Good morning, everyone. Welcome to day three of the JP Morgan Healthcare Conference. We're thrilled to have HealthEquity with us this morning. We've got HealthEquity's new CEO, Scott Cutler. We've got CFO, Jim Lucania, and we've got Dr. Neeleman with us today. So with that, let me turn it over to Scott. Thanks so much. It is day nine for me, and it's been a great opportunity for me over the last couple of days to spend time with many of you. Just a little bit about my journey here to HealthEquity: I'm really excited to have the opportunity to partner with Steve and Jim and the entire Team Purple around accomplishing the mission of HealthEquity, which is saving and improving lives. Over the last week, I've had the opportunity to engage with about 100 team members, diving into our operations, our technology roadmap, to look at how can we continue to accelerate our strategy and our mission. And I'm really looking forward to partnering with the team to be able to execute on that strategy. You know, I'm not going to substitute the comic routine of John, but in the spirit of John, you know, John goes out with a bang. We're finishing the year in record form, and what a great tribute to John and the team for what we've been able to accomplish. Many of you have been able to see some of the early results that we put out earlier this week that we're really excited to be able to highlight. One of those is this year, nearly one million new HSAs, now drawing close to nearly 10 million HSA members, with HSA accounts up 13% year on year. It's really exciting as we're driving engagement to see that the assets in the HSA class for us are up 23% year on year, approaching $31 billion. The growth that we're seeing in accounts, what we've seen is a trend that's continued this year, a little bit different than last year. What we're seeing is growth in the small and medium-sized enterprise market, where we have a particular opportunity to help them drive engagement with their members. You know, as I look at the opportunity here, it really is how can we continue to extend our number one market leadership position by leveraging the partners, the network that we have, to continue to grow assets and accounts faster than the rest of the industry. This is a large and growing market. At present today, 37 million HSA accounts against a market opportunity of 110 million households, $135 billion in assets. What we see is the opportunity into the future by 2030: 50-60 million HSA accounts and $300 billion in assets. While this is a significant market opportunity, the penetration of the existing market, there's still tremendous opportunity for us ahead. As you look at employers, about 50% of employers offer high-deductible health plans that would qualify for HSAs. When you move to employees, only about 30% of employees will select a high-deductible health plan where an HSA can be associated with it. And even if you have an HSA account, only about 4%-5% of employees will maximize that contribution. And so we look at the expansion opportunity, again, through our strategy of educating both employers and our members to be able to increase the natural size of this market. Plus, we talked about, we highlighted in our last quarter some of the future expansion opportunities that we see from a regulatory perspective. Steve can talk about this a little bit in the Q&A, but through new regulations, HOPE in particular, we see opportunity to increase the access for HSA accounts to an entire new class of households that could include unions, Medicare, Medicaid, veterans, as an example. So we see that opportunity, and we're optimistic about it. As I come into the industry new, I have a perspective of the opportunity that great consumer experience can drive towards innovation, and this is an industry that's poised for innovation, solving some pretty significant opportunities. One of the challenges in this space is just the affordability of healthcare overall. When you look at the out-of-pocket costs that Americans have to face, which includes premiums, plans, there is an affordability challenge for most Americans. Four out of ten are concerned about their ability to actually pay their premiums. Three out of ten today are sacrificing on care due to affordability, and at the same time as consumers in healthcare want to be more empowered to be able to make their healthcare decisions. Employers, as an example, are also dealing with the challenge of rising healthcare costs and are increasingly looking to technology solutions and partnerships to help their employees drive transparency with their decisioning, but ultimately with a goal to improve their healthcare costs overall. You know, one example of this and the partnership that we can drive in a win-win solution with our clients is highlighted here with a case study with TIAA. I had the opportunity to talk to Ned Goodwin, who runs Total Rewards for TIAA, and he was looking at how can they drive contributions and investment and engagement and look to us as part of our client advisory board with him and along with 30 other super engaged partners of ours looking to partner with us to help drive these results. TIAA, a great example in the financial services industry where we have a lot of clients, they've been able to, in this type of partnership, be able to drive employee adoption of 80% into a high-deductible health plan. By doing so, they've been able to reduce their HD or high-deductible health plan costs by 28% relative to traditional plans. I think most importantly, if you look at employers that are dealing with a 5%-10% increase in healthcare costs year- over- year, they were able to drive a 50% lower increase in their healthcare costs, again, by engaging with their employees, educating them, driving, again, both investments, contributions, and the actions that their associates are taking in partnership with us. My background, as many people know, is really in the technology industry, broadly speaking, and I like to think about the network effect of this business. It starts with an open platform. What we mean by an open platform is our ability to partner with our clients, whatever partners that they are using from a network perspective, from a plan perspective, and have an open platform in terms of integration. When we look at the 17 million members that we serve, over 100,000 clients that are our partners, plus the network partners that we go to market with, we're looking at how we can continue to build products and services that leverage all of the experience that we're able to provide and continually improve the products and services that we're able to re-release out into the market. And so you think about the insight that we have in terms of members, how they're contributing, how they're thinking about this as an asset class, how they're leveraging claims and reimbursements and eligibility for healthcare decisions, and then to be able to use the data, the insights that come out of this to be able to drive more awareness for our employees and more adoption for our clients for these types of solutions. This kind of goes into what we've already highlighted as our. It's actually one behind. Oh, it's one behind. Oh, it's on my screen, it's a little different. Okay. Thanks. No problem. Now you're on the 3Ds. Great. Thanks. Speaking to other slides, so as I look at our 3D strategy, which we communicated a little over a year ago, we have an incredible mission, which I don't intend to change. We've got a great strategy that has got a lot to deliver on that I don't expect to change, but I'm really excited about how, through the lens of my experience, I can help enhance and accelerate this strategy. You know, first one is really how we deepen partnerships, and this is really about leveraging all of the data and the insights that we have and the network of partners to deliver an integrated platform and system to our clients. Deliver remarkable experiences is really core to our mission, something, what we call Team Purple, our culture, is really excited about, and how is it that we can deliver a remarkable experience for both clients and members. And then ultimately for us, which we believe is our competitive differentiator, is how is it that we can drive member outcomes with a focus on benefits, with a focus on healthcare, and empower our members to really make better financial as well as healthcare decisions. So going a little bit deeper into deepening partnerships, again, we're leveraging our network of partnerships to be able to go to market with industry-leading solutions. When we're going to market, three out of four of our sales are leveraging this partnership or our partnership channels as we're going to the market. A couple of products that we're excited about, one of them is Analyzer. Analyzer is a product that is used by now thousands of enterprise clients. It's touching about a million members. This is putting into the hands of our employers based on utilization and usage across our entire network to empower our clients and to be able to look at the construction of their plan, their benefits, to be able to optimize that experience for both investment, contribution, and engagement to, again, help them accomplish their desire of decreasing their healthcare costs and having a more engaged employee set. Navigator is a product that we're really excited about. We're just now in beta on this. We're expecting this next year to be able to release out into the world. And this is, again, putting a product in the hand of our members to drive more transparency and awareness when you're making healthcare decisions so that they can actually have ownership in these decisions, which, again, has a win-win benefit for our clients that are able to provide this to their employees. As I said, delivering remarkable experiences is core to our mission. As you know, with Team Purple, our cultural values, this is something that our team is really inspired about. As I come into HealthEquity, I think about this in terms of what the consumer expectation is today. You know, today's consumer is digitally native. Their expectation is probably a digital-first, mobile-first experience that's seamless, integrated, frictionless to how they expect other applications to operate. Nine out of ten of those customers desire, when they contact us, to have a consistent experience across phone, across chat, around the engagement. So there is an expectation for a technology-enabled, digital-first, real-time solution from customers today. What I'm excited about when I look at our roadmap, a couple of things. Last year, we reintroduced the mobile app experience. The mobile app today is used by about a million of our members. And we're leveraging things like AI, generative AI, to improve the way that customers can interact with us. And so here, we're actually showing a product that is in limited release that we'll be rolling out through other clients later on this year, which is ClaimsAI. ClaimsAI is, again, leveraging all the data and the insights that we have across the network to be able to have an automated, real-time way for somebody to be able to take a picture of a claim, submit that, and have an automatic real-time reimbursement in a process that today could be phone-based, paper-based, with a fair amount of friction, so we're really excited about leveraging new platforms and technology to deliver services like this. We've rolled out over the course of the last year. You've heard about chip cards, integrating all of the different stack platforms that we have, and we're really excited in the first half of this year to build off of that experience to release out into the market a digital wallet that, again, is kind of the expectation for a lot of consumers. It hasn't been necessarily the expectation in our part of the market, but a really exciting opportunity for us to leverage an experience in digital wallet to, again, deliver a great digital-first experience for our members, and last is really strategy around driving member outcomes. This is our competitive differentiator. When you think about the HealthEquity Open Network, one of the things that differentiates us from other providers, HSA providers, that could be in banks or other financial institutions or institutions that are focused on retirement benefits, is really the focus here on, can we empower our consumers to make wise healthcare decisions? Our opportunity here is to actually reach our members to be able to provide content, information, education to help them drive awareness. And what we know is that when we can engage with our members in this way, we're able to drive industry-leading results, which is shown here on the upper right, which is 46% higher HSA contributions, 19% higher balances, 60% higher investing rates. Why is that important? Because ultimately then the member is empowered to make the healthcare decisions that are right for them, financially responsible, and for our clients to be able to help them deliver solutions that help them manage their costs going forward. We're also introducing new products like HPA, which is, again, trying to overcome some of the challenges that some people might have in terms of signing up for a high-deductible health plan. And so, again, it's just different opportunities to help do that, all with the challenge of how is it that we can empower healthcare consumers. You know, one good example of this in the public sector is the State of Louisiana, 12,000 eligible employees. Here, Chris and Andy came to us actually last summer with real ideas as to how to leverage training tools, data, insights, and could they, with education, help drive HSA adoption across their platform. And what they were able to accomplish is really remarkable. One, they were able to, in a year, increase HSA adoption by 20%, really exciting, and then a 38% average investment balance for their team. And when you think, again, going back to the affordability issue, empowering these employees to think about their healthcare future by driving up that investment balance prepares them for the future when they are going to need to be able to have investment assets available for their healthcare needs into the future. So I look at it as like, why HealthEquity? Why am I really excited about this opportunity? We really talked about how big this market is and the opportunity for us to drive further engagement in the market opportunity itself. We're optimistic about how the market can continue to expand. I'm also optimistic about our ability to be a market share leader as that market continues to grow. I'm really excited about the integrated ecosystem that we have, network partners, open platform, and our position to be able to deliver real win-win solutions for our clients and our members. Last, with our focus here on the consumer benefits experience, this is a point of differentiation that I really look to us to continue to enhance and to differentiate so that we can continue to be in that number one position in the market overall. I've developed, in partnership with the board, with Steve and with Jim and the team, on an onboarding plan. I'm new to the industry. I'm leveraging maybe a different perspective coming into this opportunity, and so what are the things that I'm going to be focused on as a CEO coming into a great transition plan and a great transition from John? Number one is culture. The culture is what really drives the action. It motivates the how of what our team is doing every single day, and this is a very strong purple culture, and that purple culture is really tied to the strategy that we've laid out. And so what I'm going to be doing is really engaging with our team and making sure that our culture is ready for the solutions that we have to deliver and what are the opportunities through my lens to be able to enhance that culture for us to continue to innovate and be ahead of the market. On the business side, this last week has been great for me. While it's been a few short days, we have something called Service huddles every single day, 7:30 A.M., where we have the opportunity to highlight the things that we're doing in partnership with our clients and our members in the open enrollment season, which we're still in the middle of, and to be able to see what are the opportunities that we have as a platform to continue to improve the service and the execution. I'm really excited to be diving into our product and tech roadmap. A lot to do for me in working with our over 3,000 teammates across the U.S. and across all the functions that we have to serve and deliver against our strategy. On the operational side, I guess what I'm really looking for is how is it that we can continue to enhance the execution velocity, the speed, and the quality of the service that we can deliver. Again, I'm humbled with the opportunity. I look forward to partnering and certainly to receive your feedback as shareholders and investors as we continue to drive this forward. I'm really honored to have great partners along my side. Steve carries the founder's ethos, super engaged in this business, really excited about his vision and participation and the financial expertise of Jim. I'm really honored to be a part of this team and really excited to start my journey at this time. And so with that, we'll open this up for Q&A. Thank you so much, Scott. That was terrific. I'll ask, maybe start with the first couple of questions. If anybody has a question, raise your hand. We'll be sure to get you a mic. Scott, you answered some of this already, but I want to ask you, you're new in the seat. I think you said nine days. What attracted you to the opportunity coming to HealthEquity? And as you think about some of your prior experience, maybe outside of the HSA or healthcare industry, how can you apply some of that to your current role? Yeah. I mean, I said a little bit on my opening remarks. It really starts with the mission. It's powered by the culture. To me, that's just an ante, and effectively, companies that I think have strong mission orientation and strong culture are best positioned to be able to succeed. Then, as I highlighted, when I now have the experience of being a CEO or a member of a senior management team across multiple different industries, one thing is consistent, and that is staying abreast of technology trends is really important for every platform. So from a HealthEquity perspective, as an example, making the move to the cloud, away from on-prem, the opportunity to have a more digital-first native mobile experience, I've been able to see that roadmap across multiple different industries. And I'm really excited. I guess the more recent lens that I bring to it is what does today's consumer expect of us? And while we serve clients, which is enterprise, ultimately for us to deliver a great member experience, it really is about the quality of the product and the tech offering that we have. And so I'm excited about that perspective and potentially enhancing the things that we're focused on. Maybe to that point, I think HealthEquity is known for being more maybe kind of user-friendly than the competition, kind of easier to use, more consumer-focused. Can you maybe talk, I mean, again, you're kind of engaging with this product or this company for the first time? When you think about technology opportunities to kind of enhance the product, are there any kind of immediate areas where you think that that can really be bolstered? And where is the low-hanging fruit as you think about your roadmap? Well, I mean, it starts with the focus. When we've got to focus on driving healthcare outcomes for our members, everything that we're able to deliver up should serve that mission. Again, when I kind of look at the mobile experience itself, having the opportunity to drive awareness about how an HSA itself can be an asset that I can contribute, I can grow it as an investment, and then ultimately how it can potentially be integrated into spend decisions. One of the things I didn't highlight in the presentation on the solution side is how seamless that can be on the spend side. And so we have integration, for example, with the FSA Store. For example, you've got your FSA card to be able to see FSA qualified expenditures, have that ability to seamlessly participate in a marketplace like that. We have a partnership with Amazon. We have other marketplace partners that are looking to us to, again, provide a seamless experience, again, out of that investing and contribution into the spend side. I think that really is our differentiator. And the more that we can have that as an engaged and informed and seamless consumer experience focused on healthcare, that is what differentiates us from a financial institution who's probably more focused on gaining assets and thinking about it through a different lens. That's great. When you think about the overall HSA market, you're still kind of underpenetrated both in assets and kind of accounts and assets. And this is maybe kind of a question for all of you, but how do you think about driving kind of increased penetration? What are some of the catalysts there? You talked about kind of engaging more, teaching people how to use their HSAs more wisely. I imagine that would probably kind of increase the assets part. But how do you drive both of those levers? Yeah. I mean, it's education that powers awareness. Awareness as to why should I have a high-deductible health plan and then associate an HSA? The simple reality for all of us is that by the time we retire, we have to have $200,000 of assets that are set aside to be able to spend for future healthcare decisions. The HSA as an asset, since you can contribute tax-free, it grows tax-free, and then you can spend it tax-free. When it comes down to that time where you have to be able to use that money, this is effectively the best vehicle to address something that all of us need. And so, again, I think for us, the education on why this is important for members and employees is extremely important. And as the market share leader, we have to drive that education. We still see big opportunity, but we know on the client side, since we've got hundreds of thousands of clients, we know that if we engage better, provide better data, insights, tools, we can actually, as we showed in a couple of case studies, drive the adoption for these types of plans for their employees. I don't know if you have something else to add. Yeah. I'll just add a couple of thoughts. And I think he thinks about it the right way. Number one, we have this installed base, right? And we've run certain scenarios with large employers, a little bit more kind of what I would call older, slower employers. And if you ran 100 different scenarios on whether one of their folks should have an HSA plan, even with a higher deductible or a traditional plan, every single time, every single time, the HSA is beneficial. And yet they may be sitting at 30% adoption. So there's not rationality there. So we'll educate and educate. And we have big, nice, large, and even older employers that are up to 60%-70% adoption. So that's that great opportunity for current growth. But imagine having an AI bot that just says, "Hey, tell me what the best," and people start to transfer some of that trust to an AI solution. What's the best plan for me? I'm telling you, every single time, the AI bot would say, "You're crazy," and it'll sign up for the HSA plan. And so we're working with those types of solutions, and it's working. But the other way to do it is if you work with a client at the right level and you explain to them why it's better for not only all of their people to have an HSA qualified plan, but also for them as the payer. He gave the example of TIAA that dropped their cost by 50%. Then they can make it easy. Just everyone's in an HSA, right? You're all in an HSA. We put in some guardrails. We've got our HPA product, whatever. But guess what? That's 100% adoption. So that's also the way to get there. And so as we work with our account executive teams, it's like, what does it take? Is this always going to be a choice? Or is this client one that wants to set it up in a way where you may have a choice between a lower high-deductible plan or a higher high-deductible plan, but that's your choice? Guess what? Everyone gets an HSA, which is another way to do it. I mean, I guess the way you described is kind of maybe how I think about it as well. There's the employer, and then there's the members. And those are kind of two battles that you're fighting to drive engagement. And the partners because we have the partner channel too. Right. Yeah. I mean, I guess as you think about the employers, when they don't have an HSA, for example, we don't have an HSA. We're very aware of that. Yeah, you've been aware of that for a while. What is their reason for not wanting to have an HSA? I said that some employers are older and slower. Look, we've gone into this for a long time. I think that, look, whoever named it the high-deductible plan. Horrible at marketing. Yeah. That person did not get a marketing degree, right? Right? This has been an issue for 20 years, right? And so that's one of the reasons why we're looking at some legislative initiatives that could allow people, even at J.P. Morgan, to have a custodial account, a personally owned portable investable account, just because it's not an HSA, it could be called something else, right? And so there is some legislative initiatives there. But I think, honestly, it's old-fashioned thinking, thinking that, "Oh, well, our people are better off by having maybe a little bit lower deductible." I'm assuming you still have a deductible. Oh, yeah. I'm assuming that it's a. It's not low. It's not that low. I'm assuming it's death by a thousand cuts. I'm assuming when you leave JP Morgan, you're not taking that account with you. That's a problem. I don't know how else to say it. Unless it's your account and it's personally owned and it's portable and it's investable, you're not taking care of your folks. Great commuter client in the meantime. Yeah. You're a great consumer client. We'll get there. Yeah. We'll get there. We're working on it. And we have examples, right? We presented a case study of Pfizer a couple of years ago where for 20 years, they did not do it for different reasons. And now they're all in, and they're seeing their adoption go up, and they had a great onboarding experience, so. Thank you, Dr. Neeleman. I wanted to maybe kind of dig into a little bit of what you were saying around legislation because I feel like we went through a period of time where there wasn't really anything, right? I think we had maybe when I first started covering you in 2017, right, that we were kind of talking about maybe expanding for the over-65 population being able to maybe kind of continue contributing post-retirement, but now, after that, we didn't really hear anything, so it seems like you've got this kind of renewed energy around legislation, so can you maybe talk about Sure. What's going on there and why? Jim's been helpful because he continues to support our efforts financially to invest in this. Look, we think it's one of those things that with the current, after the inauguration, a new administration will be in place. They've stated publicly, people that are going to be joining their administration, that they're very supportive of HSAs. They think all Americans should have them. We also realize the financial reality of it, and so we're supportive of the HOPE Act, which was introduced a few months ago, HR 9394, which would allow every American, as long as they're in ACA credible coverage, to have a personally owned portable investable account. And we think right now there's not only a tailwind in the business for the reasons that Jim likes to talk about, but there's also a tailwind in the business legislatively because people realize that you cannot accept the fact that 54% of American families cannot afford a $500 emergency expense right now. And Scott mentioned that a third of all American families, therefore, avoid healthcare because they can't afford a $500 emergency expense. We can fix that with either the HOPE 9394, if that gets passed, it's going to be reintroduced, we understand, in the new Congress, or HSA expansion, or both. And we win in both cases, HOPE Act, HSA expansion, or both. That's great. Maybe we could just touch on the competitive landscape because I think a lot of what we hear out there is price is really the differentiator. I know that you would probably very much disagree with that. So can you maybe talk about how does price factor in, but also what are you why do you win? Who are you winning against? Who are you taking care of from? Jim, you want to take that? Yeah. Yeah. Yeah. I would hazard to bet that for us, price is not the differentiator. I would bet that we have a higher average price, sort of administrative fee price than across the industry. So perhaps others do need to compete on price, and we try to compete on the service and the experience and that just interconnectivity with the partners, whether that's the plan or the broker channel. So I think we're coming at it. Look, competition is great, great for the industry, great for consumers, great for clients. We have strong competitors. We'll continue to have strong competitors, but we are, in a way, playing slightly different games, and in a rapidly growing market, there's room for all of us there. So next to us in assets would be Fidelity. I think Steve sort of alluded to maybe playing more of an asset accumulation game, doing a great job going after rollover HSA assets. Optum maybe looks a little more similar to us, but playing in the walled garden of United, which is a great walled garden to be playing in, but we have the interconnectivity with the whole rest of the market as well as United, and so to their credit, they recognize we'll lead with Optum, but if you want to be a HealthEquity client, we'll integrate with HealthEquity as well, so I think much like the industry I came from in retirement, there's plenty of coopetition that happens in that space as well, and there's a lot of room for each of us, but share-wise, yeah, we're clearly the one that's picking up the most share in accounts and probably close to Fidelity in assets. They're playing a little bit different game. Two years of plus 20 market definitely helps the larger investment balances. Right. And we're going after that client channel, adding lots of new accounts that start at $0. And we start helping those folks on the savings journey. Great. One other way that you can kind of capture share is just through market consolidation, so you talk about the opportunity for that, and then also just as we think about maybe capital deployment more broadly, you've done some transformative acquisitions. When we think about WageWorks, you've done some kind of portfolio acquisitions to grow your accounts. I would think as you're kind of moving down this leg of maybe integrating more technology and thinking about AI, that might be an area of opportunity for you around M&A, but just how are you thinking about it maybe within that framework? Maybe I'll start. Yeah. I think first and foremost, we obviously have a track record of doing highly strategic M&A transactions. I think when we look at a couple of different things, one on industry consolidation, again, for us, the interest would be bringing over asset portfolios, which we've done, which is more integration light in a sense. It's just essentially a replace and move over, not taking platforms and people and high integration expenses associated with it, and so we're going to continue to look at those opportunities when possible. I think with respect to other things that we can do, obviously, we play in a large ecosystem, and you could have lots of different perspectives as to how we can expand that opportunity. We will take a very high bar associated with inorganic opportunities because, number one, we have a really strong financial model that we're really excited about. And number two, as we look at the hundreds of thousands of point solutions that are out there, there are very few high-growth, profitable, strong, sustainable business models. And so we really look at our strategy first and foremost is executing within the power of our network, delivering better solutions. And we think, given what we talked about in terms of the number of employers that are adopting these plans, the number of employees that are engaged, we've got big opportunity to drive market expansion within our network. Yeah. No, I totally agree with that, and yeah, and I think all of you guys sort of see the type of deal that we did in this current fiscal year in BenefitWallet. We'd love to keep doing deals like that. Obviously, there are fewer large portfolios such as BenefitWallet around, but there is an extremely long tail of HSA service providers in this marketplace, so that effort has never stopped. We've got a corporate dev team right there. They are looking to add these portfolios. They just might not always be to the scale of BenefitWallet that can move the needle all at once. Great. We have two minutes left. Scott, when we're here sitting here next year, how should we measure your success kind of relative to your goals for your first year in the job? Yeah. I mean, I guess that will be day 376 for me, a year from now. We've got a really strong track record, at least communicating with this audience of being really transparent and executing on our guidance. I think we're in a fortunate position to be able to have a long-term view as to how we're going to continue to grow the business. And in terms of my success, I think is, again, working with Jim, working with Steve on continuing to build that credibility of delivering what we say we're going to deliver. And I look at the opportunity to enhance our strategy, I hope, is that what you'll see from us is maybe a renewed emphasis on that experience that's going to really be state of the art from a technology perspective. We've got a great roadmap underway, but accelerating the delivery of that is super important for our strategy. And I think when it comes to the service and the experience itself, we've got a lot to do. So that's how I'm going to judge the first year. Terrific. Well, thank you so much for sharing your time with us today. Thank you. Thank you. Thank you.