WAY
Waystar Holding CORP
NASDAQ
8-K: Waystar Reports Strong Q4 and Fiscal Year 2024 Results, Exceeding Expectations
Sentiment:
Earnings Release
18 February 2025 6:45 AM
Waystar announces impressive financial results for Q4 and fiscal year 2024, with revenue up 19% year-over-year and adjusted EBITDA reaching $383 million.
Better than expected
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.
Summary
- Waystar Holding Corp. reported its fourth quarter and full year 2024 results on February 18, 2025.
- Fiscal year 2024 revenue reached $944 million, a 19% increase year-over-year.
- Q4 revenue grew by 18% year-over-year.
- Q4 net income was $19.1 million, while non-GAAP net income was $52.1 million.
- The fiscal year 2024 net loss improved by 62.7% year-over-year to $19.1 million.
- Adjusted EBITDA for fiscal year 2024 was $383 million, up 15% year-over-year.
- The Q4 net income margin was 8%, and the adjusted EBITDA margin was 41%.
- For fiscal year 2025, Waystar expects total revenue between $1.0 billion and $1.016 billion.
- Adjusted EBITDA for fiscal year 2025 is projected to be between $399 million and $407 million.
- Non-GAAP net income for fiscal year 2025 is expected to range from $237 million to $243 million.
- Diluted non-GAAP net income per share is projected to be between $1.29 and $1.32 for fiscal year 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results and optimistic future guidance. The company's growth, profitability, and customer retention contribute to a favorable sentiment.
Positives
- Waystar's revenue grew significantly in fiscal year 2024, demonstrating strong market performance.
- The company's adjusted EBITDA margin indicates efficient operations and profitability.
- The projected revenue and adjusted EBITDA for fiscal year 2025 suggest continued growth and financial health.
- The high net revenue retention rate indicates strong customer loyalty and satisfaction.
- The increase in clients contributing over $100,000 in LTM revenue shows the company's ability to attract and retain high-value customers.
Negatives
- Waystar reported a net loss of $19.1 million for fiscal year 2024, although this is a significant improvement from the previous year's loss.
Risks
- The company operates in a highly competitive industry.
- Waystar's success depends on retaining existing clients and attracting new ones.
- The company's ability to execute its business strategies is crucial for growth.
- The healthcare industry is heavily regulated, which could impact Waystar's operations.
- Macroeconomic conditions could affect Waystar's performance.
Future Outlook
Waystar expects total revenue between $1.0 billion and $1.016 billion and adjusted EBITDA between $399 million and $407 million for fiscal year 2025.
Management Comments
- Matt Hawkins, Chief Executive Officer of Waystar, stated that the company is pleased to report strong results for the fourth quarter and full year 2024, exceeding expectations.
- Hawkins believes Waystar's cloud-based software platform consistently delivers measurable return on investment for clients.
- Hawkins expects solid revenue growth at scale, paired with compelling adjusted EBITDA margins, positioning the company for continued success.
Industry Context
Waystar's focus on healthcare payment software aligns with the industry's increasing need for efficient and streamlined payment processes. The company's growth reflects the broader trend of healthcare providers adopting technology solutions to improve financial performance and patient care.
Comparison to Industry Standards
- Comparable companies in the healthcare technology sector, such as Veeva Systems and Cerner (now Oracle Health), often report similar metrics for revenue growth and EBITDA margins.
- Waystar's net revenue retention rate of 110% is competitive with industry benchmarks for SaaS companies.
- The company's focus on serving a large number of providers and processing a significant volume of healthcare payment transactions positions it as a key player in the healthcare payment ecosystem.
Stakeholder Impact
- Shareholders can expect continued growth and profitability based on the company's financial performance and future outlook.
- Employees can anticipate a stable and growing work environment.
- Customers (healthcare providers) can benefit from Waystar's solutions that simplify healthcare payments and optimize financial performance.
Next Steps
- Waystar will discuss its financial results on a conference call scheduled for February 18, 2025.
- The company intends to continue posting important information on its website, including corporate and investor presentations and financial information.
Key Dates
- 2024-12-31: End of fiscal year 2024
- 2025-02-18: Date of earnings release and conference call
Keywords
Waystar, healthcare payment software, financial results, revenue, EBITDA, net income, earnings, financial outlook
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.