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 |