Waterdrop Inc. Reports Impressive Financial Growth in Q4 and FY2024, Offers Cash Dividend

Waterdrop Inc. Reports Impressive Financial Results for Q4 and FY2024

On March 12, 2025, Waterdrop Inc. (NYSE: WDH), a prominent technology platform that is dedicated to insurance and healthcare services, announced its robust financial results for the fourth quarter and the entire fiscal year ended December 31, 2024. The company experienced significant milestones, demonstrating sustained growth and profitability over the past year.

Q4 Financial Highlights

In the fourth quarter of 2024, Waterdrop reported an impressive net operating revenue of RMB 686.8 million. This figure reflects a remarkable year-over-year increase in net profit attributable to ordinary shareholders, which totaled RMB 99.6 million, representing a 68.5% increase from the same quarter the previous year. This achievement marks the twelfth consecutive quarter of profitability for the company, underscoring its operational efficiency.

Operating expenses, which comprise sales and marketing, general and administrative costs, and research and development expenses, accounted for 45.1% of the revenue during this period. This prudent management of resources is essential for maintaining a competitive edge in today's market.

Full Fiscal Year Overview

For the fiscal year 2024, Waterdrop reported a total net operating revenue of RMB 2,771.8 million, showing a year-over-year growth of 5.4%. Notably, the net profit attributable to ordinary shareholders soared by 119.8% to RMB 367.5 million, reflecting the company’s strong financial health and strategic business decisions. The operating expenses as a percentage of revenue saw a decrease from the previous year, totaling 46.1%, which is lower by 8.7 percentage points.

To celebrate the loyalty of its shareholders, Waterdrop declared a cash dividend of US$0.02 per American Depositary Share (ADS) or US$0.002 per ordinary share for shareholders on record as of close of business on April 11, 2025. This dividend is expected to be paid on or around April 30, 2025, for holders of ordinary shares, and on or around May 2, 2025, for ADS holders.

Share Repurchase Program Success

Waterdrop has also continued its share repurchase program initiated in September 2021. As of February 28, 2025, the company repurchased approximately 52.1 million ADSs at a total cost of approximately US$103.7 million, reflecting its commitment to enhancing shareholder value.

Strong Cash Position

As of the end of 2024, Waterdrop's cash reserves stood at RMB 3,670.3 million (approximately US$502.8 million), a slight increase from RMB 3,571.6 million reported at the end of 2023. This solid cash position will support the company’s ongoing investments and growth strategies moving forward.

Insurance Business Performance

Waterdrop's insurance segment reported strong outcomes, with insurance-related revenue in Q4 reaching RMB 582.4 million. The first-year premiums generated by the insurance business amounted to RMB 1,897.9 million, which reflects an encouraging year-over-year increase of 24.5%. For the full year, the insurance-related income totaled RMB 2,363.8 million, with an operating profit of RMB 477.2 million.

Mr. Peng Shen, Founder and CEO, expressed enthusiasm about the growth trajectory of the insurance division, stating, "Our insurance business capped off the year with an annual first-year premium of RMB 7,472.8 million, showing 5.1% year-over-year growth. Our focused approach on optimizing customer acquisition channels and diversifying product offerings has yielded impressive results, with new user acquisitions surging by 14.9%."

Technological Advancements

The company is not only focused on financial results but is also advancing in technology. Waterdrop has recently bolstered its AI capabilities by integrating DeepSeek models into its operations, enhancing the AI-driven insurance ecosystem. The upgraded AI Insurance Expert allows for multi-modal interactions, including voice and text, significantly improving sales strategies and user experience.

Medical Crowdfunding Efforts

In deeper partnership with its social mission, Waterdrop Medical Crowdfunding demonstrated remarkable success by raising RMB 67.5 billion for 3.40 million patients as of December 31, 2024. This initiative highlights the company's commitment to providing financial assistance in emergencies and has been recognized as a pioneer in China's standardized medical crowdfunding sector.

Conclusion

Waterdrop Inc. enjoyed an exceptional year, driven by a combination of strategic decisions, technological innovation, and commitment to social impact. As they move into 2025, the organization aims to leverage its strengths and continue delivering impactful solutions while maintaining a firm commitment to 'Tech for Good'. With the new appointment of Mr. Chen Lin as an independent director, Waterdrop is poised to strengthen its governance framework further.

Overall, Waterdrop’s financial performance in Q4 and FY2024 is a testament to the resilience and dedication of the company in creating positive changes in the insurance and healthcare sectors.