Waystar Holding Corp. · NASDAQ:WAY
Waystar — Q1 2025 Earnings Presentation
20 slides from Waystar's earnings presentation, Apr 30, 2025
Slide 1: 1Q'25 Financial Results Earnings Presentation
1Q’ 25 Financial Results Earnings Presentation April 30, 2025 © 2025 Waystar. All rights reserved.
Slide 2: Forward-Looking Statements
FO R WAR D - LO O K ING STATE M E NTS 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
Slide 3: Introductions
INTRODUCTIONS Matt Hawkins Steve Oreskovich Sandy Draper Chief Executive Officer Chief Financial Officer VP of Investor Relations © 2025 Waystar. All rights reserved. 3
Slide 4: Strong 1Q performance: key highlights
14% Revenue growth1 16% Adjusted EBITDA Growth1,2 KEY HIGHLIGHTS Strong 1Q 42% $79M performance Adjusted EBITDA margin2 Unlevered free cash flow2 Growth rates and key metrics are at or above long-term financial targets 15% YoY growth in clients 114% Net revenue with >$100k in TTM revenue3 retention3
Slide 5: Revenue growth
1 Q ’ 2 5 R E S U LT S Revenue growth1 Consistent and durable YoY revenue growth $ in millions $256 $240 $244 $235 $225 $207 $191 $196 $197 $130 14% $121 $121 $121 Subscription growth $117 CAGR over last 8 $102 $96 $94 quarters $94 18% Volume-based growth $125 CAGR over last 8 $112 $118 $122 $96 $99
Slide 6: Growth in clients with >$100K revenue
1 Q ’ 2 5 R E S U LT S Growth in clients with >$100K revenue1 Continued strong YoY growth as clients adopt more of the platform 1,244 1,203 1,173 1,117 1,080 1,023 1,033 1,046 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 YoY 9% 7% 7% 7% 9% 14% 15% 15% (1) See definition of Customer Count with >$1
Slide 7: Net Revenue Retention
1 Q ’ 2 5 R E S U LT S Net Revenue Retention1 1Q’25 NRR above historical range of 108%-110% 114% 110% 109% 109% 109% 109% 110% 108% Higher NRR in 1Q’25 reflects the impact of new client go-lives in late 1Q’24 and 2Q’24 increasing on a TTM basis 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 TTM Rev
Slide 8: Adjusted EBITDA
1 Q ’ 2 5 R E S U LT S Adjusted EBITDA1 Delivered 40%+ Adjusted EBITDA margin over the past 8 quarters $108 $ in millions $100 $97 $93 $94 $86 $84 $81 Higher adjusted EBITDA margin in 1Q’25 reflects timing of operating costs expected in 1Q’25 but now anticipated later in 2025 2Q'23 3Q'23 4Q'23 1Q'24
Slide 9: Adjusted net leverage ratio
1 Q ’ 2 5 R E S U LT S Adjusted net leverage ratio1 $1 billion+ debt repayments reduced annual interest by over $100 million; net leverage of 2.5x at 1Q’25 and 0.3x YTD in line with target reduction of 1x annually 6.6x • Repriced First Lien Loan on 12/30/24 to SOFR +225bp (from SOFR +400bp at beginn
Slide 10: Unlevered free cash flow
1 Q ’ 2 5 R E S U LT S Unlevered free cash flow1 1Q’25 conversion of Adjusted EBITDA to uFCF of 73% above long-term target of 70% $ in millions Interest Paid Cash from Operations $265 CapEx $223 $123 $193 $79 $170 $46 $20 $51 $41 $64 $11 ($22) ($27) ($6) ($5) FY'23 FY'24 1Q'24 1Q'25 2 uFCF Conversio
Slide 11: 2025 Guidance
FY’25 2025 Guidance Raising guidance by $6M and $7M at the midpoint for revenue and adjusted EBITDA, respectively FY’25 Guidance FY’24 Actual YoY% Change Low Mid-point High Mid-point Revenue $1,006M $1,014M $1,022M $944M 7% Adjusted EBITDA1 $406M $410M $414M $383M 7% Adjusted EBITDA % 40% 40% 41% 41
Slide 12: FY'25 Guidance assumptions
• ~$26M stock-based compensation expense • ~$73M net interest (based on 1-month SOFR1 base rate of FY’25 4.3%, net of hedges, and no additional debt or discretionary Guidance paydowns) assumptions • ~21% non-GAAP effective tax rate on adjustable items added back to non-GAAP net income • ~184M fully
Slide 13: Appendix
Appendix WAYSTAR | SIMPLIFY HEALTHCARE PAYMENTS © 2025 Waystar. All rights reserved. 13
Slide 14: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures as defined below. We present non-GAAP financial measures as
Slide 15: Key Performance Metric Definitions
KEY PERFORMANCE METRIC DEFINITIONS 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
Slide 16: GAAP Income Statement
GAAP Income Statement Unaudited, $ in thousands Consolidated Statement of Operations 1Q'24 2Q'24 3Q'24 4Q'24 FY'24 1Q'25 Revenue 224,792 234,543 240,112 244,102 943,549 256,435 Cost of revenue (exclusive of depreciation and amortization expenses) 75,192 80,451 80,545 79,542 315,730 83,345 Sales and
Slide 17: Non-GAAP Income Statement
Unaudited, $ in thousands Non-GAAP Income Statement Non-GAAP Consolidated Statements of Operations 1Q'24 2Q'24 3Q'24 4Q'24 FY'24 1Q'25 Revenue 224,792 234,543 240,112 244,102 943,549 256,435 Cost of revenue (exclusive of depreciation and amortization expenses), adjusted 75,039 78,707 80,241 79,267 3
Slide 18: Non-GAAP Reconciliations and Key Metrics
Non-GAAP Reconciliations and Key Metrics Unaudited, $ in thousands, except per share amounts Reconciliation of Non-GAAP Adjusted EBITDA 1Q'24 2Q'24 3Q'24 4Q'24 FY'24 1Q'25 Net income/(loss) (15,932) (27,685) 5,413 19,079 (19,125) 29,269 Interest expense 57,184 50,541 18,459 20,086 146,270 18,900 Inc
Slide 19: Net Debt and Leverage
Net Debt and Leverage Unaudited, $ in thousands Reconciliation of Net Debt FY'23 FY'24 1Q'24 1Q'25 First lien term loan facility outstanding debt, current 17,983 11,668 22,000 11,668 First lien term loan facility outstanding debt, net of current portion 1,712,833 1,151,878 2,178,000 1,148,960 Second
Slide 20: Thank you
Thank you © 2025 Waystar Holding Corp. All rights reserved. Waystar®, the Waystar Star Logo, and all other trademarks, trade names, service marks, and logos referenced herein, unless otherwise noted, belong to Waystar Holding Corp. or its affiliates. © 2025 Waystar