Waystar Holding Corp Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anne Samuel - JP Morgan - Analyst : Hi, thanks so much for the question and congrats on a great quarter. In the fourth quarter heading into the fourth quarter, you had said that you were expecting, the volume-based revenue to see a seasonal drop off just due to deductibles rolling off, but your performance is still, really strong despite that. So I was hoping maybe you could just talk about the dynamics of what's happening around utilization and your volume-based revenue and how do we reconcile that with maybe the more normalized rate that you're expecting in 2025.

Question: Elizabeth Anderson - Evercore - Analyst : Hi guys, thanks so much for the question. Can you help us, give us an update, one on the direct connectivity that you're seeing with payers, and then two, can you just, maybe help us quantify some of the M&A contribution and sort of how you think about the sort of contribution maybe from Health pay and all of AI assume that was pretty small, but I just want to make sure I'm teeing it up vis a vis the graph that you had in the presentation.

Question: Richard Close - Canaccord Genuity - Analyst : Yes, congratulations and thanks for the question. Matt. Obviously a lot of unknowns on what policy and funding changes are going to come out of DC. I just want, Medicaid specifically maybe the ACA, but how are you thinking about how Waystar is position, any potential headwinds for your clients? Maybe tailwinds, but just getting your perspectives on that would be helpful and impact to purchasing decisions, impact the volumes and such.

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Great, thanks so much for taking the question, Matt. I just wanted to dig a little deeper on the 30% of change related customers pursuing cross sell opportunities beyond remittance and claims. Could you just elaborate a little bit more on which pieces of the platform customers are most interested in and then maybe for Steve how you're embedding that into the guidance of it all here. Thanks so Much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 18, 2025 / 1:30PM, WAY.OQ - Q4 2024 Waystar Holding Corp Earnings Call

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Yeah, the question was about how we factored in the cross sell upsell into our guidance for 2025.

Question: George Hill - Deutsche Bank - Analyst : Hey, good morning guys, and thank you for taking the question. I guess Matt and Steve, I'm going to ask the product question a slightly different way. And as we look at the 2025 guide, I mean, I recognize that you guys have a 110% NRR, so that kind of that kind of captures basically most of the growth for 2025. Steve, I was wondering if you might talk about like if we thought about it as new footprint growth versus wallet share gains versus core growth, which is just I'll call that the volume and price mix of healthcare. Would love it if you could attribute the 2025 revenue growth in those three buckets. And then I'd love it if you could just comment for a second on what you guys are seeing in patient credit quality and are you guys seeing any erosion there like patient payable stays extending or anything like that Thank you.

Question: Brian Peterson - Raymond James - Analyst : Yeah, thank you. Good morning. This is Jonathan to carry on for Brian. Thanks for taking the question. So, we heard last quarter about Waystar being invited to the table and increasingly complex RFPs. So just curious, has that traction with larger and more complex systems and providers picked up in 2025? I know you noted a stronger pipeline this year than last, so just curious if a $100,000 deal is becoming a larger portion of the pipeline than historically is a trend that you all are seeing. Thank you.

Question: Allen Lutz - Bank of America. - Analyst : Good morning. Thanks for taking the question. One for Mattew, Steve. The change benefit was flat quarter over quarter. Is there any way to bifurcate between ambulatory and health systems as it relates to the change benefit that you've seen over the past 3 quarters? I would think just taking a step back here, the first type of customer would be on the ambulatory side. They'd be much more willing to move very quickly, and you've talked in the past about a 12 month to 18 month sale cycle for health systems. And so it seems like maybe that opportunity is coming more into you know as a near term opportunity for you or maybe it wasn't before. Is that the right way to think about the benefit that you've seen to date and maybe the benefit opportunity as we look into 2025? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 18, 2025 / 1:30PM, WAY.OQ - Q4 2024 Waystar Holding Corp Earnings Call

Question: Saket Kalia - Barclays - Analyst : Okay great hey guys, thanks for taking my question here nice finish of the year. Matthew, maybe for you just to go back to the pipeline theme a little bit, given the consistent land and expand motion here, how do you kind of think about the pipeline of cross sell into some of those competitive wins that you had in 2024. See if maybe relatedly for you, I know you talked about the components of NRR, but maybe directionally, how should we think about NRR in 2025?