WAY
Waystar Holding CORP
NASDAQ
S-1/A: Waystar Holding Corp. Files for IPO, Aiming to Simplify Healthcare Payments
Sentiment:
S-1/A Filing
16 May 2024 11:56 AM
Waystar Holding Corp. is going public to raise capital for debt repayment and general corporate purposes, seeking to streamline healthcare payments through its cloud-based software.
Capital raise
Waystar Holding Corp. is proposing an initial public offering of its common stock.
The company intends to list its common stock on the Nasdaq Global Select Market under the symbol WAY.
The IPO aims to raise funds to repay debt under the First Lien Credit Facility and for general corporate purposes.
The underwriters have an option to purchase up to additional shares of common stock from the company.
Summary
- Waystar Holding Corp. has filed a registration statement for its initial public offering (IPO).
- The company intends to list its common stock on the Nasdaq Global Select Market under the symbol WAY.
- The IPO aims to raise funds to repay debt under the First Lien Credit Facility and for general corporate purposes.
- Waystar provides cloud-based software to simplify healthcare payments for providers and patients.
- The company serves approximately 30,000 clients, representing about one million providers.
- Waystar facilitated over five billion healthcare payments transactions in 2023, totaling over $1.2 trillion in gross claims volume.
- For the year ended December 31, 2023, Waystar generated revenue of $791.0 million, a net loss of $51.3 million, and Adjusted EBITDA of $333.7 million.
- The company's Net Revenue Retention Rate was 108.8% for the twelve months ended March 31, 2024.
- J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, and Barclays Capital Inc. are acting as joint book-running managers for the IPO.
Sentiment
Score: 7
Explanation: The document presents a generally positive outlook for Waystar, highlighting its growth, market position, and innovative platform. However, the company's history of net losses and the competitive landscape temper the overall sentiment.
Positives
- Waystar's cloud-based software simplifies healthcare payments, potentially reducing administrative costs and improving efficiency.
- The company has a large client base, serving approximately 30,000 clients and one million providers.
- Waystar has demonstrated recurring revenue and growth, with a Net Revenue Retention Rate of 108.8% for the twelve months ended March 31, 2024.
Negatives
- Waystar reported a net loss of $51.3 million for the year ended December 31, 2023.
- The company operates in a highly competitive industry, which could put pressure on pricing and margins.
Risks
- The company operates in a highly competitive industry.
- Waystar's ability to retain existing clients and attract new clients is critical to its success.
- The company's growth strategies may not be successful.
- The company may not be able to accurately assess the risks related to acquisitions and successfully integrate acquired businesses.
- The healthcare regulatory and political framework is uncertain and evolving.
- Privacy concerns and security breaches or incidents relating to the company's platform or data could result in economic loss and reputational damage.
Future Outlook
The company expects to continue to grow its market share by virtue of its differentiated platform and capabilities and expects to expand its TAM further over time as it develops new solutions and addresses adjacent workflows.
Industry Context
The healthcare industry is undergoing a shift towards digital solutions to address administrative inefficiencies and improve the payment process. Waystar is positioned to benefit from this trend with its cloud-based platform and comprehensive solution set.
Comparison to Industry Standards
- The document does not provide enough information to make a detailed comparison to industry standards.
- To make a comparison, we would need to know the growth rates, profitability, and customer retention rates of Waystar's competitors, such as Change Healthcare (now part of Optum), athenahealth, and R1 RCM.
- We would also need to know the average market share and customer satisfaction ratings of these companies.
Stakeholder Impact
- Shareholders: The IPO will provide existing shareholders with liquidity and the potential for capital appreciation.
- Employees: The company's equity incentive plan will provide employees with the opportunity to acquire an equity stake in the company.
- Customers: The company's continued innovation and investment in its platform will benefit customers by providing them with more efficient and effective healthcare payment solutions.
- Creditors: The company intends to use the proceeds from the IPO to repay debt, which will improve its financial position.
Next Steps
- The company will file the final prospectus with the SEC.
- The underwriters will market the shares to potential investors.
- The company will complete the IPO and begin trading on the Nasdaq.
Related Party Transactions
- Affiliates of Bain and CPPIB are lenders under the First Lien Credit Facility.
- Canada Pension Plan Investment Board has an ownership interest in the company and a significant interest in the landlord that leases the company office space under an operating lease agreement in Houston, Texas.
- Bain Capital LP has an ownership interest in the company and a significant interest in some clients for whom the company provides software solutions.
- Bain Capital LP has an ownership interest in the company and a significant interest in a vendor that provides the company with software solutions.
Key Dates
- August 13, 2019: Original Certificate of Incorporation filed for Derby TopCo, Inc.
- October 22, 2019: First Lien Credit Agreement entered into.
- August 13, 2021: Receivables Financing Agreement entered into.
- October 31, 2023: Amendment to Receivables Financing Agreement.
- February 9, 2024: Eighth Amendment to the First Lien Credit Agreement executed.
- May 16, 2024: Date of S-1/A Filing
Keywords
healthcare payments, cloud software, revenue cycle management, IPO, Waystar, Nasdaq, EBITDA, SaaS, FinTech, AI
WAY
Waystar Holding CORP
NASDAQ
Sector: TBD
Filings with Classifications
Better than expected
30 April 2025 8:06 PM
Quarterly Report
- The company's revenue increased by 14.1% compared to the same period in the prior year.
- Net income improved significantly from a net loss to a net income of $29.3 million.
- Adjusted EBITDA increased by 16.2% compared to the same period in the prior year.
Better than expected
30 April 2025 4:05 PM
Earnings Release
- The company raised its full-year revenue and adjusted EBITDA guidance, indicating better-than-expected performance.
- The company's Q1 revenue growth of 14% year-over-year exceeded initial expectations.
Worse than expected
26 February 2025 4:30 PM
SEC Form 4 Filing
- A major shareholder selling a significant number of shares is generally viewed negatively by the market.
Capital raise
20 February 2025 9:00 PM
Registration Statement
- Waystar Holding Corp. is registering 2,300,000 additional shares of common stock.
- The proposed maximum offering price per share is $40.00.
- The maximum aggregate offering price for the new shares is $92,000,000.00.
- The underwriters have an option to purchase an additional 300,000 shares.
Better than expected
18 February 2025 6:46 AM
Annual Results
- The company's net loss decreased from $51.3 million in 2023 to $19.1 million in 2024.
- The company's revenue increased from $791.0 million in 2023 to $943.5 million in 2024.
Better than expected
18 February 2025 6:45 AM
Earnings Release
- The company's revenue and adjusted EBITDA exceeded expectations for the fourth quarter and full year 2024.
- The net loss improved significantly year-over-year.
- The company's guidance for fiscal year 2025 indicates continued growth and profitability.
Better than expected
30 December 2024 4:10 PM
Credit Agreement Amendment
- The document indicates better results as the company has secured lower interest rates on its term loans and revolving credit facility, which will reduce its borrowing costs.
Better than expected
6 November 2024 4:14 PM
Quarterly Report
- The company's net income of $5.4 million in Q3 2024 is a significant improvement from the net loss of $15.5 million in Q3 2023.
- The company's revenue growth of 21.7% year-over-year is a strong performance.
- The company's adjusted EBITDA increased year-over-year, indicating improved operational efficiency.
Better than expected
6 November 2024 4:07 PM
Quarterly Report
- The company's revenue growth of 22% year-over-year exceeded the 20% growth reported in the previous quarter, indicating an acceleration in business performance.
Capital raise
7 August 2024 4:07 PM
Quarterly Report
- Waystar completed its initial public offering (IPO) in June 2024, issuing 45,000,000 shares of common stock at $21.50 per share.
- The company received total proceeds of $914.3 million after deducting underwriting discounts and commissions.
- The underwriters exercised their option to purchase an additional 5,059,010 shares, resulting in additional net proceeds of $102.8 million.
- The company used the net proceeds from the IPO to repay $909.1 million of outstanding principal indebtedness under its First Lien Credit Facility.
Worse than expected
7 August 2024 4:07 PM
Quarterly Report
- The company's net loss increased significantly compared to the same period last year, driven by higher operating expenses, particularly stock-based compensation and third-party fees related to debt repricing.
Capital raise
28 May 2024 6:32 AM
Merger Announcement
- Waystar Holding Corp. is planning an initial public offering (IPO) to sell 45,000,000 shares of its common stock.
- The anticipated price range for the shares is between $20.00 and $23.00 per share.
- The underwriters have an option to purchase up to 6,750,000 additional shares.
- Neuberger Berman Investment Advisers LLC and a wholly owned subsidiary of Qatar Investment Authority (QIA) have indicated an interest in purchasing up to an aggregate of $225.0 million in shares of common stock in this offering at the initial public offering price.
- The company intends to use the net proceeds from this offering to repay outstanding indebtedness under its First Lien Credit Facility.
Capital raise
16 May 2024 11:56 AM
S-1/A Filing
- Waystar Holding Corp. is proposing an initial public offering of its common stock.
- The company intends to list its common stock on the Nasdaq Global Select Market under the symbol WAY.
- The IPO aims to raise funds to repay debt under the First Lien Credit Facility and for general corporate purposes.
- The underwriters have an option to purchase up to additional shares of common stock from the company.
Capital raise
29 April 2024 5:23 PM
S-1/A Filing
- Waystar Holding Corp. proposes to issue and sell shares of common stock to the several underwriters.
- The underwriters have an option to purchase additional shares of common stock from the company.
- The company intends to use the net proceeds from this offering to repay $ million aggregate principal amount of indebtedness under our First Lien Credit Facility, with any remainder to be used for general corporate purposes.
Capital raise
22 March 2024 5:11 PM
S-1/A Filing
- Waystar Holding Corp. is conducting an initial public offering of its common stock.
- The company intends to use the net proceeds from the offering to repay debt and for general corporate purposes.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.