Billing Software Leader Waystar to Delay IPO Based Upon Market Conditions; Shows Continuing Challenging Environment for Healthcare IT Providers
11-3-23 (by: Scott Gleason) Waystar, a healthcare payments company, has chosen to postpone its initial public offering (IPO) due to the ongoing market turbulence in the United States, as per a confidential source. The decision to delay the IPO was a response to the market’s volatility, even though the company had received positive feedback from investors during the testing phase. While Waystar had previously made its IPO filing public in October and aimed to list on the Nasdaq with a potential valuation of up to $8 billion, including debt, it now plans to revisit its IPO efforts, potentially in December or even as late as 2024, once the market stabilizes.
Waystar’s mission is to simplify healthcare payments using its modern cloud-based software, ultimately helping healthcare providers prioritize patient care and optimize their financial performance. The company’s enterprise-grade platform addresses the complex and disparate processes that healthcare providers deal with to ensure accurate reimbursement, all while enhancing the payments experience for providers, patients, and payers. This is achieved through the application of internally developed artificial intelligence (AI) and proprietary advanced algorithms, which automate payment-related workflow tasks and drive continuous improvement in the healthcare payment ecosystem. Waystar benefits from powerful network effects as its cloud-based software processes millions of transactions daily, providing insights that enhance the platform and improve the performance of its products. Historically, healthcare providers have relied on manual processes and systems to navigate these complexities, resulting in delays, lost revenue, and slower payments. The company’s software is used by healthcare providers of all sizes, ranging from physician practices, clinics, and surgical centers to large hospitals and health systems. Waystar serves approximately 30,000 clients, including 18 of the top 22 U.S. News Best Hospitals. The company has achieved recurring, predictable, and profitable growth with over 99% of its revenue coming from recurring subscriptions or highly predictable volumes.
Waystar has identified its total addressable market (TAM) for its current software solution set to be approximately $15 billion within the United States healthcare provider market. and Waystar anticipates its TAM to grow to nearly $20 billion by 2027, driven by a 5% compounded annual growth rate (CAGR) over the next five years.