Waystar (WAY) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 revenue reached $944 million, up 19% year-over-year, with Q4 revenue of $244.1 million, up 18% year-over-year.

• Completed IPO in June, raising $1 billion to strengthen financial position and support innovation.

• Onboarded over 30,000 providers following a competitor's cyber attack, expanding client base and driving cross-sell opportunities.

• Launched AI-powered solutions, including Altitude AI, to enhance denial management and operational efficiency.

• Recognized for industry leadership, client satisfaction, and workplace excellence by third parties and media.

Financial highlights

• Q4 revenue reached $244.1 million, up 18% year-over-year; full-year revenue was $944 million, up 19%.

• Adjusted EBITDA for Q4 was $100.2 million (16% growth), with a margin of 41%; full-year Adjusted EBITDA was $383.5 million (40.6% margin).

• GAAP net income for Q4 was $19.1 million, compared to a net loss of $14 million in the prior year; full-year GAAP net loss was $19.1 million, improved from $51 million loss in 2023.

• Unlevered Free Cash Flow was $80 million in Q4 and $265.3 million for the year, with a 69% EBITDA-to-cash conversion.

• Net Leverage Ratio reduced to 2.8x from 6.6x a year earlier.

Outlook and guidance

• FY2025 revenue guidance: $1.0–$1.016 billion, representing 7% reported growth and 10% normalized growth.

• Adjusted EBITDA guidance for 2025: $399–$407 million (40% margin).

• Non-GAAP net income expected at $237–$243 million; non-GAAP EPS of $1.29–$1.32, reflecting 41% and 19% growth, respectively.

• Expect annual volume growth of 1%-2% in 2025, returning to historical norms after elevated 2024 growth.

• Maintain long-term outlook of low double-digit normalized revenue growth and disciplined margin performance.