Where there’s a will, there’s a WAY

More than one year after digital health’s last public exit, revenue cycle management (RCM) company Waystar filed a registration statement with the Securities and Exchange Commission (SEC) last week, a main step toward an initial public offering (IPO). The company, which would trade under the stock ticker WAY, facilitated more than 4 billion healthcare payment transactions in 2022 and serves 30K+ healthcare provider organization customers via subscription models.

The question on everyone’s mind is whether Waystar will be the spark to thaw digital health’s IPO freeze. Our hunch is that Waystar’s exit readiness is an outlier, rather than a sector signal. While the company is not yet profitable, its relatively strong financial position ($387M in 1H2023 revenue, with $21M in net losses over the same period) and publicy-traded comps—like its main competitor, R1 RCM—gave the company a strong position to go public. Other digital health players preparing to IPO will need similarly strong track records of consistent business metrics to weather an exit in today’s lukewarm public market environment.


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