WAY Earnings Prediction
The chart below shows how WAY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WAY sees a -1.70% change in stock price 10 days leading up to the earnings, and a +7.17% change 10 days following the report. On the earnings day itself, the stock moves by -0.97%. This data can give you a slight idea of what to expect for the next quarter's release.
WAY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
244.10M
18.10%
1.66%
Gross Margin
51.85%
13.04%
25.27%
Operating Margin
21.77%
19.42%
92.48%
Net Margin
7.82%
212.20%
247.56%
EPS
0.11
222.22%
266.67%
No Data Available
WAY Earnings Analysis
Waystar Holding Corp Corporation (WAY.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Waystar Holding Corp. reported an EPS of $0.29, exceeding expectations of $0.15, indicating strong financial performance.
Strong Revenue Performance: The company achieved a revenue of $244 million in Q4, representing an 18% year-over-year increase, and a full year revenue of $944 million, reflecting a 19% growth, surpassing their long-term target of low double-digit growth.
Strong Client Retention: Net revenue retention was reported at 110% in Q4, at the high end of their historical range, showcasing strong client retention and satisfaction.
Client Growth Milestone: The number of clients generating over $100,000 in trailing 12-month revenue grew to 1,203, marking a 15% year-over-year increase, indicating successful client expansion.
Adjusted EBITDA Performance: Adjusted EBITDA reached $100 million in Q4, up 16% year-over-year, with a full year margin of 40.6%, demonstrating operational efficiency and profitability.
Strong Cash Generation: Waystar's unlevered free cash flow for Q4 was $80 million, totaling $265 million for the year, reflecting strong cash generation capabilities.
AI-Driven Operational Efficiency: The launch of Waystar AltitudeAI and its generative AI capabilities has shown promising results, with clients completing appeal packages three times faster, enhancing operational efficiency.
Trusted Vendor Recognition: Waystar was recognized as the number one trusted vendor among competitors in an independent market study, highlighting their commitment to client experience and innovation.
Trusted Company Recognition: The company was named one of America's most trusted companies by Forbes, reinforcing its strong reputation in the industry.
Best Workplace Recognition: Waystar's team was recognized by Fortune as one of the best workplaces in healthcare, reflecting a positive work culture and employee satisfaction.
Negative
Revenue Growth Deceleration: Revenue growth is expected to slow down in 2025, with guidance indicating only 7% growth compared to the 19% growth in 2024, suggesting a potential deceleration in momentum.
Net Loss Improvement: The company experienced a net loss of $19 million for the full year 2024, although this was an improvement from a loss of $51 million in 2023, indicating ongoing financial challenges.
EBITDA Margin and Investments: Despite achieving a strong adjusted EBITDA margin of 40.6%, the company continues to invest heavily in software development and cybersecurity, which may impact future profitability.
Sustainability of Revenue Growth: The reliance on rapid implementations due to a competitor's cyber attack raises concerns about the sustainability of the revenue growth, as this was a significant factor in the 2024 performance.
Flat EBITDA Guidance: The adjusted EBITDA guidance for 2025 remains flat at around 40%, indicating that while the company is growing, it may not be able to significantly improve profitability in the near term.
WAY FAQs
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WAY Earning Call Sentiment
Waystar Holding Corp. (NASDAQ:WAY) Q4 2024 Earnings Call Transcript
WAY.O
3.4%Positive
The earnings call shows strong financial performance with significant revenue growth and improved net income. The company's cash flow is robust, and they have a strategic plan for reinvestment and debt reduction. Despite some concerns in volume-based revenue, management expects growth to return to normal rates. The Q&A indicates ongoing efforts in expanding payer connections and M&A contributions. The lack of comment on patient credit quality is a minor concern, but overall, the sentiment is positive with strong fundamentals and strategic initiatives.
