This Healthtech Company Is Making Millions Using AI for Healthcare Payments

Revenue up 18% YoY

Image generated using KREA | Flux

Expecting a young public company to multiply your capital is like trying to outscore Steph Curry in three-point shots.

So when my colleague Vladimir said he’s looking for the next big IPO (a company that just did an Initial Public Offering), I rolled my eyes.

“Your chances of making money on IPOs are slim, man,” I said.

I avoid companies that went public recently. Their stock prices swing wildly. They have to prove they can grow. It takes time.

But a week after talking to Vladimir I came across Waystar Holdings. A look at its fundamentals showed that this young IPO could be an exception to my rule.

How it helps doctors focus on patients

Waystar Holdings is a software company that simplifies healthcare payments.

It uses modern cloud-based software with AI and machine learning to streamline work for healthcare providers like hospitals and physician practices.

Waystar’s services. Screenshot by the author from https://www.waystar.com/

Waystar helps with billing, processing of insurance claims, and financial analytics.

The company has three revenue sources:

• Subscription revenue covers management, payment posting, analytics, and patient engagement. It’s recurring and it’s about 50% of the total revenue.

• Transaction revenue depends on the volume of processed claims and patient payments. It’s also close to 50% of the total revenue.

• Revenue from professional services and add-on offerings comes from training, consulting, and premium AI modules like AltitudeAI that process denied claims. This is a small chunk of the total revenue.

Put another way, Waystar takes care of the money side of healthcare. So medical professionals can prioritize patient care and optimize their financial performance.

You as an investor can capitalize on this opportunity.

Profitability kept the stock from falling