Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2015 | Aug. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HEALTHEQUITY INC | |
Entity Central Index Key | 1,428,336 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 57,222,296 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 108,851 | $ 111,005 |
Marketable securities, at fair value | 40,083 | 0 |
Total cash, cash equivalents and marketable securities | 148,934 | 111,005 |
Accounts receivable, net of allowance for doubtful accounts of $34 as of July 31, 2015 and $40 as of January 31, 2015 | 10,855 | 9,054 |
Inventories | 590 | 625 |
Deferred tax asset | 1,968 | 1,764 |
Other current assets | 5,634 | 2,271 |
Total current assets | 167,981 | 124,719 |
Property and equipment, net | 3,157 | 2,577 |
Intangible assets, net | 26,598 | 26,541 |
Goodwill | 4,651 | 4,651 |
Other assets | 529 | 281 |
Total assets | 202,916 | 158,769 |
Current liabilities | ||
Accounts payable | 1,032 | 1,303 |
Accrued compensation | 3,312 | 5,301 |
Accrued liabilities | 2,861 | 2,227 |
Total current liabilities | 7,205 | 8,831 |
Long-term liabilities | ||
Other long-term liability | 145 | 488 |
Deferred tax liability | 4,405 | 5,355 |
Total long-term liabilities | 4,550 | 5,843 |
Total liabilities | $ 11,755 | $ 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 July 31, 2015 and January 31, 2015, respectively | $ 0 | $ 0 |
Common stock, $0.0001 par value, 900,000 shares authorized, 57,162 and 54,802 shares issued and outstanding as of July 31, 2015 and January 31, 2015, respectively | 6 | 5 |
Additional paid-in capital | 194,794 | 157,094 |
Accumulated other comprehensive loss | (33) | 0 |
Accumulated deficit | (3,606) | (13,004) |
Total stockholders’ equity | 191,161 | 144,095 |
Total liabilities and stockholders’ equity | $ 202,916 | $ 158,769 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 34 | $ 40 |
Preferred Stock, Par Value (usd per share) | $ 0.0001 | $ 0.0001 |
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 Value (usd per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 900,000,000 | 900,000,000 |
Common Stock, Shares, Issued | 57,162,000 | 54,802,000 |
Common Stock, Shares, Outstanding | 57,162,000 | 54,802,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations And Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Revenue: | ||||
Account fee revenue | $ 14,604 | $ 10,548 | $ 29,001 | $ 20,936 |
Custodial fee revenue | 9,031 | 5,934 | 17,450 | 11,361 |
Card fee revenue | 6,771 | 4,233 | 13,588 | 8,531 |
Other revenue | 88 | 176 | 305 | 294 |
Total revenue | 30,494 | 20,891 | 60,344 | 41,122 |
Cost of services: | ||||
Account costs | 8,316 | 6,703 | 16,705 | 13,131 |
Custodial costs | 1,512 | 1,006 | 2,935 | 1,944 |
Card costs | 2,049 | 1,412 | 4,151 | 2,817 |
Other costs | 32 | 1 | 62 | 2 |
Total cost of services | 11,909 | 9,122 | 23,853 | 17,894 |
Gross profit | 18,585 | 11,769 | 36,491 | 23,228 |
Operating expenses: | ||||
Sales and marketing | 2,737 | 2,321 | 5,570 | 4,554 |
Technology and development | 3,998 | 2,302 | 7,522 | 4,488 |
General and administrative | 3,943 | 1,666 | 7,101 | 2,809 |
Amortization of acquired intangible assets | 409 | 409 | 818 | 818 |
Total operating expenses | 11,087 | 6,698 | 21,011 | 12,669 |
Income from operations | 7,498 | 5,071 | 15,480 | 10,559 |
Other expense: | ||||
Loss on revaluation of redeemable convertible preferred stock derivative | 0 | 0 | 0 | (735) |
Other expense, net | (542) | (39) | (647) | (131) |
Total other expense | (542) | (39) | (647) | (866) |
Income before income taxes | 6,956 | 5,032 | 14,833 | 9,693 |
Income tax provision | 2,535 | 2,004 | 5,435 | 3,947 |
Net income | 4,421 | 3,028 | 9,398 | 5,746 |
Net income attributable to common stockholders: | ||||
Basic (in dollars) | 4,421 | 1,565 | 9,398 | 5,457 |
Diluted (in dollars) | $ 4,421 | $ 2,591 | $ 9,398 | $ 6,481 |
Net income per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 0.08 | $ 0.19 | $ 0.17 | $ 0.70 |
Diluted (in dollars per share) | $ 0.08 | $ 0.06 | $ 0.16 | $ 0.14 |
Weighted-average number of shares used in computing net income per share attributable to common stockholders | ||||
Basic (in shares) | 56,730 | 8,135 | 55,909 | 7,757 |
Diluted (in shares) | 58,932 | 41,680 | 58,318 | 45,847 |
Comprehensive income: | ||||
Net income | $ 4,421 | $ 3,028 | $ 9,398 | $ 5,746 |
Other comprehensive loss: | ||||
Unrealized loss on available-for-sale marketable securities, net of tax | (11) | 0 | (33) | 0 |
Comprehensive income | $ 4,410 | $ 3,028 | $ 9,365 | $ 5,746 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 9,398 | $ 5,746 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,665 | 2,643 |
Loss on revaluation of redeemable convertible preferred stock derivative | 0 | 735 |
Deferred taxes | (1,133) | 1,847 |
Stock-based compensation | 2,771 | 468 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,801) | (582) |
Inventories | 35 | 22 |
Other assets | (3,611) | (2,396) |
Accounts payable | (277) | (1,905) |
Accrued compensation | (1,989) | (1,128) |
Accrued liabilities | 577 | (172) |
Other long-term liability | (343) | 42 |
Net cash provided by operating activities | 7,292 | 5,320 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (40,137) | 0 |
Purchase of property and equipment | (1,257) | (1,047) |
Purchase of software and capitalized software development costs | (2,982) | (3,516) |
Net cash used in investing activities | (44,376) | (4,563) |
Cash flows from financing activities: | ||
Proceeds from follow-on offering, net of payments for offering costs | 23,492 | 0 |
Proceeds from exercise of common stock options | 1,153 | 2,383 |
Proceeds from exercise of common stock warrants | 0 | 2,343 |
Tax benefit from exercise of common stock options | 10,285 | 2,886 |
Deferred offering costs | 0 | (1,400) |
Net cash provided by financing activities | 34,930 | 6,212 |
(Decrease) increase in cash and cash equivalents | (2,154) | 6,969 |
Beginning cash and cash equivalents | 111,005 | 13,917 |
Ending cash and cash equivalents | 108,851 | 20,886 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Common stock warrants exercised | 0 | 2,313 |
Series D-3 redeemable convertible preferred stock dividend | $ 0 | $ 344 |
Summary of business and signifi
Summary of business and significant accounting policies | 6 Months Ended |
Jul. 31, 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 limited partnership for investment in and 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 July 31, 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 July 31, 2015 and for the three and six months ended July 31, 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 for the year ended January 31, 2015. The fiscal year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Follow-on offering —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 $688,000 . 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. 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. As of July 31, 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. In July 2015, the FASB voted to defer the effective date to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption beginning for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2016. 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. Business combinations —Acquisition-related expenses are recognized in earnings in the period in which they are incurred. During the three and six months ended July 31, 2015, the Company incurred $ 571,000 and $661,000 , respectively, of acquisition-related expenses which is included in other expense, net on the condensed consolidated statement of operations. There were no business combinations during the three and six months ended July 31, 2015. Revision of previously issued financial statements —During the three months ended October 31, 2014, the Company identified an error that originated in the three months ended July 31, 2014 . This error was caused by using an incorrect fair value amount in calculating the windfall tax benefit for a portion of the vested options exercised during the period. The adjustment increased other current assets and additional paid-in capital by approximately $1.0 million . The error also decreased cash provided by operating activities by $1.0 million and increased cash provided by financing activities by the same amount. The error had no impact to the condensed consolidated statement of operations and comprehensive income. The Company determined this error did not materially impact the July 31, 2014 financial statements nor the October 31, 2014 financial statements; however, in order to correctly present the financial statements, the condensed consolidated statement of cash flows for the six months ended July 31, 2014 has been revised to reflect this correction. |
Net income per share attributab
Net income per share attributable to common stockholders | 6 Months Ended |
Jul. 31, 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 and six months ended July 31, 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 July 31, Six months ended July 31, 2015 2014 2015 2014 Numerator (basic and diluted): Net income $ 4,421 $ 3,028 $ 9,398 $ 5,746 Add back: accretion of redeemable convertible preferred stock — — — 4,021 Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock — (632 ) — (1,270 ) Less: undistributed income attributed to redeemable convertible preferred stockholders — (831 ) — (3,040 ) Net income attributable to common stockholders for basic earnings per share $ 4,421 $ 1,565 $ 9,398 $ 5,457 Add back: dividend of redeemable convertible preferred stock — 463 — 1,270 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 — 563 — 3,040 Net income attributable to common stockholders for diluted earnings per share $ 4,421 $ 2,591 $ 9,398 $ 6,481 Denominator (basic): Weighted-average common shares outstanding 56,730 8,135 55,909 7,757 Denominator (diluted): Weighted-average common shares outstanding 56,730 8,135 55,909 7,757 Effect of potential dilutive securities: Weighted-average dilutive effect of stock options 2,202 3,050 2,409 3,207 Weighted-average dilutive effect of common shares from stock warrants — 2,350 — 2,415 Dilutive effect from preferred stock assuming conversion — 28,145 — 32,468 Weighted-average common shares outstanding 58,932 41,680 58,318 45,847 Net income per share attributable to common stockholders: Basic $ 0.08 $ 0.19 $ 0.17 $ 0.70 Diluted $ 0.08 $ 0.06 $ 0.16 $ 0.14 For the three months ended July 31, 2015 and 2014 , approximately 648,000 and 4.3 million shares, respectively, attributable to stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. For the six months ended July 31, 2015 and 2014 , approximately 637,000 and 2,000 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 | 6 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consisted of the following as of July 31, 2015 and January 31, 2015 : (in thousands) July 31, 2015 January 31, 2015 Leasehold improvements $ 703 $ 506 Furniture and fixtures 1,548 1,317 Computer equipment 4,842 4,013 Property and equipment, gross 7,093 5,836 Accumulated depreciation (3,936 ) (3,259 ) Property and equipment, net $ 3,157 $ 2,577 Depreciation expense for the three and six months ended July 31, 2015 was $354,000 and $677,000 , respectively, and $251,000 and $485,000 for the three and six months ended July 31, 2014 , respectively. |
Intangible assets and goodwill
Intangible assets and goodwill | 6 Months Ended |
Jul. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets and goodwill | During the three and six months ended July 31, 2015 , the Company capitalized software development costs of $1.2 million and $2.4 million , respectively, and $1.3 million and $2.4 million for the three and six months ended July 31, 2014 , 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 July 31, 2015 and January 31, 2015 : (in thousands) July 31, 2015 January 31, 2015 Amortized intangible assets: Capitalized software development costs $ 12,907 $ 10,468 Software 5,301 4,695 Acquired intangible member assets 24,563 24,563 Intangible assets, gross 42,771 39,726 Accumulated amortization (16,173 ) (13,185 ) Intangible assets, net $ 26,598 $ 26,541 During the three and six months ended July 31, 2015 , the Company incurred and expensed a total of $1.8 million and $3.5 million , respectively, and $976,000 and $1.8 million for the three and six months ended July 31, 2014 , respectively, in software development costs primarily related to the post-implementation and operation stages of its proprietary software. Amortization expense for the three and six months ended July 31, 2015 was $1.6 million and $3.0 million , respectively, and $1.1 million and $2.2 million for the three and six months ended July 31, 2014 , respectively. There were no changes to the goodwill carrying value during the three and six months ended July 31, 2015 and 2014 . |
Commitment and contingencies
Commitment and contingencies | 6 Months Ended |
Jul. 31, 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 for the year ended January 31, 2015, and did not change materially during the three and six months ended July 31, 2015 , except for the following: 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 Company has no risk of loss during the construction period. 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 its portion of 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 commenced on July 1, 2015 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 its portion of the building, in addition to an annual base rent in the initial amount of approximately $1.6 million , with 2.5% annual increases. As a result of the foregoing transaction, the deferred rent balance of approximately $470,000 was reversed during the three and six months ended July 31, 2015 . Lease expense for office space for the three and six months ended July 31, 2015 was $510,000 and $983,000 , respectively, and $293,000 and $570,000 for the three and six months ended July 31, 2014 , respectively. Expense for other lease agreements for the three and six months ended July 31, 2015 was $57,000 and $116,000 , respectively, and $47,000 and $99,000 for the three and six months ended July 31, 2014 , respectively. |
Income taxes
Income taxes | 6 Months Ended |
Jul. 31, 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 and six months ended July 31, 2015 , the Company recorded a provision for income taxes of $2.5 million and $5.4 million , respectively. The resulting effective tax rate was 36.4% and 36.6% , compared with an effective tax rate of 39.8% and 40.7% for the three and six months ended July 31, 2014 . For the three and six months ended July 31, 2015 , discrete tax items were not significant. For the three and six months ended July 31, 2014 , the net impact of discrete tax items caused a 1.3% and 0.5% decrease, respectively, to the effective tax rate primarily due to the tax benefit on book stock compensation expense on stock options vesting upon the Company's initial public offering offset by 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, a decrease in state 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 July 31, 2015 and January 31, 2015 , the Company’s total gross unrecognized tax benefit was $318,000 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 July 31, 2015 and January 31, 2015 remains unchanged at $20,000 . If recognized, $241,000 of the total gross unrecognized tax benefits would affect the Company's effective tax rate as of July 31, 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 | 6 Months Ended |
Jul. 31, 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 Outstanding as of January 31, 2015 6,457 $0.10 - 25.45 $ 5.27 6.88 $ 100,290 Granted 647 $25.39 - 26.66 $ 25.52 Exercised (1,388 ) $0.10 - 14.00 $ 0.83 Forfeited (110 ) $0.80 - 25.45 $ 17.11 Outstanding as of July 31, 2015 5,606 $0.10 - 26.66 $ 8.47 7.13 $ 141,217 Vested and expected to vest as of July 31, 2015 5,389 $ 8.16 7.05 $ 137,406 Exercisable as of July 31, 2015 2,900 $ 1.97 5.39 $ 91,915 The aggregate intrinsic value in the table above represents the difference between the estimated fair value of common stock and the exercise price of outstanding, in-the-money stock options. The key input assumptions that were utilized in the valuation of the stock options granted during the periods presented: Three months ended July 31, Six months ended July 31, 2015 2014 2015 2014 Expected dividend yield — % — % — % —% Expected stock price volatility 38.5 % 32.9 % 38.5% - 40.3% 32.9% Risk-free interest rate 1.72 % 2.24 % 1.47% - 1.72% 2.24% Expected life of options 6.25 years 6.25 years 5.43 - 6.25 years 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 history 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 sufficient option exercise history as a public company. As of July 31, 2015 , the weighted-average vesting period of non-vested awards expected to vest approximates 2.7 years ; the amount of compensation expense the Company expects to recognize for stock options vesting in future periods approximates $12.8 million . The following table shows a summary of stock-based compensation in the Company's condensed consolidated statements of operations and comprehensive income during the periods presented: Three months ended July 31, Six months ended July 31, (in thousands) 2015 2014 2015 2014 Cost of services $ 208 $ 52 $ 436 $ 70 Sales and marketing 259 138 487 141 Technology and development 237 53 387 85 General and administrative 973 160 1,461 172 Total stock-based compensation expense $ 1,677 $ 403 $ 2,771 $ 468 |
Cash, cash equivalents and mark
Cash, cash equivalents and marketable securities | 6 Months Ended |
Jul. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities as of July 31, 2015 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 108,851 $ — $ — $ 108,851 Marketable securities: Mutual funds 40,137 25 (79 ) 40,083 Total cash, cash equivalents and marketable securities $ 148,988 $ 25 $ (79 ) $ 148,934 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 July 31, 2015 : (in thousands) Cost basis Fair value One year or less $ 25,061 $ 25,040 Over one year and less than five years 15,076 15,043 Total $ 40,137 $ 40,083 As of July 31, 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 | 6 Months Ended |
Jul. 31, 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: July 31, 2015 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,083 $ — $ — 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 and six months ended July 31, 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 July 31, Six months ended July 31, (in thousands) 2015 2014 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 | 6 Months Ended |
Jul. 31, 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 and six months ended July 31, 2015 . The amount paid to this company under the terms of the consulting agreement for the three and six months ended July 31, 2014 was $81,000 and $162,000 , respectively. |
Summary of business and signi16
Summary of business and significant accounting policies (Policies) | 6 Months Ended |
Jul. 31, 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 limited partnership for investment in and 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 July 31, 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. As of July 31, 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. In July 2015, the FASB voted to defer the effective date to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption beginning for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2016. 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 attribut17
Net income per share attributable to common stockholders (Tables) | 6 Months Ended |
Jul. 31, 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 July 31, Six months ended July 31, 2015 2014 2015 2014 Numerator (basic and diluted): Net income $ 4,421 $ 3,028 $ 9,398 $ 5,746 Add back: accretion of redeemable convertible preferred stock — — — 4,021 Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock — (632 ) — (1,270 ) Less: undistributed income attributed to redeemable convertible preferred stockholders — (831 ) — (3,040 ) Net income attributable to common stockholders for basic earnings per share $ 4,421 $ 1,565 $ 9,398 $ 5,457 Add back: dividend of redeemable convertible preferred stock — 463 — 1,270 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 — 563 — 3,040 Net income attributable to common stockholders for diluted earnings per share $ 4,421 $ 2,591 $ 9,398 $ 6,481 Denominator (basic): Weighted-average common shares outstanding 56,730 8,135 55,909 7,757 Denominator (diluted): Weighted-average common shares outstanding 56,730 8,135 55,909 7,757 Effect of potential dilutive securities: Weighted-average dilutive effect of stock options 2,202 3,050 2,409 3,207 Weighted-average dilutive effect of common shares from stock warrants — 2,350 — 2,415 Dilutive effect from preferred stock assuming conversion — 28,145 — 32,468 Weighted-average common shares outstanding 58,932 41,680 58,318 45,847 Net income per share attributable to common stockholders: Basic $ 0.08 $ 0.19 $ 0.17 $ 0.70 Diluted $ 0.08 $ 0.06 $ 0.16 $ 0.14 |
Property and equipment (Tables)
Property and equipment (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consisted of the following as of July 31, 2015 and January 31, 2015 : (in thousands) July 31, 2015 January 31, 2015 Leasehold improvements $ 703 $ 506 Furniture and fixtures 1,548 1,317 Computer equipment 4,842 4,013 Property and equipment, gross 7,093 5,836 Accumulated depreciation (3,936 ) (3,259 ) Property and equipment, net $ 3,157 $ 2,577 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 6 Months Ended |
Jul. 31, 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 July 31, 2015 and January 31, 2015 : (in thousands) July 31, 2015 January 31, 2015 Amortized intangible assets: Capitalized software development costs $ 12,907 $ 10,468 Software 5,301 4,695 Acquired intangible member assets 24,563 24,563 Intangible assets, gross 42,771 39,726 Accumulated amortization (16,173 ) (13,185 ) Intangible assets, net $ 26,598 $ 26,541 |
Stock options (Tables)
Stock options (Tables) | 6 Months Ended |
Jul. 31, 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 Outstanding as of January 31, 2015 6,457 $0.10 - 25.45 $ 5.27 6.88 $ 100,290 Granted 647 $25.39 - 26.66 $ 25.52 Exercised (1,388 ) $0.10 - 14.00 $ 0.83 Forfeited (110 ) $0.80 - 25.45 $ 17.11 Outstanding as of July 31, 2015 5,606 $0.10 - 26.66 $ 8.47 7.13 $ 141,217 Vested and expected to vest as of July 31, 2015 5,389 $ 8.16 7.05 $ 137,406 Exercisable as of July 31, 2015 2,900 $ 1.97 5.39 $ 91,915 |
Summary of Assumptions | The key input assumptions that were utilized in the valuation of the stock options granted during the periods presented: Three months ended July 31, Six months ended July 31, 2015 2014 2015 2014 Expected dividend yield — % — % — % —% Expected stock price volatility 38.5 % 32.9 % 38.5% - 40.3% 32.9% Risk-free interest rate 1.72 % 2.24 % 1.47% - 1.72% 2.24% Expected life of options 6.25 years 6.25 years 5.43 - 6.25 years 6.25 years |
Summary of share based compensation recognized | The following table shows a summary of stock-based compensation in the Company's condensed consolidated statements of operations and comprehensive income during the periods presented: Three months ended July 31, Six months ended July 31, (in thousands) 2015 2014 2015 2014 Cost of services $ 208 $ 52 $ 436 $ 70 Sales and marketing 259 138 487 141 Technology and development 237 53 387 85 General and administrative 973 160 1,461 172 Total stock-based compensation expense $ 1,677 $ 403 $ 2,771 $ 468 |
Cash, cash equivalents and ma21
Cash, cash equivalents and marketable securities (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | Cash, cash equivalents and marketable securities as of July 31, 2015 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 108,851 $ — $ — $ 108,851 Marketable securities: Mutual funds 40,137 25 (79 ) 40,083 Total cash, cash equivalents and marketable securities $ 148,988 $ 25 $ (79 ) $ 148,934 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 July 31, 2015 : (in thousands) Cost basis Fair value One year or less $ 25,061 $ 25,040 Over one year and less than five years 15,076 15,043 Total $ 40,137 $ 40,083 |
Fair value (Tables)
Fair value (Tables) | 6 Months Ended |
Jul. 31, 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: July 31, 2015 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,083 $ — $ — |
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 and six months ended July 31, 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 July 31, Six months ended July 31, (in thousands) 2015 2014 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 signi23
Summary of business and significant accounting policies (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 11, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2015 | Jan. 31, 2015 |
Class of Stock [Line Items] | |||||
Shares issued | 972,500 | 57,162,000 | 57,162,000 | 54,802,000 | |
Public offering price (usd per share) | $ 25.90 | ||||
Stock sold by shareholders (shares) | 3,455,000 | ||||
Shares of common stock which were issued upon the exercise of outstanding options (shares) | 1,388,000 | ||||
Proceeds from issuance of stock | $ 23,500 | ||||
Underwriters discount and commission | 1,000 | ||||
Other offering expenses payable | 688 | ||||
Stock issued during the period, exercises | $ 222 | ||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 22.00% | ||||
Equity method investments | $ 281 | $ 281 | |||
Error in Calculation of Tax Benefits [Member] | Increase in Prepaid Expenses and Additional Paid-in Capital [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Adjustment for error caused by using incorrect fair value for calculation Tax benefit | $ 1,000 | ||||
Other Expense [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Acquisition costs | $ 571 | $ 661 | |||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Shares of common stock which were issued upon the exercise of outstanding options (shares) | 380,000 |
Net income per share attribut24
Net income per share attributable to common stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 4,421 | $ 3,028 | $ 9,398 | $ 5,746 |
Add back: accretion of redeemable convertible preferred stock | 0 | 0 | 0 | 4,021 |
Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock | 0 | (632) | 0 | (1,270) |
Less: undistributed income attributed to redeemable convertible preferred stockholders | 0 | (831) | 0 | (3,040) |
Net income attributable to common stockholders for basic earnings per share | 4,421 | 1,565 | 9,398 | 5,457 |
Add back: dividend of redeemable convertible preferred stock | 0 | 463 | 0 | 1,270 |
Less: accretion on redeemable convertible preferred stock and dividend on convertible preferred stock | 0 | 0 | 0 | (4,021) |
Add back: series D-3 derivative liability revaluations | 0 | 0 | 0 | 735 |
Add back: adjustment to undistributed income attributed to redeemable convertible preferred stockholders | 0 | 563 | 0 | 3,040 |
Net income attributable to common stockholders for diluted earnings per share | $ 4,421 | $ 2,591 | $ 9,398 | $ 6,481 |
Weighted-average common shares outstanding (in shares) | 56,730 | 8,135 | 55,909 | 7,757 |
Weighted-average dilutive effect of stock options (in shares) | 2,202 | 3,050 | 2,409 | 3,207 |
Weighted-average dilutive effect of common shares from stock warrants (in shares) | 0 | 2,350 | 0 | 2,415 |
Dilutive effect from preferred stock assuming conversion (in shares) | 0 | 28,145 | 0 | 32,468 |
Weighted-average common shares outstanding (in shares) | 58,932 | 41,680 | 58,318 | 45,847 |
Basic (in dollars per share) | $ 0.08 | $ 0.19 | $ 0.17 | $ 0.70 |
Diluted (in dollars per share) | $ 0.08 | $ 0.06 | $ 0.16 | $ 0.14 |
Net income per share attribut25
Net income per share attributable to common stockholders (Anti-dilutive securities) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 648 | 4,300 | 637 | 2 |
Property and equipment (Schedul
Property and equipment (Schedule of property and equipment) (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,093 | $ 5,836 |
Accumulated depreciation | (3,936) | (3,259) |
Property and equipment, net | 3,157 | 2,577 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 703 | 506 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,548 | 1,317 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,842 | $ 4,013 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 354 | $ 251 | $ 677 | $ 485 |
Intangible assets and goodwil28
Intangible assets and goodwill (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Capitalized software development costs | $ 1,200,000 | $ 1,300,000 | $ 2,400,000 | $ 2,400,000 |
Software development costs incurred and expensed | 1,800,000 | 976,000 | 3,500,000 | 1,800,000 |
Amortization expense | 1,600,000 | 1,100,000 | 3,000,000 | 2,200,000 |
Change in goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Intangible assets and goodwil29
Intangible assets and goodwill (Schedule of finite-lived intangible assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 42,771 | $ 39,726 |
Accumulated amortization | (16,173) | (13,185) |
Intangible assets, net | 26,598 | 26,541 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 12,907 | 10,468 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 5,301 | 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) $ in Thousands | Jul. 01, 2015USD ($)lease_renewal | May. 15, 2015USD ($)lease_renewal | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) |
Operating Leased Assets [Line Items] | ||||||
Term of contract | 129 months | |||||
Number of renewals | lease_renewal | 2 | |||||
Renewal term | 5 years | |||||
Annual initial rent | $ 1,000 | |||||
Annual increase in rent, percentage | 2.50% | |||||
Lease expense for office space | $ 510 | $ 293 | $ 983 | $ 570 | ||
Expenses for other agreements | 57 | $ 47 | 116 | $ 99 | ||
Amended Lease Agreement [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Term of contract | 129 months | |||||
Number of renewals | lease_renewal | 2 | |||||
Renewal term | 5 years | |||||
Annual initial rent | $ 1,600 | |||||
Annual increase in rent, percentage | 2.50% | |||||
Lease Agreement Signed on May Fifteen Twenty Fifteen [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Lease expense for office space | $ 470 | $ 470 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 2,535 | $ 2,004 | $ 5,435 | $ 3,947 | |
Effective tax rate | 36.40% | 39.80% | 36.60% | 40.70% | |
Net impact of discrete tax items on effective tax rate | 1.30% | 0.50% | |||
Unrecognized tax benefits | $ 318 | $ 318 | $ 300 | ||
Net unrecognized tax benefits | 20 | 20 | $ 20 | ||
Unrecognized tax benefits that would impact effective tax rate | 241 | 241 | |||
Anticipated decrease in total gross unrecognized tax benefits within 12 months | $ 20 | $ 20 |
Stock options (Details)
Stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Jan. 31, 2015 | |
Number of options | ||
Opening balance (shares) | 6,457 | |
Granted (shares) | 647 | |
Exercised (shares) | (1,388) | |
Forfeited (shares) | (110) | |
Ending balance (shares) | 5,606 | 6,457 |
Range of exercise prices (usd per share) | ||
Beginning balance, minimum (usd per share) | $ 0.10 | |
Beginning balance, maximum (usd per share) | 25.45 | |
Granted, minimum (usd per share) | 25.39 | |
Granted, maximum (usd per share) | 26.66 | |
Exercised, minimum (usd per share) | 0.10 | |
Exercised, maximum (usd per share) | 14 | |
Forfeited, minimum (usd per share) | 0.80 | |
Forfeited, maximum (usd per share) | 25.45 | |
Ending balance, minimum (usd per share) | 0.10 | $ 0.10 |
Ending balance, maximum (usd per share) | 26.66 | 25.45 |
Weighted- average exercise price (usd per share) | ||
Opening balance (usd per share) | 5.27 | |
Granted (usd per share) | 25.52 | |
Exercised (usd per share) | 0.83 | |
Forfeited (usd per share) | 17.11 | |
Ending balance (usd per share) | $ 8.47 | $ 5.27 |
Weighted- average contractual term (in years) | 7 years 1 month 18 days | 6 years 10 months 17 days |
Aggregate intrinsic value | $ 141,217 | $ 100,290 |
Vested and expected to vest, number of options (shares) | 5,389 | |
Vested and expected to vest, Weighted- average exercise price (usd per share) | $ 8.16 | |
Vested and expected to vest, Weighted- average contractual term (in years) | 7 years 20 days | |
Vested and expected to vest, Aggregate intrinsic value | $ 137,406 | |
Exercisable, number of options | 2,900 | |
Exercisable, Weighted average exercise price (usd per share) | $ 1.97 | |
Exercisable, Weighted average contractual term (in years) | 5 years 4 months 20 days | |
Aggregate intrinsic value | $ 91,915 |
Stock options (Assumptions) (De
Stock options (Assumptions) (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield (percentage) | 0.00% | 0.00% | 0.00% | 0.00% |
Expected stock price volatility (percentage) | 38.50% | 32.90% | 32.90% | |
Risk-free interest rate (percentage) | 1.72% | 2.24% | 2.24% | |
Expected life of options (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected stock price volatility (percentage) | 38.50% | |||
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] | ||||
Expected stock price volatility (percentage) | 40.30% | |||
Risk-free interest rate (percentage) | 1.72% | |||
Expected life of options (in years) | 6 years 3 months |
Stock options (Narrative) (Deta
Stock options (Narrative) (Details) - Jul. 31, 2015 - USD ($) $ in Millions | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-average vesting period of non-vested awards expected to vest | 2 years 8 months |
Unrecognized stock compensation expense to be recognized in future | $ 12.8 |
Stock options (Stock-based comp
Stock options (Stock-based compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 1,677 | $ 403 | $ 2,771 | $ 468 |
Cost of services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 208 | 52 | 436 | 70 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 259 | 138 | 487 | 141 |
Technology and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 237 | 53 | 387 | 85 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 973 | $ 160 | $ 1,461 | $ 172 |
Cash, cash equivalents and ma36
Cash, cash equivalents and marketable securities (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents, cost basis | $ 108,851 | $ 111,005 | $ 20,886 | $ 13,917 |
Total cash, cash equivalents and marketable securities, cost basis | 148,988 | 111,005 | ||
Marketable securities, cost basis | 0 | |||
Marketable securities, gross unrealized gains | 25 | 0 | ||
Marketable securities, gross unrealized losses | (79) | 0 | ||
Cash and cash equivalents, fair value | 108,851 | 111,005 | ||
Marketable securities, fair value | 40,083 | 0 | ||
Total cash, cash equivalents and marketable securities, fair value | 148,934 | $ 111,005 | ||
Mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Marketable securities, cost basis | 40,137 | |||
Marketable securities, gross unrealized gains | 25 | |||
Marketable securities, gross unrealized losses | (79) | |||
Marketable securities, fair value | $ 40,083 |
Cash, cash equivalents and ma37
Cash, cash equivalents and marketable securities (Contract Maturity) (Details) $ in Thousands | Jul. 31, 2015USD ($) |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |
One year or less | $ 25,061 |
Over one year and less than five years | 15,076 |
Total | 40,137 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |
One year or less | 25,040 |
Over one year and less than five years | 15,043 |
Total | $ 40,083 |
Fair value (Details)
Fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 0 | $ 0 | $ 0 | $ 6,182 |
Loss on revaluation | 0 | 0 | 0 | 735 |
Elimination of liability due to removal of FMV provision | 0 | 0 | 0 | (6,917) |
Balance at the end of period | 0 | $ 0 | 0 | $ 0 |
Mutual funds | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable securities: | 40,083 | 40,083 | ||
Mutual funds | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable securities: | 0 | 0 | ||
Mutual funds | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable securities: | $ 0 | $ 0 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Company owned by President and Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Amounts paid under consulting agreement | $ 0 | $ 81,000 | $ 0 | $ 162,000 |