Waystar Holding Corp. · NASDAQ:WAY
Waystar — Q4 2024 Earnings Presentation
22 slides from Waystar's earnings presentation, Feb 18, 2025
Slide 1: 4Q'24 Financial Results Earnings Presentation
4Q’ 24 Financial Results Earnings Presentation February 18, 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 4Q performance: Key Highlights
18% Revenue growth1 16% Adjusted EBITDA Growth1,2 KEY HIGHLIGHTS Strong 4Q 41% $80M 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 110% Net revenue with >$100k in TTM revenue3 retention3
Slide 5: Revenue Composition
F Y 2 4 R E S U LT S Revenue Composition ~50% of total continues to be subscription, while Provider Solutions remains at ~70% of total past 3 years FY’22 FY’23 FY’24 Provider - Volume , Provider - Volume , Provider - Volume , 22% Provider - 22% Provider - 23% Provider - Subscription , 51% Subscripti
Slide 6: Revenue growth
4 Q ’ 2 4 R E S U LT S Revenue growth1 Consistent and durable YoY revenue growth $ in millions $240 $244 $235 $225 $207 $196 $197 $182 $191 $121 14% $121 Subscription growth $121 $117 $102 CAGR over last 8 $96 $94 $87 $94 quarters 18% Volume-based growth CAGR over last 8 $112 $118 $122 $94 $96 $99 $
Slide 7: Growth in clients with >$100K revenue
4 Q ’ 2 4 R E S U LT S Growth in clients with >$100K revenue1 Continued strong YoY growth as clients adopt more of the platform 1,203 1,173 1,117 1,080 1,033 1,046 1,007 1,023 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 YoY 9% 9% 7% 7% 7% 9% 14% 15% (1) Our count of clients who generate more tha
Slide 8: Net Revenue Retention
4 Q ’ 2 4 R E S U LT S Net Revenue Retention1 Consistently delivering NRR between 108% and 110% 109% 110% 109% 109% 109% 109% 110% 108% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 (1) See definition of net revenue retention on slide titled Key Performance Metric Definitions. WAYSTAR | SIMPLIFY H
Slide 9: Adjusted EBITDA
4 Q ’ 2 4 R E S U LT S Adjusted EBITDA1 Delivered 40%+ Adjusted EBITDA margin over the past 8 quarters $ in millions $100 $97 $93 $94 $86 $83 $84 $81 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Margin 43% 43% 41% 42% 41% 40% 40% 41% (1) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP fin
Slide 10: Adjusted net leverage ratio
F Y 2 4 R E S U LT S Adjusted net leverage ratio1 $1 billion+ debt repayments reduced annual interest by over $100 million and net leverage to 2.8x 7.5x 0.9 x 6.6x • Repriced First Lien Loan on 12/30/24 to SOFR +225bp (from SOFR +400bp at beginning of year) 3.8 x • Received two step credit ratings u
Slide 11: Unlevered free cash flow
F Y 2 4 R E S U LT S Unlevered free cash flow1 FY’24 conversion of Adjusted EBITDA to uFCF of 69% aligns with long-term target of 70% $ in millions Interest Paid Cash from Operations $265 CapEx $230 $223 FY’23 includes an $123 incremental $46M of cash taxes paid vs. $144 FY’22 $193 FY’24 $170 Cash t
Slide 12: FY'25 Guidance
FY’25 Guidance 7% revenue growth and 40% Adjusted EBITDA1 margin at midpoint FY’25 Guidance FY’24 Actual YoY% Change Low Mid-point High Mid-point Revenue $1,000M $1,008M $1,016M $944M 7% Adjusted EBITDA1 $399M $403M $407M $383M 5% Adjusted EBITDA % 40% 40% 40% 41% Non-GAAP Net Income2 $237M $240M $2
Slide 13: Reported revenue growth vs normalized rates
Reported revenue growth vs normalized rates Low double-digit normalized revenue growth aligns with long-term target Revenue Growth1 19% 2 Adjusted for in-year M&A impact 1 (~1%) of minor acquisitions 3 Considers impact of $34M (~4%), 2 (4%) primarily from rapid time to 12% 1 12% revenue, from client
Slide 14: FY'25 Guidance assumptions
• ~$26M stock-based compensation expense • ~$71M interest expense (based on rate of 4.3%, net of FY’25 hedges, and no additional debt or discretionary paydowns) Guidance • ~21% non-GAAP effective tax rate assumptions • ~184M fully diluted, weighted average share count for FY’25 • Non-GAAP net income
Slide 15: Appendix
Appendix WAYSTAR | SIMPLIFY HEALTHCARE PAYMENTS © 2025 Waystar. All rights reserved. 15
Slide 16: 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 17: 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 18: GAAP Income Statement
GAAP Income Statement Unaudited, $ in thousands Consolidated Statements of Operations 1Q'23 2Q'23 3Q'23 4Q'23 FY'23 1Q'24 2Q'24 3Q'24 4Q'24 FY'24 Revenue 191,083 195,969 197,263 206,695 791,010 224,792 234,543 240,112 244,102 943,549 Cost of revenue (exclusive of depreciation and amortization expens
Slide 19: Non-GAAP Income Statement
Non-GAAP Income Statement Unaudited, $ in thousands Non-GAAP Consolidated Statements of Operations 1Q'23 2Q'23 3Q'23 4Q'23 FY'23 1Q'24 2Q'24 3Q'24 4Q'24 FY'24 Revenue 191,083 195,969 197,263 206,695 791,010 224,792 234,543 240,112 244,102 943,549 Cost of revenue (exclusive of depreciation and amorti
Slide 20: 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'23 2Q'23 3Q'23 4Q'23 FY'23 1Q'24 2Q'24 3Q'24 4Q'24 FY'24 Net income/(loss) (10,623) (10,810) (15,486) (14,415) (51,334) (15,932) (27,685) 5,413 19,079 (19,125) I
Slide 21: Net Debt and Leverage
Net Debt and Leverage Unaudited, $ in thousands Reconciliation of Net Debt December 31, 2022 December 31, 2023 December 31, 2024 First lien term loan facility outstanding debt, current 17,983 17,983 11,668 First lien term loan facility outstanding debt, net of current portion 1,730,815 1,712,833 1,1
Slide 22: 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