HealthEquity, Inc. (NASDAQ:HQY) Q4 2023 Earnings Call Transcript

That is back in the, the rollover and we didn’t have the same, macro environment of remember Omicron or whatever, Greek letter we were dealing with. So I don’t think we’re like at pat our back on the sales on the back level here. We’re at a place where we’ve got more we can do

Mark Marcon: Thank appreciate. Might have you mind if I just tap for one thing and just talk May maybe just come out on the service level though. Even though we pat on that back for just a second because we did, I think, I can tell you that was great. Go ahead though.

Jon Kessler: Yeah, no, look I think at some level for everything we try and do, the table stakes in our business is that when our clients, particularly our smaller clients, call us up in the middle of January with something going on that we can help them and we can help them quickly and that was a challenge in January of 2020, calendar 2022. And it was, it’s always a little bit of a challenge because everyone called same time, but far less so. And that was both the work of our team, the work of our partners in getting clients loaded and then the work of our operations partners sort of our word for vendor in doing their thing. So and it’s going to help us from a sales perspective already is helping us from a sales perspective as we get into this year.

Steve alluded to, and we, we’ve tried to get away from like quoting RFP staff, but Steve alluded to some of them and like, look, the truth is a lot of that is people are like, okay, you just helped me out of a jam that maybe I created in January, right? I’m going to remember that when it comes time to do my next, RFP for something in February. So like again, it’s obviously a very uncertain time, but it’s, this is one of the reasons why we felt comfortable with the idea that we could do what we thought we would be able to, which was come here in March, raise our guidance a little bit, just as if as if nothing had happened in the last few weeks. And obviously something has happened and yet, we feel like we’re in really good shape here.

Operator: Thank, thank you. Our next question is from Allen Lutz with Bank of America. Please go ahead.

Allen Lutz: Thanks for taking the questions. Jon, you mentioned chat as an area where you’re spending tech dollars, and I think I asked a similar question last quarter, but as we look at the tech and development line, obviously that’s gone up pretty dramatically over the past few years. Can you talk about in fiscal ’24, your expectations, obviously you’re going to be spending on things like chat and other things, but is that going to scale as a percent of revenue in fiscal ’24, or should we expect that to continue to de-lever as a percent of revenue this year? And then can you talk about kind of what’s driving that outside of chat, if anything? Thanks.