Waystar (WAY) Q4 2024 earnings summary

Executive summary

• Achieved 19% revenue growth in FY2024, with Q4 revenue up 18% year-over-year, surpassing long-term targets.

• Completed a $1 billion IPO in June, strengthening financial position and enabling significant debt repayments.

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

• Launched AI-powered innovations, including Altitude AI, to enhance efficiency and client ROI.

• Net revenue retention rate was 110% in Q4, with 1,203 clients generating over $100,000 in trailing 12-month revenue, up 15% year-over-year.

Financial highlights

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

• Adjusted EBITDA for FY2024 was $383 million with a 40.6% margin; Q4 adjusted EBITDA was $100 million with a 41% margin.

• GAAP net income for Q4 was $19.1 million; full-year GAAP net loss improved to $19.1 million from a $51 million loss in 2023.

• Unlevered free cash flow was $80 million in Q4 and $265 million for the year, with a 69% EBITDA-to-cash conversion.

• Net leverage ratio reduced to 2.8x at year-end, down from 6.6x a year earlier.

Outlook and guidance

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

• Adjusted EBITDA guidance for FY2025: $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.

• Volume growth expected to normalize to 1%-2% annually after elevated 2024 levels.

• Guidance assumes ~$26 million stock-based compensation, ~$71 million interest expense, and a 21% non-GAAP effective tax rate.