Waystar (WAY) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in 2024, with revenue up 19% for the year and 18% in Q4, surpassing long-term targets and driven by rapid client onboarding after a competitor's cyber attack.

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

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

• 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.

• Recognized for client satisfaction, innovation, and as a trusted industry leader by third-party surveys and Forbes.

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 (41% margin); full-year Adjusted EBITDA was $383.5 million (40.6% margin).

• GAAP net income for Q4 was $19.1 million; full-year GAAP net loss was $19.1 million, improved from a $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 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 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.

• Annual volume growth for 2025 expected at 1–2%, returning to historical norms after a strong 2024.

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