Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2016 | Feb. 29, 2016 | Jul. 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 | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 57,767,697 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.3 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 83,641 | $ 111,005 |
Marketable securities, at fair value | 40,134 | 0 |
Total cash, cash equivalents and marketable securities | 123,775 | 111,005 |
Accounts receivable, net of allowance for doubtful accounts of $40 as of January 31, 2016 and 2015 | 14,308 | 9,054 |
Inventories | 620 | 625 |
Deferred tax asset | 2,642 | 1,764 |
Other current assets | 1,703 | 2,271 |
Total current assets | 143,048 | 124,719 |
Property and equipment, net | 3,506 | 2,577 |
Intangible assets, net | 66,840 | 26,541 |
Goodwill | 4,651 | 4,651 |
Other assets | 1,750 | 281 |
Total assets | 219,795 | 158,769 |
Current liabilities | ||
Accounts payable | 2,431 | 1,303 |
Accrued compensation | 7,776 | 5,301 |
Accrued liabilities | 1,899 | 2,227 |
Total current liabilities | 12,106 | 8,831 |
Long-term liabilities | ||
Deferred rent | 236 | 488 |
Deferred tax liability | 3,996 | 5,355 |
Total long-term liabilities | 4,232 | 5,843 |
Total liabilities | $ 16,338 | $ 14,674 |
Commitments and contingencies (see note 6) | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of January 31, 2016 and 2015 | $ 0 | $ 0 |
Common stock, $0.0001 par value, 900,000 shares authorized, 57,726 and 54,802 shares issued and outstanding as of January 31, 2016 and 2015, respectively | 6 | 5 |
Additional paid-in capital | 199,940 | 157,094 |
Accumulated other comprehensive loss | (98) | 0 |
Accumulated earnings (deficit) | 3,609 | (13,004) |
Total stockholders’ equity | 203,457 | 144,095 |
Total liabilities and stockholders’ equity | $ 219,795 | $ 158,769 |
Consolidated balance sheets (P
Consolidated balance sheets (Phantom) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 40 | $ 40 |
Preferred stock par value (dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value per share (dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (shares) | 57,726,000 | 54,802,000 |
Common stock, shares outstanding (shares) | 57,726,000 | 54,802,000 |
Consolidated statements of oper
Consolidated statements of operations and comprehensive income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Revenue | |||
Service revenue | $ 61,608 | $ 45,735 | $ 31,129 |
Custodial revenue | 37,755 | 24,374 | 18,955 |
Interchange revenue | 27,423 | 17,746 | 11,931 |
Total revenue | 126,786 | 87,855 | 62,015 |
Cost of revenue | |||
Service costs | 39,418 | 29,842 | 21,589 |
Custodial costs | 6,522 | 4,141 | 3,487 |
Interchange costs | 8,248 | 5,899 | 4,137 |
Total cost of revenue | 54,188 | 39,882 | 29,213 |
Gross profit | 72,598 | 47,973 | 32,802 |
Operating expenses | |||
Sales and marketing | 13,302 | 10,619 | 8,602 |
Technology and development | 16,832 | 10,501 | 7,142 |
General and administrative | 14,113 | 8,343 | 3,897 |
Amortization of acquired intangible assets | 2,208 | 1,637 | 1,637 |
Total operating expenses | 46,455 | 31,100 | 21,278 |
Income from operations | 26,143 | 16,873 | 11,524 |
Other expense | |||
Loss on revaluation of warrants | 0 | 0 | (614) |
Loss on revaluation of redeemable convertible preferred stock derivative | 0 | (735) | (5,363) |
Other expense, net | (589) | (374) | (173) |
Total other expense | (589) | (1,109) | (6,150) |
Income before income taxes | 25,554 | 15,764 | 5,374 |
Income tax provision | 8,941 | 5,598 | 4,141 |
Net income | 16,613 | 10,166 | 1,233 |
Net income (loss) attributable to common stockholders: | |||
Basic (in dollars) | 16,613 | 12,058 | (7,132) |
Diluted (in dollars) | $ 16,613 | $ 10,901 | $ (7,132) |
Net income (loss) per share attributable to common stockholders: | |||
Basic (dollars per share) | $ 0.29 | $ 0.39 | $ (1.26) |
Diluted (dollars per share) | $ 0.28 | $ 0.21 | $ (1.26) |
Weighted-average number of shares used in computing net income per share attributable to common stockholders: | |||
Basic (shares) | 56,719 | 31,181 | 5,651 |
Diluted (shares) | 58,863 | 51,856 | 5,651 |
Comprehensive income: | |||
Net income | $ 16,613 | $ 10,166 | $ 1,233 |
Unrealized loss on available-for-sale marketable securities, net of tax | (98) | 0 | 0 |
Comprehensive income | $ 16,515 | $ 10,166 | $ 1,233 |
Consolidated statements of rede
Consolidated statements of redeemable convertible preferred stock and stockholders' equity (deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Convertible preferred stock | Common stock | Common stock warrants | Additional paid-in capital | Accumulated comprehensive loss | Accumulated earnings (deficit) |
Opening balance (shares) at Jan. 31, 2013 | 17,433 | ||||||
Opening balance at Jan. 31, 2013 | $ 41,186 | ||||||
Redeemable convertible preferred stock | |||||||
Conversion of preferred stock to common stock upon initial public offering (shares) | (84) | ||||||
Conversion of preferred stock to common stock upon initial public offering | $ (236) | ||||||
Redeemable convertible preferred stock accretion | $ 5,764 | ||||||
Ending balance (shares) at Jan. 31, 2014 | 17,349 | ||||||
Ending balance at Jan. 31, 2014 | $ 46,714 | ||||||
Opening balance (shares) at Jan. 31, 2013 | 6,738 | 5,386 | |||||
Opening balance at Jan. 31, 2013 | (6,399) | $ 8,990 | $ 1 | $ 3,679 | $ 0 | $ 0 | $ (19,069) |
Stockholders’ equity (deficit) | |||||||
Series D-3 redeemable convertible preferred stock cash dividend | (694) | (694) | |||||
Exercise of 1,084 warrants at $0.0682 per share for 2014 and 2,972 warrants at $0.8008 per share for 2015 (shares) | 1,084 | ||||||
Exercise of 1,084 warrants at $0.0682 per share for 2014 and 2,972 warrants at $0.8008 per share for 2015 | $ 1,202 | (1,345) | 2,547 | ||||
Exercise of 568 options at $0.9210 per share for 2014, 1,841 options at $1.3204 per share for 2015, and 1,951 options at $0.98 per share for 2016 (shares) | 568 | 568 | |||||
Exercise of 568 options at $0.9210 per share for 2014, 1,841 options at $1.3204 per share for 2015, and 1,951 options at $0.98 per share for 2016 | $ 523 | 523 | |||||
Stock-based compensation | 57 | 57 | |||||
Tax benefit on stock options exercised | 271 | 271 | |||||
Stock repurchased and retired-665,613 preferred shares (674,120 common stock equivalent shares), $5.00 per share (shares) | (582) | ||||||
Stock repurchased and retired-665,613 preferred shares (674,120 common stock equivalent shares), $5.00 per share | (3,135) | $ (861) | (2,274) | ||||
Redeemable convertible preferred stock accretion | (5,764) | (3,398) | (2,366) | ||||
Net income | 1,233 | 1,233 | |||||
Ending balance (shares) at Jan. 31, 2014 | 6,156 | 7,038 | |||||
Ending balance at Jan. 31, 2014 | $ (12,706) | $ 8,129 | $ 1 | 2,334 | 0 | 0 | (23,170) |
Ending balance (shares) at Jan. 31, 2014 | 17,349 | ||||||
Ending balance at Jan. 31, 2014 | $ 46,714 | ||||||
Ending balance (shares) at Jan. 31, 2014 | 6,156 | 7,038 | |||||
Ending balance at Jan. 31, 2014 | (12,706) | $ 8,129 | $ 1 | 2,334 | 0 | 0 | (23,170) |
Redeemable convertible preferred stock | |||||||
Conversion of preferred stock to common stock upon initial public offering (shares) | (17,349) | ||||||
Conversion of preferred stock to common stock upon initial public offering | (42,693) | ||||||
Redeemable convertible preferred stock accretion | $ (4,021) | ||||||
Ending balance (shares) at Jan. 31, 2015 | 0 | ||||||
Ending balance at Jan. 31, 2015 | $ 0 | ||||||
Stockholders’ equity (deficit) | |||||||
Series D-3 redeemable convertible preferred stock cash dividend | (347) | (347) | |||||
Issuance of common stock cash dividend | (50,000) | (50,000) | |||||
Exercise of 1,084 warrants at $0.0682 per share for 2014 and 2,972 warrants at $0.8008 per share for 2015 (shares) | 2,972 | ||||||
Exercise of 1,084 warrants at $0.0682 per share for 2014 and 2,972 warrants at $0.8008 per share for 2015 | $ 2,380 | (2,334) | 4,714 | ||||
Exercise of 568 options at $0.9210 per share for 2014, 1,841 options at $1.3204 per share for 2015, and 1,951 options at $0.98 per share for 2016 (shares) | 1,841 | 1,841 | |||||
Exercise of 568 options at $0.9210 per share for 2014, 1,841 options at $1.3204 per share for 2015, and 1,951 options at $0.98 per share for 2016 | $ 2,430 | 2,430 | |||||
Conversion of preferred stock to common stock upon initial public offering (shares) | (6,156) | 32,486 | |||||
Conversion of preferred stock to common stock upon initial public offering | 42,693 | $ (8,129) | $ 3 | 50,819 | |||
Issuance of common stock (shares) | 10,465 | ||||||
Issuance of common stock | 132,587 | $ 1 | 132,586 | ||||
Stock-based compensation | 2,525 | 2,525 | |||||
Tax benefit on stock options exercised | 3,429 | 3,429 | |||||
Redeemable convertible preferred stock accretion | 4,021 | 4,021 | |||||
Reclassification of series D-3 redeemable convertible preferred stock derivative liability | 6,917 | 6,917 | |||||
Net income | 10,166 | 10,166 | |||||
Ending balance (shares) at Jan. 31, 2015 | 0 | 54,802 | |||||
Ending balance at Jan. 31, 2015 | $ 144,095 | $ 0 | $ 5 | 0 | 157,094 | 0 | (13,004) |
Ending balance (shares) at Jan. 31, 2016 | 0 | ||||||
Ending balance at Jan. 31, 2016 | $ 0 | ||||||
Stockholders’ equity (deficit) | |||||||
Exercise of 568 options at $0.9210 per share for 2014, 1,841 options at $1.3204 per share for 2015, and 1,951 options at $0.98 per share for 2016 (shares) | 1,951 | 1,951 | |||||
Exercise of 568 options at $0.9210 per share for 2014, 1,841 options at $1.3204 per share for 2015, and 1,951 options at $0.98 per share for 2016 | $ 1,915 | $ 1 | 1,914 | ||||
Issuance of common stock (shares) | 973 | ||||||
Issuance of common stock | 23,492 | 23,492 | |||||
Stock-based compensation | 5,883 | 5,883 | |||||
Tax benefit on stock options exercised | 11,557 | 11,557 | |||||
Other comprehensive loss, net of tax | (98) | (98) | |||||
Net income | 16,613 | 16,613 | |||||
Ending balance (shares) at Jan. 31, 2016 | 0 | 57,726 | |||||
Ending balance at Jan. 31, 2016 | $ 203,457 | $ 0 | $ 6 | $ 0 | $ 199,940 | $ (98) | $ 3,609 |
Consolidated statements of red6
Consolidated statements of redeemable convertible preferred stock and stockholders’ equity (deficit) (Parenthetical) - $ / shares | Jan. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Warrants exercised (shares) | 2,972,000 | 1,084,000 | ||
Exercise price of warrants | $ 0.8008 | $ 0.0682 | ||
Number of shares exercised (shares) | 1,951,000 | 1,841,000 | 568,000 | |
Options, exercise price (usd per share) | $ 0.9800 | $ 1.3204 | $ 0.9210 | |
Repurchase price per share | $ 5 | $ 5 | ||
Common stock | ||||
Number of stock repurchased, common stock equivalent | 674,000 | 674,120,000 | ||
Series B, Series C and Series D-3 Preferred Stock | ||||
Number of stock repurchased, common stock equivalent | 660,000 | 665,613,000 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 16,613 | $ 10,166 | $ 1,233 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 8,601 | 5,890 | 4,270 |
Loss on revaluation of warrant liability | 0 | 0 | 614 |
Loss on revaluation of redeemable convertible preferred stock derivative | 0 | 735 | 5,363 |
Loss on other investments | 0 | 24 | 0 |
Bad debt expense | 24 | 31 | 0 |
Imputed interest on notes payable | 0 | 0 | 38 |
Amortization of deferred financing costs | 23 | 0 | 0 |
Deferred taxes | (2,178) | 1,593 | 3,552 |
Stock-based compensation | 5,883 | 2,525 | 57 |
Changes in operating assets and liabilities: | |||
Restricted cash | 0 | 0 | 791 |
Accounts receivable | (5,174) | (3,380) | (1,546) |
Inventories | 5 | (234) | (118) |
Other assets | (107) | (1,608) | (272) |
Accounts payable | 1,011 | (1,156) | 1,492 |
Due to trust | 0 | 0 | (791) |
Accrued compensation | 2,475 | 1,167 | 1,334 |
Accrued liabilities | (383) | (802) | 1,808 |
Income taxes payable | 0 | 0 | (77) |
Deferred rent | (252) | 95 | 267 |
Net cash provided by operating activities | 26,541 | 15,046 | 18,015 |
Cash flows from investing activities: | |||
Purchase of marketable securities | (40,291) | 0 | 0 |
Purchase of property and equipment | (2,376) | (1,712) | (1,595) |
Purchase of software and capitalized software development costs | (6,896) | (6,420) | (3,844) |
Note receivable from shareholder | 0 | 0 | 800 |
Purchase of other investments | (500) | (305) | 0 |
Acquisition of intangible member assets | (40,489) | 0 | 0 |
Net cash used in investing activities | (90,552) | (8,437) | (4,639) |
Cash flows from financing activities: | |||
Repayment of notes payable | 0 | 0 | (2,167) |
Dividend payments | 0 | (50,347) | (694) |
Proceeds from initial public offering, net of payments for offering costs | 0 | 132,587 | 0 |
Repurchase of redeemable convertible preferred stock and convertible preferred stock | 0 | 0 | (3,371) |
Proceeds from follow-on offering, net of payments for offering costs | 23,492 | 0 | 0 |
Proceeds from exercise of common stock options | 1,915 | 2,430 | 523 |
Proceeds from exercise of common stock warrants | 0 | 2,380 | 74 |
Tax benefit from exercise of common stock options | 11,557 | 3,429 | 271 |
Deferred financing costs paid | (317) | 0 | 0 |
Net cash provided by (used in) financing activities | 36,647 | 90,479 | (5,364) |
(Decrease) increase in cash and cash equivalents | (27,364) | 97,088 | 8,012 |
Beginning cash and cash equivalents | 111,005 | 13,917 | 5,905 |
Ending cash and cash equivalents | 83,641 | 111,005 | 13,917 |
Supplemental cash flow data: | |||
Interest expense paid in cash | (51) | 0 | (38) |
Income taxes paid in cash, net of refunds received | 1,356 | (1,504) | (353) |
Supplemental disclosures of non-cash investing and financing activities: | |||
Purchase price adjustment of acquired intangible members assets | 104 | 0 | 0 |
Purchases of property and equipment included in accounts payable or accrued liabilities at period end | 45 | 0 | 0 |
Purchases of software and capitalized software development costs included in accounts payable or accrued liabilities at period end | 127 | 193 | 0 |
Conversion of preferred stock to common stock | 0 | 50,822 | 0 |
Preferred stock accretion | 0 | 4,021 | (5,764) |
Reclassification of series D-3 redeemable convertible preferred stock derivative liability | 0 | 6,917 | 0 |
Conversion of common stock warrants to common stock | 0 | 2,334 | 1,128 |
Series D-3 redeemable convertible preferred stock dividend | $ 0 | $ 0 | $ 0 |
Summary of business and signifi
Summary of business and significant accounting policies | 12 Months Ended |
Jan. 31, 2016 | |
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 ("HSAs"), Health Reimbursement Arrangements ("HRAs"), and Flexible Spending Accounts ("FSAs")) for health plans, insurance companies, and third-party administrators. In February 2006, HealthEquity, Inc. received designation by the U.S. Department of Treasury to act as a passive non-bank custodian, which allows HealthEquity, Inc. to hold custodial assets in trust for individual account holders. As of December 31, 2015, the Company’s year-end for trust and tax purposes, custodial assets held in trust were $3.2 billion . The Company’s operations consist primarily of servicing HSAs through the use of the Company’s proprietary technology. HSAs are tax-deductible, custodial accounts owned by individuals for health care purchases. An HSA-based health plan has two fundamental components—a High Deductible Health Plan ("HDHP"), which is required to qualify for the tax-deductible contributions to a participant’s HSA, and a custodial HSA. As a passive non-bank custodian, according to the Internal Revenue Code ("IRC") 1.408-2(e)(5)(ii)(B)(2), the Company must maintain net worth (assets minus liabilities) greater than 2% of custodial funds held in trust at each year-end in order to take on additional custodial assets. As of December 31, 2015, the Company’s year-end for trust and tax purposes, the net worth of the Company as defined in Treasury Regulation §104-2(e)(5)(ii) by subtracting the Company’s total liabilities from the total assets, resulted in a calculated net worth of $201,324,812 . The amount of supportable custodial funds calculated by dividing the Company’s net worth (defined above) by two percent, pursuant to the requirements of Treasury Regulation §104-2(e)(5)(ii)(C) as of December 31, 2015, was $10,066,240,600 . The amount that the supportable custodial funds exceeded the actual amount of custodial funds as of December 31, 2015 was $6,845,689,390 . In the event the Company is unable to comply with the aforementioned net worth requirement, IRC 1.408-2(e)(5)(ii)(C)(2) requires the Company, as a passive non-bank custodian, to take whatever lawful steps necessary, including the relinquishment of fiduciary accounts, to ensure that its net worth exceeds 1% of the custodial assets. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. This summary of significant accounting policies of the Company is presented to assist in understanding the Company's consolidated financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the consolidated financial statements. The Company has revised the names of certain financial statement line items to more accurately describe the Company's operations. Amounts previously referred to as Account fee revenue are now referred to as Service revenue. Amounts previously referred to as Custodial fee revenue are now referred to as Custodial revenue. Amounts previously referred to as Card fee revenue are now referred to as Interchange revenue. Amounts previously referred to as Account costs are now referred to as Service costs. The Company has reclassified certain financial statement line items to conform with the newly revised financial statement line items. Amounts previously referred to as other revenue are now included in the Service revenue financial statement line item. Amounts previously referred to as Other costs are now included in the Service costs financial statement line item. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. Principles of consolidation —The 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 that is accounted for using the equity method of accounting. The investment was approximately $281,000 as of January 31, 2016 and is included in other assets on the accompanying consolidated balance sheets. During the year ended January 31, 2016 , 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. Under the cost method of accounting, the fair value of an investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The investment was $500,000 as of January 31, 2016 and is included in other assets on the accompanying consolidated balance sheet. All significant intercompany balances and transactions have been eliminated. Segments —The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. Cash, cash equivalents and restricted cash —The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents were held in institutions in the U.S. and include deposits in a money market account that was unrestricted as to withdrawal or use. Restricted cash represents custodial funds held temporarily by the Company in its accounts with a corresponding due to trust liability account. 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 January 31, 2016, 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 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, net of the related tax effect. 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 consolidated statements of operations and comprehensive income. Accounts receivable —Accounts receivable represent monies due to the Company for monthly service revenue, custodial revenue and interchange revenue. As of January 31, 2016 , accounts receivable consisted of $6.9 million of service revenue, $4.2 million of custodial revenue, and $3.1 million of interchange revenue. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivable amounts. In evaluating the Company’s ability to collect outstanding receivable balances, the Company considers various factors including the age of the balance, the creditworthiness of the customer, which is assessed based on ongoing credit evaluations and payment history, and the customer’s current financial condition. As of January 31, 2016 and 2015 , the Company had allowance for doubtful accounts of $40,000 . Inventories —Inventories consist of new member and participant supplies and are recorded at the lower of cost or market using an average cost basis. Other assets —Other assets consist primarily of prepaid expenditures, income tax receivables, and various other assets. Amounts expected to be recouped or recognized over a period of twelve months or less have been classified as current in the accompanying consolidated balance sheets. Property and equipment —Property and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of individual assets. The useful life for leasehold improvements is the shorter of the estimated useful life or the term of the lease ranging from 3-5 years. The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Maintenance and repairs are expensed when incurred, and improvements that extend the economic useful life of an asset are capitalized. Gains and losses on the disposal of property and equipment are reflected in operating expenses. Capitalized software development costs —We account for the costs of computer software developed or obtained for internal use in accordance with Accounting Standards Codification (“ASC”) 350-40, “Internal-Use Software.” Costs incurred during operation and post-implementation stages are charged to expense. Costs incurred that are directly attributable to developing or obtaining software for internal use incurred in the application development stage are capitalized. Management’s judgment is required in determining the point when various projects enter the stages at which costs may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. See Note 5—Intangible Assets and Goodwill for additional information. Intangible assets, net —Intangible assets are carried at cost and amortized, typically, on a straight-line basis over their estimated useful lives, which is 3-5 years for capitalized software development costs and acquired technology rights, and 15 years for certain acquired intangible member assets. The acquired intangible member assets are the result of various acquisitions of HSA portfolios. A significant portion of the purchase price from each acquisition has been allocated to the acquired HSA assets, which consists of the contractual rights to administer the activities related to the individual health savings accounts acquired. The Company analyzed the historical attrition and depletion rates of member accounts and determined that an average useful life of 15 years and the use of a straight-line amortization method are appropriate to reflect the pattern over which the economic benefits of existing member assets are realized. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There have been no impairment charges recorded in any of the periods presented in the accompanying consolidated financial statements. See Note 5—Intangible Assets and Goodwill for additional information. Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment annually on January 31 or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company’s impairment tests are based on a single operating segment and reporting unit structure. The goodwill impairment test involves a two-step process. The first step involves comparing the Company's market capitalization to the carrying value of the reporting unit, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step of the test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company’s annual goodwill impairment test resulted in no impairment charges in any of the periods presented in the accompanying consolidated financial statements. Deferred rent —The Company recognizes rental expense for its office lease on a straight-line basis over the lease term. Deferred rent represents the difference between actual operating lease payments due and straight-line rent expense. The excess is recorded as a deferred credit in the early periods of the lease, when cash payments are generally lower than straight-line rent expense, and is reduced in the later periods of the lease when payments begin to exceed the straight-line expense. Initial public offering —On August 5, 2014, the Company consummated its initial public offering ("IPO") and issued and sold 10,465,000 shares of its common stock at a public offering price of $14.00 per share, less the underwriters' discount. The Company received net proceeds of approximately $132.6 million after deducting underwriters' discounts and commissions of approximately $10.2 million and other offering expenses payable by the Company of approximately $3.7 million . The underwriting discounts and commissions and other offering expenses were recorded as an offset against the IPO proceeds in additional paid-in capital upon the closing of the IPO on August 5, 2014. 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. Capital structure —On July 14, 2014, the Company's board of directors approved an amended and restated certificate of incorporation, pursuant to which the total number of shares of all classes of capital stock that the Company is authorized to issue is 1,000,000,000 shares, including 900,000,000 shares of common stock and 100,000,000 shares of preferred stock, par value $0.0001 per share. The amended and restated certificate of incorporation was filed with the Secretary of State of the State of Delaware and became effective on August 5, 2014 in connection with the completion of the IPO. On July 14, 2014, the Company's board of directors declared a cash dividend in an aggregate amount of $50.0 million on shares of the Company's common stock outstanding on August 4, 2014 (after giving effect to the conversion of all outstanding convertible preferred stock and redeemable convertible preferred stock into shares of common stock). The terms of each of the Company's stock plans, including the 2003 Director Stock Plan, 2003 Stock Plan, 2005 Stock Plan, 2006 Stock Plan, 2009 Stock Plan and the 2014 Equity Incentive Plan requires an adjustment to outstanding stock options to prevent dilution of the holders’ interests as a result of the foregoing special dividend. Accordingly, the Company's board of directors approved an adjustment to reduce the exercise price by $1.00 of each of the stock options outstanding as of the record date, August 4, 2014, excluding those options granted on July 30, 2014 in connection with the IPO. The reduction of the exercise price to stock options outstanding as of the record date, August 4, 2014, resulted in no incremental compensation expense. As of the close of business on August 4, 2014, all of the Company's redeemable convertible preferred stock and convertible preferred stock converted into 32,486,588 shares of common stock. Revenue recognition —The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been provided, the price of services is fixed or determinable, and collection is reasonably assured. The Company generates revenue primarily from service revenue (previously referred to as account fee revenue), custodial revenue (previously referred to as custodial fee revenue), interchange revenue (previously referred as card fee revenue). The Company earns service revenue from the fees paid by health plan partners, employer partners or individual members for administration services provided in connection with the tax-advantaged HSAs, HRAs and FSAs the Company administers. These fees are generally based on a tiered structure fixed for the duration of the contract agreement with health plan or employer partners, which is typically three to five years. The fees are paid on a monthly basis and revenue is recognized monthly as services are rendered under the Company’s written service agreements. The Company earns custodial revenue from HSA custodial assets held in trust. As a non-bank custodian, the Company deposits HSA cash with various custodial financial institutions having contract terms from three to five years and either a fixed or variable interest rate. These deposits are FDIC insured for each individual HSA. The Company also invests HSA cash in an annuity contract with a insurance company partner. HSA investment balances are deposited with the custodial investment partner from whom the Company receives an administrative and recordkeeping fee. The Company recognizes this revenue in the month in which it is earned. The Company earns interchange revenue from card transactions when members are paying their healthcare claims using a card issued by the Company. The Company recognizes this revenue in the month in which it is earned. Cost of revenue —The Company incurs cost of revenue related to servicing member accounts, managing customer and partner relationships, and processing reimbursement claims. Expenditures include personnel-related costs, depreciation, amortization, stock-based compensation, common expense allocations, new member and participant supplies and other operating costs of the Company’s related member account servicing departments. Other components of the Company’s cost of revenue sold include interest paid to members on custodial assets held in trust and interchange costs incurred in connection with processing card transactions initiated by members. Stock-based compensation —For stock options granted to team members, the Company recognizes compensation expense for all stock-based awards based on the grant date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to non-team members is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the non-employee. For awards with performance conditions, we evaluate the probability of achieving the performance criteria and of the number of shares that are expected to vest, and compensation expense is then adjusted to reflect the number of shares expected to vest and the requisite service period. For awards with performance conditions, compensation expense is recognized using the graded-vesting attribution method in accordance with the provisions of FASB ASC Topic 718, Compensation—Stock Compensation ("Topic 718") . Upon the exercise of a stock option, common shares are issued from authorized, but not outstanding, common stock. Income tax provision (benefit) —The Company accounts for income taxes and the related accounts under the liability method as set forth in the authoritative guidance for accounting for income taxes. Under this method, current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, for net operating losses, and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for when it is more likely than not that some or all of the deferred tax assets may not be realized in future years. After weighing both the positive and negative evidence, the Company believes that it is more likely than not that all deferred tax assets will be realized as of January 31, 2016 . During the year ended January 31, 2014 , the a valuation allowance of $29,000 was released due to the associated state net operating losses expiring unutilized. The release of the valuation allowance was recorded as a tax benefit on the Company’s consolidated financial statements during the year ended January 31, 2014. As of January 31, 2016 , 2015 and 2014, no valuation allowance remained on the Company’s consolidated financial statements. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in a tax return using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities, based on the technical merits of the position. For tax positions that are more likely than not to be sustained upon audit, the second step is to measure the tax benefit in the financial statements as the largest benefit that has a greater than 50% likelihood of being sustained upon settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as a component of other expense in the Consolidated Statements of Operations and Comprehensive Income. Significant judgment is required to evaluate uncertain tax positions. Changes in facts and circumstances could have a material impact on the Company’s effective tax rate and results of operations. Comprehensive income —Comprehensive income is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources, including unrealized gains and losses on marketable securities. Asset acquisitions —During the year ended January 31, 2016, the Company acquired the rights to be the custodian of the The Bancorp Bank ("Bancorp") and M&T Bank ("M&T") HSA portfolios. The Company paid $34.2 million and $6.2 million in cash, respectively, 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 acquisitions were 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 January 31, 2016, the purchase prices of approximately $34.2 million and $6.2 million were 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 consolidated statement of operations. During the year ended January 31, 2016, the Company incurred an expense of $471,000 , for acquisition-related activity. There were no such business combinations during the years ended January 31, 2016, 2015 and 2014. Concentration of market risk —The Company derives a substantial portion of its revenue from providing services for healthcare accounts. A significant downturn in this market or changes in state and/or federal laws impacting the preferential tax treatment of healthcare accounts could have a material adverse effect on the Company’s results of operations. For the years ended January 31, 2016 , 2015 and 2014 , no one customer accounted for greater than 10% of revenue or accounts receivable. Concentration of credit risk —Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash. The Company maintains its cash and cash equivalents in bank and other depository accounts, which, at times, may exceed federally insured limits. The Company’s cash and cash equivalents held in banks as of January 31, 2016 was $83.6 million , of which $750,000 was covered by federal depository insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. The Company’s accounts receivable balance as of January 31, 2016 was $14.3 million . The Company has not experienced any significant write-offs to accounts receivable and believes that it is not exposed to significant credit risk with respect to accounts receivable. Interest rate risk —The Company has entered into depository agreements with financial institutions for its custodial cash deposits. The contracted interest rates were negotiated at the time the depository agreements were executed. A significant reduction in prevailing interest rates may make it difficult for the Company to continue to place custodial deposits at the current contracted rates. Use of estimates —The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made estimates for the allowance for doubtful accounts, capitalized software development costs, evaluating goodwill and long-lived assets for impairment, useful lives of property and equipment and intangible assets, accrued compensation, accrued liabilities, grant date fair value of stock options and income taxes. Actual results could differ from those estimates. 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 2015-03, 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 Company is currently evaluating the timing of adoption and the potential effect of this ASU on the consolidated financial statements. 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 January 31, 2016 was $2.6 million . The Company plans to early adopt this guidance on a prospective basis in the first quarter of fiscal year 2017. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities. The amendments in this ASU revise an entity's accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted for the presentation of certain fair value changes for financial liabilities measured at fair value. The Company is currently evaluating the timing of adoption and the potential effect of this ASU on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure for both parties to a contract (i.e. lessees and lessors). ASC 842 supersedes the previous leases standard, ASC 840 leases |
Net income (loss) per share att
Net income (loss) per share attributable to common stockholders | 12 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net income (loss) 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 years ended January 31, 2015 and 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) Year ended January 31, 2016 2015 2014 Numerator (basic and diluted): Net income $ 16,613 $ 10,166 $ 1,233 Add back (deduction): accretion of redeemable convertible preferred stock — 4,021 (5,764 ) Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock — (1,286 ) (2,601 ) Less: undistributed income attributed to redeemable convertible preferred stockholders — (843 ) — Net income (loss) attributable to common stockholders for basic earnings per share $ 16,613 $ 12,058 $ (7,132 ) Add back: dividend of redeemable convertible preferred stock — 1,286 — Add back (deduction): 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 — 843 — Net income (loss) attributable to common stockholders for diluted earnings per share $ 16,613 $ 10,901 $ (7,132 ) Denominator (basic): Weighted-average common shares outstanding 56,719 31,181 5,651 Denominator (diluted): Weighted-average common shares outstanding 56,719 31,181 5,651 Effect of potential dilutive securities: Weighted-average dilutive effect of stock options 2,144 3,071 — Weighted-average dilutive effect of common shares from stock warrants — 1,227 — Dilutive effect from preferred stock assuming conversion — 16,377 — Weighted-average common shares outstanding 58,863 51,856 5,651 Net income (loss) per share attributable to common stockholders: Basic $ 0.29 $ 0.39 $ (1.26 ) Diluted $ 0.28 $ 0.21 $ (1.26 ) For the year ended January 31, 2016 approximately 791,000 shares attributable to outstanding stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. For the years ended January 31, 2015 and 2014 , approximately 745,000 , and 33.2 million shares, respectively, attributable to outstanding series A and series B convertible preferred stock, series C, D-1, D-2 and D-3 redeemable convertible preferred stock, common stock warrants, and stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. |
Cash, cash equivalents and mark
Cash, cash equivalents and marketable securities | 12 Months Ended |
Jan. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities as of January 31, 2016 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 83,641 $ — $ — $ 83,641 Marketable securities: Mutual funds 40,292 78 (236 ) 40,134 Total cash, cash equivalents and marketable securities $ 123,933 $ 78 $ (236 ) $ 123,775 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 January 31, 2016 : (in thousands) Cost basis Fair value One year or less $ 25,134 $ 25,108 Over one year and less than five years 15,158 15,026 Total $ 40,292 $ 40,134 As of January 31, 2016 , there were no marketable securities that were other-than-temporarily impaired or in an unrealized loss position for more than twelve consecutive months. |
Property and equipment
Property and equipment | 12 Months Ended |
Jan. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consisted of the following as of January 31, 2016 and January 31, 2015 : (in thousands) January 31, 2016 January 31, 2015 Leasehold improvements $ 700 $ 506 Furniture and fixtures 1,592 1,317 Computer equipment 5,825 4,013 Property and equipment, gross 8,117 5,836 Accumulated depreciation (4,611 ) (3,259 ) Property and equipment, net $ 3,506 $ 2,577 Depreciation expense for the years ended January 31, 2016 , 2015 and 2014 was $1.5 million , $1.1 million and $728,000 respectively. |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets and goodwill | During the year ended January 31, 2016 , the Company acquired the rights to be custodian of the Bancorp and M&T HSA portfolios for $34.2 million and $6.2 million , respectively. The costs, including transaction costs, were allocated to acquired intangible member assets as of January 31, 2016 . 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 years ended January 31, 2016 , 2015 and 2014 , the Company capitalized software development costs of $5.6 million , $5.2 million and $1.8 million , respectively, related to significant enhancements and upgrades to its proprietary system. The gross carrying amount and associated accumulated amortization of intangible assets is as follows as of January 31, 2016 and January 31, 2015 : (in thousands) January 31, 2016 January 31, 2015 Amortized intangible assets: Capitalized software development costs $ 16,104 $ 10,468 Software 5,994 4,695 Acquired intangible member assets 64,948 24,563 Intangible assets, gross 87,046 39,726 Accumulated amortization (20,206 ) (13,185 ) Intangible assets, net $ 66,840 $ 26,541 During the years ended January 31, 2016 , 2015 and 2014 , the Company incurred and expensed a total of $7.6 million , $4.6 million and $2.4 million , respectively, in software development costs primarily related to the post-implementation and operation stages of its proprietary software. Amortization expense for the years ended January 31, 2016 , 2015 and 2014 was $7.1 million , $4.8 million and $3.5 million , respectively. Estimated amortization expense for the years ending January 31 is as follows: Year ending January 31, (in thousands) 2017 $ 9,417 2018 7,679 2019 5,867 2020 4,518 2021 4,330 Thereafter 35,029 Total $ 66,840 All of the Company’s goodwill was generated from the acquisition of First Horizon MSaver, Inc. on August 11, 2011. There have been no changes to the goodwill carrying value during the years ended January 31, 2016 and 2015 . |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Property, colocation, equipment, and license agreements —The Company leases office space, data storage facilities, equipment and certain maintenance agreements under long-term, non-cancelable operating leases. Future minimum lease payments required under non-cancelable obligations as of January 31, 2016 are as follows: Year ending January 31, (in thousands) Office lease Other agreements Total 2017 $ 1,685 $ 207 $ 1,892 2018 1,587 54 1,641 2019 1,627 35 1,662 2020 1,608 35 1,643 2021 1,790 32 1,822 Thereafter 9,983 4 9,987 Total $ 18,280 $ 367 $ 18,647 The Company also has agreements with several entities for access to technology and software. The agreements are based on usage, and there are no minimum required monthly payments. 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 their 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 an option for the Company 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 an option for the Company 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 year ended January 31, 2016. Lease expense for office space for the years ended January 31, 2016 , 2015 and 2014 totaled $2.1 million , $1.6 million and $935,000 , respectively. Expense for other agreements for the years ended January 31, 2016 , 2015 and 2014 totaled $249,000 , $148,000 and $214,000 , respectively. Processing services agreement —During the year ended January 31, 2016, the Company amended its merchant processing services agreement with a vendor. The agreement expires December 31, 2020 and requires the Company to pay a dollar minimum processing fee based on the processing year of the agreement. The Company may terminate the agreement beginning January 1, 2020 by providing 180 days’ written notice. If the processing agreement is terminated prior to December 31, 2020, the Company is required to pay the vendor a termination fee, equal to 75% of the aggregate value of the minimum processing fees for the remaining years of the agreement, plus a portion of the account boarding incentive fee. Minimum processing fees required under the terms of the merchant processing services agreement are as follows: Year ending January 31, (in thousands) Minimum 2017 $ 825 2018 825 2019 825 2020 825 2021 825 For each of the years ended January 31, 2016 , 2015 and 2014 , the Company exceeded the minimum amounts required under the agreement. Contingencies —In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification —In accordance with the Company’s amended and restated Certificate of Incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been no claims to date and the Company has a director and officer insurance policy that may enable it to recover a portion of any amounts paid for future claims. Litigation —The Company may from time to time be involved in legal proceedings arising from the normal course of business. There are no pending or threatened legal proceedings as of January 31, 2016 , 2015 and 2014 . |
Indebtedness
Indebtedness | 12 Months Ended |
Jan. 31, 2016 | |
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 January 31, 2016. 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. During the year ended January 31, 2016 , the Company incurred $91,000 of interest expense associated to the Credit Agreement. 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. The Company was in compliance with these covenants as of January 31, 2016 . In connection with the Credit Agreement, the Company incurred $317,000 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 | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | The Income tax provision consisted of the following: Year ended January 31, (in thousands) 2016 2015 2014 Current: Federal $ 9,876 $ 3,574 $ 225 State 1,226 451 93 Total current tax provision $ 11,102 $ 4,025 $ 318 Deferred: Federal $ (1,772 ) $ 1,703 $ 3,622 State (389 ) (130 ) 201 Total deferred tax provision (benefit) $ (2,161 ) $ 1,573 $ 3,823 Total income tax provision $ 8,941 $ 5,598 $ 4,141 Total income tax provision differed from the amounts computed by applying the U.S. federal statutory income tax rate of 34% to income before income tax provision as a result of the following: Year ended January 31, (in thousands) 2016 2015 2014 Federal income tax provision at the statutory rate $ 8,688 $ 5,360 $ 1,827 State income tax provision, net of federal tax benefit 541 297 293 Non-deductible or non-taxable items 56 313 2,144 Federal research and development credit (371 ) (421 ) (160 ) Change in valuation allowance — — (29 ) Change in uncertain tax position reserves, net of indirect benefits 96 54 43 Other items, net (69 ) (5 ) 23 Total income tax provision $ 8,941 $ 5,598 $ 4,141 Our effective income tax rate for the years ended January 31, 2016 , 2015 and 2014 was 35.0% , 35.5% , and 77.1% , respectively. The difference between the effective income tax rate and the U.S. federal statutory income tax rate each period is impacted by a number of factors, including the relative mix of earnings among state jurisdictions, credits, and other discrete items. The decrease in the effective tax rate for the years ended January 31, 2016 and 2015 was primarily the result of a decrease in non-deductible items. Deferred tax assets and liabilities consisted of the following: (in thousands) January 31, 2016 January 31, 2015 Deferred tax assets: Current: Accrued bonuses $ 646 $ 441 Net operating loss carryforward 55 21 Research and development credits 1,120 751 AMT credits 548 412 Other, net 273 139 Net current deferred tax asset $ 2,642 $ 1,764 Non-Current: Net operating loss carryforward $ 32 $ 35 Nonqualified stock options 3,018 994 Research and development credits 120 — Deferred rent 89 184 Other, net 28 24 Net non-current deferred tax asset 3,287 1,237 Total gross deferred tax assets $ 5,929 $ 3,001 Deferred tax liabilities: Non-current: Fixed assets: depreciation and gain/loss $ (762 ) $ (675 ) Intangibles: amortization (6,521 ) (5,897 ) Total gross non-current deferred tax liability (7,283 ) (6,572 ) Net non-current deferred tax liability $ (3,996 ) $ (5,335 ) Net deferred tax liability $ (1,354 ) $ (3,571 ) In assessing whether deferred tax assets would be realized, management considered whether it is more likely than not that some portion or all of the deferred tax assets would be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considered the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment and determined that based on the weight of all available evidence, it is more likely than not (a likelihood of more than 50%) that the Company will be able to realize its deferred tax assets. Therefore, no valuation allowance was required as of January 31, 2016 . The valuation allowance decreased by $0 and $29,000 during the years ended January 31, 2015 , and 2014 , respectively. No valuation allowance remained as of January 31, 2014 . As of January 31, 2016 , the Company had recorded gross federal and state net operating loss carryforwards of $55,000 and $1.5 million , respectively, which begin to expire at various intervals between tax years ending December 31, 2023 and December 31, 2029 . As of January 31, 2016 , the Company also had federal and state research and development carryforwards of $1.2 million and $631,000 , respectively, which expire beginning with the tax year ending December 31, 2024 and 2018 respectively, and federal and state alternative minimum tax credit carryforwards of $547,000 and $1,000 , respectively, which do not expire. The Company’s current income taxes payable has been reduced by tax benefits from employee and director stock option plan awards. The Company receives an income tax benefit calculated as the tax effect of the difference between the fair market value of the stock issued at the time of exercise and the exercise price. In accordance with FASB ASC 718-740-25-10, Compensation-Stock Compensation, a portion of deferred tax assets attributable to excess stock option benefits is tracked separately and is not included in the recorded deferred tax assets. As of January 31, 2016, deferred tax assets attributable to excess stock option benefits totaled $7.4 million . Such benefit will not be recorded until the deduction reduces cash taxes payable. As of January 31, 2016 and 2015 , the gross unrecognized tax benefit was $393,000 and $300,000 , respectively. If recognized, $325,000 and $230,000 of the total unrecognized tax benefits would affect the Company's effective tax rate as of January 31, 2016 and 2015, respectively. Total gross unrecognized tax benefits increased by $93,000 in the period from January 31, 2015 to January 31, 2016 . A tabular reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: (in thousands) January 31, 2016 January 31, 2015 Gross unrecognized tax benefits at beginning of year $ 300 $ 256 Gross amounts of increases and decreases: Increases as a result of tax positions taken during a prior period — — Decreases as a result of tax positions taken during a prior period — (88 ) Increases as a result of tax positions taken during the current period 115 144 Decreases as a result of tax positions taken during the current period — — Decreases resulting from the lapse of the applicable statute of limitations (22 ) (12 ) Gross unrecognized tax benefits at end of year $ 393 $ 300 Certain unrecognized tax benefits are required to be netted against their related deferred tax assets as a result of Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists . The resulting unrecognized tax benefit recorded within the Company's consolidated balance sheet excludes the following amounts that have been netted against the related deferred tax assets accordingly: (in thousands) January 31, 2016 January 31, 2015 Total gross unrecognized tax benefits $ 393 $ 300 Amounts netted against related deferred tax assets (393 ) (280 ) Unrecognized tax benefits recorded on the consolidated balance sheet $ — $ 20 The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits as a component of other expense in the statement of operations. During the years ended January 31, 2016 , 2015 , and 2014 , respectively, the Company recorded an (decrease)/increase of $(8,000) , $(6,000) and $5,000 in interest and penalties related to unrecognized tax benefits for total accrued interest and penalties of $0 and $8,000 as of January 31, 2016 and 2015 , respectively. 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 2004. |
Redeemable convertible preferre
Redeemable convertible preferred stock and convertible preferred stock | 12 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Redeemable convertible preferred stock and convertible preferred stock | In connection with the Company's IPO, all outstanding shares of the Company's convertible preferred stock and redeemable convertible preferred stock converted into 32,486,588 shares of common stock. In accordance with their respective terms, shares of the series A and series B convertible preferred stock and D-3 redeemable convertible preferred stock converted into shares of common stock on a 1: 1 basis, shares of series C redeemable and convertible preferred stock converted into shares of common stock on a 1: 1.38 basis, shares of the series D-1 redeemable convertible preferred stock converted into shares of common stock on a 1: 2 basis, and shares of the series D-2 redeemable convertible preferred stock converted into shares of common stock on a 1: 2.27 basis. As a result, as of August 4, 2014, amounts associated with the convertible preferred stock and redeemable convertible preferred stock were reclassified to additional paid-in capital, and no amounts were outstanding as of January 31, 2016 and 2015 . Series A convertible preferred stock —The Company issued a total of 2.0 million shares of series A convertible preferred stock at a price of $1.00 per share, convertible into 2.0 million shares of common stock of the Company. Each share of series A convertible preferred stock was entitled to accrue dividends at the rate of 6% per annum from the date of issuance; however, accrued dividends were payable only in connection with a liquidation event. Upon the occurrence of any liquidation, dissolution or winding up of the Company, the liquidation preference was to be paid first to series C, D-1, D-2 and D-3 redeemable convertible preferred stockholders in preference to the shares of series A and B convertible preferred stock. Had funds been unavailable to return an amount equal to the issue price plus all unpaid dividends, all legally available assets for distribution would be distributed to the stockholders of the series C, D-1, D-2 and D-3 redeemable convertible preferred shares, and then to the stockholders of the series A and B convertible preferred shares on par with each other on a pro-rata basis. Series A convertible preferred stock had no redemption rights. Series B convertible preferred stock —The Company issued 4.7 million shares of series B convertible preferred stock at $1.50 per share, convertible into 4.7 million shares of common stock of the Company. On January 30, 2014, the Company’s Board of Directors approved a stock repurchase of 582,000 shares of series B convertible preferred stock at $5.00 per share. The repurchased shares were immediately retired by the Company. As of January 31, 2014 , 4.2 million shares of series B convertible preferred stock were issued and outstanding, convertible into 4.2 million shares of common stock of the Company. Each share of series B convertible preferred stock was entitled to accrue dividends at 6% per annum from the date of issuance; however, accrued dividends were payable only in connection with a liquidation event. Upon the occurrence of any liquidation, dissolution or winding up of the Company, an amount equal to the purchase price per share plus accrued and unpaid dividends were to be paid first to series C, D-1, D-2 and D-3 redeemable convertible preferred stockholders in preference to the shares of series A and B convertible preferred stock. Had funds been unavailable to return an amount equal to the issue price plus all unpaid dividends, all legally available assets for distribution would be first distributed to the stockholders of the series C, D-1, D-2 and D-3 redeemable convertible preferred shares, and then to the stockholders of Series A and B Convertible Preferred shares on par with each other on a pro-rata basis. Series B convertible preferred stock had no redemption rights. Series C redeemable convertible preferred stock —The Company issued 6.8 million shares of its series C redeemable convertible preferred stock at $2.32 per share, convertible into 9.4 million shares of common stock of the Company. On January 30, 2014, the Company’s Board of Directors approved a stock repurchase of 22,000 shares of series C redeemable convertible preferred stock (or 31,000 common stock equivalent shares) at $5.00 per common stock equivalent share. The repurchased shares were immediately retired by the Company. Each share of series C redeemable convertible preferred stock was entitled to accrue dividends at 6% per annum from the date of issuance; however, accrued dividends were payable only in connection with a liquidation event. Upon occurrence of any liquidation, dissolution, or winding up of the Company, stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred shares were entitled to receive an amount equal to the purchase price plus all accrued and unpaid dividends in preference to the stockholders of series A and B convertible preferred shares. Had there been insufficient funds to pay the series C, D-1, D-2 and D-3 redeemable convertible preferred stockholders their liquidation preference, the entire assets and funds of the Company legally available for distribution would have been distributed to the stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred shares in proportion to the number of shares held by each stockholder and then to the stockholders of the series A and B convertible preferred shares on par with each other on a pro-rata basis. Stockholders of series C redeemable convertible preferred stock had special voting rights. Until such date as (i) stockholders of series C redeemable convertible preferred stock hold less than 5% of the outstanding common stock of the Company, on an as-converted basis or (ii) the Company completes a qualified public offering, as defined in the Company’s amended and restated Certificate of Incorporation, the series C redeemable convertible preferred stockholders were entitled to vote separately as a single class to the exclusion of all other classes of the Company’s capital stock on certain corporate matters. The approval of a majority of the series C redeemable convertible preferred stock, with each share entitled to one vote, was required for the Company to engage in any of the specified corporate actions set forth in the Company’s amended and restated Certificate of Incorporation. In addition, the majority of series C redeemable convertible preferred stockholders were entitled to elect three Directors and one observer to the Company’s Board of Directors. Stockholders of series C preferred stock also had redemption rights (see below). Series D-1 redeemable convertible preferred stock —The Company issued 5.8 million shares of its series D-1 redeemable convertible preferred stock at $1.10 per share, convertible into 11.7 million shares of common stock of the Company. Each share of the series D-1 redeemable convertible preferred stock was entitled to accrue dividends at 6% per annum from the date of issuance; however, accrued dividends were payable only in connection with a liquidation event. Upon occurrence of any liquidation, dissolution, or winding up of the Company, stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred stock was entitled to receive an amount equal to the purchase price plus all accrued and unpaid dividends in preference to the stockholders of series A and B convertible preferred stock. Had there been insufficient funds to pay the series C, D-1, D-2 and D-3 redeemable convertible preferred stockholders their liquidation preference, the entire assets and funds of the Company legally available for distribution would have been distributed to the stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred shares in proportion to the number of shares held by each stockholder and then to the stockholders of the series A and B convertible preferred shares on par with each other on a pro-rata basis. Stockholders of series D-1 redeemable convertible preferred stock also had redemption rights (see below). Series D-2 redeemable convertible preferred stock —The Company issued 440,000 shares of its series D-2 redeemable convertible preferred stock at $1.25 per share, convertible into 1.0 million shares of common stock of the Company. Each share of the series D-2 redeemable convertible preferred stock was entitled to accrue dividends at 6% per annum from the date of issuance; however, accrued dividends were payable only in connection with a liquidation event. Upon occurrence of any liquidation, dissolution, or winding up of the Company, stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred stock were entitled to receive an amount equal to the purchase price plus all accrued and unpaid dividends in preference to the stockholders of series A and B convertible preferred stock. Had there been insufficient funds to pay the series C, D-1, D-2 and D-3 redeemable convertible preferred stockholders their liquidation preference, the entire assets and funds of the Company legally available for distribution would have been distributed to the stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred shares in proportion to the number of shares held by each stockholder and then to the stockholders of the series A and B convertible preferred shares on par with each other on a pro-rata basis. Stockholders of series D-2 redeemable convertible preferred stock also had redemption rights (see below). Series D-3 redeemable convertible preferred stock —The Company issued 4.4 million shares of series D-3 redeemable convertible preferred stock at $2.64 per share, convertible into 4.4 million shares of common stock of the Company. On January 30, 2014, the Company’s Board of Directors approved a stock repurchase of 61,743 shares of series D-3 redeemable convertible preferred stock at $5.00 per share. The repurchased shares were immediately retired by the Company. As of January 31, 2014, 4.3 million total shares of series D-3 redeemable convertible preferred stock were issued and outstanding, convertible into 4.3 million shares of common stock of the Company, respectively. Each share of series D-3 redeemable convertible preferred stock accrued dividends from the date of issuance of such share at the annual rate of six percent ( 6% ) of the Purchase Price per Share for such share of series D-3 redeemable convertible preferred stock. Such dividends accrued with respect to each share of preferred stock and were payable in cash within 30 days after the end of each fiscal year of the Company; provided, dividends on shares of series D-3 redeemable convertible preferred stock for the Company’s year ended January 31, 2014 were not payable in cash and instead were payable by issuance of additional shares of series D-3 redeemable convertible preferred stock. On January 31, 2013, an additional 248,000 shares of series D-3 redeemable convertible preferred stock valued at $655,000 were issued to the series D-3 redeemable convertible preferred stockholders as payment of series D-3 dividends through such date. Such shares were convertible into 248,000 shares of common stock of the Company. On January 31, 2014 , the Company paid a cash dividend of $694,000 , or $0.16 per share, to the series D-3 redeemable convertible preferred stockholders in payment of series D-3 Dividends through such date. In addition, we paid a cash dividend of $347,000 on shares of our outstanding series D-3 redeemable convertible preferred stock accrued through the date of conversion of such shares into common stock, which occurred on August 4, 2014. Upon occurrence of any liquidation, dissolution, or winding up of the Company, stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred stock were entitled to receive an amount equal to the purchase price plus all accrued and unpaid dividends in preference to the stockholders of series A and B convertible preferred stock. Had there been insufficient funds pay the series C, D-1, D-2 and D-3 redeemable convertible preferred stockholders their liquidation preference, the entire assets and funds of the Company legally available for distribution would have been distributed to the stockholders of series C, D-1, D-2 and D-3 redeemable convertible preferred shares in proportion to the number of shares held by each stockholder and then to the stockholders of the series A and B convertible preferred shares on par with each other on a pro rata basis. Series D-3 redeemable convertible preferred stockholders had no voting rights unless required by law. Stockholders of series D-3 redeemable convertible preferred stock also had redemption rights (see below). Redemption rights —Stockholders of the Company’s series C, series D-1, series D-2 and series D-3 redeemable convertible preferred stock had certain redemption rights. At any time following October 5, 2013, the stockholders of a majority of the issued and outstanding shares of the series C redeemable convertible preferred stock could have, by written notice, elect to require the Company to redeem all of the issued and outstanding series C, series D-1, series D-2, and series D-3 redeemable convertible preferred stock, for an amount equal to the aggregate of the liquidation preference for each issued and outstanding share; provided, however, that any holder of series D-3 could have, by written notice elect to not have such holder’s shares of series D-3 redeemed. The holders of a majority of the issued and outstanding shares of series D-3 could have elected to require the Corporation to redeem all, but not less than all, of the issued and outstanding series D-3 preferred stock at any time following August 11, 2018, for a per share amount equal to the greater of: (a) the fair market value of a share of series D-3 as determined in good faith by the Board without taking into account to any discount for minority interest, illiquidity or other similar considerations, or any premium for change in control or liquidity; or (b) the Liquidation preference of a share of series D-3. This fair value redemption feature resulted in a requirement to separately account for the conversion feature as derivative liability that is adjusted to fair value as of the end of each reporting period. The value of the derivative liability associated with the series D-3 redeemable convertible preferred stock totaled $6.2 million as of January 31, 2014 . As discussed in Note 13. Fair Value, the series D-3 redeemable convertible preferred stock terms were modified and as a result, the aggregate fair value of the derivative liability was reclassified to additional paid-in capital. The Company recorded accretion related to the redemption features of their redeemable convertible preferred stock as an increase or decrease to the respective instrument’s carrying value with a corresponding decrease or increase to additional paid in capital or accumulated deficit based upon the respective redemption value of each class of redeemable convertible preferred stock in accordance with the Company’s Articles of Incorporation. |
Common stock warrants
Common stock warrants | 12 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Common stock warrant | In conjunction with a rights equalization agreement, the Company issued warrants to series A convertible preferred stockholders to purchase 150,000 shares of its common stock for $1.00 per share. The warrants were exercisable through November 2015, of which 26,000 were exercised with 124,000 outstanding as of January 31, 2014 . The 124,000 warrants outstanding as January 31, 2014 were all exercised during the year ended January 31, 2015 . The warrants had a fair market value of $51,000 at the date of issuance. In conjunction with the issuance of the series B convertible preferred stock, warrants to purchase 400,000 shares of common stock with an exercise price of $1.00 per share were granted to series B convertible preferred stockholders. The warrants were exercisable through February 2014, of which 50,000 were exercised with 350,000 outstanding as of January 31, 2014 . Of the 350,000 warrants outstanding as of January 31, 2014 , 340,000 were exercised, and 10,000 were forfeited during the year ended January 31, 2015 . The warrants had a fair market value of $44,000 at the date of issuance. The Company issued warrants to purchase an additional 200,000 shares of common stock to series B convertible preferred stockholders with an exercise price of $1.00 per share. The warrants were exercisable through September 2015, of which 5,000 were exercised with 195,000 outstanding as of January 31, 2014 . The 195,000 warrants outstanding as of January 31, 2014 were all exercised during the year ended January 31, 2015 . The warrants had a fair market value of $66,000 at the date of issuance. In conjunction with the issuance of the series C redeemable convertible preferred stock, the Company issued detachable warrants to purchase 600,000 shares of common stock with an exercise price of $1.50 per share to series C redeemable convertible preferred stockholders. The warrants were exercisable through August 2016, of which 10,000 were exercised with 590,000 outstanding as of January 31, 2014 . The 590,000 warrants outstanding as of January 31, 2014 were all exercised during the year ended January 31, 2015 . The warrants had a fair market value of $339,000 at the date of issuance. The Company issued warrants to purchase an additional 1.0 million shares of common stock to series C redeemable convertible preferred stockholders with an exercise price of $0.01 per share. The warrants were exercisable through May 2017, of which 4,000 were exercised with 1.0 million outstanding as of January 31, 2014 . The 1.0 million warrants outstanding as of January 31, 2014 were all exercised during the year ended January 31, 2015 . The warrants had a fair market value of $1.6 million at the date of issuance. In conjunction with the issuance of the series D-1 redeemable convertible preferred stock, the Company issued detachable warrants to purchase 400,000 shares of common stock with an exercise price of $2.00 per share. The warrants were exercisable upon the option of the stockholder through August 2018, of which 400,000 were outstanding as of January 31, 2014 . The 400,000 warrants outstanding as of January 31, 2014 were all exercised during the year ended January 31, 2015 . In conjunction with the issuance of the series D-3 redeemable convertible preferred stock, warrants to purchase 966,000 shares of common stock with an exercise price of $0.01 per share were granted to series D-3 redeemable convertible preferred stockholders. The warrants were exercisable through August 2021, of which 767,000 were exercised with 199,000 outstanding as of January 31, 2014 . The warrants outstanding as of January 31, 2014 were all exercised during the year ended January 31, 2015. The warrants had a value of $1.7 million at the date of issuance. As a result of the foregoing, as of January 31, 2016 and 2015 , there were no warrants outstanding. |
Stock options
Stock options | 12 Months Ended |
Jan. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options | The Company currently grants stock options under the 2014 Equity incentive plan. On January 30, 2014, the Company’s board of directors approved, and the Company adopted, the 2014 Equity Incentive Plan (as amended and restated, the "Incentive Plan") providing for the issuance of stock options to the directors and team members of the Company to purchase up to an aggregate of 600,000 shares of common stock. In July 2014, the Company's board of directors approved an increase to the shares of common stock reserved under the Incentive Plan by 2.0 million shares from 600,000 shares of common stock to 2.6 million shares of common stock. In addition, the board of directors approved an amendment to the Incentive Plan providing that the number of shares of common stock reserved for issuance under the Incentive Plan will automatically increase on February 1 of each year, beginning as of February 1, 2015 and continuing through and including February 1, 2024 , by 3% of the total number of shares of the Company’s capital stock outstanding on January 31 of the preceding fiscal year, or a lesser number of shares determined by the board of directors. As of January 31, 2016 , 1.2 million shares were available for grant under the Incentive Plan. Under the terms of the Incentive Plan, the Company has the ability to grant incentive and nonqualified stock options. Incentive stock options may be granted only to Company team members. Nonqualified stock options may be granted to Company team members, directors and consultants. Such options are to be exercisable at prices, as determined by the board of directors, which must be equal to no less than the fair value of the Company's common stock at the date of the grant. Stock options granted under the Incentive Plan generally expire 10 years from the date of issuance, or are forfeited 90 days after termination of employment. Shares of common stock underlying stock options that are forfeited or that expire are returned to the Incentive Plan. A summary of stock option activity 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 1,093 $25.39 - 33.47 $ 27.34 Exercised (1,951 ) $0.10 - 18.93 $ 0.98 Forfeited (181 ) $0.50 - 28.69 $ 16.63 Outstanding as of January 31, 2016 5,418 $0.10 - 33.47 $ 10.88 7.03 $ 63,965 Vested and expected to vest as of January 31, 2016 5,221 $ 10.59 6.97 $ 62,958 Exercisable as of January 31, 2016 2,532 $ 2.84 5.19 $ 47,755 The aggregate intrinsic value in the tables above represents the difference between the estimated fair value of common stock and the exercise price of outstanding, in-the-money stock options. The total intrinsic value of stock options exercised during the years ended January 31, 2016 , 2015 and 2014 was $51.8 million , $9.5 million and $761,000 , respectively. During the years ended January 31, 2016 , 2015 , and 2014 , the Company granted 1.1 million , 608,800 and 624,000 time-based stock options to certain directors and key team members, respectively, of which 1.0 million , 526,300 and 534,000 vest over a period of 4 years . During the years ended January 31, 2016 and 2015 , the Company granted 140,000 and 82,500 time-based stock options to certain directors, respectively. During the year ended January 31, 2015 , the Company granted 1.5 million performance-based stock options, respectively, to certain key team members under the Incentive Plan, which vest upon the achievement of certain performance criteria. The performance-based stock options vest upon the attainment of the following performance criteria: (a) 10% of the stock options vest upon attainment of at least $34.5 million in Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") for the year ended January 31, 2016, (b) 20% of the stock options vest upon the attainment of an annual growth rate of Adjusted EBITDA per share of common stock of 30% for the year ended January 31, 2017, (c) 30% of the stock options vest upon the attainment of an annual growth rate of Adjusted EBITDA per share of common stock of 30% for the year ended January 31, 2018, and (d) 40% of the stock options vest upon the attainment of an annual growth rate of Adjusted EBITDA per share of common stock of 25% for the year ended January 31, 2019. During the year ended January 31, 2016 , the Company achieved the $34.5 million Adjusted EBITDA performance criteria and as such, 10% of the stock performance-based stock options outstanding as of January 31, 2016 became vested. As of January 31, 2016 and 2015 , 2.5 million and 4.1 million of all outstanding options were exercisable, respectively. The options are valued at their estimated fair market value as of the date of the grant. Stock-based compensation —The Company has adopted the provisions of Topic 718, which requires the measurement and recognition of compensation for all stock-based awards made to team members and directors, based on estimated fair values. Under Topic 718, the Company uses the Black-Scholes option pricing model as the method of valuation for stock-based awards. The determination of the fair value of stock-based awards on the date of grant is affected by the fair value of the stock as well as assumptions regarding a number of complex and subjective variables. The variables include, but are not limited to, 1) the expected life of the option, 2) the expected volatility of the fair value of the Company's common stock over the term of the award estimated by averaging the published volatilities of a relative peer group, 3) actual and projected exercise and forfeiture behaviors, and 4) expected dividends. The key input assumptions that were utilized in the valuation of the stock options granted during the years ended January 31, 2016 , 2015 and 2014 are as follows: Year ended January 31, 2016 2015 2014 Expected dividend yield — % — % — % Expected stock price volatility 38.29% - 40.29% 32.90% - 40.29% 32.90 % Risk-free interest rate 1.47% - 1.80% 1.12% - 2.24% 0.35% - 0.80% Expected life of options 5.43 - 6.25 years 5.6 - 7.3 years 3 years The determination of the fair value of stock options on the date of grant using the Black-Scholes 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 option exercise history as a public company. The weighted-average grant-date fair value of stock options granted to certain directors and key team members during the years ended January 31, 2016 , 2015 and 2014 was $11.14 , $6.29 , and $0.43 per share, respectively. As of January 31, 2016 , the weighted-average vesting period of non-vested stock-options 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 $14.6 million . During the year ended January 31, 2016 , the Company recorded compensation expense of $2.5 million related to the performance-based options based on the Company's probability assessment of attaining its Adjusted EBITDA targets, Adjusted EBITDA per common share growth rates. During the year ended January 31, 2015 , the Company recorded compensation expense of $1.7 million related to the performance-based options based on the Company's probability assessment of attaining its Adjusted EBITDA targets, Adjusted EBITDA per common share growth rates and consummation of the IPO. The following table shows a summary of stock-based compensation in the Company's consolidated statements of operations and comprehensive income during the years presented: Year ended January 31, (in thousands) 2016 2015 2014 Cost of revenue $ 1,088 $ 403 $ 9 Sales and marketing 903 504 12 Technology and development 1,014 263 16 General and administrative 2,878 1,355 20 Total stock-based compensation expense $ 5,883 $ 2,525 $ 57 |
Stock repurchase
Stock repurchase | 12 Months Ended |
Jan. 31, 2016 | |
Equity [Abstract] | |
Stock repurchase | On January 30, 2014, the Company’s Board of Directors approved a stock repurchase of 660,000 shares of Series B, Series C, and Series D-3 Preferred Stock, equivalent to 674,000 common shares at $5.00 per common stock equivalent share for a total purchase price of $3.4 million . All repurchased shares were immediately retired by the Company on January 31, 2014 . |
Fair value
Fair value | 12 Months Ended |
Jan. 31, 2016 | |
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: January 31, 2016 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds 40,134 — — 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 were recognized in the consolidated financial statements. The Company 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 years ended January 31, 2016 and 2015 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. Year ended January 31, (in thousands) 2016 2015 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 $ — $ — The following table summarizes the significant quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of January 31, 2015 : Series D-3 redeemable convertible preferred stock derivative liability January 31, 2015 Market value of common stock on measurement date $ 4.06 Projected exercise price $ 2.64 Risk-free interest rate 0.06 % Expected lives 180 days Expected volatility 25.2 % Probability of liquidation event — % There are no other financial instruments that are considered Level 1 or Level 2 as of January 31, 2016 and 2015 . |
Related party transactions
Related party transactions | 12 Months Ended |
Jan. 31, 2016 | |
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. For the years ended January 31, 2016 , 2015 and 2014 , amounts paid to this company under the terms of the consulting agreement were $0 , $162,000 and $450,000 , respectively. In connection with the consummation of the Company's IPO, this consulting agreement was terminated. |
401(k) plan
401(k) plan | 12 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) plan | The Company has established a 401(k) plan that qualifies as a deferred compensation arrangement under Section 401 of the IRS Code. All team members over the age of 21 are eligible to participate in the plan. The Company contributed 50% of an employee's elective deferral up to 4% of eligible earnings through May 2014. In May 2014, the Company amended its 401(k) plan to increase the employer contribution. Effective May 2014, the Company contributes 50% of an employee’s elective deferral up to 6% of eligible earnings. Employer contributions vest 25% each year of employment. 401(k) plan administrative expense was $16,000 , $8,000 and $7,000 for the years ended January 31, 2016 , 2015 and 2014 , respectively. Employer matching contribution expense was $626,000 , $375,000 and $176,000 for the years ended January 31, 2016 , 2015 and 2014 , respectively. |
Supplementary quarterly financi
Supplementary quarterly financial data (unaudited) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary quarterly financial data | Three months ended (in thousands, except for per share amounts) January 31, 2016 October 31, 2015 July 31, 2015 April 30, 2015 Total revenue $ 35,886 $ 30,556 $ 30,494 $ 29,850 Total cost of revenue 17,455 12,880 11,909 11,944 Gross profit 18,431 17,676 18,585 17,906 Total operating expenses 14,072 11,372 11,087 9,924 Total other expense (63 ) 121 (542 ) (105 ) Income tax provision 1,168 2,338 2,535 2,900 Net income $ 3,128 $ 4,087 $ 4,421 $ 4,977 Net income per share attributable to common stockholders: Basic $ 0.05 $ 0.07 $ 0.08 $ 0.09 Diluted (1) $ 0.05 $ 0.07 $ 0.08 $ 0.09 Three months ended (in thousands, except for per share amounts) January 31, 2015 October 31, 2014 July 31, 2014 April 30, 2014 Total revenue $ 24,871 $ 21,862 $ 20,891 $ 20,231 Total cost of revenue 12,358 9,630 9,122 8,772 Gross profit 12,513 12,232 11,769 11,459 Total operating expenses 10,493 7,938 6,698 5,971 Total other expense (98 ) (145 ) (39 ) (827 ) Income tax provision 551 1,100 2,004 1,943 Net income $ 1,371 $ 3,049 $ 3,028 $ 2,718 Net income per share attributable to common stockholders: Basic (1) $ 0.03 $ 0.06 $ 0.19 $ 0.52 Diluted $ 0.02 $ 0.05 $ 0.06 $ 0.08 (1) Earnings per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding. During the three months ended January 31, 2015, the Company recorded an out-of-period adjustment related to the correction of a $408,000 understatement of revenue related to prior periods, which had the effect of increasing the three months ended January 31, 2015 net income by $246,000 . The Company does not believe the correction of this error is material to its financial statements for any prior periods or the three months ended January 31, 2015. |
Summary of business and signi24
Summary of business and significant accounting policies (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation —The 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 that is accounted for using the equity method of accounting. The investment was approximately $281,000 as of January 31, 2016 and is included in other assets on the accompanying consolidated balance sheets. During the year ended January 31, 2016 , 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. Under the cost method of accounting, the fair value of an investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The investment was $500,000 as of January 31, 2016 and is included in other assets on the accompanying consolidated balance sheet. All significant intercompany balances and transactions have been eliminated. |
Segments | Segments —The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash —The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents were held in institutions in the U.S. and include deposits in a money market account that was unrestricted as to withdrawal or use. Restricted cash represents custodial funds held temporarily by the Company in its accounts with a corresponding due to trust liability account. |
Accounts receivable | Accounts receivable —Accounts receivable represent monies due to the Company for monthly service revenue, custodial revenue and interchange revenue. As of January 31, 2016 , accounts receivable consisted of $6.9 million of service revenue, $4.2 million of custodial revenue, and $3.1 million of interchange revenue. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivable amounts. In evaluating the Company’s ability to collect outstanding receivable balances, the Company considers various factors including the age of the balance, the creditworthiness of the customer, which is assessed based on ongoing credit evaluations and payment history, and the customer’s current financial condition. |
Inventories | Inventories —Inventories consist of new member and participant supplies and are recorded at the lower of cost or market using an average cost basis. |
Property and equipment | Property and equipment —Property and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of individual assets. The useful life for leasehold improvements is the shorter of the estimated useful life or the term of the lease ranging from 3-5 years. The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Maintenance and repairs are expensed when incurred, and improvements that extend the economic useful life of an asset are capitalized. Gains and losses on the disposal of property and equipment are reflected in operating expenses. |
Capitalized software development costs | Capitalized software development costs —We account for the costs of computer software developed or obtained for internal use in accordance with Accounting Standards Codification (“ASC”) 350-40, “Internal-Use Software.” Costs incurred during operation and post-implementation stages are charged to expense. Costs incurred that are directly attributable to developing or obtaining software for internal use incurred in the application development stage are capitalized. Management’s judgment is required in determining the point when various projects enter the stages at which costs may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. See Note 5—Intangible Assets and Goodwill for additional information. |
Intangible assets, net | Intangible assets, net —Intangible assets are carried at cost and amortized, typically, on a straight-line basis over their estimated useful lives, which is 3-5 years for capitalized software development costs and acquired technology rights, and 15 years for certain acquired intangible member assets. The acquired intangible member assets are the result of various acquisitions of HSA portfolios. A significant portion of the purchase price from each acquisition has been allocated to the acquired HSA assets, which consists of the contractual rights to administer the activities related to the individual health savings accounts acquired. The Company analyzed the historical attrition and depletion rates of member accounts and determined that an average useful life of 15 years and the use of a straight-line amortization method are appropriate to reflect the pattern over which the economic benefits of existing member assets are realized. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There have been no impairment charges recorded in any of the periods presented in the accompanying consolidated financial statements. See Note 5—Intangible Assets and Goodwill for additional information. |
Goodwill | Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment annually on January 31 or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company’s impairment tests are based on a single operating segment and reporting unit structure. The goodwill impairment test involves a two-step process. The first step involves comparing the Company's market capitalization to the carrying value of the reporting unit, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step of the test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company’s annual goodwill impairment test resulted in no impairment charges in any of the periods presented in the accompanying consolidated financial statements. |
Deferred rent | Deferred rent —The Company recognizes rental expense for its office lease on a straight-line basis over the lease term. Deferred rent represents the difference between actual operating lease payments due and straight-line rent expense. The excess is recorded as a deferred credit in the early periods of the lease, when cash payments are generally lower than straight-line rent expense, and is reduced in the later periods of the lease when payments begin to exceed the straight-line expense. |
Revenue recognition | Revenue recognition —The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been provided, the price of services is fixed or determinable, and collection is reasonably assured. The Company generates revenue primarily from service revenue (previously referred to as account fee revenue), custodial revenue (previously referred to as custodial fee revenue), interchange revenue (previously referred as card fee revenue). The Company earns service revenue from the fees paid by health plan partners, employer partners or individual members for administration services provided in connection with the tax-advantaged HSAs, HRAs and FSAs the Company administers. These fees are generally based on a tiered structure fixed for the duration of the contract agreement with health plan or employer partners, which is typically three to five years. The fees are paid on a monthly basis and revenue is recognized monthly as services are rendered under the Company’s written service agreements. The Company earns custodial revenue from HSA custodial assets held in trust. As a non-bank custodian, the Company deposits HSA cash with various custodial financial institutions having contract terms from three to five years and either a fixed or variable interest rate. These deposits are FDIC insured for each individual HSA. The Company also invests HSA cash in an annuity contract with a insurance company partner. HSA investment balances are deposited with the custodial investment partner from whom the Company receives an administrative and recordkeeping fee. The Company recognizes this revenue in the month in which it is earned. The Company earns interchange revenue from card transactions when members are paying their healthcare claims using a card issued by the Company. The Company recognizes this revenue in the month in which it is earned. |
Cost of revenue | Cost of revenue —The Company incurs cost of revenue related to servicing member accounts, managing customer and partner relationships, and processing reimbursement claims. Expenditures include personnel-related costs, depreciation, amortization, stock-based compensation, common expense allocations, new member and participant supplies and other operating costs of the Company’s related member account servicing departments. Other components of the Company’s cost of revenue sold include interest paid to members on custodial assets held in trust and interchange costs incurred in connection with processing card transactions initiated by members. |
Stock-based compensation | Stock-based compensation —For stock options granted to team members, the Company recognizes compensation expense for all stock-based awards based on the grant date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to non-team members is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the non-employee. For awards with performance conditions, we evaluate the probability of achieving the performance criteria and of the number of shares that are expected to vest, and compensation expense is then adjusted to reflect the number of shares expected to vest and the requisite service period. For awards with performance conditions, compensation expense is recognized using the graded-vesting attribution method in accordance with the provisions of FASB ASC Topic 718, Compensation—Stock Compensation ("Topic 718") . Upon the exercise of a stock option, common shares are issued from authorized, but not outstanding, common stock. |
Income tax provision (benefit) | Income tax provision (benefit) —The Company accounts for income taxes and the related accounts under the liability method as set forth in the authoritative guidance for accounting for income taxes. Under this method, current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, for net operating losses, and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for when it is more likely than not that some or all of the deferred tax assets may not be realized in future years. After weighing both the positive and negative evidence, the Company believes that it is more likely than not that all deferred tax assets will be realized as of January 31, 2016 . During the year ended January 31, 2014 , the a valuation allowance of $29,000 was released due to the associated state net operating losses expiring unutilized. The release of the valuation allowance was recorded as a tax benefit on the Company’s consolidated financial statements during the year ended January 31, 2014. As of January 31, 2016 , 2015 and 2014, no valuation allowance remained on the Company’s consolidated financial statements. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in a tax return using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities, based on the technical merits of the position. For tax positions that are more likely than not to be sustained upon audit, the second step is to measure the tax benefit in the financial statements as the largest benefit that has a greater than 50% likelihood of being sustained upon settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as a component of other expense in the Consolidated Statements of Operations and Comprehensive Income. Significant judgment is required to evaluate uncertain tax positions. Changes in facts and circumstances could have a material impact on the Company’s effective tax rate and results of operations. |
Comprehensive income | Comprehensive income —Comprehensive income is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources, including unrealized gains and losses on marketable securities. |
Concentration of market risk | Concentration of market risk —The Company derives a substantial portion of its revenue from providing services for healthcare accounts. A significant downturn in this market or changes in state and/or federal laws impacting the preferential tax treatment of healthcare accounts could have a material adverse effect on the Company’s results of operations. |
Concentration of credit risk | Concentration of credit risk —Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash. The Company maintains its cash and cash equivalents in bank and other depository accounts, which, at times, may exceed federally insured limits. The Company’s cash and cash equivalents held in banks as of January 31, 2016 was $83.6 million , of which $750,000 was covered by federal depository insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. The Company’s accounts receivable balance as of January 31, 2016 was $14.3 million . The Company has not experienced any significant write-offs to accounts receivable and believes that it is not exposed to significant credit risk with respect to accounts receivable. |
Interest rate risk | Interest rate risk —The Company has entered into depository agreements with financial institutions for its custodial cash deposits. The contracted interest rates were negotiated at the time the depository agreements were executed. A significant reduction in prevailing interest rates may make it difficult for the Company to continue to place custodial deposits at the current contracted rates. |
Use of estimates | Use of estimates —The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made estimates for the allowance for doubtful accounts, capitalized software development costs, evaluating goodwill and long-lived assets for impairment, useful lives of property and equipment and intangible assets, accrued compensation, accrued liabilities, grant date fair value of stock options and income taxes. Actual results could differ from those estimates. |
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 2015-03, 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 Company is currently evaluating the timing of adoption and the potential effect of this ASU on the consolidated financial statements. 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 January 31, 2016 was $2.6 million . The Company plans to early adopt this guidance on a prospective basis in the first quarter of fiscal year 2017. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities. The amendments in this ASU revise an entity's accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted for the presentation of certain fair value changes for financial liabilities measured at fair value. The Company is currently evaluating the timing of adoption and the potential effect of this ASU on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure for both parties to a contract (i.e. lessees and lessors). ASC 842 supersedes the previous leases standard, ASC 840 leases. The guidance is effective for financial statements issued for reporting periods beginning after December 15, 2018 and requires a modified retrospective transition, and provides for certain practical expedients; early adoption is permitted. The Company is currently evaluating the timing of adoption and the potential impact of this ASU on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations. The amendments in this ASU are intended to improve the guidance on principal versus agent considerations. The effective date for this ASU is the same as the effective date for ASU 2014-09, Revenue from Contracts with Customers. The Company is currently assessing the potential impact of this ASU on the consolidated financial statements. |
Summary of business and signi25
Summary of business and significant accounting policies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of estimated useful life of property and equipment | The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Property and equipment consisted of the following as of January 31, 2016 and January 31, 2015 : (in thousands) January 31, 2016 January 31, 2015 Leasehold improvements $ 700 $ 506 Furniture and fixtures 1,592 1,317 Computer equipment 5,825 4,013 Property and equipment, gross 8,117 5,836 Accumulated depreciation (4,611 ) (3,259 ) Property and equipment, net $ 3,506 $ 2,577 |
Net income (loss) per share a26
Net income (loss) per share attributable to common stockholders (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
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) Year ended January 31, 2016 2015 2014 Numerator (basic and diluted): Net income $ 16,613 $ 10,166 $ 1,233 Add back (deduction): accretion of redeemable convertible preferred stock — 4,021 (5,764 ) Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock — (1,286 ) (2,601 ) Less: undistributed income attributed to redeemable convertible preferred stockholders — (843 ) — Net income (loss) attributable to common stockholders for basic earnings per share $ 16,613 $ 12,058 $ (7,132 ) Add back: dividend of redeemable convertible preferred stock — 1,286 — Add back (deduction): 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 — 843 — Net income (loss) attributable to common stockholders for diluted earnings per share $ 16,613 $ 10,901 $ (7,132 ) Denominator (basic): Weighted-average common shares outstanding 56,719 31,181 5,651 Denominator (diluted): Weighted-average common shares outstanding 56,719 31,181 5,651 Effect of potential dilutive securities: Weighted-average dilutive effect of stock options 2,144 3,071 — Weighted-average dilutive effect of common shares from stock warrants — 1,227 — Dilutive effect from preferred stock assuming conversion — 16,377 — Weighted-average common shares outstanding 58,863 51,856 5,651 Net income (loss) per share attributable to common stockholders: Basic $ 0.29 $ 0.39 $ (1.26 ) Diluted $ 0.28 $ 0.21 $ (1.26 ) |
Cash, cash equivalents and ma27
Cash, cash equivalents and marketable securities (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities as of January 31, 2016 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 83,641 $ — $ — $ 83,641 Marketable securities: Mutual funds 40,292 78 (236 ) 40,134 Total cash, cash equivalents and marketable securities $ 123,933 $ 78 $ (236 ) $ 123,775 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 |
Marketable securities by maturity date | The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of January 31, 2016 : (in thousands) Cost basis Fair value One year or less $ 25,134 $ 25,108 Over one year and less than five years 15,158 15,026 Total $ 40,292 $ 40,134 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Property and equipment consisted of the following as of January 31, 2016 and January 31, 2015 : (in thousands) January 31, 2016 January 31, 2015 Leasehold improvements $ 700 $ 506 Furniture and fixtures 1,592 1,317 Computer equipment 5,825 4,013 Property and equipment, gross 8,117 5,836 Accumulated depreciation (4,611 ) (3,259 ) Property and equipment, net $ 3,506 $ 2,577 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and associated accumulated amortization of intangible assets is as follows as of January 31, 2016 and January 31, 2015 : (in thousands) January 31, 2016 January 31, 2015 Amortized intangible assets: Capitalized software development costs $ 16,104 $ 10,468 Software 5,994 4,695 Acquired intangible member assets 64,948 24,563 Intangible assets, gross 87,046 39,726 Accumulated amortization (20,206 ) (13,185 ) Intangible assets, net $ 66,840 $ 26,541 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for the years ending January 31 is as follows: Year ending January 31, (in thousands) 2017 $ 9,417 2018 7,679 2019 5,867 2020 4,518 2021 4,330 Thereafter 35,029 Total $ 66,840 |
Commitments and contingencies C
Commitments and contingencies Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments required under non-cancelable obligations as of January 31, 2016 are as follows: Year ending January 31, (in thousands) Office lease Other agreements Total 2017 $ 1,685 $ 207 $ 1,892 2018 1,587 54 1,641 2019 1,627 35 1,662 2020 1,608 35 1,643 2021 1,790 32 1,822 Thereafter 9,983 4 9,987 Total $ 18,280 $ 367 $ 18,647 |
Schedule of processing fees | Minimum processing fees required under the terms of the merchant processing services agreement are as follows: Year ending January 31, (in thousands) Minimum 2017 $ 825 2018 825 2019 825 2020 825 2021 825 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The Income tax provision consisted of the following: Year ended January 31, (in thousands) 2016 2015 2014 Current: Federal $ 9,876 $ 3,574 $ 225 State 1,226 451 93 Total current tax provision $ 11,102 $ 4,025 $ 318 Deferred: Federal $ (1,772 ) $ 1,703 $ 3,622 State (389 ) (130 ) 201 Total deferred tax provision (benefit) $ (2,161 ) $ 1,573 $ 3,823 Total income tax provision $ 8,941 $ 5,598 $ 4,141 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax provision differed from the amounts computed by applying the U.S. federal statutory income tax rate of 34% to income before income tax provision as a result of the following: Year ended January 31, (in thousands) 2016 2015 2014 Federal income tax provision at the statutory rate $ 8,688 $ 5,360 $ 1,827 State income tax provision, net of federal tax benefit 541 297 293 Non-deductible or non-taxable items 56 313 2,144 Federal research and development credit (371 ) (421 ) (160 ) Change in valuation allowance — — (29 ) Change in uncertain tax position reserves, net of indirect benefits 96 54 43 Other items, net (69 ) (5 ) 23 Total income tax provision $ 8,941 $ 5,598 $ 4,141 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: (in thousands) January 31, 2016 January 31, 2015 Deferred tax assets: Current: Accrued bonuses $ 646 $ 441 Net operating loss carryforward 55 21 Research and development credits 1,120 751 AMT credits 548 412 Other, net 273 139 Net current deferred tax asset $ 2,642 $ 1,764 Non-Current: Net operating loss carryforward $ 32 $ 35 Nonqualified stock options 3,018 994 Research and development credits 120 — Deferred rent 89 184 Other, net 28 24 Net non-current deferred tax asset 3,287 1,237 Total gross deferred tax assets $ 5,929 $ 3,001 Deferred tax liabilities: Non-current: Fixed assets: depreciation and gain/loss $ (762 ) $ (675 ) Intangibles: amortization (6,521 ) (5,897 ) Total gross non-current deferred tax liability (7,283 ) (6,572 ) Net non-current deferred tax liability $ (3,996 ) $ (5,335 ) Net deferred tax liability $ (1,354 ) $ (3,571 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A tabular reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: (in thousands) January 31, 2016 January 31, 2015 Gross unrecognized tax benefits at beginning of year $ 300 $ 256 Gross amounts of increases and decreases: Increases as a result of tax positions taken during a prior period — — Decreases as a result of tax positions taken during a prior period — (88 ) Increases as a result of tax positions taken during the current period 115 144 Decreases as a result of tax positions taken during the current period — — Decreases resulting from the lapse of the applicable statute of limitations (22 ) (12 ) Gross unrecognized tax benefits at end of year $ 393 $ 300 |
Schedule of Unrecognized Tax Benefit Netted Against Deferred Tax Asset | The resulting unrecognized tax benefit recorded within the Company's consolidated balance sheet excludes the following amounts that have been netted against the related deferred tax assets accordingly: (in thousands) January 31, 2016 January 31, 2015 Total gross unrecognized tax benefits $ 393 $ 300 Amounts netted against related deferred tax assets (393 ) (280 ) Unrecognized tax benefits recorded on the consolidated balance sheet $ — $ 20 |
Stock options (Tables)
Stock options (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock options | A summary of stock option activity 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 1,093 $25.39 - 33.47 $ 27.34 Exercised (1,951 ) $0.10 - 18.93 $ 0.98 Forfeited (181 ) $0.50 - 28.69 $ 16.63 Outstanding as of January 31, 2016 5,418 $0.10 - 33.47 $ 10.88 7.03 $ 63,965 Vested and expected to vest as of January 31, 2016 5,221 $ 10.59 6.97 $ 62,958 Exercisable as of January 31, 2016 2,532 $ 2.84 5.19 $ 47,755 |
Summary of Assumptions | The key input assumptions that were utilized in the valuation of the stock options granted during the years ended January 31, 2016 , 2015 and 2014 are as follows: Year ended January 31, 2016 2015 2014 Expected dividend yield — % — % — % Expected stock price volatility 38.29% - 40.29% 32.90% - 40.29% 32.90 % Risk-free interest rate 1.47% - 1.80% 1.12% - 2.24% 0.35% - 0.80% Expected life of options 5.43 - 6.25 years 5.6 - 7.3 years 3 years |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table shows a summary of stock-based compensation in the Company's consolidated statements of operations and comprehensive income during the years presented: Year ended January 31, (in thousands) 2016 2015 2014 Cost of revenue $ 1,088 $ 403 $ 9 Sales and marketing 903 504 12 Technology and development 1,014 263 16 General and administrative 2,878 1,355 20 Total stock-based compensation expense $ 5,883 $ 2,525 $ 57 |
Fair value (Tables)
Fair value (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | 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: January 31, 2016 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds 40,134 — — |
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 years ended January 31, 2016 and 2015 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. Year ended January 31, (in thousands) 2016 2015 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 the significant quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy | The following table summarizes the significant quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of January 31, 2015 : Series D-3 redeemable convertible preferred stock derivative liability January 31, 2015 Market value of common stock on measurement date $ 4.06 Projected exercise price $ 2.64 Risk-free interest rate 0.06 % Expected lives 180 days Expected volatility 25.2 % Probability of liquidation event — % |
Supplementary quarterly finan34
Supplementary quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Three months ended (in thousands, except for per share amounts) January 31, 2016 October 31, 2015 July 31, 2015 April 30, 2015 Total revenue $ 35,886 $ 30,556 $ 30,494 $ 29,850 Total cost of revenue 17,455 12,880 11,909 11,944 Gross profit 18,431 17,676 18,585 17,906 Total operating expenses 14,072 11,372 11,087 9,924 Total other expense (63 ) 121 (542 ) (105 ) Income tax provision 1,168 2,338 2,535 2,900 Net income $ 3,128 $ 4,087 $ 4,421 $ 4,977 Net income per share attributable to common stockholders: Basic $ 0.05 $ 0.07 $ 0.08 $ 0.09 Diluted (1) $ 0.05 $ 0.07 $ 0.08 $ 0.09 Three months ended (in thousands, except for per share amounts) January 31, 2015 October 31, 2014 July 31, 2014 April 30, 2014 Total revenue $ 24,871 $ 21,862 $ 20,891 $ 20,231 Total cost of revenue 12,358 9,630 9,122 8,772 Gross profit 12,513 12,232 11,769 11,459 Total operating expenses 10,493 7,938 6,698 5,971 Total other expense (98 ) (145 ) (39 ) (827 ) Income tax provision 551 1,100 2,004 1,943 Net income $ 1,371 $ 3,049 $ 3,028 $ 2,718 Net income per share attributable to common stockholders: Basic (1) $ 0.03 $ 0.06 $ 0.19 $ 0.52 Diluted $ 0.02 $ 0.05 $ 0.06 $ 0.08 (1) Earnings per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding. |
Summary of business and signi35
Summary of business and significant accounting policies (Details) | May. 11, 2015USD ($)$ / sharesshares | Aug. 05, 2014USD ($)$ / sharesshares | Jul. 14, 2014USD ($)$ / sharesshares | Jan. 31, 2016USD ($)segment$ / sharesshares | Dec. 31, 2015USD ($) | Jan. 31, 2015USD ($)$ / sharesshares | Jan. 31, 2014USD ($)shares | Jan. 31, 2013USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Assets held in trust | $ 3,200,000,000 | |||||||
Minimum net worth required (percentage) | 2.00% | |||||||
Calculated net worth | $ 201,324,812 | |||||||
Percentage of supportable custodial funds (percentage) | 2.00% | |||||||
Calculated supportable custodial funds | $ 10,066,240,600 | |||||||
Actual custodial funds | $ 6,845,689,390 | |||||||
Cost method ownership (percentage) | 2.00% | |||||||
Cost method investments | $ 500,000 | |||||||
Number of segments | segment | 1 | |||||||
Account fees receivable | $ 6,900,000 | |||||||
Accounts receivables | 4,200,000 | |||||||
Credit card receivables | 3,100,000 | |||||||
Allowance for doubtful accounts | 40,000 | $ 40,000 | ||||||
Decrease in valuation allowance | 0 | $ (29,000) | ||||||
Cash and cash equivalents | 83,641,000 | 111,005,000 | 13,917,000 | $ 5,905,000 | ||||
Cash covered by insurance | 750,000 | |||||||
Accounts receivable | 14,308,000 | 9,054,000 | ||||||
Net current deferred tax asset | 2,642,000 | 1,764,000 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Minimum Net Worth Above Custodial Assets, As a Percentage | 1.00% | |||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition of intangible member assets | $ 40,489,000 | $ 0 | $ 0 | |||||
Class of Stock [Line Items] | ||||||||
IPO price per share (dollars per share) | $ / shares | $ 25.90 | |||||||
Net proceeds from IPO | $ 23,500,000 | |||||||
Common stock, shares issued (shares) | shares | 972,500 | 57,726,000 | 54,802,000 | |||||
Shares sold by stockholders (shares) | shares | 3,455,000 | |||||||
Number of shares exercised (shares) | shares | 1,951,000 | 1,841,000 | 568,000 | |||||
Payments of stock issuance costs underwriters discounts and commissions | $ 1,000,000 | |||||||
Other offering expense | 688,000 | |||||||
Proceeds from share of shares | $ 222,000 | |||||||
Common and preferred shares authorized (shares) | shares | 1,000,000,000 | |||||||
Common stock, shares authorized (shares) | shares | 900,000,000 | 900,000,000 | 900,000,000 | |||||
Preferred stock, shares authorized (shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common stock, par value per share (dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Preferred stock, par value per share (dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Dividends declared | $ 50,000,000 | |||||||
Decrease in exercise price to record an adjustment to outstanding stock options | $ / shares | $ 1 | |||||||
Preferred stock converted to common stock (shares) | shares | 32,486,588 | |||||||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | $ 0 | |||||
Capitalized software development costs | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Useful life of intangible assets (in years) | 15 years | |||||||
IPO | ||||||||
Class of Stock [Line Items] | ||||||||
Shares of common stock issued (shares) | shares | 10,465,000 | |||||||
IPO price per share (dollars per share) | $ / shares | $ 14 | |||||||
Net proceeds from IPO | $ 132,600,000 | |||||||
Stock issuance costs, underwriters discounts and commissions | 10,200,000 | |||||||
Other offering expenses payable | $ 3,700,000 | |||||||
Portfolio one of HSAs acquired | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition of intangible member assets | $ 34,200,000 | |||||||
Portfolio two of HSAs acquired | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition of intangible member assets | $ 6,200,000 | |||||||
Dividend Declared | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends declared | $ 50,000,000 | |||||||
Minimum | Capitalized software development costs | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Useful life of intangible assets (in years) | 3 years | |||||||
Minimum | Acquired intangible member assets | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Useful life of intangible assets (in years) | 3 years | |||||||
Minimum | Leasehold improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life of property, plant and equipment (in years) | 3 years | |||||||
Minimum | Computer equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life of property, plant and equipment (in years) | 3 years | |||||||
Maximum | Capitalized software development costs | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Useful life of intangible assets (in years) | 5 years | |||||||
Maximum | Acquired intangible member assets | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Useful life of intangible assets (in years) | 5 years | |||||||
Maximum | Leasehold improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life of property, plant and equipment (in years) | 5 years | |||||||
Maximum | Computer equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Useful life of property, plant and equipment (in years) | 5 years | |||||||
Healthbox Inc. | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership (percentage) | 22.00% | |||||||
Equity method investments | $ 281,000 | |||||||
Other Expense [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition related expenses | $ 471,000 | |||||||
Common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares of common stock issued (shares) | shares | 973,000 | 10,465,000 | ||||||
Number of shares exercised (shares) | shares | 380,000 | 1,951,000 | 1,841,000 | 568,000 |
Net income (loss) per share a36
Net income (loss) per share attributable to common stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 3,128 | $ 4,087 | $ 4,421 | $ 4,977 | $ 1,371 | $ 3,049 | $ 3,028 | $ 2,718 | $ 16,613 | $ 10,166 | $ 1,233 |
Add back (deduction): accretion of redeemable convertible preferred stock | 0 | 4,021 | (5,764) | ||||||||
Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock | 0 | (1,286) | (2,601) | ||||||||
Less: undistributed income attributed to redeemable convertible preferred stockholders | 0 | (843) | 0 | ||||||||
Net income (loss) attributable to common stockholders for basic earnings per share | 16,613 | 12,058 | (7,132) | ||||||||
Add back: dividend of redeemable convertible preferred stock | 0 | 1,286 | 0 | ||||||||
Add back (deduction): accretion on redeemable convertible preferred stock and dividend on convertible preferred stock | 0 | (4,021) | 0 | ||||||||
Add back: series D-3 derivative liability revaluations | 0 | 735 | 0 | ||||||||
Add back: adjustment to undistributed income attributed to redeemable convertible preferred stockholders | 0 | 843 | 0 | ||||||||
Net income (loss) attributable to common stockholders for diluted earnings per share | $ 16,613 | $ 10,901 | $ (7,132) | ||||||||
Weighted-average common shares outstanding (shares) | 56,719 | 31,181 | 5,651 | ||||||||
Weighted-average dilutive effect of stock options (shares) | 2,144 | 3,071 | 0 | ||||||||
Weighted-average dilutive effect of common shares from stock warrants (shares) | 0 | 1,227 | 0 | ||||||||
Dilutive effect from preferred stock assuming conversion (shares) | 0 | 16,377 | 0 | ||||||||
Weighted-average common shares outstanding (shares) | 58,863 | 51,856 | 5,651 | ||||||||
Basic (dollars per share) | $ 0.05 | $ 0.07 | $ 0.08 | $ 0.09 | $ 0.03 | $ 0.06 | $ 0.19 | $ 0.52 | $ 0.29 | $ 0.39 | $ (1.26) |
Diluted (dollars per share) | $ 0.05 | $ 0.07 | $ 0.08 | $ 0.09 | $ 0.02 | $ 0.05 | $ 0.06 | $ 0.08 | $ 0.28 | $ 0.21 | $ (1.26) |
Net income (loss) per share a37
Net income (loss) per share attributable to common stockholders (Anti-dilutive securities) (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 791 | 745 | 33,200 |
Cash, cash equivalents and ma38
Cash, cash equivalents and marketable securities (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents, cost basis | $ 83,641 | $ 111,005 | $ 13,917 | $ 5,905 |
Total cash, cash equivalents and marketable securities, cost basis | 123,933 | 111,005 | ||
Marketable securities, gross unrealized gains | 78 | 0 | ||
Marketable securities, gross unrealized losses | (236) | 0 | ||
Cash and cash equivalents, fair value | 83,641 | 111,005 | ||
Mutual funds | 40,134 | 0 | ||
Total cash, cash equivalents and marketable securities, fair value | 123,775 | 111,005 | ||
Mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Marketable securities, cost basis | 40,292 | 0 | ||
Marketable securities, gross unrealized gains | 78 | 0 | ||
Marketable securities, gross unrealized losses | (236) | 0 | ||
Mutual funds | $ 40,134 | $ 0 |
Cash, cash equivalents and ma39
Cash, cash equivalents and marketable securities (Contract Maturity) (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |
One year or less | $ 25,134 |
Over one year and less than five years | 15,158 |
Total | 40,292 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |
One year or less | 25,108 |
Over one year and less than five years | 15,026 |
Total | $ 40,134 |
Property and equipment (Schedul
Property and equipment (Schedule of property and equipment) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,117 | $ 5,836 |
Accumulated depreciation | (4,611) | (3,259) |
Property and equipment, net | 3,506 | 2,577 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 700 | 506 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,592 | 1,317 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,825 | $ 4,013 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,500 | $ 1,100 | $ 728 |
Intangible assets and goodwil42
Intangible assets and goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition of intangible member assets | $ 40,489 | $ 0 | $ 0 |
Capitalized software development costs | 5,600 | 5,200 | 1,800 |
Software development costs incurred and expensed | 7,600 | 4,600 | 2,400 |
Amortization expense | 7,100 | $ 4,800 | $ 3,500 |
Portfolio one of HSAs acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition of intangible member assets | 34,200 | ||
Portfolio two of HSAs acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition of intangible member assets | $ 6,200 | ||
Capitalized software development costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets (in years) | 15 years |
Intangible assets and goodwil43
Intangible assets and goodwill (Schedule of finite-lived intangible assets) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 87,046 | $ 39,726 |
Accumulated amortization | (20,206) | (13,185) |
Intangible assets, net | 66,840 | 26,541 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 16,104 | 10,468 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 5,994 | 4,695 |
Acquired intangible member assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 64,948 | $ 24,563 |
Intangible assets and goodwil44
Intangible assets and goodwill (Schedule for future amortization expense) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
YE 2,017 | $ 9,417 | |
YE 2,018 | 7,679 | |
YE 2,019 | 5,867 | |
YE 2,020 | 4,518 | |
YE 2,021 | 4,330 | |
Thereafter | 35,029 | |
Intangible assets, net | $ 66,840 | $ 26,541 |
Commitments and contingencies F
Commitments and contingencies Future Minimum Rental (Details) - USD ($) $ in Thousands | Jul. 01, 2015 | May. 15, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Operating Leased Assets [Line Items] | |||||
YE 2,017 | $ 1,892 | ||||
YE 2,018 | 1,641 | ||||
YE 2,019 | 1,662 | ||||
YE 2,019 | 1,643 | ||||
YE 2,021 | 1,822 | ||||
Thereafter | 9,987 | ||||
Total | 18,647 | ||||
Lease Agreement Signed on May Fifteen Twenty Fifteen | |||||
Operating Leased Assets [Line Items] | |||||
Annual initial rent | $ 1,000 | ||||
Annual increase in rent (percentage) | 2.50% | ||||
Lease expense for office space | $ 470 | ||||
Amended Lease Agreement | |||||
Operating Leased Assets [Line Items] | |||||
Annual initial rent | $ 1,600 | ||||
Annual increase in rent (percentage) | 2.50% | ||||
Term of contract | 129 months | ||||
Office lease | |||||
Operating Leased Assets [Line Items] | |||||
YE 2,017 | $ 1,685 | ||||
YE 2,018 | 1,587 | ||||
YE 2,019 | 1,627 | ||||
YE 2,019 | 1,608 | ||||
YE 2,021 | 1,790 | ||||
Thereafter | 9,983 | ||||
Total | 18,280 | ||||
Term of contract | 129 months | ||||
Lease expense for office space | 2,100 | $ 1,600 | $ 935 | ||
Other agreements | |||||
Operating Leased Assets [Line Items] | |||||
YE 2,017 | 207 | ||||
YE 2,018 | 54 | ||||
YE 2,019 | 35 | ||||
YE 2,019 | 35 | ||||
YE 2,021 | 32 | ||||
Thereafter | 4 | ||||
Total | 367 | ||||
Lease expense for office space | $ 249 | $ 148 | $ 214 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Jul. 01, 2015lease_renewal | May. 15, 2015lease_renewal | Jan. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |||
Written notice required for contract termination (days) | 180 days | ||
Contract termination fees, as percentage of minimum processing fees (percentage) | 75.00% | ||
Processing Fees | |||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | 5 years | |
Processing Service Fees | |||
Processing Fees | |||
YE 2,017 | $ 825 | ||
YE 2,018 | 825 | ||
YE 2,019 | 825 | ||
YE 2,020 | 825 | ||
YE 2,021 | 825 | ||
Office lease | |||
Operating Leased Assets [Line Items] | |||
Term of contract | 129 months | ||
Lease Agreement Signed on May Fifteen Twenty Fifteen | |||
Operating Leased Assets [Line Items] | |||
Number of lease renewals | lease_renewal | 2 | ||
Processing Fees | |||
Annual initial rent | $ 1,000 | ||
Annual increase in rent (percentage) | 2.50% | ||
Amended Lease Agreement | |||
Operating Leased Assets [Line Items] | |||
Term of contract | 129 months | ||
Number of lease renewals | lease_renewal | 2 | ||
Processing Fees | |||
Annual initial rent | $ 1,600 | ||
Annual increase in rent (percentage) | 2.50% |
Indebtedness (Details)
Indebtedness (Details) - Line of Credit - Secured Revolving Credit Facility | Sep. 30, 2015USD ($) | Jan. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||
Secured revolving credit facility, aggregate principal | $ 100,000,000 | |
Interest expense | $ 91,000 | |
Credit facility, deferred finance costs, net | $ 317,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee (percentage) | 0.20% | |
Interest coverage ratio (percentage) | 3 | |
Minimum | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread (percentage) | 1.50% | |
Minimum | Customary Base Rate | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread (percentage) | 0.50% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee (percentage) | 0.30% | |
Leverage ratio (percentage) | 3 | |
Maximum | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread (percentage) | 2.00% | |
Maximum | Customary Base Rate | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread (percentage) | 1.00% |
Income taxes (Details)
Income taxes (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax rate (percentage) | 34.00% | ||
Decrease in valuation allowance | $ 0 | $ 29,000 | |
Valuation allowance balance | $ 0 | 0 | |
Excess stock option benefit | 7,400,000 | ||
Nonqualified stock options | 3,018,000 | 994,000 | |
Total gross unrecognized tax benefits | 393,000 | 300,000 | 256,000 |
Anticipated decrease in total gross unrecognized tax benefits within 12 months | 325,000 | 230,000 | |
Period increase (decrease) in unrecognized tax benefit | 93,000 | ||
Increase (decrease) in interest and penalty recorded as unrecognized tax benefit. | (8,000) | (6,000) | $ 5,000 |
Penalties and interest accrued | 0 | 8,000 | |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | $ 1,000 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | 547,000 | ||
December 31, 2023 Through 2029 | State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 1,500,000 | ||
December 31, 2023 Through 2029 | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 55,000 | ||
December 31, 2024 | Research | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | 1,200,000 | ||
December 31, 2018 | Research | State | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | $ 631,000 |
Income taxes (Component of Inco
Income taxes (Component of Income tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Current: | |||||||||||
Federal | $ 9,876 | $ 3,574 | $ 225 | ||||||||
State | 1,226 | 451 | 93 | ||||||||
Total current tax provision | 11,102 | 4,025 | 318 | ||||||||
Deferred: | |||||||||||
Federal | (1,772) | 1,703 | 3,622 | ||||||||
State | (389) | (130) | 201 | ||||||||
Total deferred tax provision (benefit) | (2,161) | 1,573 | 3,823 | ||||||||
Total income tax provision | $ 1,168 | $ 2,338 | $ 2,535 | $ 2,900 | $ 551 | $ 1,100 | $ 2,004 | $ 1,943 | $ 8,941 | $ 5,598 | $ 4,141 |
Income taxes (Reconciliation of
Income taxes (Reconciliation of Income tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal income tax provision at the statutory rate | $ 8,688 | $ 5,360 | $ 1,827 | ||||||||
State income tax provision, net of federal tax benefit | 541 | 297 | 293 | ||||||||
Non-deductible or non-taxable items | 56 | 313 | 2,144 | ||||||||
Federal research and development credit | (371) | (421) | (160) | ||||||||
Change in valuation allowance | 0 | 0 | (29) | ||||||||
Change in uncertain tax position reserves, net of indirect benefits | 96 | 54 | 43 | ||||||||
Other items, net | (69) | (5) | 23 | ||||||||
Total income tax provision | $ 1,168 | $ 2,338 | $ 2,535 | $ 2,900 | $ 551 | $ 1,100 | $ 2,004 | $ 1,943 | $ 8,941 | $ 5,598 | $ 4,141 |
Income tax rate (percentage) | 35.00% | 35.50% | 77.10% |
Income taxes (Deferred tax Asse
Income taxes (Deferred tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Deferred tax assets: | ||
Accrued bonuses | $ 646 | $ 441 |
Net operating loss carryforward | 55 | 21 |
Research and development credits | 1,120 | 751 |
AMT credits | 548 | 412 |
Other, net | 273 | 139 |
Net current deferred tax asset | 2,642 | 1,764 |
Net operating loss carryforward | 32 | 35 |
Nonqualified stock options | 3,018 | 994 |
Research and development credits | 120 | 0 |
Deferred rent | 89 | 184 |
Other, net | 28 | 24 |
Net non-current deferred tax asset | 3,287 | 1,237 |
Total gross deferred tax assets | 5,929 | 3,001 |
Deferred tax liabilities: | ||
Fixed assets: depreciation and gain/loss | (762) | (675) |
Intangibles: amortization | (6,521) | (5,897) |
Total gross non-current deferred tax liability | (7,283) | (6,572) |
Net non-current deferred tax liability | (3,996) | (5,335) |
Net deferred tax liability | $ (1,354) | $ (3,571) |
Income taxes (Unrecognized Tax
Income taxes (Unrecognized Tax Benefit Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross unrecognized tax benefits, beginning balance | $ 300 | $ 256 |
Increases as a result of tax positions taken during a prior period | 0 | 0 |
Decreases as a result of tax positions taken during a prior period | 0 | (88) |
Increases as a result of tax positions taken during the current period | 115 | 144 |
Decreases as a result of tax positions taken during the current period | 0 | 0 |
Decreases resulting from the lapse of the applicable statute of limitations | (22) | (12) |
Gross unrecognized tax benefits, ending balance | 393 | 300 |
Amounts netted against related deferred tax assets | (393) | (280) |
Unrecognized tax benefits recorded on the consolidated balance sheet | $ 0 | $ 20 |
Redeemable convertible prefer53
Redeemable convertible preferred stock and convertible preferred stock (Narrative) (Details) $ / shares in Units, $ in Thousands | Aug. 05, 2014shares | Aug. 04, 2014USD ($) | Jan. 31, 2014USD ($)$ / sharesshares | Jan. 30, 2014$ / sharesshares | Jan. 31, 2016$ / sharesshares | Jan. 31, 2015USD ($)$ / sharesshares | Jan. 31, 2014USD ($)$ / sharesshares | Jul. 14, 2014$ / shares | Jan. 29, 2014$ / sharesshares | Jan. 31, 2013USD ($)shares |
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares outstanding (shares) | 0 | 0 | ||||||||
Preferred stock, par value per share (dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Repurchase price per share | $ / shares | $ 5 | $ 5 | ||||||||
Temporary equity, shares outstanding (shares) | 17,349,000 | 0 | 0 | 17,349,000 | 17,433,000 | |||||
Dividends paid, shares | $ | $ 347 | $ 694 | ||||||||
Common stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion of preferred stock to common stock | 32,486,588 | |||||||||
Number of stock repurchased (shares) | 674,000 | 674,120,000 | ||||||||
Series A Convertible preferred stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion ratio to common stock | 1 | 1 | ||||||||
Preferred stock, shares outstanding (shares) | 2,000,000 | 2,000,000 | ||||||||
Preferred stock, par value per share (dollars per share) | $ / shares | $ 1 | $ 1 | ||||||||
Shares reserved for future issuance | 2,000,000 | 2,000,000 | ||||||||
Preferred stock, dividend rate, percentage | 6.00% | |||||||||
Series B Convertible preferred stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares outstanding (shares) | 4,156,000 | 4,156,000 | 4,700,000 | |||||||
Preferred stock, par value per share (dollars per share) | $ / shares | $ 1.5 | |||||||||
Shares reserved for future issuance | 4,200,000 | 4,200,000 | 4,700,000 | |||||||
Preferred stock, dividend rate, percentage | 6.00% | |||||||||
Number of stock repurchased (shares) | 582,000 | |||||||||
Repurchase price per share | $ / shares | $ 5 | |||||||||
Series C Redeemable convertible preferred stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion ratio to common stock | 1.38 | |||||||||
Number of stock repurchased (shares) | 22,000 | |||||||||
Repurchase price per share | $ / shares | $ 5 | |||||||||
Temporary equity, shares outstanding (shares) | 6,800,000 | 6,800,000 | ||||||||
Temporary equity, par or stated value per share | $ / shares | $ 2.32 | $ 2.32 | ||||||||
Temporary equity, shares convertible into common shares | 9,400,000 | 9,400,000 | ||||||||
Temporary equity, dividend rate, percentage | 6.00% | |||||||||
Series C redeemable convertible preferred stock, special voting rights (percentage) | 5.00% | |||||||||
Series D1 Redeemable convertible preferred stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion ratio to common stock | 2 | |||||||||
Temporary equity, shares outstanding (shares) | 5,800,000 | 5,800,000 | ||||||||
Temporary equity, par or stated value per share | $ / shares | $ 1.1 | $ 1.1 | ||||||||
Temporary equity, shares convertible into common shares | 11,700,000 | 11,700,000 | ||||||||
Temporary equity, dividend rate, percentage | 6.00% | |||||||||
Series D2 Redeemable convertible preferred stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion ratio to common stock | 2.27 | |||||||||
Temporary equity, shares outstanding (shares) | 440,000 | 440,000 | ||||||||
Temporary equity, par or stated value per share | $ / shares | $ 1.25 | $ 1.25 | ||||||||
Temporary equity, shares convertible into common shares | 1,000,000 | 1,000,000 | ||||||||
Temporary equity, dividend rate, percentage | 6.00% | |||||||||
Series D3 Redeemable convertible preferred stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of stock repurchased (shares) | 61,743 | |||||||||
Repurchase price per share | $ / shares | $ 5 | |||||||||
Temporary equity, shares outstanding (shares) | 4,300,000 | 4,400,000 | 4,300,000 | 248,000 | ||||||
Temporary equity, par or stated value per share | $ / shares | $ 2.64 | |||||||||
Temporary equity, shares convertible into common shares | 4,300,000 | 4,400,000 | 4,300,000 | 200,000 | ||||||
Temporary equity, dividend rate, percentage | 6.00% | |||||||||
Temporary equity, dividend payable, duration to pay dividends | 30 days | |||||||||
Temporary equity, par value | $ | $ 655 | |||||||||
Dividends paid, shares | $ | $ 347 | $ 694 | ||||||||
Dividend per share | $ / shares | $ 0.16 | |||||||||
Series D-3 redeemable convertible preferred stock derivative liability | $ | $ 6,200 | $ 6,200 | ||||||||
Common stock | Series C Redeemable convertible preferred stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of stock repurchased (shares) | 31,000 |
Common stock warrants (Details)
Common stock warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2014 | |
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (usd per share) | $ 0.8008 | $ 0.0682 | |
Warrants exercised (shares) | 2,972,000 | 1,084,000 | |
Warrants outstanding (shares) | 0 | 0 | |
Series A Convertible Preferred Stock, Exercisable Through November 2015 | |||
Class of Warrant or Right [Line Items] | |||
Number of securities called by warrants (shares) | 150,000 | ||
Exercise price of warrants (usd per share) | $ 1 | ||
Warrants exercised (shares) | 124,000 | 26,000 | |
Warrants outstanding (shares) | 124,000 | ||
Value of common stock warrants | $ 51 | ||
Series B Convertible Preferred Stock, Exercisable Through February 2014 | |||
Class of Warrant or Right [Line Items] | |||
Number of securities called by warrants (shares) | 400,000 | ||
Exercise price of warrants (usd per share) | $ 1 | ||
Warrants exercised (shares) | 340,000 | 50,000 | |
Warrants forfeited (shares) | 10,000 | ||
Warrants outstanding (shares) | 350,000 | ||
Value of common stock warrants | $ 44 | ||
Series B Convertible Preferred Stock, Exercisable Through Sept 2015 | |||
Class of Warrant or Right [Line Items] | |||
Number of securities called by warrants (shares) | 200,000 | ||
Exercise price of warrants (usd per share) | $ 1 | ||
Warrants exercised (shares) | 5,000 | ||
Warrants outstanding (shares) | 195,000 | 195,000 | |
Value of common stock warrants | $ 66 | ||
Series C Redeemable Convertible Preferred Stock, Exercisable Through August 2016 | |||
Class of Warrant or Right [Line Items] | |||
Number of securities called by warrants (shares) | 600,000 | ||
Exercise price of warrants (usd per share) | $ 1.50 | ||
Warrants exercised (shares) | 10,000 | ||
Warrants outstanding (shares) | 590,000 | 590,000 | |
Value of common stock warrants | $ 339 | ||
Series C Redeemable Convertible Preferred Stock, Exercisable Through May 7, 2015 | |||
Class of Warrant or Right [Line Items] | |||
Number of securities called by warrants (shares) | 1,000,000 | ||
Exercise price of warrants (usd per share) | $ 0.01 | ||
Warrants exercised (shares) | 4,000 | ||
Warrants outstanding (shares) | 1,000,000 | 1,000,000 | |
Value of common stock warrants | $ 1,600 | ||
Series D1 Redeemable Convertible Preferred Stock, Exercisable Through 2016 | |||
Class of Warrant or Right [Line Items] | |||
Number of securities called by warrants (shares) | 400,000 | ||
Exercise price of warrants (usd per share) | $ 2 | ||
Warrants outstanding (shares) | 400,000 | 400,000 | |
Series D3 Redeemable Convertible Preferred Stock, Exercisable Through August 2021 | |||
Class of Warrant or Right [Line Items] | |||
Number of securities called by warrants (shares) | 966,000 | ||
Exercise price of warrants (usd per share) | $ 0.01 | ||
Warrants exercised (shares) | 767,000 | ||
Warrants outstanding (shares) | 199,000 | ||
Value of common stock warrants | $ 1,700 |
Stock options (Details)
Stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Number of options | |||
Opening balance (shares) | 6,457 | ||
Granted (shares) | 1,093 | ||
Number of shares exercised (shares) | (1,951) | (1,841) | (568) |
Forfeited (shares) | (181) | ||
Ending balance (shares) | 5,418 | 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) | 33.47 | ||
Exercised, minimum (usd per share) | 0.10 | ||
Exercised, maximum (usd per share) | 18.93 | ||
Forfeited, minimum (usd per share) | 0.50 | ||
Forfeited, maximum (usd per share) | 28.69 | ||
Ending balance, minimum (usd per share) | 0.10 | $ 0.10 | |
Ending balance, maximum (usd per share) | 33.47 | 25.45 | |
Weighted- average exercise price (usd per share) | |||
Opening balance (usd per share) | 5.27 | ||
Granted (usd per share) | 27.34 | ||
Exercised (usd per share) | 0.9800 | 1.3204 | $ 0.9210 |
Forfeited (usd per share) | 16.63 | ||
Ending balance (usd per share) | $ 10.88 | $ 5.27 | |
Weighted- average contractual term (in years) | 7 years 10 days | 6 years 10 months 18 days | |
Aggregate intrinsic value | $ 63,965 | $ 100,290 | |
Vested and expected to vest as of year end (shares) | 5,221 | ||
Vested and expected to vest as of year end, weighted average exercise price (usd per share) | $ 10.59 | ||
Vested and expected to vest as of year end, weighted- average contractual term (in years) | 6 years 11 months 20 days | ||
Vested and expected to vest as of year end, aggregate intrinsic value | $ 62,958 | ||
Exercisable as of year end (shares) | 2,532 | ||
Exercisable as of year end (usd per share) | $ 2.84 | ||
Exercisable as of year end, weighted-average contractual term (in years) | 5 years 2 months 10 days | ||
Exercisable as of year end, aggregate intrinsic value | $ 47,755 |
Stock options (Assumptions) (De
Stock options (Assumptions) (Details) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected stock price volatility | 32.90% | ||
Expected life of options | 3 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 38.29% | 32.90% | |
Risk-free interest rate | 1.47% | 1.12% | 0.35% |
Expected life of options | 5 years 5 months 5 days | 5 years 7 months 6 days | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 40.29% | 40.29% | |
Risk-free interest rate | 1.80% | 2.24% | 0.80% |
Expected life of options | 6 years 3 months | 7 years 3 months 18 days |
Stock options (Narrative) (Deta
Stock options (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (shares) | 2,600,000 | 600,000 | |||
Increase in authorized shares (shares) | 2,000,000 | ||||
Additional shares available for grants as percentage of capital stock outstanding (percentage) | 3.00% | ||||
Shares available for grant (shares) | 1,200,000 | ||||
Expiration period after termination (in years) | 10 years | ||||
Expiration period from termination of employment | 90 days | ||||
Aggregate intrinsic value | $ 51,800 | $ 9,500 | $ 761 | ||
Grants to certain directors and key employees (shares) | 1,093,000 | ||||
Options exercisable (shares) | 2,500,000 | 4,100,000 | |||
Options granted, grant date fair value (usd per share) | $ 11.14 | $ 6.29 | $ 0.43 | ||
Weighted-average vesting period of non-vested awards expected to vest (in years) | 2 years 6 months 20 days | ||||
Unrecognized stock compensation expense to be recognized in future | $ 14,600 | ||||
Share based compensation | 5,883 | $ 2,525 | $ 57 | ||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock granted (shares) | 1,500,000 | ||||
Share based compensation | $ 2,500 | $ 1,700 | |||
Performance Shares | Vesting criteria for FY 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested (percentage) | 10.00% | ||||
Minimum adjusted EBITDA to be attained for shares to vest | $ 34,500 | ||||
Performance Shares | Vesting criteria for FY 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested (percentage) | 20.00% | ||||
Annual growth rate of adjusted EBITDA per share of common stock to be achieved for options to vest (percentage) | 30.00% | ||||
Performance Shares | Vesting criteria for FY 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested (percentage) | 30.00% | ||||
Annual growth rate of adjusted EBITDA per share of common stock to be achieved for options to vest (percentage) | 30.00% | ||||
Performance Shares | Vesting criteria for FY 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested (percentage) | 40.00% | ||||
Annual growth rate of adjusted EBITDA per share of common stock to be achieved for options to vest (percentage) | 25.00% | ||||
Directors and Key Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants to certain directors and key employees (shares) | 1,100,000 | 608,800 | 624,000 | ||
Directors and Key Employees | Vesting Period of Four Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants to certain directors and key employees (shares) | 1,000,000 | 526,300 | 534,000 | ||
Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants to certain directors and key employees (shares) | 140,000 | 82,500 | |||
Maximum | Directors and Key Employees | Vesting Period of Four Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years |
Stock options (Stock-based Comp
Stock options (Stock-based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 5,883 | $ 2,525 | $ 57 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 1,088 | 403 | 9 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 903 | 504 | 12 |
Technology and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 1,014 | 263 | 16 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 2,878 | $ 1,355 | $ 20 |
Stock repurchase (Details)
Stock repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 30, 2014 | Jan. 31, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase price per share (shares) | $ 5 | $ 5 |
Total purchase price | $ 3,400 | $ 3,135 |
Common stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of stock repurchased (shares) | 674,000 | 674,120,000 |
Series B, Series C and Series D-3 Preferred Stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of stock repurchased (shares) | 660,000 | 665,613,000 |
Fair value (Details)
Fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | $ 40,134 | $ 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 0 | 6,182 |
Loss on revaluation | 0 | 735 |
Elimination of liability due to removal of FMV provision | 0 | (6,917) |
Balance at the end of period | 0 | $ 0 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | $ 40,134 |
Fair value ( Fair Value Assumpt
Fair value ( Fair Value Assumptions) (Details) - Series D-3 redeemable convertible preferred stock derivative liability - Level 3 | 12 Months Ended |
Jan. 31, 2015$ / shares | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Market value of common stock on measurement date (usd per share) | $ 4.06 |
Projected exercise price (usd per share) | $ 2.64 |
Risk-free interest rate (percentage) | 0.06% |
Expected lives | 180 days |
Expected volatility (percentage) | 25.20% |
Probability of liquidation event (percentage) | 0.00% |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Company owned by President and Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Amounts paid under consulting agreement | $ 0 | $ 162 | $ 450 |
401(k) plan (Details)
401(k) plan (Details) - United States Postretirement Benefit Plan of US Entity - 401(k) - USD ($) $ in Thousands | Apr. 30, 2014 | May. 31, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Defined Contribution Plan Disclosure [Line Items] | |||||
Employer matching contribution (percentage) | 50.00% | 50.00% | |||
Percent of employees eligible earnings (percentage) | 4.00% | 6.00% | |||
Annual vesting (percentage) | 25.00% | ||||
Administrative expenses | $ 16 | $ 8 | $ 7 | ||
Employer matching contribution expense | $ 626 | $ 375 | $ 176 |
Supplementary quarterly finan64
Supplementary quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||||||||||
Total revenue | $ 35,886 | $ 30,556 | $ 30,494 | $ 29,850 | $ 24,871 | $ 21,862 | $ 20,891 | $ 20,231 | $ 126,786 | $ 87,855 | $ 62,015 |
Total cost of revenue | 17,455 | 12,880 | 11,909 | 11,944 | 12,358 | 9,630 | 9,122 | 8,772 | 54,188 | 39,882 | 29,213 |
Gross profit | 18,431 | 17,676 | 18,585 | 17,906 | 12,513 | 12,232 | 11,769 | 11,459 | 72,598 | 47,973 | 32,802 |
Total operating expenses | 14,072 | 11,372 | 11,087 | 9,924 | 10,493 | 7,938 | 6,698 | 5,971 | 46,455 | 31,100 | 21,278 |
Total other expense | (63) | 121 | (542) | (105) | (98) | (145) | (39) | (827) | (589) | (1,109) | (6,150) |
Income tax provision | 1,168 | 2,338 | 2,535 | 2,900 | 551 | 1,100 | 2,004 | 1,943 | 8,941 | 5,598 | 4,141 |
Net income | $ 3,128 | $ 4,087 | $ 4,421 | $ 4,977 | $ 1,371 | $ 3,049 | $ 3,028 | $ 2,718 | 16,613 | 10,166 | 1,233 |
Comprehensive income | $ 16,515 | $ 10,166 | $ 1,233 | ||||||||
Basic (dollars per share) | $ 0.05 | $ 0.07 | $ 0.08 | $ 0.09 | $ 0.03 | $ 0.06 | $ 0.19 | $ 0.52 | $ 0.29 | $ 0.39 | $ (1.26) |
Diluted (dollars per share) | $ 0.05 | $ 0.07 | $ 0.08 | $ 0.09 | $ 0.02 | $ 0.05 | $ 0.06 | $ 0.08 | $ 0.28 | $ 0.21 | $ (1.26) |
Revenue Understated [Member] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||||||||||
Adjustment for error caused by understatement of revenue | $ 408 | ||||||||||
Increase in net income and comprehensive income | $ 246 |