Good day, welcome to the HealthEquity third 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 o n 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, Sarah. Happy holidays to everybody and welcome to HealthEquity's third quarter fiscal year 2023 earnings conference call. My name is Richard Putnam, and I do investor relations for HealthEquity. Joining me today is Jon Kessler, President and CEO, Dr. Stephen Neeleman, Vice Chair and founder of the company, and Tyson Murdock, the company's Executive Vice President and CFO. Before I turn the call over to Jon, I have two important reminders. First, a press release announcing our financial results for the third quarter of fiscal year 2023 was issued after the market closed this afternoon. The financial results in the press release include the contributions from our wholly owned subsidiary, WageWorks, and accounts it administers. The press release also includes definition of certain Non-GAAP financial measures that we will reference here today. A copy of today's press release, including reconciliations of these Non-GAAP measures with comparable GAAP measures, and a recording of this webcast can be found on our investor relations website, which is ir.healthequity.com. Our comments and responses to your questions today reflect management's view as of today, December 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 the actual results to differ materially from the statements made here today. We caution against placing undue reliance on these forward-looking statements. 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, which are detailed in our latest annual report on Form 10-K and also 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, and Sarah will help us with that process. Let's get started by turning the call over to our CEO, Jon Kessler. Thank you, Richard. Hello, everyone, and thanks for joining us this afternoon. Today, we are announcing strong results for HealthEquity's fiscal 2023 third quarter. We're raising our full-year outlook for fiscal 2023, and we are providing an early view, that's a preview to some, to fiscal 2024. I'll discuss Q3 operating results. Tyson will review the financial results in detail and provide updated guidance, and Steve is here for Q&A. Let's start with reviewing the five key metrics that drive our business. Revenue of $216.1 million in the quarter grew 20% versus the third quarter of last year, thanks to strong growth in HSA members, their assets, and improving custodial yields, and the inclusion of the acquired Further business. Adjusted EBITDA of $73.4 million also grew 20% versus the third quarter of last year, reflecting revenue growth. Total accounts grew to $14.5 million, up 9% compared to last Q3. HSA members reached 7.7 million, up 23% year-over-year. HealthEquity HSA members grew their assets to $20.2 billion at quarter's end, which was also up 23% from a year ago. Team Purple continued its strong FY 2023 sales effort, adding 170,000 HSAs, up 13% from 151,000 new HSAs opened in Q3 last year. Organic account growth of 12% over the last year is well ahead of the market's 9% growth reported in Devenir's mid-year assessment, which was published in September. As we complete open enrollment, we're particularly excited about what appears to be a strong showing from our network partners and conversion of enterprise cross-sell opportunities, as well as increasing usage by our enterprise clients of our MaxEnroll engagement product. Continued volatile market conditions contributed to a sequential decline in HSA invested assets of $333 million in the quarter, even while HSA investing members grew 23% year-over-year and continued to fund their HSA investments. The average HSA balance of our members increased slightly year-over-year. Custodial revenue growth was very strong, with higher-than-expected custodial yields in the quarter, driven by robust adoption of HealthEquity's Enhanced Rates offering and the actions of the Federal Reserve. We continue to build our Enhanced Rates partnerships, which will allow us to further grow HSA cash balances in that product, adding to yields in the future. Today's results and the guidance Tyson will detail in a moment include the softness in CDB administration services that we highlighted last quarter. Year-to-date service fees from CDBs themselves declined in fiscal 2023 versus the same period in fiscal 2022. With commuter growth and partially recovering some of the FSA revenue attrition we saw earlier in the year in Q3, we are reporting a sequential and year-over-year increase in service fees. Excluding COBRA accounts, CDB accounts grew 3%, and we remain optimistic that our CDB services can continue to grow. With that, I will turn the call over to Tyson for more details. Tyson? Thank you, Jon. I'll review our third quarter GAAP and Non-GAAP financial results. A reconciliation of GAAP measures to Non-GAAP measures is found in today's press release. Third quarter revenue increased 20% year-over-year, led by robust custodial revenue growth. Service revenue was $108.6 million, up $5.8 million or 6% year-over-year. Q3 service revenue growth included an uptick in commuters returning to work, a small increase in FSA and continued softness in COBRA revenue, as Jon mentioned. Please note that we made an adjustment in how we calculate COBRA accounts, resulting in a $0.2 million sequential reduction in COBRA contribution to total accounts, but with no material impact on revenue or expense. Custodial revenue grew 52% to $74.6 million in the third quarter, benefiting from growth in average HSA cash, combined with an uptick in annualized yield on HSA cash, partially offset by a decrease in average HSA investments. The annualized interest rate yield on HSA cash was 200 basis points during the third quarter of this year, and 183 basis points year-to-date, compared to 172 and 176 respectively for last year. This yield is a blended rate for all HSA cash during the quarter and represents a better than expected yield due to rate hikes benefiting the variable rate portion of our HSA cash, combined with higher Enhanced Rates balances in the quarter. The HSA assets table of today's press release provides additional details. Interchange revenue grew 16% to $32.9 million, compared to $28.2 million in the same quarter last year. Year-over-year growth in Q3 benefited from growth in average total accounts with cards and increased spend per account. Gross profit was $126.9 million, compared to $103.3 million in the third quarter of last year. Gross margin was 59% in the third quarter this year versus 57% in the year-ago period, benefiting from increased custodial revenue and reflecting the efforts we discussed last quarter to control service costs and improve margins. Operating expenses were $121.3 million or 56% of revenue, including amortization of acquired intangible assets and merger integration expenses, which together represented 14% of revenue. Operating income was $5.5 million in the third quarter, compared to a loss of $0.4 million in the third quarter last year. Net loss for the third quarter was $1.6 million or a loss of $0.02 per share on a GAAP EPS basis, compared to a net loss of $5 million or $0.06 per share in the prior year. Our Non-GAAP net income was $32.4 million for the third quarter this year, compared to $28.9 million a year ago. Non-GAAP net income per share was $0.38 per share, compared to $0.35 per share last year. Higher interest rates also increased the rate of interest we pay on the remaining $343 million Term Loan A, with a current effective rate of 6.38%. Adjusted EBITDA for the quarter was $73.4 million, adjusted EBITDA margin was 34%. For the first nine months of fiscal 2023, revenue was $627.9 million, up 13% compared to the first nine months of last year. GAAP net loss was $25.9 million or $0.31 per diluted share. Non-GAAP net income was $83.2 million or $0.99 per diluted share. Adjusted EBITDA was $198.7 million, up 7% from the prior year, resulting in 32% adjusted EBITDA margin for the first nine months of the fiscal year. Turning to the balance sheet. As of October 31, 2022, we have $210 million of cash and cash equivalents, with $927 million of debt outstanding net of issuance costs. This includes the $343 million of variable rate debt. There are no outstanding amounts drawn on our $1 billion line of credit. We are providing the following updates to our guidance for fiscal 2023. We are increasing our revenue estimates for fiscal 2023 to range between $850 million-$860 million. We expect our GAAP net loss to be in a range of $34 million-$27 million. We are increasing Non-GAAP net income to be between $106 million and $114 million, reflecting increased interest expense, partially offsetting the benefit of higher operating income, resulting in Non-GAAP diluted net income between $1.26 and $1.35 per share based upon an estimated 84 million shares outstanding for the year. We are raising our adjusted EBITDA estimate to be between $261 million and $271 million. Today's guidance includes our most recent estimate of service, custodial, and interchange revenue and expense based on results to date. On service revenue, today's guidance reflects continued solid performance of core HSA offerings, offsetting the full year impact of FSA and COBRA service fee headwinds observed year-to-date. We remain cautious on increased commuter uptake. Based on the strong sales outlook Jon discussed and continuing labor market tightness, today's guidance assumes incremental service costs during Q4 comparable to those experienced last year. On custodial revenue, today's guidance assumes a full year yield on HSA cash of approximately 190 basis points based upon current conditions and expected HSA cash placements in the fourth quarter. Our guidance for this year does not assume additional increases or decreases in the overnight Fed funds rate or other changes in macroeconomic policy for the remainder of the fiscal year. Our guidance reflects the continued shift of our HSA members building and moving HSA assets to investments. Nonetheless, with current rates rising, our market-driven formula pushed the interest rate that we pay our members on their HSA cash balances up by basis points for the upcoming fourth quarter this year. We expect increases of a similar magnitude will continue over time under current conditions. In the same vein, today's guidance reflects additional interest expense for HealthEquity's variable rate debt for the remainder of fiscal 2023 based on current conditions, without factoring in additional overnight Fed funds rate hikes through the remainder of the year. We assume a projected statutory income tax rate of approximately 25% and a diluted share count of $84 million. We are also providing the following initial guidance for fiscal year 2024. We expect revenue to be between $950 million and $970 million. We expect margin will expand, with adjusted EBITDA growing to approximately 33%-34% of revenue in fiscal 2024. This initial guidance is based on an estimated HSA cash yield of 225 basis points based on our view of interest rate conditions during that period. Today's guidance does not include any additional portfolio acquisitions in fiscal 2023 or 2024 and reflects anticipated inflationary impacts on costs, including continued higher interest rates paid to HSA members and healthcare usage rates reported in this quarter and included in our fiscal 2023 guidance. As we have done in recent reporting periods, our full fiscal 2023 guidance includes a 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 intangible assets is being excluded from Non-GAAP net income, the revenue generated from those acquired intangibles is not excluded. However, a reconciliation of our adjusted EBITDA outlook for the fiscal year ending January 31, 2024 to net income, its most directly comparable GAAP measure, is not included because our net income outlook for this future period is not available without unreasonable efforts, as we are unable to predict the ultimate outcome of certain significant items excluded from this Non-GAAP measure, such as depreciation and amortization, stock-based compensation, and income tax provision or benefit. With that, I'll turn it over to Jon. Thanks. That part at the end is good. It was good. I'd like to close the formal part of this by thanking our individual contributors, both at HealthEquity and from our clients and partners that have to date delivered a DEEP Purple open enrollment season, are finishing that up, and getting ready to deliver an equally impressive onboarding season in January. It's their work that has set us up for what we expect to be a very busy and productive end of this year and, as Tyson's indicated, a very healthy next year. I thought it was appropriate just to say thank you. With that, let's open the call up to questions. Operator? Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Stephanie Davis with SVB Securities. Please go ahead. Hey, Stephanie. Hey, guys. Thanks so much for taking my questions. Appreciate it. I was a little surprised to see preliminary guidance this soon, 1, and just, 2, see the preliminary guidance factors in what feels like a relatively conservative yield assumption. I was hoping you could tell us a little bit more about the decision process and what weighs into all of that. Tyson, you wanna speak to the reason to do guidance? Yeah. Yeah. Hey, Stephanie, good to hear from you. We wanted to get guidance out a little bit earlier this year just to give people a view into next year based on the conversations that we've had about placements and those type of things. One thing to keep in mind, directly to your question on yield, is we're estimating that based on our current view of what the consensus says about the macroeconomy. The other thing, Stephanie, that's important to keep in mind on that is that we're gonna have a lot less variable cash, HSA cash as well, so there won't be as much impact from that. It's kind of been a very different year in fiscal 2023 with the Fed rate movements moving that yield up and then, you know, subsequently having us raise, you know, guidance based off of that. We're doing it a little bit different this year with regards to the fact that there's less of that cash there because we've been able to place it due to the demand, and then also just considering the way that we're actually doing guidance, we're trying to get a wholesale view on the year. Thinking about the kind of delta in guidance philosophy between FY 2024 versus FY 2023, is it safe to just assume that you're not assuming as much potential upside, or is there anything else to call out in Enhanced Rates floating all the other toggles that have been so beneficial this year? Well, I mean, If you look at it from a midpoint-to-midpoint perspective, Stephanie, we're forecasting double-digit top-line growth and profitability on an EBITDA basis that's like twice as fast with EBITDA growing twice as fast as that, if it takes. I know. I feel like a punk bringing this up and being like, "It's not high enough, guys. What is this? Right. Right. We felt like this will be the first time we've ever given guidance ahead of the year. The reason that we're doing that is, as Tyson suggested, is, one, because we have a, you know, great deal of confidence in the year. two, because we have a great deal of visibility. three, to set a baseline. We'll have plenty of opportunities to take more bites at this apple, and we'll see how both, obviously our sales season finishes up. In the past, we've, I think, you know, generally underpredicted our sales season, which is sort of how we do things, as you know. We'll see how our sales season finishes up. We'll see how things like, you know, FSA enrollment finishes up. Obviously, we'll see what happens in the broader economy. We thought that this set a pretty, you know, darn healthy baseline for going into fiscal 24. Well said. Thank you, John. Our next question comes from Anne Samuel with J.P. Morgan. Please go ahead. Hi, guys. thanks for taking the question, and thanks for providing the guidance. really helpful. I was wondering if maybe you could talk about, you know, how your selling season is shaping up this year and just what conversations with your customers are like just given the current macro environment? Steve, you wanna, hit this one? Sure. Yeah. Yeah, look, I mean, I was in the field yesterday with a bunch of our sales leaders and one of our partners, and I think there's some real genuine enthusiasm the way that the year is finishing out. Just, as you know, we it was so unsettled over the last two or three cycles because of everything that was going on in the economy. Now, of course, there's concern about the upcoming recession and whether that may impact some sales. I can tell you that both from our direct sales to clients and our sales through our partners, our health plan partners and other partners, and then even we mentioned a little bit in the prepared remarks about this MaxEnroll process. I think we're really kind of excited with the way the year's turning out. Obviously won't know all the numbers. We say this every year at this time until we've actually we're close to January, and last January was such a bumper crop year that, you know, we've got a lot of work to do to even beat those numbers. We're feeling pretty good about the year. That's great to hear. Thanks. I was hoping maybe just one on the Enhanced Rates product. How should we be thinking about that yield relative to your overall yield, how should we be thinking about what the contribution was to the yield that you guided? I think last year, 10% penetration gave you about 10 basis points of yield. Yeah. We've previously said that our goal was to get to about 20% penetration by the end of the year, and that we felt like we were likely to exceed that, and I still think that's true. It did make a contribution. As we've talked about before, the Enhanced Rates product produces a gross yield that, you know, give or take, and we've talked about this before, maybe a 75-ish basis point premium to what we're seeing from our deposit products. You know, I think you can kind of do a little bit of math from there. You know, the way we look at it, though, one of the biggest... Well, two thoughts. One is, we have a long way to go with this. This is gonna be a tailwind for us for many years to come. As Tyson commented, you know, we've added incremental partners this period to the Enhanced Rates product, sort of the equivalent of adding banks in the early days on the deposit side. It makes all of our placements more competitive and, you know, that's just a good thing both in terms of aggregate rates, but I think also in terms of stability, you know, as you see all this kind of variability on rates back and forth. it helped us a little bit going into fiscal 2024. It helped us a little bit in fiscal 2023. I mean, you'll recall at the start of the year, we were, you know, what were we guiding to at the start of the year? 150 basis points, 155 basis points? I can't remember now. $165. 165. Thank you. That's Richard. Sir Richard. So it helped us along with the Fed's actions this year. You know, whatever the Fed does, this will continue to be a nice tailwind for us for a long time to come. That's really helpful color. Thank you. Thank you. Thanks, Anne. Our next question comes from Greg Peters with Raymond James. Please go ahead. Mr. Peters. Good afternoon, Team Purple and Sir Richard. I guess the first question I wanted to ask is about just the HSA total assets that you reported as of October 31, 2022. In the press release, you commented on the growth on a year-over-year basis. If I look at the number relative to where it was on January 31, 2022, it's not growing as fast. Maybe you can speak to the cadence of total HSA asset growth. Yeah. The primary factor that has been driving the deceleration in asset growth on a sequential basis, you know, has really been, you know, something we commented on in the text, and that's a decline in asset values over the period. I think we actually tried to quantify that a little bit in the text. You know, what I guess I would say is remarkable and helpful is that during that period, that we haven't seen, you know, fundamental changes in consumer contribution behavior or the like. I do think there's been a little bit of a pullback, that's just based on, you know, exactly what you would expect when you have high inflation. You tend to have low savings rates, that kind of thing. That is very modest. The biggest effect that we've seen there is, you know, market net asset values. Those have a way of, as you well know, you know, kind of reverting to a mean. We're just gonna keep trying to do our thing, and I think over time, that'll work itself out just fine. Okay. Then I guess my follow-up question from a macro perspective. You know, last time rates started to move up, which was some time ago, you know, we started to see some changes in competitive behavior around their attitudes of service revenue versus custodial revenue versus interchange. I was just wondering if there's been any noticeable change in the competitive landscape favoring custodial versus service considering the movement in rates, et cetera. I'd like to believe, Greg, that people have gotten a lot smarter about this, recognizing that rates go up and rates go down. What I do think is the case that it is that if you look at this, let's say, three... Well, certainly at the start of the pandemic, right? As you'll recall, I remember you asking a question about negative rates. Obviously, it's not just that we're far from that, it's that I think it's fair to say that the consensus of what a normalized rate environment looks like actually is probably not, you know, it's, you know, it's a, you know, it's clearly it ain't zero, it ain't one, it ain't two. I think people kind of understand that a little better, and so we're not seeing quite the same, you know, sort of, I'm gonna call it, you know, where some people were like, "Oh, this is gonna last forever. Let's do X, Y, or Z on five-year agreements." It's a piece of the puzzle in terms of aggregate service fees. I also point out too that, as you know, but others might not, you know, our service fee revenue today comes primarily from our CDB products. Our HSA service revenue, you know, on a year-over-year basis is growing at more or less, as I think I said in the commentary, it's more or less the rate of account growth. You know, CDB is where we've been more challenged, you know, as we discussed last quarter and the quarter before, which is not fundamentally about competition. It's fundamentally about, you know, some of our challenges as we finished up the CDB side of the WageWorks migration. Look, I've always said there's some level of, for lack of a better term, elasticity between service fees and rates. But I do think people are a little bit, let's say, I think a little bit smarter about the fact that, you know, that they have to look at normalized rates over an extended period of time as opposed to, you know, what yesterday's Fed funds rate was. Okay. Got it. Thanks for the answers. Thank you. Our next question comes from Glen Santangelo with Jefferies. Please go ahead. Hi, Glen. Oh, yeah. Hey, how are you guys doing? Thanks for taking my question. Hey, hey, Jon and Tyson. I just wanted to unpack this 2024 guidance in a little bit more detail. If you look at these third quarter results, you put up a 34% gross margin and, you know, your initial fiscal 2024 guidance is calling for an EBITDA margin of 33%-34%. It looks like it takes a little bit of a step back, which is a little bit surprising just given the growth in the custodial revenues and given the gross margins around that custodial business. You know, Tyson, I was wondering if you could unpack, you know, the margins a little bit and give us a sense for what you're assuming in 2024, because I don't know if it's pricing. I don't know if it's mix of business lines that may be driving that margin one way or another. Thanks. Yeah. I mean, the first thing to really keep in mind, I mean, one thing, just go look at last year Q4 and just the seasonality of our business. When you look at if you backed into the margin for Q4 of last year, you know, as essentially 25% EBIT in there, you know, we're trending a little better because we've got the custodial revenue element in there, but this is really about the service cost coming into play. I mentioned in script that, you know, they've been pretty much equivalent in the Q4 time period as to what they were last year as far as that increase that happens between Q3 and Q4. Blending the quarters together, Q3 is always gonna be a strong EBITDA margin quarter versus Q4 and say, you know, particularly even Q1 of this year, we talked about some of the service costs that we had to flow into that blend. You know, that's why. When you then blend that together for that guidance for next year, and you think about a 33%-34%, it's essentially taking up all those quarters, if you will, but still having that same seasonality trending across the respective quarters. You know, hopefully that helps. The other. Let me just say one other thing, too. Just on the implied guide, I just wanted to. You had said gross margin. It's on the EBITDA margin side. It is like, what? 33% Yeah. If you look at our guide right now, it's like 31%, 32% for this year for FY 2024. You're looking at, like, a 200 basis point expansion. Exactly. Yeah. I just wanted to make sure. I mean, that's the core point. We're forecasting in this thing, you know, give or take depending on, you know, what midpoint, whatever, somewhere between 200 and 300 point expansion in EBITDA margins. That doesn't seem shabby. Yeah. It's obviously the case that we, our view is that, we're gonna look at how we do this fourth quarter, and that'll have some impact on any guidance revisions as will, you know, ultimately unit sales and all that kind of stuff. Similar to Stephanie's question, seems like a good start. Yep. I think I get it. I just wanted to make sure that I wasn't missing anything. Jon, this is one of the I wanted to ask you was, you know, for better or worse, many investors are just looking at this stock as a rate trade. I was wondering if you could maybe take a step back and give us some thoughts around these CDB businesses. You know, clearly, maybe they've been a little bit slower to recover than what you maybe would've thought. I'm just trying to get your sense for how we think about that on a go-forward basis and how those CDB businesses should affect the growth algorithm in 2024 and beyond. Yeah. Let me first say, I think that while I understand why investors may do that, particularly if they're modeling out many years, whatever rate you apply times a corpus of zero equals zero. Mostly what this company has done over the course of time is it has managed to grow the underlying asset base that it manages, of, you know, what are ultimately a large number of very small accounts and then, you know, in terms of the cash. I do think that the sort of the first underlying point before you get to CDBs and all of that, you know, is the underlying growth in, you know, what you might think of as units. In this case, units are accounts, HSAs, and dollars. Those have, you know, as we reported today, I think over time, consistently grown pretty well, both in just on their own terms and then relevant to market. Specific to the CDB business, First of all, we said at the beginning of the year that we were going to see softness in this business. We talked about basically trying to grow the HSA component of the business to get to a place where, you know, by the end of the year it was through, you know, 60% of total revenue. We're basically there through three, you know, into this third quarter. That growth will continue into the fourth. you know, the first point I want to make on this one is that we're, you know, we are very focused on growing the HSA business, which is our core and where we're a market leader. Where I think we are on CEBs, and I tried to allude to this in the commentary, is we wanted to get this to a place where it was sort of stable, where we weren't talking about this legislative thing or that transition thing or that platform thing causing a $5 million surprise here or there. And I think that that's the way I would look at the performance thus far. The next step in this, in my mind, will be to see what actually we get out of consumer enrollment in the CDB products, particularly the FSA, which is the biggest component of all of that, right? In the current open enrollment season. The assumption underlying our current look at 2024 is I'm gonna say... I don't want to say conservative, that's not the right word, but it reflects what we've seen to date. We'll see what we actually get, and we'll be able to talk about it at, you know, JPM in a few weeks and then ultimately refine our guidance accordingly. I think that's the next step, is to see enrollment growth at the consumer level. We've done some things this year that really should help us there around how we engage with, consumers that, you know, kind of maybe their egg got scrambled a little bit on this one during the pandemic. We're hoping to see real benefits from that, but I wanna actually see them first before I project them. Okay. Thanks for all the details. Thank you. Our next question comes from Scott Schoenhaus with KeyBank. Please go ahead. Hi, Jon and team. Apologies, I'm fighting a cold here. Apologies for the nasal voice. They all say it's a cold, but, you know, you never know. Like, that's the problem. Everyone says it's a cold or allergies or something. You're on the phone, so I guess it's okay. I tested negative so far. We'll see what it develops into. Put it on the web. We want to see it. I'm kidding. By the way, did RSV give you worse COVID at this point? Yeah. Yeah. So We want a full battery of tests. All right. Go ahead. Go Go ahead, Scott. Go on, TJ. I did pick this up from my daughter at daycare, so it might be RSV. Anyway, I'm not gonna ask you a question about rates. I just wanted to talk about the interchange revenue. It came down 12% sequentially. I think that's more than normal trends. What's driving that? What are you seeing so far in November and December? I'm just trying to kind of extrapolate the spending behavior from customers on the healthcare system. Obviously, it's a, you know, broader talking point in healthcare, you know, weaker or better than expected volumes heading into this, 4Q, you know, calendar 4Q. Any color would be appreciated. Yeah. You know. We're up. Let me just say we're up, I wanna say 16% or 17%, something like that year-over-year. Thank you. That's good. I think you're, you know, typically Q3 is seasonally our softest quarter for interchange revenue. That was true here. We saw a little. If you look at the different account types, there was a little more softness on the FSA side than in the HSA world. You know, this is a tough one to predict, and it does, you know, bounce around just a little bit, to the tune of, you know, a couple hundred thousand dollars here and or there in either direction in a given month. That's kinda my thought about it. I mean, ultimately, what's gonna drive interchange over the long -term is having more accounts and having people comfortable contributing to those accounts. You know, that's what, you know, ultimately they're spending, if that makes any sense. Tyson, anything to really add to that? I don't really have anything to add other than to say I think you're, you know, you're doing some math on that. I don't think it, you know, exceeded my expectations by any means, and I think it was maybe a little lighter, but I think it was well within the window of how I think about forecasting and thinking about that stuff. I didn't see anything particularly other than what Jon mentioned there. I mean, the commuter stuff continued to increase a little bit, so that's always a positive sign that that continues to kind of be a tailwind. That's probably the last comment I'd make on it. Okay. Great. Nothing to follow up there. just my last follow-up, I want to kind of the self-help story of your margins. Is the Further acquisition now complete as we enter the one-year anniversary? Are there any cost synergies that are breaking the guidance at this point? Secondly, are you guys still consolidating more real estate? Thanks. On the Further one, just to go back to other comments we've made, we still have, as you know, the bulk of the synergies are out a couple of years. When you think about 2024 and 2025 and getting our arms around, you know, what they did with technology and getting that migrated over onto our platforms, and some of those things landed where we really get the synergies out of it, those things remain to be seen. You can see us kind of spending our way through the $55 million of M&A costs that we said would be there as well as we kind of put that in order. There will be more synergy out in the future relative to that business. It kind of was a different... It usually you might see more upfront. This one's more of a, of a tail because it's on the technological side. The second question was, I think, was about the real estate we backed out. Yeah. When I was visiting you guys out in person this summer, I saw a lot of consolidation. I was wondering if there was more plans for condensing office space. I mean, I think we're in a good spot with what we have. We've got a beautiful building here in Draper and some space down in Texas and largely gotten out of most of the other of it. The stuff you see being backed back through EBITDA is really the stuff that relates to WageWorks, right? It's not everything. So you can see also in our financials when you look through there that really fixed asset costs, you know, capitalized are coming down. We're gonna run the business in a much more virtual way and less capital is always better. If you're interested, we do have some, you know- We do. If you'd like to come out and check it out, again. He did come out. We can do a full tour. Actually, if anyone listening to this call. There is some opportunity there. Appreciate that, Jon. We'll see. Thanks, Scott. Our next question comes from Stan Berenshteyn with Wells Fargo. Please go ahead. Hi. Thanks for taking my questions. Appreciate the preliminary guidance you provided. Can you perhaps share with us where are you in the process of actually rolling over into new custodial terms, and when do you expect to be sufficiently completed with that process? I have a follow-up. Yeah. I mean, it's a good question. When we do this throughout the, throughout Q4, right? The majority of, you know, the assets come in in that end of December, January timeframe when they're actually placed. When you think about them going into, for example, our Enhanced Rates program and actually starting to derive revenue off of that, it's in the January timeframe that that occurs. Then, of course, we're signing FDIC type contracts, you know, over the course of those, you know, the last part of December, first part of January timeframe. We kind of get through that by the end of January when we've got all those assets placed and generating revenue. Got it. For my follow-up. Short-term rates are at 15-year highs, you know, debatable, whether we've seen peak rates at this point. I'm sure Jon Kessler has opinions on that. I'm just curious, are you inclined at all to increase the duration of your custodial deposits given where rates are versus, you know, prior 10, 15 years of history? No. Stick to the plan. Yeah. I mean, well, it's, I mean, I don't, at this point, I don't think duration is. I mean, you got an inverted curve. I don't think duration is our friend. Even if it were the normal version, we're basically of the view that, you don't pay us to gamble on that, and shareholders don't pay us to gamble on that. We're trying to stay consistent and, you know, there's enough other moving pieces out there. Got it. Helpful. Thank you so much. Thanks, Stan. Our next question comes from Cindy Motz with Goldman Sachs. Please go ahead. Hi. Thanks for taking my questions, and nice quarter, and thank you for the preliminary guidance for 2024. Did just want to ask a little bit more about, you know, 2024, not to beat a dead horse, is it fair to say that basically what you're doing is, you know, you're anticipating passing through, you know, maybe higher rates or some of the rates, and you wanna see how it goes in terms of balancing the growth? You know, 'cause obviously you wanna, you know, retain customers or, you know, members and, you know, then balance it. You know, maybe has it gotten a little more competitive? I mean, is it fair to characterize it like that's what you're doing? Like when you say you're just sort of gonna look and see how it goes? Thanks. Yeah. I mean, it might be worth noting here with regard specifically to the custodial expense that what we think of as our crediting rates, I mean, those are mathematically determined and meaning they're based on what our competitors do there. We have not seen a lot of what one might call deposit beta, nor did we in prior upswings. There's a little, and we've tried to reflect that in our guidance, as Tyson commented, both for the remainder of 2023 and 2024. I think, more broadly, I mean, what we've tried to do is basically reflect our view of the growth that is resulting from the sales cycle that we're now finishing. Understanding things like, you know, we're trying to be thoughtful about what the needs of our teammates are gonna be as we go into, you know, wage cycle and all that. You know, try to take a what I think is a very sober view of what fiscal 2024 might look like and use that as a baseline. That seems like a useful, you know, again, useful thing to do. Then just in terms of the overall margin, so that's what we're seeing. There's nothing else going on in terms of, you know, other expenses and things like that. It's just basically the mix. Obviously, it's very, you know, strong margin improvement that I mean, I know you're not gonna give us 2025 guidance, but I would expect that that would continue as the mix shifts into 2025, maybe similar improvement. I think it's I mean, our general view has been that, you know, as we see mix shift, in a number of different ways that we have an opportunity to expand margin. I think your conclusion would be consistent with that view. The only thing I would add to that, too, just to make a point of it, is that the contracts that we'll replace in fiscal 2025 are not this January, but next, were the contracts that were placed in zero interest rate environment. Right. They were negotiated in zero interest rate environment. The rates stay steady. They stay at the averages. It'll be an improvement over those contractual placements in that period. There should be acceleration there. We've talked about that before. The other thing, Cindy, that I'll just make a point at, too, since you brought it up, just on the custodial cost side. It is interesting because we've been in the zero interest rate environment for a long time, we saw this move that I pointed out in script that increased the cost by 5 basis points. That undoubtedly, you know, will happen. Again, it's based on that mathematical calculation where we use inputs from what our competitors are doing, and it's right in the small print of the member agreement. We'll increase that rate as our competitors increase the rate. You know, those should be being built into our models and so forth, based on what we think, you know, will happen there. Great. Thank you very much. Thanks, Cindy. Thank you. Our next question comes from George Hill with Deutsche Bank. Please go ahead. George. Good evening. Good evening, guys. I hope you can hear me okay, and I hope I'm not about to embarrass myself as I try to do math from the back of a cab. My question's also on the fiscal 2024 guide and the rate environment. If I'm doing the math right, your annualized custodial yield this quarter was about 2.3%, and you guys are guiding to 2.25% for fiscal 2024. I guess, can you either walk me through the expectation of rate cadence, or should I think of that as conservatism as with respect to rates? I have a quick follow-up. All right. I'll give you the correct numbers. I'm watching Richard because I was looking at the piece of paper. For Q3, it was 200 basis points even for Q3 that we just reported. For the annualized number, Richard, was it one-? $190 for the annual. Yeah. Which implies a little better than, like, $2.10 for a Q4. Yeah. $190 was our guidance for the full period, right? For the full FY 2023. Nine months ended, it was $183 or something like that, right? Those are the yields off of this year. That math is a little... Just to set the level set on the math. Of course, the guidance is then $225 for the next annualized period. I think George was including the tip. Oh, the tip on it. Yeah. That's George. I mean, It's +15%. I mean. He's including that. Yeah. Yeah. He's got a tip in there. Yeah. Well, like I said, guys, math from the back of a cab. I'm sorry about that. Then, Jon, I'll give you a two-part follow-up, which is, number one, one of your larger competitors in the space seems to be targeting healthcare financial services as a growing market opportunity. While, of course, that would kind of validate HealthEquity's market opportunity, it seems like they're trying to jam more into their card and what it can do. I'd love for you to talk a little bit about the competitive environment as it relates to services facing, what I'd call the commercial market. Then, Jon, my joking question was gonna be on the real estate that you guys are getting rid of. How close are you guys to go to skiing? Well, I actually didn't hear that side. To go skiing. To go skiing. Yeah. Well, I mean, again, we've got very attractive real estate and I mean, we could chalet this thing if you needed to. We can do it. You can see the snow. We're gonna put a tram from the parking lot. We talked about that earlier today. A tram. Like, for you. We would do that for you, George. Yes. It's a tenant improvement is what it is. On your first question. What was that first question? Competitor. Oh, yeah. Competitive environment. I think that there's. Look, my basic view is that there's opportunity there. There's opportunity with regard to how we all think about, like, where we're ultimately headed, and we don't do product announcements and that kind of thing. That's not how we do it. Ultimately, you know, I think you're gonna wanna think about less about the card as a physical piece of plastic and more as something that's, you know, residing in the digital wallets we're all carrying around. What's nice about that is it does open up some opportunities. That having been said, right, what we're not going to do is, you know, our. You know, I do see some of our competitors getting all hot and hungry for the idea of issuing, you know, what amounts to high interest revolving credit, and that does not interest us at all. You know, in other words, There is a place for that, but I think what we wanna do is get to a place where consumers can use these products, so they're not putting these things on their consumer credit cards and rather than provide more or less the same thing with different piece of plastic. I guess my basic view is there is opportunity there, and the fact that others are talking about it, you know, is somewhat validative of that. That's where, you know, if you look at what we're looking at in terms of sort of, growth revenue streams, I'm sure we'll have more to say about that as time goes on. Thanks, George. Thank you, guys. Thank you. Our next question comes from Mark Marcon with Baird. Please go ahead. Hey, good afternoon, Team Purple. You know, there's lots of discussion among companies about basically trying to, you know, reduce expenses, you know, increase margins. To what extent does that end up filtering a little bit of the preference, you know, from a, from a healthcare benefits mix over to HSAs? Are you seeing any of that this quarter? Then I've got a follow-up. Steve? Yeah. Thanks, Mark. You know, I think there's always been this probably unappreciated benefit for these types of accounts, even over a 401, in that the money that people put in out of their own paycheck into a health savings account reduces the employer's costs, not for every one of their employees, but for a big chunk of them, the majority of their employees, by roughly 8%. If I put $100 in my HSA, my employer saves $8 on payroll taxes, and I save $8 on payroll taxes, plus I save my Fed taxes and my state taxes, and I think all but two states, California and New Jersey. The one where I live. Yeah. That's the one. Jon doesn't get his state taxes actually. You get to save on taxes. We still believe that if you look at plans that have what I would consider to be kind of mass adoption, these Health Savings Account plans, Mark, they just tend to have better trends than plans that are heavier benefited plans that are richer benefits. If you can save two, 3% on trend, you know, over the course of your entire employee base, plus some cash on taxes, it does make sense for you to do that. That's why in past recessions, even though, you know, you always hate the thought of folks laying off employees, and then that would naturally be our growth or it could impact our growth a little bit, we have seen employers get more aggressive towards going towards successive plans and promoting them. I think what's different this year, in fact, in the last couple of years than we've had in the previous 18 years at HealthEquity, was we didn't really have the tools to say to an employer, "Okay, it is a deuces thing, let's go after it." Then to use some of these products we talked about, MaxRoll and our HSA Optimizer and just our overall digital marketing effort. I do think that it's a, it's a way for employers that are feeling like, look, I still need to offer our people great benefits, but I need to watch the dollar a little bit more than I did maybe last year to go towards successive plans. Did that help contribute to the 170,000 that you ended up adding? Well, I think it was a little earlier. I mean, you know, the recession was, you know, was... It's not really a recession now, I guess. You know, I mean, there's no question that employers are trying to be thoughtful about how they're putting people in benefits. I think overall, the biggest driver for those 170,000 is employers are figuring out this is actually the richest benefit in kind of an ironic way. I mean, if you can do a well-designed... You know, we've got this Pfizer case study that's out there now, kind of people are reading about it. You know, when they thought about this thing for 18 years before they did it. Finally, they did it, and they said, "We're not doing this as a takeaway. We're doing it because you can leverage a tax code, and you can leverage some other features of this to actually make it the richest benefit. I think that's, I don't know, Jon, if you'd agree, but the I think more and more recent growth is not, I wanna save some bucks. It's I wanna give the best benefit I possibly can to my people. That's great. I just think what is true is that we win when our clients on the benefit side need to be creative. Whether it's creative to retain people or creative to manage costs or whatever, like, creativity is our friend. You know, this is a cycle, and I expect next cycle will be such where people are gonna have to be creative. What are they really trying to do ultimately? They're trying to deliver the most value to their teammates, and that's what people go into benefits to do. They wanna deliver real value. They don't just wanna cut costs. To Steve's point, you know, these are ways to do it, whether it's promoting stuff that already exists or fiddling around with it. There's real value here, and that's what people are looking to do. Great. What, what does your guidance imply in terms of new ads for the fourth quarter? I don't think we don't literally give sales guidance, but. Yep. I guess what I would say is as Tyson commented earlier, I mean, if you look at last year, you know, we ended up selling in the full year, I wanna say a little over 900,000 accounts. You know, If you look at each quarter this year, while the new ads have slowed down, as you might expect as the, as the, you know, labor market slowed down a little bit, you know, they've been on a really good pace. It's probably as similar to the message I would have given you on this topic at this point last year, which is, you know, do I think that we're gonna blow through 1 million accounts? No, I don't. There's just not enough accounts out there. We should have a very healthy year, sort of, you know, you know, kind of, certainly as healthy as last year. Perfect. Thank you. Thanks, Mark. Our next question comes from Allen Lutz with Bank of America. Please go ahead. Hey, everyone. Thanks for taking the questions. Tyson, I guess on the OpEx side, technology and development, as a percent of revenue is, has kind of steadily ramped since fiscal 2015. I think it was around 12% of revenue then, and then even pre-COVID, it was about 15%, and now it's at 21%. I guess just a level set, what exactly are the increases in tech and development being spent on? I guess, is there any chance or I guess, what's the timing around when we can see some operating leverage from that part of the business? Thanks. Yeah. That's a good question. Thanks for asking it. You were exactly right on the numbers going up like that. You know, it has to do with mainly the acquisitions, right? You think about wage and then Further as well. Those play a big part in that, the amortization of the capitalized development that's in there, the security build out that we've done. We have built a very good security team over the course of my tenure here and spent quite a few dollars putting that in place, and I think it's as good a selling tool as anything. That's in there. I don't think, you know, there's no chance now that it goes back to where it was before, and I don't think that'd be the right thing to do for the business. I do think it's sort of leveling off. The other thing I would say in there, too, is that a lot of it has to do with stock comp, you know, coming through and the talent grab that we need, that we need to make in that particular area. You see that playing into that as well. Of course, that's getting backed out of the EBITDA margin side, so you don't see the impact of it there. A lot of that increase will be, you know, in that area. Really, when you think about other things that are in there's not any large investment in there necessarily. There's just the merit and the associated cost of the folks that are in there, and then how much we end up capitalizing relative to, you know, what we're building. I don't know, Jon, if there's anything else you wanna add to the strategy there. I mean, the only other Look, I think big picture, I mean, it's kinda gotten about as high as it's gonna get, is the way I might put it, at, you know, low 20s% of revenue. It's kinda funny. I mean, when we were at 15, as I recall, one of Allen Lutz, one of your predecessors was like, "It doesn't sound like enough for a growth company." You know, the way I kinda look at it is, I do think when you sort of go apples to apples, we have increased spend in this area, and the sources of increased spend, I think, are ultimately threefold. First is, I'm sorry, is security, as Tyson mentioned. I think the second is the fact that we're, you know, we are actually investing more to innovate around the business, and you've seen that in what the business has done over the course of time in any number of areas, and will continue to do. We talked about some earlier in this call. Then the last thing that it's worth mentioning is, you know, that in practice, in the near- term anyway, the conversion to cloud on the IT side, I mean, as you're doing it does have a, you know, it does hurt you a little bit. Over time, that works itself out and that should be a tail, a tailwind. You know, I think the... that plus, you know, kind of having, you know, kind of now getting through the amortization of acquisition-related technology spend and all that, you know, I think you're gonna see this number start to come down as a percentage of total revenue over time without like peculiar efforts on our part. Okay, that's helpful. Thanks, Jon. There was a $9 million sequential benefit in custodial revenue. I think we talked about this last quarter. There's a couple different buckets that are driving that, enhanced yields, and then the SOFR or LIBOR increases. You're also guiding for a 5% quarter-over-quarter increase in yield from 2%-2.10%, I believe, or 2.1%. Obviously, some of that's gonna be from the repricing. I guess as we think about the benefits that you saw over the course of fiscal 2023, a lot of cash being deployed, how should we think about the step-ups quarter-over-quarter in fiscal 2024? Is that gonna be more of a kinda flattish year, where the yield you get, exiting the fiscal fourth quarter this year is gonna be more or less the yield that you're gonna have over the course of the year? Is there anything else we should be thinking, about modeling for that? Thanks. Well, just to make sure, the guide for the year is 190 basis points. I just wanna make sure that's clear. I know we put a lot of yield numbers out there, we're just all kind of getting level set on those. I think, you know, when you think about Q4, right, it's a partial quarter, and you have those placements, and you have the roll-off of the ladder coming through there, Allen. You know, you do get a little bit of upside relative to those new placements on the old contracts that were there because we're gonna place at higher rates, and we're gonna place at higher Enhanced Rates as well. It would, you know, you'll have some increase there, but again, it's built into the guide that I gave already on that one. I think what Allen Lutz was asking is really about with regard to fiscal 2023. Yeah. We had this, you know, relative to where we started the year, we had this pretty big step up quarter-over-quarter in yield- Yeah. in yield on HSA cash. I think Allen Lutz was sort of asking about how to quarterize the 225. I see. Yeah. I mean, the one thing that'll that won't be there as. Well, I don't know if it'll be there or not, but, you know, we try to take this into account is the fact that we'll have less variable cash. I don't, you know, whether the Fed continues to raise rates, it will be on less variable HSA cash that's in there. That was one of the things that you saw continually kind of pushing that rate quarter-over-quarter. That would, you know, I think, and if that's your question, Allen, it would temper that because it wouldn't be as big a base number on that Fed yield improvement if that were to occur. It's probably safe to say, without, you know, stepping into your territory, Tyson, that there is still some quarterization, just less dramatic than this year. That's gonna be reflected in the fact that our, you know, our view is that over time, you know, these under any mainstream economic scenario, these yields are gonna continue to go up as we're still, you know, we're gonna be replacing these contracts that came in during the pandemic and all that kind of stuff. There is gonna be some level of tilt from first quarter to fourth quarter. Yep. It just won't be as dramatic as it was this year. On that variable side. Yeah. Thanks, Allen. Got it. Thank you. Our next question comes from Sandy Draper with Guggenheim. Please go ahead. Sandy. Hey, how are you? Not a lot left to ask here. Maybe just a balance sheet question on the other side of the interest rate environment, as you mentioned, Tyson, the variable rate debt. Could we be thinking about, it looks like you're on track to do, I don't know, say round numbers, $100 million in free cash flow this year. That would likely grow next year. Is the primary focus gonna be on paying down the debt, and how should we be thinking about the cash, that free cash flow and how you wanna try to bring that debt down? Thanks. I mean, we're gonna generate a lot of cash flow over the next couple of years, right? When you think about how that works, it is gonna be one of the top, you know, items that I'll be thinking about to pay down that debt relative to obviously portfolio acquisition opportunities as they come to market. Again, those may be a little slower just given the negotiations that occur over a terminal value and things like that, Sandy. I gotta say those two things are top of mind. I'd love to make some paydown on that TLA so we can kind of get rid of that headwind. It's there, and that cash balance is starting to raise to a place where we may make that. You know, from a perspective, just get a little bit in the weeds. From a terms perspective, we get to deduct about $350 million. It kind of caps out there of cash to do the terms on our debt, if that makes sense. It's in our queue if it doesn't. You know, I won't get too close to that before we start making a paydown or an acquisition. Got it. Thanks so much. That was my question. Thanks, Sandy. Our next question comes from Sean Dodge with RBC Capital Markets. Please go ahead. Hey, Sean. Hey, good afternoon. This is Thomas Keller on for Sean. Thanks for taking the question. First one, I know there's nothing factored in the fiscal 2024 guidance, and you just touched on it a little bit. As you all think about HSA account growth over the next year or two, do you expect M&A could still be a meaningful driver, or are most of the bigger near-term opportunities for consolidation kind of off the table at this point? No, I think that M&A still has a role or has a role to play, and we continue to have very active discussions. Obviously, you know, this is, as we talked about earlier in the year, you know, this is an environment where we wanna be disciplined about what we do. You know, it can be harder for buyer and seller to come to an agreement. You know, I think the counterweight to that is that the sellers can look at where they stand on the lead tables and understand, you know, apropos of the investment discussion a few questions ago, whether it's CapEx or OpEx, you know, they also understand what they're putting into the business versus what we are and what other leading players are. You know, so there's that to it, too. And I think... I guess my basic view is if I had to guess, about our use of cash, you know, I would guess that, we'd be more likely to be utilizing cash on acquisition opportunities that have high returns for you all, and the shareholders. Certainly if we can, that's what we'd want to do. All right. That's helpful. Thanks. Question on the investment accounts. Have you seen any changes in, like, adoption or interest there, given you've got other options like the enhanced yield product, I guess maybe versus your internal expectations? Or thinking about it a different way, are you making any more of an effort around education on the merits of, you know, one versus the other? We don't. We're very careful not to give guidance to our members or advice to our members with regard to should I be in investments, should I be in cash, and, you know, that kind of thing. We do give advice with regard to through our registered investment advisor with regard to if you're in investments, what you should be in. Generally, we are, you know, we will do a lot in terms of education to help people understand the long-term value of being in investments. I guess my view is that if I look at HSA behavior relative to the behavior of other types of investment accounts that are out there during this year's period of, you know, where we've had, you know, there hasn't really been a great place to hide in terms of, you know, your stock, you know, broadly speaking, equities, fixed income, et cetera, my view is that our members have held up remarkably well. You know, ultimately, we're looking at, first of all, you know, in terms of the aggregates, I mean, we're looking at 23% asset growth. If you look at average account balance, average account balance at HealthEquity has actually grown by a little bit on a year-over-year basis, notwithstanding the fact that, both that, you know, within our industry more broadly, certainly that has not been the case per Devenir. If you look at, again, much more broadly at traders or pay balances, I think it's fair to say that those folks would be very happy with flat year-over-year, or slightly up year-over-year account balances. I'm pretty pleased with the predictability of behavior that we've seen around the products. Thanks, Thomas. All right. Thanks. Our next question comes from David Larsen with BTIG. Please go ahead. David. Hi. Hey, how are you? Can you please talk about health card revenue and also commuter revenue? How is that trending this quarter relative to expectations, and what's baked into guidance? I think at sort of the peak headwind year, Was it about a $30 million headwind for those two businesses? Just any color around how that's trending relative to your expectations. Thanks a lot. I mean, I think overall they're within the range of how I would think about forecasting them. They're definitely not exceeding my expectations in any event. Stuff is kind of, it's kind of slowly coming back through, and I'm not gonna really ever think about getting ahead of that again. I think it kinda is what it is. It's becoming a very small part of the business when you think about low single digit contributions, even though it is at high margin from a perspective of the product. From a card perspective, you know, we were talking about this a little earlier in the Q&A, probably a little light in Q3, but again, within the range of reasonableness. We're talking about a few hundred thousand dollars a month where it's just, you know, kind of a little bit below expectations. I don't know what to make of that. It's hard to forecast anyway 'cause it's transactional. I think it was, again, in the, in the realm of reasonableness. Q4 is interesting because that's the use it or lose it quarter, you kinda see what people do, and then that's the heaviest quarter of spend. I guess last thing I'd say is, I think, Jon Kessler mentioned this, it's, again, more on the FSA side versus the HSA side. The HSA side seems to be very steady. People use that in a much more steady way 'cause it's a longer- term account. You, you get the volatility on the FSA side when you kinda get the reactionary things to whether it be legislation or use it or lose it. Great. Thanks very much. Then in terms of wage synergies, I think the guidance had called for $80 million in annual synergies. Where are you at that $80 million, and how much sort of incremental benefit are you expecting for next year, fiscal 2024? I mean, we've done the work, we've hit the number. We reported that $80 million. You know, as far as, like, the contribution, it's in there and it will run right through. That $80 million's there. What I would say, too, though, is, you know, when you think about revenue, there's not a revenue synergy as part of the $80 million. When you think about the bundled sales approach and the fact that we're selling HSAs up in the 900,000 range over the last, you know, years here versus down in the 700,000 range, there's a macro element to that, but there's also the strategy change that came from WageWorks. That's a benefit of that, along with other things that just we get from scale, whether it be better rates on interchange, whether it be, you know, other things that we can get relative to scale, including, I think, the Enhanced Rates partnerships and having enough cash to really go out and get multiple partners in that area too. There's a lot of synergies that aren't quantified there, but as far as the 80, we're done with that. We're also done with the spend as well, relative to the WageWorks deal. You see the Further spend, which was a much smaller number, you know, working its way through, but decreasing. Therefore, the cash that comes from that, the business generates more cash thanks to the decreasing merger and integration spend. Okay. As a unified product, your go-to-market strategy, I think is probably more effective. It's generating more sales. That's great. Just my last question, in terms of, like, the overall interest rate environment, I think the Federal funds rate is at about 3.8% right now. If you look at the Fed's projections, yeah, they were calling for around 4.8% by the end of, like, calendar 2023. That's 100 basis points up. We're at 6% core inflation. They wanna get it to two. My view is interest rates might go up well above 100 basis points next year. Any thoughts around that, just broadly speaking? Let's say we do end up at around 5% as the Federal funds rate, does that mean your yield is gonna be 500 basis points at some point in time? Thanks. Well, you're getting into fiscal 2025, guys. I, you know, the consistent message there is we're, you know, as we said before on this call, is we'll be put replacing those contracts that were negotiated in that zero interest rate environment with whatever the rates are at that time. If they're, if they're higher at that, at that time, not this January, but next, that's gonna be great for the business. If they're, you know, continue to be high for 2026, 2027, 2028, eventually you've got to do the math and things. You know, you're not necessarily wrong. It's just math, right? It, it works its way through the ladder both ways, up and down. It's a, it's a reasonable thing to talk about. It's just, it's not really there. Okay. Appreciate it. Thank you. Thanks, David. This concludes our question and answer session. I'd like to turn the conference back over to Jon Kessler for any closing remarks. Well, we managed to do that in not quite under an hour, but we're working on it. Thanks all, and happy holidays to everyone, and look forward to talking to a bunch of you in the next few days. If we don't, then again, please, everyone, wishing, you know, wish you a safe and hopefully family-oriented time at the end of December. Enjoy. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.