Waterdrop Inc. Broadcasts Third Quarter 2024 Unaudited Monetary Outcomes By Investing.com

BEIJING, Dec. 11, 2024 /PRNewswire/ — Waterdrop Inc. (“Waterdrop“, the “Firm” or “we”) (NYSE: WDH), a number one know-how platform devoted to insurance coverage and healthcare service with a constructive social influence, at this time introduced its unaudited monetary outcomes for the three and 9 months ended September  30, 2024.

Monetary and Operational Highlights for the Third  Quarter of 2024

• Marked enchancment in profitability and wholesome liquidity: Within the third quarter of 2024, web revenue attributable to our bizarre shareholders reached RMB92.8 million, representing a year-over-year development of 152.6%. As of September 30, 2024, we continued to generate constructive working money stream through the third quarter of 2024.
• Robust enterprise efficiency: For the third quarter of 2024, the first-year premiums (“FYP”) generated via our insurance coverage enterprise amounted to RMB2,041.8 million (US$290.9 million), representing a rise of 20.4% yr over yr. Web working income was RMB704.1 million (US$100.3 million), representing a rise of two.6% yr over yr.
• Expanded crowdfunding protection: As of September 30, 2024, round 466 million individuals cumulatively had donated an combination of RMB66.3 billion to three.32 million sufferers via Waterdrop Medical (TASE:) Crowdfunding.
• Reliable efficiency in affected person recruitment: As of September 30, 2024, the Firm had cumulatively enrolled over 9,500 sufferers into 1,137 scientific trial applications via the E-Discover Platform.

Mr.  Peng Shen, Founder, Chairman, and Chief Govt Officer of Waterdrop, commented, “We’re delighted to announce one other quarter of strong profitability, with web revenue attributable to bizarre shareholders reaching 2.5 occasions that of the third quarter final yr.

Our insurance coverage enterprise has achieved a 14.8% quarter-over-quarter development in FYP and maintained an working revenue margin above 20%. We delivered strong FYP development in each short-term and long-term insurance coverage, pushed by consumer acquisition, progressive tailored merchandise, and the contribution of  Shenlanbao. I imagine with our data-driven consumer insights, distinctive product choices, and diversified distribution channels, we’re well-positioned to take care of a robust aggressive benefit.

This quarter marks a big milestone for our medical crowdfunding enterprise and the trade as an entire, following the issuance of the ‘Measures for Administration of On-line Service Platforms for People Looking for Monetary Assist‘ launched by Ministry of Civil Affairs of PRC and different authorities departments on September 5, 2024. The Measures for Administration formally announce the authorized framework of fundraising sector, and supply steerage on administration and knowledge transparency.

Throughout this quarter, our digital scientific trial answer revenue continued its development, realizing a quarter-over-quarter improve of 17.4%. We collaborated with a complete of 184 pharmaceutical firms and contract analysis organizations (“CROs”). Furthermore, we enrolled 909 sufferers and initiated providers for 88 new applications through the third quarter of 2024.

We’re additionally delighted to report notable progress in AI. Internally, ‘AI Marketing consultant’, a conversational AI agent powered by our ‘Waterdrop Guardian’  massive language mannequin, has reached the capability to generate million yuan in month-to-month premiums by serving consumer inquires. In the meantime, a brand new utility, ‘AI Service High quality Agent’, was deployed to streamline the service high quality inspection course of by changing handbook work. Externally, we launched ‘AI High Gross sales Platform 3.0’, a conversational AI platform that customizes AI gross sales brokers for companies, and have initiated pilots with insurance coverage carriers and corporations in non-insurance sectors.

We worth the belief from our traders and prioritize shareholder returns. By the top of November 2024, the Firm had cumulatively repurchased roughly 50.9 million ADSs from the open market. Furthermore, we lately accomplished our second particular money dividend of roughly US$7.3 million.

With our sturdy execution functionality, ample money reserves and steady profitability, we are going to proceed to concentrate on fostering sustainable development, and try to ship substantial returns to our shareholders and traders.”

Monetary Outcomes for the Third  Quarter of 2024

Working income, web

Web working income for the third quarter of 2024 elevated by 2.6% yr over yr to RMB704.1 million (US$100.3 million) from RMB686.5 million for a similar interval of 2023. On a quarter-over-quarter foundation, web working income elevated by 4.1%.

• Insurance coverage-related revenue consists of insurance coverage brokerage revenue and technical service revenue. Insurance coverage brokerage revenue represents brokerage commissions earned from insurance coverage firms. Technical service revenue is derived from offering technical providers together with buyer relationship upkeep, buyer criticism administration, declare assessment, and consumer referral providers, amongst different issues, to insurance coverage firms, insurance coverage brokers, and company firms. Our insurance-related revenue amounted to RMB600.7 million (US$85.6 million) within the third quarter of 2024, representing a lower of three.0% yr over yr from RMB619.3 million for the third quarter of 2023, which was primarily as a result of lower in technical service revenue. On a quarter-over-quarter foundation, insurance-related revenue elevated by 4.7%.
• Crowdfunding service charges symbolize the service revenue earned when sufferers efficiently withdraw the proceeds from their crowdfunding campaigns. Our function is to function the Waterdrop Medical Crowdfunding platform to offer crowdfunding associated providers via the web, enabling sufferers with vital medical payments to hunt assist from caring hearts via know-how (the “medical crowdfunding providers”). Our medical crowdfunding providers typically include offering technical and web help, managing, reviewing and supervising the crowdfunding campaigns, offering complete danger administration and anti-fraud measures, and facilitating the gathering and switch of the funds. For the third quarter of 2024, we generated RMB65.8 million (US$9.4 million) in service charges, representing a rise of 83.0% yr over yr from RMB36.0 million for the third quarter of 2023. On a quarter-over-quarter foundation, crowdfunding service charges decreased by 5.0%.
• Digital scientific trial answer revenue represents the service revenue earned from our prospects primarily together with biopharmaceutical firms and main biotechnology firms. We match certified and appropriate sufferers for enrollment in scientific trials for our prospects and generate digital scientific trial answer income for profitable matches and we sometimes cost our prospects a set unit worth per profitable match. For the third quarter of 2024, our digital scientific trial answer revenue amounted to RMB24.3 million (US$3.5 million), representing a lower of 12.1% from RMB27.6 million in the identical interval of 2023. On a quarter-over-quarter foundation, digital scientific trial answer revenue elevated by 17.4%.

Working prices and bills

Working prices and bills decreased by 1.6% yr over yr to RMB677.7  million  (US$96.6 million) for the  third  quarter of 2024. On a quarter-over-quarter foundation, working prices and bills elevated by 8.6%.

• Working prices elevated by 9.1% yr over yr to RMB340.6 million (US$48.5 million) for the third quarter of 2024, as in contrast with RMB312.3 million for the third quarter of 2023, which was primarily pushed by (i) a rise of RMB46.5 million in prices of referral and repair charges, partially offset by (ii) a lower of RMB10.0 million in personnel prices, and (iii) a lower of RMB7.0 million within the prices for crowdfunding consultants workforce. On a quarter-over-quarter foundation, working prices elevated by 6.7% from RMB319.1 million, primarily resulting from (i) a rise of RMB32.6 million in prices of referral and repair charges, partially offset by (ii) a lower of RMB8.9 million in personnel prices, and (iii) a lower of RMB5.1 million within the prices for crowdfunding consultants workforce.
• Gross sales and advertising and marketing bills decreased by 7.7% yr over yr to RMB173.2 million (US$24.7 million) for the third quarter of 2024, as in contrast with RMB187.7 million for a similar quarter of 2023. The lower was primarily resulting from (i) a lower of RMB36.5 million in personnel prices and share-based compensation bills, partially offset by (ii) a rise of RMB21.1 million in advertising and marketing bills to third-party visitors channels. On a quarter-over-quarter foundation, gross sales and advertising and marketing bills elevated by 10.0% from RMB157.4 million, primarily resulting from (i) a rise of RMB14.4 million in advertising and marketing bills to third-party visitors channels, (ii) a rise of RMB4.5 million in outsourced gross sales and advertising and marketing service charges to 3rd events, and partially offset by (iii) a lower of RMB3.1 million in gross sales and advertising and marketing personnel prices and share-based compensation bills
• Basic and administrative bills decreased by 3.2% yr over yr to RMB111.0 million (US$15.8 million) for the third quarter of 2024, in contrast with RMB114.6 million for a similar quarter of 2023. The year-over-year variance was resulting from (i) a lower of RMB24.8 million in skilled service charges, (ii) a lower of RMB5.8 million in personnel prices and share-based compensation bills, partially offset by (iii) a rise of RMB10.6 million in allowance for uncertain accounts, and (iv) a rise of RMB20.6 million impairment loss for intangible belongings associated to the acquisition of Shenzhen Cunzhen Qiushi Expertise Co., Ltd. and its subsidiaries (“Shenlanbao”). On a quarter-over-quarter foundation, common and administrative bills elevated by 18.1% from RMB94.0 million, resulting from (i) a rise of RMB20.6 million impairment loss for intangible belongings associated to the acquisition of Shenlanbao, (ii) a rise of RMB6.9 million in personnel prices and share-based compensation bills, partially offset by (iii) a lower of RMB6.8 million in skilled service charges, and (iv) a lower of RMB3.1 million allowance for uncertain accounts.
• Analysis and growth bills decreased by 28.4% yr over yr to RMB53.0 million (US$7.5 million) for the third quarter of 2024, in contrast with RMB73.9 million for a similar interval of 2023. The lower was primarily resulting from a lower of RMB18.9 million in personnel prices and share-based compensation bills. On a quarter-over-quarter foundation, analysis and growth bills remained steady.

Working revenue  for the third  quarter of 2024 was RMB26.5  million  (US$3.8  million), as in contrast with  an working lack of RMB2.1  million for  the third  quarter of 2023  and an working revenue of RMB52.4  million for the second  quarter of 2024.

Curiosity revenue for the third  quarter of 2024 was RMB36.0 million  (US$5.1 million), as in contrast with  RMB32.9 million for  the third quarter  of 2023 and RMB37.5 million for the second quarter of 2024.

Revenue tax profit  for the third  quarter of 2024 was RMB7.8 million (US$1.1 million), as in contrast with RMB1.5  million for  the  third quarter  of 2023 and an revenue tax expense of RMB7.0 million for the second quarter of 2024.

Web revenue attributable to the Firm’s bizarre shareholders for the third quarter of 2024 was RMB92.8 million (US$13.2 million), as in contrast with RMB36.7 million for a similar interval of 2023, and RMB88.3 million for the second quarter of 2024.

Adjusted web revenue attributable to the Firm’s bizarre shareholders (non-GAAP⁽¹⁾) for the third quarter of 2024 was RMB126.0 million (US$18.0 million), as in contrast with RMB74.3 million for a similar interval of 2023, and  RMB108.7 million for the second quarter of 2024.  

Money place⁽²⁾

As of September 30, 2024, money place of the Firm was RMB3,440.1 million (US$490.2 million), as in contrast with RMB3,571.6 million as of December 31, 2023.

Share Repurchase Applications  

Pursuant to the share repurchase applications launched in September 2021, September 2022, September 2023 and September 2024, respectively, we had cumulatively repurchased roughly 50.9 million ADSs from the open market with money for a complete consideration of roughly US$102.3 million as of November 30, 2024.

Supplemental Data  

We arrange and report our enterprise in  three working segments:

• Insurance coverage, which primarily consists of Waterdrop Insurance coverage Market, Shenlanbao Insurance coverage Market and technical help service;
• Crowdfunding, which primarily consists of Waterdrop Medical Crowdfunding; and
• Others, which primarily embrace Digital Medical Trial Resolution and different new initiatives.

The desk under units forth the section working outcomes, with the nine-month comparative figures retrospectively adjusted to evolve to this presentation.

Change Fee

This announcement comprises translations of sure RMB quantities into U.S. {dollars} (“USD” or “US$”) at specified charges solely for the comfort of the reader. Until in any other case said, all translations from RMB  to USD have been made on the fee of RMB7.0176 to US$1.00, the midday shopping for fee in impact on September  30, 2024  within the H.10 statistical launch of the Federal Reserve Board. The Firm makes no illustration that the RMB  or USD quantities referred may very well be transformed into USD or RMB, because the case could also be, at any specific fee or in any respect. For analytical presentation, all percentages are calculated utilizing the numbers introduced within the monetary statements contained on this earnings launch.

Non-GAAP Monetary Measure

The Firm makes use of  non-GAAP monetary measure, adjusted web revenue attributable to our bizarre shareholders, in evaluating the Firm’s working outcomes and for monetary and operational decision-making functions. Adjusted web revenue attributable to our bizarre shareholders represents web revenue  attributable to our bizarre shareholders  excluding share-based compensation expense  attributable to our bizarre shareholders, overseas forex change achieve or losses, impairment of intangible belongings acquired from enterprise mixture  and associated tax results on non-GAAP changes

The non-GAAP monetary measure is  not introduced in accordance with U.S. GAAP and could also be totally different from non-GAAP strategies of accounting and reporting utilized by different firms. The non-GAAP monetary measure has  limitations as analytical instruments and when assessing the Firm’s working efficiency, traders shouldn’t take into account it in isolation, or as an alternative to web loss or different consolidated statements of complete loss information ready in accordance with U.S. GAAP. The Firm encourages traders and others to assessment its monetary data in its entirety and never depend on a single monetary measure. Traders are inspired to assessment the Firm’s historic non-GAAP monetary measure to essentially the most straight comparable GAAP measure. Adjusted web revenue attributable to our bizarre shareholders introduced right here will not be similar to equally titled measure introduced by different firms. Different firms could calculate equally titled measure in another way, limiting  its  usefulness as a comparative measure to our information.

The Firm mitigates these limitations by reconciling the non-GAAP monetary measure to essentially the most comparable U.S. GAAP efficiency measure, all of which needs to be thought-about when evaluating the Firm’s efficiency.

For extra data on the non-GAAP monetary measure, please see the desk captioned “Reconciliation of GAAP and Non-GAAP Outcomes” set forth on the finish of this press launch.

Protected Harbor Assertion

This press launch comprises statements which will represent “forward-looking” statements pursuant to the “protected harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. These forward-looking statements may be recognized by terminology similar to “will,” “expects,” “anticipates,” “goals,” “future,” “intends,” “plans,” “believes,” “estimates,” “more likely to” and related statements. Amongst different issues, quotations on this announcement, comprise forward-looking statements. Waterdrop might also make written or oral forward-looking statements in its periodic stories to the  SEC, in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to 3rd  events. Statements that aren’t historic details, together with statements about Waterdrop’s beliefs, plans and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. Numerous elements may trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: Waterdrop’s mission, objectives and techniques; Waterdrop’s future enterprise growth, monetary situation and outcomes of operations; the anticipated development of the insurance coverage, medical crowdfunding and healthcare trade in China; Waterdrop’s expectations relating to demand for and market acceptance of our services; Waterdrop’s expectations relating to its relationships with shoppers, insurance coverage carriers and different companions; competitors within the trade and related authorities insurance policies and laws referring to insurance coverage, medical crowdfunding and healthcare trade. Additional data relating to these and different dangers is included in Waterdrop’s filings with the SEC. All data supplied on this press launch is as of the date of this press launch, and Waterdrop doesn’t undertake any obligation to replace any forward-looking assertion, besides as required beneath relevant legislation.

Convention Name Data

Waterdrop’s administration workforce will maintain a convention name on December 11, 2024 at 7:00 AM U.S. Japanese Time (8:00 PM Beijing/Hong Kong Time on the identical day) to debate the monetary outcomes. Dial-in particulars for the earnings convention name are as follows:

Individuals can select between the Chinese language and the English interpretation strains. Please word that the English interpretation possibility can be in listen-only mode. Please dial in quarter-hour earlier than the decision is scheduled to start and supply the Elite Entry Quantity to hitch the decision.

Phone replays can be accessible two hours after the conclusion of the convention name till December 18, 2024 by dialing the next numbers:

A dwell and archived webcast of the convention name may also be accessible on the Firm’s investor relations web site at http://ir.waterdrop-inc.com/.

About Waterdrop Inc.

Waterdrop Inc. (NYSE: WDH) is a number one know-how platform devoted to insurance coverage and healthcare service with a constructive social influence. Based in 2016, with the great protection of Waterdrop Insurance coverage Market and Waterdrop Medical Crowdfunding, Waterdrop goals to carry insurance coverage and healthcare service to billions via know-how. For extra data, please go to www.waterdrop-inc.com.

For investor inquiries, please contact

Waterdrop Inc.
IR@shuidi-inc.com