On this page of StockholderLetter.com we present the 5/12/2023 shareholder letter from HEALTHEQUITY, INC. — ticker symbol HQY. Reading current and past HQY letters to shareholders can bring important insights into the investment thesis.
2023
Drew Gerken
Team member since 2011
A
N
N
U A
L
R
E
P
O
T
R
Karisa Graf
Team member since 2020
Copyright    2022 HealthEquity, Inc. All rights reserved.
To our shareholders
The fox knows many
things, but the hedgehog
knows one big thing.
- Archilochus, The Greek Poet
Fiscal year 2023 was a good year for hedgehogs    
purple ones at that.
At HealthEquity, our    one big thing    is making a difference
for American families by helping them to connect health and
wealth. Always has been.
We do it through the administration of nearly 15 million health
savings and other employer-sponsored benefits accounts
and by supporting 125,000 employers, in partnership
with more than 200 health and retirement plan providers
and benefits administrators nationwide. We believe this
consistent focus, and our commitment to remarkable    Purple   
service, have helped make HealthEquity both the largest and
the best in our business.
In Fiscal 2023 HealthEquity delivered double-digit percentage growth in revenue, adjusted EBITDA,
HSA members and HSA Assets. Team Purple welcomed 971,000 new HSA members, a record
for organic HSA growth for the third consecutive year. Adjusted profit margins widened and GAAP
losses narrowed. Measures of customer delight and team member engagement improved. The team
capitalized on tailwinds, including strong job creation among our clients and normalization of interest
rates. We are truly grateful for the opportunity to celebrate the team   s accomplishments this year.
We continue to focus HealthEquity   s energy and capital on the opportunity to equip Americans
with tools to manage the financial aspects of healthcare. Last year, we expanded Engage 360
and MaxEnroll, digital services that help clients and members understand the benefits of HSAs at
enrollment and take full advantage of incentives their employer may be offering year-round. These
services reached four times as many current and potential members versus the prior year. We also
partnered with significant employers to measure inclusion and increase HSA participation at every
income level. It turns out, our one big thing is also doing the right thing for our communities.
Similarly, our investments in new capabilities and
innovative solutions, whether built or acquired,
will remain focused on the objective of serving
HSA members, clients and partners, and on
connecting health and wealth.
To our fellow HealthEquity shareholders and
stakeholders, we say thank you! Whether you
read Greek poetry or not, this Purple hedgehog
is grateful for your support.
Stephen D. Neeleman, M.D.
Founder, Vice Chairman and Director
Jon Kessler
President, Chief Executive Officer
and Director
The Lund Family
Watch their HSA story
4
Copyright   2023 HealthEquity, Inc. All rights reserved.
300
1,00 0
$272.3
$861.7
900
800
$733.6
250
$756.6
700
$236.0
FY21
FY22
$196.5
200
600
$240.8
$532.0
150
500
400
$287.2
300
$118.4
100
200
50
100
0
0
FY19
(millions)
FY20
FY21
FY22
FY23
FY19
(millions)
Revenue
7,984
7,207
5,000
4,000
5,344
$25,000
$22,146
$19,618
$20,000
7,000
6,000
FY23
Adjusted EBITDA
9,000
8,000
FY20
5,782
$14,335
$15,000
$11,541
3,994
$10,000
3,000
2,000
$8,098
$5,000
1,00 0
0
(thousands)
$FY19
FY20
FY21
FY22
FY23
(millions)
FY19
HSAs
16,000
12,781
FY21
FY22
FY23
HSA assets
14,399
14,000
FY20
14,917
12,810
120,000+
12,000
Clients
10,0 00
8,000
200+
6,000
Network Partners
4,566
4,000
#1
2,000
HSA Provider
0
(thousands)
FY19
FY20
FY21
FY22
FY23
Total accounts
5
Copyright   2023 HealthEquity, Inc. All rights reserved.
 • shareholder letter icon 5/12/2023 Letter Continued (Full PDF)
 • stockholder letter icon 5/17/2024 HQY Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon HQY Benford's Law Stock Score = 77


HQY 5/12/2023 Shareholder/Stockholder Letter Transcript:

2023
Drew Gerken
Team member since 2011
A
N
N
U A
L
R
E
P
O
T
R
Karisa Graf
Team member since 2020
Copyright    2022 HealthEquity, Inc. All rights reserved.

To our shareholders
The fox knows many
things, but the hedgehog
knows one big thing.
- Archilochus, The Greek Poet
Fiscal year 2023 was a good year for hedgehogs    
purple ones at that.
At HealthEquity, our    one big thing    is making a difference
for American families by helping them to connect health and
wealth. Always has been.
We do it through the administration of nearly 15 million health
savings and other employer-sponsored benefits accounts
and by supporting 125,000 employers, in partnership
with more than 200 health and retirement plan providers
and benefits administrators nationwide. We believe this
consistent focus, and our commitment to remarkable    Purple   
service, have helped make HealthEquity both the largest and
the best in our business.

In Fiscal 2023 HealthEquity delivered double-digit percentage growth in revenue, adjusted EBITDA,
HSA members and HSA Assets. Team Purple welcomed 971,000 new HSA members, a record
for organic HSA growth for the third consecutive year. Adjusted profit margins widened and GAAP
losses narrowed. Measures of customer delight and team member engagement improved. The team
capitalized on tailwinds, including strong job creation among our clients and normalization of interest
rates. We are truly grateful for the opportunity to celebrate the team   s accomplishments this year.
We continue to focus HealthEquity   s energy and capital on the opportunity to equip Americans
with tools to manage the financial aspects of healthcare. Last year, we expanded Engage 360
and MaxEnroll, digital services that help clients and members understand the benefits of HSAs at
enrollment and take full advantage of incentives their employer may be offering year-round. These
services reached four times as many current and potential members versus the prior year. We also
partnered with significant employers to measure inclusion and increase HSA participation at every
income level. It turns out, our one big thing is also doing the right thing for our communities.
Similarly, our investments in new capabilities and
innovative solutions, whether built or acquired,
will remain focused on the objective of serving
HSA members, clients and partners, and on
connecting health and wealth.
To our fellow HealthEquity shareholders and
stakeholders, we say thank you! Whether you
read Greek poetry or not, this Purple hedgehog
is grateful for your support.
Stephen D. Neeleman, M.D.
Founder, Vice Chairman and Director
Jon Kessler
President, Chief Executive Officer
and Director
The Lund Family
Watch their HSA story
4
Copyright   2023 HealthEquity, Inc. All rights reserved.

300
1,00 0
$272.3
$861.7
900
800
$733.6
250
$756.6
700
$236.0
FY21
FY22
$196.5
200
600
$240.8
$532.0
150
500
400
$287.2
300
$118.4
100
200
50
100
0
0
FY19
(millions)
FY20
FY21
FY22
FY23
FY19
(millions)
Revenue
7,984
7,207
5,000
4,000
5,344
$25,000
$22,146
$19,618
$20,000
7,000
6,000
FY23
Adjusted EBITDA
9,000
8,000
FY20
5,782
$14,335
$15,000
$11,541
3,994
$10,000
3,000
2,000
$8,098
$5,000
1,00 0
0
(thousands)
$FY19
FY20
FY21
FY22
FY23
(millions)
FY19
HSAs
16,000
12,781
FY21
FY22
FY23
HSA assets
14,399
14,000
FY20
14,917
12,810
120,000+
12,000
Clients
10,0 00
8,000
200+
6,000
Network Partners
4,566
4,000
#1
2,000
HSA Provider
0
(thousands)
FY19
FY20
FY21
FY22
FY23
Total accounts
5
Copyright   2023 HealthEquity, Inc. All rights reserved.



shareholder letter icon 5/12/2023 Letter Continued (Full PDF)
 

HQY Stockholder/Shareholder Letter (HEALTHEQUITY, INC.) 5/12/2023 | www.StockholderLetter.com
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