Good day, and thank you for standing by, and welcome to HealthEquity first quarter 2023 earnings call. I would now like to hand the conference over to your host today, Richard Putnam. Thank you, Justin. Good afternoon. Welcome to HealthEquity's first fiscal year 2023 earnings conference call. My name is Richard Putnam. I do investor relations here for HealthEquity, and joining me today is Jon Kessler, President and CEO, Dr. Stephen Neeleman, our Vice Chair and founder of the company, Tyson Murdock, the company's Executive Vice President and CFO, and Ted Bloomberg, Executive Vice President and Chief Operating Officer. Before I turn the call over to Jon, I have two important reminders. First, a press release announcing our financial results for the first quarter of fiscal year 2023 was issued after the market closed this afternoon. The financial results in this press release include contributions from our wholly owned subsidiary, WageWorks, and accounts it administers. 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 and a comparable GAAP measure, 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 questions today reflect management's view as of today, June 6, 2022, and will contain forward-looking statements as defined by the SEC, including 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 today. These forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from the 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, as well as our market price of our stock detailed in our latest annual report on Form 10-K, and any 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, we will open up the call for Q&A with the help of our operator. I'll now turn the call over to our CEO, Jon Kessler. Thank you, Richard. Well done as always. Hello, everyone, and thanks for joining us this lovely afternoon. Today, we are announcing a strong start to HealthEquity's fiscal 2023 with results for the first quarter ended April 13th. I will discuss our Q1 results, then I've got my three amigos with me here. Ted will review operations. Tyson will review the financial details of the quarter and provide updated guidance, and Steve will be here for Q&A. I guess that makes me El Guapo. Anyways, everyone has their own El Guapo. Looking first to the five key metrics that drive our business. Revenue grew 12% to $205.7 million versus $184.2 million in the first quarter of last year, which reflects our recent acquisitions and growth in accounts and assets. Adjusted EBITDA of $58.3 million was down 1% from the first quarter last year, which was $59.0 million, as we exited Q4 busy season with higher than normal service staffing levels as that we discussed in March, and lower year-over-year custodial yields versus a year ago. HSA members reached 7.4 million, up 26% year-over-year, including 12% organically, and HealthEquity HSA members grew their assets to a record $20.3 billion at quarter's end, up an even larger 35% from a year ago. Total accounts grew to $14.5 million at quarter's end. As Ted's going to detail, Team Purple started fiscal 2023 with very strong sales results, including a fiscal first quarter record of 159,000 new HSAs, up 38% from 115,000 new HSAs opened in Q1 of last year. HSA investments grew a net $650 million in the quarter, and HSA members grew 36% year-over-year, even with the substantial market headwinds that we're all aware of as members and their employers continued to contribute and invest. The average balance of HSA members is up a healthy 7% year-over-year, notwithstanding the above headwinds. Also in Q1, we welcomed members from Health Savings Administrators, which is the 11th largest or was the 11th largest HSA administrator on Devenir's 2021 lead tables in its year-end market report. Adding, as reported by Devenir, Health Savings Administrators assets to HealthEquity's would place HealthEquity at the top of the league table in terms of both account and asset market share. That's good. As Tyson will detail, custodial yields in Q1 were stronger than previous guidance, driven by our members continuing to place more of their HSA cash in our Enhanced Rates product and by monetary tightening by central banks so far this year to contain inflationary pressures. HealthEquity and our team members are subject to those pressures as well, of course, but we expect the incremental revenue from higher yields will drive increased profit and reduce leverage even as we invest in our platform for future growth. I will now turn the call over to Ted to review operations. Thanks, Jon. I'm happy to report sales are continuing their record-setting pace. You just heard from Jon that sales are up 38% compared to last year's first quarter, driven by organic growth rates and strong performance in the mid-market space. Our partner sales efforts are paying off, and we have been the beneficiary of healthy hiring trends among our clients. The work we've done over the last two years on our engagement messaging has helped us become an ally to our clients as they seek to fight cost pressures while increasing the value and attractiveness of their employee benefits. With peak season behind us, our hardworking Purple Army is wrapping our arms around our members, clients, and partners and developing new ways of servicing them. We're making investments as part of our Commit to Purple program to meet our constituents where they are, such as expanding our chat capabilities, deploying self-service tools that are resonating with our members, and making it easier to start or deepen a relationship with us. In client service, process improvements in self-service are driving down average issue resolution time year over year. On the broker side, we've developed a relationship model for top offices that allows them a single point of contact for anything they might need, a request from brokers that we were able to deliver this quarter. We know that Purple Service is the best salesperson, and we will continue to invest here. Those service improvements have been enabled by our aggressive approach to integrations over the past few years, migrating clients and members from over a dozen platforms to a core of three for HSA, COBRA, and CDB. These efforts helped us achieve $80 million in run rate synergies, allowed us to invest back into the business even during a low interest rate environment, and provided an improved customer experience. The team is now focused on doing the same for our Further acquisition, consolidating teams and platforms to ensure a Purple experience and achieving synergies and cost savings along the way. As mentioned previously, we exited busy season more heavily staffed than usual. The work to address this is now substantially complete. Finally, we're innovating on the product side as well. For example, as employers adjust to the new normal and build return to office programs, we are right there with them promoting a variety of lifestyle accounts and employer-sponsored plans that allow them to attract and retain talent in a competitive job market with unique and innovative offerings. We are well-positioned to offer more of these accounts because we have a long track record of delivering both pre-tax and post-tax benefits in an engaging and simple way. There is much more work to be done, but we are pleased with our progress. A huge thank you to the HealthEquity team for what you have accomplished and all that you will accomplish moving forward. Now, I'll turn it over to Tyson for a closer review of the financials. Thanks, Ted. I will review our first quarter GAAP and non-GAAP financial results. A reconciliation of GAAP measures to non-GAAP measures is found in today's press release. First quarter revenue increased 12%, benefiting from a record fiscal 2022 selling season, recent acquisitions, a better-than-expected rate environment, and as members increased spending. Service revenue increased 2% to $104.3 million, representing 51% of total revenue in the quarter. The increase is primarily attributable to growth in HSAs and the addition of the Further acquisition, partially offset by a decrease in CDB service revenue. Custodial revenue grew 26% to $59.4 million in the first quarter, compared to $47 million in the prior year first quarter, as 28% growth in average HSA cash and 47% growth in average HSA investments more than offset a 10 basis points decline in the annualized yield on HSA cash. HSA asset growth benefited from a strong selling season and multiple HSA portfolio and other acquisitions completed since the first quarter of last year. The annualized interest rate yield was 169 basis points on HSA cash during the first quarter of this year. This yield is a blended rate for all HSA cash during the quarter and represents a better than expected yield. The HSA assets table of today's press release provides additional details. You will note a slight change in our presentation in that we no longer break out HSA cash with and without yield. We have completed all HSA asset migrations related to WageWorks so that all HSA cash is in instruments providing yield. Interchange revenue grew 21% to $42 million, representing 20% of total revenue in the quarter. The interchange revenue increase was primarily due to strong sales in M&A during the past year, driving growth in average total accounts as well as a modest increase in spend per account across our platforms in the quarter. Gross profit was $111.2 million compared to $103.1 million in the first quarter of last year. Gross margin was 54% in the quarter. We previously discussed that service costs included $5 million-$7 million of expense primarily incurred in Q1 due to maintaining the elevated servicing capacity in Q1 in response to record sales volumes, portfolio acquisitions, platform migration activity, and pandemic related attrition and other risks. Operating expenses were $118.5 million or 58% of revenue, including amortization of acquired intangible assets and merger integration expense, which together represented 16% of revenue. Loss from operations was $7.3 million. Net loss for the first quarter was $13.6 million or a loss of $0.16 per share on a GAAP EPS basis, compared to a net loss of $2.6 million or $0.03 per share in the prior year. Our GAAP and non-GAAP net income was $22.7 million for the first quarter this year, compared to $31 million a year ago. Non-GAAP net income per share was $0.27 per share compared to $0.38 per share last year. Adjusted EBITDA for the quarter was $58.3 million, and Adjusted EBITDA margin was 28%. Turning to the balance sheet. As of April 30th, 2022, we had $161 million of cash and cash equivalents, with $929 million of debt outstanding net of issuance costs, with no outstanding amounts drawn on our $1 billion line of credit. Based on where we ended the first quarter and our current view of benefits and the economic environment, we are providing the following revision to our guidance for fiscal 2023. Revenue for fiscal 2023 to range between $827 million and $837 million. Non-GAAP net income to be between $103 million and $111 million, resulting in non-GAAP diluted net income between $1.23 and $1.32 per share based upon an estimated 84 million shares outstanding for the year. Adjusted EBITDA to be between $249 million and $259 million. Today's guidance includes our most recent estimate of service, custodial, and interchange revenue based on results to date. Our guidance assumes a yield on HSA cash of approximately 170 basis points and includes only the actions the Fed has taken to date and excludes any additional broadly anticipated Fed actions for the remainder of this year. Changes in rates before the end of our fiscal year will only benefit the HSA cash that is in short-term floating rate vehicles in fiscal 2023, but may have a much greater impact on fiscal 2024 and beyond as we roll over fixed rate contracts and place new HSA cash coming in from open enrollment at the end of the year. While we don't give quarterly guidance, looking forward to the second quarter, we want to remind you that the second quarter last year included non-recurring revenue items related to pandemic relief legislation. First, we will not have COBRA subsidy work in Q2 this year. Second, we are not expecting Q2 interchange revenue growth comparable to last year when our members were using up rollover FSA dollars in advance of the expiration of pandemic relief. We continue to be conservative in our commuter outlook with limited return to work modeled into our guidance. We have seen three straight quarters of modest increases in commuter accounts, but remain cautious about modeling in an aggressive rebound. Our guidance today also includes the impact of inflation on our service costs, an increase in expense for the resumption of travel by our sales team, and a modest inflationary increase in engineering and security costs. The outlook for fiscal 2023 assumes a projected statutory income tax rate of approximately 25% and a diluted share count of $84 million. As we have done in recent reporting periods, our full-year guidance includes a detailed reconciliation of GAAP to the non-GAAP metrics provided in the earnings release, and a definition of all such items is included at the end of the earnings release. In addition, while the amortization of acquired intangibles is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is not excluded. With that, I'll turn the call back over to Jon for some closing remarks. Thank you, Tyson. Well done. HealthEquity finds itself in a, I think, a far better position today than it did a few quarters ago, and that's a function of the hard work of the team as well as, you know, previous interest rate, pandemic, and integration headwinds starting to become tailwinds for the business. As I watch CNBC or whatever, the current macro environment might be forcing other technology-driven growth companies to scale back. For HealthEquity and us and this team, it really gives us the opportunity to lean in, and that's what we're gonna do. With that, let's open the call up to questions. Operator? Thank you. As a reminder, to ask a question, you'll need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by. We compiled a Q&A roster. Our first question comes from Anne Samuel from JPMorgan. Your line is now open. Hi, good afternoon, guys. Congrats on a great quarter. Thank you. I was hoping maybe you could touch a little bit on the Enhanced Rates product. Was wondering how much of the higher yield was just due to better penetration there, and then maybe what are some of the drivers of that penetration of enhanced yields, coming in better than you expected? I'm gonna just start with Tyson there on commentary on the higher yields we saw in the quarter and then turn to Ted for some commentary on the movement on Enhanced Rates. Yeah. Hi, Anne. The higher yields really relate to the variable component of the HSA cash that we have. When you think about the Fed increases since we last reported of about 50 basis points, that's really the increase on top of just the goodness we saw for Q1, and that's really what that is. From an enhanced rate perspective, you know, I'll turn that over to Ted, and he can talk a little bit about penetration there. Ted? Sure. Hi, Anne. We've been, you know, undergoing a series of different efforts in order to educate our members and clients and other constituents about the availability of the Enhanced Rates program, and all of those are conspiring to put us in pretty good shape to hit that year-end 20% target for cash and Enhanced Rates. Some of that's member engagement on the website, in the app, when you call us. Some of it is how we talk to clients and partners about how they can offer it, and a lot of it is new sales where the Enhanced Rates offering is the default. Those are sort of the three big tools that we're using in order to try to achieve that goal of 20% of our cash in Enhanced Rates by the end of the year. That's really helpful. Thank you. Jon, you know, you commented a little bit on the macro environment. Things have obviously changed somewhat since your last call when you talked about, you know, labor shortages driving HSA adoption. I know you're not planning on making any changes at your company, but are you seeing anything, you know, maybe within your customers, around adoption? Thanks. Yeah. I mean, in the first quarter, we saw very strong hiring, and that was a driver of our HSA sales. You know, I don't have a crystal ball, but I can read the same papers and stuff that you do, as Ted says I want to say. With efforts to slow the pace of the economy, you know, we obviously all can look at that and decide for ourselves what it means. I think for HealthEquity, there are a couple of points. The first is that you know, HSAs and CDBs are a win-win. The more employees contribute to these products, employees save money and our clients save money, because those amounts that are contributed aren't subject to payroll tax. Then of course, in the case of HSAs, it's, you know, the products themselves are part of a broader effort to keep costs under control. If, for example, we have a recession that focuses employers and employees on cost cutting, we think we have a great tool. You know, within that context, you know, one of the things that we think is relevant is that because our revenues are to a significant degree a function of our custodial yields and the like, I mean, you can kind of think about that as a form of pricing power. That is to say, you know, those and our interchange, you know, aren't really determined by the need to, you know, raise rates or renegotiate with clients or the like. You know, that's, I think, a pretty helpful factor for us in, you know, to the extent that we were to go into a period that would be both declining growth rates but persistent inflation. That seems like a good situation. Those are the things we think about for the business. Very helpful. Thanks, guys. Thank you. Thanks again. Thank you. Our next question comes from Greg Peters from Raymond James. Your line is now open. Hey, Greg. Good afternoon. The three amigos and El Guapo. Love the reference. I guess in the spirit of that reference, I'd like to continue to focus on the plethora of net new HSAs. You just commented on the market conditions. I was wondering if you could talk about the other drivers of net new HSAs, which would be retention, and then what the competitors that you're in the market competing against, how they're performing relative to you, 'cause it seems like you might be picking up market share? Ted, you wanna? Sure. I'll start and then you jump in. You know, Greg, I think I alluded to it briefly in my comments. We're definitely the beneficiary of robust hiring by our clients in Q1, which really helped. You know, being the market leader per Devenir, we probably have the biggest sales to catch that wind. You know, we've talked in the past about how, you know, one of the differentiators for HealthEquity is our distribution network, our tremendous partnerships with health plans, the health plan relationships we've acquired when we bought Further and the tremendous work that the team has done to sort of build closer partnerships with those distribution partners, health plans and others. We think, you know, gives us a durable advantage in driving HSAs, and we've seen the results of that. You know, kudos to the teams that manage those relationships. We've gotten smarter at where to focus and, you know, kind of how to fish where the fish are, and kudos to our sales leadership team for driving those efforts. We feel like we're spending time where we can win. That's, you know, I alluded in my comments to the middle market, which is one place where we've really seen some growth. You know, I don't have a ton to say about, Jon Kessler, maybe you do, about competitors this early in the year. It's just a little bit hard for us to tell. You know, just like you, we sort of leverage Devenir to get a sense of, you know, an analytical sense of how our competitors are doing. Anecdotally, our strong competitors remain our strong competitors. Yeah. I don't have much to add to that other than I would be remiss if I didn't throw a tiny bit of cold water in the sense that we don't expect that we're going to grow HSA sales for the year. While we don't give guidance on this topic, it's not within our range of expectations to grow them 38% for the full year relative to what was a fantastic year last year. You know, hiring was clearly a big factor. We had some folks that were sort of late breakers, particularly from our partners, as we got new partners up and rolling and kind of working some of the kinks out, and so forth. We would not want you to go crazy, and we're not gonna go crazy on projecting that number out to the full year or to subsequent years. It's a great way to start the year. Okay. Well, message delivered. We won't go crazy. Is it the second question or the follow-up question, would be in your comments, I think, Ted, you said it, but you were talking about the service revenue results or maybe I'm sorry, maybe it was Tyson. You're talking about the service revenue was affected in part by a decrease in CDB service revenue. I was wondering if you could unpack what happened with service revenue in the first quarter, not only from an absolute number perspective, but from a margin perspective. Yeah. Tyson, you wanna do this one? I do, yeah. Yeah, good question, Greg. Thanks. I mean, one of the things to point out immediately is that HSA service revenue grew relative to the growth we're just talking about, so that was an area of alignment. That we expected. Just really quick on the margin side, I did talk about the margin headwind again that we had in Q1 that will maybe flow over a little bit into Q2. There's kind of that impeding that year-on-year view as we just had a huge year coming out of that January timeframe. The real point of your question is on this, on the CDB part, and again, this is just a factor of what we talked about when we talked about revenue before. COBRA uptake is lower due to fewer people, you know, in the pool and less uptake, right? FSA HRA pricing, you know, could be a little bit down just relative to all the migrations and things that we've done. You know, those would be the main reasons why that's occurring. A lot of that through getting through integration has now been stabilized, and we're getting a lot better data and views off the business. Really working, and making a lot of progress in the areas of how we think about pricing and so forth. Hey, I can't help myself, but just as a follow-up on that point, Tyson, you mentioned the second quarter guidance, you don't have the benefit from the legislation last year. That was about $10 million of additional COBRA revenue. Is that correct? Yeah, good point. I mean, that was the main quarter by far, and that we'd call that out as $10 million. There's maybe a little bit in the following quarter as well on either side, and most of the cost is in there too. That's a great point for people to make sure that they think about when they're modeling out our Q2. Just, I can't help myself. The margin on that $10 million, is it consistent with the reported quarter average for the second quarter, or was there something unusual on that? I can probably take this. Well, go ahead, Tyson. Well, no, I was just gonna say we haven't necessarily ever talked about that. I think, Jon, well, I don't know what you were gonna say, but I don't necessarily have a comment on how to think about that. That's what I was gonna say. I'm trying to save Tyson's voice. He's at home not feeling so good, so we're trying to save his voice a little bit. Thank you. Thanks, Greg. Yep. You had a plethora of questions. Indeed. Thank you. Well done. Our next question comes from George Hill from Deutsche Bank. Your line is now open. I guess I have to make the plethora of piñatas reference now. I guess, Jon, I'd just kind of start off with anything that you guys would start to call out as we're starting to see the earliest parts of the 2023 selling season. I guess anything that should look different from the last two years or so, given kind of how different the last two years looked? I think, you know, probably the biggest thing that I would note is it's a little bit of a continuation from last year, and then I'll ask Steve and Ted if they have commentary, which was, you know, last year we had with regard to new logos and the like, which I think is where your question is. You know, the kind of market that is below the largest enterprises but bigger than small business, which comes mostly from our partners, was very strong. One of the factors that we mentioned, I think we mentioned it last quarter or certainly somewhere between now and then and now, that I think has contributed to that strength pulling through into this year, has been the demand for HSAs from job seekers. You know, people who are in, who have had an HSA, there's a lot of movement across companies. You know, there's a lot of people in the benefits universe who still think about, like, the only way to use an HSA in a qualified plan or an HSA qualified plan is as like a, you know, a kind of a lower cost health plan as opposed to you can create this very flexible instrument, so you can create, you know, a very rich benefit. Of course, it's a little bit kind of to me, it reminds me of what happened in the early years of 401(k), where the benefits world was like, well, people like pensions better than 401(k)s, except that as people got comfortable with how to use a 401(k), if that wasn't an option for them, they thought that was strange. That's probably the one trend I would highlight that I've noticed as we've walked through it. Stephen Neeleman? Yeah. I mean, in addition to what John said, I think I've been very impressed with the Further team, for example. That's a good point. You know, these folks, you know, we knew them for a long time. I think it was probably 15 years ago, we started talking to the team up there in Minnesota, and now they're our team, and we love them. You know, for them to have done the work they've done over the years with I think about 10 Blue Cross partners, and we're actually, you know, gonna be spending some time with them to bring, you know, fully integrate them. We haven't, you know, we've met some of them, obviously by Zoom, but now it's time to kinda get to know them, maybe at baseball game, maybe not, who knows. We're gonna spend some time with them and just to see the work they've done is really, really impressive. I mean, I think because, you know, we started at HealthEquity now almost 20 years ago, working with health plans is one of our key distribution channels. You know, we kind of thought we were the only people that knew how to work with health plans, unless we were owned by one. Now they know how to work with health plans. We found that these folks really do know what they're doing. That's been, I think, another great addition to our team as we look forward to growing. Yeah. Jon, maybe a quick follow-up, and this is gonna be a little bit of a meandering follow-up. McKinsey had a survey out last week all about employer-sponsored health benefits, and one of the few data points in the report that kinda jumps out as unusual is over the last few years, you've actually seen tremendous growth in customer satisfaction of HDHPs, of which HSAs play an important role. I guess the question I'm trying to get to is, like, can you talk about the HSA as the tip of the spear, as I think, when you think of an HDHP as the things that a beneficiary is probably gonna interact with the most, I would think would be their HSA. I think you've got the answer. Yeah. Well, I'm trying to think of it. Yeah, I mean, I think. Yeah. Like increasing penetration into employer sponsors that have already selected the HDHP plan. Like, what can you do to drive the percentage of people inside the employer sponsor who wanna choose. I guess that, like, I'm thinking a lot of yeah. Maybe just to say, first of all, I think you've got a big piece of the answer in that. Remember, for most individuals who are enrolled in an HSA-qualified plan, financially speaking, their primary interaction with that plan is the HSA. Meaning to say, you know, they're not gonna hit their deductible in a given year. Right. But for people who haven't interacted, you know, there's a real opportunity to use the positive experience and help folks grow. Maybe you can, Ted, talk about what we're doing there. Yeah. Thanks, Jon. I'll be brief. I alluded to this perhaps in too nuanced a fashion in my comments about sort of the engagement capability that we've built. That's really code for communication and education, right? Multi-channel, Omni-channel, right? And you know, we've spent the last two or three years really investing in helping employers help their employees understand this benefit. You know, as Jon pointed out, the early days of 401(k), no one knew what it was. It's still, we're still pretty you know, we're still kind of in those early innings. Whether you call us on the phone, whether you interact with us through the app, whether you interact with us through the desktop, if you read the materials we send you, we're always talking about kind of the next best thing for you to be doing. Whether it's engaging in an HSA, if you're not, whether it's saving more if you're not saving at all, whether it's investing if you're saving a lot. We've dedicated real resources to that. You know, because what we found is that our clients want us to partner with them on that. We're having a lot of success there, even though we still think it's pretty early days. We agree with you that the opportunity to more deeply penetrate HSA participation and then how folks use the accounts is a real opportunity for us, especially as we have so many clients that offer it. Okay. That wasn't a highly coherent question, but I appreciate the direction in which you guys took it. Thank you. Thank you, sir. Thank you. Our next question comes from Stephanie Davis from SVB Securities. Your line is now open. Hey, guys. Thank you for taking my question, and congrats on the solidified return to beating and raising. Thank you. Missed this quite a bit. When I think about the Health Savings Administrators acquisition, how should we think about that $1.3 billion AUM getting layered in? Is it gonna be a quick switchover, or is there a longer process to unlock these custodial revenues, given they're the largest part of the assets revenue contribution? Yeah. I think the important thing to understand about the HSAA, as we sometimes refer to it, HSA Administrators assets, is that the vast majority of them, and I'm talking about 85%-90% are invested. What we liked about HSA Administrators' capabilities and members of the team was their knowledge and skill at working, for example, within the individual market, where, you know, it's still a small market, but where, you know, as you might imagine, they're much more focused on investing than the average employee in the group market and so forth. Those assets, to directly answer your question, you know, those assets were moved over in Q1, and they are included in the quarter end totals, of course. The investment, thanks to the solid work of our team, as well as our partners from HSAA, and very candidly our partners from the intermediary, you know, investment custodians and managers. The bulk of those funds were. In fact, virtually all of those funds were moved over in time. That is a source of growth on the investment side and is contributing to our, now to our income from investing as well as some service fee income. Taking that one level further, what level of custodial revenue contribution are you assuming from the acquisition this year? Could we see a little bit of an uptick as it gets layered into some of your newer contracts? I guess, Stephanie, if I don't understand your question exactly, maybe could you repeat it one more time? 'Cause maybe I'll get it the second time. For the HSAA deal, what level of custodial revenue contribution are you assuming for the year? I see. Are we assuming a tailwind then that could happen for next year to further add to this? Since the bulk of the revenue in HSAA is invested, meaning it's in mutual funds and the like. Mm-hmm. Actually, what we've done there is, if I recall, and it works out to about the same thing, but we've maintained all of HSAA's pricing. Got it. I'm looking at Ted to make sure that's right. The result is that the custodial yields from those assets will be similar to our custodial yields overall, meaning, you know, kind of in that roughly 30 basis points neighborhood, and that's reflected in our guidance. Okay. It's not like they get any sort of better rates or something like that 'cause of the difference. No. There is a small, you know, it's maybe $100 and some odd million that is in HSA cash and the uptake of Enhanced Rates among that group. It was very solid in the kinda 90% range and again, our guidance does reflect that those assets have been deployed. All right. Fantastic. Thank you, guys. Thanks, Stephanie. Thank you. Our next question comes from Glen Santangelo from Jefferies. Your line is now open. Yeah. Thanks for taking my questions. I just had a couple of quick rate questions. You know, as it relates to the guidance for the balance of the year, obviously there's no future rate increases in that guidance. Is it still fair to say that there's about $1 billion in cash that are tied to short-term sort of variable rates, so we can think about, you know, do our own math in terms of the potential impact of any future rate increases on the guidance? Yep. That's right? Okay, perfect. Yep. Maybe if I could just ask a little bit more of a difficult question. You know, I know you don't want to look out to fiscal 2024 at this point, but you know, everybody's noticing, right, obviously, the five-year and the ten-year treasuries are just above 3%. We're starting to see five-year CD rates start to breach 3%. Could you know, without sort of speculating out which way rates go, right, if could you just do a quick look back to, you know, January of 2020 and remind us where those placement rates are so we can make an assumption that if rates did not move from right here and you were able to reinvest at these sort of placement rates, like what sort of lift we'd get on that third of the portfolio so we can start to think about, you know, do our own assumptions and think about fiscal 2024? Yeah. A way to think about it is that our average placement rates for deposits going back to the period if I look at, like, fiscal 2020, which is effectively calendar 2019 that ended in January 2020. We reported an average custodial yield of around 249 basis points, give or take a basis point. That since that was up from the prior year, it reflected placement rates that were above that at the time. I think, you know, while we don't give out individual placement rates, as you know, I mean, that should suggest that at that point in time, which kind of represented the, I think, the closest we got to rate normalization in the last cycle, you know, we were obviously placing individual deposits above that rate. This time around, you have the Enhanced Rates product there. As we've discussed before, Enhanced Rates does, as its name implies, earn a premium for our members and also a premium for us in excess of that. You might expect this time around, as things kind of move along, to even see a little bit of an increase on, you know, relative to what we were seeing at the end of calendar 2019, you know, and so forth. That's kind of order of, I guess not order of magnitude, but directionally what you would expect, and as well as the baseline you might look at, which would be, you know, some number that's kind of anchored to our fiscal 2020 reported custodial yield would be a way to look at it. Okay. Perfect. That's helpful. You wanna add anything to that, Tyson, or correct me or whatever? Nope, that was good. Okay. Jon, maybe I just wanted to quickly ask about the FSA business in terms of are you seeing any normalization in terms of the seasonal spending patterns there? I know, you know, with some of the government regulations sort of changing, we saw some abnormal behavior. Is that starting to normalize seasonally now? Yeah. This is an important question in terms of getting the quarters right, and Tyson referenced it in his prepared remarks. Q1 FSA spend was pretty much what we would expect, which was nice to see, versus the past several quarters of, you know, either much higher or much lower than we expected. Thus far, the same is, you know, frankly true in Q2. Importantly, I guess the answer is yes, we see things looking much more normal in terms of spend per account and that kind of thing for FSAs. I think the other point to mention there, and I think you've got this, but it's worth noting that you know wanna make sure that our listeners do you know as you model year-over-year the second quarter as Tyson suggests we won't have the benefit of the incremental spend that occurred in Q2 of fiscal 2022 that was people basically running up against the federal government's kind of end of the rollover the excess rollover period that was part of the earlier part of the pandemic emergency. You know we saw extra spend in that quarter as a result. Effectively, that ended up being some of it pulled forward from Q3. You know, a lot of it was just people had the money in their accounts, and they spent it. You know, that's something to think about on a quarter-to-quarter basis. Big picture, so what we expect to see this year is much more normal as opposed to that, you know, bulge that you saw in Q2 of last year. Okay. Very helpful. Thank you. Yes, sir. Thanks, Gl. Glen is the invisible sorts. Thank you. Our next question comes from Stan Berenshteyn from Wells Fargo. Your line is now open. Hi. Thank you for taking my questions. Hey, Stan. Maybe first, a clarification question on something you mentioned in the prepared remarks regarding the Further acquisition. I think you called out a potential source of synergies. Are there any dollar figures you're targeting there that you can quantify, maybe time to recognize those savings? Yeah. We announced at the time of the transaction that we thought we would see about $15 million in synergies. We also said at the time that they would be backloaded over the course of a couple years. In fact, that's the case, that is to say, our fiscal 2023 initial guidance and the current revised guidance don't reflect much in the way of Further synergies. The reason for that is that the bulk of these synergies really come from the pace or the eventual bringing together of the Further operating platform and the HealthEquity operating platform. We're taking that slowly, really out of respect for two factors. One is that our health plan partner clients on the Further side, there's, you know, we wanna make sure that they know exactly what we're doing, and that there's some trust built there, and we have the ability to gather from them some things that are important to them that we can incorporate in that process. Secondly, Further, as we've discussed before, you know, has some technical capabilities that we think are extremely useful, particularly as we begin to embed, as we talked about earlier in the year, as we embed more features and more element or embed our product, I should say, you know, more deeply into our partners' products and vice versa. You know, there are other folks who sell, you know, white label, and that's all nice. You know, really, where the real value is not just in a label, it's in, you know, meeting the consumer when it's relevant, and that's done by embedding the product more deeply. We are trying to, you know, as we've tried to bring some of those capabilities over a little more quickly, and you've seen us talk a little bit about products on that. From a pure synergy perspective, you won't see that in fiscal 2023. You'll see it out in 2024 and into 2025. I think I've answered both the order of magnitude as well as the time. You did. Thank you. Maybe one quick follow-up, maybe just revisiting the sales pipeline. Past couple of years, obviously, the story has been about multi-product sales, you know, vendor consolidation trends. Just more broadly, it seems to me like benefit managers are becoming a bit more cost sensitive. I'm just curious, is this something you're seeing, on your end, with your sales force? To the extent that you are seeing it, you know, how are you navigating this? Any impact to the win rate would be helpful. Yeah. I'll offer a couple thoughts, and then, Ted, I'll see if you wanna add anything. First point is, you know, from this perspective, I think the first quarter was, in some ways, really good news for us. You know, our largest product is, of course, HSA, and it's not only our largest, but our, you know, it's our growth engine. When you look at the portion of, I mean, the good, you know, of course, the bulk of HSA revenues don't come from fees paid by clients or members in that direct way that I think you're asking. But even among those that do, if you look on a year-over-year basis, right? Fees are essentially equal. In fact, they're up just a smidge, which is a departure from prior years, and that reflects both being able to hold price where it's appropriate, but also, you know, being more efficient about where we should be charging fees and where we shouldn't. That's, I think, the first point to make, and it's a very important one. When you look beyond that, I think generally our approach to navigating this point is that the bigger source of savings for benefits managers in what we do is in the products itself. It's not in our fees, right? It's in enhanced enrollment, in more contributions, in people using all of the other things that we integrate with more effectively because our clients are working with us and with our integrated partners, rather than with a more generic service that might be offered by a firm that's just in the retirement space or just in the benefits admin, you know, payroll processing space or just a bank. That discussion tends to, you know, that tends to dominate. You know, of course, we'll be as aggressive as we need to be with regard to fees and so forth, but I think that's the heart of the discussion, is that the real opportunity for savings is in the product itself, not in the, you know, fees you pay us. Ted, you wanna add to that at all? Yeah. The only thing I might add is that through our health plan distribution, the cost of the services that we provide is a relatively modest component of the total cost of the decision that's being made in choosing a healthcare provider. Not only that, choosing a high deductible health plan or finding ways to have more of your teammates choose that health plan is actually a cost savings opportunity, regardless of what the HSA fees are, to Jon's point. I think that our distribution helps insulate us a little bit from cost pressures. I would also say it, you know, while, yes, there's always gonna be, you know, cost questions or cost pressures or competitive cost environment, you know, I think that that the The benefit of offering the bundle that was our primary hypothesis when we bought WageWorks three years ago has kind of been proven out probably in excess of our expectations. People do want to consume multiple services. Not only that, even if someone's consuming multiple services, the broker, the consultant, the health plan who's selling it wants to send you multiple pieces of business, even if each individual piece is not the whole bundle. I think that's, you know, having the bundle and being able to offer it in a thoughtful way is probably a trend that's stronger than, you know, a nickel or a dime here and there on a product price. Got it. Thank you. Thanks, Stanley. Thank you. Our next question comes from Sandy Draper from Guggenheim. Your line is now open. Thanks very much, and good afternoon. As you can see, I haven't changed my ability to be very slow on hitting star one, so I'm always late in the queue. Most of my questions had been asked, but maybe just a quick clarification. Not clarification. It's confirmed. It sounds like for the Health Savings Administrators, the bulk of those assets were more towards investments. Just wanted to confirm and less on the cash. Is that correct interpretation what you were saying? Yes. Okay. Got it. That leads into my second. As I think about triangulating where cash balances are, where spending patterns are, thinking about an inflationary environment, have you seen any indication that, and I don't know how you would parse this out, are people saying, "Hey, for the past two or three years, I was saving a lot in my HSA, wasn't paying myself back, maybe 'cause of what if I'm going to the doctor. But now I'm going back to the doctor, and gas is $5 a gallon, other things. So I need to pay myself back." Are you seeing any signs of while people are still contributing, they're actually gonna start taking more money out because of inflationary pressures? Just trying to think about how that sort of plays out and how that may impact cash balances with the obvious offset of, you know, potentially stronger interchange revenue. Yeah. I mean, we haven't, but the logic of what you're saying, you know, we didn't in the first quarter, but I think the logic of what you're saying is pretty sound. You know, generically, the immediate impact of recession is higher savings rates, right? The immediate impact of inflation is people spend, right? That's the way, you know, it's a little bit counterintuitive except it's worked over and over and over and over and over again, and it's in every macro textbook. I would expect that some version of what you're describing ends up being true, and that as a result, for example, you know, may be the case that we won't see on net as healthy average cash balance growth as we did last year, but maybe we'll see a little healthier spend. You know, of course, we would, over the long term, rather have the balance growth. But I think there's. I guess I, you know, again, without having seen it in the data yet, I can't, you know, say do much other than guess, but what you're saying is quite logical. As you kind of try to triangulate between, you know, the sort of the triangulation around investments, cash, and also between balances and interchange, I think it's a worthwhile factor relative to the last few years. Great. Thanks. That's my question. Appreciate it, Jon. That's a good one. That's a good one for late in the queue. Thank you. Our next question comes from Mark Marcon from Baird. Your line is now open. Hey, Mark. Good. Good to talk to you. Just wondering, can you just talk a little bit more about the enhanced yield product, just in terms of what sort of premium you're getting there. In addition to that, you know, with the Fed basically pulling back in terms of going from quantitative easing to tightening, what if you were placing funds today, like, how much of a premium would you get now with your regular partners, in terms of on top of what jumbo three t o five year CDs are getting? Sure. Well, why don't I try to answer those in reverse. Because the deposit rates sort of are a useful baseline. So on the deposit side, we've commented before about the range of premium to current average rates. And that range is sort of 75 basis points on the low end, you know, 125 on the high. But of course, the other important caveat there is that premium is higher when rates are rising and when rate expectations are high, and it is lower when rates are falling and/or rate expectations are for Further falls. As you might imagine, the spread at the moment if we were placing funds between where we feel we could place and what current average three and five CDs are trading or at are pretty high in terms of the historical spread. Not dissimilar to an earlier question to kind of what the middle of calendar 2019 looked like. You know, reasonable question as to whether you know how much of the Fed's activity and other activity you know is now kind of baked into all of those expectations, I don't know the answer to that. I don't think anyone does. You know, that gives you a feel for it on the deposit side. Generally, the commentary we've made on the Enhanced Rates product is that it tends to be, you know, about a 50-75 basis point premium relative to where we're able to place cash. That's, you know, we only have, in terms of this formula and so forth, we're, you know, we've only been dealing with it for, you know, I guess, almost a year now. Nonetheless, you know, still a little bit early on that's sort of held pretty well. You know, you do make one point that I think is very important, and that is that while one might reasonably take the view that banks and the like have factored with their own estimate of where the Fed ends up and where it stops into the rates they're willing to pay on cash, you know, quantitative tightening, that is to say, the reduction side of the Fed's balance sheet is still a little bit, you know, somewhat out there in terms of its impacts. The reason for that sort of boils down to the fact that it's not fully clear to anyone what the true impact will be on the yields on Treasuries and then the pricing on corporate debt and the like, so 'cause no one's ever done it before. You know, we'll see how that goes. Look, I think if I step back from all of that, you know, as we've said before on this call, Mark, there is a large amount of the earnings power of the business that has been missing from the business for a year or two, and certainly is still missing in the current year relative to history. As that comes back, you know, that will be valuable to the business in terms not only of incremental profits, but it will also, you know, give us, you know, incremental opportunity to invest and so forth in addition to sending a significant chunk of that to the bottom line. Great. Then a couple of other questions. One would basically be, and they're kind of on, you know, opposite ends of the spectrum. On the one hand, you know, how should we think about, you know, wage inflation as it relates to, you know, Team Purple? All of your folks have lots of opportunities. So just thinking like, how should we as we start thinking about fiscal 2024 and, you know, puts and takes, you know, how should we think about the servicing costs that you're gonna incur? On the flip side, you know, the benefits from scale that you're accruing here in terms of, you know, the Health Savings Administrators acquisition, the HSA assets, you know, Further being integrated to a greater extent, the size and scale that you just have naturally, you know, even in terms of marketing presence. I mean, you've kind of just run through the nice list of if your question had been, how do we think about margin in the out years, right? Which it kind of was? Yep. You've just run through the puts and takes, and so I'll repeat them back, but in the order, you know, that I think it's worth considering. Let's start with the takes, right? You've got, as you say, you know, wages are going to rise and they just are. You know, we're trying to keep up as best we can and take care of our team. Our assumption is in the out years, and you can make your own, but our assumption is that it's not like this is gonna be a one-and-done situation. I think, again, secondly on takes is that with high. Is that with higher custodial yields on the put side, some of that comes back at you from service fee pressure. Feel really good about what we were able to do on the HSA side, which is where those are in the first quarter. You know, we'll see how it goes over time. Then lastly, I think important on the take side below the EBITDA line, but nonetheless, as you know, if you look at our reporting, we've increased CapEx and of course their stock comp, and that rolls through over the course of the next few years. Those are the takes on margin, right? The puts, as you say, are custodial yields. The bundle and cross-selling, the growth of the underlying base, both from organic growth as well as from M&A that has brings all that scale. The real payoff in terms of winding down integration expenses, which again is below the EBITDA line, but nonetheless is real cash. The tech-driven efficiency and service delivery that we've started to see as a result of our investments in that area, but expect to continue. Then, you know, whatever happens with commuter and, you know, if I'm given the luxury of thinking about it over multiple years, I can be a little bit more optimistic than, you know, whereas I'm obviously, you know, Tyson is being extremely cautious, I think, with regard to the current year. You know, all of that put together, obviously, we think it's reasonable to take the view that there's plenty of opportunity to grow margin in the business, as well as to continue to invest to grow top line in the business. That seems pretty good. That's great. Just the last one, just with regards to Further, lots of things that you're doing. Just how are you being perceived by the clients now, you know, within those Blues plans, just in terms of partnering with them, being able to expand geographically and to really leverage this? We're still in early days, but how are you thinking about that unfolding over the next two to three years? I wish you were asking next quarter because we're having our summit with these clients, which has cleverly been titled Blueprints. I'm sure that's not the first time that pun's been used. It's in Chicago next month, which is the home of the blueprint, and not where it was invented technically, but it's true home, Chicago School of Architecture. Steve, you can maybe give. Since you've probably participated more than any of the rest of us on this call in discussions with, particularly with the Further partners, maybe you could talk a little where you think we are. Happy to. Mark, you know, I think it is still pretty early, but, you know, generally, it's been very positive. I'll tell you one little kind of cute story. The Further team and our team are now our team, I can't say that anymore, sorry, Jon. Put $1 in the jar. But the ou r collective team reported back. You know, they met with one of our Blues plans that happened to do business with both HealthEquity prior to the acquisition, and now HealthEquity again because Further had developed a relationship with them. They said, "Boy, this works out perfect." They said, "We loved HealthEquity for what they did. We loved what we received from Further, and now we love them even more." You know, so the point is that I think that now with this dominant footprint of, you know, well over 30 Blues plans that we're working with, you know, we do have scale. These folks, they, you know, they work pretty well together. They go to conferences together at the Blue Cross Blue Shield Association, actually happens to be headquartered also in Chicago. Chicago. Which, I don't know. I thought they did the rivers green. Maybe they should start doing them blue out there. Yeah, maybe the blue river. [audio distortion] I just think the short of it is, Mark, is that, you know, we're really learning how to work with these types of plans. Many of the people that used to work at Further now work at HealthEquity. Previously even worked at Blues of Minnesota. They know how to meet their needs, and that was kind of their model. Look, we want to help these Blues plans grow. Now, HealthEquity has a lot more than Blues plans too. We've got some fantastic vertically integrated systems all over the country that are owned by hospital systems, and we're able to reach into them as well. It's not just about Blue, it's about meeting any of the partners or clients where they are and providing a unique and sophisticated solution for them so that they can compete in their markets. That's the short of it, I think. We just, you know, we started with one health plan back in 2003. I still remember that time, and now we're, you know, over 100. It's pretty exciting. That's great. I'll be sure to ask the question again next quarter. You got it. Thank you. Our next question comes from Allen Lutz from Bank of America. Your line is now open. Hi, Allen. Hey, everyone. Thanks for taking the questions. I guess, on interchange, you know, that came in really strong in the quarter. I guess looking back at the model kind of pre-COVID, pre-WageWorks, the first fiscal quarter is sort of the high-water mark of the year for interchange. I guess question one, is that what you're you know, that's sort of what's embedded in the guide for this year? Then point two, in that $42 million, is that healthcare spending back to normal, or is there any reason to be optimistic that healthcare spend increases over the course of the year? Tyson, you wanna hit this one? Yeah. Yeah. Alan, thanks for the question. I think you on that exact thing, you already answered it basically, which is that it is front-end loaded. It's a lot of it is, you know, biggest quarter's gonna be kinda Q4 rolling out into Q1 a little bit. Then, you know, sort of the use it or lose it on the FSA side. HSA is a little bit more stable, but I would think about it that way. If you think about kind of the softer months or quarters, they're gonna be sort of end of summer, fall timeframe with regards to people sort of spent through some things and or those that type of timing. Then, John, I guess hit the second one. Well, I was just gonna say also don't forget that if you're doing year-over-year, you know, that last year had these unique features that really blew up Q2. Things as I said earlier have at least at the moment appear pretty normal. Meaning normal, that is, if you look at spend per account, all those kinds of things, how much is left in accounts, etc., you know, things are looking a lot more like the graphs that we would've seen immediately prior to the pandemic than like anything else. As I think I commented at the time of our initial fiscal 2023 guidance, you know, we were looking forward to a year of not having surprises on this topic. So far so good. Great. You know, I think investors kinda understand the upside optionality on rates, but I guess kind of taking kind of the other direction there, you know, there's been some concerns about employment trends in the very recent months. I guess, is there anything that you're seeing within your book of business regarding employment trends, maybe active accounts or anything that can kind of point to a slowdown in the economic environment? I guess we're just trying to understand kind of if we do go into a slowdown in hiring, you know, the puts and takes of the model from here. Thanks. I mean, the short answer is that we haven't seen anything along those lines in terms of, you know, active account type stuff. I think that statement is actually perfectly consistent with the national data, which if you actually look at it, you know, the first four months of the year and then also even May were some of the steepest increases in civilian employment in the United States that have been observed, period, end of sentence. Obviously, you know, obviously and certainly far steeper than the run-up, you know, the sort of boom period and the run-up to the pandemic. I don't think anyone should expect that will continue since you know one we're starting to get back to levels of employment that were pre-pandemic, and we're not quite there, but we're getting close. Two, the government's policy is to slow the economy down, and slowing the economy down is gonna slow hiring down. As I said earlier, the implications for our model are one as was suggested earlier you know we probably shouldn't go crazy on the year-over-year percentage increase in Q1 in HSAs and you know kind of be a little more modest about our expectations for the full year. The second is that our clients are looking for win-wins. You know, it's worth noting here, and I think this really bodes well for using all of those educational things that Ted was talking about, which parenthetically, you know, it's not like just generic capabilities. It's a product, you know. It doesn't. We don't charge directly for it, but we track the revenue from it. Our account executives and service delivery managers for our enterprise clients, you know, are accountable for bringing what we call max enroll into our customers at a greater, substantially greater level this year than last. The reason I mention that here is to say, we know that our clients, either they know or they need to know that in a world where, you know, they're seeing something they've never seen before, which is a still tight labor market plus wage pressure, right? Most of these folks were not alive in 1981, or 1980. Or best case, 1990, they were alive, but they probably weren't working in HR. They're seeing something they've never seen before, and they're going to need tools, and we have some of those tools. Our job is to go out there and from a sales and relationship management perspective, give them those tools. And if we do that, we'll have a good season. And that's kinda. That's what I think. Great. Thank you. Thanks, Allen. Thank you. Our next question comes from David Larsen from BTIG. Your line is now open. Hi. [crosstalk] Hi. Congrats on the very good quarter. I'll be hopefully fairly quick here. For the interchange revenue, I'm looking at growth rate of around 21% year-over-year. I mean, is that what you reported? Then is both health card revenue in there, utilization of services, and is commuter revenue also in there? Was that 21% growth all organic, and was commuter and health card both up around the same amount, 21%? There's a lot in that question. I'm gonna let Tyson catch his breath and answer most of it. I'll answer the piece that I can easily. That's total revenue, obviously, and there's an organic and inorganic component to that. Obviously inorganic was helpful. It's of course a mix of HSA and CDB, and yes, includes both healthcare and commuter. Tyson, maybe you wanna elaborate a little bit there. I'm not sure you missed anything, Jon, but I would just say the commuter. That's why I'm thinking, "What am I gonna add?" I would just say on the commuter side, just to kinda talk about that for a second in a way that it is very small relative to. We do see improvements, but on the interchange, from an interchange perspective, it's a small amount of that. It is an indicator of people utilizing it, so I have seen the utilization and the card swipes going up over the course of the last, we said even, you know, three quarters, and so we continue to see that march in there. It does help from a perspective of how that's growing, on the commuter side. It's a very high percentages, but a very small dollar amount, and I think everything else Jon said is true. Okay. For the Enhanced Rates product, I heard that that's on about $1 billion of invested dollars right now. When I look at your press report, I'm seeing HSA cash $13 billion, HSA investment $7 billion for a total of about $20.3 billion. I'm assuming all of those are invested, all of that $20.3 billion is invested earning some sort of yield. Does the Enhanced Rates product, are we looking at that as a percentage of $20.3 billion or a subcomponent of that? Yeah. Let me clean that up for you. I think when you heard the billion, that was a response to the question about variable, basically the effects of Fed funds changes and how much cash those Fed funds changes impact. The answer is they impact about $1 billion today that is deployed in variable rate contracts that is part of HSA cash. That was that number. We said at the beginning of the year that Enhanced Rates was about 10% of our HSA cash number. Our HSA cash number at the beginning of the year was about $13 billion, give or take. 10% of $13 billion is $1.3 billion, give or take. Our goal is by the end of this year to, you know, roughly double that, to get it 20%. We're pretty confident we will. You know, kinda pushing $3 billion. I hope that cleans it up for you. If not, that's something we can take offline. Well, we can talk about in one-on-one or whatnot and make sure you got it all. No, no, that's fine. That's very helpful. As we enter into fiscal 2024, what I'm hearing is that $1 billion might actually turn into $3 billion. Assuming interest rates continue to rise, the benefit from that will actually increase even more than what it has this year. I think. Well, let me say, I think I wanna be clear. What we're saying is with regard to the Enhanced Rates piece, that piece will grow from $1.3 billion at start of this year to, you know, something around double that. Then that $1 billion that's in variable cash, I would expect that number will be, you know, similar next year, in percentage terms. Again, it depends on the time of year and so forth, but it's between 5%-10% of our total cash. To the extent the total cash grows, it will grow too. Okay. Just the last quick one for me. The 12% organic growth in membership, was that from inflows into your existing base, or was that from new account adds or both? My kids got me onto Reddit, and apparently incel on Reddit is a totally different thing. You said that, and that's what I thought of, and I didn't hear the rest of the question. No, I did. The answer is both. It's inclusive of new organically won logos as well as growth of existing logos. Okay, great. Thanks very much. Congrats on a good quarter. Thank you, sir. Thank you. Our next question comes from Sean Dodge from RBC Capital Markets. Your line is now open. Sean, sorry we missed you last week, Sean. It's actually, Thomas Kelliher. Yeah, I'm on for Sean. So yeah, not much left to take out here, so I'm gonna keep this to a quick clarification. There are about $5 million-$7 million of incremental costs in Q1 tied to servicing capacity, and that was factored into guidance. Did you say that there might be some additional costs spilled into Q2? Or how much carryover or incremental will there be in Q2 and beyond? Tyson, you wanna hit that one? Yeah, I got that. I kept that. You know, last time we talked about it in the last release, in this release, the $5 million-$7 million, I mean, just a little bit of that'll leak over into Q2. You know, I'd say put the Q1 number, you know, about $5 million+ i n there. That's the way I would think about it, just kinda bridging between those two quarters as we kinda move people out parts of that. All right. Great. Thanks. I'll go ahead and leave it there. Congrats on the quarter. Thanks, Thomas. I thought you were Sean, but you're Thomas. Thank you. Thank you. I would now like to turn the call back over to Jon Kessler for closing remarks. Well, I have no closing remarks prepared, so let's consider it a win that we. Some of you asked us to, like, less bloviate less in our answers, and so we tried, and we've saved about 15 minutes, so let's keep it that way. Everyone have a great day and a great, safe summer. This concludes today's conference call. Thank you for participating. You may now disconnect.