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Waystar Reports Robust Financial Results for 2024

Waystar Holding Corp. (Nasdaq: WAY), a prominent player in healthcare payment software, has unveiled its financial performance for the fourth quarter and the entirety of fiscal year 2024, demonstrating remarkable growth and strategic execution. The company reported a revenue of $944 million for the fiscal year, marking a 19% increase compared to the previous year, with fourth quarter revenue climbing by 18% year-over-year to $244.1 million.

CEO Matt Hawkins expressed satisfaction with the company's results, stating, "We are pleased to report strong results for the fourth quarter and full year 2024, exceeding expectations and reflecting the successful execution of our strategic priorities." He emphasized the effectiveness of their cloud-based software platform in delivering measurable returns for clients.

Financial Highlights

In the fourth quarter alone, Waystar achieved a net income of $19.1 million, alongside a non-GAAP net income of $52.1 million. The adjusted EBITDA for this quarter reached $100.2 million, contributing to an impressive adjusted EBITDA margin of 41%. Notably, the company saw a significant improvement in its fiscal year net loss, reporting $19.1 million, which translates to a 62.7% enhancement year-over-year.

Further breaking down the key financial metrics:

• - Subscription revenue accounted for $121.6 million, reflecting an 18% increase from the previous year.
• - The volume-based revenue also performed well, climbing to $121.2 million, an increase of 19%.
• - Net revenue retention rate stood at an impressive 110%.
• - A total of 1,203 clients contributed over $100,000 in revenue over the last twelve months, an increase of 15%.

Looking Ahead: 2025 Guidance

As Waystar pivots toward the future, the company anticipates robust growth, projecting total revenue between $1.0 billion and $1.016 billion for fiscal year 2025. The expected adjusted EBITDA is between $399 million and $407 million, and non-GAAP net income should range from $237 million to $243 million. Furthermore, the diluted non-GAAP net income per share is anticipated to fall between $1.29 and $1.32.

Operational Highlights

The company's operations indicate a cash flow from operations of $65 million, with unlevered free cash flow recorded at $80 million. Waystar’s approach continues to show its commitment to leveraging innovative solutions to enhance the healthcare payment processes, emphasizing efficiency and client satisfaction.

This remarkable performance reflects Waystar's dedication to simplifying healthcare payments, aiming to empower providers to focus on patient care while optimizing their financial operations.

Conclusion

Waystar's ability to surpass expectations in both revenue and profit metrics signifies its strategic alignment and adaptability in a competitive healthcare landscape. As the company progresses into 2025, stakeholders are hopeful for continued growth, innovation, and value creation in the healthcare payment sector.

For more detailed insights and updates, Waystar will host a conference call discussing its financial results at 8:30 a.m. EST on February 18, 2025, available via their website. Investors and interested parties are encouraged to stay informed through Waystar’s investor relations section, which regularly updates important information, corporate presentations, and financial disclosures.