LEHI, Utah, and LOUISVILLE, Ky., Feb. 18, 2025 /PRNewswire/ -- Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, a provider of leading healthcare payments software, today announced a proposed underwritten public offering of 18,000,000 shares of its common stock being offered by certain investment funds of EQT AB, Canada Pension Plan Investment Board, Bain Capital, LP, and their respective affiliates (collectively, the "Selling Stockholders"). Additionally, the Selling S ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 reached $244 million, representing an 18% year-over-year increase, with full-year revenue totaling $944 million, reflecting a 19% year-over-year growth [14][41] - Adjusted EBITDA for Q4 was $100 million, up 16% year-over-year, with a margin of 41%, while full-year adjusted EBITDA was $383 million, equating to a 40.6% margin [19][42] - GAAP net income for Q4 was $19 million compared to a net loss of $14 million in the prior year, and for the full year, the net loss was $19 million compared to a loss of $51 million in 2023 [41] Business Line Data and Key Metrics Changes - The number of clients generating over $100,000 in trailing 12-month revenue grew to 1,203, an increase of 15% year-over-year [16][38] - Net revenue retention rate was 110% in Q4, at the high end of the historical range of 108% to 110% over the past 10 quarters [16][39] Market Data and Key Metrics Changes - Waystar processed over 6 billion insurance transactions and over $1.8 trillion in gross claims annually, generating significant network effects that enhance its AI-powered software [23] - The company reported a 69% conversion of adjusted EBITDA to unlevered free cash flow in 2024, indicating strong operational efficiency [20][45] Company Strategy and Development Direction - Waystar aims to simplify healthcare payments through its software platform, focusing on reducing administrative waste and enhancing operational efficiencies [11][35] - The company is committed to leveraging its strong cash flow profile for reinvestment, pursuing M&A opportunities, and reducing debt [21][46] - Waystar's strategy includes a focus on innovation, particularly in AI capabilities, to improve client value and operational efficiency [25][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, emphasizing the importance of delivering measurable results and maximizing returns for clients and investors [12][35] - The company anticipates continued growth in 2025, with revenue guidance set between $1 billion and $1.16 billion, representing a 7% growth over 2024 [47][51] Other Important Information - Waystar's cash balance increased by $55 million in Q4, bringing the total to $182 million at year-end, contributing to a reduced net leverage ratio of 2.8 times [20][43] - The company has adjusted its non-GAAP net income and EPS calculations to better align with peers, expecting non-GAAP net income for 2025 to be in the range of $237 million to $243 million [52] Q&A Session Summary Question: Can you discuss the dynamics around utilization on your volume-based revenue? - Management noted a sequential decline in volume-based revenue specific to patient payments but indicated that the decline was less than expected due to increased patient utilization [57][58] Question: Can you provide an update on direct connectivity with payers and quantify M&A contributions? - Management confirmed ongoing efforts to expand direct connections with payers and indicated that M&A contributions from HealthPay and Olive AI were small but expected to improve margins over time [62][66] Question: How is Waystar positioned regarding potential headwinds from policy changes? - Management believes that Waystar's software transcends political environments and is well-positioned to help providers eliminate wasteful spending and improve efficiency [71][75] Question: What products or solution areas are resonating more with clients? - Management highlighted strong demand for solutions that prevent denied claims and improve operational efficiency, particularly in eligibility automation and prior authorization [82][84] Question: Can you elaborate on the cross-sell opportunities with new clients? - Approximately 30% of new clients are exploring additional software modules, focusing on automation and efficiency to enhance their operations [90][92] Question: How should we think about net revenue retention in 2025? - Management indicated that while they do not provide specific guidance on NRR, they expect it to remain strong, supported by continued volume growth and cross-sell opportunities [130][131]

Financial Results 4Q'24 Earnings Presentation February 18, 2025 © 2025 Waystar. All rights reserved. FORWARD - LOOKING STATEMENTS This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, statements regarding Waystar's expectations relating to future operating results and financial position, including full year 2025, and future periods; anticipated future investments; ...

Core Insights - Waystar Holding Corp. reported a fiscal year 2024 revenue of $944 million, representing a 19% year-over-year increase, with Q4 revenue growth of 18% year-over-year [1][5] - The company achieved a Q4 net income of $19.1 million, with a non-GAAP net income of $52.1 million, and a fiscal year 2024 net loss of $19.1 million, showing a 62.7% improvement year-over-year [1][5] - Adjusted EBITDA for fiscal year 2024 was $383 million, up 15% year-over-year, with a Q4 adjusted EBITDA margin of 41% [1][5] Financial Performance - Q4 revenue was $244.1 million, with a net income margin of 8% and adjusted EBITDA of $100.2 million [5][23] - The company reported cash flow from operations of $65 million and unlevered free cash flow of $80 million for Q4 [5][29] - The net revenue retention rate (NRR) was 110%, with subscription revenue of $121.6 million and volume-based revenue of $121.2 million, both up 18% and 19% year-over-year respectively [5][21] Future Outlook - Waystar anticipates total revenue for fiscal year 2025 to be between $1.0 billion and $1.016 billion, with adjusted EBITDA expected to be between $399 million and $407 million [5][21] - The company aims to leverage its cloud-based software platform to achieve solid revenue growth and compelling adjusted EBITDA margins in the future [2][5] Client Base and Market Position - Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 16 of the top 20 institutions on the U.S. News Best Hospitals list [21] - The company processes over 6 billion healthcare payment transactions annually, amounting to over $1.8 trillion in gross claims, covering approximately 50% of U.S. patients [21]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 001-41721 Waystar Holding Corp. (Exact name of registrant as specified in its charter) Delaware 84-288654 ...

Revenue Performance - Fiscal year 2024 revenue reached $944 million, representing a 19% year-over-year increase[1] - Q4 revenue was $244.1 million, up 18% year-over-year, with a net income of $19.1 million and a net income margin of 8%[4] - Subscription revenue for Q4 was $121.6 million, up 18% year-over-year, while volume-based revenue was $121.2 million, up 19% year-over-year[8] - Revenue for the three months ended December 31, 2024, increased to $244.1 million, up 18.0% from $206.7 million in the same period of 2023[25] Profitability Metrics - Fiscal year 2024 adjusted EBITDA was $383 million, reflecting a 15% increase year-over-year, with an adjusted EBITDA margin of 41%[1] - Net income for the twelve months ended December 31, 2024, was a loss of $19.1 million, an improvement from a loss of $51.3 million in 2023[29] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $383.5 million, representing a 14.9% increase from $333.7 million in 2023[31] - Non-GAAP net income for Q4 2024 reached $52,073 thousand, compared to $19,455 thousand in Q4 2023, representing a 167% increase[35] Cash Flow and Financial Health - Cash flow from operations for Q4 was $65 million, with unlevered free cash flow of $80 million[4] - The company reported a net cash provided by operating activities of $169.8 million for the twelve months ended December 31, 2024, compared to $51.5 million in 2023[29] - Operating cash flow for the twelve months ended December 31, 2024, was $169,768 thousand, compared to $51,460 thousand in 2023, representing a 229% increase[37] - Unlevered free cash flow for Q4 2024 was $80,128 thousand, up from $54,983 thousand in Q4 2023, indicating a 45% growth[37] Client and Market Metrics - The company reported a net revenue retention rate (NRR) of 110%, with 1,203 clients contributing over $100,000 in last twelve months (LTM) revenue, a 15% increase year-over-year[4] - The company serves approximately 30,000 clients, processing over 6 billion healthcare payment transactions annually, amounting to over $1.8 trillion in gross claims[23] Future Projections - For fiscal year 2025, total revenue is expected to be between $1.0 billion and $1.016 billion, with adjusted EBITDA projected between $399 million and $407 million[8] - Non-GAAP net income for fiscal year 2025 is expected to be between $237 million and $243 million, with diluted non-GAAP net income per share projected between $1.29 and $1.32[8] Balance Sheet and Liabilities - Cash and cash equivalents increased significantly to $182.1 million as of December 31, 2024, compared to $35.6 million at the end of 2023[27] - Total current assets rose to $371.0 million in 2024, up from $222.1 million in 2023, reflecting a 67.0% increase[27] - Total liabilities decreased to $1.5 billion as of December 31, 2024, down from $2.5 billion in 2023, indicating a reduction of 41.0%[27] - Net debt decreased to $1,061,413 thousand as of December 31, 2024, down from $2,213,236 thousand a year earlier, reflecting a reduction of 52%[39] Research and Development - Research and development expenses for the twelve months ended December 31, 2024, were $48.8 million, up from $35.3 million in 2023, marking a 38.1% increase[25] Stock and Compensation - The weighted-average shares outstanding for basic shares increased to 172.5 million in 2024 from 121.7 million in 2023[25] - Stock-based compensation for Q4 2024 was $7,037 thousand, up from $2,343 thousand in Q4 2023, indicating a 200% rise[35] Tax and Adjustments - Tax effect of adjustments for the twelve months ended December 31, 2024, was $(50,170) thousand, compared to $(36,660) thousand in 2023, reflecting an increase in tax adjustments[35] Financial Ratios - Adjusted Gross leverage ratio improved to 3.2x in Q4 2024 from 6.7x in Q4 2023, showing enhanced financial stability[39]

Core Insights - Waystar Holding Corp. has been recognized as the leading AI-powered healthcare payment software platform, ranking 1 in eight categories according to a survey by Black Book Market Research [1][2] - The company outperformed 80 vendors in the survey, with no other vendor securing more than one top ranking [2] - Waystar's AI capabilities have significantly improved claims submission, denial reduction, and reimbursement turnaround time, establishing its leadership in financial accuracy and efficiency [2][3] Company Performance - Waystar achieved the 1 ranking in various AI-driven financial and payment management categories, including reduction in claim rejection and denial rates, and improvement in overall claims reimbursement turnaround time [3] - The platform has been recognized for its effectiveness in patient collections and engagement, leading in upfront patient payment collection rates and automated payment processing [3] - Waystar's software processes over 5 billion healthcare payment transactions annually, managing over $1.2 trillion in gross claims and covering approximately 50% of U.S. patients [4] Technological Advancements - The launch of Waystar AltitudeAI™ introduced a comprehensive set of AI capabilities, including AltitudeCreate™, aimed at enhancing the appeal process for denied claims [2] - The platform utilizes AI-driven predictive analytics to minimize claim denials by identifying errors before submission [5] - Waystar enhances patient financial interactions through intuitive, patient-friendly portals that provide real-time cost estimates and higher collection rates with minimal friction [5]

Core Insights - Waystar Holding Corp. has achieved top rankings in multiple 2025 Best in KLAS categories, specifically in Claims Management & Clearinghouse and Patient Access, highlighting the effectiveness of its AI-powered software platform [1][2] - The recognition reflects Waystar's commitment to client support excellence and its status as a leading software provider in revenue cycle management, marking over a dozen consecutive years of being named Best in KLAS [2][5] Group 1: Company Performance and Recognition - Waystar's software platform is designed to optimize revenue cycle workflows by integrating front-end patient access with back-end claims management, enhancing operational efficiency and return on investment (ROI) [3] - The company has received multiple prestigious awards, including Forbes' Most Trusted Companies in America and Fortune's Best Workplaces in Health Care, further solidifying its reputation in the industry [5] - Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, and processes over 5 billion healthcare payment transactions annually, amounting to over $1.2 trillion in gross claims [6] Group 2: Client Impact and Industry Response - Following a cyber incident that disrupted claims processing nationwide, Waystar's claims and clearinghouse solutions were pivotal in stabilizing the healthcare industry, leading to the onboarding of over 30,000 providers through the Accelerated Implementation Program [4] - The platform's automation capabilities enhance denial prevention and accelerate reimbursements, allowing providers to navigate operational complexities and improve financial performance [3] - Waystar's continuous innovation and focus on client satisfaction empower healthcare providers to address pressing industry challenges effectively [1][3]

LEHI, Utah and LOUISVILLE, Ky., Jan. 28, 2025 /PRNewswire/ -- Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, announced today that it will report financial results for the fourth quarter and fiscal year ended December 31, 2024, before market open on Tuesday, February 18, 2025. The company will discuss its financial results on a conference call at 8:30 a.m. Eastern Time that same day.A live audio webcast of the conference call will be available on Waystar's investor re ...

Healthcare providers gain access to first-of-its-kind generative AI technology, leading to faster and more accurate payments LEHI, Utah, and LOUISVILLE, Ky., Jan. 13, 2025 /PRNewswire/ -- Waystar (Nasdaq: WAY), a provider of leading healthcare payment software, today announced the launch of Waystar AltitudeAI™, a comprehensive set of AI capabilities for providers, including AltitudeCreate™, a new generative AI innovation focused on appealing denied claims. By autonomously generating appeal letters, Waystar ...