Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2018 | Feb. 28, 2018 | Jul. 31, 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-K | ||
Document Period End Date | Jan. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 60,952,042 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 199,472 | $ 139,954 |
Marketable securities, at fair value | 40,797 | 40,405 |
Total cash, cash equivalents and marketable securities | 240,269 | 180,359 |
Accounts receivable, net of allowance for doubtful accounts of $208 and $75 as of January 31, 2018 and 2017, respectively | 21,602 | 17,001 |
Inventories | 215 | 592 |
Other current assets | 3,310 | 2,867 |
Total current assets | 265,396 | 200,819 |
Property and equipment, net | 7,836 | 5,170 |
Intangible assets, net | 83,635 | 65,020 |
Goodwill | 4,651 | 4,651 |
Deferred tax asset | 5,461 | 1,615 |
Other assets | 2,180 | 1,861 |
Total assets | 369,159 | 279,136 |
Current liabilities | ||
Accounts payable | 2,420 | 3,221 |
Accrued compensation | 12,549 | 8,722 |
Accrued liabilities | 5,521 | 3,760 |
Total current liabilities | 20,490 | 15,703 |
Long-term liabilities | ||
Other long-term liabilities | 2,395 | 1,456 |
Deferred tax liability | 0 | 37 |
Total long-term liabilities | 2,395 | 1,493 |
Total liabilities | 22,885 | 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 January 31, 2018 and 2017 | 0 | 0 |
Common stock, $0.0001 par value, 900,000 shares authorized, 60,825 and 59,538 shares issued and outstanding as of January 31, 2018 and 2017, respectively | 6 | 6 |
Additional paid-in capital | 261,237 | 232,114 |
Accumulated other comprehensive loss, net | (269) | (165) |
Accumulated earnings | 85,300 | 29,985 |
Total stockholders’ equity | 346,274 | 261,940 |
Total liabilities and stockholders’ equity | $ 369,159 | $ 279,136 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 208 | $ 75 |
Preferred stock par value (dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value per share (dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (shares) | 60,825,000 | 59,538,000 |
Common stock, shares outstanding (shares) | 60,825,000 | 59,538,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Revenue | |||
Service revenue | $ 91,619 | $ 77,254 | $ 61,608 |
Custodial revenue | 87,160 | 59,593 | 37,755 |
Interchange revenue | 50,746 | 41,523 | 27,423 |
Total revenue | 229,525 | 178,370 | 126,786 |
Cost of revenue | |||
Service costs | 70,426 | 51,868 | 39,418 |
Custodial costs | 11,400 | 9,767 | 6,522 |
Interchange costs | 12,783 | 10,380 | 8,248 |
Total cost of revenue | 94,609 | 72,015 | 54,188 |
Gross profit | 134,916 | 106,355 | 72,598 |
Operating expenses | |||
Sales and marketing | 23,139 | 18,320 | 13,302 |
Technology and development | 27,385 | 22,375 | 16,832 |
General and administrative | 25,111 | 20,151 | 14,113 |
Amortization of acquired intangible assets | 4,863 | 4,297 | 2,208 |
Total operating expenses | 80,498 | 65,143 | 46,455 |
Income from operations | 54,418 | 41,212 | 26,143 |
Other expense | |||
Other expense, net | (2,229) | (1,092) | (589) |
Total other expense | (2,229) | (1,092) | (589) |
Income before income taxes | 52,189 | 40,120 | 25,554 |
Income tax provision | 4,827 | 13,744 | 8,941 |
Net income | $ 47,362 | $ 26,376 | $ 16,613 |
Net income per share: | |||
Basic (dollars per share) | $ 0.79 | $ 0.45 | $ 0.29 |
Diluted (dollars per share) | $ 0.77 | $ 0.44 | $ 0.28 |
Weighted-average number of shares used in computing net income per share: | |||
Basic (shares) | 60,304 | 58,615 | 56,719 |
Diluted (shares) | 61,854 | 59,894 | 58,863 |
Comprehensive income: | |||
Net income | $ 47,362 | $ 26,376 | $ 16,613 |
Other comprehensive loss: | |||
Unrealized loss on available-for-sale marketable securities, net of tax | (59) | (67) | (98) |
Comprehensive income | $ 47,303 | $ 26,309 | $ 16,515 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated compre- hensive loss | Accumulated earnings (deficit) |
Opening balance (shares) at Jan. 31, 2015 | 54,802 | ||||
Opening balance at Jan. 31, 2015 | $ 144,095 | $ 5 | $ 157,094 | $ 0 | $ (13,004) |
Stockholders’ equity | |||||
Exercise of common stock (shares) | 1,951 | 1,951 | |||
Exercise of 1,951 options at $0.98 per share | $ 1,915 | $ 1 | 1,914 | ||
Issuance of common stock (shares) | 973 | ||||
Issuance of common stock | 23,492 | 23,492 | |||
Stock-based compensation | 5,883 | 5,883 | |||
Tax benefit on stock options exercised | 11,557 | 11,557 | |||
Other comprehensive loss, net of tax | (98) | (98) | |||
Net income | 16,613 | 16,613 | |||
Ending balance (shares) at Jan. 31, 2016 | 57,726 | ||||
Ending balance at Jan. 31, 2016 | 203,457 | $ 6 | 199,940 | (98) | 3,609 |
Stockholders’ equity | |||||
Issuance of common stock (shares) | 1,812 | ||||
Issuance of common stock | 7,142 | 7,142 | |||
Stock-based compensation | 8,398 | 8,398 | |||
Tax benefit on stock options exercised | 16,634 | 16,634 | |||
Other comprehensive loss, net of tax | (67) | (67) | |||
Net income | 26,376 | 26,376 | |||
Ending balance (shares) at Jan. 31, 2017 | 59,538 | ||||
Ending balance at Jan. 31, 2017 | 261,940 | $ 6 | 232,114 | (165) | 29,985 |
Stockholders’ equity | |||||
Cumulative effect from adoption of accounting standard update | Accounting Standards Update 2016-09 | 8,157 | 249 | 7,908 | ||
Cumulative effect from adoption of accounting standard update | Accounting Standards Update 2018-02 | $ 0 | (45) | 45 | ||
Exercise of common stock (shares) | 1,272 | ||||
Issuance of common stock (shares) | 1,287 | ||||
Issuance of common stock | $ 14,564 | 14,564 | |||
Stock-based compensation | 14,310 | 14,310 | |||
Other comprehensive loss, net of tax | (59) | (59) | |||
Net income | 47,362 | 47,362 | |||
Ending balance (shares) at Jan. 31, 2018 | 60,825 | ||||
Ending balance at Jan. 31, 2018 | $ 346,274 | $ 6 | $ 261,237 | $ (269) | $ 85,300 |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Number of shares exercised (shares) | 1,272 | 1,951 |
Options, exercise price (dollars per share) | $ 11.45 | $ 0.98 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 47,362 | $ 26,376 | $ 16,613 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,952 | 13,186 | 8,601 |
Deferred taxes | 4,306 | (2,891) | (2,178) |
Stock-based compensation | 14,310 | 8,398 | 5,883 |
Bad debt expense | 133 | 35 | 24 |
Amortization of deferred financing costs and loss on other investments | 87 | 68 | 23 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (4,734) | (2,728) | (5,174) |
Inventories | 377 | 28 | 5 |
Other assets | (760) | (1,343) | (107) |
Accounts payable | (581) | 567 | 1,011 |
Accrued compensation | 3,827 | 946 | 2,475 |
Accrued liabilities | 484 | 1,729 | (383) |
Other long-term liabilities | 939 | 1,220 | (252) |
Net cash provided by operating activities | 81,702 | 45,591 | 26,541 |
Cash flows from investing activities: | |||
Purchase of marketable securities | (483) | (379) | (40,291) |
Purchase of property and equipment | (5,458) | (3,645) | (2,376) |
Purchase of software and capitalized software development costs | (10,380) | (9,030) | (6,896) |
Acquisition of intangible member assets | (17,545) | 0 | (40,489) |
Acquisition of a business | (2,882) | 0 | 0 |
Purchases of other investments | 0 | 0 | (500) |
Net cash used in investing activities | (36,748) | (13,054) | (90,552) |
Cash flows from financing activities: | |||
Proceeds from follow-on offering, net of payments for offering costs | 0 | 0 | 23,492 |
Proceeds from exercise of common stock options | 14,564 | 7,142 | 1,915 |
Tax benefit from exercise of common stock options | 0 | 16,634 | 11,557 |
Deferred financing costs paid | 0 | 0 | (317) |
Net cash provided by financing activities | 14,564 | 23,776 | 36,647 |
Increase (decrease) in cash and cash equivalents | 59,518 | 56,313 | (27,364) |
Beginning cash and cash equivalents | 139,954 | 83,641 | 111,005 |
Ending cash and cash equivalents | 199,472 | 139,954 | 83,641 |
Supplemental cash flow data: | |||
Interest expense paid in cash | (203) | (213) | (51) |
Income taxes paid in cash, net of refunds received | 27 | 863 | 1,356 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Purchase price adjustment of acquired intangible members assets | 0 | 0 | 104 |
Purchases of property and equipment included in accounts payable or accrued liabilities at period end | 0 | 25 | 45 |
Customer relationships | |||
Supplemental disclosures of non-cash investing and financing activities: | |||
Purchases of intangible assets | 1,409 | 0 | 0 |
Computer Software, Intangible Asset | |||
Supplemental disclosures of non-cash investing and financing activities: | |||
Purchases of intangible assets | $ 3 | $ 330 | $ 127 |
Summary of business and signifi
Summary of business and significant accounting policies | 12 Months Ended |
Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of business and significant accounting policies | Summary of business and significant accounting policies HealthEquity, Inc. was incorporated in the state of Delaware on September 18, 2002, and was organized to offer a full range of innovative solutions for managing health care accounts (Health Savings Accounts ("HSAs"), Health Reimbursement Arrangements ("HRAs"), and Flexible Spending Accounts ("FSAs")) for health plans, insurance companies, and third-party administrators. In February 2006, HealthEquity, Inc. received designation by the U.S. Department of Treasury to act as a passive non-bank custodian, which allows HealthEquity, Inc. to hold custodial assets 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 for individual account holders and use discretion to direct investment of such assets held. As a passive and non-passive non-bank custodian according to Treasury Regulations section 1.408-2(e)(5)(ii)(B), the Company must maintain net worth (assets minus liabilities) greater than 2% of passive custodial funds held at each calendar year-end and 4% of the non-passive custodial funds held at each calendar year-end in order to take on additional custodial assets. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the consolidated financial statements, except for the new accounting pronouncements, which were adopted during the year ended January 31, 2018 as described below. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. Principles of consolidation —The consolidated financial statements include the accounts of HealthEquity, Inc. and its wholly owned subsidiaries, HealthEquity Trust Company, HEQ Insurance Services, Inc., HealthEquity Advisors, LLC and HealthEquity Retirement Services, LLC (collectively referred to as the "Company"). During the year ended January 31, 2015 , the Company and an unrelated company formed a limited partnership for investment in and the management of early stage companies in the healthcare industry. The Company has a 22% ownership interest in such partnership that is accounted for using the equity method of accounting. The investment was approximately $206,000 as of January 31, 2018 and is included in other assets on the accompanying consolidated balance sheets. During the year ended January 31, 2016 , the Company purchased an approximate 2% ownership interest in a limited partnership that engages in the development of technology-based financial healthcare products. The Company determined there was no significant influence and therefore the investment was accounted for using the cost method of accounting. Under the cost method of accounting, the fair value of an investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The investment was $500,000 as of January 31, 2018 and is included in other assets on the accompanying consolidated balance sheet. During the year ended January 31, 2017 , the Company formed HealthEquity Trust Company, a Wyoming corporation and non-depository trust company, to act as the master custodian of all investment assets held in HSAs administered by the Company. During the year ended January 31, 2018 , the Company formed HealthEquity Retirement Services, LLC, a Delaware limited liability company, to acquire and own the assets of BenefitGuard LLC and provide ERISA plan fiduciary services. All significant intercompany balances and transactions have been eliminated. Segments —The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. Cash, cash equivalents —The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents were held in institutions in the U.S. and include deposits in a money market account that was unrestricted as to withdrawal or use. Marketable securities —Marketable securities consist primarily of mutual funds invested in corporate bonds, U.S. government agency securities, U.S. treasury bills, commercial paper, certificates of deposit, municipal notes, and bonds with original maturities beyond three months at the time of purchase. Marketable securities are classified as available-for-sale, held-to-maturity, or trading at the date of purchase. As of January 31, 2018 , all marketable securities have been classified as available-for-sale. The Company may sell these securities at any time for use in current operations or for other purposes even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including securities with maturities beyond twelve months, as current assets in the accompanying consolidated balance sheets. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income, net of the related tax effect. The Company evaluates its marketable securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. The Company considers impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely it will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of operations and comprehensive income. Accounts receivable —Accounts receivable represent monies due to the Company for monthly service revenue, custodial revenue and interchange revenue. As of January 31, 2018 , accounts receivable consisted of $7.9 million of service revenue, $9.0 million of custodial revenue, and $4.7 million of interchange revenue. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivable amounts. In evaluating the Company’s ability to collect outstanding receivable balances, the Company considers various factors including the age of the balance, the creditworthiness of the customer, which is assessed based on ongoing credit evaluations and payment history, and the customer’s current financial condition. As of January 31, 2018 and 2017 , the Company had allowance for doubtful accounts of $208,000 and $75,000 , respectively. Inventories —Inventories consist of new member and participant supplies and are recorded at the lower of cost or market using an average cost basis. Other assets —Other assets consist primarily of prepaid expenditures, income tax receivables, and various other assets. Amounts expected to be recouped or recognized over a period of twelve months or less have been classified as current in the accompanying consolidated balance sheets. Property and equipment —Property and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of individual assets. The useful life for leasehold improvements is the shorter of the estimated useful life or the term of the lease ranging from 3 - 5 years . The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Maintenance and repairs are expensed when incurred, and improvements that extend the economic useful life of an asset are capitalized. Gains and losses on the disposal of property and equipment are reflected in operating expenses. Capitalized software development costs —We account for the costs of computer software developed or obtained for internal use in accordance with Accounting Standards Codification (“ASC”) 350-40, “Internal-Use Software.” Costs incurred during operation and post-implementation stages are charged to expense. Costs incurred that are directly attributable to developing or obtaining software for internal use incurred in the application development stage are capitalized. Management’s judgment is required in determining the point when various projects enter the stages at which costs may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. See Note 5—Intangible Assets and Goodwill for additional information. Intangible assets, net —Intangible assets are carried at cost and amortized, typically, on a straight-line basis over their estimated useful lives, which is 3 - 5 years for capitalized software development costs and acquired technology rights, 10 years for 401(k) customer relationships, or other intangible assets, and 15 years for certain acquired HSA intangible member assets. The acquired intangible member assets are the result of various acquisitions of HSA portfolios. A significant portion of the purchase price from each acquisition has been allocated to the acquired HSA assets, which consists of the contractual rights to administer the activities related to the individual health savings accounts acquired. The Company analyzed the historical attrition and depletion rates of member accounts and determined that an average useful life of 15 years and the use of a straight-line amortization method are appropriate to reflect the pattern over which the economic benefits of existing member assets are realized. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There have been no impairment charges recorded in any of the periods presented in the accompanying consolidated financial statements. See Note 5—Intangible Assets and Goodwill for additional information. Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment annually on January 31 or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company’s impairment tests are based on a single operating segment and reporting unit structure. The goodwill impairment test involves a two-step process. The first step involves comparing the Company's market capitalization to the carrying value of the reporting unit, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step of the test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company’s annual goodwill impairment test resulted in no impairment charges in any of the periods presented in the accompanying consolidated financial statements. Self insurance —The Company is self-insured for medical insurance up to certain annual stop-loss limits. The Company establishes a liability as of the balance sheet date for claims, both reported and incurred but not reported, using currently available information as well as historical claims experience, and as determined by an independent third party. Other long-term liabilities —The Company recognizes rental expense for its office lease on a straight-line basis over the lease term. Other long-term liabilities includes deferred rent, which represents the difference between actual operating lease payments due and straight-line rent expense. The excess is recorded as a deferred credit in the early periods of the lease, when cash payments are generally lower than straight-line rent expense, and is reduced in the later periods of the lease when payments begin to exceed the straight-line expense. Follow-on offering —On May 11, 2015, the Company closed its follow-on public offering and sold 972,500 shares of common stock at a public offering price of $25.90 per share, less the underwriters' discount. Certain selling stockholders sold 3,455,000 shares of common stock in the offering, including 380,000 shares of common stock which were issued upon the exercise of outstanding options. The Company received net proceeds of approximately $23.5 million after deducting underwriting discounts and commissions of approximately $1.0 million and other offering expenses payable by the Company of approximately $688,000 . The Company did not receive any proceeds from the sale of shares by the selling stockholders other than $222,000 representing the exercise price of the options that were exercised in connection with the offering. Capital structure —On July 14, 2014, the Company's board of directors approved an amended and restated certificate of incorporation, pursuant to which the total number of shares of all classes of capital stock that the Company is authorized to issue is 1,000,000,000 shares, including 900,000,000 shares of common stock and 100,000,000 shares of preferred stock, par value $0.0001 per share. The amended and restated certificate of incorporation was filed with the Secretary of State of the State of Delaware and became effective on August 5, 2014 in connection with the completion of the initial public offering. Revenue recognition —The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been provided, the price of services is fixed or determinable, and collection is reasonably assured. The Company earns revenue primarily from service revenue, custodial revenue, interchange revenue. The Company earns service revenue from the fees paid by health plan partners, employer partners or individual members for administration services provided in connection with the tax-advantaged HSAs, HRAs and FSAs the Company administers. These fees are generally based on a tiered structure fixed for the duration of the contract agreement with health plan or employer partners, which is typically three to five years . The fees are paid on a monthly basis and revenue is recognized monthly as services are rendered under the Company’s written service agreements. In addition, the Company earns service revenue from fees paid by employer partners and plan participants in connection with plan administrator and named fiduciary services for 401(k) employer sponsors. The fees are paid on a quarterly basis and revenue is recognized in the month in which it is earned. The Company earns custodial revenue from HSA custodial assets on behalf of its customers. As a non-bank custodian, the Company deposits HSA cash with various custodial financial institutions having contract terms from three to five years and either a fixed or variable interest rate. These deposits are eligible for FDIC insurance for each individual HSA. The Company also invests HSA cash in an annuity contract with a insurance company partner. HSA investment balances are deposited with the custodial investment partner from whom the Company receives an administrative and recordkeeping fee. The Company recognizes this revenue in the month in which it is earned. The Company earns interchange revenue from card transactions when members are paying their healthcare claims using a card issued by the Company. The Company recognizes this revenue in the month in which it is earned. Amounts collected in excess of revenue recognized for the period are recorded as deferred revenue and reported as accrued liabilities and other long-term liabilities on the consolidated balance sheet. Cost of revenue —The Company incurs cost of revenue related to servicing member accounts, managing customer and partner relationships, and processing reimbursement claims. Expenditures include personnel-related costs, depreciation, amortization, stock-based compensation, common expense allocations, new member and participant supplies and other operating costs of the Company’s related member account servicing departments. Other components of the Company’s cost of revenue sold include interest retained by members on custodial assets held and interchange costs incurred in connection with processing card transactions initiated by members. Stock-based compensation —For stock options granted to team members, the Company recognizes compensation expense for all stock-based awards based on the grant date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to non-team members is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the non-employee. For awards with performance conditions, we evaluate the probability of achieving the performance criteria and of the number of shares that are expected to vest, and compensation expense is then adjusted to reflect the number of shares expected to vest and the requisite service period. For awards with performance conditions, compensation expense is recognized using the graded-vesting attribution method in accordance with the provisions of FASB ASC Topic 718, Compensation—Stock Compensation ("Topic 718") . Upon the exercise of a stock option, common shares are issued from authorized, but not outstanding, common stock. Stock-based compensation expense related to restricted stock units is recognized based on the current value of the Company's closing stock price on the date of grant less the present value of future expected dividends discounted at the risk-free interest rate. Expense for restricted stock units is recognized on a straight-line basis over the requisite service period. Income tax provision —The Company accounts for income taxes and the related accounts under the liability method as set forth in the authoritative guidance for accounting for income taxes. Under this method, current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, for net operating losses, and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for when it is more likely than not that some or all of the deferred tax assets may not be realized in future years. After weighing both the positive and negative evidence, the Company believes that it is more likely than not that all deferred tax assets will be realized as of January 31, 2018 . The Company uses the tax law ordering approach of intraperiod allocation in determining when excess tax benefits have been realized for provisions of the tax law that identify the sequence in which those amounts are utilized for tax purposes.The Company has also elected to exclude the indirect tax effects of share-based compensation deductions in computing the income tax provision recorded within the Consolidated Statement of Operations and Comprehensive Income. Also, we use the portfolio approach in releasing income tax effects from accumulated other comprehensive income. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in a tax return using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities, based on the technical merits of the position. For tax positions that are more likely than not to be sustained upon audit, the second step is to measure the tax benefit in the financial statements as the largest benefit that has a greater than 50% likelihood of being sustained upon settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as a component of other expense in the Consolidated Statements of Operations and Comprehensive Income. Significant judgment is required to evaluate uncertain tax positions. Changes in facts and circumstances could have a material impact on the Company’s effective tax rate and results of operations. Comprehensive income —Comprehensive income is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources, including unrealized gains and losses on marketable securities. Asset acquisitions —During the years ended January 31, 2018 , the Company acquired the rights to be the custodian of two HSA portfolios and rights to act as sole administrator of one portfolio. During the year ended January 31, 2016 , the Company acquired the rights to be the custodian of two HSA portfolios. The purchased group of assets for the transactions did not include workforce or any processes and therefore did not constitute a business. Accordingly, the acquisitions were accounted for under the asset acquisition method of accounting in accordance with ASC 805-50, Business Combinations—Related Issues. Under the asset acquisition method of accounting, the Company is required to fair value the assets transferred. The cost of the assets acquired is allocated to the individual assets acquired based on their relative fair values and does not give rise to goodwill. The purchase price was allocated to acquired intangible member assets. Furthermore, transaction costs that are incurred in conjunction with an asset acquisition are allocated to the acquired intangible member assets. Business combinations —Acquisition-related expenses incurred in conjunction with the acquisition of a business as defined by ASC 805-10 are recognized in earnings in the period in which they are incurred and are included in other expense, net on the consolidated statement of operations. During the years ended January 31, 2018 , 2017 and 2016 , the Company incurred an expense of $2.2 million , $631,000 , and $471,000 , respectively, for acquisition-related activity. There were no such business combinations during the years ended January 31, 2017 and 2016 . Concentration of market risk —The Company derives a substantial portion of its revenue from providing services for healthcare accounts. A significant downturn in this market or changes in state and/or federal laws impacting the preferential tax treatment of healthcare accounts could have a material adverse effect on the Company’s results of operations. For the years ended January 31, 2018 , 2017 and 2016 , no one customer accounted for greater than 10% of revenue or accounts receivable. Concentration of credit risk —Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash. The Company maintains its cash and cash equivalents in bank and other depository accounts, which, at times, may exceed federally insured limits. The Company’s cash and cash equivalents held in banks as of January 31, 2018 was $199.5 million , of which $750,000 was covered by federal depository insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. The Company’s accounts receivable balance as of January 31, 2018 was $21.6 million . The Company has not experienced any significant write-offs to accounts receivable and believes that it is not exposed to significant credit risk with respect to accounts receivable. Interest rate risk —The Company has entered into depository agreements with financial institutions for its custodial cash deposits. The contracted interest rates were negotiated at the time the depository agreements were executed. A significant reduction in prevailing interest rates may make it difficult for the Company to continue to place custodial deposits at the current contracted rates. Use of estimates —The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made estimates for the allowance for doubtful accounts, capitalized software development costs, evaluating goodwill and long-lived assets for impairment, useful lives of property and equipment and intangible assets, accrued compensation, accrued liabilities, grant date fair value of stock options and income taxes. Actual results could differ from those estimates. Recent adopted accounting pronouncements —In February 2018, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which gives companies the option to reclassify between accumulated other comprehensive income ("AOCI") and retained earnings the income tax rate differential that has become stranded in AOCI as a result of the enactment of the Tax Cuts and Jobs Act and the revaluation of certain deferred tax assets and liabilities at the new federal income tax rate of 21%. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company has elected to early adopt this ASU in the fourth quarter of fiscal year 2018. As a result of adopting this standard, the reclassification of the income tax effects of this tax reform resulted in an increase to retained earnings and a decrease to AOCI in the amount of $45,000 related to the decrease in the federal corporate tax rate. The Company's policy is to use the portfolio approach in releasing income tax effects from AOCI. In March 2016, the FASB issued 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 prospectively. 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 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 year ended January 31, 2018 , the Company recorded excess tax benefits of $14.1 million within our provision for income taxes in the 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 are classified as operating activities on the consolidated statements of cash flows for year ended January 31, 2018 . 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 allows the Company to account for forfeitures as they occur. The adoption of the forfeiture provisions had no material impact on the 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 after 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 consolidated financial statements. Recent issued accounting pronouncements —On May 28, 2014, the FASB issued ASU 2014-09 and related subsequent amendments, 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. The standard permits the use of either the retrospective or cumulative effect transition method. The adoption of the preceding standard 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 expenses in the consolidated statement of operations, and amortize these costs over the average economic life of an HSA 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 amendment |
Net income per share
Net income per share | 12 Months Ended |
Jan. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net income per share | 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) Year ended January 31, 2018 2017 2016 Numerator (basic and diluted): Net income $ 47,362 $ 26,376 $ 16,613 Denominator (basic): Weighted-average common shares outstanding 60,304 58,615 56,719 Denominator (diluted): Weighted-average common shares outstanding 60,304 58,615 56,719 Weighted-average dilutive effect of stock options and restricted stock units 1,550 1,279 2,144 Weighted-average common shares outstanding 61,854 59,894 58,863 Net income per share: Basic $ 0.79 $ 0.45 $ 0.29 Diluted $ 0.77 $ 0.44 $ 0.28 For the years ended January 31, 2018 , 2017 and 2016 , approximately 602,000 , 1.4 million , and 791,000 shares, respectively, attributable to outstanding 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 | 12 Months Ended |
Jan. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities Cash, cash equivalents and marketable securities as of January 31, 2018 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 199,472 $ — $ — $ 199,472 Marketable securities: Mutual funds 41,153 270 (626 ) 40,797 Total cash, cash equivalents and marketable securities $ 240,625 $ 270 $ (626 ) $ 240,269 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 January 31, 2018 : (in thousands) Cost basis Fair value One year or less $ 25,664 $ 25,590 Over one year and less than five years 15,489 15,207 Total $ 41,153 $ 40,797 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 January 31, 2018 . As of January 31, 2018 , 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 $ 25,590 $ (243 ) $ 15,207 $ (383 ) |
Property and equipment
Property and equipment | 12 Months Ended |
Jan. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment Property and equipment consisted of the following as of January 31, 2018 and 2017 : (in thousands) January 31, 2018 January 31, 2017 Leasehold improvements $ 2,292 $ 860 Furniture and fixtures 4,785 3,129 Computer equipment 8,174 7,194 Property and equipment, gross 15,251 11,183 Accumulated depreciation (7,415 ) (6,013 ) Property and equipment, net $ 7,836 $ 5,170 Depreciation expense for the years ended January 31, 2018 , 2017 and 2016 was $2.8 million , $2.0 million and $1.5 million , respectively. |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets and goodwill | Intangible assets and goodwill Asset acquisitions During the year ended January 31, 2018 , 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 January 31, 2018 . The Company has determined the acquired intangible member assets to have a useful life of 15 years. The assets are being 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 year ended January 31, 2018 , the Company acquired the rights to be the sole administrator of a portfolio of HSA Members for $3.3 million . During the year ended January 31, 2018 , the Company acquired the right to act as custodian of a portfolio of HSA Members for $9.3 million , of which $8.0 million cash had been paid as of January 31, 2018 . The remaining $1.3 million relates to a contingent payment that may be earned upon the achievement of certain targets. The cost, including transaction costs, was allocated to acquired intangible member assets. The Company has determined the acquired intangible member assets to have a useful life of 15 years. The assets are being 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 year ended January 31, 2016 , the Company acquired the rights to be custodian of the Bancorp and M&T HSA portfolios for $34.2 million and $6.2 million , respectively. The costs, including transaction costs, were allocated to acquired intangible member assets as of January 31, 2016 . The Company has determined the acquired intangible member assets to have a useful life of 15 years. The assets are being 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. Acquisition of a business To increase its product offering, during the year ended January 31, 2018 , 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 plan administrator and named fiduciary services for 401(k) employer sponsors. The Company accounted for the acquisition of assets of BenefitGuard LLC as an acquisition 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 year ended January 31, 2018 . Software development During the years ended January 31, 2018 , 2017 and 2016 , the Company capitalized software development costs of $8.1 million , $7.7 million and $5.6 million , respectively, related to significant enhancements and upgrades to its proprietary system. Note 5. Intangible assets and goodwill (continued) The gross carrying amount and associated accumulated amortization of intangible assets is as follows as of January 31, 2018 and January 31, 2017 : (in thousands) January 31, 2018 January 31, 2017 Amortized intangible assets: Capitalized software development costs $ 31,993 $ 23,925 Software 8,863 7,041 Other intangible assets 2,882 — Acquired intangible member assets 83,915 64,962 Intangible assets, gross 127,653 95,928 Accumulated amortization (44,018 ) (30,908 ) Intangible assets, net $ 83,635 $ 65,020 During the years ended January 31, 2018 , 2017 and 2016 , the Company expensed a total of $12.2 million , $10.0 million and $7.6 million , respectively, in software development costs primarily related to the post-implementation and operation stages of its proprietary software. Amortization expense for the years ended January 31, 2018 , 2017 and 2016 was $13.2 million , $11.2 million and $7.1 million , respectively. Estimated amortization expense for the years ending January 31 is as follows: Year ending January 31, (in thousands) 2019 $ 13,290 2020 10,821 2021 7,705 2022 6,011 2023 5,883 Thereafter 39,925 Total $ 83,635 All of the Company’s goodwill was generated from the acquisition of First Horizon MSaver, Inc. on August 11, 2011. There have been no changes to the goodwill carrying value during the years ended January 31, 2018 and 2017 . |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jan. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Property, colocation, equipment, and license agreements —The Company leases office space, data storage facilities, equipment and certain maintenance agreements under long-term, non-cancelable operating leases. Future minimum lease payments required under non-cancelable obligations as of January 31, 2018 are as follows: Year ending January 31, (in thousands) Office lease Other agreements Total 2019 $ 3,904 $ 2,312 $ 6,216 2020 3,848 2,069 5,917 2021 4,096 2,134 6,230 2022 4,198 1,460 5,658 2023 4,303 4 4,307 Thereafter 17,034 — 17,034 Total $ 37,383 $ 7,979 $ 45,362 Office lease obligations —On May 15, 2015, the Company entered into a lease agreement to expand its headquarters in Draper, Utah. The lease provided for the new landlord to construct a building at their cost. The lease commenced upon the substantial completion and delivery of the building to the Company on July 1, 2016 and has an initial term of 129 months thereafter, with an option for the Company to extend the lease for two additional five -year periods. The Company is responsible for payment of taxes and operating expenses for its portion of the building, in addition to an annual base rent in the initial amount of approximately $1.0 million , with 2.5% annual increases. In conjunction with the aforementioned lease, the Company entered into an amended and restated lease agreement for its existing office space at its headquarters in Draper, Utah. The lease commenced on July 1, 2015 and has an initial term of 129 months thereafter, with an option for the Company to extend the lease for two additional five -year periods. The Company is responsible for payment of taxes and operating expenses for its portion of the building, in addition to an annual base rent in the initial amount of approximately $1.6 million , with 2.5% annual increases. As a result of the foregoing transaction, the deferred rent balance of approximately $470,000 was reversed during the year ended January 31, 2016. On September 16, 2016, 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 commenced on July 1, 2016 and will expire on March 31, 2027. The Company is 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 $569,000 , with 2.5% annual increases. On May 31, 2017, the Company entered into an amendment to its lease agreement, dated May 15, 2015, to expand its current office space. The term of the lease commenced 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 years ended January 31, 2018 , 2017 and 2016 totaled $4.3 million , $3.3 million and $2.1 million , respectively. Expense for other agreements for the years ended January 31, 2018 , 2017 and 2016 totaled $460,000 , $307,000 and $249,000 , respectively. Data storage and equipment lease obligations —The data storage and equipment leases relate to our offsite data storage facility and office equipment leases. All of these leases expire during the year ended January 31, 2020. Telephony services —The telephony service agreement relates to our 24/7/365 member support center. The agreement expires in September 2019. Processing services agreement —During the year ended January 31, 2016, the Company amended its merchant processing services agreement with a vendor. The agreement expires December 31, 2020 and requires the Company to pay a dollar minimum processing fee based on the processing year of the agreement. The Company may terminate the agreement beginning January 1, 2020 by providing 180 days’ written notice. If the processing agreement is terminated prior to December 31, 2020, the Company is required to pay the vendor a termination fee, equal to 75% of the aggregate value of the minimum processing fees for the remaining years of the agreement, plus a portion of the account on-boarding incentive fee. For each of the years ended January 31, 2018 , 2017 and 2016 , the Company exceeded the minimum amounts required under the agreement. The Company has an agreement with an entity for access to its software. The agreement contains minimum required payments. The Company also has agreements with several entities for access to technology and software. The agreements are based on usage, and there are no minimum required monthly payments. Contingencies —In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification —In accordance with the Company’s amended and restated Certificate of Incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been no claims to date and the Company has a director and officer insurance policy that may enable it to recover a portion of any amounts paid for future claims. Litigation —The Company may from time to time be involved in legal proceedings arising from the normal course of business. There are no material pending or threatened legal proceedings as of January 31, 2018 and 2017 . |
Indebtedness
Indebtedness | 12 Months Ended |
Jan. 31, 2018 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness On September 30, 2015, the Company entered into a credit facility (the "Credit Agreement"). The Credit Agreement provides for a secured revolving credit facility in the aggregate principal amount of $100.0 million for a term of five years . The proceeds of borrowings under the Credit Agreement may be used for general corporate purposes. No amounts have been drawn under the Credit Agreement as of January 31, 2018 . Borrowings under the Credit Agreement bear interest equal to, at the Company's option, a) an adjusted LIBOR rate or b) a customary base rate, in each case with an applicable spread to be determined based on the Company's leverage ratio as of the most recent fiscal quarter. The applicable spread for borrowing under the Credit Agreement will range from 1.50% to 2.00% with respect to adjusted LIBOR rate borrowings and 0.50% to 1.00% with respect to customary base rate borrowings. Additionally, the Company 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. During the years ended January 31, 2018 and 2017 , the Company incurred $274,000 and $275,000 , respectively, of interest expense associated with the Credit Agreement. 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 January 31, 2018 . In connection with the Credit Agreement, the Company incurred $317,000 in financing costs, which are deferred and are being amortized using the straight-line method, which approximates the effective interest method, over the life of the agreement. |
Income taxes
Income taxes | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Income tax provision consisted of the following: Year ended January 31, (in thousands) 2018 2017 2016 Current: Federal $ 392 $ 14,848 $ 9,876 State 130 1,823 1,226 Total current tax provision $ 522 $ 16,671 $ 11,102 Deferred: Federal $ 4,068 $ (2,308 ) $ (1,772 ) State 237 (619 ) (389 ) Total deferred tax (benefit) provision $ 4,305 $ (2,927 ) $ (2,161 ) Total income tax provision $ 4,827 $ 13,744 $ 8,941 Total income tax provision differed from the amounts computed by applying the U.S. federal statutory income tax rate of 34% to income before income tax provision as a result of the following: Year ended January 31, (in thousands) 2018 2017 2016 Federal income tax provision at the statutory rate $ 17,744 $ 13,641 $ 8,688 State income tax provision, net of federal tax benefit 1,241 742 541 Non-deductible or non-taxable items 143 87 56 Excess tax benefits on stock-based compensation expense, net (14,136 ) — — Federal research and development credit (729 ) (907 ) (371 ) Deferred tax rate adjustment due to tax reform 458 — — Current statutory rate differential due to tax reform (308 ) — — Change in uncertain tax position reserves, net of indirect benefits 191 246 96 Other items, net 223 (65 ) (69 ) Total income tax provision $ 4,827 $ 13,744 $ 8,941 The Company's effective income tax rate for the years ended January 31, 2018 , 2017 and 2016 was 9.2% , 34.3% , and 35.0% , respectively. The difference between the effective income tax rate and the U.S. federal statutory income tax rate each period is impacted by a number of factors, including the relative mix of earnings among state jurisdictions, credits, excess tax benefits or shortfalls on stock-based compensation expense due to the adoption of ASU 2016-09, and other discrete items. The decrease in the effective tax rate for the year ended January 31, 2018 compared to the year ended January 31, 2017 was primarily the result of excess tax benefits on stock-based compensation expense. The decrease in the effective tax rate for the year ended January 31, 2017 compared to the year ended January 31, 2016 was primarily the result of an increase in research and development credits. The Tax Cuts and Jobs Act, which was enacted on December 22, 2017, includes a reduction of the statutory corporate income tax rate from a top rate of 35% to 21% effective January 1, 2018. The Company is subject to federal and state income taxes in the United States based on a calendar year which differs from its January fiscal year-end for financial reporting purposes. For purposes of reconciling the total income tax provision for the fiscal year, the Company applied a federal statutory rate of 34% for the entire fiscal year as this is the rate that applies for the tax year ending December 31, 2017 which comprises 11 months of the fiscal year. Because a 21% federal statutory rate applies for the one month ending January 31, 2018 , a reconciling item has been included in the tax rate reconciliation table above to adjust for the statutory rate reduction that applies to this one-month period. This resulted in a reduction to the income tax provision of $308,000 . Given the significance of the Tax Cuts and Jobs Act, the U.S. Securities and Exchange Commission (the "SEC") staff issued Staff Accounting Bulletin ("SAB") No. 118 (“SAB 118”), which allows registrants to record provisional amounts during a one-year “measurement period” from the date of enactment date of the Tax Cuts and Jobs Act. The measurement period is deemed to have ended earlier when the registrant has obtained, prepared, and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared, or analyzed. SAB 118 summarizes a three-step process to be applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) a reasonable estimate cannot yet be made and therefore taxes are reflected in accordance with law prior to the enactment of the Tax Cuts and Jobs Act. The Company remeasured certain deferred tax assets and liabilities as of December 31, 2017 based on rates at which they are expected to reverse in the future, which is generally the new corporate income tax rate of 21% as enacted by the Tax Cuts and Jobs Act. However, the Company's analysis is incomplete as we are still analyzing certain aspects of the Act and refining our calculations, including state conformity and the impact of state tax rates on deferred tax balances, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. Based on the best information available, the provisional amount recorded related to the remeasurement of the Company's deferred tax balance resulted in a decrease in net deferred tax assets of $ 458,000 , with a corresponding increase to the income tax provision during the year ending January 31, 2018 . The Company will continue to make and refine its calculations as additional analysis is completed. In addition, the Company's estimates may also be affected as it gains a more thorough understanding of the enacted tax law changes and as additional future guidance on the effects of the Tax Cuts and Jobs Act is made available. Other significant provisions of the Tax Cuts and Jobs Act are effective as of January 1, 2018, including, but not limited to: the limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income, changes in the deductibility of certain meals and entertainment business expenses, and changes in the deductibility of certain excessive employee remuneration. The Company has applied these provisions to its current income tax provision as it relates to its tax return period beginning January 1, 2018 using reasonable interpretations and available guidance. Further guidance or technical corrections may affect the Company's estimates and the application of these provisions on its income tax provision. Deferred tax assets and liabilities consisted of the following: (in thousands) January 31, 2018 January 31, 2017 Deferred tax assets: Accrued bonuses $ 489 $ 499 Other accrued liabilities 572 559 Deferred rent 520 364 Stock compensation 5,316 5,061 Net operating loss carryforward 666 84 Research and development credits 2,882 2,225 AMT credits 857 548 Other, net 286 449 Total gross deferred tax assets $ 11,588 $ 9,789 Deferred tax liabilities: Fixed assets: depreciation and gain/loss $ (1,170 ) $ (902 ) Intangibles: amortization (4,830 ) (7,252 ) Other, net (127 ) (57 ) Total gross deferred tax liability (6,127 ) (8,211 ) Net deferred tax asset $ 5,461 $ 1,578 Management considered whether it is more likely than not that some portion or all of the deferred tax assets would be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considered the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment and determined that based on the weight of all available evidence, it is more likely than not (a likelihood of more than 50%) that the Company will be able to realize its deferred tax assets. Therefore, no valuation allowance was required as of January 31, 2018 . As of January 31, 2018 , the Company had recorded gross federal and state net operating loss carryforwards of $2.6 million and $2.1 million , respectively, which begin to expire at various intervals between tax years ending December 31, 2025 and December 31, 2036 . As of January 31, 2018 , the Company also had federal and state research and development carryforwards of $2.6 million and $1.5 million , respectively, which expire beginning with the tax year ending December 31, 2019 and 2024, respectively, and federal and state alternative minimum tax credit carryforwards of $856,000 and $2,000 , respectively. The state AMT credits do not expire. As a result of the Tax Cuts and Jobs Act, the federal alternative minimum tax was repealed. A provision was enacted which allows the Company to utilize or refund 100% of the remaining AMT credits no later than its tax year beginning in 2021. The Company expects to utilize its AMT credits against income tax in future periods; as a result, the credits have remained classified as deferred tax assets as of January 31, 2018 . As of January 31, 2018 and 2017 , the gross unrecognized tax benefit was $889,000 and $674,000 , respectively. If recognized, $811,000 and $572,000 of the total unrecognized tax benefits would affect the Company's effective tax rate as of January 31, 2018 and 2017 , respectively. Total gross unrecognized tax benefits increased by $215,000 in the period from January 31, 2017 to January 31, 2018 . A tabular reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: (in thousands) January 31, 2018 January 31, 2017 Gross unrecognized tax benefits at beginning of year $ 674 $ 393 Gross amounts of increases and decreases: Increases as a result of tax positions taken during a prior period — — Decreases as a result of tax positions taken during a prior period — — Increases as a result of tax positions taken during the current period 215 281 Decreases as a result of tax positions taken during the current period — — Decreases resulting from the lapse of the applicable statute of limitations — — Gross unrecognized tax benefits at end of year $ 889 $ 674 Certain unrecognized tax benefits are required to be netted against their related deferred tax assets as a result of Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists . The resulting unrecognized tax benefit recorded within the Company's consolidated balance sheet excludes the following amounts that have been netted against the related deferred tax assets accordingly: (in thousands) January 31, 2018 January 31, 2017 Total gross unrecognized tax benefits $ 889 $ 674 Amounts netted against related deferred tax assets (889 ) (674 ) Unrecognized tax benefits recorded on the consolidated balance sheet $ — $ — The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits as a component of other expense in the statement of operations. During the years ended January 31, 2018 , 2017 , and 2016 , respectively, the Company recorded a decrease of $0 , $0 and $8,000 in interest and penalties related to unrecognized tax benefits. As of January 31, 2018 and 2017 , no accrued interest and penalties were recorded. 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 | 12 Months Ended |
Jan. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based compensation The following table shows a summary of stock-based compensation in the Company's consolidated statements of operations and comprehensive income during the years presented: Year ended January 31, (in thousands) 2018 2017 2016 Cost of revenue $ 2,594 $ 1,780 $ 1,088 Sales and marketing 2,030 914 903 Technology and development 3,318 1,903 1,014 General and administrative 6,368 3,801 2,878 Total stock-based compensation expense $ 14,310 $ 8,398 $ 5,883 Stock options The Company currently grants stock options under the 2014 Equity Incentive Plan (as amended and restated, the "Incentive Plan"), which provided for the issuance of stock options to the directors and team members of the Company to purchase up to an aggregate of 2.6 million shares of common stock. In addition, under the Incentive Plan, the number of shares of common stock reserved for issuance under the Incentive Plan automatically increases on February 1 of each year, beginning as of February 1, 2015 and continuing through and including February 1, 2024 , by 3% of the total number of shares of the Company’s capital stock outstanding on January 31 of the preceding fiscal year, or a lesser number of shares determined by the board of directors. As of January 31, 2018 , 1.8 million shares were available for grant under the Incentive Plan. Under the terms of the Incentive Plan, the Company has the ability to grant incentive and nonqualified stock options. Incentive stock options may be granted only to Company team members. Nonqualified stock options may be granted to Company team members, directors and consultants. Such options are to be exercisable at prices, as determined by the board of directors, which must be equal to no less than the fair value of the Company's common stock at the date of the grant. Stock options granted under the Incentive Plan generally expire 10 years from the date of issuance, or are forfeited 90 days after termination of employment. Shares of common stock underlying stock options that are forfeited or that expire are returned to the Incentive Plan. Valuation assumptions. The Company has adopted the provisions of Topic 718, which requires the measurement and recognition of compensation for all stock-based awards made to team members and directors, based on estimated fair values. Under Topic 718, the Company uses the Black-Scholes option pricing model as the method of valuation for stock-based awards. The determination of the fair value of stock-based awards on the date of grant is affected by the fair value of the stock as well as assumptions regarding a number of complex and subjective variables. The variables include, but are not limited to, 1) the expected life of the option, 2) the expected volatility of the fair value of the Company's common stock over the term of the award estimated by averaging the published volatilities of a relative peer group, 3) risk-free interest rate, and 4) expected dividends. The key input assumptions that were utilized in the valuation of the stock options granted during the years ended January 31, 2018 , 2017 and 2016 are as follows: Year ended January 31, 2018 2017 2016 Expected dividend yield — % — % — % Expected stock price volatility 37.79% - 38.01% 38.01% - 38.37% 38.29% - 40.29% Risk-free interest rate 1.18% - 2.07% 1.18% - 2.18% 1.47% - 1.80% Expected life of options 4.50 - 6.25 years 4.50 - 6.25 years 5.43 - 6.25 years Note 9. Stock-based compensation (continued) The determination of the fair value of stock options on the date of grant using the Black-Scholes option pricing model is affected by the Company's stock price as well as assumptions regarding a number of complex and subjective variables. Expected volatility is determined using weighted average volatility of publicly traded peer companies. The Company expects that it will begin using its own historical volatility in addition to the volatility of publicly traded peer companies, as its share price history grows over time. The risk-free interest rate is determined by using published zero coupon rates on treasury notes for each grant date given the expected term on the options. The dividend yield of zero is based on the fact that the Company expects to invest cash in operations. The Company uses the "simplified" method to estimate expected term as determined under Staff Accounting Bulletin No. 110 due to the lack of option exercise history as a public company. A summary of stock option activity is as follows: Outstanding stock options (in thousands, except for exercise prices and term) Number of Range of Weighted- Weighted- Aggregate Outstanding as of January 31, 2017 4,716 $0.10 - 44.53 $ 18.36 7.60 $ 131,529 Granted 420 $41.28 - 51.44 $ 42.72 Exercised (1,272 ) $0.10 - 46.40 $ 11.45 Forfeited (165 ) $3.50 - 46.40 $ 33.39 Outstanding as of January 31, 2018 3,699 $0.10 - 51.44 $ 22.83 7.26 $ 102,796 Vested and expected to vest as of January 31, 2018 3,699 $ 22.83 7.26 $ 102,796 Exercisable as of January 31, 2018 1,125 $ 16.57 6.49 $ 38,319 The aggregate intrinsic value in the tables above represents the difference between the estimated fair value of common stock and the exercise price of outstanding, in-the-money stock options. A summary of stock options granted and exercised is as follows: Year ended January 31, (in thousands, except weighted-average fair value) 2018 2017 2016 Stock options granted 420 1,399 1,093 Weighted-average fair value at date of grant $ 42.72 $ 28.85 $ 27.34 Total intrinsic value of stock options exercised $ 44,823 $ 50,094 $ 51,773 As of January 31, 2018 and 2017 , 1.1 million and 1.5 million of all outstanding options were exercisable, respectively. The options are valued at their estimated fair market value as of the date of the grant. As of January 31, 2018 , the weighted-average vesting period of non-vested stock-options expected to vest approximates 2.0 years ; the amount of compensation expense the Company expects to recognize for stock options vesting in future periods approximates $17.6 million . Performance options. During the year ended January 31, 2015 , the Company granted 1.5 million performance-based stock options, respectively, to certain key team members under the Incentive Plan, which vest upon the achievement of certain performance criteria. The performance-based stock options vest upon the attainment of the following performance criteria: (a) 10% of the stock options vest upon attainment of at least $34.5 million in Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") for the year ended January 31, 2016, (b) 20% of the stock options vest upon the attainment of an annual growth rate of Adjusted EBITDA per share of common stock of 30% for the year ended January 31, 2017, (c) 30% of the stock options vest upon the attainment of an annual growth rate of Adjusted EBITDA per share of common stock of 30% for the year ended January 31, 2018, and (d) 40% of the stock options vest upon the attainment of an annual growth rate of Adjusted EBITDA per share of common stock of 25% for the year ended January 31, 2019. During the year ended January 31, 2016 , the Note 9. Stock-based compensation (continued) Company achieved the $34.5 million Adjusted EBITDA performance criteria and as such, 10% of the performance-based stock options outstanding as of January 31, 2016 became vested. During the year ended January 31, 2017 , the Company achieved the annual growth rate of Adjusted EBITDA per share of common stock of 30% and as such 20% of the performance-based stock options outstanding as January 31, 2017 became vested. Subsequent to the year ended January 31, 2017 , the two remaining vesting criteria were amended to vest based upon the attainment of a compound annual growth rate of Adjusted EBITDA per share of common stock of 35% as compared to the year ended January 31, 2016 Adjusted EBTIDA target of $34.5 million , or $0.61 per common share. During the year ended January 31, 2018 , the Company achieved the third performance criteria and as such 30% of the performance-based stock options outstanding as of January 31, 2018 became vested. During the years ended January 31, 2018 , 2017 and 2016 , the Company recorded compensation expense of $1.4 million , $1.7 million and $2.5 million , respectively, related to the performance-based options based on the Company's probability assessment of attaining its Adjusted EBITDA targets, and Adjusted EBITDA per common share growth rates. 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. RSUs are valued based on the current value of the Company's closing stock price on the date of grant less the present value of future expected dividends discounted at the risk-free interest rate. Stock-based compensation expense related to RSUs, excluding PRSUs, for the years ended January 31, 2018 and 2017 was $3.3 million and $233,000 , respectively. Performance restricted stock units. In March 2017, the Company awarded 146,964 performance-based RSUs ("PRSUs") with an estimated grant date fair value of $6.1 million . Vesting of the PRSUs is dependent upon the achievement of certain financial criteria and cliff vest on January 31, 2020. The Company records stock-based compensation related to PRSUs when it is considered probable that the performance conditions will be met. The Company believes it is probably that the PRSUs will vest at least in part. The vesting of PRSUs will ultimately range from 0% to 150% of the number of shares underlying the PRSU grant based on the level of achievement of the performance goals. During the year ended January 31, 2018 , the Company recorded compensation expense of $1.8 million related to PRSUs. A summary of all restricted stock unit activity is as follows: (in thousands, except weight-average grant date fair value) Shares Weighted-average grant date fair value Unvested at January 31, 2017 10 $ 26.93 Granted 468 44.61 Vested (15 ) 36.74 Forfeitures (12 ) 46.41 Unvested at January 31, 2018 451 $ 44.10 Total unrecorded stock-based compensation expense as of January 31, 2018 associated with RSUs, including PRSUs, was $15.1 million , which is expected to be recognized over a weighted-average period of 2.9 years . |
Fair value
Fair value | 12 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value | Fair value Fair value measurements—Fair value measurements are made at a specific point in time, based on relevant market information. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1—quoted prices in active markets for identical assets or liabilities; • Level 2—inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; • Level 3—unobservable inputs based on the Company’s own assumptions. Level 1 instruments are valued based on publicly available daily net asset values. Level 1 instruments consist primarily of highly liquid mutual funds. The following tables summarizes the assets measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value: January 31, 2018 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,797 $ — $ — 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 January 31, 2018 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. |
Employee benefits
Employee benefits | 12 Months Ended |
Jan. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee benefits | Employee benefits The Company has established a 401(k) plan that qualifies as a deferred compensation arrangement under Section 401 of the IRS Code. All team members over the age of 21 are eligible to participate in the plan. The plan provides for Company matching of employee contributions up to 3.5% of eligible earnings. Employer contributions vest 25% each year of employment. 401(k) plan administrative expense was $25,000 , $15,000 and $16,000 for the years ended January 31, 2018 , 2017 and 2016 , respectively. Employer matching contribution expense was $1.4 million , $916,000 and $626,000 for the years ended January 31, 2018 , 2017 and 2016 , respectively. Beginning on January 1, 2017, the Company is self-insured for medical and dental benefits for all qualifying employees. The medical plan carries a stop-loss policy which will protect from individual claims during the plan year exceeding $110,000 . The Company records estimates of costs of claims incurred based on an analysis of historical data and independent estimates. The Company's liability for self-insured medical claims is included in accrued compensation in its consolidated balance sheet and was $1.7 million as of January 31, 2018 . |
Supplementary quarterly financi
Supplementary quarterly financial data (unaudited) | 12 Months Ended |
Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary quarterly financial data (unaudited) | Supplementary quarterly financial data (unaudited) Three months ended (in thousands, except for per share amounts) January 31, 2018 October 31, 2017 July 31, 2017 April 30, 2017 Total revenue $ 60,436 $ 56,789 $ 56,879 $ 55,421 Total cost of revenue 28,790 23,062 21,077 21,680 Gross profit 31,646 33,727 35,802 33,741 Total operating expenses 23,212 20,165 19,307 17,814 Total other expense (1,706 ) (395 ) (38 ) (90 ) Income tax provision (benefit) 823 2,685 (489 ) 1,808 Net income $ 5,905 $ 10,482 $ 16,946 $ 14,029 Net income per share: Basic (1) $ 0.10 $ 0.17 $ 0.28 $ 0.23 Diluted (1) $ 0.09 $ 0.17 $ 0.27 $ 0.23 Three months ended (in thousands, except for per share amounts) January 31, 2017 October 31, 2016 July 31, 2016 April 30, 2016 Total revenue $ 46,814 $ 43,358 $ 44,185 $ 44,013 Total cost of revenue 22,585 17,467 15,631 16,332 Gross profit 24,229 25,891 28,554 27,681 Total operating expenses 18,048 16,849 15,815 14,431 Total other expense (158 ) (256 ) (37 ) (641 ) Income tax provision 1,961 2,778 4,469 4,536 Net income $ 4,062 $ 6,008 $ 8,233 $ 8,073 Net income per share: Basic $ 0.07 $ 0.10 $ 0.14 $ 0.14 Diluted (1) $ 0.07 $ 0.10 $ 0.14 $ 0.14 (1) Net income per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding. |
Summary of business and signi20
Summary of business and significant accounting policies (Policies) | 12 Months Ended |
Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation —The consolidated financial statements include the accounts of HealthEquity, Inc. and its wholly owned subsidiaries, HealthEquity Trust Company, HEQ Insurance Services, Inc., HealthEquity Advisors, LLC and HealthEquity Retirement Services, LLC (collectively referred to as the "Company"). During the year ended January 31, 2015 , the Company and an unrelated company formed a limited partnership for investment in and the management of early stage companies in the healthcare industry. The Company has a 22% ownership interest in such partnership that is accounted for using the equity method of accounting. The investment was approximately $206,000 as of January 31, 2018 and is included in other assets on the accompanying consolidated balance sheets. During the year ended January 31, 2016 , the Company purchased an approximate 2% ownership interest in a limited partnership that engages in the development of technology-based financial healthcare products. The Company determined there was no significant influence and therefore the investment was accounted for using the cost method of accounting. Under the cost method of accounting, the fair value of an investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The investment was $500,000 as of January 31, 2018 and is included in other assets on the accompanying consolidated balance sheet. During the year ended January 31, 2017 , the Company formed HealthEquity Trust Company, a Wyoming corporation and non-depository trust company, to act as the master custodian of all investment assets held in HSAs administered by the Company. During the year ended January 31, 2018 , the Company formed HealthEquity Retirement Services, LLC, a Delaware limited liability company, to acquire and own the assets of BenefitGuard LLC and provide ERISA plan fiduciary services. All significant intercompany balances and transactions have been eliminated. |
Segments | Segments —The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents —The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents were held in institutions in the U.S. and include deposits in a money market account that was unrestricted as to withdrawal or use. |
Marketable securities | Marketable securities —Marketable securities consist primarily of mutual funds invested in corporate bonds, U.S. government agency securities, U.S. treasury bills, commercial paper, certificates of deposit, municipal notes, and bonds with original maturities beyond three months at the time of purchase. Marketable securities are classified as available-for-sale, held-to-maturity, or trading at the date of purchase. As of January 31, 2018 , all marketable securities have been classified as available-for-sale. The Company may sell these securities at any time for use in current operations or for other purposes even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including securities with maturities beyond twelve months, as current assets in the accompanying consolidated balance sheets. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income, net of the related tax effect. The Company evaluates its marketable securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. The Company considers impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely it will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of operations and comprehensive income. |
Accounts receivable | Accounts receivable —Accounts receivable represent monies due to the Company for monthly service revenue, custodial revenue and interchange revenue. As of January 31, 2018 , accounts receivable consisted of $7.9 million of service revenue, $9.0 million of custodial revenue, and $4.7 million of interchange revenue. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivable amounts. In evaluating the Company’s ability to collect outstanding receivable balances, the Company considers various factors including the age of the balance, the creditworthiness of the customer, which is assessed based on ongoing credit evaluations and payment history, and the customer’s current financial condition. |
Inventories | Inventories —Inventories consist of new member and participant supplies and are recorded at the lower of cost or market using an average cost basis. |
Other assets | Other assets —Other assets consist primarily of prepaid expenditures, income tax receivables, and various other assets. Amounts expected to be recouped or recognized over a period of twelve months or less have been classified as current in the accompanying consolidated balance sheets. |
Property and equipment | Property and equipment —Property and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of individual assets. The useful life for leasehold improvements is the shorter of the estimated useful life or the term of the lease ranging from 3 - 5 years . The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Maintenance and repairs are expensed when incurred, and improvements that extend the economic useful life of an asset are capitalized. Gains and losses on the disposal of property and equipment are reflected in operating expenses. |
Capitalized software development costs | Capitalized software development costs —We account for the costs of computer software developed or obtained for internal use in accordance with Accounting Standards Codification (“ASC”) 350-40, “Internal-Use Software.” Costs incurred during operation and post-implementation stages are charged to expense. Costs incurred that are directly attributable to developing or obtaining software for internal use incurred in the application development stage are capitalized. Management’s judgment is required in determining the point when various projects enter the stages at which costs may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. See Note 5—Intangible Assets and Goodwill for additional information. |
Intangible assets, net | Intangible assets, net —Intangible assets are carried at cost and amortized, typically, on a straight-line basis over their estimated useful lives, which is 3 - 5 years for capitalized software development costs and acquired technology rights, 10 years for 401(k) customer relationships, or other intangible assets, and 15 years for certain acquired HSA intangible member assets. The acquired intangible member assets are the result of various acquisitions of HSA portfolios. A significant portion of the purchase price from each acquisition has been allocated to the acquired HSA assets, which consists of the contractual rights to administer the activities related to the individual health savings accounts acquired. The Company analyzed the historical attrition and depletion rates of member accounts and determined that an average useful life of 15 years and the use of a straight-line amortization method are appropriate to reflect the pattern over which the economic benefits of existing member assets are realized. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. There have been no impairment charges recorded in any of the periods presented in the accompanying consolidated financial statements. See Note 5—Intangible Assets and Goodwill for additional information. |
Goodwill | Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment annually on January 31 or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company’s impairment tests are based on a single operating segment and reporting unit structure. The goodwill impairment test involves a two-step process. The first step involves comparing the Company's market capitalization to the carrying value of the reporting unit, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step of the test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company’s annual goodwill impairment test resulted in no impairment charges in any of the periods presented in the accompanying consolidated financial statements. |
Self insurance | Self insurance —The Company is self-insured for medical insurance up to certain annual stop-loss limits. The Company establishes a liability as of the balance sheet date for claims, both reported and incurred but not reported, using currently available information as well as historical claims experience, and as determined by an independent third party. |
Other long-term liabilities | Other long-term liabilities —The Company recognizes rental expense for its office lease on a straight-line basis over the lease term. Other long-term liabilities includes deferred rent, which represents the difference between actual operating lease payments due and straight-line rent expense. The excess is recorded as a deferred credit in the early periods of the lease, when cash payments are generally lower than straight-line rent expense, and is reduced in the later periods of the lease when payments begin to exceed the straight-line expense. |
Revenue recognition | Revenue recognition —The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been provided, the price of services is fixed or determinable, and collection is reasonably assured. The Company earns revenue primarily from service revenue, custodial revenue, interchange revenue. The Company earns service revenue from the fees paid by health plan partners, employer partners or individual members for administration services provided in connection with the tax-advantaged HSAs, HRAs and FSAs the Company administers. These fees are generally based on a tiered structure fixed for the duration of the contract agreement with health plan or employer partners, which is typically three to five years . The fees are paid on a monthly basis and revenue is recognized monthly as services are rendered under the Company’s written service agreements. In addition, the Company earns service revenue from fees paid by employer partners and plan participants in connection with plan administrator and named fiduciary services for 401(k) employer sponsors. The fees are paid on a quarterly basis and revenue is recognized in the month in which it is earned. The Company earns custodial revenue from HSA custodial assets on behalf of its customers. As a non-bank custodian, the Company deposits HSA cash with various custodial financial institutions having contract terms from three to five years and either a fixed or variable interest rate. These deposits are eligible for FDIC insurance for each individual HSA. The Company also invests HSA cash in an annuity contract with a insurance company partner. HSA investment balances are deposited with the custodial investment partner from whom the Company receives an administrative and recordkeeping fee. The Company recognizes this revenue in the month in which it is earned. The Company earns interchange revenue from card transactions when members are paying their healthcare claims using a card issued by the Company. The Company recognizes this revenue in the month in which it is earned. Amounts collected in excess of revenue recognized for the period are recorded as deferred revenue and reported as accrued liabilities and other long-term liabilities on the consolidated balance sheet. |
Cost of revenue | Cost of revenue —The Company incurs cost of revenue related to servicing member accounts, managing customer and partner relationships, and processing reimbursement claims. Expenditures include personnel-related costs, depreciation, amortization, stock-based compensation, common expense allocations, new member and participant supplies and other operating costs of the Company’s related member account servicing departments. Other components of the Company’s cost of revenue sold include interest retained by members on custodial assets held and interchange costs incurred in connection with processing card transactions initiated by members. |
Stock-based compensation | Stock-based compensation —For stock options granted to team members, the Company recognizes compensation expense for all stock-based awards based on the grant date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to non-team members is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the non-employee. For awards with performance conditions, we evaluate the probability of achieving the performance criteria and of the number of shares that are expected to vest, and compensation expense is then adjusted to reflect the number of shares expected to vest and the requisite service period. For awards with performance conditions, compensation expense is recognized using the graded-vesting attribution method in accordance with the provisions of FASB ASC Topic 718, Compensation—Stock Compensation ("Topic 718") . Upon the exercise of a stock option, common shares are issued from authorized, but not outstanding, common stock. Stock-based compensation expense related to restricted stock units is recognized based on the current value of the Company's closing stock price on the date of grant less the present value of future expected dividends discounted at the risk-free interest rate. Expense for restricted stock units is recognized on a straight-line basis over the requisite service period. |
Income tax provision | Income tax provision —The Company accounts for income taxes and the related accounts under the liability method as set forth in the authoritative guidance for accounting for income taxes. Under this method, current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, for net operating losses, and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for when it is more likely than not that some or all of the deferred tax assets may not be realized in future years. After weighing both the positive and negative evidence, the Company believes that it is more likely than not that all deferred tax assets will be realized as of January 31, 2018 . The Company uses the tax law ordering approach of intraperiod allocation in determining when excess tax benefits have been realized for provisions of the tax law that identify the sequence in which those amounts are utilized for tax purposes.The Company has also elected to exclude the indirect tax effects of share-based compensation deductions in computing the income tax provision recorded within the Consolidated Statement of Operations and Comprehensive Income. Also, we use the portfolio approach in releasing income tax effects from accumulated other comprehensive income. The Company recognizes the tax benefit from an uncertain tax position taken or expected to be taken in a tax return using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities, based on the technical merits of the position. For tax positions that are more likely than not to be sustained upon audit, the second step is to measure the tax benefit in the financial statements as the largest benefit that has a greater than 50% likelihood of being sustained upon settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as a component of other expense in the Consolidated Statements of Operations and Comprehensive Income. Significant judgment is required to evaluate uncertain tax positions. Changes in facts and circumstances could have a material impact on the Company’s effective tax rate and results of operations. |
Comprehensive income | Comprehensive income —Comprehensive income is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources, including unrealized gains and losses on marketable securities. |
Asset acquisitions and Business combinations | Asset acquisitions —During the years ended January 31, 2018 , the Company acquired the rights to be the custodian of two HSA portfolios and rights to act as sole administrator of one portfolio. During the year ended January 31, 2016 , the Company acquired the rights to be the custodian of two HSA portfolios. The purchased group of assets for the transactions did not include workforce or any processes and therefore did not constitute a business. Accordingly, the acquisitions were accounted for under the asset acquisition method of accounting in accordance with ASC 805-50, Business Combinations—Related Issues. Under the asset acquisition method of accounting, the Company is required to fair value the assets transferred. The cost of the assets acquired is allocated to the individual assets acquired based on their relative fair values and does not give rise to goodwill. The purchase price was allocated to acquired intangible member assets. Furthermore, transaction costs that are incurred in conjunction with an asset acquisition are allocated to the acquired intangible member assets. Business combinations —Acquisition-related expenses incurred in conjunction with the acquisition of a business as defined by ASC 805-10 are recognized in earnings in the period in which they are incurred and are included in other expense, net on the consolidated statement of operations. |
Concentration of market risk | Concentration of market risk —The Company derives a substantial portion of its revenue from providing services for healthcare accounts. A significant downturn in this market or changes in state and/or federal laws impacting the preferential tax treatment of healthcare accounts could have a material adverse effect on the Company’s results of operations. |
Concentration of credit risk | Concentration of credit risk —Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash. The Company maintains its cash and cash equivalents in bank and other depository accounts, which, at times, may exceed federally insured limits. The Company’s cash and cash equivalents held in banks as of January 31, 2018 was $199.5 million , of which $750,000 was covered by federal depository insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. The Company’s accounts receivable balance as of January 31, 2018 was $21.6 million . The Company has not experienced any significant write-offs to accounts receivable and believes that it is not exposed to significant credit risk with respect to accounts receivable. |
Interest rate risk | Interest rate risk —The Company has entered into depository agreements with financial institutions for its custodial cash deposits. The contracted interest rates were negotiated at the time the depository agreements were executed. A significant reduction in prevailing interest rates may make it difficult for the Company to continue to place custodial deposits at the current contracted rates. |
Use of estimates | Use of estimates —The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made estimates for the allowance for doubtful accounts, capitalized software development costs, evaluating goodwill and long-lived assets for impairment, useful lives of property and equipment and intangible assets, accrued compensation, accrued liabilities, grant date fair value of stock options and income taxes. Actual results could differ from those estimates. |
Recent adopted and issued accounting pronouncements | Recent adopted accounting pronouncements —In February 2018, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which gives companies the option to reclassify between accumulated other comprehensive income ("AOCI") and retained earnings the income tax rate differential that has become stranded in AOCI as a result of the enactment of the Tax Cuts and Jobs Act and the revaluation of certain deferred tax assets and liabilities at the new federal income tax rate of 21%. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company has elected to early adopt this ASU in the fourth quarter of fiscal year 2018. As a result of adopting this standard, the reclassification of the income tax effects of this tax reform resulted in an increase to retained earnings and a decrease to AOCI in the amount of $45,000 related to the decrease in the federal corporate tax rate. The Company's policy is to use the portfolio approach in releasing income tax effects from AOCI. In March 2016, the FASB issued 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 prospectively. 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 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 year ended January 31, 2018 , the Company recorded excess tax benefits of $14.1 million within our provision for income taxes in the 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 are classified as operating activities on the consolidated statements of cash flows for year ended January 31, 2018 . 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 allows the Company to account for forfeitures as they occur. The adoption of the forfeiture provisions had no material impact on the 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 after 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 consolidated financial statements. Recent issued accounting pronouncements —On May 28, 2014, the FASB issued ASU 2014-09 and related subsequent amendments, 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. The standard permits the use of either the retrospective or cumulative effect transition method. The adoption of the preceding standard 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 expenses in the consolidated statement of operations, and amortize these costs over the average economic life of an HSA 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. The Company expects to recognize its unrealized holding gains and losses on its marketable securities in other expense, net on the consolidated statement of operations, rather than through other comprehensive income. 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. The Company believes the adoption of this ASU will not have a material 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. The Company will adopt this ASU during the three months ended April 30, 2018 and believes the adoption of this ASU will have an immaterial impact on its 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 believes the adoption this ASU will not 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. 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 consolidated financial statements. |
Summary of business and signi21
Summary of business and significant accounting policies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of estimated useful life of property and equipment | The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Property and equipment consisted of the following as of January 31, 2018 and 2017 : (in thousands) January 31, 2018 January 31, 2017 Leasehold improvements $ 2,292 $ 860 Furniture and fixtures 4,785 3,129 Computer equipment 8,174 7,194 Property and equipment, gross 15,251 11,183 Accumulated depreciation (7,415 ) (6,013 ) Property and equipment, net $ 7,836 $ 5,170 |
Net income per share (Tables)
Net income per share (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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) Year ended January 31, 2018 2017 2016 Numerator (basic and diluted): Net income $ 47,362 $ 26,376 $ 16,613 Denominator (basic): Weighted-average common shares outstanding 60,304 58,615 56,719 Denominator (diluted): Weighted-average common shares outstanding 60,304 58,615 56,719 Weighted-average dilutive effect of stock options and restricted stock units 1,550 1,279 2,144 Weighted-average common shares outstanding 61,854 59,894 58,863 Net income per share: Basic $ 0.79 $ 0.45 $ 0.29 Diluted $ 0.77 $ 0.44 $ 0.28 |
Cash, cash equivalents and ma23
Cash, cash equivalents and marketable securities (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities as of January 31, 2018 consisted of the following: (in thousands) Cost basis Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 199,472 $ — $ — $ 199,472 Marketable securities: Mutual funds 41,153 270 (626 ) 40,797 Total cash, cash equivalents and marketable securities $ 240,625 $ 270 $ (626 ) $ 240,269 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 |
Marketable securities by maturity date | The following table summarizes the cost basis and fair value of the marketable securities by contractual maturity as of January 31, 2018 : (in thousands) Cost basis Fair value One year or less $ 25,664 $ 25,590 Over one year and less than five years 15,489 15,207 Total $ 41,153 $ 40,797 |
Schedule of marketable securities with an unrealized loss position | As of January 31, 2018 , 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 $ 25,590 $ (243 ) $ 15,207 $ (383 ) |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | The useful life used for computing depreciation for all other asset classes is described below: Computer Equipment 3-5 years Furniture and Fixtures 5 years Property and equipment consisted of the following as of January 31, 2018 and 2017 : (in thousands) January 31, 2018 January 31, 2017 Leasehold improvements $ 2,292 $ 860 Furniture and fixtures 4,785 3,129 Computer equipment 8,174 7,194 Property and equipment, gross 15,251 11,183 Accumulated depreciation (7,415 ) (6,013 ) Property and equipment, net $ 7,836 $ 5,170 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and associated accumulated amortization of intangible assets is as follows as of January 31, 2018 and January 31, 2017 : (in thousands) January 31, 2018 January 31, 2017 Amortized intangible assets: Capitalized software development costs $ 31,993 $ 23,925 Software 8,863 7,041 Other intangible assets 2,882 — Acquired intangible member assets 83,915 64,962 Intangible assets, gross 127,653 95,928 Accumulated amortization (44,018 ) (30,908 ) Intangible assets, net $ 83,635 $ 65,020 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for the years ending January 31 is as follows: Year ending January 31, (in thousands) 2019 $ 13,290 2020 10,821 2021 7,705 2022 6,011 2023 5,883 Thereafter 39,925 Total $ 83,635 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments required under non-cancelable obligations as of January 31, 2018 are as follows: Year ending January 31, (in thousands) Office lease Other agreements Total 2019 $ 3,904 $ 2,312 $ 6,216 2020 3,848 2,069 5,917 2021 4,096 2,134 6,230 2022 4,198 1,460 5,658 2023 4,303 4 4,307 Thereafter 17,034 — 17,034 Total $ 37,383 $ 7,979 $ 45,362 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The Income tax provision consisted of the following: Year ended January 31, (in thousands) 2018 2017 2016 Current: Federal $ 392 $ 14,848 $ 9,876 State 130 1,823 1,226 Total current tax provision $ 522 $ 16,671 $ 11,102 Deferred: Federal $ 4,068 $ (2,308 ) $ (1,772 ) State 237 (619 ) (389 ) Total deferred tax (benefit) provision $ 4,305 $ (2,927 ) $ (2,161 ) Total income tax provision $ 4,827 $ 13,744 $ 8,941 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax provision differed from the amounts computed by applying the U.S. federal statutory income tax rate of 34% to income before income tax provision as a result of the following: Year ended January 31, (in thousands) 2018 2017 2016 Federal income tax provision at the statutory rate $ 17,744 $ 13,641 $ 8,688 State income tax provision, net of federal tax benefit 1,241 742 541 Non-deductible or non-taxable items 143 87 56 Excess tax benefits on stock-based compensation expense, net (14,136 ) — — Federal research and development credit (729 ) (907 ) (371 ) Deferred tax rate adjustment due to tax reform 458 — — Current statutory rate differential due to tax reform (308 ) — — Change in uncertain tax position reserves, net of indirect benefits 191 246 96 Other items, net 223 (65 ) (69 ) Total income tax provision $ 4,827 $ 13,744 $ 8,941 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: (in thousands) January 31, 2018 January 31, 2017 Deferred tax assets: Accrued bonuses $ 489 $ 499 Other accrued liabilities 572 559 Deferred rent 520 364 Stock compensation 5,316 5,061 Net operating loss carryforward 666 84 Research and development credits 2,882 2,225 AMT credits 857 548 Other, net 286 449 Total gross deferred tax assets $ 11,588 $ 9,789 Deferred tax liabilities: Fixed assets: depreciation and gain/loss $ (1,170 ) $ (902 ) Intangibles: amortization (4,830 ) (7,252 ) Other, net (127 ) (57 ) Total gross deferred tax liability (6,127 ) (8,211 ) Net deferred tax asset $ 5,461 $ 1,578 |
Schedule of Unrecognized Tax Benefits Roll Forward | A tabular reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: (in thousands) January 31, 2018 January 31, 2017 Gross unrecognized tax benefits at beginning of year $ 674 $ 393 Gross amounts of increases and decreases: Increases as a result of tax positions taken during a prior period — — Decreases as a result of tax positions taken during a prior period — — Increases as a result of tax positions taken during the current period 215 281 Decreases as a result of tax positions taken during the current period — — Decreases resulting from the lapse of the applicable statute of limitations — — Gross unrecognized tax benefits at end of year $ 889 $ 674 |
Schedule of Unrecognized Tax Benefit Netted Against Deferred Tax Asset | The resulting unrecognized tax benefit recorded within the Company's consolidated balance sheet excludes the following amounts that have been netted against the related deferred tax assets accordingly: (in thousands) January 31, 2018 January 31, 2017 Total gross unrecognized tax benefits $ 889 $ 674 Amounts netted against related deferred tax assets (889 ) (674 ) Unrecognized tax benefits recorded on the consolidated balance sheet $ — $ — |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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 consolidated statements of operations and comprehensive income during the years presented: Year ended January 31, (in thousands) 2018 2017 2016 Cost of revenue $ 2,594 $ 1,780 $ 1,088 Sales and marketing 2,030 914 903 Technology and development 3,318 1,903 1,014 General and administrative 6,368 3,801 2,878 Total stock-based compensation expense $ 14,310 $ 8,398 $ 5,883 |
Summary of assumptions | The key input assumptions that were utilized in the valuation of the stock options granted during the years ended January 31, 2018 , 2017 and 2016 are as follows: Year ended January 31, 2018 2017 2016 Expected dividend yield — % — % — % Expected stock price volatility 37.79% - 38.01% 38.01% - 38.37% 38.29% - 40.29% Risk-free interest rate 1.18% - 2.07% 1.18% - 2.18% 1.47% - 1.80% Expected life of options 4.50 - 6.25 years 4.50 - 6.25 years 5.43 - 6.25 years |
Summary of stock options | A summary of stock option activity is as follows: Outstanding stock options (in thousands, except for exercise prices and term) Number of Range of Weighted- Weighted- Aggregate Outstanding as of January 31, 2017 4,716 $0.10 - 44.53 $ 18.36 7.60 $ 131,529 Granted 420 $41.28 - 51.44 $ 42.72 Exercised (1,272 ) $0.10 - 46.40 $ 11.45 Forfeited (165 ) $3.50 - 46.40 $ 33.39 Outstanding as of January 31, 2018 3,699 $0.10 - 51.44 $ 22.83 7.26 $ 102,796 Vested and expected to vest as of January 31, 2018 3,699 $ 22.83 7.26 $ 102,796 Exercisable as of January 31, 2018 1,125 $ 16.57 6.49 $ 38,319 A summary of stock options granted and exercised is as follows: Year ended January 31, (in thousands, except weighted-average fair value) 2018 2017 2016 Stock options granted 420 1,399 1,093 Weighted-average fair value at date of grant $ 42.72 $ 28.85 $ 27.34 Total intrinsic value of stock options exercised $ 44,823 $ 50,094 $ 51,773 |
Summary of restricted stock unit activity | A summary of all restricted stock unit activity is as follows: (in thousands, except weight-average grant date fair value) Shares Weighted-average grant date fair value Unvested at January 31, 2017 10 $ 26.93 Granted 468 44.61 Vested (15 ) 36.74 Forfeitures (12 ) 46.41 Unvested at January 31, 2018 451 $ 44.10 |
Fair value (Tables)
Fair value (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | The following tables summarizes the assets measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value: January 31, 2018 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,797 $ — $ — January 31, 2017 (in thousands) Level 1 Level 2 Level 3 Marketable securities: Mutual funds $ 40,405 $ — $ — |
Supplementary quarterly finan30
Supplementary quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Three months ended (in thousands, except for per share amounts) January 31, 2018 October 31, 2017 July 31, 2017 April 30, 2017 Total revenue $ 60,436 $ 56,789 $ 56,879 $ 55,421 Total cost of revenue 28,790 23,062 21,077 21,680 Gross profit 31,646 33,727 35,802 33,741 Total operating expenses 23,212 20,165 19,307 17,814 Total other expense (1,706 ) (395 ) (38 ) (90 ) Income tax provision (benefit) 823 2,685 (489 ) 1,808 Net income $ 5,905 $ 10,482 $ 16,946 $ 14,029 Net income per share: Basic (1) $ 0.10 $ 0.17 $ 0.28 $ 0.23 Diluted (1) $ 0.09 $ 0.17 $ 0.27 $ 0.23 Three months ended (in thousands, except for per share amounts) January 31, 2017 October 31, 2016 July 31, 2016 April 30, 2016 Total revenue $ 46,814 $ 43,358 $ 44,185 $ 44,013 Total cost of revenue 22,585 17,467 15,631 16,332 Gross profit 24,229 25,891 28,554 27,681 Total operating expenses 18,048 16,849 15,815 14,431 Total other expense (158 ) (256 ) (37 ) (641 ) Income tax provision 1,961 2,778 4,469 4,536 Net income $ 4,062 $ 6,008 $ 8,233 $ 8,073 Net income per share: Basic $ 0.07 $ 0.10 $ 0.14 $ 0.14 Diluted (1) $ 0.07 $ 0.10 $ 0.14 $ 0.14 (1) Net income per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding. |
Summary of business and signi31
Summary of business and significant accounting policies (Details) | May 11, 2015USD ($)$ / sharesshares | Jan. 31, 2018USD ($)segment$ / sharesshares | Jan. 31, 2017USD ($)$ / sharesshares | Jan. 31, 2016USD ($)shares | Jan. 31, 2015USD ($) | Jul. 14, 2014$ / sharesshares |
Schedule of Equity Method Investments [Line Items] | ||||||
Cost method ownership | 2.00% | |||||
Cost method investments | $ 500,000 | |||||
Number of segments | segment | 1 | |||||
Account fees receivable | $ 7,900,000 | |||||
Accounts receivables | 9,000,000 | |||||
Credit card receivables | 4,700,000 | |||||
Allowance for doubtful accounts | $ 208,000 | $ 75,000 | ||||
Class of Stock [Line Items] | ||||||
Common stock, shares issued (shares) | shares | 972,500 | 60,825,000 | 59,538,000 | |||
IPO price per share (dollars per share) | $ / shares | $ 25.90 | |||||
Shares sold by stockholders (shares) | shares | 3,455,000 | |||||
Number of shares exercised (shares) | shares | 1,272,000 | 1,951,000 | ||||
Net proceeds from IPO | $ 23,500,000 | |||||
Payments of stock issuance costs underwriters discounts and commissions | 1,000,000 | |||||
Other offering expense | 688,000 | |||||
Proceeds from share of shares | $ 222,000 | |||||
Common and preferred shares authorized (shares) | shares | 1,000,000,000 | |||||
Common stock, shares authorized (shares) | shares | 900,000,000 | 900,000,000 | 900,000,000 | |||
Preferred stock, shares authorized (shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||
Preferred stock, par value per share (dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Cash and cash equivalents | $ 199,472,000 | $ 139,954,000 | $ 83,641,000 | $ 111,005,000 | ||
Cash covered by insurance | 750,000 | |||||
Accounts receivable | 21,602,000 | 17,001,000 | ||||
Other Expense | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquisition related expenses | $ 2,200,000 | $ 631,000,000 | $ 471,000,000 | |||
Furniture and Fixtures | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful life of property, plant and equipment (in years) | 5 years | |||||
Minimum | ||||||
Class of Stock [Line Items] | ||||||
Contract term for services | 3 years | |||||
Minimum | Leasehold improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful life of property, plant and equipment (in years) | 3 years | |||||
Minimum | Computer Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful life of property, plant and equipment (in years) | 3 years | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Contract term for services | 5 years | |||||
Maximum | Leasehold improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful life of property, plant and equipment (in years) | 5 years | |||||
Maximum | Computer Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Useful life of property, plant and equipment (in years) | 5 years | |||||
Healthbox Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership (percentage) | 22.00% | |||||
Equity method investments | $ 206,000 | |||||
Capitalized software development costs | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful life of intangible assets | 3 years | |||||
Capitalized software development costs | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful life of intangible assets | 5 years | |||||
Other intangible assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired finite-lived intangible assets, useful life | 10 years | |||||
Capitalized software development costs | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||
Developed Technology Rights | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful life of intangible assets | 3 years | |||||
Developed Technology Rights | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Useful life of intangible assets | 5 years | |||||
Common stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares exercised (shares) | shares | 380,000 | 1,951,000 |
Summary of business and signi32
Summary of business and significant accounting policies New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax benefits | $ 14,136 | $ 0 | $ 0 |
Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect from adoption of accounting standard update | 0 | ||
Accounting Standards Update 2018-02 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect from adoption of accounting standard update | 45 | ||
Accounting Standards Update 2018-02 | AOCI Attributable to Parent | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect from adoption of accounting standard update | (45) | ||
Accounting Standards Update 2016-09 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect from adoption of accounting standard update | $ 8,100 |
Net income per share (Details)
Net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Numerator (basic and diluted): | |||||||||||
Net income | $ 5,905 | $ 10,482 | $ 16,946 | $ 14,029 | $ 4,062 | $ 6,008 | $ 8,233 | $ 8,073 | $ 47,362 | $ 26,376 | $ 16,613 |
Denominator (basic): | |||||||||||
Weighted-average common shares outstanding (shares) | 60,304 | 58,615 | 56,719 | ||||||||
Denominator (diluted): | |||||||||||
Weighted-average common shares outstanding (shares) | 60,304 | 58,615 | 56,719 | ||||||||
Weighted-average dilutive effect of stock options and restricted stock units (shares) | 1,550 | 1,279 | 2,144 | ||||||||
Weighted-average common shares outstanding (shares) | 61,854 | 59,894 | 58,863 | ||||||||
Net income per share: | |||||||||||
Basic (dollars per share) | $ 0.10 | $ 0.17 | $ 0.28 | $ 0.23 | $ 0.07 | $ 0.10 | $ 0.14 | $ 0.14 | $ 0.79 | $ 0.45 | $ 0.29 |
Diluted (dollars per share) | $ 0.09 | $ 0.17 | $ 0.27 | $ 0.23 | $ 0.07 | $ 0.10 | $ 0.14 | $ 0.14 | $ 0.77 | $ 0.44 | $ 0.28 |
Antidilutive securities excluded from computation of earnings per share (shares) | 602 | 1,400 | 791 |
Cash, cash equivalents and ma34
Cash, cash equivalents and marketable securities (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents, cost basis | $ 199,472 | $ 139,954 | $ 83,641 | $ 111,005 |
Cash and cash equivalents, fair value | 199,472 | 139,954 | ||
Marketable securities, gross unrealized gains | 270 | 207 | ||
Marketable securities, gross unrealized losses | (626) | (472) | ||
Marketable securities, at fair value | 40,797 | 40,405 | ||
Total cash, cash equivalents and marketable securities, cost basis | 240,625 | 180,624 | ||
Total cash, cash equivalents and marketable securities | 240,269 | 180,359 | ||
Mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Marketable securities, cost basis | 41,153 | 40,670 | ||
Marketable securities, gross unrealized gains | 270 | 207 | ||
Marketable securities, gross unrealized losses | (626) | (472) | ||
Marketable securities, at fair value | $ 40,797 | $ 40,405 |
Cash, cash equivalents and ma35
Cash, cash equivalents and marketable securities (Contract Maturity) (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Cost basis | |
One year or less | $ 25,664 |
Over one year and less than five years | 15,489 |
Total | 41,153 |
Fair value | |
One year or less | 25,590 |
Over one year and less than five years | 15,207 |
Total | $ 40,797 |
Cash, cash equivalents and ma36
Cash, cash equivalents and marketable securities (Unrealized Losses) (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Less than one year, Fair value | $ 25,590 |
Less than one year, Unrealized losses | (243) |
Greater than one year, Fair value | 15,207 |
Greater than one year, Unrealized losses | $ (383) |
Property and equipment (Schedul
Property and equipment (Schedule of property and equipment) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 15,251 | $ 11,183 |
Accumulated depreciation | (7,415) | (6,013) |
Property and equipment, net | 7,836 | 5,170 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,292 | 860 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,785 | 3,129 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,174 | $ 7,194 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2.8 | $ 2 | $ 1.5 |
Intangible assets and goodwil39
Intangible assets and goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Purchase price adjustment of acquired intangible members assets | $ 0 | $ 0 | $ 104 |
Purchase price | 2,882 | 0 | 0 |
Capitalized software development costs | 8,100 | 7,700 | 5,600 |
Software development costs incurred and expensed | 12,200 | 10,000 | 7,600 |
Amortization expense | 13,200 | $ 11,200 | 7,100 |
Portfolio one of HSAs acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase price adjustment of acquired intangible members assets | 34,200 | ||
Portfolio two of HSAs acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase price adjustment of acquired intangible members assets | $ 6,200 | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, useful life | 15 years | ||
Customer relationships | Servicing Contracts, Portfolio of HSA Members One, Custodian | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase price adjustment of acquired intangible members assets | $ 6,400 | ||
Acquired finite-lived intangible assets, useful life | 15 years | ||
Customer relationships | Servicing Contracts, Portfolio of HSA Members, Sole Administrator | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase price adjustment of acquired intangible members assets | $ 3,300 | ||
Customer relationships | Servicing Contracts, Portfolio of HSA Members Two, Custodian | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase price adjustment of acquired intangible members assets | 9,300 | ||
Finite-lived intangible assets acquired, cash paid | 8,000 | ||
Contingent earn-out payment | $ 1,300 | ||
Acquired finite-lived intangible assets, useful life | 15 years | ||
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, useful life | 10 years | ||
Definitive Asset Purchase Agreement With BenefitGuard LLC [Member] | Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase price | $ 2,900 | ||
Acquired finite-lived intangible assets, useful life | 10 years |
Intangible assets and goodwil40
Intangible assets and goodwill (Schedule of finite-lived intangible assets) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 127,653 | $ 95,928 |
Accumulated amortization | (44,018) | (30,908) |
Intangible assets, net | 83,635 | 65,020 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 31,993 | 23,925 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 8,863 | 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 | $ 83,915 | $ 64,962 |
Intangible assets and goodwil41
Intangible assets and goodwill (Schedule for future amortization expense) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 13,290 | |
2,020 | 10,821 | |
2,021 | 7,705 | |
2,022 | 6,011 | |
2,023 | 5,883 | |
Thereafter | 39,925 | |
Intangible assets, net | $ 83,635 | $ 65,020 |
Commitments and contingencies42
Commitments and contingencies (Future Minimum Rental) (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Future minimum lease payments | |
2,019 | $ 6,216 |
2,020 | 5,917 |
2,021 | 6,230 |
2,022 | 5,658 |
2,023 | 4,307 |
Thereafter | 17,034 |
Total | 45,362 |
Office lease | |
Future minimum lease payments | |
2,019 | 3,904 |
2,020 | 3,848 |
2,021 | 4,096 |
2,022 | 4,198 |
2,023 | 4,303 |
Thereafter | 17,034 |
Total | 37,383 |
Other agreements | |
Future minimum lease payments | |
2,019 | 2,312 |
2,020 | 2,069 |
2,021 | 2,134 |
2,022 | 1,460 |
2,023 | 4 |
Thereafter | 0 |
Total | $ 7,979 |
Commitments and contingencies43
Commitments and contingencies (Narrative) (Details) | May 31, 2017USD ($) | Sep. 16, 2016USD ($) | Jul. 01, 2015lease_renewal | May 15, 2015lease_renewal | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |||||||
Annual initial rent | $ 513,000 | ||||||
Written notice required for contract termination (days) | 180 days | ||||||
Contract termination fees, as percentage of minimum processing fees (percentage) | 75.00% | ||||||
Office lease | |||||||
Operating Leased Assets [Line Items] | |||||||
Term of contract | 129 months | ||||||
Lease expense for office space | $ 4,300,000 | $ 3,300,000 | $ 2,100,000 | ||||
Lease Agreement signed on May 15, 2015 | |||||||
Operating Leased Assets [Line Items] | |||||||
Number of lease renewals | lease_renewal | 2 | ||||||
Operating leases, renewal term | 5 years | ||||||
Annual initial rent | $ 1,000,000 | ||||||
Annual increase in rent (percentage) | 2.50% | ||||||
Reversal of rent expense | 470,000 | ||||||
Amended Lease Agreement | |||||||
Operating Leased Assets [Line Items] | |||||||
Term of contract | 129 months | ||||||
Number of lease renewals | lease_renewal | 2 | ||||||
Operating leases, renewal term | 5 years | ||||||
Annual initial rent | $ 1,600,000 | ||||||
Annual increase in rent (percentage) | 2.50% | ||||||
Lease amended September 2016 | |||||||
Operating Leased Assets [Line Items] | |||||||
Annual initial rent | $ 569,000 | ||||||
Annual increase in rent (percentage) | 2.50% | ||||||
Other agreements | |||||||
Operating Leased Assets [Line Items] | |||||||
Lease expense for office space | $ 460,000 | $ 307,000 | $ 249,000 | ||||
Minimum | |||||||
Operating Leased Assets [Line Items] | |||||||
Annual increase in rent (percentage) | 2.50% | ||||||
Maximum | |||||||
Operating Leased Assets [Line Items] | |||||||
Annual increase in rent (percentage) | 3.10% |
Indebtedness (Details)
Indebtedness (Details) - Line of Credit - Secured Revolving Credit Facility | Sep. 30, 2015USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||
Secured revolving credit facility, aggregate principal | $ 100,000,000 | ||
Debt term | 5 years | ||
Amounts drawn under Credit Agreement | $ 0 | ||
Interest expense | 274,000 | $ 275,000 | |
Credit facility, deferred finance costs, net | $ 317,000 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee | 0.20% | ||
Interest coverage ratio | 3 | ||
Minimum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Variable rate borrowing spread | 1.50% | ||
Minimum | Customary Base Rate | |||
Debt Instrument [Line Items] | |||
Variable rate borrowing spread | 0.50% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee | 0.30% | ||
Leverage ratio | 3 | ||
Maximum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Variable rate borrowing spread | 2.00% | ||
Maximum | Customary Base Rate | |||
Debt Instrument [Line Items] | |||
Variable rate borrowing spread | 1.00% |
Income taxes (Component of Inco
Income taxes (Component of Income tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Current: | |||||||||||
Federal | $ 392 | $ 14,848 | $ 9,876 | ||||||||
State | 130 | 1,823 | 1,226 | ||||||||
Total current tax provision | 522 | 16,671 | 11,102 | ||||||||
Deferred: | |||||||||||
Federal | 4,068 | (2,308) | (1,772) | ||||||||
State | 237 | (619) | (389) | ||||||||
Total deferred tax (benefit) provision | 4,305 | (2,927) | (2,161) | ||||||||
Total income tax provision | $ 823 | $ 2,685 | $ (489) | $ 1,808 | $ 1,961 | $ 2,778 | $ 4,469 | $ 4,536 | $ 4,827 | $ 13,744 | $ 8,941 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory income tax rate | 34.00% | ||
Effective income tax rate | 9.20% | 34.30% | 35.00% |
Current statutory rate differential due to tax reform | $ 308,000 | $ 0 | $ 0 |
Deferred tax rate adjustment due to tax reform | 458,000 | 0 | 0 |
Valuation allowance balance | 0 | ||
Total gross unrecognized tax benefits | 889,000 | 674,000 | 393,000 |
Anticipated decrease in total gross unrecognized tax benefits within 12 months | 811,000 | 572,000 | |
Period increase (decrease) in unrecognized tax benefit | 215,000 | ||
Increase (decrease) in interest and penalty recorded as unrecognized tax benefit. | 0 | 0 | $ 8,000 |
Penalties and interest accrued | 0 | $ 0 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | 856,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | 2,000 | ||
December 31, 2025 Through 2036 | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 2,600,000 | ||
December 31, 2025 Through 2036 | State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 2,100,000 | ||
December 31, 2019 | Research | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | 2,600,000 | ||
December 31, 2024 | Research | State | |||
Operating Loss Carryforwards [Line Items] | |||
Credit carryforward | $ 1,500,000 |
Income taxes (Reconciliation of
Income taxes (Reconciliation of Income tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal income tax provision at the statutory rate | $ 17,744 | $ 13,641 | $ 8,688 | ||||||||
State income tax provision, net of federal tax benefit | 1,241 | 742 | 541 | ||||||||
Non-deductible or non-taxable items | 143 | 87 | 56 | ||||||||
Excess tax benefits on stock-based compensation expense, net | (14,136) | 0 | 0 | ||||||||
Federal research and development credit | (729) | (907) | (371) | ||||||||
Deferred tax rate adjustment due to tax reform | 458 | 0 | 0 | ||||||||
Current statutory rate differential due to tax reform | (308) | 0 | 0 | ||||||||
Change in uncertain tax position reserves, net of indirect benefits | 191 | 246 | 96 | ||||||||
Other items, net | 223 | (65) | (69) | ||||||||
Total income tax provision | $ 823 | $ 2,685 | $ (489) | $ 1,808 | $ 1,961 | $ 2,778 | $ 4,469 | $ 4,536 | $ 4,827 | $ 13,744 | $ 8,941 |
Income taxes (Deferred Tax Asse
Income taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Deferred tax assets: | ||
Accrued bonuses | $ 489 | $ 499 |
Other accrued liabilities | 572 | 559 |
Deferred rent | 520 | 364 |
Stock compensation | 5,316 | 5,061 |
Net operating loss carryforward | 666 | 84 |
Research and development credits | 2,882 | 2,225 |
AMT credits | 857 | 548 |
Other, net | 286 | 449 |
Total gross deferred tax assets | 11,588 | 9,789 |
Deferred tax liabilities: | ||
Fixed assets: depreciation and gain/loss | (1,170) | (902) |
Intangibles: amortization | (4,830) | (7,252) |
Other, net | (127) | (57) |
Total gross deferred tax liability | (6,127) | (8,211) |
Net deferred tax asset | $ 5,461 | $ 1,578 |
Income taxes (Unrecognized Tax
Income taxes (Unrecognized Tax Benefit Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross unrecognized tax benefits at beginning of year | $ 674 | $ 393 |
Increases as a result of tax positions taken during a prior period | 0 | 0 |
Decreases as a result of tax positions taken during a prior period | 0 | 0 |
Increases as a result of tax positions taken during the current period | 215 | 281 |
Decreases as a result of tax positions taken during the current period | 0 | 0 |
Decreases resulting from the lapse of the applicable statute of limitations | 0 | 0 |
Gross unrecognized tax benefits at end of year | 889 | 674 |
Amounts netted against related deferred tax assets | (889) | (674) |
Unrecognized tax benefits recorded on the consolidated balance sheet | $ 0 | $ 0 |
Stock-based compensation (Stock
Stock-based compensation (Stock-based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 14,310 | $ 8,398 | $ 5,883 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 2,594 | 1,780 | 1,088 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 2,030 | 914 | 903 |
Technology and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | 3,318 | 1,903 | 1,014 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $ 6,368 | $ 3,801 | $ 2,878 |
Stock-based compensation (Narra
Stock-based compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (shares) | 2,600,000 | ||||
Additional shares available for grants as percentage of capital stock outstanding | 3.00% | ||||
Shares available for grant (shares) | 1,800,000 | ||||
Expiration period after termination | 10 years | ||||
Expiration period from termination of employment | 90 days | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||
Options exercisable (shares) | 1,100,000 | 1,500,000 | |||
Recognition period for stock-based compensation | 2 years | ||||
Unrecognized stock compensation expense to be recognized in future | $ 17,600 | ||||
Share based compensation | 14,310 | $ 8,398 | $ 5,883 | ||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock granted (shares) | 1,500,000 | ||||
Share based compensation | $ 1,400 | 1,700 | $ 2,500 | ||
Performance Shares | Vesting criteria for FY 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested | 10.00% | ||||
Minimum adjusted EBITDA to be attained for shares to vest | $ 34,500 | ||||
Minimum adjusted EBITDA to be attained for shares to vest per share (usd per share) | $ 0.61 | ||||
Performance Shares | Vesting criteria for FY 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested | 20.00% | ||||
Annual growth rate of adjusted EBITDA per share of common stock to be achieved for options to vest | 30.00% | ||||
Performance Shares | Vesting criteria subsequent to FY 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual growth rate of adjusted EBITDA per share of common stock to be achieved for options to vest | 35.00% | ||||
Performance Shares | Vesting criteria for FY 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested | 30.00% | ||||
Annual growth rate of adjusted EBITDA per share of common stock to be achieved for options to vest | 30.00% | ||||
Performance Shares | Vesting criteria for FY 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested | 40.00% | ||||
Annual growth rate of adjusted EBITDA per share of common stock to be achieved for options to vest | 25.00% | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Recognition period for stock-based compensation | 2 years 11 months | ||||
Performance stock granted (shares) | 468,000 | ||||
Share based compensation | $ 3,300 | $ 233 | |||
Award vesting period | 4 years | ||||
Unrecorded stock-based compensation expense | $ 15,100 | ||||
Performance Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock granted (shares) | 146,964 | ||||
Share based compensation | $ 1,800 | ||||
Grant date fair value | $ 6,100 | ||||
Minimum | Performance Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested | 0.00% | ||||
Maximum | Performance Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested | 150.00% |
Stock-based compensation (Assum
Stock-based compensation (Assumptions) (Details) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 37.79% | 38.01% | 38.29% |
Risk-free interest rate | 1.18% | 1.18% | 1.47% |
Expected life of options | 4 years 6 months | 4 years 6 months | 5 years 5 months 6 days |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 38.01% | 38.37% | 40.29% |
Risk-free interest rate | 2.07% | 2.18% | 1.80% |
Expected life of options | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Stock-based compensation (Sto53
Stock-based compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Number of options | |||
Opening balance (shares) | 4,716 | ||
Granted (shares) | 420 | 1,399 | 1,093 |
Number of shares exercised (shares) | (1,272) | (1,951) | |
Forfeited (shares) | (165) | ||
Ending balance (shares) | 3,699 | 4,716 | |
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 (dollars per share) | 11.45 | $ 0.98 | |
Forfeited (usd per share) | 33.39 | ||
Ending balance (usd per share) | $ 22.83 | $ 18.36 | |
Aggregate intrinsic value | $ 102,796 | $ 131,529 | |
Weighted- average contractual term (in years) | 7 years 3 months 5 days | 7 years 7 months 5 days | |
Vested and expected to vest as of year end (shares) | 3,699 | ||
Vested and expected to vest as of year end, weighted average exercise price (usd per share) | $ 22.83 | ||
Vested and expected to vest as of year end, weighted- average contractual term (in years) | 7 years 3 months 5 days | ||
Vested and expected to vest as of year end, aggregate intrinsic value | $ 102,796 | ||
Exercisable as of year end (shares) | 1,125 | ||
Exercisable as of year end (usd per share) | $ 16.57 | ||
Exercisable as of year end, weighted-average contractual term (in years) | 6 years 5 months 25 days | ||
Exercisable as of year end, aggregate intrinsic value | $ 38,319 |
Stock-based compensation (Sto54
Stock-based compensation (Stock Options Granted and Exercised) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock options granted (shares) | 420 | 1,399 | 1,093 |
Weighted-average fair value at date of grant (usd per share) | $ 42.72 | $ 28.85 | $ 27.34 |
Total intrinsic value of stock options exercised | $ 44,823 | $ 50,094 | $ 51,773 |
Stock-based compensation (Restr
Stock-based compensation (Restricted Stock Unity Activity) (Details) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Jan. 31, 2018$ / sharesshares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 10 |
Granted (in shares) | shares | 468 |
Vested (in shares) | shares | (15) |
Forfeitures (in shares) | shares | (12) |
Unvested, ending balance (in shares) | shares | 451 |
Weighted-average grant date fair value | |
Unvested, beginning balance (usd per share) | $ / shares | $ 26.93 |
Granted (usd per share) | $ / shares | 44.61 |
Vested (usd per share) | $ / shares | 36.74 |
Forfeitures (usd per share) | $ / shares | 46.41 |
Unvested, ending balance (usd per share) | $ / shares | $ 44.10 |
Fair value (Details)
Fair value (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | $ 40,797 | $ 40,405 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | 40,797 | 40,405 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | $ 0 | $ 0 |
Employee benefits (Details)
Employee benefits (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum coverage per incident under self-insurance | $ 110,000 | ||
Accrued compensation | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Liability for self-insured medical claims | $ 1,700,000 | ||
Supplemental Employee Retirement Plan | 401(k) | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of employees eligible earnings | 3.50% | ||
Annual vesting | 25.00% | ||
Administrative expenses | $ 25,000 | $ 15,000 | $ 16,000 |
Employer matching contribution expense | $ 1,400,000 | $ 916,000 | $ 626,000 |
Supplementary quarterly finan58
Supplementary quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 60,436 | $ 56,789 | $ 56,879 | $ 55,421 | $ 46,814 | $ 43,358 | $ 44,185 | $ 44,013 | $ 229,525 | $ 178,370 | $ 126,786 |
Total cost of revenue | 28,790 | 23,062 | 21,077 | 21,680 | 22,585 | 17,467 | 15,631 | 16,332 | 94,609 | 72,015 | 54,188 |
Gross profit | 31,646 | 33,727 | 35,802 | 33,741 | 24,229 | 25,891 | 28,554 | 27,681 | 134,916 | 106,355 | 72,598 |
Total operating expenses | 23,212 | 20,165 | 19,307 | 17,814 | 18,048 | 16,849 | 15,815 | 14,431 | 80,498 | 65,143 | 46,455 |
Total other expense | (1,706) | (395) | (38) | (90) | (158) | (256) | (37) | (641) | (2,229) | (1,092) | (589) |
Income tax provision (benefit) | 823 | 2,685 | (489) | 1,808 | 1,961 | 2,778 | 4,469 | 4,536 | 4,827 | 13,744 | 8,941 |
Net income | $ 5,905 | $ 10,482 | $ 16,946 | $ 14,029 | $ 4,062 | $ 6,008 | $ 8,233 | $ 8,073 | $ 47,362 | $ 26,376 | $ 16,613 |
Net income per share: | |||||||||||
Basic (dollars per share) | $ 0.10 | $ 0.17 | $ 0.28 | $ 0.23 | $ 0.07 | $ 0.10 | $ 0.14 | $ 0.14 | $ 0.79 | $ 0.45 | $ 0.29 |
Diluted (dollars per share) | $ 0.09 | $ 0.17 | $ 0.27 | $ 0.23 | $ 0.07 | $ 0.10 | $ 0.14 | $ 0.14 | $ 0.77 | $ 0.44 | $ 0.28 |