HealthEquity (HQY) 10-Q 9 Dec 15 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2015	Nov. 30, 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	Oct. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		57,626,846

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 31, 2015	Jan. 31, 2015
Current assets
Cash and cash equivalents	$ 85,009	$ 111,005
Marketable securities, at fair value	40,105	0
Total cash, cash equivalents and marketable securities	125,114	111,005
Accounts receivable, net of allowance for doubtful accounts of $34 as of October 31, 2015 and $40 as of January 31, 2015	9,922	9,054
Inventories	815	625
Deferred tax asset	2,035	1,764
Other current assets	3,332	2,271
Total current assets	141,218	124,719
Property and equipment, net	3,614	2,577
Intangible assets, net	61,036	26,541
Goodwill	4,651	4,651
Other assets	1,444	281
Total assets	211,963	158,769
Current liabilities
Accounts payable	2,412	1,303
Accrued compensation	3,898	5,301
Accrued liabilities	3,053	2,227
Total current liabilities	9,363	8,831
Long-term liabilities
Other long-term liability	195	488
Deferred tax liability	4,080	5,355
Total long-term liabilities	4,275	5,843
Total liabilities	$ 13,638	$ 14,674
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of October 31, 2015 and January 31, 2015, respectively	$ 0	$ 0
Common stock, $0.0001 par value, 900,000 shares authorized, 57,519 and 54,802 shares issued and outstanding as of October 31, 2015 and January 31, 2015, respectively	6	5
Additional paid-in capital	197,905	157,094
Accumulated other comprehensive loss	(67)	0
Accumulated earnings (deficit)	481	(13,004)
Total stockholders’ equity	198,325	144,095
Total liabilities and stockholders’ equity	$ 211,963	$ 158,769

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 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		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Revenue:
Account fee revenue	$ 15,042	$ 11,086	$ 44,043	$ 32,022
Custodial fee revenue	9,142	6,196	26,592	17,557
Card fee revenue	6,213	4,317	19,801	12,848
Other revenue	159	263	464	557
Total revenue	30,556	21,862	90,900	62,984
Cost of services:
Account costs	9,276	7,057	25,981	20,188
Custodial costs	1,536	1,050	4,471	2,994
Card costs	1,949	1,467	6,100	4,284
Other costs	119	56	181	58
Total cost of services	12,880	9,630	36,733	27,524
Gross profit	17,676	12,232	54,167	35,460
Operating expenses:
Sales and marketing	3,067	2,275	8,637	6,829
Technology and development	4,419	2,811	11,941	7,299
General and administrative	3,477	2,443	10,578	5,252
Amortization of acquired intangible assets	409	409	1,227	1,227
Total operating expenses	11,372	7,938	32,383	20,607
Income from operations	6,304	4,294	21,784	14,853
Other income and (expense):
Loss on revaluation of redeemable convertible preferred stock derivative	0	0	0	(735)
Other income and (expense), net	121	(145)	(526)	(276)
Total other income and (expense)	121	(145)	(526)	(1,011)
Income before income taxes	6,425	4,149	21,258	13,842
Income tax provision	2,338	1,100	7,773	5,047
Net income	4,087	3,049	13,485	8,795
Net income attributable to common stockholders:
Basic (in dollars)	4,087	3,020	13,485	10,245
Diluted (in dollars)	$ 4,087	$ 3,036	$ 13,485	$ 9,530
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.07	$ 0.06	$ 0.24	$ 0.44
Diluted (in dollars per share)	$ 0.07	$ 0.05	$ 0.23	$ 0.19
Weighted-average number of shares used in computing net income per share attributable to common stockholders:
Basic (in shares)	57,353	53,678	56,397	23,232
Diluted (in shares)	59,263	57,553	58,664	50,052
Comprehensive income:
Net income	$ 4,087	$ 3,049	$ 13,485	$ 8,795
Other comprehensive loss:
Unrealized loss on available-for-sale marketable securities, net of tax	(34)	0	(67)	0
Comprehensive income	$ 4,053	$ 3,049	$ 13,418	$ 8,795

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Cash flows from operating activities:
Net income	$ 13,485	$ 8,795
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,730	4,187
Loss on revaluation of redeemable convertible preferred stock derivative	0	735
Deferred taxes	(1,505)	2,026
Stock-based compensation	4,254	793
Changes in operating assets and liabilities:
Accounts receivable	(868)	(349)
Inventories	(190)	(365)
Other assets	(1,421)	(2,124)
Accounts payable	415	(1,542)
Accrued compensation	(1,403)	(1,125)
Accrued liabilities	568	(540)
Other long-term liability	(293)	88
Net cash provided by operating activities	18,772	10,579
Cash flows from investing activities:
Purchases of marketable securities	(40,213)	0
Purchase of property and equipment	(1,882)	(1,477)
Purchase of software and capitalized software development costs	(4,757)	(4,851)
Purchase of other investments	(500)	(305)
Acquisition of intangible member assets	(33,821)	0
Net cash used in investing activities	(81,173)	(6,633)
Cash flows from financing activities:
Dividend payments	0	(50,347)
Proceed from initial public offering, net of payment for offering costs	0	132,587
Proceeds from follow-on offering, net of payments for offering costs	23,492	0
Proceeds from exercise of common stock options	1,751	2,397
Proceeds from exercise of common stock warrants	0	2,380
Tax benefit from exercise of common stock options	11,315	2,974
Deferred financing costs paid	(153)	0
Net cash provided by financing activities	36,405	89,991
(Decrease) increase in cash and cash equivalents	(25,996)	93,937
Beginning cash and cash equivalents	111,005	13,917
Ending cash and cash equivalents	85,009	107,854
Supplemental disclosures of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable or accrued liabilities at period end	221	0
Purchases of software and capitalized software development costs included in accounts payable or accrued liabilities at period end	215	0
Deferred financing costs	150	0
Conversion of preferred stock to common stock	0	50,822
Preferred stock accretion	0	4,021
Reclassification of series D-3 redeemable convertible preferred stock derivative liability	0	6,917
Common stock warrants exercised	$ 0	$ 2,334

Summary of business and signifi

Summary of business and significant accounting policies	9 Months Ended
	Oct. 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 October 31, 2015 and is included in other assets on the accompanying condensed consolidated balance sheet. During the three months ended October 31, 2015 , the Company purchased an approximate 2% ownership interest in a limited partnership that engages in the development of technology-based financial healthcare products. The Company determined there was no significant influence and therefore the investment was accounted for using the cost method of accounting. The investment was $500,000 as of October 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 October 31, 2015 and for the three and nine months ended October 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 October 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. In April 2015, the FASB issued ASU 2015-3, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which simplifies the presentation of debt issuance costs by requiring that such costs be presented as a deduction from the corresponding debt liability. In August 2015, the FASB issued ASU 2015-15, Interest - Imputed Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , which clarifies that entities may continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. The guidance is effective for financial statements issued for reporting periods beginning after December 15, 2015 and interim periods within the reporting periods and requires retrospective presentation; earlier adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies balance sheet classifications of deferred taxes by requiring all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The net current deferred tax asset as of October 31, 2015 was $2.0 million . The Company plans to early adopt this guidance on a prospective basis in the first quarter of fiscal year 2017. Asset acquisitions —In October 2015, the Company acquired a portfolio of HSAs. The Company paid $33.8 million in cash, which was funded by cash on hand. The purchased group of assets did not include workforce or any processes and therefore did not constitute a business. Accordingly, the acquisition was accounted for under the asset acquisition method of accounting in accordance with ASC 805-50, Business Combinations—Related Issues. Under the asset acquisition method of accounting, the Company is required to fair value the assets transferred. The costs of the assets acquired is allocated to the individual assets acquired based on their relative fair values and does not give rise to goodwill. As of October 31, 2015 , the purchase price of $33.8 million was allocated to acquired intangible member assets. Furthermore, transaction costs that are incurred in conjunction with an asset acquisition are allocated to the acquired intangible member assets. Business Combinations —Acquisition-related expenses incurred in conjunction with the acquisition of a business as defined by ASC 805-10 are recognized in earnings in the period in which they are incurred and are included in other expense, net on the condensed consolidated statement of operations. During the three and nine months ended October 31, 2015 , the Company received a credit of $187,000 and incurred an expense of $474,000 , respectively for acquisition-related activity. There were no such business combinations during the three and nine months ended October 31, 2015 and 2014.

Net income per share attributab

Net income per share attributable to common stockholders	9 Months Ended
	Oct. 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 nine months ended October 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 October 31, Nine months ended October 31, 2015 2014 2015 2014 Numerator (basic and diluted): Net income $ 4,087 $ 3,049 $ 13,485 $ 8,795 Add back: accretion of redeemable convertible preferred stock — — — 4,021 Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock — (21 ) — (1,286 ) Less: undistributed income attributed to redeemable convertible preferred stockholders — (8 ) — (1,285 ) Net income attributable to common stockholders for basic earnings per share $ 4,087 $ 3,020 $ 13,485 $ 10,245 Add back: dividend of redeemable convertible preferred stock — 15 — 1,286 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 — 1 — 1,285 Net income attributable to common stockholders for diluted earnings per share $ 4,087 $ 3,036 $ 13,485 $ 9,530 Denominator (basic): Weighted-average common shares outstanding 57,353 53,678 56,397 23,232 Denominator (diluted): Weighted-average common shares outstanding 57,353 53,678 56,397 23,232 Effect of potential dilutive securities: Weighted-average dilutive effect of stock options 1,910 2,944 2,267 3,290 Weighted-average dilutive effect of common shares from stock warrants — 3 — 1,634 Dilutive effect from preferred stock assuming conversion — 928 — 21,896 Weighted-average common shares outstanding 59,263 57,553 58,664 50,052 Net income per share attributable to common stockholders: Basic $ 0.07 $ 0.06 $ 0.24 $ 0.44 Diluted $ 0.07 $ 0.05 $ 0.23 $ 0.19 For the three months ended October 31, 2015 and 2014 , approximately 817,000 and 322,000 shares, respectively, attributable to stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. For the nine months ended October 31, 2015 and 2014 , approximately 726,000 and 164,000 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	9 Months Ended
	Oct. 31, 2015
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment consisted of the following as of October 31, 2015 and January 31, 2015 : (in thousands) October 31, 2015 January 31, 2015 Leasehold improvements $ 703 $ 506 Furniture and fixtures 1,555 1,317 Computer equipment 5,681 4,013 Property and equipment, gross 7,939 5,836 Accumulated depreciation (4,325 ) (3,259 ) Property and equipment, net $ 3,614 $ 2,577 Depreciation expense for the three and nine months ended October 31, 2015 was $389,000 and $1.1 million , respectively, and $290,000 and $776,000 for the three and nine months ended October 31, 2014 , respectively.

Intangible assets and goodwill

Intangible assets and goodwill	9 Months Ended
	Oct. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets and goodwill	During the three months ended October 31, 2015 , the Company acquired an HSA portfolio for $33.8 million . The cost, including transaction costs, was allocated to acquired intangible member assets as of October 31, 2015 . The Company has determined the acquired intangible member assets to have a useful life of 15 years. The assets will be amortized using the straight-line amortization method, which has been determined appropriate to reflect the pattern over which the economic benefits of existing member assets are realized. During the three and nine months ended October 31, 2015 , the Company capitalized software development costs of $1.5 million and $4.0 million , respectively, and $1.4 million and $3.8 million for the three and nine months ended October 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 October 31, 2015 and January 31, 2015 : (in thousands) October 31, 2015 January 31, 2015 Amortized intangible assets: Capitalized software development costs $ 14,432 $ 10,468 Software 5,703 4,695 Acquired intangible member assets 58,750 24,563 Intangible assets, gross 78,885 39,726 Accumulated amortization (17,849 ) (13,185 ) Intangible assets, net $ 61,036 $ 26,541 During the three and nine months ended October 31, 2015 , the Company incurred and expensed a total of $2.0 million and $5.4 million , respectively, and $1.2 million and $3.2 million for the three and nine months ended October 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 nine months ended October 31, 2015 was $1.7 million and $4.7 million , respectively, and $1.3 million and $3.4 million for the three and nine months ended October 31, 2014 , respectively. There were no changes to the goodwill carrying value during the three and nine months ended October 31, 2015 and 2014 .

Commitment and contingencies

Commitment and contingencies	9 Months Ended
	Oct. 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 nine months ended October 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 nine months ended October 31, 2015 . Lease expense for office space for the three and nine months ended October 31, 2015 was $556,000 and $1.6 million , respectively, and $374,000 and $944,000 for the three and nine months ended October 31, 2014 , respectively. Expense for other lease agreements for the three and nine months ended October 31, 2015 was $66,000 and $182,000 , respectively, and $67,000 and $166,000 for the three and nine months ended October 31, 2014 , respectively.

Indebtedness

Indebtedness	9 Months Ended
	Oct. 31, 2015
Debt Disclosure [Abstract]
Indebtedness	On September 30, 2015, the Company entered into a new credit facility (the "Credit Agreement"). The Credit Agreement provides for a secured revolving credit facility in the aggregate principal amount of $100.0 million for a term of five years. The proceeds of borrowings under the Credit Agreement may be used for general corporate purposes. No amounts have been drawn under the Credit Agreement as of October 31, 2015 . Borrowings under the Credit Agreement bear interest equal to, at the Company's option, a) an adjusted LIBOR rate or b) a customary base rate, in each case with an applicable spread to be determined based on the Company's leverage ratio as of the most recent fiscal quarter. The applicable spread for borrowing under the Credit Agreement will range from 1.50% to 2.00% with respect to adjusted LIBOR rate borrowings and 0.50% to 1.00% with respect to customary base rate borrowings. Additionally, the Company will pay a commitment fee ranging from 0.20% to 0.30% on the daily amount of the unused commitments under the Credit Agreement payable in arrears at the end of each fiscal quarter. The Company's material subsidiaries will be required to guarantee the obligations of the Company under the Credit Agreement. The obligations of the Company and the guarantors under the Credit Agreement and the guarantees will be secured by substantially all assets of the Company and the guarantors, subject to customary exclusions and exceptions. The Credit Agreement requires the Company to maintain a total leverage ratio of not more than 3.00 to 1.00 as of the end of each fiscal quarter and a minimum interest coverage ratio of at least 3.00 to 1.00 as of the end of each fiscal quarter. In addition, the Credit Agreement includes customary representations and warranties, affirmative and negative covenants, and events of default. The restrictive covenants include customary restrictions on the Company's ability to incur additional indebtedness; make investments, loans or advances; grant or incur liens on assets; engage in mergers, consolidations, liquidations or dissolutions; engage in transactions with affiliates; and make dividend payments. In connection with the Credit Agreement, the Company incurred $303,000 in financing costs, which are deferred and are being amortized using the straight-line method, which approximates the effective interest method, over the life of the agreement.

Income taxes

Income taxes	9 Months Ended
	Oct. 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 nine months ended October 31, 2015 , the Company recorded a provision for income taxes of $2.3 million and $7.8 million , respectively. The resulting effective tax rate was 36.4% and 36.6% , compared with an effective tax rate of 26.5% and 36.5% for the three and nine months ended October 31, 2014 . For the three and nine months ended October 31, 2015 , discrete tax items were not significant. For the three and nine months ended October 31, 2014 , the net impact of discrete tax items caused a 12.1% and 3.1% decrease, respectively, to the effective tax rate primarily due to the recognition of research and development tax credits, book stock compensation expense on stock options vesting upon the Company's initial public offering, or IPO, treated as a discrete event, and the impact of changes in estimated annual tax rates. The federal research and development tax credit expired as of December 31, 2014. As of October 31, 2015 and January 31, 2015 , the Company’s total gross unrecognized tax benefit was $329,000 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 October 31, 2015 and January 31, 2015 remains unchanged at $20,000 . If recognized, $248,000 of the total gross unrecognized tax benefits would affect the Company's effective tax rate as of October 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	9 Months Ended
	Oct. 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 972 $25.39 - 28.69 $ 26.58 Exercised (1,743 ) $0.10 - 18.93 $ 1.00 Forfeited (153 ) $0.80 - 26.66 $ 17.31 Outstanding as of October 31, 2015 5,533 $0.10 - 28.69 $ 10.02 7.15 $ 125,550 Vested and expected to vest as of October 31, 2015 5,319 $ 9.72 7.08 $ 122,313 Exercisable as of October 31, 2015 2,615 $ 2.09 5.22 $ 80,095 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 October 31, Nine months ended October 31, 2015 2014 2015 2014 Expected dividend yield — % — % — % —% Expected stock price volatility 38.4 % 32.9 % 38.4% - 40.3% 32.9% Risk-free interest rate 1.56% - 1.70% 1.93 % 1.47% - 1.72% 1.93% - 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 October 31, 2015 , the weighted-average vesting period of non-vested awards expected to vest approximates 2.6 years ; the amount of compensation expense the Company expects to recognize for stock options vesting in future periods approximates $14.7 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 October 31, Nine months ended October 31, (in thousands) 2015 2014 2015 2014 Cost of services $ 304 $ 24 $ 740 $ 94 Sales and marketing 218 4 705 145 Technology and development 290 31 677 116 General and administrative 671 268 2,132 438 Total stock-based compensation expense $ 1,483 $ 327 $ 4,254 $ 793

Cash, cash equivalents and mark

Cash, cash equivalents and marketable securities	9 Months Ended
	Oct. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Cash, cash equivalents and marketable securities	Cash, cash equivalents and marketable securities as of October 31, 2015 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 85,009 $ — $ — $ 85,009 Marketable securities: Mutual funds 40,213 36 (144 ) 40,105 Total cash, cash equivalents and marketable securities $ 125,222 $ 36 $ (144 ) $ 125,114 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 October 31, 2015 : (in thousands) Cost basis Fair value One year or less $ 25,095 $ 25,070 Over one year and less than five years 15,118 15,035 Total $ 40,213 $ 40,105 As of October 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	9 Months Ended
	Oct. 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: October 31, 2015 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,105 $ — $ — 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 nine months ended October 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 October 31, Nine months ended October 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	9 Months Ended
	Oct. 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 nine months ended October 31, 2015 . The amount paid to this company under the terms of the consulting agreement for the three and nine months ended October 31, 2014 was $0 and $162,000 , respectively.

Summary of business and signi17

Summary of business and significant accounting policies (Policies)	9 Months Ended
	Oct. 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 October 31, 2015 and is included in other assets on the accompanying condensed consolidated balance sheet. During the three months ended October 31, 2015 , the Company purchased an approximate 2% ownership interest in a limited partnership that engages in the development of technology-based financial healthcare products. The Company determined there was no significant influence and therefore the investment was accounted for using the cost method of accounting. The investment was $500,000 as of October 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 October 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. The Company has not yet selected a transition method nor determined the effect of the standard on the ongoing financial reporting. In April 2015, the FASB issued ASU 2015-3, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which simplifies the presentation of debt issuance costs by requiring that such costs be presented as a deduction from the corresponding debt liability. In August 2015, the FASB issued ASU 2015-15, Interest - Imputed Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , which clarifies that entities may continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. The guidance is effective for financial statements issued for reporting periods beginning after December 15, 2015 and interim periods within the reporting periods and requires retrospective presentation; earlier adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies balance sheet classifications of deferred taxes by requiring all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The net current deferred tax asset as of October 31, 2015 was $2.0 million . The Company plans to early adopt this guidance on a prospective basis in the first quarter of fiscal year 2017.

Net income per share attribut18

Net income per share attributable to common stockholders (Tables)	9 Months Ended
	Oct. 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 October 31, Nine months ended October 31, 2015 2014 2015 2014 Numerator (basic and diluted): Net income $ 4,087 $ 3,049 $ 13,485 $ 8,795 Add back: accretion of redeemable convertible preferred stock — — — 4,021 Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock — (21 ) — (1,286 ) Less: undistributed income attributed to redeemable convertible preferred stockholders — (8 ) — (1,285 ) Net income attributable to common stockholders for basic earnings per share $ 4,087 $ 3,020 $ 13,485 $ 10,245 Add back: dividend of redeemable convertible preferred stock — 15 — 1,286 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 — 1 — 1,285 Net income attributable to common stockholders for diluted earnings per share $ 4,087 $ 3,036 $ 13,485 $ 9,530 Denominator (basic): Weighted-average common shares outstanding 57,353 53,678 56,397 23,232 Denominator (diluted): Weighted-average common shares outstanding 57,353 53,678 56,397 23,232 Effect of potential dilutive securities: Weighted-average dilutive effect of stock options 1,910 2,944 2,267 3,290 Weighted-average dilutive effect of common shares from stock warrants — 3 — 1,634 Dilutive effect from preferred stock assuming conversion — 928 — 21,896 Weighted-average common shares outstanding 59,263 57,553 58,664 50,052 Net income per share attributable to common stockholders: Basic $ 0.07 $ 0.06 $ 0.24 $ 0.44 Diluted $ 0.07 $ 0.05 $ 0.23 $ 0.19

Property and equipment (Tables)

Property and equipment (Tables)	9 Months Ended
	Oct. 31, 2015
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment consisted of the following as of October 31, 2015 and January 31, 2015 : (in thousands) October 31, 2015 January 31, 2015 Leasehold improvements $ 703 $ 506 Furniture and fixtures 1,555 1,317 Computer equipment 5,681 4,013 Property and equipment, gross 7,939 5,836 Accumulated depreciation (4,325 ) (3,259 ) Property and equipment, net $ 3,614 $ 2,577

Intangible assets and goodwill

Intangible assets and goodwill (Tables)	9 Months Ended
	Oct. 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 October 31, 2015 and January 31, 2015 : (in thousands) October 31, 2015 January 31, 2015 Amortized intangible assets: Capitalized software development costs $ 14,432 $ 10,468 Software 5,703 4,695 Acquired intangible member assets 58,750 24,563 Intangible assets, gross 78,885 39,726 Accumulated amortization (17,849 ) (13,185 ) Intangible assets, net $ 61,036 $ 26,541

Stock options (Tables)

Stock options (Tables)	9 Months Ended
	Oct. 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 972 $25.39 - 28.69 $ 26.58 Exercised (1,743 ) $0.10 - 18.93 $ 1.00 Forfeited (153 ) $0.80 - 26.66 $ 17.31 Outstanding as of October 31, 2015 5,533 $0.10 - 28.69 $ 10.02 7.15 $ 125,550 Vested and expected to vest as of October 31, 2015 5,319 $ 9.72 7.08 $ 122,313 Exercisable as of October 31, 2015 2,615 $ 2.09 5.22 $ 80,095
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 October 31, Nine months ended October 31, 2015 2014 2015 2014 Expected dividend yield — % — % — % —% Expected stock price volatility 38.4 % 32.9 % 38.4% - 40.3% 32.9% Risk-free interest rate 1.56% - 1.70% 1.93 % 1.47% - 1.72% 1.93% - 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 October 31, Nine months ended October 31, (in thousands) 2015 2014 2015 2014 Cost of services $ 304 $ 24 $ 740 $ 94 Sales and marketing 218 4 705 145 Technology and development 290 31 677 116 General and administrative 671 268 2,132 438 Total stock-based compensation expense $ 1,483 $ 327 $ 4,254 $ 793

Cash, cash equivalents and ma22

Cash, cash equivalents and marketable securities (Tables)	9 Months Ended
	Oct. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities	Cash, cash equivalents and marketable securities as of October 31, 2015 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 85,009 $ — $ — $ 85,009 Marketable securities: Mutual funds 40,213 36 (144 ) 40,105 Total cash, cash equivalents and marketable securities $ 125,222 $ 36 $ (144 ) $ 125,114 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 October 31, 2015 : (in thousands) Cost basis Fair value One year or less $ 25,095 $ 25,070 Over one year and less than five years 15,118 15,035 Total $ 40,213 $ 40,105

Fair value (Tables)

Fair value (Tables)	9 Months Ended
	Oct. 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: October 31, 2015 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,105 $ — $ —
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 nine months ended October 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 October 31, Nine months ended October 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 signi24

Summary of business and significant accounting policies (Details) - USD ($) $ / shares in Units, $ in Thousands	May. 11, 2015	Oct. 31, 2015	Oct. 31, 2015	Oct. 31, 2014	Jan. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Ownership percentage					22.00%
Equity method investments		$ 281	$ 281
Cost Method Investment, Ownership Percentage		2.00%	2.00%
Cost Method Investments		$ 500	$ 500
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)			1,743,000
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
Deferred tax asset		$ 2,035	$ 2,035		$ 1,764
Payments to acquire intangible assets		33,800	33,821	$ 0
Other Expense
Business Acquisition [Line Items]
Acquisition costs		$ 187	$ 474
Common Stock
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 attribut25

Net income per share attributable to common stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Earnings Per Share [Abstract]
Net income	$ 4,087	$ 3,049	$ 13,485	$ 8,795
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	(21)	0	(1,286)
Less: undistributed income attributed to redeemable convertible preferred stockholders	0	(8)	0	(1,285)
Net income attributable to common stockholders for basic earnings per share	4,087	3,020	13,485	10,245
Add back: dividend of redeemable convertible preferred stock	0	15	0	1,286
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	1	0	1,285
Net income attributable to common stockholders for diluted earnings per share	$ 4,087	$ 3,036	$ 13,485	$ 9,530
Basic (in shares)	57,353	53,678	56,397	23,232
Weighted-average common shares outstanding (in shares)	57,353	53,678	56,397	23,232
Weighted-average dilutive effect of stock options (in shares)	1,910	2,944	2,267	3,290
Weighted-average dilutive effect of common shares from stock warrants (in shares)	0	3	0	1,634
Dilutive effect from preferred stock assuming conversion (in shares)	0	928	0	21,896
Weighted-average common shares outstanding (in shares)	59,263	57,553	58,664	50,052
Basic (in dollars per share)	$ 0.07	$ 0.06	$ 0.24	$ 0.44
Diluted (in dollars per share)	$ 0.07	$ 0.05	$ 0.23	$ 0.19

Net income per share attribut26

Net income per share attributable to common stockholders (Anti-dilutive securities) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	817	322	726	164

Property and equipment (Schedul

Property and equipment (Schedule of property and equipment) (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Jan. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,939	$ 5,836
Accumulated depreciation	(4,325)	(3,259)
Property and equipment, net	3,614	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	1,555	1,317
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,681	$ 4,013

Property and equipment (Narrati

Property and equipment (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 389	$ 290	$ 1,100	$ 776

Intangible assets and goodwil29

Intangible assets and goodwill (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Payments to acquire intangible assets	$ 33,800,000		$ 33,821,000	$ 0
Capitalized software development costs	1,500,000	$ 1,400,000	4,000,000	3,800,000
Software development costs incurred and expensed	2,000,000	1,200,000	5,400,000	3,200,000
Amortization expense	1,700,000	1,300,000	4,700,000	3,400,000
Change in goodwill	$ 0	$ 0	$ 0	$ 0

Intangible assets and goodwil30

Intangible assets and goodwill (Schedule of finite-lived intangible assets) (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Jan. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 78,885	$ 39,726
Accumulated amortization	(17,849)	(13,185)
Intangible assets, net	61,036	26,541
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	14,432	10,468
Software
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	5,703	4,695
Acquired intangible member assets
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 58,750	$ 24,563

Commitment and contingencies (D

Commitment and contingencies (Details) $ in Thousands	Jul. 01, 2015USD ($)lease_renewal	May. 15, 2015USD ($)lease_renewal	Oct. 31, 2015USD ($)	Oct. 31, 2014USD ($)	Oct. 31, 2015USD ($)	Oct. 31, 2014USD ($)
Operating Leased Assets [Line Items]
Lease expense for office space			$ 556	$ 374	$ 1,600	$ 944
Expenses for other agreements			$ 66	$ 67	182	$ 166
Amended Lease Agreement
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
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					$ 470

Indebtedness (Details)

Indebtedness (Details) - Line of Credit - Secured Revolving Credit Facility	Sep. 30, 2015USD ($)	Oct. 31, 2015
Debt Instrument [Line Items]
Secured revolving credit facility, aggregate principal	$ 100,000,000
Credit facility, deferred finance costs, net	$ 303,000
Minimum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.20%
Interest coverage ratio covenant minimum		3
Minimum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable rate borrowing spread	1.50%
Minimum | Customary Base Rate
Debt Instrument [Line Items]
Variable rate borrowing spread	0.50%
Maximum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.30%
Debt Instrument, Covenant Description, Leverage Ratio		3
Maximum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable rate borrowing spread	2.00%
Maximum | Customary Base Rate
Debt Instrument [Line Items]
Variable rate borrowing spread	1.00%

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014	Jan. 31, 2015
Income Tax Disclosure [Abstract]
Income tax provision	$ 2,338	$ 1,100	$ 7,773	$ 5,047
Effective tax rate	36.40%	26.50%	36.60%	36.50%
Net impact of discrete tax items on effective tax rate		12.10%		3.10%
Unrecognized tax benefits	$ 329		$ 329		$ 300
Net unrecognized tax benefits	20		20		$ 20
Unrecognized tax benefits that would impact effective tax rate	248		248
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	9 Months Ended	12 Months Ended
	Oct. 31, 2015	Jan. 31, 2015
Number of options
Opening balance (shares)	6,457
Granted (shares)	972
Exercised (shares)	(1,743)
Forfeited (shares)	(153)
Ending balance (shares)	5,533	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)	28.69
Exercised, minimum (usd per share)	0.10
Exercised, maximum (usd per share)	18.93
Forfeited, minimum (usd per share)	0.80
Forfeited, maximum (usd per share)	26.66
Ending balance, minimum (usd per share)	0.10	$ 0.10
Ending balance, maximum (usd per share)	28.69	25.45
Weighted- average exercise price (usd per share)
Opening balance (usd per share)	5.27
Granted (usd per share)	26.58
Exercised (usd per share)	1
Forfeited (usd per share)	17.31
Ending balance (usd per share)	$ 10.02	$ 5.27
Weighted- average contractual term (in years)	7 years 1 month 25 days	6 years 10 months 17 days
Aggregate intrinsic value	$ 125,550	$ 100,290
Vested and expected to vest, number of options (shares)	5,319
Vested and expected to vest, Weighted- average exercise price (usd per share)	$ 9.72
Vested and expected to vest, Weighted- average contractual term (in years)	7 years 1 month
Vested and expected to vest, Aggregate intrinsic value	$ 122,313
Exercisable, number of options	2,615
Exercisable, Weighted average exercise price (usd per share)	$ 2.09
Exercisable, Weighted average contractual term (in years)	5 years 2 months 20 days
Aggregate intrinsic value	$ 80,095

Stock options (Assumptions) (De

Stock options (Assumptions) (Details)	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 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)	38.40%	32.90%		32.90%
Risk-free interest rate (percentage)		1.93%
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)			38.40%
Risk-free interest rate (percentage)	1.56%		1.47%	1.93%
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)	1.70%		1.72%	2.24%
Expected life of options (in years)			6 years 3 months

Stock options (Narrative) (Deta

Stock options (Narrative) (Details) $ in Millions	9 Months Ended
	Oct. 31, 2015USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average vesting period of non-vested awards expected to vest	2 years 7 months
Unrecognized stock compensation expense to be recognized in future	$ 14.7

Stock options (Stock-based comp

Stock options (Stock-based compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,483	$ 327	$ 4,254	$ 793
Cost of services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	304	24	740	94
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	218	4	705	145
Technology and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	290	31	677	116
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 671	$ 268	$ 2,132	$ 438

Cash, cash equivalents and ma38

Cash, cash equivalents and marketable securities (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Jan. 31, 2015	Oct. 31, 2014	Jan. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Cash and cash equivalents, cost basis	$ 85,009	$ 111,005	$ 107,854	$ 13,917
Total cash, cash equivalents and marketable securities, cost basis	125,222	111,005
Marketable securities, gross unrealized gains	36	0
Marketable securities, gross unrealized losses	(144)	0
Cash and cash equivalents, fair value	85,009	111,005
Marketable securities, fair value	40,105	0
Total cash, cash equivalents and marketable securities, fair value	125,114	111,005
Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, cost basis	40,213	0
Marketable securities, gross unrealized gains	36	0
Marketable securities, gross unrealized losses	(144)	0
Marketable securities, fair value	$ 40,105	$ 0

Cash, cash equivalents and ma39

Cash, cash equivalents and marketable securities (Contract Maturity) (Details) $ in Thousands	Oct. 31, 2015USD ($)
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$ 25,095
Over one year and less than five years	15,118
Total	40,213
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
One year or less	25,070
Over one year and less than five years	15,035
Total	$ 40,105

Fair value (Details)

Fair value (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 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:	40,105		40,105
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		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Company owned by President and Chief Executive Officer
Related Party Transaction [Line Items]
Amounts paid under consulting agreement	$ 0	$ 0	$ 0	$ 162,000