Waystar (WAY) Q4 Earnings: What to Expect and What It Means for Investors

As Waystar Holding Corp. (NASDAQ: WAY) prepares to report its fourth-quarter and full-year 2024 financial results on Tuesday, February 18, investors are eager to understand the company's performance and the implications for its stock price. Waystar, a leading provider of healthcare payment software, has seen strong analyst ratings and a positive outlook heading into the earnings report. Here's what you need to know ahead of Waystar's Q4 earnings.

Analyst Ratings and Price Targets

Waystar has received strong analyst ratings, with an average target price of $37.2 and a consensus of "Strong Buy." Out of 9 analysts, 6 (66.67%) are recommending WAY as a Strong Buy, 3 (33.33%) are recommending WAY as a Buy, 0 (0%) are recommending WAY as a Hold, 0 (0%) are recommending WAY as a Sell, and 0 (0%) are recommending WAY as a Strong Sell. This positive sentiment suggests that analysts believe Waystar's stock is likely to perform very well in the near future and significantly outperform the market.



Financial Forecasts and Guidance

Waystar has provided guidance for its full fiscal year 2024, with total revenue expected to be between $926 million and $934 million, Adjusted EBITDA expected to be between $374 million and $378 million, and non-GAAP net income 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. These guidance figures suggest that Waystar is on track to deliver strong financial performance in 2024.

Key Metrics and Revenue Disaggregation

Waystar's key metrics and revenue disaggregation for the third quarter of 2024 showed strong growth:

* 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 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
* 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

These strong financial results indicate that Waystar's business is performing well and that the company is on track to meet or exceed its guidance for the full fiscal year 2024.

What to Expect from Waystar's Q4 Earnings

Investors should expect Waystar's Q4 earnings to provide insight into the company's performance in the fourth quarter and its outlook for the coming year. Key metrics to watch include:

* Revenue growth, particularly in subscription and volume-based revenue
* Net income and non-GAAP net income, as well as net income margin and Adjusted EBITDA margin
* Cash flow from operations and Unlevered Free Cash Flow
* Client growth and retention rates
* Guidance for the full fiscal year 2025

If Waystar's Q4 earnings meet or exceed expectations, the stock price could see further upside. However, if the results disappoint, the stock price could face downward pressure. Investors should pay close attention to the company's guidance for the coming year, as this will provide valuable insight into Waystar's expected performance and the potential for future growth.



In conclusion, Waystar's Q4 earnings will be a critical event for investors, providing valuable insight into the company's performance and the potential for future growth. With strong analyst ratings and a positive outlook, Waystar is well-positioned to deliver strong financial results and continue its momentum in the coming year. Investors should pay close attention to the company's earnings report and guidance for the full fiscal year 2025.