Waterdrop Inc. Reports Remarkable 152.6% Increase in Q3 2024 Profit
On December 11, 2024, Waterdrop Inc. (NYSE: WDH), a leading technology platform focused on insurance and healthcare services, announced its unaudited financial results for the third quarter of 2024, which ended on September 30, 2024. The results showcased a stunning performance with net operating revenue reaching RMB 704.1 million. Notably, the net profit attributable to ordinary shareholders soared to RMB 92.8 million, representing an impressive increase of 152.6% compared to the same quarter of the previous year. This achievement marks the continuation of a profitable streak for eleven consecutive quarters, demonstrating the company's strong market presence and effective operational strategies.
Operating expenditures, which encapsulate sales, administrative, and research and development expenses, constituted 47.9% of the revenue, a notable reduction of 6.9 percentage points from the prior year. This optimization in their expense structure is indicative of Waterdrop's commitment to enhancing operational efficiency.
Mr. Peng Shen, the founder, chairman, and CEO of Waterdrop, expressed his enthusiasm about the financial results, stating, "We are delighted to announce another quarter of robust profitability, with net profit attributable to ordinary shareholders reaching 2.5 times that of the third quarter last year." This growth trajectory aligns well with Waterdrop’s overarching goal of transforming insurance and healthcare accessibility via innovative technologies.
In the insurance sector, Waterdrop reported related revenues totaling RMB 600.7 million for the third quarter, with the insurance business' operating profit amounting to RMB 123 million. There was a significant 20.4% year-on-year increase in first-year premiums (FYPs), totaling RMB 2,041.8 million during this period. Since the initiation of its share repurchase program in September 2021, Waterdrop has successfully bought back around 50.9 million of its American Depositary Shares (ADSs) from the open market up to September 2024.
In April 2024, the company introduced the initiative known as 'Three Good Services,' encompassing good service, good products, and good claims. Subsequently, on September 11, 2024, in collaboration with fourteen insurance companies, Waterdrop launched the 'Three Good Services Alliance' and introduced their first set of 'Public Review Panels.' This strategic move aims to establish an ecosystem oriented around user-centric insurance services.
Additionally, the AI Consultant initiative, leveraging the 'Waterdrop Guardian' large language model, has manifested in impressive results, generating millions in monthly premiums by efficiently addressing user inquiries. Furthermore, the inception of the 'AI Service Quality Agent' marks a significant enhancement in streamlining the service quality inspection, replacing traditional manual processes.
Waterdrop has also ventured into developing AI sales agents tailored for various businesses through an external conversational AI platform, ensuring their innovative stance within the insurance and healthcare sector.
On another note, Waterdrop’s Medical Crowdfunding initiative saw a commendable outpouring of support, raising RMB 66.3 billion for 3.32 million patients through collective donations from approximately 466 million individuals. Despite an operating loss of about RMB 17.9 million in this segment, the losses have lessened compared to prior periods, illustrating a steady path towards operational viability.
The Digital Clinical Trial Solution maintained its upward trajectory, reporting revenues of approximately RMB 24.3 million in the third quarter of 2024. The company has effectively enrolled over 9,500 patients in 1,137 clinical trial programs using the E-Find Platform as of September 30, 2024.
As stated by Mr. Shen, "This quarter, Waterdrop remained user-centric, exploring innovations powered by Large Language Models to foster business growth while showing resilience across all operations. We commit to enhancing our core capabilities to enable high-quality business expansion through advanced technologies and to continuously deliver value to society. Our mission at Waterdrop is to broaden access to insurance and healthcare for a vast audience through our technological advancements."
These noteworthy milestones underscore Waterdrop Inc.’s commitment to enhancing the insurance and healthcare landscape, championing innovative technological solutions that align with societal needs.
Operating expenditures, which encapsulate sales, administrative, and research and development expenses, constituted 47.9% of the revenue, a notable reduction of 6.9 percentage points from the prior year. This optimization in their expense structure is indicative of Waterdrop's commitment to enhancing operational efficiency.
Mr. Peng Shen, the founder, chairman, and CEO of Waterdrop, expressed his enthusiasm about the financial results, stating, "We are delighted to announce another quarter of robust profitability, with net profit attributable to ordinary shareholders reaching 2.5 times that of the third quarter last year." This growth trajectory aligns well with Waterdrop’s overarching goal of transforming insurance and healthcare accessibility via innovative technologies.
In the insurance sector, Waterdrop reported related revenues totaling RMB 600.7 million for the third quarter, with the insurance business' operating profit amounting to RMB 123 million. There was a significant 20.4% year-on-year increase in first-year premiums (FYPs), totaling RMB 2,041.8 million during this period. Since the initiation of its share repurchase program in September 2021, Waterdrop has successfully bought back around 50.9 million of its American Depositary Shares (ADSs) from the open market up to September 2024.
In April 2024, the company introduced the initiative known as 'Three Good Services,' encompassing good service, good products, and good claims. Subsequently, on September 11, 2024, in collaboration with fourteen insurance companies, Waterdrop launched the 'Three Good Services Alliance' and introduced their first set of 'Public Review Panels.' This strategic move aims to establish an ecosystem oriented around user-centric insurance services.
Additionally, the AI Consultant initiative, leveraging the 'Waterdrop Guardian' large language model, has manifested in impressive results, generating millions in monthly premiums by efficiently addressing user inquiries. Furthermore, the inception of the 'AI Service Quality Agent' marks a significant enhancement in streamlining the service quality inspection, replacing traditional manual processes.
Waterdrop has also ventured into developing AI sales agents tailored for various businesses through an external conversational AI platform, ensuring their innovative stance within the insurance and healthcare sector.
On another note, Waterdrop’s Medical Crowdfunding initiative saw a commendable outpouring of support, raising RMB 66.3 billion for 3.32 million patients through collective donations from approximately 466 million individuals. Despite an operating loss of about RMB 17.9 million in this segment, the losses have lessened compared to prior periods, illustrating a steady path towards operational viability.
The Digital Clinical Trial Solution maintained its upward trajectory, reporting revenues of approximately RMB 24.3 million in the third quarter of 2024. The company has effectively enrolled over 9,500 patients in 1,137 clinical trial programs using the E-Find Platform as of September 30, 2024.
As stated by Mr. Shen, "This quarter, Waterdrop remained user-centric, exploring innovations powered by Large Language Models to foster business growth while showing resilience across all operations. We commit to enhancing our core capabilities to enable high-quality business expansion through advanced technologies and to continuously deliver value to society. Our mission at Waterdrop is to broaden access to insurance and healthcare for a vast audience through our technological advancements."
These noteworthy milestones underscore Waterdrop Inc.’s commitment to enhancing the insurance and healthcare landscape, championing innovative technological solutions that align with societal needs.
Topics Financial Services & Investing）
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