Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2017 | Nov. 30, 2017 | |
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 | Oct. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 60,672,608 |
Condensed consolidated balance
Condensed consolidated balance sheets (unaudited) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 184,367 | $ 139,954 |
Marketable securities, at fair value | 40,711 | 40,405 |
Total cash, cash equivalents and marketable securities | 225,078 | 180,359 |
Accounts receivable, net of allowance for doubtful accounts as of October 31, 2017 and January 31, 2017 were $100 and $75, respectively | 21,458 | 17,001 |
Inventories | 169 | 592 |
Other current assets | 6,106 | 2,867 |
Total current assets | 252,811 | 200,819 |
Property and equipment, net | 6,789 | 5,170 |
Intangible assets, net | 85,450 | 65,020 |
Goodwill | 4,651 | 4,651 |
Deferred tax asset | 4,656 | 1,615 |
Other assets | 1,760 | 1,861 |
Total assets | 356,117 | 279,136 |
Current liabilities | ||
Accounts payable | 3,295 | 3,221 |
Accrued compensation | 6,503 | 8,722 |
Accrued liabilities | 9,680 | 3,760 |
Total current liabilities | 19,478 | 15,703 |
Long-term liabilities | ||
Other long-term liabilities | 2,226 | 1,456 |
Deferred tax liability | 0 | 37 |
Total long-term liabilities | 2,226 | 1,493 |
Total liabilities | 21,704 | 17,196 |
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 October 31, 2017 and January 31, 2017, respectively | 0 | 0 |
Common stock, $0.0001 par value, 900,000 shares authorized, 60,652 and 59,538 shares issued and outstanding as of October 31, 2017 and January 31, 2017, respectively | 6 | 6 |
Additional paid-in capital | 255,245 | 232,114 |
Accumulated other comprehensive loss | (188) | (165) |
Accumulated earnings | 79,350 | 29,985 |
Total stockholders’ equity | 334,413 | 261,940 |
Total liabilities and stockholders’ equity | $ 356,117 | $ 279,136 |
Condensed consolidated balance3
Condensed consolidated balance sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 100 | $ 75 |
Preferred Stock, Par Value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common Stock, Par Value (usd per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized (in shares) | 900,000,000 | 900,000,000 |
Common Stock, Shares, Issued (in shares) | 60,652,000 | 59,538,000 |
Common Stock, Shares, Outstanding (in shares) | 60,652,000 | 59,538,000 |
Condensed consolidated statemen
Condensed consolidated statements of operations and comprehensive income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenue: | ||||
Service revenue | $ 22,962 | $ 18,781 | $ 68,258 | $ 56,610 |
Custodial revenue | 22,105 | 14,967 | 62,709 | 43,557 |
Interchange revenue | 11,722 | 9,610 | 38,122 | 31,389 |
Total revenue | 56,789 | 43,358 | 169,089 | 131,556 |
Cost of revenue: | ||||
Service costs | 17,251 | 12,675 | 47,824 | 34,471 |
Custodial costs | 2,784 | 2,461 | 8,370 | 7,211 |
Interchange costs | 3,027 | 2,331 | 9,625 | 7,748 |
Total cost of revenue | 23,062 | 17,467 | 65,819 | 49,430 |
Gross profit | 33,727 | 25,891 | 103,270 | 82,126 |
Operating expenses: | ||||
Sales and marketing | 5,892 | 4,391 | 15,707 | 12,764 |
Technology and development | 6,866 | 6,209 | 19,905 | 15,827 |
General and administrative | 6,252 | 5,166 | 18,354 | 15,290 |
Amortization of acquired intangible assets | 1,155 | 1,083 | 3,320 | 3,214 |
Total operating expenses | 20,165 | 16,849 | 57,286 | 47,095 |
Income from operations | 13,562 | 9,042 | 45,984 | 35,031 |
Other expense: | ||||
Other expense, net | (395) | (256) | (523) | (934) |
Total other expense | (395) | (256) | (523) | (934) |
Income before income taxes | 13,167 | 8,786 | 45,461 | 34,097 |
Income tax provision | 2,685 | 2,778 | 4,004 | 11,783 |
Net income | $ 10,482 | $ 6,008 | $ 41,457 | $ 22,314 |
Net income per share: | ||||
Basic (in usd per share) | $ 0.17 | $ 0.10 | $ 0.69 | $ 0.38 |
Diluted (in usd per share) | $ 0.17 | $ 0.10 | $ 0.67 | $ 0.37 |
Weighted-average number of shares used in computing net income per share: | ||||
Basic (in shares) | 60,562 | 58,938 | 60,160 | 58,338 |
Diluted (in shares) | 61,868 | 60,073 | 61,703 | 59,693 |
Comprehensive income: | ||||
Net income | $ 10,482 | $ 6,008 | $ 41,457 | $ 22,314 |
Other comprehensive gain (loss): | ||||
Unrealized gain (loss) on available-for-sale marketable securities, net of tax | 7 | (23) | (23) | (36) |
Comprehensive income | $ 10,489 | $ 5,985 | $ 41,434 | $ 22,278 |
Condensed consolidated stateme5
Condensed consolidated statements of cash flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 41,457 | $ 22,314 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,142 | 9,543 |
Amortization of deferred financing costs and other | 97 | 53 |
Deferred taxes | 5,093 | (1,880) |
Stock-based compensation | 10,468 | 6,399 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,482) | 244 |
Inventories | 423 | (324) |
Other assets | (3,027) | (3,955) |
Accounts payable | (425) | (973) |
Accrued compensation | (2,219) | (3,117) |
Accrued liabilities | 2,586 | 1,666 |
Other long-term liabilities | 770 | 1,059 |
Net cash provided by operating activities | 61,883 | 31,029 |
Cash flows from investing activities: | ||
Purchases of intangible member assets | (15,529) | 0 |
Acquisition of a business | (2,882) | 0 |
Purchases of marketable securities | (343) | (275) |
Purchase of property and equipment | (3,382) | (2,705) |
Purchase of software and capitalized software development costs | (7,654) | (6,799) |
Net cash used in investing activities | (29,790) | (9,779) |
Cash flows from financing activities: | ||
Proceeds from exercise of common stock options | 12,320 | 4,546 |
Tax benefit from exercise of common stock options | 0 | 15,909 |
Net cash provided by financing activities | 12,320 | 20,455 |
Increase in cash and cash equivalents | 44,413 | 41,705 |
Beginning cash and cash equivalents | 139,954 | 83,641 |
Ending cash and cash equivalents | 184,367 | 125,346 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable or accrued liabilities at period end | 238 | 569 |
Software | ||
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of intangible assets accrued at period end | 501 | 185 |
Member assets | ||
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of intangible assets accrued at period end | $ 3,429 | $ 0 |
Summary of business and signifi
Summary of business and significant accounting policies | 9 Months Ended |
Oct. 31, 2017 | |
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. 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. On July 24, 2017, HealthEquity, Inc. received designation by the U.S. Department of Treasury to act as both a passive and non-passive non-bank custodian, which allows HealthEquity, Inc. to hold custodial assets in trust for individual account holders and use discretion to direct investment of such assets held in trust. As a passive and non-passive non-bank custodian according to the Internal Revenue Code ("IRC") 1.408-2(e)(5)(ii)(B), the Company must maintain net worth (assets minus liabilities) greater than 2% of passive custodial funds held in trust at each year-end and 4% of the non-passive custodial funds held in trust at each year-end in order to take on additional custodial assets. Principles of consolidation —The condensed consolidated financial statements include the accounts of HealthEquity, Inc. and its wholly owned subsidiaries, HealthEquity Trust Company, HEQ Insurance Services, Inc., HealthEquity Advisors, LLC and HealthEquity Retirement Services, LLC (collectively referred to as, the "Company"). The Company has a 22% ownership interest in a limited partnership for investment in and the management of early stage companies in the healthcare industry, such partnership is accounted for using the equity method of accounting. The investment was approximately $206,000 as of October 31, 2017 and is included in other assets on the accompanying condensed consolidated balance sheet. The Company has a 2% ownership interest in a limited partnership that engages in the development of technology-based financial healthcare products. The Company determined there was no significant influence and therefore the investment was accounted for using the cost method of accounting. The investment was $500,000 as of October 31, 2017 and is included in other assets on the accompanying condensed consolidated balance sheet. Acquisitions of businesses are accounted for as business combinations, and accordingly, the results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. All significant intercompany balances and transactions have been eliminated. Basis of presentation —The accompanying condensed consolidated financial statements as of October 31, 2017 and for the three and nine months ended October 31, 2017 and 2016 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 annual 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, 2017 . The fiscal year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. 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 three and nine months ended October 31, 2017 the Company incurred expense of $398,000 and $481,000 , respectively, for acquisition-related activity. Recent adopted accounting pronouncements —In March 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting . This ASU requires excess tax benefits and tax deficiencies to be recognized in the statement of operations and comprehensive income, which were previously presented as a component of stockholders' equity, on a prospective basis. In addition, any excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable are to be recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. This ASU also requires cash flows related to excess tax benefits to be classified as an operating activity on the statement of cash flows. Finally, this ASU no longer allows tax benefits to be included in the assumed proceeds when applying the treasury stock method for computing diluted weighted-average common shares outstanding, which results in share-based awards having a more dilutive effect on net income per diluted share. The Company adopted this ASU during the three months ended April 30, 2017. As required by the standard, excess tax benefits recognized on stock-based compensation expense are reflected in our condensed consolidated statements of operations and comprehensive income as a component of the provision for income taxes rather than additional paid-in capital on a prospective basis. For the three and nine months ended October 31, 2017 , the Company recorded excess tax benefits in the amount of $2.1 million and $12.6 million , respectively, within our provision for income taxes in the condensed consolidated statements of operations and comprehensive income. In addition, any excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable are to be recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, which resulted in an increase of $8.1 million to our retained earnings as of February 1, 2017. For presentation requirements, the Company elected to prospectively apply the change in the presentation of excess tax benefits wherein excess tax benefits recognized on stock-based compensation expense are classified as operating activities on the condensed consolidated statements of cash flows for the nine months ended October 31, 2017. Prior period classification of cash flows related to excess tax benefits were not adjusted. Further, the Company elected to adopt the forfeiture provisions of this ASU, which requires the Company to account for forfeitures as they occur. The adoption of the forfeiture provisions had no material impact on the condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business, which provides a more robust framework to use in determining when a set of assets and activities is a business. This ASU is effective for fiscal years beginning December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The new guidance is required to be applied on a prospective basis. The Company adopted this ASU during the three months ended July 31, 2017. The adoption had no material impact on the Company's condensed consolidated financial statements. Recent issued accounting pronouncements —On May 28, 2014, the FASB issued ASU 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. Finally, in December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , Revenue from Contracts with Customers, which makes minor corrections or minor improvements to the Codification that are not expected to have a significant impact. In July 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from contracts with Customers (Topic 606), Leases (Topic 840), and (Leases (Topic 842), which clarifies the transition periods related to public and private business entities. The foregoing amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods. The adoption of this guidance is not expected to have a material impact on the Company's revenue. The Company expects to capitalize incremental contract acquisition costs, such as sales commissions included in sales and marketing on the consolidated statement of operations, and amortize these costs over the economic life of the contractual relationship with the member. The Company's current practice is to expense sales commissions when the member is added to the Company's platform. The Company expects the adoption to have a significant impact on its consolidated financial statements. The Company will use the cumulative effect transition method and does not plan to early adopt these pronouncements. 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 does not plan to early adopt and is currently evaluating 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 does not plan to early adopt and is currently evaluating the potential effect of this ASU on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which requires financial assets measured at amortized cost be presented at the net amount expected to be collected. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not plan to early adopt this ASU. The Company believes the adoption of this ASU will have an immaterial impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which provides guidance on the classification of certain cash receipts and cash payments. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not plan to early adopt this ASU. The Company believes the adoption of this ASU will have an immaterial impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory , which updates the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early 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 January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units' fair value. This ASU is effective for fiscal years beginning December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adoption; however, it does not believe this ASU will have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about changes to the terms or conditions of a share-based payment award. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The standard should be applied prospectively to an award modified on or after the adoption date. The Company does not expect the adoption of this ASU to have a significant impact on its condensed consolidated financial statements. |
Net income per share
Net income per share | 9 Months Ended |
Oct. 31, 2017 | |
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 October 31, Nine months ended October 31, 2017 2016 2017 2016 Numerator (basic and diluted): Net income $ 10,482 $ 6,008 $ 41,457 $ 22,314 Denominator (basic): Weighted-average common shares outstanding 60,562 58,938 60,160 58,338 Denominator (diluted): Weighted-average common shares outstanding 60,562 58,938 60,160 58,338 Weighted-average dilutive effect of stock options and restricted stock units 1,306 1,135 1,543 1,355 Diluted weighted-average common shares outstanding 61,868 60,073 61,703 59,693 Net income per share: Basic $ 0.17 $ 0.10 $ 0.69 $ 0.38 Diluted $ 0.17 $ 0.10 $ 0.67 $ 0.37 For the three months ended October 31, 2017 and 2016 , approximately 834,000 and 702,000 shares, respectively, attributable to stock options and restricted stock units were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. For the nine months ended October 31, 2017 and 2016 , approximately 729,000 and 1.9 million shares, respectively, attributable to stock options and restricted stock units 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 | 9 Months Ended |
Oct. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities as of October 31, 2017 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 184,367 $ — $ — $ 184,367 Marketable securities: Mutual funds 41,013 271 (573 ) 40,711 Total cash, cash equivalents and marketable securities $ 225,380 $ 271 $ (573 ) $ 225,078 Cash, cash equivalents and marketable securities as of January 31, 2017 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 139,954 $ — $ — $ 139,954 Marketable securities: Mutual funds 40,670 207 (472 ) 40,405 Total cash, cash equivalents and marketable securities $ 180,624 $ 207 $ (472 ) $ 180,359 The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of October 31, 2017 : (in thousands) Cost basis Fair value One year or less $ 25,573 $ 25,537 Over one year and less than five years 15,440 15,174 Total $ 41,013 $ 40,711 Unrealized losses from marketable securities are primarily attributable to change in interest rates. The Company does not believe any remaining unrealized losses represent other-than-temporary impairments based on the Company's evaluation of available evidence as of October 31, 2017 . As of October 31, 2017 , marketable securities with an unrealized loss position for more than twelve consecutive months were as follows: Less than one-year Greater than one-year (in thousands) Fair value Unrealized losses Fair value Unrealized losses Mutual funds $ 25,537 $ (366 ) $ 15,174 $ (207 ) |
Property and equipment
Property and equipment | 9 Months Ended |
Oct. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consisted of the following as of October 31, 2017 and January 31, 2017 : (in thousands) October 31, 2017 January 31, 2017 Leasehold improvements $ 1,449 $ 860 Furniture and fixtures 4,382 3,129 Computer equipment 8,947 7,194 Property and equipment, gross 14,778 11,183 Accumulated depreciation (7,989 ) (6,013 ) Property and equipment, net $ 6,789 $ 5,170 Depreciation expense for the three months ended October 31, 2017 and 2016 was $697,000 and $523,000 , respectively, and $2.0 million and $1.4 million for the nine months ended October 31, 2017 and 2016 , respectively. |
Intangible assets and goodwill
Intangible assets and goodwill | 9 Months Ended |
Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets and goodwill | During the three months ended July 31, 2017, the Company acquired the right to act as custodian of a portfolio of HSA Members for $6.4 million . The cost, including transaction costs, was allocated to acquired intangible member assets as of October 31, 2017 . 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. To increase its product offering, during the three months ended July 31, 2017, the Company acquired the assets of BenefitGuard LLC, pursuant to a definitive asset purchase agreement, for a purchase price of $2.9 million cash. BenefitGuard LLC is a 401(k) provider that offers 3(16) plan administrator and 3(21) named fiduciary services for 401(k) employer sponsors. The Company accounted for the acquisition of assets of BenefitGuard LLC as a purchase of a business under ASC 805. The preliminary purchase price allocation resulted in customer relationships, or other intangible assets, of $2.9 million . The Company has determined the other intangible assets to have a useful life of 10 years . The asset will be amortized using the straight-line amortization method, which has been determined appropriate to reflect the pattern over which the economic benefits will be realized. The financial impact of this acquisition, including pro forma financial results, was immaterial to the Company's consolidated statement of operations for the three and nine months ended October 31, 2017 . During the three months ended October 31, 2017 , the Company acquired the rights to be the sole administrator of a portfolio of HSA Members for $3.3 million . During the three months ended October 31, 2017 , the Company acquired the right to act as custodian of a portfolio of HSA Members for $9.3 million , of which $6.0 million cash had been paid as of October 31, 2017 . The cost, including transaction costs, was allocated to acquired intangible member assets as of October 31, 2017 . The Company has determined the acquired intangible member assets to have a useful life of 15 years . The assets will be amortized using the straight-line amortization method, which has been determined appropriate to reflect the pattern over which the economic benefits of existing member assets are realized. During the three months ended October 31, 2017 and 2016 , the Company capitalized software development costs of $2.1 million and $2.0 million , respectively, and $6.3 million and $5.7 million for the nine months ended October 31, 2017 and 2016 , respectively, related to significant enhancements and upgrades to its proprietary system. The gross carrying amount and associated accumulated amortization of intangible assets were as follows as of October 31, 2017 and January 31, 2017 : (in thousands) October 31, 2017 January 31, 2017 Amortized intangible assets: Capitalized software development costs $ 30,212 $ 23,925 Software 8,490 7,041 Other intangible assets 2,882 — Acquired intangible member assets 83,940 64,962 Intangible assets, gross 125,524 95,928 Accumulated amortization (40,074 ) (30,908 ) Intangible assets, net $ 85,450 $ 65,020 During the three months ended October 31, 2017 and 2016 , the Company incurred and expensed a total of $3.0 million and $2.6 million , respectively, and $8.9 million and $6.9 million for the nine months ended October 31, 2017 and 2016 , 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 October 31, 2017 and 2016 was $3.3 million and $2.9 million , respectively, and $9.2 million and $8.1 million for the nine months ended October 31, 2017 and 2016 , respectively. There were no changes to the goodwill carrying value during the three and nine months ended October 31, 2017 and 2016 . |
Commitment and contingencies
Commitment and contingencies | 9 Months Ended |
Oct. 31, 2017 | |
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, telephony services, data storage facilities, equipment and certain maintenance agreements under long-term, non-cancelable operating leases. These commitments as of January 31, 2017 are disclosed in the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended January 31, 2017 , and did not change materially during the three and nine months ended October 31, 2017 , except for the following: On May 31, 2017, the Company entered into an amendment to its lease agreement, dated May 15, 2015, by and between the Company and its landlord to expand its current office space. The term of the lease will commence on January 1, 2018 and will expire on March 31, 2027. 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 $513,000 , with annual increases ranging from 2.5% to 3.1% . Lease expense for office space for the three months ended October 31, 2017 and 2016 was $1.0 million and $1.1 million , respectively, and $3.1 million and $2.3 million for the nine months ended October 31, 2017 and 2016 , respectively. Expense for other lease agreements for the three months ended October 31, 2017 and 2016 was $115,000 and $93,000 , respectively, and $341,000 and $237,000 for the nine months ended October 31, 2017 and 2016 , respectively. |
Indebtedness
Indebtedness | 9 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | On September 30, 2015, the Company entered into a new credit facility (the "Credit Agreement"). The Credit Agreement provides for a secured revolving credit facility in the aggregate principal amount of $100.0 million for a term of five years . The proceeds of borrowings under the Credit Agreement may be used for general corporate purposes. No amounts have been drawn under the Credit Agreement as of October 31, 2017 . 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 October 31, 2017 . |
Income taxes
Income taxes | 9 Months Ended |
Oct. 31, 2017 | |
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 October 31, 2017 , the Company recorded an income tax provision of $2.7 million and for the nine months ended October 31, 2017 an income tax provision of $4.0 million . The resulting effective income tax rate was 20.4% and 8.8% for the three and nine months ended October 31, 2017 , compared with an effective income tax rate of 31.6% and 34.6% for the three and nine months ended October 31, 2016 . For the three and nine months ended October 31, 2017 , the net impact of discrete tax items caused a 16.4 and 27.3 percentage point decrease to the effective income tax rate primarily due to the excess tax benefit on stock-based compensation expense recognized in the provision for income taxes on the condensed consolidated statements of income, pursuant to the adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . For the three and nine months ended October 31, 2016 , the net impact of discrete tax items caused a 4.6% and 1.2% decrease to the effective tax rate primarily due to the recognition of research and development tax credits. The decrease in the effective income tax rate from the same period last year is primarily due to the excess tax benefit on stock-based compensation expense recognized in the provision for income taxes on the condensed consolidated statements of income during the three and nine months ended October 31, 2017 , pursuant to the adoption of ASU 2016-09. As of October 31, 2017 and January 31, 2017 , the Company’s total gross unrecognized tax benefit was $789,000 and $674,000 , respectively. As a result of ASU 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 October 31, 2017 and January 31, 2017 . If recognized, $670,000 of the total gross unrecognized tax benefits would affect the Company's effective income tax rate as of October 31, 2017 . The Company files income tax returns with U.S. federal and state taxing jurisdictions and is not currently under examination with any jurisdiction. The Company remains subject to examination by federal and various state taxing jurisdictions for tax years after 2003. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Oct. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | The following table shows a summary of stock-based compensation in the Company's condensed consolidated statements of operations and comprehensive income during the periods presented: Three months ended October 31, Nine months ended October 31, (in thousands) 2017 2016 2017 2016 Cost of revenue $ 720 $ 462 $ 1,903 $ 1,258 Sales and marketing 561 364 1,403 930 Technology and development 831 487 2,365 1,290 General and administrative 1,553 755 4,797 2,921 Total stock-based compensation expense $ 3,665 $ 2,068 $ 10,468 $ 6,399 Stock options The Company currently grants stock options under the 2014 Equity Incentive Plan (as amended and restated, 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. 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, 2017 4,716 $0.10 - 44.53 $ 18.36 7.60 $ 131,529 Granted 420 $41.28 - 51.44 $ 42.72 Exercised (1,105 ) $0.10 - 46.40 $ 11.23 Forfeited (145 ) $3.50 - 46.40 $ 32.64 Outstanding as of October 31, 2017 3,886 $0.10 - 51.44 $ 22.49 7.52 $ 107,808 Vested and expected to vest as of October 31, 2017 3,886 $ 22.49 7.52 $ 107,808 Exercisable as of October 31, 2017 1,168 $ 14.42 6.57 $ 41,797 The aggregate intrinsic value in the table above represents the difference between the estimated fair value of common stock and the exercise price of outstanding, in-the-money stock options. The key input assumptions that were utilized in the valuation of the stock options granted during the periods presented: Three months ended October 31, Nine months ended October 31, 2017 2016 2017 2016 Expected dividend yield — % — % — % — % Expected stock price volatility 37.79 % 38.15 % 37.79% - 38.01% 38.15% - 38.37% Risk-free interest rate 1.18 % 1.18% - 1.27% 1.18% - 2.07% 1.18% - 1.55% Expected life of options 4.5 years 4.50 - 6.25 years 4.50 - 6.25 years 4.50 - 6.25 years The determination of the fair value of stock options on the date of grant using an option pricing model is affected by the Company's stock price as well as assumptions regarding a number of complex and subjective variables. Expected volatility is determined using weighted average volatility of publicly traded peer companies. The Company expects that it will begin using its own historical volatility in addition to the volatility of publicly traded peer companies, as its share price history grows over time. The risk-free interest rate is determined by using published zero coupon rates on treasury notes for each grant date given the expected term on the options. The dividend yield of zero is based on the fact that the Company expects to invest cash in operations. The Company uses the "simplified" method to estimate expected term as determined under Staff Accounting Bulletin No. 110 due to the lack of sufficient option exercise history as a public company. As of October 31, 2017 , the weighted-average vesting period of non-vested awards expected to vest is approximately 1.9 years ; the amount of compensation expense the Company expects to recognize for stock options vesting in future periods is approximately $20.2 million . Restricted stock units The Company grants restricted stock units ("RSUs") to certain team members, officers, and directors under the 2014 Equity Incentive Plan. RSUs vest upon service-based criteria and performance-based criteria. Generally, service-based RSUs vest over a four -year period in equal annual installments commencing upon the first anniversary of the grant date. Performance-based RSUs ("PRSUs") vest upon the achievement of certain financial criteria and cliff vest on January 31, 2020. RSUs are valued based on the current value of the Company's closing stock price on the date of grant and stock-based compensation expense is recognized over the requisite service period. Stock-based compensation expense for PRSUs is recognized over the requisite service period based on the probable outcome of the achievement of the performance criteria. A summary of the RSU activity is as follows: (in thousands, except weight-average grant date fair value) RSUs and PRSUs Weighted-average grant date fair value Outstanding as of January 31, 2017 10 $ 26.93 Granted 435 43.78 Vested (9 ) 43.34 Forfeitures (10 ) 45.75 Outstanding as of October 31, 2017 426 $ 43.33 Stock-based compensation expense related to RSUs, including PRSUs, for the three and nine months ended October 31, 2017 was $1.4 million and $3.6 million , respectively. Total unrecorded stock-based compensation expense as of October 31, 2017 associated with RSUs was $15.0 million , which is expected to be recognized over a weighted-average period of 3.1 years . |
Fair value
Fair value | 9 Months Ended |
Oct. 31, 2017 | |
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; and • 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: October 31, 2017 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,711 $ — $ — January 31, 2017 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,405 $ — $ — The carrying value of financial instruments including cash and cash equivalents and certain non-trade receivables approximate fair values as of October 31, 2017 due to the short-term nature of these instruments. The Company has classified cash and cash equivalents as Level 1 and certain non-trade receivables as Level 2 in the fair value hierarchy. |
Summary of business and signi16
Summary of business and significant accounting policies (Policies) | 9 Months Ended |
Oct. 31, 2017 | |
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, HealthEquity Trust Company, HEQ Insurance Services, Inc., HealthEquity Advisors, LLC and HealthEquity Retirement Services, LLC (collectively referred to as, the "Company"). The Company has a 22% ownership interest in a limited partnership for investment in and the management of early stage companies in the healthcare industry, such partnership is accounted for using the equity method of accounting. The investment was approximately $206,000 as of October 31, 2017 and is included in other assets on the accompanying condensed consolidated balance sheet. The Company has a 2% ownership interest in a limited partnership that engages in the development of technology-based financial healthcare products. The Company determined there was no significant influence and therefore the investment was accounted for using the cost method of accounting. The investment was $500,000 as of October 31, 2017 and is included in other assets on the accompanying condensed consolidated balance sheet. Acquisitions of businesses are accounted for as business combinations, and accordingly, the results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. All significant intercompany balances and transactions have been eliminated. |
Basis of presentation | Basis of presentation —The accompanying condensed consolidated financial statements as of October 31, 2017 and for the three and nine months ended October 31, 2017 and 2016 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 annual 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, 2017 . The fiscal year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. |
Business combinations | 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. |
Recent accounting pronouncements | Recent adopted accounting pronouncements —In March 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting . This ASU requires excess tax benefits and tax deficiencies to be recognized in the statement of operations and comprehensive income, which were previously presented as a component of stockholders' equity, on a prospective basis. In addition, any excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable are to be recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. This ASU also requires cash flows related to excess tax benefits to be classified as an operating activity on the statement of cash flows. Finally, this ASU no longer allows tax benefits to be included in the assumed proceeds when applying the treasury stock method for computing diluted weighted-average common shares outstanding, which results in share-based awards having a more dilutive effect on net income per diluted share. The Company adopted this ASU during the three months ended April 30, 2017. As required by the standard, excess tax benefits recognized on stock-based compensation expense are reflected in our condensed consolidated statements of operations and comprehensive income as a component of the provision for income taxes rather than additional paid-in capital on a prospective basis. For the three and nine months ended October 31, 2017 , the Company recorded excess tax benefits in the amount of $2.1 million and $12.6 million , respectively, within our provision for income taxes in the condensed consolidated statements of operations and comprehensive income. In addition, any excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable are to be recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, which resulted in an increase of $8.1 million to our retained earnings as of February 1, 2017. For presentation requirements, the Company elected to prospectively apply the change in the presentation of excess tax benefits wherein excess tax benefits recognized on stock-based compensation expense are classified as operating activities on the condensed consolidated statements of cash flows for the nine months ended October 31, 2017. Prior period classification of cash flows related to excess tax benefits were not adjusted. Further, the Company elected to adopt the forfeiture provisions of this ASU, which requires the Company to account for forfeitures as they occur. The adoption of the forfeiture provisions had no material impact on the condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business, which provides a more robust framework to use in determining when a set of assets and activities is a business. This ASU is effective for fiscal years beginning December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The new guidance is required to be applied on a prospective basis. The Company adopted this ASU during the three months ended July 31, 2017. The adoption had no material impact on the Company's condensed consolidated financial statements. Recent issued accounting pronouncements —On May 28, 2014, the FASB issued ASU 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. Finally, in December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , Revenue from Contracts with Customers, which makes minor corrections or minor improvements to the Codification that are not expected to have a significant impact. In July 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from contracts with Customers (Topic 606), Leases (Topic 840), and (Leases (Topic 842), which clarifies the transition periods related to public and private business entities. The foregoing amendments are effective for annual reporting periods beginning after December 15, 2017 and for interim reporting periods within such annual periods. The adoption of this guidance is not expected to have a material impact on the Company's revenue. The Company expects to capitalize incremental contract acquisition costs, such as sales commissions included in sales and marketing on the consolidated statement of operations, and amortize these costs over the economic life of the contractual relationship with the member. The Company's current practice is to expense sales commissions when the member is added to the Company's platform. The Company expects the adoption to have a significant impact on its consolidated financial statements. The Company will use the cumulative effect transition method and does not plan to early adopt these pronouncements. 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 does not plan to early adopt and is currently evaluating 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 does not plan to early adopt and is currently evaluating the potential effect of this ASU on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which requires financial assets measured at amortized cost be presented at the net amount expected to be collected. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not plan to early adopt this ASU. The Company believes the adoption of this ASU will have an immaterial impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which provides guidance on the classification of certain cash receipts and cash payments. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not plan to early adopt this ASU. The Company believes the adoption of this ASU will have an immaterial impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory , which updates the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early 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 January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units' fair value. This ASU is effective for fiscal years beginning December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adoption; however, it does not believe this ASU will have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about changes to the terms or conditions of a share-based payment award. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The standard should be applied prospectively to an award modified on or after the adoption date. The Company does not expect the adoption of this ASU to have a significant impact on its condensed consolidated financial statements. |
Net income per share (Tables)
Net income per share (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
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 October 31, Nine months ended October 31, 2017 2016 2017 2016 Numerator (basic and diluted): Net income $ 10,482 $ 6,008 $ 41,457 $ 22,314 Denominator (basic): Weighted-average common shares outstanding 60,562 58,938 60,160 58,338 Denominator (diluted): Weighted-average common shares outstanding 60,562 58,938 60,160 58,338 Weighted-average dilutive effect of stock options and restricted stock units 1,306 1,135 1,543 1,355 Diluted weighted-average common shares outstanding 61,868 60,073 61,703 59,693 Net income per share: Basic $ 0.17 $ 0.10 $ 0.69 $ 0.38 Diluted $ 0.17 $ 0.10 $ 0.67 $ 0.37 |
Cash, cash equivalents and ma18
Cash, cash equivalents and marketable securities (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale securities | Cash, cash equivalents and marketable securities as of October 31, 2017 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 184,367 $ — $ — $ 184,367 Marketable securities: Mutual funds 41,013 271 (573 ) 40,711 Total cash, cash equivalents and marketable securities $ 225,380 $ 271 $ (573 ) $ 225,078 Cash, cash equivalents and marketable securities as of January 31, 2017 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 139,954 $ — $ — $ 139,954 Marketable securities: Mutual funds 40,670 207 (472 ) 40,405 Total cash, cash equivalents and marketable securities $ 180,624 $ 207 $ (472 ) $ 180,359 |
Investments classified by contractual maturity date | The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of October 31, 2017 : (in thousands) Cost basis Fair value One year or less $ 25,573 $ 25,537 Over one year and less than five years 15,440 15,174 Total $ 41,013 $ 40,711 |
Schedule of marketable securities with an unrealized loss position | As of October 31, 2017 , marketable securities with an unrealized loss position for more than twelve consecutive months were as follows: Less than one-year Greater than one-year (in thousands) Fair value Unrealized losses Fair value Unrealized losses Mutual funds $ 25,537 $ (366 ) $ 15,174 $ (207 ) |
Property and equipment (Tables)
Property and equipment (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consisted of the following as of October 31, 2017 and January 31, 2017 : (in thousands) October 31, 2017 January 31, 2017 Leasehold improvements $ 1,449 $ 860 Furniture and fixtures 4,382 3,129 Computer equipment 8,947 7,194 Property and equipment, gross 14,778 11,183 Accumulated depreciation (7,989 ) (6,013 ) Property and equipment, net $ 6,789 $ 5,170 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The gross carrying amount and associated accumulated amortization of intangible assets were as follows as of October 31, 2017 and January 31, 2017 : (in thousands) October 31, 2017 January 31, 2017 Amortized intangible assets: Capitalized software development costs $ 30,212 $ 23,925 Software 8,490 7,041 Other intangible assets 2,882 — Acquired intangible member assets 83,940 64,962 Intangible assets, gross 125,524 95,928 Accumulated amortization (40,074 ) (30,908 ) Intangible assets, net $ 85,450 $ 65,020 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
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 October 31, Nine months ended October 31, (in thousands) 2017 2016 2017 2016 Cost of revenue $ 720 $ 462 $ 1,903 $ 1,258 Sales and marketing 561 364 1,403 930 Technology and development 831 487 2,365 1,290 General and administrative 1,553 755 4,797 2,921 Total stock-based compensation expense $ 3,665 $ 2,068 $ 10,468 $ 6,399 |
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, 2017 4,716 $0.10 - 44.53 $ 18.36 7.60 $ 131,529 Granted 420 $41.28 - 51.44 $ 42.72 Exercised (1,105 ) $0.10 - 46.40 $ 11.23 Forfeited (145 ) $3.50 - 46.40 $ 32.64 Outstanding as of October 31, 2017 3,886 $0.10 - 51.44 $ 22.49 7.52 $ 107,808 Vested and expected to vest as of October 31, 2017 3,886 $ 22.49 7.52 $ 107,808 Exercisable as of October 31, 2017 1,168 $ 14.42 6.57 $ 41,797 |
Summary of assumptions | The key input assumptions that were utilized in the valuation of the stock options granted during the periods presented: Three months ended October 31, Nine months ended October 31, 2017 2016 2017 2016 Expected dividend yield — % — % — % — % Expected stock price volatility 37.79 % 38.15 % 37.79% - 38.01% 38.15% - 38.37% Risk-free interest rate 1.18 % 1.18% - 1.27% 1.18% - 2.07% 1.18% - 1.55% Expected life of options 4.5 years 4.50 - 6.25 years 4.50 - 6.25 years 4.50 - 6.25 years |
Summary of restricted stock unit activity | A summary of the RSU activity is as follows: (in thousands, except weight-average grant date fair value) RSUs and PRSUs Weighted-average grant date fair value Outstanding as of January 31, 2017 10 $ 26.93 Granted 435 43.78 Vested (9 ) 43.34 Forfeitures (10 ) 45.75 Outstanding as of October 31, 2017 426 $ 43.33 |
Fair value (Tables)
Fair value (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
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: October 31, 2017 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,711 $ — $ — January 31, 2017 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,405 $ — $ — |
Summary of business and signi23
Summary of business and significant accounting policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2017 | Jan. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Equity method investment, ownership percentage | 22.00% | 22.00% | |
Equity method investments | $ 206 | $ 206 | |
Cost method investment, ownership percentage | 2.00% | 2.00% | |
Cost method investments | $ 500 | $ 500 | |
Excess tax benefits related to stock-based compensation | 2,100 | 12,600 | |
ASU 2016-09 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment to retained earnings for adoption of ASU 2016-09 | $ 8,100 | ||
Other Expense | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Acquisition related expenses | $ 398 | $ 481 |
Net income per share (Details)
Net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Numerator (basic and diluted): | ||||
Net income | $ 10,482 | $ 6,008 | $ 41,457 | $ 22,314 |
Denominator (basic): | ||||
Weighted-average common shares outstanding (in shares) | 60,562 | 58,938 | 60,160 | 58,338 |
Denominator (diluted): | ||||
Weighted-average common shares outstanding (in shares) | 60,562 | 58,938 | 60,160 | 58,338 |
Weighted-average dilutive effect of stock options and restricted stock units (in shares) | 1,306 | 1,135 | 1,543 | 1,355 |
Diluted weighted-average common shares outstanding (in shares) | 61,868 | 60,073 | 61,703 | 59,693 |
Net income per share: | ||||
Basic (in usd per share) | $ 0.17 | $ 0.10 | $ 0.69 | $ 0.38 |
Diluted (in usd per share) | $ 0.17 | $ 0.10 | $ 0.67 | $ 0.37 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 834 | 702 | 729 | 1,900 |
Cash, cash equivalents and ma25
Cash, cash equivalents and marketable securities (Amortized Cost to Fair Value) (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents, cost basis | $ 184,367 | $ 139,954 | $ 125,346 | $ 83,641 |
Cash and cash equivalents, fair value | 184,367 | 139,954 | ||
Marketable securities: | ||||
Marketable securities, gross unrealized gains | 271 | 207 | ||
Marketable securities, gross unrealized losses | (573) | (472) | ||
Marketable securities, fair value | 40,711 | 40,405 | ||
Total cash, cash equivalents and marketable securities, cost basis | 225,380 | 180,624 | ||
Total cash, cash equivalents and marketable securities, fair value | 225,078 | 180,359 | ||
Mutual funds | ||||
Marketable securities: | ||||
Marketable securities, cost basis | 41,013 | 40,670 | ||
Marketable securities, gross unrealized gains | 271 | 207 | ||
Marketable securities, gross unrealized losses | (573) | (472) | ||
Marketable securities, fair value | $ 40,711 | $ 40,405 |
Cash, cash equivalents and ma26
Cash, cash equivalents and marketable securities (Contractual Maturity) (Details) $ in Thousands | Oct. 31, 2017USD ($) |
Cost basis | |
One year or less | $ 25,573 |
Over one year and less than five years | 15,440 |
Total | 41,013 |
Fair value | |
One year or less | 25,537 |
Over one year and less than five years | 15,174 |
Total | $ 40,711 |
Cash, cash equivalents and ma27
Cash, cash equivalents and marketable securities (Unrealized Losses) (Details) $ in Thousands | Oct. 31, 2017USD ($) |
Less than one-year | |
Fair value | $ 25,537 |
Unrealized losses | (366) |
Greater than one-year | |
Fair value | 15,174 |
Unrealized losses | $ (207) |
Property and equipment (Schedul
Property and equipment (Schedule of property and equipment) (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,778 | $ 11,183 |
Accumulated depreciation | (7,989) | (6,013) |
Property and equipment, net | 6,789 | 5,170 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,449 | 860 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,382 | 3,129 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,947 | $ 7,194 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 697 | $ 523 | $ 2,000 | $ 1,400 |
Intangible assets and goodwil30
Intangible assets and goodwill (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Jul. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of a business | $ 3,300,000 | $ 2,882,000 | $ 0 | ||
Capitalized software development costs | 2,100,000 | $ 2,000,000 | 6,300,000 | 5,700,000 | |
Software development costs incurred and expensed | 3,000,000 | 2,600,000 | 8,900,000 | 6,900,000 | |
Amortization expense | 3,300,000 | 2,900,000 | 9,200,000 | 8,100,000 | |
Change in goodwill | $ 0 | $ 0 | 0 | $ 0 | |
Member assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 15 years | ||||
HSA portfolio | Member assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of a business | $ 6,000,000 | $ 6,400,000 | |||
Consideration transferred | $ 9,300,000 | ||||
Definitive asset purchase agreement with BenefitGuard LLC | Other intangible assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of a business | $ 2,900,000 | ||||
Useful life | 10 years | ||||
Other intangible assets acquired | $ 2,900,000 |
Intangible assets and goodwil31
Intangible assets and goodwill (Schedule of finite-lived intangible assets) (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 125,524 | $ 95,928 |
Accumulated amortization | (40,074) | (30,908) |
Intangible assets, net | 85,450 | 65,020 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 30,212 | 23,925 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 8,490 | 7,041 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 2,882 | 0 |
Acquired intangible member assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 83,940 | $ 64,962 |
Commitment and contingencies (D
Commitment and contingencies (Details) - USD ($) $ in Thousands | May 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | |||||
Initial annual lease payments | $ 513 | ||||
Operating Leased Assets [Line Items] | |||||
Lease expense for office space | $ 1,000 | $ 1,100 | $ 3,100 | $ 2,300 | |
Expenses for other lease agreements | $ 115 | $ 93 | $ 341 | $ 237 | |
Minimum | |||||
Operating Leased Assets [Line Items] | |||||
Annual lease increase | 2.50% | ||||
Maximum | |||||
Operating Leased Assets [Line Items] | |||||
Annual lease increase | 3.10% |
Indebtedness (Details)
Indebtedness (Details) - Line of Credit - Secured Revolving Credit Facility | Sep. 30, 2015USD ($) | Oct. 31, 2017USD ($) |
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 | |
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 | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 2,685 | $ 2,778 | $ 4,004 | $ 11,783 | |
Effective tax rate | 20.40% | 31.60% | 8.80% | 34.60% | |
Decrease in effective tax rate from excess tax benefit on stock-based compensation expense | 16.40% | 27.30% | |||
Decrease in effective tax rate, primarily due to research and development tax credits | 4.60% | 1.20% | |||
Unrecognized tax benefits | $ 789 | $ 789 | $ 674 | ||
Unrecognized tax benefits that would impact the effective tax rate | $ 670 | $ 670 |
Stock-based compensation (Stock
Stock-based compensation (Stock-based compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 3,665 | $ 2,068 | $ 10,468 | $ 6,399 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 720 | 462 | 1,903 | 1,258 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 561 | 364 | 1,403 | 930 |
Technology and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 831 | 487 | 2,365 | 1,290 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 1,553 | $ 755 | $ 4,797 | $ 2,921 |
Stock-based compensation (Narra
Stock-based compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock compensation expense to be recognized in future | $ 20,200 | $ 20,200 | ||
Stock-based compensation expense | 3,665 | $ 2,068 | $ 10,468 | $ 6,399 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Forfeiture period | 90 days | |||
Weighted-average vesting period of non-vested awards expected to vest | 1 year 11 months | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average vesting period of non-vested awards expected to vest | 3 years 1 month | |||
Award vesting period | 4 years | |||
Stock-based compensation expense | 1,400 | $ 3,600 | ||
Unrecognized stock-based compensation expense related to restricted stock units to be recognized in future | $ 15,000 | $ 15,000 |
Stock-based compensation (Sto37
Stock-based compensation (Stock option activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2017 | |
Number of options (shares) | ||
Opening balance (shares) | 4,716 | |
Granted (shares) | 420 | |
Exercised (shares) | (1,105) | |
Forfeited (shares) | (145) | |
Ending balance (shares) | 3,886 | 4,716 |
Vested and expected to vest, number of options (shares) | 3,886 | |
Exercisable, number of options (shares) | 1,168 | |
Range of exercise prices (usd per share) | ||
Beginning balance, minimum (usd per share) | $ 0.10 | |
Beginning balance, maximum (usd per share) | 44.53 | |
Granted, minimum (usd per share) | 41.28 | |
Granted, maximum (usd per share) | 51.44 | |
Exercised, minimum (usd per share) | 0.10 | |
Exercised, maximum (usd per share) | 46.40 | |
Forfeited, minimum (usd per share) | 3.50 | |
Forfeited, maximum (usd per share) | 46.40 | |
Ending balance, minimum (usd per share) | 0.10 | $ 0.10 |
Ending balance, maximum (usd per share) | 51.44 | 44.53 |
Weighted- average exercise price (usd per share) | ||
Opening balance (usd per share) | 18.36 | |
Granted (usd per share) | 42.72 | |
Exercised (usd per share) | 11.23 | |
Forfeited (usd per share) | 32.64 | |
Ending balance (usd per share) | 22.49 | $ 18.36 |
Vested and expected to vest, Weighted- average exercise price (usd per share) | 22.49 | |
Exercisable, Weighted average exercise price (usd per share) | $ 14.42 | |
Weighted- average contractual term (in years) | 7 years 6 months 6 days | 7 years 7 months 6 days |
Vested and expected to vest, Weighted- average contractual term (in years) | 7 years 6 months 6 days | |
Exercisable, Weighted average contractual term (in years) | 6 years 6 months 24 days | |
Aggregate intrinsic value | $ 107,808 | $ 131,529 |
Vested and expected to vest, Aggregate intrinsic value | 107,808 | |
Exercisable, Aggregate intrinsic value | $ 41,797 |
Stock-based compensation (Assum
Stock-based compensation (Assumptions) (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected stock price volatility | 37.79% | 38.15% | ||
Expected stock price volatility, minimum | 37.79% | 38.15% | ||
Expected stock price volatility, maximum | 38.01% | 38.37% | ||
Risk-free interest rate | 1.18% | |||
Risk-free interest rate, minimum | 1.18% | 1.18% | 1.18% | |
Risk-free interest rate, maximum | 1.27% | 2.07% | 1.55% | |
Expected life of options | 4 years 6 months | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life of options | 4 years 6 months | 4 years 6 months 1 day | 4 years 6 months 1 day | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life of options | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Stock-based compensation (Restr
Stock-based compensation (Restricted stock unity activity) (Details) - Restricted Stock Units shares in Thousands | 9 Months Ended |
Oct. 31, 2017$ / sharesshares | |
RSUs and PRSUs | |
Unvested, beginning balance (shares) | shares | 10 |
Granted (shares) | shares | 435 |
Vested (shares) | shares | (9) |
Forfeitures (shares) | shares | (10) |
Unvested, ending balance (shares) | shares | 426 |
Weighted-average grant date fair value | |
Unvested, beginning balance (usd per share) | $ / shares | $ 26.93 |
Granted (usd per share) | $ / shares | 43.78 |
Vested (usd per share) | $ / shares | 43.34 |
Forfeitures (usd per share) | $ / shares | 45.75 |
Unvested, ending balance (usd per share) | $ / shares | $ 43.33 |
Fair value (Details)
Fair value (Details) - Recurring - Mutual funds - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities: | $ 40,711 | $ 40,405 |
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 |