Waystar Holding Corp To Acquire Iodine Software Transcript

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

Question: Adam Hotchkiss - Goldman Sachs Group Inc - Analyst : Great thanks so much for taking the questions. I'll keep it to one just would love any color on the overlap between the Iodine customer base and the way our customer base and how much of a consideration analysis of iodine's customer base was when making the acquisition thanks so much.

Question: Adam Hotchkiss - Goldman Sachs Group Inc - Analyst : Okay great thanks Matt I'll hop back in the queue.

Question: Allen Lutz - Bank of America - Analyst : Good afternoon and thanks for taking the questions, Matt. How much is AI driving buying decisions for hospitals today when they're selecting a prospective vendor and then what would you say the biggest area of differentiation is for Iodine? Thank you.

Question: Richard Close - Canaccord Genuity - Analyst : Yes, thanks for the questions. Congratulations Matt, on, the transaction. Just want to dive a little bit deeper, into, I guess, something you said in response to the first question on customer overlap. It, with respect to the product overlap, you mentioned, there is some, between Waystar and Iodine. Can you go into a little bit more detail in terms of where you might have overlap and maybe like the holes that Waystar had that Iodine is filling specifically.

Question: Richard Close - Canaccord Genuity - Analyst : Thanks that's very helpful congrats.

Question: George Hill - Deutsche Bank AG - Analyst : Hey, good morning, Matt. Thanks for taking the question. Just one of the things I wanted to ask about was we talked a little bit about customer overlap, and I'd be interested more about like how do you think about the cross sell of Waystar's products into the iodine footprint? I think of Iodine is having a bit. More of an inpatient footprint versus Waystar is more outpatient footprint which is I'd be kind of be interested to hear you talk about, like do you see the greater opportunity to add the iodine functionality to the Waystar base or to bring the Waystar products to the Iodine base.

Question: George Hill - Deutsche Bank AG - Analyst : I appreciate the call thank you.

Question: Elizabeth Anderson - Evercore Inc - Analyst : Hi guys, thanks so much for the question. I have two questions. One, could you talk a little bit about more about the Iodine revenue model? Is it subscription based? Is it claims based? Is there a combination based? That would be helpful. And two, can you talk about any interaction with your current like altitude, offerings and you know if we should think about any product overlap there and then also how do we sort of think about the integration, the timeline from a tech perspective. Sorry, that was actually (inaudible)

Question: Elizabeth Anderson - Evercore Inc - Analyst : Awesome thank you.

Question: Brian Peterson - Raymond James Holdings (Canada) Inc - Analyst : Thanks gentlemen. And congrats on the deal. Is there anything that you can share on the growth trajectory of the business, even if it's kind of a rough sense and I I'd also love to understand what their go to market looks like primarily direct or if there's any incremental partnership opportunities for you guys either from a technology perspective or a consulting perspective. Thanks guys.

Question: Brian Peterson - Raymond James Holdings (Canada) Inc - Analyst : Great answer. Thanks, Matt.

Question: Ryan Daniels - William Blair Capital Partners - Analyst : Yeah guys, thanks for taking the questions and congrats to both the teams on completing the RCM Christmas puzzle here. I guess one area I want to dive into a little bit deeper, and you hit on this already, but I think this is an important data point. There's so much data on your platform and now you're acquiring an asset that does more than 1 in 3 inpatient discharges. So, I'm curious, as you think about the product roadmap post deal over the next 2 years -3 years, how much opportunity do you see to kind of shift your internal R&D budget towards AI and how much of the Iodine platform and learnings and large language models can be moved over to Waystar and vice versa, so. Just trying to get a feel for how transformative this really could be longer term to kind of amplify, as you said, the broader product portfolio. 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. JULY 23, 2025 / 9:30PM, WAY.OQ - Waystar Holding Corp To Acquire Iodine Software

Question: Jailendra Singh - Truist Securities - Analyst : Yeah, thank you. This is Jean Rosin from Truist Securities. Congratulations on the deal. I want to, deep, dive deeper into the thought process of buy versus build on this projection. Clearly some of the capabilities you guys talked about for IR being around denials management, revenue capture, maximizing revenue reimbursement. I mean, you guys have talked similar stuff as well you might not have exact project on those lines. Just how did you go about deciding between going deeper into back-end solutions versus via M&A versus expanding into new areas such as front-end patient facing solutions where Waystar doesn't have any [pres] Just give us thought process on buy versus build and front end versus back end.

Question: Jailendra Singh - Truist Securities - Analyst : Great, thanks a lot.

Question: Charles Rhyee - TD Cowen - Analyst : Yeah, thanks for taking the questions. If I heard correctly earlier, I think you guys mentioned that, with the acquisition and the cross-selling opportunity, we should see sort of an acceleration of revenue growth in 2027 in particular. Does this, does I fundamentally change then the growth algorithm if we think about how, you've kind of talked about. In the past of, from sort of net retention plus cross cells, plus new logos, etc. Does that cross-sell piece of the algorithm, is that now sort of permanently increased and something that you haven't talked about perhaps is, what percent of the Iodine customer base are perhaps clearing house customers of way, we are, is that also an opportunity?

Question: Charles Rhyee - TD Cowen - Analyst : Great, thanks, and congrats. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 23, 2025 / 9:30PM, WAY.OQ - Waystar Holding Corp To Acquire Iodine Software

Question: Daniel Grosslight - Citi - Analyst : Hi guys, thanks for taking the question and congrats on the acquisition. I was wondering if you can provide a bit more detail on where the $15 million of cost synergies will come from and what the cadence could potentially look like over the next couple years. And secondly, I and CO is going to be a significant shareholder here. I'm curious if he's also going to, assume an operational role at the company. Thanks.

Question: Daniel Grosslight - Citi - Analyst : Thank you.

Question: Steven Valiquette - Mizuho Securities USA LLC - Analyst : Oh thanks. Let me offer my congrats on the transaction as well. Yeah, I guess my question is really just understanding that the class rankings are really not the be all end all within healthcare IT. Iodine has consistently ranked, pretty high in the class rankings for CDI. I think they used to be number one a few years ago, but now, but they don't seem to show up in any other categories outside of CDI, at least for now. So I guess if you just confirm whether or not, CDI is really the core offering within iodine. And then you know you sort of touched on this, but as far as for Was are trying to round out your RCM, platform approach. How critical is CDI within some of the places where you're trying to, build out that platform versus other areas that you still may be looking to fill out as well 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. JULY 23, 2025 / 9:30PM, WAY.OQ - Waystar Holding Corp To Acquire Iodine Software

Question: Steven Valiquette - Mizuho Securities USA LLC - Analyst : Alright, that's great thanks.