, respectively.

Intangible_assets_and_goodwill

Intangible assets and goodwill	3 Months Ended
	Apr. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets and goodwill	During the three months ended April 30, 2015 and 2014, the Company capitalized software development costs of $1.2 million and $1.1 million, respectively, related to significant enhancements and upgrades to its proprietary system.
	The gross carrying amount and associated accumulated amortization of intangible assets were as follows as of April 30, 2015 and January 31, 2015:
	(in thousands)	30-Apr-15			31-Jan-15
	Amortized intangible assets:
	Capitalized software development costs	$	11,670		$	10,468
	Software	4,996			4,695
	Acquired intangible member assets	24,563			24,563
	Intangible assets, gross	41,229			39,726
	Accumulated amortization	(14,611		)	(13,185		)
	Intangible assets, net	$	26,618		$	26,541
	During the three months ended April 30, 2015 and 2014, the Company incurred and expensed a total of $1.7 million and $789,000, respectively, in software development costs primarily related to the post-implementation and operation stages of its proprietary software.
	Amortization expense for the three months ended April 30, 2015 and 2014 was $1.4 million and $1.0 million, respectively.
	There were no changes to the goodwill carrying value during the three months ended April 30, 2015 and 2014.

Commitment_and_contingencies

Commitment and contingencies	3 Months Ended
	Apr. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	The Company’s principal commitments and contingencies consist of a processing services agreement with a vendor, and obligations for office space, data storage facilities, equipment and certain maintenance agreements under long-term, non-cancelable operating leases. These commitments as of January 31, 2015 are disclosed in the Company’s consolidated financial statements included in its Annual Report on Form 10-K, and did not change materially during the three months ended April 30, 2015.
	Lease expense for office space for the three months ended April 30, 2015 and 2014 was $464,000 and $276,000, respectively. Expense for other lease agreements for the three months ended April 30, 2015 and 2014 was $60,000 and $53,000, respectively.

Income_taxes

Income taxes	3 Months Ended
	Apr. 30, 2015
Income Tax Disclosure [Abstract]
Income taxes	The Company follows FASB Accounting Standards Codification 740-270, Income Taxes - Interim Reporting, for the computation and presentation of its interim period tax provision. Accordingly, management estimated the effective annual tax rate and applied this rate to the year-to-date pre-tax book income to determine the interim provision for income taxes. For the three months ended April 30, 2015, the Company recorded a provision for income taxes of $2.9 million. The resulting effective tax rate was 36.8%, compared with an effective tax rate of 41.7% for the three months ended April 30, 2014. For the three months ended April 30, 2015, discrete tax items were not significant. For the three months ended April 30, 2014, the net impact of discrete tax items caused a 1.7% increase to the effective tax rate primarily due to changes in tax rates on the Company's deferred tax assets and liabilities. The decrease in the effective tax rate from the same period last year is primarily due to a decrease in unfavorable permanent tax items in relation to income before income taxes and an increase in state research and development tax credits. The federal research and development tax credit expired as of December 31, 2014.
	As of April 30, 2015 and January 31, 2015, the Company’s total gross unrecognized tax benefit was $332,000 and $300,000, respectively. As a result of Accounting Standards Update No. 2013-11, certain unrecognized tax benefits have been netted against their related deferred tax assets. As a result, the unrecognized tax benefit recorded as of April 30, 2015 and January 31, 2015 remains unchanged at $20,000. If recognized, $250,000 of the total gross unrecognized tax benefits would affect the Company's effective tax rate as of April 30, 2015. The Company anticipates a decrease of $20,000 in total gross unrecognized tax benefits within 12 months of the reporting date related to uncertain tax positions on research and development credits claimed and the untimely filing of certain elections for which a lapse of the applicable statute of limitations is expected.
	The Company files income tax returns with U.S. federal and state taxing jurisdictions and is not currently under examination with any jurisdiction. The Company remains subject to examination by federal and various state taxing jurisdictions for tax years after 2003.

Stock_options

Stock options	3 Months Ended
	Apr. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options	Stock option activity under the Company's equity incentive plans is as follows:
		Outstanding stock options
	(in thousands, except for exercise prices and term)	Number of		Range of		Weighted-		Weighted-	Aggregate
		options		exercise		average		average	intrinsic
				prices		exercise		contractual	value
						price		term
								(in years)
	Outstanding as of January 31, 2015	6,457		$0.10 - 25.45		$	5.27	6.88	$	100,290
	Granted	581		25.39		$	25.39
	Exercised	(506	)	$0.10 - 3.50		$	0.97
	Forfeited	(16	)	$0.80 - 25.45		$	13.74
	Outstanding as of April 30, 2015	6,516		$0.10 - 25.45		$	7.37	7.06	$	122,734
	Vested and expected to vest as of April 30, 2015	6,270				$	7.04	6.97	$	120,166
	Exercisable as of April 30, 2015	3,589				$	1.1	5.31	$	90,098
	The aggregate intrinsic value in the tables above represents the difference between the estimated fair value of common stock and the exercise price of outstanding, in-the-money stock options.
	There were no stock options granted during the three months ended April 30, 2014. The key input assumptions that were utilized in the valuation of the stock options granted during the three months ended April 30, 2015 are as follows:
	Expected dividend yield	—	%
	Expected stock price volatility	40.3	%
	Risk-free interest rate	1.47% - 1.64%
	Expected life of options	5.43 - 6.25 years
	The determination of the fair value of stock options on the date of grant using an option pricing model is affected by the Company's stock price as well as assumptions regarding a number of complex and subjective variables. Expected volatility is determined using weighted average volatility of publicly traded peer companies. The Company expects that it will begin using its own historical volatility in addition to the volatility of publicly traded peer companies, as its share price grows over time. The risk-free interest rate is determined by using published zero coupon rates on treasury notes for each grant date given the expected term on the options. The dividend yield of zero is based on the fact that the Company expects to invest cash in operations. The Company uses the "simplified" method to estimate expected term as determined under Staff Accounting Bulletin No. 110 due to the lack of option exercise history as a public company.
	As of April 30, 2015, the weighted-average vesting period of non-vested awards expected to vest approximates 2.9 years; the amount of compensation expense the Company expects to recognize for stock options vesting in future periods approximates $14.3 million.
	The following table shows a summary of stock-based compensation in the Company's consolidated statements of operations and comprehensive income during the periods presented:
		Three months ended April 30,
	(in thousands)	2015			2014
	Cost of services	$	228		$	19
	Sales and marketing	228			2
	Technology and development	150			32
	General and administrative	488			12
	Total stock-based compensation expense	$	1,094		$	65

Cash_cash_equivalents_and_mark

Cash, cash equivalents and marketable securities	3 Months Ended
	Apr. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Cash, cash equivalents and marketable securities	Cash, cash equivalents and marketable securities as of April 30, 2015 consisted of the following:
	(in thousands)	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
	Cash and cash equivalents	$	74,861	$	—	$	—		$	74,861
	Marketable securities:
	Mutual funds	40,062		—		(22		)	40,040
	Total cash, cash equivalents and marketable securities	$	114,923	$	—	$	(22	)	$	114,901
	Cash, cash equivalents and marketable securities as of January 31, 2015 consisted of the following:
	(in thousands)	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
	Cash and cash equivalents	$	111,005	$	—	$	—		$	111,005
	Marketable securities:
	Mutual funds	—		—		—			—
	Total cash, cash equivalents and marketable securities	$	111,005	$	—	$	—		$	111,005
	The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of April 30, 2015:
	(in thousands)	Cost basis		Fair value
	One year or less	$	25,027	$	25,022
	Over one year and less than five years	15,035		15,018
	Total	$	40,062	$	40,040
	As of April 30, 2015, there were no marketable securities that were other-than-temporarily impaired or in an unrealized loss position for more than twelve consecutive months.

Fair_value

Fair value	3 Months Ended
	Apr. 30, 2015
Fair Value Disclosures [Abstract]
Fair value	Fair value measurements—Fair value measurements are made at a specific point in time, based on relevant market information. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy:
	•	Level 1—quoted prices in active markets for identical assets or liabilities;
	•	Level 2—inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;
	•	Level 3—unobservable inputs based on the Company’s own assumptions.
	Level 1 instruments are valued based on publicly available daily net asset values. Level 1 instruments consist primarily of highly liquid mutual funds.
	The following table summarizes the assets measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value:
			April 30, 2015
	(in thousands)		Level 1		Level 2			Level 3
	Marketable securities:
	Mutual funds		$	40,040	$	—		$	—
	A derivative liability was recorded related to the Company’s series D-3 redeemable convertible preferred stock due to stated features allowing for redemption equal to the greater of the fair value per share of series D-3 redeemable convertible preferred stock, or the liquidation preference per share of series D-3 redeemable convertible preferred stock. The derivative instrument was recorded at its fair value, using an option pricing model, and was adjusted to fair value as of the end of each reporting period. Changes in the fair value of derivative instruments are recognized currently in the condensed consolidated financial statements. The Company had classified this derivative financial instrument as Level 3 in the fair value hierarchy. The Company continued to record adjustments to the fair value of the derivative liability until March 31, 2014, at which time the Company modified the terms of the series D-3 redeemable convertible preferred stock. As a result of the modifications, the Company reclassified the aggregate fair value of the liability to additional paid-in capital.
	The following table includes a roll forward of the amounts for the three months ended April 30, 2015 and 2014 for instruments classified within Level 3. The classification within Level 3 is based upon significance of the unobservable inputs to the overall fair value measurement.
			Three months ended April 30,
	(in thousands)		2015		2014
	Balance at beginning of period		$	—	$	6,182
	Loss on revaluation		—		735
	Elimination of liability due to removal of FMV provision		—		(6,917		)
	Balance at end of period		$	—	$	—

Related_party_transactions

Related party transactions	3 Months Ended
	Apr. 30, 2015
Related Party Transactions [Abstract]
Related party transactions	The Company had entered into a consulting agreement with a company owned by the President and Chief Executive Officer of the Company. In connection with the consummation of the Company's IPO in July 2014, this consulting agreement was terminated and as such no amounts were paid to this company for the three months ended April 30, 2015. The amount paid to this company under the terms of the consulting agreement was $81,000 for the three months ended April 30, 2014.

Subsequent_events

Subsequent events	3 Months Ended
	Apr. 30, 2015
Subsequent Events [Abstract]
Subsequent events	On May 11, 2015, the Company closed its follow-on public offering and sold 972,500 shares of common stock at a public offering price of $25.90 per share, less the underwriters' discount. Certain selling stockholders sold 3,455,000 shares of common stock in the offering, including 380,000 shares of common stock which were issued upon the exercise of outstanding options. The Company received net proceeds of approximately $23.5 million after deducting underwriting discounts and commissions of approximately $1.0 million and other offering expenses payable by the Company of approximately $719,000. The Company did not receive any proceeds from the sale of shares by the selling stockholders other than $222,000 representing the exercise price of the options that were exercised in connection with the offering.
	On May 15, 2015, the Company entered into a lease agreement to expand its headquarters in Draper, Utah. The lease provides for a new landlord to construct a building at its cost and to use reasonable efforts to substantially complete the building by July 2016. The lease will commence upon the substantial completion and delivery of the building to the Company and has an initial term of 129 months thereafter, with a Company option to extend the lease for two additional five year periods. The Company will be responsible for payment of taxes and operating expenses for the building, in addition to an annual base rent in the initial amount of approximately $1.0 million, with 2.5% annual increases. In conjunction with the aforementioned lease, the Company entered into an amended and restated lease agreement for its existing office space at its headquarters in Draper, Utah. The lease will commence immediately after the new landlord acquires the property and has an initial term of 129 months thereafter, with a Company option to extend the lease for two additional five year periods. The Company will be responsible for payment of taxes and operating expenses for the building, in addition to an annual base rent in the initial amount of approximately $1.6 million, with 2.5% annual increases. In the event the new landlord does not acquire the property on or before July 31, 2015, the amended and restated lease may be terminated by either the Company or the new landlord.

Summary_of_business_and_signif1

Summary of business and significant accounting policies (Policies)	3 Months Ended
	Apr. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of consolidation	Principles of consolidation—The condensed consolidated financial statements include the accounts of HealthEquity, Inc. and its wholly owned subsidiaries, HEQ Insurance Services, Inc., and HealthEquity Advisors, LLC (collectively referred to as the "Company"). During the year ended January 31, 2015, the Company and an unrelated company formed a partnership for the management of early stage companies in the healthcare industry. The Company has a 22% ownership interest in such partnership accounted for using the equity method of accounting. The investment was approximately $281,000 as of April 30, 2015 and is included in other assets on the accompanying condensed consolidated balance sheet. All significant intercompany balances and transactions have been eliminated.
Marketable securities	Marketable securities—Marketable securities consist primarily of mutual funds invested in corporate bonds, U.S. government agency securities, U.S. treasury bills, commercial paper, certificates of deposit, municipal notes, and bonds with original maturities beyond three months at the time of purchase. Marketable securities are classified as available-for-sale, held-to-maturity, or trading at the date of purchase and such classification is reevaluated as of each balance sheet date. As of April 30, 2015, all marketable securities have been classified as available-for-sale. The Company may sell these securities at any time for use in current operations or for other purposes even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including securities with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income. The Company evaluates its marketable securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. The Company considers impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely it will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other expense, net in the condensed consolidated statements of operations and comprehensive income.
Recent accounting pronouncements	Recent accounting pronouncements—On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for our annual and interim reporting periods beginning February 1, 2017 (although the FASB is considering a deferral of the effective date). Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on the consolidated financial statements and related disclosures

Net_income_per_share_attributa1

Net income per share attributable to common stockholders (Tables)	3 Months Ended
	Apr. 30, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders:
	(in thousands, except per share data)	Three months ended April 30,
		2015		2014
	Numerator (basic and diluted):
	Net income	$	4,977	$	2,718
	Add back: accretion of redeemable convertible preferred stock	—		4,021
	Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock	—		(632		)
	Less: undistributed income attributed to redeemable convertible preferred stockholders	—		(2,258		)
	Net income attributable to common stockholders for basic earnings per share	$	4,977	$	3,849
	Add back: dividend of redeemable convertible preferred stock	—		632
	Less: accretion on redeemable convertible preferred stock and dividend on convertible preferred stock	—		(4,021		)
	Add back: series D-3 derivative liability revaluations	—		735
	Add back: adjustment to undistributed income attributed to redeemable convertible preferred stockholders	—		2,258
	Net income attributable to common stockholders for diluted earnings per share	$	4,977	$	3,453
	Denominator (basic):
	Weighted-average common shares outstanding	55,063		7,367
	Denominator (diluted):
	Weighted-average common shares outstanding	55,063		7,367
	Effect of potential dilutive securities:
	Weighted-average dilutive effect of stock options	2,707		1,782
	Weighted-average dilutive effect of common shares from stock warrants	—		2,119
	Dilutive effect from preferred stock assuming conversion	—		32,468
	Weighted-average common shares outstanding	57,770		43,736
	Net income per share attributable to common stockholders:
	Basic	$	0.09	$	0.52
	Diluted	$	0.09	$	0.08

Property_and_equipment_Tables

Property and equipment (Tables)	3 Months Ended
	Apr. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment consisted of the following as of April 30, 2015 and January 31, 2015:
	(in thousands)	30-Apr-15			31-Jan-15
	Leasehold improvements	$	506		$	506
	Furniture and fixtures	1,531			1,317
	Computer equipment	4,625			4,013
	Property and equipment, gross	6,662			5,836
	Accumulated depreciation	(3,583		)	(3,259		)
	Property and equipment, net	$	3,079		$	2,577

Intangible_assets_and_goodwill1

Intangible assets and goodwill (Tables)	3 Months Ended
	Apr. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The gross carrying amount and associated accumulated amortization of intangible assets were as follows as of April 30, 2015 and January 31, 2015:
	(in thousands)	30-Apr-15			31-Jan-15
	Amortized intangible assets:
	Capitalized software development costs	$	11,670		$	10,468
	Software	4,996			4,695
	Acquired intangible member assets	24,563			24,563
	Intangible assets, gross	41,229			39,726
	Accumulated amortization	(14,611		)	(13,185		)
	Intangible assets, net	$	26,618		$	26,541

Stock_options_Tables

Stock options (Tables)	3 Months Ended
	Apr. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock options	Stock option activity under the Company's equity incentive plans is as follows:
		Outstanding stock options
	(in thousands, except for exercise prices and term)	Number of		Range of		Weighted-		Weighted-	Aggregate
		options		exercise		average		average	intrinsic
				prices		exercise		contractual	value
						price		term
								(in years)
	Outstanding as of January 31, 2015	6,457		$0.10 - 25.45		$	5.27	6.88	$	100,290
	Granted	581		25.39		$	25.39
	Exercised	(506	)	$0.10 - 3.50		$	0.97
	Forfeited	(16	)	$0.80 - 25.45		$	13.74
	Outstanding as of April 30, 2015	6,516		$0.10 - 25.45		$	7.37	7.06	$	122,734
	Vested and expected to vest as of April 30, 2015	6,270				$	7.04	6.97	$	120,166
	Exercisable as of April 30, 2015	3,589				$	1.1	5.31	$	90,098
Summary of Assumptions	The key input assumptions that were utilized in the valuation of the stock options granted during the three months ended April 30, 2015 are as follows:
	Expected dividend yield	—	%
	Expected stock price volatility	40.3	%
	Risk-free interest rate	1.47% - 1.64%
	Expected life of options	5.43 - 6.25 years
Summary of share based compensation recognized	The following table shows a summary of stock-based compensation in the Company's consolidated statements of operations and comprehensive income during the periods presented:
		Three months ended April 30,
	(in thousands)	2015			2014
	Cost of services	$	228		$	19
	Sales and marketing	228			2
	Technology and development	150			32
	General and administrative	488			12
	Total stock-based compensation expense	$	1,094		$	65

Cash_cash_equivalents_and_mark1

Cash, cash equivalents and marketable securities (Tables)	3 Months Ended
	Apr. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities	Cash, cash equivalents and marketable securities as of April 30, 2015 consisted of the following:
	(in thousands)	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
	Cash and cash equivalents	$	74,861	$	—	$	—		$	74,861
	Marketable securities:
	Mutual funds	40,062		—		(22		)	40,040
	Total cash, cash equivalents and marketable securities	$	114,923	$	—	$	(22	)	$	114,901
	Cash, cash equivalents and marketable securities as of January 31, 2015 consisted of the following:
	(in thousands)	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
	Cash and cash equivalents	$	111,005	$	—	$	—		$	111,005
	Marketable securities:
	Mutual funds	—		—		—			—
	Total cash, cash equivalents and marketable securities	$	111,005	$	—	$	—		$	111,005
Investments Classified by Contractual Maturity Date	The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of April 30, 2015:
	(in thousands)	Cost basis		Fair value
	One year or less	$	25,027	$	25,022
	Over one year and less than five years	15,035		15,018
	Total	$	40,062	$	40,040

Fair_value_Tables

Fair value (Tables)	3 Months Ended
	Apr. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring	The following table summarizes the assets measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value:
		April 30, 2015
	(in thousands)	Level 1		Level 2			Level 3
	Marketable securities:
	Mutual funds	$	40,040	$	—		$	—
Schedule of Roll-forward of the amounts for instruments classified with Level 3	The following table includes a roll forward of the amounts for the three months ended April 30, 2015 and 2014 for instruments classified within Level 3. The classification within Level 3 is based upon significance of the unobservable inputs to the overall fair value measurement.
		Three months ended April 30,
	(in thousands)	2015		2014
	Balance at beginning of period	$	—	$	6,182
	Loss on revaluation	—		735
	Elimination of liability due to removal of FMV provision	—		(6,917		)
	Balance at end of period	$	—	$	—

Summary_of_business_and_signif2

Summary of business and significant accounting policies (Details) (Healthbox Inc. [Member], USD $)	Apr. 30, 2015	Jan. 31, 2015
In Thousands, unless otherwise specified
Healthbox Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage		22.00%
Equity method investments	$281

Net_income_per_share_attributa2

Net income per share attributable to common stockholders (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Earnings Per Share [Abstract]
Net income	$4,977	$2,718
Add back: accretion of redeemable convertible preferred stock	0	4,021
Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock	0	-632
Less: undistributed income attributed to redeemable convertible preferred stockholders	0	-2,258
Net income attributable to common stockholders for basic earnings per share	4,977	3,849
Add back: dividend of redeemable convertible preferred stock	0	632
Less: accretion on redeemable convertible preferred stock and dividend on convertible preferred stock	0	-4,021
Add back: series D-3 derivative liability revaluations	0	735
Add back: adjustment to undistributed income attributed to redeemable convertible preferred stockholders	0	2,258
Net income attributable to common stockholders for diluted earnings per share	$4,977	$3,453
Weighted-average common shares outstanding (in shares)	55,063	7,367
Weighted-average dilutive effect of stock options (in shares)	2,707	1,782
Weighted-average dilutive effect of common shares from stock warrants (in shares)	0	2,119
Dilutive effect from preferred stock assuming conversion (in shares)	0	32,468
Weighted-average common shares outstanding (in shares)	57,770	43,736
Basic (in dollars per share)	$0.09	$0.52
Diluted (in dollars per share)	$0.09	$0.08

Net_income_per_share_attributa3

Net income per share attributable to common stockholders (Anti-dilutive securities) (Details)	3 Months Ended
In Thousands, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	679	145

Property_and_equipment_Schedul

Property and equipment (Schedule of property and equipment) (Details) (USD $)	Apr. 30, 2015	Jan. 31, 2015
In Thousands, unless otherwise specified
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$6,662	$5,836
Accumulated depreciation	-3,583	-3,259
Property and equipment, net	3,079	2,577
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	506	506
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,531	1,317
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$4,625	$4,013

Property_and_equipment_Narrati

Property and equipment (Narrative) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense	$324	$239

Intangible_assets_and_goodwill2

Intangible assets and goodwill (Narrative) (Details) (USD $)	3 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software development costs	$1,200,000	$1,100,000
Software development costs incurred and expensed	1,700,000	789,000
Amortization expense	1,400,000	1,000,000
Change in goodwill	$0	$0

Intangible_assets_and_goodwill3

Intangible assets and goodwill (Schedule of finite-lived intangible assets) (Details) (USD $)	Apr. 30, 2015	Jan. 31, 2015
In Thousands, unless otherwise specified
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$41,229	$39,726
Accumulated amortization	-14,611	-13,185
Intangible assets, net	26,618	26,541
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	11,670	10,468
Software
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	4,996	4,695
Acquired intangible member assets
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$24,563	$24,563

Commitment_and_contingencies_D

Commitment and contingencies (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
Lease expense for office space	$464	$276
Expenses for other agreements	$60	$53

Income_taxes_Details

Income taxes (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014	Jan. 31, 2015
Income Tax Disclosure [Abstract]
Income tax provision	$2,900	$1,943
Effective tax rate	36.80%	41.70%
Net impact of discrete tax items on effective tax rate		1.70%
Unrecognized tax benefits	332		300
Net unrecognized tax benefits	20		20
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	250
Anticipated decrease in total gross unrecognized tax benefits within 12 months	$20

Stock_options_Details

Stock options (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014	Jan. 31, 2015
Number of options
Opening balance	6,457,000
Granted	581,000	0
Exercised	-506,000
Forfeited	-16,000
Ending balance	6,516,000		6,457,000
Range of exercise prices (usd per share)
Beginning balance, minimum	$1.10
Beginning balance, maximum	$25.45
Exercised, minimum	$0.10
Exercised, maximum	$3.50
Forfeited, minimum	$0.80
Forfeited, maximum	$25.45
Ending balance, minimum	$1.10		$1.10
Ending balance, maximum	$25.45		$25.45
Weighted- average exercise price (usd per share)
Opening balance	$5.27
Granted	$25.39
Exercised	$0.97
Forfeited	$13.74
Ending balance	$7.37		$5.27
Weighted- average contractual term (in years)	7 years 0 months 22 days		6 years 10 months 17 days
Aggregate intrinsic value	$122,734		$100,290
Vested and expected to vest, number of options	6,270,000
Vested and expected to vest, Weighted- average exercise price (usd per share)	$7.04
Vested and expected to vest, Weighted- average contractual term (in years)	6 years 11 months 20 days
Vested and expected to vest, Aggregate intrinsic value	120,166
Exercisable, number of options	3,589,000
Exercisable, Weighted average exercise price (usd per share)	$1.10
Exercisable, Weighted average contractual term (in years)	5 years 3 months 22 days
Aggregate intrinsic value	$90,098

Stock_options_Assumptions_Deta

Stock options (Assumptions) (Details)	3 Months Ended
	Apr. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield (percentage)	0.00%
Expected stock price volatility (percentage)	40.30%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (percentage)	1.47%
Expected life of options (in years)	5 years 5 months 5 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (percentage)	1.64%
Expected life of options (in years)	6 years 3 months

Stock_options_Narrative_Detail

Stock options (Narrative) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Apr. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average vesting period of non-vested awards expected to vest	2 years 11 months
Unrecognized stock compensation expense to be recognized in future	$14.30

Stock_options_Stockbased_compe

Stock options (Stock-based compensation) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$1,094	$65
Cost of services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	228	19
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	228	2
Technology and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	150	32
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$488	$12

Cash_cash_equivalents_and_mark2

Cash, cash equivalents and marketable securities (Details) (USD $)	Apr. 30, 2015	Jan. 31, 2015	Apr. 30, 2014	Jan. 31, 2014
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]
Cash and cash equivalents, cost basis	$74,861	$111,005	$13,990	$13,917
Total cash, cash equivalents and marketable securities, cost basis	114,923	111,005
Marketable securities, cost basis		0
Marketable securities, gross unrealized gains	0	0
Marketable securities, gross unrealized losses	-22	0
Cash and cash equivalents, fair value	74,861	111,005
Marketable securities, fair value	40,040	0
Total cash, cash equivalents and marketable securities, fair value	114,901	111,005
Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, cost basis	40,062
Marketable securities, gross unrealized gains	0
Marketable securities, gross unrealized losses	-22
Marketable securities, fair value	$40,040

Cash_cash_equivalents_and_mark3

Cash, cash equivalents and marketable securities (Contract Maturity) (Details) (USD $)	Apr. 30, 2015
In Thousands, unless otherwise specified
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$25,027
Over one year and less than five years	15,035
Total	40,062
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
One year or less	25,022
Over one year and less than five years	15,018
Total	$40,040

Fair_value_Details

Fair value (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Apr. 30, 2015	Apr. 30, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$0	$6,182
Loss on revaluation	0	735
Elimination of liability due to removal of FMV provision	0	-6,917
Balance at the end of period	0	0
Mutual funds | Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	40,040
Mutual funds | Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0
Mutual funds | Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	$0

Related_party_transactions_Det

Related party transactions (Details) (Company owned by President and Chief Executive Officer, USD $)	3 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Company owned by President and Chief Executive Officer
Related Party Transaction [Line Items]
Amounts paid under consulting agreement	$0	$81,000

Subsequent_events_Details

Subsequent events (Details) (USD $)	3 Months Ended	0 Months Ended
	Apr. 30, 2015	15-May-15	11-May-15	Jan. 31, 2015
		lease_renewal
Subsequent Event [Line Items]
Shares issued	55,308,000			54,754,000
Shares of common stock which were issued upon the exercise of outstanding options	506,000
Subsequent Event
Subsequent Event [Line Items]
Shares issued			972,500
Public offering price			$25.90
Stock sold by shareholders			3,455,000
Underwriters discount and commission			$1,000,000
Other offering expenses payable			719,000
Stock Issued During Period, Value, Stock Options Exercised			222,000
Term of contract		129 months
Number of renewals		2
Renewal term		5 years
Annual initial rent		1,000,000
Annual increase in rent, percentage		2.50%
Dividend Declared | Subsequent Event
Subsequent Event [Line Items]
Dividends declared			23,500,000
Amended Lease Agreement | Subsequent Event
Subsequent Event [Line Items]
Term of contract		129 months
Number of renewals		2
Renewal term		5 years
Annual initial rent		$1,600,000
Annual increase in rent, percentage		2.50%
Common Stock [Member] | Subsequent Event
Subsequent Event [Line Items]
Shares of common stock which were issued upon the exercise of outstanding options			380,000