WAY
Waystar Holding CORP
NASDAQ
8-K: Waystar Reports Strong Q3 2024 Results with 22% Revenue Growth
Sentiment:
Quarterly Report
6 November 2024 4:07 PM
Waystar announced a 22% year-over-year revenue increase for the third quarter of 2024, reaching $240.1 million, alongside a net income of $5.4 million.
Better than expected
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.
Summary
- Waystar reported its financial results for the third quarter of 2024, showing significant growth.
- The company's revenue reached $240.1 million, a 22% increase compared to the same quarter last year.
- Net income for the quarter was $5.4 million, with a net income margin of 2%.
- Non-GAAP net income was $25.3 million, and adjusted EBITDA reached $96.7 million, with a 40% margin.
- Waystar's cash flow from operations was $79 million, and unlevered free cash flow was $89 million.
- The company has 1,173 clients contributing over $100,000 in LTM revenue, a 14% year-over-year increase.
- Waystar's net revenue retention rate is 109%.
- Subscription revenue was $118 million, up 16% year-over-year, while volume-based revenue was $120.7 million, up 28% year-over-year.
- For the full fiscal year 2024, Waystar expects total revenue between $926 million and $934 million, adjusted EBITDA between $374 million and $378 million, and non-GAAP net income between $47 million and $50 million.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong revenue growth, solid EBITDA margins, and a high net revenue retention rate. The company's guidance for the full year is also positive. However, the low net income margin and the risks mentioned temper the overall sentiment slightly.
Positives
- Waystar experienced a significant 22% year-over-year revenue growth, demonstrating strong market demand.
- The company's adjusted EBITDA margin of 40% indicates efficient operations and profitability.
- A net revenue retention rate of 109% shows high customer satisfaction and recurring revenue.
- The number of clients contributing over $100,000 in LTM revenue increased by 14% year-over-year, indicating growth in larger accounts.
- Both subscription and volume-based revenues showed strong growth, with volume-based revenue growing at 28% year-over-year.
Negatives
- The company's GAAP net income margin is relatively low at 2%, indicating potential areas for improvement in cost management.
- The company reported a net loss of $38.2 million for the nine months ended September 30, 2024.
- The company's net income per share is only $0.03 for the quarter.
Risks
- Waystar operates in a highly competitive industry, which could impact its ability to retain and attract clients.
- The company's success depends on its ability to execute its business strategies and integrate acquired businesses.
- Changes in healthcare regulations and the political landscape could negatively affect Waystar's revenue.
- The company is exposed to risks related to data privacy, security breaches, and compliance with various laws and regulations.
- The company's reliance on third-party vendors and providers could pose operational risks.
- The company's financial performance is subject to macroeconomic conditions and interest rate fluctuations.
Future Outlook
Waystar expects full fiscal year 2024 total revenue to be between $926 million and $934 million, adjusted EBITDA between $374 million and $378 million, and non-GAAP net income between $47 million and $50 million.
Management Comments
- Matt Hawkins, Chief Executive Officer of Waystar, stated that the company delivered another quarter of strong top-line growth.
- He also mentioned that the company is investing in AI-driven automation to drive client return on investment.
Industry Context
The healthcare payment software industry is experiencing growth as providers seek more efficient payment solutions, and Waystar's results reflect this trend. The company's focus on AI-driven automation aligns with the industry's move towards technological advancements.
Comparison to Industry Standards
- Waystar's 22% revenue growth is strong compared to some established players in the healthcare technology sector, such as athenahealth, which has seen growth in the high teens.
- The 40% adjusted EBITDA margin is competitive with other SaaS companies in the healthcare space, such as Veeva Systems, which often reports margins in the 35-40% range.
- The 109% net revenue retention rate is a positive indicator of customer satisfaction and is comparable to best-in-class SaaS companies, such as Salesforce, which often reports NRR above 100%.
- However, companies like R1 RCM, which focus on revenue cycle management, may have different financial profiles due to their service-oriented business model.
Stakeholder Impact
- Shareholders will likely view the strong revenue growth and positive financial guidance favorably.
- Employees may benefit from the company's growth and success.
- Customers will likely see continued investment in the platform and improved services.
- Suppliers and creditors may see increased business opportunities with Waystar.
Next Steps
- Waystar will discuss its financial results on a conference call scheduled for November 6, 2024, at 4:30 p.m. Eastern Standard Time.
- The company will continue to post important information on its website, including corporate and investor presentations and financial information.
Key Dates
- 2024-09-30: End of the fiscal quarter for which results are reported.
- 2024-11-06: Date of the earnings press release and conference call.
Keywords
healthcare payment software, revenue growth, EBITDA, net income, financial results, SaaS, subscription revenue, volume-based revenue, net revenue retention, financial guidance
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.