Waystar Holding Corp. Reports 21.7% Revenue Growth, Net Income Turnaround in Q3 2024

Waystar Holding Corp. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $240.1 million for the three months ended September 30, 2024, marking a 21.7% increase from $197.3 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $699.4 million, up 19.7% from $584.3 million year-over-year. This growth was primarily driven by increases in both subscription revenue, which rose to $118.0 million (up 15.9%), and volume-based revenue, which surged to $120.7 million (up 27.8%).

Despite the revenue growth, the company reported a net income of $5.4 million for the third quarter of 2024, a significant turnaround from a net loss of $15.5 million in the same quarter of 2023. However, for the nine-month period, Waystar recorded a net loss of $38.2 million, slightly higher than the $36.9 million loss reported in the prior year. The income from operations for the nine months decreased to $70.6 million, down 32.4% from $104.4 million in 2023, reflecting increased operating expenses, which rose to $628.9 million from $479.9 million.

The company’s total current assets increased to $305.4 million as of September 30, 2024, compared to $222.1 million at the end of 2023. Cash and cash equivalents saw a substantial rise to $127.1 million from $35.6 million. This increase was bolstered by the completion of an initial public offering (IPO) in June 2024, which raised approximately $914.3 million in net proceeds, allowing the company to repay significant portions of its debt, including $909.1 million on its First Lien Credit Facility.

Waystar also made strategic moves, including the acquisition of HealthPay24 for $31.4 million in cash in August 2023, which was aimed at enhancing its service offerings. The company has completed nine acquisitions since 2018, with a focus on expanding its market reach and capabilities.

Operating expenses increased significantly, with general and administrative expenses rising by 90.9% to $88.8 million for the nine months ended September 30, 2024, reflecting the costs associated with being a public company. The company anticipates ongoing public company expenses, including additional insurance and compliance costs, which will impact future financial results.

Overall, Waystar's financial performance indicates a robust growth trajectory in revenue, albeit with challenges in profitability and rising operational costs.