Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2016 | May. 31, 2016 | |
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-Q | |
Document Period End Date | Apr. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 58,087,307 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 92,766 | $ 83,641 |
Marketable securities, at fair value | 40,159 | 40,134 |
Total cash, cash equivalents and marketable securities | 132,925 | 123,775 |
Accounts receivable, net of allowance for doubtful accounts of $36 as of April 30, 2016 and $40 as of January 31, 2016 | 15,706 | 14,308 |
Inventories | 598 | 620 |
Current deferred tax asset | 0 | 2,642 |
Other current assets | 6,300 | 1,703 |
Total current assets | 155,529 | 143,048 |
Property and equipment, net | 3,388 | 3,506 |
Intangible assets, net | 66,454 | 66,840 |
Goodwill | 4,651 | 4,651 |
Deferred tax asset | 345 | 0 |
Other assets | 1,874 | 1,750 |
Total assets | 232,241 | 219,795 |
Current liabilities | ||
Accounts payable | 1,226 | 2,431 |
Accrued compensation | 2,603 | 7,776 |
Accrued liabilities | 3,146 | 1,899 |
Total current liabilities | 6,975 | 12,106 |
Long-term liabilities | ||
Other long-term liability | 819 | 236 |
Deferred tax liability | 1,711 | 3,996 |
Total long-term liabilities | 2,530 | 4,232 |
Total liabilities | $ 9,505 | $ 16,338 |
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 April 30, 2016 and January 31, 2016, respectively | $ 0 | $ 0 |
Common stock, $0.0001 par value, 900,000 shares authorized, 57,945 and 57,726 shares issued and outstanding as of April 30, 2016 and January 31, 2016, respectively | 6 | 6 |
Additional paid-in capital | 211,185 | 199,940 |
Accumulated other comprehensive loss | (137) | (98) |
Accumulated earnings | 11,682 | 3,609 |
Total stockholders’ equity | 222,736 | 203,457 |
Total liabilities and stockholders’ equity | $ 232,241 | $ 219,795 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts of $36 as of April 30, 2016 and $40 as of January 31, 2016 | $ 36 | $ 40 |
Preferred Stock, Par Value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value (usd per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 900,000,000 | 900,000,000 |
Common Stock, Shares, Issued | 57,945,000 | 57,726,000 |
Common Stock, Shares, Outstanding | 57,945,000 | 57,726,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations And Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Revenue: | ||
Service revenue | $ 18,994 | $ 14,614 |
Custodial revenue | 13,811 | 8,419 |
Interchange revenue | 11,208 | 6,817 |
Total revenue | 44,013 | 29,850 |
Cost of revenue: | ||
Service costs | 11,257 | 8,419 |
Custodial costs | 2,356 | 1,423 |
Interchange costs | 2,719 | 2,102 |
Total cost of revenue | 16,332 | 11,944 |
Gross profit | 27,681 | 17,906 |
Operating expenses: | ||
Sales and marketing | 4,183 | 2,833 |
Technology and development | 4,625 | 3,524 |
General and administrative | 4,574 | 3,158 |
Amortization of acquired intangible assets | 1,049 | 409 |
Total operating expenses | 14,431 | 9,924 |
Income from operations | 13,250 | 7,982 |
Other expense: | ||
Other expense, net | (641) | (105) |
Total other expense | (641) | (105) |
Income before income taxes | 12,609 | 7,877 |
Income tax provision | 4,536 | 2,900 |
Net income | $ 8,073 | $ 4,977 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.14 | $ 0.09 |
Diluted (in dollars per share) | $ 0.14 | $ 0.09 |
Weighted-average number of shares used in computing net income per share: | ||
Basic (in shares) | 57,820 | 55,063 |
Diluted (in shares) | 59,399 | 57,770 |
Comprehensive income: | ||
Net income | $ 8,073 | $ 4,977 |
Other comprehensive loss: | ||
Unrealized loss on available-for-sale marketable securities, net of tax | (39) | (22) |
Comprehensive income | $ 8,034 | $ 4,955 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 8,073 | $ 4,977 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,947 | 1,750 |
Amortization of deferred financing costs | 18 | 0 |
Deferred taxes | 34 | (2) |
Stock-based compensation | 1,822 | 1,094 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,398) | (1,425) |
Inventories | 22 | (42) |
Other assets | (4,739) | (871) |
Accounts payable | (1,241) | (340) |
Accrued compensation | (5,173) | (3,260) |
Accrued liabilities | 1,164 | (99) |
Other long-term liability | 583 | (11) |
Net cash provided by operating activities | 2,112 | 1,771 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (86) | (40,062) |
Purchase of property and equipment | (321) | (826) |
Purchase of software and capitalized software development costs | (2,003) | (1,451) |
Net cash used in investing activities | (2,410) | (42,339) |
Cash flows from financing activities: | ||
Proceeds from exercise of common stock options | 145 | 493 |
Tax benefit from exercise of common stock options | 9,278 | 3,931 |
Net cash provided by financing activities | 9,423 | 4,424 |
Increase (decrease) in cash and cash equivalents | 9,125 | (36,144) |
Beginning cash and cash equivalents | 83,641 | 111,005 |
Ending cash and cash equivalents | 92,766 | 74,861 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable or accrued liabilities at period end | 8 | $ 0 |
Purchases of software and capitalized software development costs included in accounts payable or accrued liabilities at period end | $ 111 |
Summary of business and signifi
Summary of business and significant accounting policies | 3 Months Ended |
Apr. 30, 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. The Company offers a full range of innovative solutions for managing health care accounts (Health Savings Accounts, Health Reimbursement Arrangements, and Flexible Spending Accounts) for health plans, insurance companies, and third-party administrators. Principles of consolidation —The condensed consolidated financial statements include the accounts of HealthEquity, Inc. and its wholly owned subsidiaries, HEQ Insurance Services, Inc., and HealthEquity Advisors, LLC (collectively referred to as the "Company"). During the year ended January 31, 2015, the Company and an unrelated company formed a limited partnership for investment in and the management of early stage companies in the healthcare industry. The Company has a 22% ownership interest in such partnership accounted for using the equity method of accounting. The investment was approximately $281,000 as of April 30, 2016 and is included in other assets on the accompanying condensed consolidated balance sheet. 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. The investment was $500,000 as of April 30, 2016 and is included in other assets on the accompanying condensed consolidated balance sheet. All significant intercompany balances and transactions have been eliminated. Basis of presentation —The accompanying condensed consolidated financial statements as of April 30, 2016 and for the three months ended April 30, 2016 and 2015 are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended January 31, 2016. The fiscal year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. As of January 31, 2016 , 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. Amounts previously referred to as card costs are now referred to as interchange costs. 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. The Company has reclassified certain financial statement line items to conform with the newly revised financial statement line items. Other expense —During the three months ended April 30, 2016 , the Company incurred $585,000 of acquisition-related expenses. These expenses are included in other expense, net on the accompanying condensed consolidated statements of operations and comprehensive income. Recent accounting pronouncements —On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This 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. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients which provides clarification on assessing the collectability criterion , presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. The foregoing amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods.The Company has not yet selected a transition method and is evaluating the effect that these recent pronouncements will have on the consolidated financial statements. 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. This ASU 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 adopted this ASU with no impact on the accompanying condensed consolidated financial statements as no amounts had been drawn under the Credit Agreement (See Note 7). 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. Effective April 30, 2016 , the Company early adopted ASU No. 2015-17 on a prospective basis, which resulted in the reclassification of the Company's current deferred tax asset between both non-current deferred tax asset and non-current deferred tax liability on its consolidated balance sheet. No prior periods were retrospectively adjusted. 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. This 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. This ASU 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 2016-09, I mprovements to Employee Share-Based Payment Accounting , which amends ASC Topic 718, Compensation - Stock Compensation . This ASU simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the timing of adoption and the potential effect of this ASU on the consolidated financial statements. |
Net income per share attributab
Net income per share attributable to common stockholders | 3 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net income per share | The following table sets forth the computation of basic and diluted net income per share: (in thousands, except per share data) Three months ended April 30, 2016 2015 Numerator (basic and diluted): Net income $ 8,073 $ 4,977 Denominator (basic): Weighted-average common shares outstanding 57,820 55,063 Denominator (diluted): Weighted-average common shares outstanding 57,820 55,063 Weighted-average dilutive effect of stock options 1,579 2,707 Diluted weighted-average common shares outstanding 59,399 57,770 Net income per share: Basic $ 0.14 $ 0.09 Diluted $ 0.14 $ 0.09 For the three months ended April 30, 2016 and 2015 , approximately 1.6 million and 679,000 shares, respectively, attributable to stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. |
Cash, cash equivalents and mark
Cash, cash equivalents and marketable securities | 3 Months Ended |
Apr. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities as of April 30, 2016 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 92,766 $ — $ — $ 92,766 Marketable securities: Mutual funds 40,378 104 (323 ) 40,159 Total cash, cash equivalents and marketable securities $ 133,144 $ 104 $ (323 ) $ 132,925 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 The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of April 30, 2016 : (in thousands) Cost basis Fair value One year or less $ 25,179 $ 25,159 Over one year and less than five years 15,199 15,000 Total $ 40,378 $ 40,159 As of April 30, 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 | 3 Months Ended |
Apr. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consisted of the following as of April 30, 2016 and January 31, 2016 : (in thousands) April 30, 2016 January 31, 2016 Leasehold improvements $ 732 $ 700 Furniture and fixtures 1,632 1,592 Computer equipment 6,082 5,825 Property and equipment, gross 8,446 8,117 Accumulated depreciation (5,058 ) (4,611 ) Property and equipment, net $ 3,388 $ 3,506 Depreciation expense for the three months ended April 30, 2016 and 2015 was $447,000 and $324,000 , respectively. |
Intangible assets and goodwill
Intangible assets and goodwill | 3 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets and goodwill | During the three months ended April 30, 2016 and 2015 , the Company capitalized software development costs of $1.9 million and $1.2 million , respectively, related to significant enhancements and upgrades to its proprietary system. The gross carrying amount and associated accumulated amortization of intangible assets were as follows as of April 30, 2016 and January 31, 2016 : (in thousands) April 30, 2016 January 31, 2016 Amortized intangible assets: Capitalized software development costs $ 18,008 $ 16,104 Software 6,189 5,994 Acquired intangible member assets 64,963 64,948 Intangible assets, gross 89,160 87,046 Accumulated amortization (22,706 ) (20,206 ) Intangible assets, net $ 66,454 $ 66,840 During the three months ended April 30, 2016 and 2015 , the Company incurred and expensed a total of $2.1 million and $1.7 million , respectively, in software development costs primarily related to the post-implementation and operation stages of its proprietary software. Amortization expense for the three months ended April 30, 2016 and 2015 was $2.5 million and $1.4 million , respectively. There were no changes to the goodwill carrying value during the three months ended April 30, 2016 and 2015 . |
Commitment and contingencies
Commitment and contingencies | 3 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | The Company’s principal commitments and contingencies consist of a processing services agreement with a vendor, and obligations for office space, data storage facilities, equipment and certain maintenance agreements under long-term, non-cancelable operating leases. These commitments as of January 31, 2016 are disclosed in the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended January 31, 2016, and did not change materially during the three months ended April 30, 2016 . Lease expense for office space for the three months ended April 30, 2016 and 2015 was $593,000 and $464,000 , respectively. Expense for other lease agreements for the three months ended April 30, 2016 and 2015 was $60,000 and $60,000 , respectively. |
Indebtedness
Indebtedness | 3 Months Ended |
Apr. 30, 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 April 30, 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 ranges 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 pays a commitment fee ranging from 0.20% to 0.30% on the daily amount of the unused commitments under the Credit Agreement payable in arrears at the end of each fiscal quarter. The Company's material subsidiaries are 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 are 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 April 30, 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 | 3 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | The Company follows FASB Accounting Standards Codification 740-270, Income Taxes - Interim Reporting , for the computation and presentation of its interim period tax provision. Accordingly, management estimated the effective annual tax rate and applied this rate to the year-to-date pre-tax book income to determine the interim provision for income taxes. For the three months ended April 30, 2016 , the Company recorded a provision for income taxes of $4.5 million . The resulting effective tax rate was 36.0% , compared with an effective tax rate of 36.8% for the three months ended April 30, 2015 . For the three months ended April 30, 2016 and 2015 , discrete tax items were not material. The decrease in the effective tax rate from the same period last year is primarily due to recognition of a benefit for the federal research and development credit. In the same period last year, the federal research and development credit had expired and was renewed in the three months ended January 31, 2016 . 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. The Company recorded a benefit of $9.3 million during the three months ended April 30, 2016 for tax benefits related to stock option exercises that are expected to reduce cash taxes payable during the current fiscal year. Of this amount, $7.4 million was related to excess stock option benefits previously limited under FASB ASC 718-740-25-10, Compensation-Stock Compensation , during the year ended January 31, 2016 . As of April 30, 2016 and January 31, 2016 , the Company’s total gross unrecognized tax benefit was $448,000 and $393,000 , respectively. As a result of Accounting Standards Update No. 2013-11, certain unrecognized tax benefits have been netted against their related deferred tax assets; therefore, no unrecognized tax benefit has been recorded as of April 30, 2016 and January 31, 2016 . If recognized, $369,000 of the total gross unrecognized tax benefits would affect the Company's effective tax rate as of April 30, 2016 . 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. |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Apr. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock option activity under the Company's equity incentive plans is as follows: Outstanding stock options (in thousands, except for exercise prices and term) Number of Range of Weighted- Weighted- Aggregate Outstanding as of January 31, 2016 5,418 $0.10 - 33.47 $ 10.88 7.03 $ 63,965 Granted 842 $21.27 - 24.36 $ 23.97 Exercised (218 ) $0.10 - 22.45 $ 0.67 Forfeited (52 ) $3.50 - 28.69 $ 21.09 Outstanding as of April 30, 2016 5,990 $0.10 - 33.47 $ 13.01 7.38 $ 75,056 Vested and expected to vest as of April 30, 2016 5,753 $ 12.71 7.31 $ 73,737 Exercisable as of April 30, 2016 2,591 $ 4.65 5.50 $ 53,180 The aggregate intrinsic value in the table above represents the difference between the estimated fair value of common stock and the exercise price of outstanding, in-the-money stock options. The key input assumptions that were utilized in the valuation of the stock options granted during the periods presented: Three months ended April 30, 2016 2015 Expected dividend yield — % — % Expected stock price volatility 38.29% - 38.37% 40.29 % Risk-free interest rate 1.33% - 1.52% 1.47% - 1.64% Expected life of options 5.17 - 6.25 years 5.43 - 6.25 years The determination of the fair value of stock options on the date of grant using an option pricing model is affected by the Company's stock price as well as assumptions regarding a number of complex and subjective variables. Expected volatility is determined using weighted average volatility of publicly traded peer companies. The Company expects that it will begin using its own historical volatility in addition to the volatility of publicly traded peer companies, as its share price history grows over time. The risk-free interest rate is determined by using published zero coupon rates on treasury notes for each grant date given the expected term on the options. The dividend yield of zero is based on the fact that the Company expects to invest cash in operations. The Company uses the "simplified" method to estimate expected term as determined under Staff Accounting Bulletin No. 110 due to the lack of sufficient option exercise history as a public company. As of April 30, 2016 , the weighted-average vesting period of non-vested awards expected to vest is approximately 2.6 years ; the amount of compensation expense the Company expects to recognize for stock options vesting in future periods is approximately $15.6 million . |
Fair value
Fair value | 3 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value | 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 tables summarize the assets measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value: April 30, 2016 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,159 $ — $ — January 31, 2016 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,134 $ — $ — |
Summary of business and signi16
Summary of business and significant accounting policies (Policies) | 3 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation —The condensed consolidated financial statements include the accounts of HealthEquity, Inc. and its wholly owned subsidiaries, HEQ Insurance Services, Inc., and HealthEquity Advisors, LLC (collectively referred to as the "Company"). During the year ended January 31, 2015, the Company and an unrelated company formed a limited partnership for investment in and the management of early stage companies in the healthcare industry. The Company has a 22% ownership interest in such partnership accounted for using the equity method of accounting. The investment was approximately $281,000 as of April 30, 2016 and is included in other assets on the accompanying condensed consolidated balance sheet. 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. The investment was $500,000 as of April 30, 2016 and is included in other assets on the accompanying condensed consolidated balance sheet. All significant intercompany balances and transactions have been eliminated. |
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. This 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. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarifies the guidance in determining revenue recognition as principal versus agent. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , which provides guidance in accounting for immaterial performance obligations and shipping and handling. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients which provides clarification on assessing the collectability criterion , presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. The foregoing amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods.The Company has not yet selected a transition method and is evaluating the effect that these recent pronouncements will have on the consolidated financial statements. 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. This ASU 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 adopted this ASU with no impact on the accompanying condensed consolidated financial statements as no amounts had been drawn under the Credit Agreement (See Note 7). 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. Effective April 30, 2016 , the Company early adopted ASU No. 2015-17 on a prospective basis, which resulted in the reclassification of the Company's current deferred tax asset between both non-current deferred tax asset and non-current deferred tax liability on its consolidated balance sheet. No prior periods were retrospectively adjusted. 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. This 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. This ASU 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 2016-09, I mprovements to Employee Share-Based Payment Accounting , which amends ASC Topic 718, Compensation - Stock Compensation . This ASU simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the timing of adoption and the potential effect of this ASU on the consolidated financial statements. |
Net income per share attribut17
Net income per share attributable to common stockholders (Tables) | 3 Months Ended |
Apr. 30, 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: (in thousands, except per share data) Three months ended April 30, 2016 2015 Numerator (basic and diluted): Net income $ 8,073 $ 4,977 Denominator (basic): Weighted-average common shares outstanding 57,820 55,063 Denominator (diluted): Weighted-average common shares outstanding 57,820 55,063 Weighted-average dilutive effect of stock options 1,579 2,707 Diluted weighted-average common shares outstanding 59,399 57,770 Net income per share: Basic $ 0.14 $ 0.09 Diluted $ 0.14 $ 0.09 |
Cash, cash equivalents and ma18
Cash, cash equivalents and marketable securities (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | Cash, cash equivalents and marketable securities as of April 30, 2016 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 92,766 $ — $ — $ 92,766 Marketable securities: Mutual funds 40,378 104 (323 ) 40,159 Total cash, cash equivalents and marketable securities $ 133,144 $ 104 $ (323 ) $ 132,925 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 |
Investments Classified by Contractual Maturity Date | The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of April 30, 2016 : (in thousands) Cost basis Fair value One year or less $ 25,179 $ 25,159 Over one year and less than five years 15,199 15,000 Total $ 40,378 $ 40,159 |
Property and equipment (Tables)
Property and equipment (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consisted of the following as of April 30, 2016 and January 31, 2016 : (in thousands) April 30, 2016 January 31, 2016 Leasehold improvements $ 732 $ 700 Furniture and fixtures 1,632 1,592 Computer equipment 6,082 5,825 Property and equipment, gross 8,446 8,117 Accumulated depreciation (5,058 ) (4,611 ) Property and equipment, net $ 3,388 $ 3,506 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and associated accumulated amortization of intangible assets were as follows as of April 30, 2016 and January 31, 2016 : (in thousands) April 30, 2016 January 31, 2016 Amortized intangible assets: Capitalized software development costs $ 18,008 $ 16,104 Software 6,189 5,994 Acquired intangible member assets 64,963 64,948 Intangible assets, gross 89,160 87,046 Accumulated amortization (22,706 ) (20,206 ) Intangible assets, net $ 66,454 $ 66,840 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of share based compensation recognized | The following table shows a summary of stock-based compensation in the Company's condensed consolidated statements of operations and comprehensive income during the periods presented: Three months ended April 30, (in thousands) 2016 2015 Cost of revenue $ 375 $ 228 Sales and marketing 213 228 Technology and development 357 150 General and administrative 877 488 Total stock-based compensation expense $ 1,822 $ 1,094 |
Summary of stock option activity | Stock option activity under the Company's equity incentive plans is as follows: Outstanding stock options (in thousands, except for exercise prices and term) Number of Range of Weighted- Weighted- Aggregate Outstanding as of January 31, 2016 5,418 $0.10 - 33.47 $ 10.88 7.03 $ 63,965 Granted 842 $21.27 - 24.36 $ 23.97 Exercised (218 ) $0.10 - 22.45 $ 0.67 Forfeited (52 ) $3.50 - 28.69 $ 21.09 Outstanding as of April 30, 2016 5,990 $0.10 - 33.47 $ 13.01 7.38 $ 75,056 Vested and expected to vest as of April 30, 2016 5,753 $ 12.71 7.31 $ 73,737 Exercisable as of April 30, 2016 2,591 $ 4.65 5.50 $ 53,180 |
Summary of Assumptions | The key input assumptions that were utilized in the valuation of the stock options granted during the periods presented: Three months ended April 30, 2016 2015 Expected dividend yield — % — % Expected stock price volatility 38.29% - 38.37% 40.29 % Risk-free interest rate 1.33% - 1.52% 1.47% - 1.64% Expected life of options 5.17 - 6.25 years 5.43 - 6.25 years |
Fair value (Tables)
Fair value (Tables) | 3 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables summarize the assets measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value: April 30, 2016 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,159 $ — $ — January 31, 2016 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,134 $ — $ — |
Summary of business and signi23
Summary of business and significant accounting policies (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership percentage | 22.00% |
Equity method investments | $ 281 |
Cost Method Investment, Ownership Percentage | 2.00% |
Cost Method Investments | $ 500 |
Other expenses | |
Business Acquisition | |
Acquisition related expenses | $ 585 |
Net income per share (Details)
Net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Net income | $ 8,073 | $ 4,977 |
Basic (in shares) | 57,820 | 55,063 |
Weighted-average common shares outstanding (in shares) | 57,820 | 55,063 |
Weighted-average dilutive effect of stock options (in shares) | 1,579 | 2,707 |
Weighted-average common shares outstanding (in shares) | 59,399 | 57,770 |
Basic (in dollars per share) | $ 0.14 | $ 0.09 |
Diluted (in dollars per share) | $ 0.14 | $ 0.09 |
Net income per share (Anti-dilu
Net income per share (Anti-dilutive securities) (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,600 | 679 |
Cash, cash equivalents and ma26
Cash, cash equivalents and marketable securities (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents, cost basis | $ 92,766 | $ 83,641 | $ 74,861 | $ 111,005 |
Cash and cash equivalents, fair value | 92,766 | 83,641 | ||
Marketable securities, gross unrealized gains | 104 | 78 | ||
Marketable securities, gross unrealized losses | (323) | (236) | ||
Marketable securities, fair value | 40,159 | 40,134 | ||
Total cash, cash equivalents and marketable securities, cost basis | 133,144 | 123,933 | ||
Total cash, cash equivalents and marketable securities, fair value | 132,925 | 123,775 | ||
Mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Marketable securities, cost basis | 40,378 | 40,292 | ||
Marketable securities, gross unrealized gains | 104 | 78 | ||
Marketable securities, gross unrealized losses | (323) | (236) | ||
Marketable securities, fair value | $ 40,159 | $ 40,134 |
Cash, cash equivalents and ma27
Cash, cash equivalents and marketable securities (Contract Maturity) (Details) $ in Thousands | Apr. 30, 2016USD ($) |
Cost basis | |
One year or less | $ 25,179 |
Over one year and less than five years | 15,199 |
Total | 40,378 |
Fair value | |
One year or less | 25,159 |
Over one year and less than five years | 15,000 |
Total | $ 40,159 |
Property and equipment (Schedul
Property and equipment (Schedule of property and equipment) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,446 | $ 8,117 |
Accumulated depreciation | (5,058) | (4,611) |
Property and equipment, net | 3,388 | 3,506 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 732 | 700 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,632 | 1,592 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,082 | $ 5,825 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 447 | $ 324 |
Intangible assets and goodwil30
Intangible assets and goodwill (Narrative) (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Capitalized software development costs | $ 1,900,000 | $ 1,200,000 |
Software development costs incurred and expensed | 2,100,000 | 1,700,000 |
Amortization expense | 2,500,000 | 1,400,000 |
Change in goodwill | $ 0 | $ 0 |
Intangible assets and goodwil31
Intangible assets and goodwill (Schedule of finite-lived intangible assets) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 89,160 | $ 87,046 |
Accumulated amortization | (22,706) | (20,206) |
Intangible assets, net | 66,454 | 66,840 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 18,008 | 16,104 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 6,189 | 5,994 |
Acquired intangible member assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 64,963 | $ 64,948 |
Commitment and contingencies (D
Commitment and contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease expense for office space | $ 593 | $ 464 |
Expenses for other agreements | $ 60 | $ 60 |
Indebtedness (Details)
Indebtedness (Details) - Line of Credit - Secured Revolving Credit Facility | Sep. 30, 2015USD ($) | Apr. 30, 2016USD ($) |
Debt Instrument [Line Items] | ||
Secured revolving credit facility, aggregate principal | $ 100,000,000 | |
Facility term (in years) | 5 years | |
Amounts drawn under Credit Agreement | $ 0 | |
Credit facility, deferred finance costs, net | $ 317,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.20% | |
Minimum interest coverage ratio | 3 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.30% | |
Maximum leverage ratio | 3 | |
London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread | 1.50% | |
London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread | 2.00% | |
Customary Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread | 0.50% | |
Customary Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable rate borrowing spread | 1.00% |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision | $ 4,536 | $ 2,900 | |
Effective tax rate | 36.00% | 36.80% | |
Deferred tax assets attributable to stock option exercises | $ 9,300 | ||
Deferred tax assets attributable to excess stock option benefits | 7,400 | ||
Unrecognized tax benefits | 448 | $ 393 | |
Unrecognized tax benefits that would impact the effective tax rate | $ 369 |
Stock-based compensation (Stock
Stock-based compensation (Stock-based compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,822 | $ 1,094 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 375 | 228 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 213 | 228 |
Technology and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 357 | 150 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 877 | $ 488 |
Stock-based compensation (Sto36
Stock-based compensation (Stock option activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jan. 31, 2016 | |
Number of options | ||
Opening balance (shares) | 5,418 | |
Granted (shares) | 842 | |
Exercised (shares) | (218) | |
Forfeited (shares) | (52) | |
Ending balance (shares) | 5,990 | 5,418 |
Range of exercise prices (usd per share) | ||
Beginning balance, minimum (usd per share) | $ 0.10 | |
Beginning balance, maximum (usd per share) | 33.47 | |
Granted, minimum (usd per share) | 21.27 | |
Granted, maximum (usd per share) | 24.36 | |
Exercised, minimum (usd per share) | 0.10 | |
Exercised, maximum (usd per share) | 22.45 | |
Forfeited, minimum (usd per share) | 3.50 | |
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 | 33.47 |
Weighted- average exercise price (usd per share) | ||
Opening balance (usd per share) | 10.88 | |
Granted (usd per share) | 23.97 | |
Exercised (usd per share) | 0.67 | |
Forfeited (usd per share) | 21.09 | |
Ending balance (usd per share) | $ 13.01 | $ 10.88 |
Weighted- average contractual term (in years) | 7 years 4 months 18 days | 7 years 11 days |
Aggregate intrinsic value | $ 75,056 | $ 63,965 |
Vested and expected to vest, number of options (shares) | 5,753 | |
Vested and expected to vest, Weighted- average exercise price (usd per share) | $ 12.71 | |
Vested and expected to vest, Weighted- average contractual term (in years) | 7 years 3 months 23 days | |
Vested and expected to vest, Aggregate intrinsic value | $ 73,737 | |
Exercisable, number of options | 2,591 | |
Exercisable, Weighted average exercise price (usd per share) | $ 4.65 | |
Exercisable, Weighted average contractual term (in years) | 5 years 6 months | |
Aggregate intrinsic value | $ 53,180 |
Stock-based compensation (Assum
Stock-based compensation (Assumptions) (Details) | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield (percentage) | 0.00% | 0.00% |
Expected stock price volatility (percentage) | 40.29% | |
Expected stock price volatility, minimum (percentage) | 38.29% | |
Expected stock price volatility, maximum (percentage) | 38.37% | |
Risk-free interest rate, minimum (percentage) | 1.33% | 1.47% |
Risk-free interest rate, maximum (percentage) | 1.52% | 1.64% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options (in years) | 5 years 2 months 1 day | 5 years 5 months 5 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of options (in years) | 6 years 3 months | 6 years 3 months |
Stock-based compensation (Narra
Stock-based compensation (Narrative) (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2016USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-average vesting period of non-vested awards expected to vest | 2 years 7 months |
Unrecognized stock compensation expense to be recognized in future | $ 15.6 |
Fair value (Details)
Fair value (Details) - Mutual funds - Recurring - USD ($) $ in Thousands | Apr. 30, 2016 | Jan. 31, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities: | $ 40,159 | $ 40,134 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities: | $ 0 | $ 0 |