HealthEquity, Inc.

Good afternoon, and welcome to the Health Equity fourth quarter 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Richard Putnam. Please go ahead.

Thank you, Gary, and happy first full day of spring to everyone, and welcome to HealthEquity's fourth quarter and fiscal year-end 2023 earnings conference call. My name is Richard Putnam. I do investor relations for HealthEquity, and joining me today, I have John Kessler, who is our president and CEO, Dr. Steve Neelaman, our vice chair and founder of the company, and Tyson Murdock, the company's Executive Vice President and Chief Financial Officer. Before I turn the call over to John, I have two important reminders. First, a press release announcing our financial results for the fourth quarter and fiscal 2023 year end was issued after the market closed this afternoon. The financial results in the press release include the contributions from our wholly owned subsidiaries and accounts that they administer. The press release also includes definitions of certain non-GAAP financial measures that we will reference today. A copy of today's press release, including reconciliations of these non-GAAP measures with comparable GAAP measures, and a recording of the webcast can be found on our investor relations website, which is ir.healthequity.com. Second, our comments and responses to your question today reflect management's view as of today, March 21st, 2023, and will contain forward-looking statements as defined by the SEC. And that includes predictions, expectations, estimates, or other information that might be considered forward-looking. There are many important factors relating to our business, which could affect the forward-looking statements made here today. These forward-looking statements are subject to risk and uncertainties that may cause the actual results to differ materially from statements made here today. We caution against placing undue reliance on these forward-looking statements, and we also encourage you to review the discussion of these factors and other risks that may affect our future results or the market price of our stock, and they are found in our latest annual report on Form 10-K and subsequent periodic reports filed with the SEC. We assume no obligation to revise or update these forward-looking statements in light of new information or future events. At the conclusion of our prepared remarks, as Gary just mentioned, we'll open up the call for Q&A, and we'll turn the time over to him to instruct us on how we do that. And then I have one final announcement before we hear from John. We plan to hold our next Investor Day on July 11th later this year. We hope that you will be able to make plans to join us. Please stay tuned for more details as they come available. John, over to you.

That was fun, that last part. Good afternoon, everyone, and thank you for joining us. I am going to report on key metrics, as always, and then discuss management's view of Fiscal 24 in light of current conditions. Tyson similarly will touch on Q4 and Fiscal 23 before detailing our revised guidance for Fiscal 24. And of course, Steve is here for Q&A. For Fiscal 2023, we are pleased to report double-digit year-over-year growth across revenue, which is plus 14%, adjusted EBITDA, which is plus 15%, HSA members plus 11%, and HSA assets plus 13%. Total accounts grew 4% and muted by CDB underperformance and a change in methodology with no revenue impact. Health equity ended fiscal 23 with nearly 15 million total accounts, including 8 million HSAs, more than 22 billion in HSA assets, nearly a million new HSA opened in the year, record numbers of clients and network partners, strong year-end service, thank you, team, and number one market position. And so as a result of all that, we are able today to raise our outlook for fiscal 24, which Tyson will detail. We expect revenue to again grow double digits, EBITDA growth to accelerate to around 20%, even faster growth in non-GAAP net income, and a return to positive GAAP net income, which is good. Our outlook factors in health equity's inherently strong visibility to future performance, as well as our belief that the current crisis underscores the valuable stability of HSA balances, combining as they do the stickiness of individual small balance accounts and individual tax-advantaged accounts. While U.S. commercial bank deposits fell 0.9% in the first two months of calendar 23, for example, health equities HSA cash grew by 6% in that same period, and that growth has continued through the banking crisis that began on March 8th. Meanwhile, overall job creation continues its strong rebound from pandemic lows, which contributes to new HSA openings. As Tyson will detail, our outlook does reflect current interest rate expectations and a more neutral rate of job creation going forward. And of course, we're closely monitoring the condition of bank and credit union participants in our basic rates program, insurers in our enhanced rates program, bank holders of client-held CDB funds, and holders of health equities operating cash to assure that all continue to meet our strength thresholds. With that, I will turn it over to Tyson to detail the results and guidance. Mr. Murdoch.