Waystar Reports Third Quarter 2024 Results
Waystar Holding Corp. (Nasdaq: WAY) announced its third-quarter 2024 results, highlighting a 22% year-over-year revenue growth to $240 million, with a net income of $5.4 million and a net income margin of 2%. Non-GAAP net income was $25.3 million, and adjusted EBITDA was $96.7 million, representing a margin of 40%. The company reported a cash flow from operations of $79 million and unlevered free cash flow of $89 million. Key metrics include 1,173 clients contributing over $100,000 in LTM revenue, a 14% increase year-over-year, and a net revenue retention rate of 109%. Subscription revenue grew by 16% to $118 million, while volume-based revenue increased by 28% to $120.7 million. For the fiscal year 2024, Waystar projects 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.
Waystar Holding Corp. (Nasdaq: WAY) ha annunciato i risultati del terzo trimestre 2024, evidenziando una crescita dei ricavi del 22% rispetto all'anno precedente, raggiungendo i 240 milioni di dollari, con un reddito netto di 5,4 milioni di dollari e un margine di profitto netto del 2%. Il reddito netto non GAAP è stato di 25,3 milioni di dollari e l'EBITDA rettificato è stato di 96,7 milioni di dollari, corrispondente a un margine del 40%. L'azienda ha riportato un flusso di cassa dalle operazioni di 79 milioni di dollari e un flusso di cassa libero non indebitato di 89 milioni di dollari. I principali indicatori includono 1.173 clienti che contribuiscono con oltre 100.000 dollari in ricavi LTM, un aumento del 14% rispetto all'anno precedente, e un tasso di retention dei ricavi netti del 109%. I ricavi da abbonamento sono cresciuti del 16% raggiungendo i 118 milioni di dollari, mentre i ricavi basati sul volume sono aumentati del 28% a 120,7 milioni di dollari. Per l'anno fiscale 2024, Waystar prevede ricavi totali tra 926 milioni e 934 milioni di dollari, EBITDA rettificato tra 374 milioni e 378 milioni di dollari, e reddito netto non GAAP tra 47 milioni e 50 milioni di dollari.
Waystar Holding Corp. (Nasdaq: WAY) anunció sus resultados del tercer trimestre de 2024, destacando un crecimiento de ingresos del 22% interanual hasta alcanzar los 240 millones de dólares, con un ingreso neto de 5.4 millones de dólares y un margen de ingreso neto del 2%. El ingreso neto no GAAP fue de 25.3 millones de dólares y el EBITDA ajustado fue de 96.7 millones de dólares, con un margen del 40%. La compañía reportó un flujo de caja de operaciones de 79 millones de dólares y un flujo de caja libre sin apalancamiento de 89 millones de dólares. Las métricas clave incluyen 1,173 clientes que contribuyen con más de 100,000 dólares en ingresos LTM, un aumento del 14% interanual, y una tasa de retención de ingresos netos del 109%. Los ingresos por suscripción crecieron un 16% hasta 118 millones de dólares, mientras que los ingresos basados en volumen aumentaron un 28% a 120.7 millones de dólares. Para el año fiscal 2024, Waystar proyecta ingresos totales entre 926 millones y 934 millones de dólares, EBITDA ajustado entre 374 millones y 378 millones de dólares, y un ingreso neto no GAAP entre 47 millones y 50 millones de dólares.
Waystar Holding Corp. (Nasdaq: WAY)는 2024년 3분기 실적을 발표하며 전년 대비 22%의 매출 성장을 기록하여 2억4000만 달러에 도달했으며, 순이익은 540만 달러, 순이익 마진은 2%였습니다. 비 GAAP 순이익은 2530만 달러였고 조정된 EBITDA는 9670만 달러로 40%의 마진을 나타냅니다. 회사는 운영에서 7900만 달러의 현금 흐름과 비부채 자유 현금 흐름 8900만 달러를 보고했습니다. 주요 지표에는 100,000 달러 이상의 LTM 수익을 기여하는 1,173명의 고객이 포함되며, 이는 전년 대비 14% 증가했으며, 순수익 유지율은 109%입니다. 구독 수익은 16% 증가하여 1억1800만 달러에 이르렀으며, 거래량 기반 수익은 28% 증가하여 1억2070만 달러에 도달했습니다. Waystar는 2024 회계 연도에 총 수익이 9억2600만 달러에서 9억3400만 달러, 조정 EBITDA는 3억7400만 달러에서 3억7800만 달러, 비 GAAP 순이익은 4700만 달러에서 5000만 달러까지 이를 것으로 예상하고 있습니다.
Waystar Holding Corp. (Nasdaq: WAY) a annoncé ses résultats pour le troisième trimestre 2024, soulignant une croissance des revenus de 22% par rapport à l'année précédente à 240 millions de dollars, avec un revenu net de 5,4 millions de dollars et une marge de revenu net de 2%. Le revenu net non-GAAP était de 25,3 millions de dollars et l'EBITDA ajusté s'élevait à 96,7 millions de dollars, représentant une marge de 40%. L'entreprise a rapporté un flux de trésorerie provenant des opérations de 79 millions de dollars et un flux de trésorerie libre non endetté de 89 millions de dollars. Les indicateurs clés incluent 1 173 clients contribuant avec plus de 100 000 dollars de revenus LTM, soit une augmentation de 14% par rapport à l'année précédente, et un taux de conservation des revenus nets de 109%. Les revenus d'abonnement ont augmenté de 16% pour atteindre 118 millions de dollars, tandis que les revenus basés sur le volume ont augmenté de 28% pour atteindre 120,7 millions de dollars. Pour l'exercice fiscal 2024, Waystar prévoit un chiffre d'affaires total entre 926 millions et 934 millions de dollars, un EBITDA ajusté entre 374 millions et 378 millions de dollars, et un revenu net non-GAAP entre 47 millions et 50 millions de dollars.
Waystar Holding Corp. (Nasdaq: WAY) hat seine Ergebnisse für das dritte Quartal 2024 bekannt gegeben und dabei ein Umsatzwachstum von 22% im Vergleich zum Vorjahr auf 240 Millionen Dollar hervorgehoben, mit einem Nettogewinn von 5,4 Millionen Dollar und einer Nettogewinnmarge von 2%. Der Nicht-GAAP-Nettogewinn betrug 25,3 Millionen Dollar, und das angepasste EBITDA belief sich auf 96,7 Millionen Dollar, was einer Marge von 40% entspricht. Das Unternehmen berichtete über einen operativen Cashflow von 79 Millionen Dollar und einen unverschuldeten freien Cashflow von 89 Millionen Dollar. Wichtige Kennzahlen umfassen 1.173 Kunden, die über 100.000 Dollar im LTM-Umsatz beitragen, ein Anstieg von 14% im Vergleich zum Vorjahr, und eine Nettoumsatzbindungsrate von 109%. Die Einnahmen aus Abonnements stiegen um 16% auf 118 Millionen Dollar, während die umsatzbasierten Einnahmen um 28% auf 120,7 Millionen Dollar anstiegen. Für das Geschäftsjahr 2024 erwartet Waystar einen Gesamtumsatz zwischen 926 Millionen und 934 Millionen Dollar, ein angepasstes EBITDA zwischen 374 Millionen und 378 Millionen Dollar sowie einen Nicht-GAAP-Nettogewinn zwischen 47 Millionen und 50 Millionen Dollar.
- Revenue grew by 22% year-over-year to $240 million.
- Non-GAAP net income was $25.3 million.
- Adjusted EBITDA of $96.7 million with a 40% margin.
- Cash flow from operations was $79 million.
- Unlevered free cash flow reached $89 million.
- 1,173 clients contributed over $100,000 in LTM revenue, up 14% year-over-year.
- Net revenue retention rate was 109%.
- Subscription revenue increased by 16% to $118 million.
- Volume-based revenue grew by 28% to $120.7 million.
- Net income margin was only 2%.
Revenue growth of
Net income of
Net income margin of
"Waystar delivered another quarter of strong top-line growth," said Matt Hawkins, Chief Executive Officer of Waystar. "Our revenue reached
Third Quarter 2024 Financial Highlights
- Revenue of
$240.1 million 22% year-over-year - Net income of
$5.4 million $0.03 2% - Non-GAAP net income of
$25.3 million $0.14 - Adjusted EBITDA of
$96.7 million 40% - Cash flow from operations of
$79 million $89 million
Key Metrics and Revenue Disaggregation
- 1,173 clients contributed over
$100,000 14% year-over-year - A net revenue retention rate (NRR) of
109% - Subscription revenue of
$118.0 million 16% year-over-year - Volume-based revenue of
$120.7 million 28% year-over-year
Financial Outlook
As of November 6, 2024, Waystar provides the following guidance for its full fiscal year 2024.1
- Total revenue is expected to be between
$926 million $934 million - Adjusted EBITDA is expected to be between
$374 million $378 million - Non-GAAP net income is expected to be between
$47 million $50 million - Diluted non-GAAP net income per share is expected to be between
$0.30 $0.32
Webcast Information
Waystar's financial results will be discussed on a conference call scheduled at 4:30 p.m. Eastern Standard Time today, November 6, 2024. A live audio conference call will be available on Waystar's website at https://investors.waystar.com/news-events/events. The webcast will be archived on the site for those unable to listen in real time. This earnings release and the related Current Report on Form 8-K filed November 6, 2024 can be accessed on the Investor Relations page of the company's website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases,
Non-GAAP Financial Measures
To supplement the consolidated financial statements prepared and presented in accordance with
Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) or net income (loss) margin as measures of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management's discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. A reconciliation is provided below for our non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.
The following non-GAAP financial measures and key performance metrics are defined below:
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as net loss before interest expense, net income tax benefit, depreciation and amortization, and as further adjusted for stock-based compensation expense, acquisition and integration costs, asset and lease impairments, costs related to amended debt agreements, and IPO related costs. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue.
Non-GAAP Net Income and Non-GAAP Net Income Per Share
We define non-GAAP net income as GAAP net income excluding the impact of stock-based compensation, acquisition and integration costs, asset and lease impairments, IPO related costs, and costs related to amended debt agreements. The tax effects of the adjustments are calculated using a management-estimated annual effective non-GAAP tax rate of
We define non-GAAP net income per share as non-GAAP net income (loss) divided by weighted-average shares used to compute net loss per share.
Unlevered Free Cash Flow
We define unlevered free cash flow as cash from operations plus cash interest expense less capital expenses.
Net Debt
We define net debt as the sum of the current portion of long-term debt, long-term debt, and accounts receivable securitization less cash and equivalents.
Adjusted Net Leverage Ratio
We define adjusted net leverage ratio as net debt divided by adjusted EBITDA over the preceding twelve months.
Key Performance Metrics
Net Revenue Retention Rate
Our Net Revenue Retention Rate compares twelve months of client invoices for our solutions at two period end dates. To calculate our Net Revenue Retention Rate, we first accumulate the total amount invoiced during the twelve months ending with the prior period-end or Prior Period Invoices. We then calculate the total amount invoiced to those same clients for the twelve months ending with the current period-end, or Current Period Invoices. Current Period Invoices are inclusive of upsell, downsell, pricing changes, clients that cancel or chose not to renew, and discontinued solutions with continuing clients. The Net Revenue Retention Rate is then calculated by dividing the Current Period Invoices by the Prior Period Invoices. Our total invoices included in the analysis are greater than
Customer Count with >
We regularly monitor and review our count of clients who generate more than
Our count of clients who generate more than
Forward-Looking Statements
This press release 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 2024, and future periods; anticipated future expenses and investments; our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity, and capital resources and other financial and operating information. Forward-looking statements include all statements that are not historical facts. These statements may include words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," "outlook," the negative version of these words or similar terms and phrases to identify forward-looking statements in this press release, including the discussion of outlook for full fiscal year 2024.
The forward-looking statements contained in this press release are based on management's current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will result or be achieved. The following factors are among those that may cause actual results to differ materially from the forward-looking statements: our operation in a highly competitive industry; our ability to retain our existing clients and attract new clients; our ability to successfully execute on our business strategies in order to grow; our ability to accurately assess the risks related to acquisitions and successfully integrate acquired businesses; our ability to establish and maintain strategic relationships; the growth and success of our clients and overall healthcare transaction volumes; consolidation in the healthcare industry; our selling cycle of variable length to secure new client agreements; our implementation cycle that is dependent on our clients' timing and resources; our dependence on our senior management team and certain key employees, and our ability to attract and retain highly skilled employees; the accuracy of the estimates and assumptions we use to determine the size of our total addressable market; our ability to develop and market new solutions, or enhance our existing solutions, to respond to technological changes, or evolving industry standards; the interoperability, connectivity, and integration of our solutions with our clients' and their vendors' networks and infrastructures; the performance and reliability of internet, mobile, and other infrastructure; the consequences if we cannot obtain, process, use, disclose, or distribute the highly regulated data we require to provide our solutions; our reliance on certain third-party vendors and providers; any errors or malfunctions in our products and solutions; failure by our clients to obtain proper permissions or provide us with accurate and appropriate information; the potential for embezzlement, identity theft, or other similar illegal behavior by our employees or vendors, and a failure of our employees or vendors to observe quality standards or adhere to environmental, social, and governance standards; our compliance with the applicable rules of the National Automated Clearing House Association and the applicable requirements of card networks; increases in card network fees and other changes to fee arrangements; the effect of payer and provider conduct which we cannot control; privacy concerns and security breaches or incidents relating to our platform; the complex and evolving laws and regulations regarding privacy, data protection, and cybersecurity; our ability to adequately protect and enforce our intellectual property rights; our ability to use or license data and integrate third-party technologies; our use of "open source" software; legal proceedings initiated by third parties alleging that we are infringing or otherwise violating their intellectual property rights; claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties; the heavily regulated industry in which we conduct business; the uncertain and evolving healthcare regulatory and political framework; healthcare laws and data privacy and security laws and regulations governing our processing of personal information; reduced revenues in response to changes to the healthcare regulatory landscape; legal, regulatory, and other proceedings that could result in adverse outcomes; consumer protection laws and regulations; contractual obligations requiring compliance with certain provisions of the Bank Secrecy Act and anti-money laundering laws and regulations; existing laws that regulate our ability to engage in certain marketing activities; our full compliance with website accessibility standards; any changes in our tax rates, the adoption of new tax legislation, or exposure to additional tax liabilities; limitations on our ability to use our net operating losses to offset future taxable income; losses due to asset impairment charges; restrictive covenants in the agreements governing our credit facilities; interest rate fluctuations; unavailability of additional capital on acceptable terms or at all; the impact of general macroeconomic conditions; actions of certain of our significant investors, who may have different interests than the interests of other holders of our securities; and each of the other factors discussed under the heading of "Risk Factors" in the Company's prospectus filed with the Securities and Exchange Commission (the "SEC") on June 7, 2024 and in other reports filed with the SEC, all of which are available on the Investor Relations page of our website at investors.waystar.com.
Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. You should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws.
About Waystar
Waystar's mission-critical software is purpose-built to simplify healthcare payments so providers can prioritize patient care and optimize their financial performance. Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 18 of 22 institutions on the
1 | We have not reconciled the forward-looking Adjusted EBITDA, non- GAAP net income, and non-GAAP net income per share guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. | |||||||
Waystar Condensed Consolidated Statements of Operations (in thousands, except for share and per share data) (unaudited) | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenue | $ | 240,112 | $ | 197,263 | $ | 699,447 | $ | 584,315 | ||||
Operating expenses | ||||||||||||
Cost of revenue (exclusive of depreciation and amortization expenses) | 80,545 | 62,922 | 236,188 | 182,578 | ||||||||
Sales and marketing | 38,450 | 32,114 | 117,945 | 93,490 | ||||||||
General and administrative | 22,704 | 17,365 | 88,794 | 46,524 | ||||||||
Research and development | 11,082 | 8,972 | 37,303 | 25,548 | ||||||||
Depreciation and amortization | 60,185 | 43,675 | 148,635 | 131,780 | ||||||||
Total operating expenses | 212,966 | 165,048 | 628,865 | 479,920 | ||||||||
Income from operations | 27,146 | 32,215 | 70,582 | 104,395 | ||||||||
Other expense | ||||||||||||
Interest expense | (17,752) | (50,755) | (122,759) | (147,047) | ||||||||
Related party interest expense | (707) | (1,655) | (3,425) | (6,010) | ||||||||
Income/(loss) before income taxes | 8,687 | (20,195) | (55,602) | (48,662) | ||||||||
Income tax expense/(benefit) | 3,274 | (4,709) | (17,398) | (11,743) | ||||||||
Net income/(loss) | $ | 5,413 | $ | (15,486) | $ | (38,204) | $ | (36,919) | ||||
Net income/(loss) per share: | ||||||||||||
Basic | $ | 0.03 | $ | (0.13) | $ | (0.27) | $ | (0.30) | ||||
Diluted | $ | 0.03 | $ | (0.13) | $ | (0.27) | $ | (0.30) | ||||
Weighted-average shares outstanding: | ||||||||||||
Basic | 171,578,311 | 121,673,852 | 142,367,458 | 121,674,189 | ||||||||
Diluted | 176,181,511 | 121,673,852 | 142,367,458 | 121,674,189 | ||||||||
Waystar Condensed Consolidated Balance Sheets (in thousands, except for share and per share data) (unaudited) | ||||||
September 30, 2024 | December 31, 2023 | |||||
(Unaudited) | ||||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 127,125 | $ | 35,580 | ||
Restricted cash | 17,222 | 9,848 | ||||
Accounts receivable, net of allowance of | 137,893 | 126,089 | ||||
Income tax receivable | 4,584 | 6,811 | ||||
Prepaid expenses | 14,294 | 13,296 | ||||
Other current assets | 4,315 | 30,426 | ||||
Total current assets | 305,433 | 222,050 | ||||
Property, plant and equipment, net | 48,017 | 61,259 | ||||
Operating lease right-of-use assets, net | 10,214 | 10,353 | ||||
Intangible assets, net | 1,069,696 | 1,186,936 | ||||
Goodwill | 3,019,826 | 3,030,013 | ||||
Deferred costs | 80,667 | 65,811 | ||||
Other long-term assets | 6,694 | 6,552 | ||||
Total assets | $ | 4,540,547 | $ | 4,582,974 | ||
Liabilities and stockholders' equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | 47,840 | $ | 45,484 | ||
Accrued compensation | 27,252 | 23,286 | ||||
Aggregated funds payable | 17,092 | 9,659 | ||||
Other accrued expenses | 11,521 | 10,923 | ||||
Deferred revenue | 10,201 | 10,935 | ||||
Current portion of long-term debt | 12,550 | 17,454 | ||||
Related party current portion of long-term debt | 359 | 529 | ||||
Current portion of operating lease liabilities | 5,412 | 4,398 | ||||
Current portion of finance lease liabilities | 882 | 821 | ||||
Total current liabilities | 133,109 | 123,489 | ||||
Long-term liabilities | ||||||
Deferred tax liability | 101,294 | 174,480 | ||||
Long-term debt, net, less current portion | 1,189,630 | 2,134,920 | ||||
Related party long-term debt, net, less current portion | 32,125 | 64,758 | ||||
Operating lease liabilities, net of current portion | 12,881 | 14,278 | ||||
Finance lease liabilities, net of current portion | 11,522 | 12,194 | ||||
Deferred revenue–LT | 5,652 | 6,173 | ||||
Other long-term liabilities | 1,587 | 2,750 | ||||
Total liabilities | 1,487,800 | 2,533,042 | ||||
Commitments and contingencies (Note 19) | ||||||
Stockholders' equity | ||||||
Preferred stock | — | — | ||||
Common stock | 1,721 | 1,217 | ||||
Additional paid-in capital | 3,290,813 | 2,234,688 | ||||
Accumulated other comprehensive income (loss) | 192 | 15,802 | ||||
Accumulated deficit | (239,979) | (201,775) | ||||
Total stockholders' equity | 3,052,747 | 2,049,932 | ||||
Total liabilities and stockholders' equity | $ | 4,540,547 | $ | 4,582,974 | ||
Waystar Condensed Consolidated Statements of Cash Flows (in thousands, except for share and per share data) (unaudited) | ||||||
Nine months ended September 30, | ||||||
2024 | 2023 | |||||
Cash flows from operating activities | ||||||
Net loss | $ | (38,204) | $ | (36,919) | ||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | ||||||
Depreciation and amortization | 148,635 | 131,780 | ||||
Stock-based compensation | 47,400 | 6,505 | ||||
Provision for bad debt expense | 1,642 | 1,614 | ||||
Loss on extinguishment of debt | 20,277 | — | ||||
Deferred income taxes | (57,984) | (47,126) | ||||
Amortization of debt discount and issuance costs | 3,301 | 7,907 | ||||
Other | (99) | — | ||||
Changes in: | ||||||
Accounts receivable | (13,445) | (5,101) | ||||
Income tax refundable | 2,227 | (619) | ||||
Prepaid expenses and other current assets | (1,714) | (6,238) | ||||
Deferred costs | (14,389) | (10,586) | ||||
Other long-term assets | (515) | (33) | ||||
Accounts payable and accrued expenses | 9,366 | 231 | ||||
Deferred revenue | (1,256) | (257) | ||||
Operating lease right-of-use assets and lease liabilities | (244) | (1,199) | ||||
Other long-term liabilities | — | 45 | ||||
Net cash provided by operating activities | 104,998 | 40,004 | ||||
Cash flows from investing activities | ||||||
Purchase of property and equipment and capitalization of internally developed software costs | (21,044) | (15,726) | ||||
Acquisitions, net of cash and cash equivalents acquired | — | (30,027) | ||||
Net cash used in investing activities | (21,044) | (45,753) | ||||
Cash flows from financing activities | ||||||
Change in aggregated funds liability | 7,433 | 458 | ||||
Proceeds from equity offering, net of underwriting discounts | 1,017,074 | — | ||||
Payments of third-party IPO issuance costs | (3,372) | — | ||||
Repurchase of shares | (844) | (688) | ||||
Proceeds from exercise of common stock options | 1,488 | 284 | ||||
Proceeds from issuances of debt, net of creditor fees | 545,209 | — | ||||
Payments on debt | (1,550,002) | (13,487) | ||||
Third-party fees paid in connection with issuance of new debt | (1,410) | — | ||||
Finance lease liabilities paid | (611) | (599) | ||||
Net cash provided by (used in) financing activities | 14,965 | (14,032) | ||||
Increase in cash and cash equivalents during the period | 98,919 | (19,781) | ||||
Cash and cash equivalents and restricted cash–beginning of period | 45,428 | 72,636 | ||||
Cash and cash equivalents and restricted cash–end of period | $ | 144,347 | $ | 52,855 | ||
Supplemental disclosures of cash flow information | ||||||
Interest paid | $ | 101,189 | $ | 143,685 | ||
Cash taxes paid (refunds received), net | 38,558 | 36,654 | ||||
Non-cash investing and financing activities | ||||||
Fixed asset purchases in accounts payable | 586 | (502) | ||||
Unpaid third-party IPO issuance costs | 50 | — | ||||
Reconciliation of Balance Sheet Cash Accounts to Cash Flow Statement | ||||||
Balance sheet | ||||||
Cash and cash equivalents | 127,125 | 44,450 | ||||
Restricted cash | 17,222 | 8,405 | ||||
Total | 144,347 | 52,855 | ||||
Waystar Reconciliation of Adjusted EBITDA (in thousands) (unaudited) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income/(loss) | $ | 5,413 | $ | (15,486) | $ | (38,204) | $ | (36,919) | ||||||||
Interest expense | 18,459 | 52,410 | 126,184 | 153,057 | ||||||||||||
Income tax expense/(benefit) | 3,274 | (4,709) | (17,398) | (11,743) | ||||||||||||
Depreciation and amortization | 60,185 | 43,675 | 148,635 | 131,780 | ||||||||||||
Stock-based compensation expense | 7,903 | 2,207 | 47,400 | 6,505 | ||||||||||||
Acquisition and integration costs | 188 | 1,342 | 696 | 3,236 | ||||||||||||
Costs related to amended debt agreements | 106 | - | 12,876 | - | ||||||||||||
IPO related costs | 109 | 1,551 | 2,114 | 1,554 | ||||||||||||
Other (a) | 1,040 | - | 1,040 | - | ||||||||||||
Adjusted EBITDA | $ | 96,677 | $ | 80,990 | $ | 283,343 | $ | 247,470 | ||||||||
Revenue | 240,112 | 197,263 | 699,447 | 584,315 | ||||||||||||
Net income/(loss) margin | 2.3 | % | (7.9) | % | (5.5) | % | (6.3) | % | ||||||||
Adjusted EBITDA margin | 40.3 | % | 41.1 | % | 40.5 | % | 42.4 | % | ||||||||
(a) | Adjustments relate to additional lease costs due to the relocation of our |
Waystar | |||||||||||||||||
Reconciliation of Non-GAAP Operating Expenses | |||||||||||||||||
(in thousands) | |||||||||||||||||
(unaudited)
| |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Cost of revenue (exclusive of depreciation and amortization expenses) | $ | 80,545 | $ | 62,922 | $ | 236,188 | $ | 182,578 | |||||||||
Less: | |||||||||||||||||
Stock-based compensation expense | (300) | (131) | (2,161) | (545) | |||||||||||||
Acquisition and integration costs | - | (58) | (31) | (58) | |||||||||||||
IPO related costs | (4) | - | (9) | - | |||||||||||||
Cost of revenue (exclusive of depreciation and amortization expenses), adjusted | $ | 80,241 | $ | 62,733 | $ | 233,987 | $ | 181,975 | |||||||||
Sales and marketing | $ | 38,450 | $ | 32,114 | $ | 117,945 | $ | 93,490 | |||||||||
Less: | |||||||||||||||||
Stock-based compensation expense | (1,587) | (444) | (10,958) | (1,386) | |||||||||||||
Acquisition and integration costs | - | (48) | - | (49) | |||||||||||||
IPO related costs | 94 | - | (141) | - | |||||||||||||
Sales and marketing, adjusted | $ | 36,957 | $ | 31,622 | $ | 106,846 | $ | 92,055 | |||||||||
General and administrative | $ | 22,704 | $ | 17,365 | $ | 88,794 | $ | 46,524 | |||||||||
Less: | |||||||||||||||||
Stock-based compensation expense | (4,832) | (1,276) | (27,043) | (3,630) | |||||||||||||
Acquisition and integration costs | (86) | (1,092) | (272) | (2,707) | |||||||||||||
Costs related to amended debt agreements | (106) | - | (12,876) | - | |||||||||||||
IPO related costs | (200) | (1,551) | (1,956) | (1,554) | |||||||||||||
Other (a) | (1,040) | - | (1,040) | - | |||||||||||||
General and administrative, adjusted | $ | 16,440 | $ | 13,446 | $ | 45,607 | $ | 38,633 | |||||||||
Research and development | $ | 11,082 | $ | 8,972 | $ | 37,303 | $ | 25,548 | |||||||||
Less: | |||||||||||||||||
Stock-based compensation expense | (1,184) | (356) | (7,238) | (944) | |||||||||||||
Acquisition and integration costs | (102) | (144) | (393) | (422) | |||||||||||||
IPO related costs | 1 | - | (8) | - | |||||||||||||
Research and development, adjusted | $ | 9,797 | $ | 8,472 | $ | 29,664 | $ | 24,182 | |||||||||
Depreciation and amortization | $ | 60,185 | $ | 43,675 | $ | 148,635 | $ | 131,780 | |||||||||
Less: | |||||||||||||||||
Other (a) | (15,776) | - | (15,776) | - | |||||||||||||
Depreciation and amortization, adjusted | $ | 44,409 | $ | 43,675 | $ | 132,859 | $ | 131,780 | |||||||||
Income tax expense/(benefit) | $ | 3,274 | $ | (4,709) | $ | (17,398) | $ | (11,743) | |||||||||
Tax effect of adjustments | 5,276 | 1,071 | 16,779 | 2,372 | |||||||||||||
Income tax expense/(benefit), adjusted | $ | 8,550 | $ | (3,638) | $ | (619) | $ | (9,371) | |||||||||
(a) | Adjustments relate to additional lease costs and accelerated depreciation due to the relocation of our |
Waystar | ||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Net Income | ||||||||||||||||||||||||||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||||||||||||||||||||||
(unaudited)
| ||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
Net income/(loss) | $ | 5,413 | $ | (15,486) | $ | (38,204) | $ | (36,919) | ||||||||||||||||||||||||||||
Stock-based compensation expense | 7,903 | 2,207 | 47,400 | 6,505 | ||||||||||||||||||||||||||||||||
Acquisition and integration costs | 188 | 1,342 | 696 | 3,236 | ||||||||||||||||||||||||||||||||
Costs related to amended debt agreements | 106 | - | 12,876 | - | ||||||||||||||||||||||||||||||||
IPO related costs | 109 | 1,551 | 2,114 | 1,554 | ||||||||||||||||||||||||||||||||
Other (a) | 16,816 | - | 16,816 | - | ||||||||||||||||||||||||||||||||
Tax effect of adjustments | (5,276) | (1,071) | (16,779) | (2,372) | ||||||||||||||||||||||||||||||||
Non-GAAP net income/(loss) | $ | 25,259 | $ | (11,457) | $ | 24,919 | $ | (27,996) | ||||||||||||||||||||||||||||
Non-GAAP net income/(loss) per share, basic | 0.15 | (0.09) | 0.18 | (0.23) | ||||||||||||||||||||||||||||||||
Non-GAAP net income/(loss) per share, diluted | 0.14 | (0.09) | 0.17 | (0.23) | ||||||||||||||||||||||||||||||||
Weighted-average shares used in computing basic non-GAAP net income/(loss) per share | 171,578,311 | 121,673,852 | 142,367,458 | 121,674,189 | ||||||||||||||||||||||||||||||||
Weighted-average shares used in computing diluted non-GAAP net income/(loss) per share | 176,181,511 | 121,673,852 | 146,843,861 | 121,674,189 | ||||||||||||||||||||||||||||||||
(a) | Adjustments relate to additional lease costs and accelerated depreciation due to the relocation of our |
Waystar Reconciliation of Unlevered Free Cash Flow (in thousands) (unaudited) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Net cash provided by operating activities | $ | 78,818 | $ | (10,447) | $ | 104,998 | $ | 40,004 | |||||||||
Interest paid | 18,925 | 49,037 | 101,189 | 143,685 | |||||||||||||
Purchase of property and equipment and capitalization of internally developed software costs | (8,616) | (6,244) | (21,044) | (15,726) | |||||||||||||
Unlevered free cash flow | $ | 89,127 | $ | 32,346 | $ | 185,143 | $ | 167,963 | |||||||||
Waystar | ||||||||
Reconciliation of Net Debt | ||||||||
(in thousands) | ||||||||
(unaudited)
| ||||||||
September 30, | September 30, | |||||||
First lien term loan facility outstanding debt, current | $ | 12,909 | $ | 17,983 | ||||
First lien term loan facility outstanding debt, net of current portion | 1,153,864 | 1,717,328 | ||||||
Second lien term loan facility outstanding debt | - | 468,000 | ||||||
Receivables facility outstanding debt | 80,000 | 50,000 | ||||||
Cash and cash equivalents | (127,125) | (44,450) | ||||||
Net debt | $ | 1,119,648 | $ | 2,208,861 | ||||
Trailing twelve months adjusted EBITDA | $ | 369,587 | $ | 325,755 | ||||
Adjusted gross leverage ratio | 3.4x | 6.9x | ||||||
Adjusted net leverage ratio | 3.0x | 6.8x | ||||||
Waystar Reconciliation of Trailing Twelve Months (TTM) Adjusted EBITDA (in thousands) (unaudited) | |||||||||||||||||||||
Three Months Ended | TTM | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||
2024 | 2024 | 2024 | 2023 | 2024 | |||||||||||||||||
Net income/(loss) | $ | 5,413 | $ | (27,685) | $ | (15,932) | $ | (14,415) | $ | (52,619) | |||||||||||
Interest expense | 18,459 | 50,541 | 57,184 | 52,860 | 179,044 | ||||||||||||||||
Income tax expense/(benefit) | 3,274 | (14,611) | (6,061) | (757) | (18,155) | ||||||||||||||||
Depreciation and amortization | 60,185 | 44,276 | 44,174 | 44,686 | 193,321 | ||||||||||||||||
Stock-based compensation expense | 7,903 | 36,969 | 2,528 | 2,343 | 49,743 | ||||||||||||||||
Acquisition and integration costs | 188 | 206 | 302 | 711 | 1,407 | ||||||||||||||||
Costs related to amended debt agreements | 106 | 2,368 | 10,402 | 393 | 13,269 | ||||||||||||||||
IPO related costs | 109 | 1,841 | 164 | 423 | 2,537 | ||||||||||||||||
Other (a) | 1,040 | - | - | - | 1,040 | ||||||||||||||||
Adjusted EBITDA | $ | 96,677 | $ | 93,905 | $ | 92,761 | $ | 86,244 | $ | 369,587 | |||||||||||
(a) | Adjustments relate to additional lease costs due to the relocation of our |
Media Contact
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kristin.lee@waystar.com
Investor Contact
Sandy Draper
investors@waystar.com
502-238-9511
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SOURCE Waystar
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