Hi, everybody. Thank you so much for joining us. I'm Elizabeth Anderson. I'm the Healthcare Services and Technology Analyst here at Evercore. Very excited to be joined by Matt Hawkins from Waystar.
Thank you.
Yeah, no, absolutely. Maybe before we kick it off, you guys obviously went public earlier this year. So maybe for people who are new to the story still, it would be just great if you wouldn't mind giving a quick intro on Waystar and what it is.
Terrific. Yeah, we are thrilled to have gone public on June 7 of this year. It was a $1 billion IPO. Waystar is a software company purpose-built for healthcare. We utilize software and deliver it to our clients who are providers to help them simplify the ways that they interact with insurance payers and also with patients. And our whole focus is to help these providers simplify payments and to help them collect faster than they ever have before, more accurately, and more efficiently. And so we're thrilled. We serve over 1 million providers across every care setting in the United States. We're processing over 5 billion insurance transactions annually that constitute over $1 trillion of gross claim charges.
We're also using all the insights that we generate from those billions of transactions that we process to help providers engage effectively with patients, to help that patient have a really good experience, also utilizing our software to make a fulsome and accurate payment to the provider.
Yeah. Now, you guys have, you know, you're at your healthcare ready company or it's a healthcare conference, right? But there's also sort of a point that you are like a vertically integrated software company, right, in some respects. So how do we kind of put you? It's sort of like, how do you sort of characterize that and bridge that difference, which maybe exists more in investors' minds than in real life?
Yes. Well, we want people to know us as a software company. At the heart of our business is a software soul, a software focus. We design, develop, and deliver market-leading cloud-based software to help the providers that we work with. We are not a services business.
No, you can see in the margins, definitely not a service.
Yeah, not a services business. And so I think as more and more people get to know who we are, they'll understand that it's a software company, again, purpose-built for this vertical market called healthcare. And there is no shortage of opportunities to leverage the power of modern technology to drive massive improvements in healthcare.
Yeah, no, for sure. And so maybe thinking about a little bit more of that, you guys obviously have had an impressive win rate and sort of as you've added new customers to things, like, why do you win when you win? And sort of if you lose, like, who are you generally losing to or why?
We're going and competing in a massive addressable market. It's a $15 billion a year addressable market. We would characterize the market as being there's a lot of existing software in the market that probably is older. There's some homegrown solutions and even manual services that could be performed by software today. So we win because we have created a cloud-based software platform that's easy to install that delivers tangible, meaningful return on investment for the clients that we work with. They love it. The Net Promoter Scores that we achieve by working with these clients and getting them to use our software is market-leading. And that's why we win.
There's a kind of a word-of-mouth benefit that we've created in healthcare where now we have clients of ours that are referencing us to their friends, so to speak, or other providers that, and we're starting to see the benefit of that. But we win ultimately because we have great software that delivers tangible return on investment.
Yep. No, that's an important thing because I feel like there's been increased focus on that over time. So it makes a ton of sense. If we're thinking about the pipeline into 2025, it being December already and sort of people's minds focused there, how do we think about the sales funnel on both the hospital and ambulatory side as we're sort of sitting towards the end of the year?
We don't necessarily break out or describe publicly the breakout of our sales pipeline. What I would say, though, is if you refer to the comments that we made in the third quarter, 2024 has been another really good and important year for us. We've seen our sales pipeline grow throughout the course of the year, as we mentioned at the end of our Q3 earnings call. We're pleased with the opportunity to engage with clients. We have really strong win rates as we do engage. As we've reported, we have over 70% plus win rates in the market. That being said, we see growth in both the ambulatory and the hospital side, and we're eager and excited about the work that we're doing and feel like we've created some momentum that'll carry us forward into 2025.
No, that makes sense. And if you're thinking about sort of maybe specific product areas, I know that, you know, obviously you have a broad suite of offerings. And if we're sitting here thinking again in December for next year, like, where are you seeing the most increased traction now?
In 2024, given the cyber attack on our competitor, we saw a lot of claims management and clearinghouse opportunities in the market as we worked to, in some ways, rescue those provider organizations that had been impacted by the cyber attack. I think that'll carry forward into 2025. Thematically, providers, they run on tight margins for the most part. They're looking for things that will enhance their ability to operate their organizations efficiently and effectively. We have software modules that promote automation. Think prior authorization automation is one example. We have a lot of traction there. We also have interest in software modules of ours that leverage artificial intelligence and machine learning. I'll give you one other example. In our eligibility automation suite and also in our insurance coverage detection suite, we offer solutions to providers where they learn a lot about the patient that they're about to serve.
Sometimes we are helping that provider detect insurance coverage for a patient where they may not even know if they have access to insurance. Those types of software modules, things that help providers operate more efficiently and effectively, bolster our sales pipeline of opportunity.
Yeah, no, that makes sense. And then if you think about like maybe the changing competitive landscape post the cyber attack, what has changed and how do people view Waystar differently, if at all?
Well, and I should say a quick aside. Today's actually a really hard day when we think about our friends at United and the tragic shooting and passing of Brian Thompson. We wish his family and the UnitedHealthcare team our very best and our sincere condolences. That cyber attack that occurred on the Optum side of that business was a very difficult time in the industry and for many provider organizations. And we were, first of all, thrilled to be in a situation where Waystar could be helpful. What we proved to the market and to ourselves, and you've heard us talk about this in our earnings call, we've helped over 30,000 providers move to the Waystar platform. What we've proven is that we can help providers very quickly without disrupting their business. I think that stays with us.
We already had strong win rates in the market against our direct competitors, but we've proven that not only can we win, we can implement very efficiently and effectively without disruption. And there's some of those things that stay with us. I think another really important concept that many provider organizations are thinking actively about is the importance of cybersecurity. And so when I think our Waystar's position is we've been long focused on having a cybersecurity posture for years. We've been working with outside firms to advise us on our cybersecurity approach, both from a preventative perspective, but also then from a recovery perspective, a rapid restoration perspective, heaven forbid if we were to be attacked. And so as we interact with provider organizations, one of the things that's emerged from this whole, this event that occurred earlier in the year was people's focus on cybersecurity.
We're grateful to be in a position to attest for that. The last thing I'd highlight is more and more provider organizations want to work with an organization that they can trust. We feel like Waystar is a software platform. There are several modules on our software platform and our end-to-end platform approach where now we're serving over a million providers across all the care settings where we're developing trust and able to leverage that in our conversations with providers. That platform approach we think is more important as provider decision makers are looking to say, "Hey, do I work with a single point solution or can I work with someone who has scale that we can trust?" I think that's another important thing that emerges from what's occurred earlier in the year.
Yeah. No, that's helpful perspective. If we think about that and sort of some of the customers, you obviously had a very well-thought-out program where you sign people up and then now you've been sort of signing people up in longer contracts. Are you starting to see how does that go from like a demand perspective? Are they thinking like, "Okay, I'll sign on to maybe another clearinghouse as well"? Or are you seeing sort of interest in adding modules or too soon to say for that? Like how do we sort of think about that as another expansion opportunity for you to add on modules?
At the outset of this cyber event that occurred, we made a decision as a business to say, "We want to be as helpful as we can be to providers, but we need to follow kind of our normal business terms and agreement," which tends to be two to three years in length with auto-renewing aspects of that agreement thereafter. And so the vast majority of the providers that have signed on to work with us have signed that type of an agreement. What we've observed is that we are the claims clearinghouse of record and we're not necessarily a backup or a redundant or a secondary option. We think that's the right approach in the market, by the way. And it's very inefficient to try to stand up two clearinghouses and to support both.
Certainly, we've heard the narrative that people want cybersecurity and that's why they might consider a secondary clearinghouse. But we think the right approach is to cybersecure your clearinghouse and that's what we work to do. And you know, in many of those conversations with the clients that we've been fortunate to add, we're already having discussions about additional software modules that they can utilize and deploy on the Waystar software platform. So we think there will be certainly a longer tail of opportunity to continue to convert impacted clients to Waystar where the primary discussion is or has been the clearinghouse. But right away, we've got a go-to-market engine that goes to work and starts to have discussion about how Waystar can be helpful with adding additional software modules.
No, that makes sense. Maybe backing up slightly, can you review your growth algorithm and sort of touch on like which parts are sort of more recurring, which parts maybe have a little bit more variability, and how does that sort of relate to your longer-term double-digit growth rate?
Let's start there. So we do talk about Waystar being a low double-digit growth compounder as our target and adjusted EBITDA margins of approximately 40%. And so when you look at our growth algorithm, it really starts with strong Gross Revenue Retention of 97%. When you look back across the last 14 or plus quarters, we have a very consistent starting point of 97% Gross Revenue Retention. We create enduring relationships with our clients. And so that goes back to that's a software company attribute. And then when you kind of walk all the way up to our Net Revenue Retention rate of approximately 108%-110%, I'll give you that walk. It's approximately 1%-2% of annual volume increase each year. A couple percentage points of price increases, 2 to 3 percentage points of price increases.
And then the remainder of that walk to the net revenue retention of 108%-110% typically comes through cross-selling and upselling additional software modules that our providers that we serve procure. And we know there's a compounding benefit when clients of ours are using more and more of our software. So we're delighted with that. The way we get to the low double-digit growth rate is then to, on top of all that work, to add new providers to the Waystar platform along the way. And we feel confident in our ability to do just that.
No, that makes sense. And I think sometimes you've talked about a normalized low double-digit. What is normalized in that situation?
Yeah, well, we've had some really strong growth as you've heard us articulate at the end of Q2 and end of Q3. I think top-line revenue growth in Q2 was 19% and Q3's revenue growth was 22%. We certainly have been responsive and the benefit of that responsiveness to these impacted providers from the cyber event was that we were able to bring on several thousand providers very rapidly. Those were shorter sales cycles, very rapid implementation cycles, and you start to see the benefit of that. We remind investors and those that are interested that the rapid growth that we've experienced is meaningful. I mean, 2024 has been a very impactful year for our business. But we remind people that we're a low double-digit growth compounder.
So when you normalize the rapid growth that we've seen this year, I guess when you look at 2023 to 2025, the number that we provided in the quarter call, I think we said we were approaching $1 billion. When you look from 2023 to 2025, that's a growth rate of approximately 12.5%. And so that's the kind of the low double-digit type thing that we're referring to when we say that.
Okay, that makes sense, and you know, obviously you have very nice EBITDA margins, about 40%, which, to your point, about being a real software company, so how do we think about the sustainability of those margins? Anything that you're worried about that would sort of push them below, and sort of what are the opportunities perhaps to expand it above current levels?
Yeah, thank you for highlighting that. We do, we have adjusted EBITDA margins of around 40% and we have years of experience leading the business at that level. As we invest in innovation, as we invest in cybersecurity, as we invest in an excellent client experience, we don't foresee anything that would take us off that path. We are able to generate those types of Adjusted EBITDA margins and strong cash flow, I might add, as we consider additional investments in the business. I don't think we foresee anything that would divert us from that type of margin range. Feel good about what we're doing there.
That makes sense, and you know, leverage has come down quite a lot even since the IPO about three times. How do we think about sort of what you would like that longer-term leverage to be, and then how do you think about sort of capital allocation now that it's coming down a bit more than you had previously forecast?
What we did is we committed that we were going to do. We utilized the approximately $1 billion of IPO proceeds to delever the business, and initially we said we'd like to get to, as you said, a net three times leverage position by the end of 2024. Given some of the good things that have occurred in our business, we got there a bit faster. Our business naturally delevers about a full turn a year, so we're pleased to be in a position where we're at three times now and we expect to continue to delever. Our focus will be to be disciplined as we generate cash in the business. We'll be very thoughtful and careful about investing in the business to drive growth into this large addressable market opportunity that we're facing to address innovation opportunities.
And also to consider, as we've done in the past, we've developed a bit of a playbook around this, is some thoughtful M&A. You know, we have a dedicated corporate development team. If we don't see everything in the market, we see the vast majority of things in our particular space. And so we're always looking at and considering how best to deploy capital, including potential tuck-in or other types of acquisition opportunities in our business. But our commitment overall is to be thoughtful, and our business model naturally lends itself to us being able to delever and be thoughtful about the use of capital.
Yeah. No, that makes sense. And you know, one of the things that's interesting about your business is how thoroughly you've integrated some of the prior bolt-ons that you've done. We've seen those like messy pictures of some amalgamations of some companies that haven't worked out quite as well. But like how do you kind of judge that buy versus build dynamic? And yeah, that would be helpful.
We have a fantastic group of product managers and leaders who have helped us create a vision and a product roadmap to meet that vision. So we're constantly considering what to build and what to supplement the build effort by buying. To your point, it starts there and it's very active for us. We've been able to, you know, in a typical quarter for us, we're building hundreds of incremental features that we're delivering to our clients in this cloud-based deployment model very rapidly without them even knowing or getting disrupted. The build effort is going on. We do go through the thoughtful scenario in a couple of categories.
We circle those on our product roadmap and think, "Gosh, if something interesting came along in that area, what would the build versus buy effort look like?", and you know, we've been fortunate to have acquired some really great software that we've added to the Waystar platform, and I suspect that we'll continue to do that. Our framework for thinking about it is, first, is it technology that aligns with ours? Is it cloud-based and can it really create value for the clients that we serve? Then, you know, is it accretive or can it be a fast path to being accretive? Is there revenue growth, an opportunity for us to leverage our scale to get that technology into the hands of more and more provider clients?
We'll work to be really thoughtful there, but excited about what we're seeing in the market and certainly excited about our own product roadmap and what we're building.
Yep. No, that makes sense. Maybe just circling back to, sorry to keep going back to this competitor disruption because I know it's just helpful, but it's just helpful to piece together the opportunities. Like if we're thinking about that, like how much of the $12 million benefit that you guys talked about came from like new providers versus like existing providers that somehow like turned something else on? Is that?
Yeah, so you're referencing the $12 million is a reference that we made in Q3 to the incremental revenue that we were able to derive from adding providers using the clearinghouse solutions or the claims management suite specifically. Yes. We don't disclose how much of that came from new providers to Waystar versus those that were using another software module of ours and then perhaps were already in our bookings pipeline and we've been able to add them rapidly, but I'd say it's a mixture of both and we were thrilled to be in a position where we could add them rapidly, and in either case, whether they were new coming to us and had never worked with us before, they were referred by a colleague or one of our current clients, and we were able to stand them up quickly using Waystar software.
We're already talking to them about additional software modules that they could consume. If they were a client of ours using patient payments, for example, our suite of patient payment solutions, and we were able to accelerate a discussion to get them to use our clearinghouse suite, that's a very standard play for us, and we were grateful to be in a position where we could help them move so rapidly.
How do we think about the clearinghouse ecosystem going forward? You know, we've traditionally had some sort of gatekeepers sort of opening up the landscape. Like what does that do for the sort of broader environment and sort of what are some specific things that you guys can kind of, how does that changing landscape help you sort of leverage your unique capabilities there?
Yes. We're at a really important time in healthcare where it's a fact that we have to be vigilant with regards to cybersecurity. And so Waystar advocates for things that would strengthen the entire healthcare network. One of those things, to your thoughtful question, is it happened to be the case historically as the industry grew up that some clearinghouses developed exclusive relationships with payers, meaning no other clearinghouse could access that particular exclusive route without going through the clearinghouse that had the exclusive arrangement. When the cyber attack occurred, those exclusive routes got exposed. And so one of the things that Waystar is an advocate for is to develop direct connections to payers without the exclusivity. That actually, if you think about it, if multiple clearinghouses have the right to have direct access to a payer, then that creates an appropriate level of redundancy.
And then if clearinghouses like the one that Waystar has can focus on cybersecurity and direct connectivity, we think that creates a better network and a better, more resilient approach to the industry that will ultimately benefit providers and payers. And you know, Waystar has been in a fortunate position where given our approach to cybersecurity, we've been able to have a lot of really thoughtful conversations with many payers who previously had had exclusive relationships with one of the clearinghouses. And we've been able to establish dozens and dozens of incremental direct connections to those payers. And we think that's long-term much better for the industry, better for providers, creates more network resiliency, and allows for the network effects within Waystar to really benefit providers, payers, and patients alike.
Got it. And we've seen some payers move to that model, but not all of them. So would you expect to sort of see that continue to sort of progress over the next, I don't know, year, a couple of years?
We would absolutely advocate for that. We think that there's some exciting developments where it makes sense for payers to kind of support those direct connections and just again to create a better network, and some of the exciting new areas of automation opportunity, I think in the world of coverage detection, prior authorization, when a claim gets denied and then ultimately appealed, having that direct connectivity between provider and payer supported by a business like Waystar's, we think is good for all of those constituents.
Okay. And what percentage of claims is now sort of each way, roughly speaking, if you don't have a specific?
We don't disclose it specifically, but what we would say is the vast majority of all of the insurance transactions that we process, from eligibilities to prior authorizations to claims and remittance notifications, those are all direct today, and we'll continue to advocate for and bolster a network that supports that direct connectivity.
Got it. And does that give you sort of like an OpEx benefit too because you don't have to pay to be part of somebody else's network? So in addition to some of the benefits that you just highlighted?
There are some modest benefits to having more direct connections versus having to go through another entity to get access to a payer. They're not necessarily material in nature, but there are modest benefits associated with the direct connections.
Got it. Okay. That makes sense. And then as we think about the mix of volumes, how do you think about your sort of mix of volumes between like commercial, Medicare, and Medicaid and how that's trended over the last few years? And sort of how do we think that going into 2025?
Part of our purpose-building Waystar's software platform was to unite all of the commercial payers, the Medicare and Medicaid forms of payment, also with patient payments on a single software platform. So we've truly united that and integrated it into our cloud-based software platform. And we think that's unique in the market. We're not aware of others being able to do that all on a single platform. We don't disclose the breakout between commercial, between Medicare and Medicaid. We're grateful to process all of those transaction types for the more than a million providers that we serve. But what I'd say is our mix is probably not too dissimilar from the broader market mix where it's approximately 60%-70% commercial, roughly 25%-30% Medicare or some form of that, and then the remainder being Medicaid. So we're not too dissimilar from the broader market there, I would guess.
Do you see payer sort of services as a future opportunity? You think there's so much like wood to chop on the provider side that that gives you more than enough to do going forward?
We have a lot to do right in front of us helping providers be successful. That being said, the work that we're doing in helping providers to be more efficient, we think naturally could benefit payers. I mean, clearly payers are focused on preventing fraud, waste, and abuse in their reimbursement process. As we deliver them highly accurate claims, you know, our first-pass claim acceptance rate exceeds 98.5% across our whole network. So as we're delivering them accurate claims at the outset, we think payers benefit from that. And at some future point, that could be an adjacency where there may be opportunity. But you know, today we're focused. Our focus, our mission is to help providers be successful, to simplify payments so they can spend more time caring for patients and less time worried about how they're going to get paid.
Yep. No, that certainly makes sense. Maybe talking about MA, you know, obviously that's been a hot-button utilization topic this year as we've seen some changes there. How do we view sort of the changing MA plan designs and the impact on your business, both in terms of overall utilization and then?
Yeah. You know, what I'd say is Waystar's business model is constructed in a way where we're insulated from any one payer type or change. We're focused on even on the transactional volumetric side of our business. We're processing transaction types, and so we don't necessarily, given the diversity of the providers that we serve, we don't necessarily feel a direct impact to any of those types of MA type changes, and we watch it closely. That being said, if you looked at, like, what are we really good at? We're really good at helping hospitals and health systems. When they use our software, these are organizations with smart, brilliant, talented people, but they're operationally constrained with, you know, they're constantly seeing more patients and they're having to do more with less, so to speak.
When they use our software, they're able to address those utilization challenges that they have and get benefit from using our software because our software is delivering automation. It's improving and organizing and prioritizing work for these provider organizations to help them be as efficient as possible, and those are the types of things that are driving cross-sell and upsell opportunities for Waystar, so I'd highlight that, as our business, we think, is somewhat insulated from any one particular policy change or payer impact, and our focus really is on just building great software that helps providers across all these different care settings maximize their effectiveness and efficiency.
Yeah. When you're talking about sort of maximizing effect and efficiency, is there a typical ROI, whether there's like a ratio or a time period for payback that you sort of see from most of your customers?
We certainly do. And we track that very closely. You know, within our software, we have dashboards that are constantly where we establish a baseline of performance. And then when people note their actual performance using Waystar software, when it's better, we're able to quickly tie off on the type of ROI that we help generate for the clients that we serve. We don't disclose publicly what those ROI thresholds are, but we know they're tangible. We know they're real. We know they decrease costs, they lower total costs of ownership, they drive efficiency and effectiveness for the providers that we serve. And they become a natural part of the dialogue that we're having with providers all the time to help them evaluate using incremental software modules of Waystar and to help just be thoughtful. How do we be a thoughtful partner with these decision makers?
Because they've got so much going on in their organizations. If we can help deliver efficiency and this real ROI to them, we help them win and then we win in the process.
Right. You win. I'm sure they then are willing to look at all sorts of things like that. One of the business we haven't talked as much about so far is on your patient pay business. Where are you seeing the real growth in that? Is it sort of within your existing base? Does that appeal to a slightly different set of providers? Can you talk a little bit more about that?
Sure. Maybe stepping back just a little bit in that area, I think most provider organizations are not well equipped to be good at patient collections.
I have a variety of personal examples.
Yes. I think we all can relate to that a bit personally. So for more and more of the U.S. population that is able and fortunate to have commercial insurance, many people are participating in high-deductible health plans. Where the first portion of at the start of any given year, a patient has to come out of pocket to pay for the health services they're receiving at the start of that year, so to speak, until they meet their deductible. Well, I guess we got into the patient payment business.
Given our deep understanding of the insurance side of the business, we thought, well, we can leverage this intelligence from the billions of insurance transactions we're processing to help enable providers to be smarter and more equipped to have conversations with patients where they can inform the patient of their financial responsibility oftentimes upfront before the patient ever has a health service, and if they can do that pre-care and put a card on file in the Waystar Patient Wallet, we tokenize and secure that and then transact, we create a financial plan. We're seeing dramatic collection rate improvements when those providers use Waystar's software there. We're seeing faster time to payment. We're seeing, I guess, a lot less downstream hassle and extra work in the tail end of the collection process when that's done more early on in the process.
And so we see progressive provider organizations wanting to do that. In fact, we host an advisory board several times a year with leading hospitals and health systems. Many of them are using our patient payment solution, our Patient Financial Care suite and achieving these types of phenomenal results. But I don't think it's just those larger organizations. I think smaller ambulatory organizations or some of the specialties where there's more out-of-pocket payment required by the patient, we're seeing good engagement there too.
Does that also feed back into provider NPS scores? Because I mean, you think about any other thing you buy, you never like buy things and then find out three months later what they cost, right?
That's a phenomenal observation. In fact, it does feed into provider NPS scores. Isn't it ironic? When a patient knows what their financial responsibility is and can pay for it or put it on file upfront, they actually equate that overall experience with the provider to be higher. And they're more loyal to that provider, more willing to be loyal to that provider statistically as measured by NPS. It's a fact that a patient, the lifetime value of a patient to a provider organization, if you can think about it that way, is close to $1.5 million. And so smart provider organizations are realizing that if they engage the patient, help create a transparent relationship with the patient, or the patient understands their financial responsibility upfront, then they're more likely to retain and develop a long-term relationship with that patient.
Waystar is helping to do that.
No, that makes a ton of sense. Have you seen the competition in that patient pay business shift in any way? Can you sort of talk about the competitive landscape? I know there's a whole different set of competitors than you see on a lot of the other parts of your business. So maybe talk about the evolution of that and where we are today.
We think it's evolving, and we haven't necessarily at the street level, if I can say it that way, we haven't necessarily noticed a change in who the direct competitors are. We have seen some acquisitions and a little bit of consolidation taking place, but we haven't seen a shift in that recently. I think where Waystar competes effectively is when that provider organization understands the intelligence that Waystar can help bring to creating an accurate patient payment estimate and then in the software putting a card on file and then creating an elegant experience. I think we go head to head very effectively against anybody in the market that way.
How do those implementations work? Because it's a little bit of a different implementation situation than your other bunch of modules.
It is. You know, we have, just speaking to implementations for a moment generally, both sales cycles and implementations differ by product and also by provider type. So for the larger type of providers, they tend to be more planned and methodical in their rollout of Waystar software. What I'd say is, generally speaking, Waystar software can be configured and deployed very rapidly as we've experienced this year with little to no disruption at the provider site. But with some of these solutions like patient payments, they want to have a planned rollout where they're actually training people within the provider organization on the behavioral shift involved in having a conversation with a patient earlier than they've ever had before or sometimes for the first time.
I think all of us can experience when we've gone to a doctor and never get asked about the financial responsibility and then we get surprised when three months later a bill shows up and we owe a bunch of money and we have a hard time recollecting what was that even for. So part of the implementation for patient payment solutions is training those within a provider organization that are having conversations with patients themselves about their financial responsibility and actually creating a way for them again to put that card on file to create a financial plan. What we see is most providers are very willing to establish financial plans that are convenient for the patient.
That's where a lot of the implementation cycles are involved is in training and helping that provider figure out how they're going to use our software in a way that helps their organization be successful.
Got it. Okay. That makes sense. In the last couple of minutes, if you're sitting in your seat and you're talking to investors, what are the one or two things that you feel like people are most misunderstanding about the business at this point in time?
Here we are as a software company in healthcare. We feel like we have a mission and a role to play to help provider organizations bring clarity to and simplify their payment processes with our modern software. Whether it's the subscription portion of our business or the volumetric portion of our business, we think we've got a business model that is durable, that has great visibility to. We're a growth compounder and we see that a long ways out. I mean, every transaction we process is on our software platform. So we see it. And some people may confuse and say, oh, that transaction portion of the Waystar software business isn't as visible or as predictable. We see it as very much as visibility just given that we're processing each of those every day on our software. And we're updating our forecasting algorithms all the time.
So that's one thing I would just highlight is great visibility to our business model. We feel a sense of momentum and confidence in the work that we're doing to help providers be successful as we articulated recently in our Q3 call. And we've seen our pipeline build throughout the course of the year. So what we're doing, we think, is taking effect. And we've got a real opportunity to help disrupt in some cases and transform a U.S. healthcare market that desperately needs improvement. So we're excited about that. And I would underscore that.
That makes sense. Well, thank you so much, Matt. It's been a pleasure.
Thank you. Nice to see you, Elizabeth. Thank you.