Waystar Holding Corp.(US:WAY)2025-04-30 20:06Financial Performance - Revenue for Q1 2025 was $256,435,000, representing a 14.1% increase from $224,792,000 in Q1 2024[20] - Net income for Q1 2025 was $29,269,000, compared to a net loss of $15,932,000 in Q1 2024, marking a significant turnaround[20] - Basic net income per share for Q1 2025 was $0.17, compared to a loss of $0.13 per share in Q1 2024[20] - Comprehensive income for Q1 2025 was $28,704,000, compared to a comprehensive loss of $16,107,000 in Q1 2024[22] - Total revenues for the three months ended March 31, 2025, were $256.4 million, representing a 14.1% increase from $224.8 million in the same period of 2024[68] - Subscription revenue increased to $125.0 million in Q1 2025 from $106.1 million in Q1 2024, a growth of 17.9%[68] - Volume-based revenue rose to $129.9 million in Q1 2025, up from $117.1 million in Q1 2024, marking a 10.9% increase[68] - Adjusted EBITDA for the three months ended March 31, 2025, was $107.7 million, a 16.2% increase from $92.8 million in the prior year[119] - Non-GAAP net income for the three months ended March 31, 2025, was $58.7 million, compared to $25.5 million in 2024, an increase of 129.5%[155] Cash Flow and Assets - Cash and cash equivalents increased to $223,995,000 as of March 31, 2025, from $182,133,000 at December 31, 2024[18] - Total assets rose to $4,619,178,000 as of March 31, 2025, compared to $4,577,004,000 at December 31, 2024[18] - The company generated $64,249,000 in net cash from operating activities in Q1 2025, a significant increase from $10,730,000 in Q1 2024[28] - Cash flows from operating activities increased significantly to $64.2 million for the three months ended March 31, 2025, compared to $10.7 million in 2024, an increase of 498.8%[163] - Cash flows used in investing activities rose to $29.9 million in the first quarter of 2025, compared to $5.6 million in 2024, primarily due to short-term investments[165] Expenses and Liabilities - Operating expenses totaled $191,226,000 in Q1 2025, slightly up from $189,601,000 in Q1 2024[20] - Income tax expense for Q1 2025 was $17.0 million, compared to a benefit of $6.1 million in Q1 2024, resulting in effective tax rates of 36.8% and 27.4%, respectively[10] - Total outstanding debt was $1,240.6 million, slightly down from $1,243.5 million as of December 31, 2024[85] - Interest expense decreased significantly by $38.3 million, or 66.9%, to $18.9 million, attributed to paydowns of the First Lien Credit Facility totaling $1.0 billion[147] Client and Revenue Retention - As of March 31, 2025, Waystar had a Net Revenue Retention Rate of 113.5% and 1,244 clients generating over $100,000 in revenue over the past twelve months[119] - The count of clients generating over $100,000 in revenue increased to 1,244 in March 2025, compared to 1,080 in March 2024, a growth of 15.2%[158] Stock and Compensation - The company recorded a stock-based compensation expense of $2.3 million for options vested in Q1 2025, compared to $1.3 million in Q1 2024[101] - Stock-based compensation expense recorded for the three months ended March 31, 2025, was $6.7 million, compared to $2.5 million for the same period in 2024[109] - The company expects to incur compensation expense of approximately $47.6 million over a weighted average of 3.5 years for all unvested time-based awards outstanding on March 31, 2025[104] Market and Competitive Landscape - The company operates in a highly competitive industry and faces risks related to client retention, technological changes, and government regulations[30] - Waystar Holding Corp. derives 99% of its total revenue from subscription and volume-based services, with implementation fees and hardware sales accounting for less than 1%[37] Accounting and Compliance - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-13[57][58] - The report includes various exhibits related to corporate governance and compliance certifications[190]