Revenue growth of 22% year-over-year

Net income of $5.4 million and non-GAAP net income of $25.3 million

Net income margin of 2%; Adjusted EBITDA margin of 40%

LEHI, Utah and LOUISVILLE, Ky., Nov. 6, 2024 /PRNewswire/ — Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today reported results for the three-month period ended September 30, 2024.

“Waystar delivered another quarter of strong top-line growth,” said Matt Hawkins, Chief Executive Officer of Waystar. “Our revenue reached $240 million, representing 22% year-over-year growth, an acceleration from our 20% growth last quarter. As providers prioritize ways to get paid faster and more efficiently, we are investing in AI-driven automation across our cloud-based software platform to drive tangible client return on investment.”

Third Quarter 2024 Financial Highlights

  • Revenue of $240.1 million, up 22% year-over-year
  • Net income of $5.4 million, GAAP net income per share of $0.03, and net income margin of 2%
  • Non-GAAP net income of $25.3 million and non-GAAP net income per diluted share of $0.14
  • Adjusted EBITDA of $96.7 million and Adjusted EBITDA margin of 40%
  • Cash flow from operations of $79 million and Unlevered Free Cash Flow of $89 million

Key Metrics and Revenue Disaggregation

  • 1,173 clients contributed over $100,000 in LTM revenue, up 14% year-over-year
  • A net revenue retention rate (NRR) of 109%
  • Subscription revenue of $118.0 million, up 16% year-over-year
  • Volume-based revenue of $120.7 million, up 28% year-over-year

Financial Outlook

As of November 6, 2024, Waystar provides the following guidance for its full fiscal year 2024.1

  • Total revenue is expected to be between $926 million and $934 million
  • Adjusted EBITDA is expected to be between $374 million and $378 million
  • Non-GAAP net income is expected to be between $47 million and $50 million
  • Diluted non-GAAP net income per share is expected to be between $0.30 and $0.32

Webcast Information

Waystar’s financial results will be discussed on a conference call scheduled at 4:30 p.m. Eastern Standard Time today, November 6, 2024. A live audio conference call will be available on Waystar’s website at https://investors.waystar.com/news-events/events. The webcast will be archived on the site for those unable to listen in real time. This earnings release and the related Current Report on Form 8-K filed November 6, 2024 can be accessed on the Investor Relations page of the company’s website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases, U.S. Securities and Exchange Commission (“SEC”) filings, and public conference calls and webcasts.

Non-GAAP Financial Measures

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures as defined below. We present non-GAAP financial measures as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA and Adjusted EBITDA margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.

Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) or net income (loss) margin as measures of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. A reconciliation is provided below for our non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

The following non-GAAP financial measures and key performance metrics are defined below:

Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as net loss before interest expense, net income tax benefit, depreciation and amortization, and as further adjusted for stock-based compensation expense, acquisition and integration costs, asset and lease impairments, costs related to amended debt agreements, and IPO related costs. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue.

Non-GAAP Net Income and Non-GAAP Net Income Per Share
We define non-GAAP net income as GAAP net income excluding the impact of stock-based compensation, acquisition and integration costs, asset and lease impairments, IPO related costs, and costs related to amended debt agreements. The tax effects of the adjustments are calculated using a management-estimated annual effective non-GAAP tax rate of 21%.

We define non-GAAP net income per share as non-GAAP net income (loss) divided by weighted-average shares used to compute net loss per share.

Unlevered Free Cash Flow
We define unlevered free cash flow as cash from operations plus cash interest expense less capital expenses.

Net Debt
We define net debt as the sum of the current portion of long-term debt, long-term debt, and accounts receivable securitization less cash and equivalents.

Adjusted Net Leverage Ratio
We define adjusted net leverage ratio as net debt divided by adjusted EBITDA over the preceding twelve months.

Key Performance Metrics

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 with the prior period-end or Prior Period Invoices. We then calculate the total amount invoiced to those same clients for the twelve months ending with the current period-end, or Current Period Invoices. Current Period Invoices are inclusive of upsell, downsell, pricing changes, clients that cancel or chose not to renew, and discontinued solutions with continuing clients. The Net Revenue Retention Rate is then calculated by dividing the Current Period Invoices by the Prior Period Invoices. Our total invoices included in the analysis are greater than 98% of reported revenue. We use Net Revenue Retention Rate to evaluate our ongoing operations and for internal planning and forecasting purposes. Acquired businesses are included in the last-twelve-month Net Revenue Retention Rate in the ninth quarter after acquisition, which is the earliest point that comparable post-acquisition invoices are available for both the current and prior twelve-month period.

Customer Count with >$100,000 of Revenue
We regularly monitor and review our count of clients who generate more than $100,000 of revenue.

Our count of clients who generate more than $100,000 of revenue is based on an accumulation of the amounts invoiced to clients over the preceding twelve months. The invoices for acquired clients are included starting in the first full calendar quarter after the date of acquisition.

Forward-Looking Statements

This press release 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 operating results and financial position, including full year 2024, and future periods; anticipated future expenses and investments; our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity, and capital resources and other financial and operating information. Forward-looking statements include all statements that are not historical facts. These statements may include words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “outlook,” the negative version of these words or similar terms and phrases to identify forward-looking statements in this press release, including the discussion of outlook for full fiscal year 2024.

The forward-looking statements contained in this press release are based on management’s current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved. The following factors are among those that may cause actual results to differ materially from the forward-looking statements: our operation in a highly competitive industry; our ability to retain our existing clients and attract new clients; our ability to successfully execute on our business strategies in order to grow; our ability to accurately assess the risks related to acquisitions and successfully integrate acquired businesses; our ability to establish and maintain strategic relationships; the growth and success of our clients and overall healthcare transaction volumes; consolidation in the healthcare industry; our selling cycle of variable length to secure new client agreements; our implementation cycle that is dependent on our clients’ timing and resources; our dependence on our senior management team and certain key employees, and our ability to attract and retain highly skilled employees; the accuracy of the estimates and assumptions we use to determine the size of our total addressable market; our ability to develop and market new solutions, or enhance our existing solutions, to respond to technological changes, or evolving industry standards; the interoperability, connectivity, and integration of our solutions with our clients’ and their vendors’ networks and infrastructures; the performance and reliability of internet, mobile, and other infrastructure; the consequences if we cannot obtain, process, use, disclose, or distribute the highly regulated data we require to provide our solutions; our reliance on certain third-party vendors and providers; any errors or malfunctions in our products and solutions; failure by our clients to obtain proper permissions or provide us with accurate and appropriate information; the potential for embezzlement, identity theft, or other similar illegal behavior by our employees or vendors, and a failure of our employees or vendors to observe quality standards or adhere to environmental, social, and governance standards; our compliance with the applicable rules of the National Automated Clearing House Association and the applicable requirements of card networks; increases in card network fees and other changes to fee arrangements; the effect of payer and provider conduct which we cannot control; privacy concerns and security breaches or incidents relating to our platform; the complex and evolving laws and regulations regarding privacy, data protection, and cybersecurity; our ability to adequately protect and enforce our intellectual property rights; our ability to use or license data and integrate third-party technologies; our use of “open source” software; legal proceedings initiated by third parties alleging that we are infringing or otherwise violating their intellectual property rights; claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties; the heavily regulated industry in which we conduct business; the uncertain and evolving healthcare regulatory and political framework; healthcare laws and data privacy and security laws and regulations governing our processing of personal information; reduced revenues in response to changes to the healthcare regulatory landscape; legal, regulatory, and other proceedings that could result in adverse outcomes; consumer protection laws and regulations; contractual obligations requiring compliance with certain provisions of the Bank Secrecy Act and anti-money laundering laws and regulations; existing laws that regulate our ability to engage in certain marketing activities; our full compliance with website accessibility standards; any changes in our tax rates, the adoption of new tax legislation, or exposure to additional tax liabilities; limitations on our ability to use our net operating losses to offset future taxable income; losses due to asset impairment charges; restrictive covenants in the agreements governing our credit facilities; interest rate fluctuations; unavailability of additional capital on acceptable terms or at all; the impact of general macroeconomic conditions; actions of certain of our significant investors, who may have different interests than the interests of other holders of our securities; and each of the other factors discussed under the heading of “Risk Factors” in the Company’s prospectus filed with the Securities and Exchange Commission (the “SEC”) on June 7, 2024 and in other reports filed with the SEC, all of which are available on the Investor Relations page of our website at investors.waystar.com.

Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. You should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws.

About Waystar

Waystar’s mission-critical software is purpose-built to simplify healthcare payments so providers can prioritize patient care and optimize their financial performance. Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 18 of 22 institutions on the U.S. News Best Hospitals list. Waystar’s enterprise-grade platform annually processes over 5 billion healthcare payment transactions, including over $1.2 trillion in annual gross claims and spanning approximately 50% of U.S. patients. Waystar strives to transform healthcare payments so providers can focus on what matters most: their patients and communities. Discover the way forward at waystar.com.

1

We have not reconciled the forward-looking Adjusted EBITDA, non- GAAP net income, and non-GAAP net income per share guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

 

Waystar

Condensed Consolidated Statements of Operations

(in thousands, except for share and per share data)

(unaudited)

Three months ended September 30, 

Nine months ended September 30, 

2024

2023

2024

2023

Revenue

$

240,112

$

197,263

$

699,447

$

584,315

Operating expenses

Cost of revenue (exclusive of depreciation and amortization expenses)

80,545

62,922

236,188

182,578

Sales and marketing

38,450

32,114

117,945

93,490

General and administrative

22,704

17,365

88,794

46,524

Research and development

11,082

8,972

37,303

25,548

Depreciation and amortization

60,185

43,675

148,635

131,780

  Total operating expenses

212,966

165,048

628,865

479,920

Income from operations

27,146

32,215

70,582

104,395

Other expense

Interest expense

(17,752)

(50,755)

(122,759)

(147,047)

Related party interest expense

(707)

(1,655)

(3,425)

(6,010)

Income/(loss) before income taxes

8,687

(20,195)

(55,602)

(48,662)

Income tax expense/(benefit)

3,274

(4,709)

(17,398)

(11,743)

Net income/(loss)

$

5,413

$

(15,486)

$

(38,204)

$

(36,919)

Net income/(loss) per share:

Basic

$

0.03

$

(0.13)

$

(0.27)

$

(0.30)

Diluted

$

0.03

$

(0.13)

$

(0.27)

$

(0.30)

Weighted-average shares outstanding:

Basic

171,578,311

121,673,852

142,367,458

121,674,189

Diluted

176,181,511

121,673,852

142,367,458

121,674,189

 

Waystar

Condensed Consolidated Balance Sheets

(in thousands, except for share and per share data)

(unaudited)

September 30, 2024

December 31, 2023

(Unaudited)

Assets

Current assets

Cash and cash equivalents

$

127,125

$

35,580

Restricted cash

17,222

9,848

Accounts receivable, net of allowance of $5,223 at September 30, 2024 and $5,335 at December 31, 2023

137,893

126,089

Income tax receivable

4,584

6,811

Prepaid expenses

14,294

13,296

Other current assets

4,315

30,426

  Total current assets

305,433

222,050

Property, plant and equipment, net

48,017

61,259

Operating lease right-of-use assets, net

10,214

10,353

Intangible assets, net

1,069,696

1,186,936

Goodwill

3,019,826

3,030,013

Deferred costs

80,667

65,811

Other long-term assets

6,694

6,552

  Total assets

$

4,540,547

$

4,582,974

Liabilities and stockholders’ equity

Current liabilities

Accounts payable

$

47,840

$

45,484

Accrued compensation

27,252

23,286

Aggregated funds payable

17,092

9,659

Other accrued expenses

11,521

10,923

Deferred revenue

10,201

10,935

Current portion of long-term debt

12,550

17,454

Related party current portion of long-term debt

359

529

Current portion of operating lease liabilities

5,412

4,398

Current portion of finance lease liabilities

882

821

  Total current liabilities

133,109

123,489

Long-term liabilities

Deferred tax liability

101,294

174,480

Long-term debt, net, less current portion

1,189,630

2,134,920

Related party long-term debt, net, less current portion

32,125

64,758

Operating lease liabilities, net of current portion

12,881

14,278

Finance lease liabilities, net of current portion

11,522

12,194

Deferred revenue–LT

5,652

6,173

Other long-term liabilities

1,587

2,750

  Total liabilities

1,487,800

2,533,042

Commitments and contingencies (Note 19)

Stockholders’ equity

Preferred stock $0.01 par value – 100,000,000 and zero shares
authorized as of September 30, 2024 and December 31, 2023,
respectively; zero shares issued or outstanding as of September 30, 2024
and December 31, 2023, respectively

Common stock $0.01 par value – 2,500,000,000 and 227,000,000 shares
authorized at September 30, 2024 and December 31, 2023, respectively;
172,086,129 and 121,679,902 shares issued and outstanding at
September 30, 2024 and December 31, 2023, respectively

1,721

1,217

Additional paid-in capital

3,290,813

2,234,688

Accumulated other comprehensive income (loss)

192

15,802

Accumulated deficit

(239,979)

(201,775)

  Total stockholders’ equity

3,052,747

2,049,932

  Total liabilities and stockholders’ equity

$

4,540,547

$

4,582,974

 

Waystar

Condensed Consolidated Statements of Cash Flows

(in thousands, except for share and per share data)

(unaudited)

Nine months ended September 30, 

2024

2023

Cash flows from operating activities

Net loss

$

(38,204)

$

(36,919)

Adjustments to reconcile net income/(loss) to net cash provided by operating activities

Depreciation and amortization

148,635

131,780

Stock-based compensation

47,400

6,505

Provision for bad debt expense

1,642

1,614

Loss on extinguishment of debt

20,277

Deferred income taxes

(57,984)

(47,126)

Amortization of debt discount and issuance costs

3,301

7,907

Other

(99)

Changes in:

Accounts receivable

(13,445)

(5,101)

Income tax refundable

2,227

(619)

Prepaid expenses and other current assets

(1,714)

(6,238)

Deferred costs

(14,389)

(10,586)

Other long-term assets

(515)

(33)

Accounts payable and accrued expenses

9,366

231

Deferred revenue

(1,256)

(257)

Operating lease right-of-use assets and lease liabilities

(244)

(1,199)

Other long-term liabilities

45

Net cash provided by operating activities

104,998

40,004

Cash flows from investing activities

Purchase of property and equipment and capitalization of internally developed software costs

(21,044)

(15,726)

Acquisitions, net of cash and cash equivalents acquired

(30,027)

Net cash used in investing activities

(21,044)

(45,753)

Cash flows from financing activities

Change in aggregated funds liability

7,433

458

Proceeds from equity offering, net of underwriting discounts

1,017,074

Payments of third-party IPO issuance costs

(3,372)

Repurchase of shares

(844)

(688)

Proceeds from exercise of common stock options

1,488

284

Proceeds from issuances of debt, net of creditor fees

545,209

Payments on debt

(1,550,002)

(13,487)

Third-party fees paid in connection with issuance of new debt

(1,410)

Finance lease liabilities paid

(611)

(599)

Net cash provided by (used in) financing activities

14,965

(14,032)

Increase in cash and cash equivalents during the period

98,919

(19,781)

Cash and cash equivalents and restricted cash–beginning of period

45,428

72,636

Cash and cash equivalents and restricted cash–end of period

$

144,347

$

52,855

Supplemental disclosures of cash flow information

Interest paid

$

101,189

$

143,685

Cash taxes paid (refunds received), net

38,558

36,654

Non-cash investing and financing activities

Fixed asset purchases in accounts payable

586

(502)

Unpaid third-party IPO issuance costs

50

Reconciliation of Balance Sheet Cash Accounts to Cash Flow Statement

Balance sheet

Cash and cash equivalents

127,125

44,450

Restricted cash

17,222

8,405

Total

144,347

52,855

 

Waystar

Reconciliation of Adjusted EBITDA

(in thousands)

(unaudited)

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Net income/(loss)

$

5,413

$

(15,486)

$

(38,204)

$

(36,919)

Interest expense

18,459

52,410

126,184

153,057

Income tax expense/(benefit)

3,274

(4,709)

(17,398)

(11,743)

Depreciation and amortization

60,185

43,675

148,635

131,780

Stock-based compensation expense

7,903

2,207

47,400

6,505

Acquisition and integration costs

188

1,342

696

3,236

Costs related to amended debt agreements

106

12,876

IPO related costs

109

1,551

2,114

1,554

Other (a)

1,040

1,040

Adjusted EBITDA

$

96,677

$

80,990

$

283,343

$

247,470

Revenue

240,112

197,263

699,447

584,315

Net income/(loss) margin

2.3

%

(7.9)

%

(5.5)

%

(6.3)

%

Adjusted EBITDA margin

40.3

%

41.1

%

40.5

%

42.4

%

(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office

 

Waystar

Reconciliation of Non-GAAP Operating Expenses

(in thousands)

(unaudited)

 

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Cost of revenue (exclusive of depreciation and amortization expenses)

$

80,545

$

62,922

$

236,188

$

182,578

Less:

Stock-based compensation expense

(300)

(131)

(2,161)

(545)

Acquisition and integration costs

(58)

(31)

(58)

IPO related costs

(4)

(9)

Cost of revenue (exclusive of depreciation and amortization expenses), adjusted

$

80,241

$

62,733

$

233,987

$

181,975

Sales and marketing

$

38,450

$

32,114

$

117,945

$

93,490

Less:

Stock-based compensation expense

(1,587)

(444)

(10,958)

(1,386)

Acquisition and integration costs

(48)

(49)

IPO related costs

94

(141)

Sales and marketing, adjusted

$

36,957

$

31,622

$

106,846

$

92,055

General and administrative

$

22,704

$

17,365

$

88,794

$

46,524

Less:

Stock-based compensation expense

(4,832)

(1,276)

(27,043)

(3,630)

Acquisition and integration costs

(86)

(1,092)

(272)

(2,707)

Costs related to amended debt agreements

(106)

(12,876)

IPO related costs

(200)

(1,551)

(1,956)

(1,554)

Other (a)

(1,040)

(1,040)

General and administrative, adjusted

$

16,440

$

13,446

$

45,607

$

38,633

Research and development

$

11,082

$

8,972

$

37,303

$

25,548

Less:

Stock-based compensation expense

(1,184)

(356)

(7,238)

(944)

Acquisition and integration costs

(102)

(144)

(393)

(422)

IPO related costs

1

(8)

Research and development, adjusted

$

9,797

$

8,472

$

29,664

$

24,182

Depreciation and amortization

$

60,185

$

43,675

$

148,635

$

131,780

Less:

Other (a)

(15,776)

(15,776)

Depreciation and amortization, adjusted

$

44,409

$

43,675

$

132,859

$

131,780

Income tax expense/(benefit)

$

3,274

$

(4,709)

$

(17,398)

$

(11,743)

Tax effect of adjustments

5,276

1,071

16,779

2,372

Income tax expense/(benefit), adjusted

$

8,550

$

(3,638)

$

(619)

$

(9,371)

(a)

Adjustments relate to additional lease costs and accelerated depreciation due to the relocation of our Louisville office

 

Waystar

Reconciliation of Non-GAAP Net Income

(in thousands, except share and per share amounts)

(unaudited)

 

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Net income/(loss)

$

5,413

$

(15,486)

$

(38,204)

$

(36,919)

Stock-based compensation expense

7,903

2,207

47,400

6,505

Acquisition and integration costs

188

1,342

696

3,236

Costs related to amended debt agreements

106

12,876

IPO related costs

109

1,551

2,114

1,554

Other (a)

16,816

16,816

Tax effect of adjustments

(5,276)

(1,071)

(16,779)

(2,372)

Non-GAAP net income/(loss)

$

25,259

$

(11,457)

$

24,919

$

(27,996)

Non-GAAP net income/(loss) per share, basic

0.15

(0.09)

0.18

(0.23)

Non-GAAP net income/(loss) per share, diluted

0.14

(0.09)

0.17

(0.23)

Weighted-average shares used in computing basic non-GAAP net income/(loss) per share

171,578,311

121,673,852

142,367,458

121,674,189

Weighted-average shares used in computing diluted non-GAAP net income/(loss) per share

176,181,511

121,673,852

146,843,861

121,674,189

(a)

Adjustments relate to additional lease costs and accelerated depreciation due to the relocation of our Louisville office

 

Waystar

Reconciliation of Unlevered Free Cash Flow

(in thousands)

(unaudited)

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Net cash provided by operating activities

$

78,818

$

(10,447)

$

104,998

$

40,004

Interest paid

18,925

49,037

101,189

143,685

Purchase of property and equipment and capitalization of internally developed software costs

(8,616)

(6,244)

(21,044)

(15,726)

Unlevered free cash flow

$

89,127

$

32,346

$

185,143

$

167,963

 

Waystar

Reconciliation of Net Debt

(in thousands)

(unaudited)

 

September 30,
2024

September 30,
2023

First lien term loan facility outstanding debt, current

$

12,909

$

17,983

First lien term loan facility outstanding debt, net of current portion

1,153,864

1,717,328

Second lien term loan facility outstanding debt

468,000

Receivables facility outstanding debt

80,000

50,000

Cash and cash equivalents

(127,125)

(44,450)

Net debt

$

1,119,648

$

2,208,861

Trailing twelve months adjusted EBITDA

$

369,587

$

325,755

Adjusted gross leverage ratio

3.4x

6.9x

Adjusted net leverage ratio

3.0x

6.8x

 

Waystar

Reconciliation of Trailing Twelve Months (TTM) Adjusted EBITDA

(in thousands)

(unaudited)

Three Months Ended

TTM

September 30,

June 30,

March 31,

December 31,

September 30,

2024

2024

2024

2023

2024

Net income/(loss)

$

5,413

$

(27,685)

$

(15,932)

$

(14,415)

$

(52,619)

Interest expense

18,459

50,541

57,184

52,860

179,044

Income tax expense/(benefit)

3,274

(14,611)

(6,061)

(757)

(18,155)

Depreciation and amortization

60,185

44,276

44,174

44,686

193,321

Stock-based compensation expense

7,903

36,969

2,528

2,343

49,743

Acquisition and integration costs

188

206

302

711

1,407

Costs related to amended debt agreements

106

2,368

10,402

393

13,269

IPO related costs

109

1,841

164

423

2,537

Other (a)

1,040

1,040

Adjusted EBITDA

$

96,677

$

93,905

$

92,761

$

86,244

$

369,587

(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office

 

Media Contact
Kristin Lee
kristin.lee@waystar.com

Investor Contact
Sandy Draper
investors@waystar.com
502-238-9511    

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/waystar-reports-third-quarter-2024-results-302297861.html

SOURCE Waystar