Waterdrop Inc. Reports Third Quarter 2024 Financial Results
Waterdrop Inc. (NYSE: WDH), a prominent technology platform focused on insurance and healthcare services, announced its unaudited financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Q2 2024 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Net Operating Revenue | US$100.3 million | US$97.9 million | US$96.3 million | +2.6% | +4.1% |
| Net Profit (Shareholders) | US$13.2 million | US$5.2 million | US$12.6 million | +152.6% | +4.5% |
| Adjusted Net Profit | US$18.0 million | US$10.6 million | US$15.5 million | +70.9% | +16.1% |
The company's financial performance demonstrates strong profitability and growth, with net profit attributable to ordinary shareholders increasing by 152.6% year-over-year and a noteworthy quarter-over-quarter improvement of 4.5%.
Segment Revenue Performance
| Segment | Q3 2024 (US$) | Q3 2023 (US$) | Q2 2024 (US$) | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Insurance-related Income | $85.6 million | $88.3 million | $81.8 million | -3.0% | +4.7% |
| Crowdfunding Service Fees | $9.4 million | $5.1 million | $9.9 million | +83.0% | -5.0% |
| Digital Clinical Trial Solution | $3.5 million | $3.9 million | $3.0 million | -12.1% | +17.4% |
Waterdrop's insurance segment faced a slight year-over-year downturn but experienced a 4.7% quarter-over-quarter increase. The crowdfunding segment exhibited robust growth with an 83.0% year-over-year increase, despite a 5.0% decline from the previous quarter. The digital clinical trial solution also encountered a slight year-over-year decline but improved significantly by 17.4% quarter-over-quarter.
Key Developments and Operational Highlights
- Successful enrollment of over 9,500 patients in 1,137 clinical trial programs through E-Find Platform.
- Over 466 million individuals have donated approximately RMB66.3 billion to Waterdrop Medical Crowdfunding.
- Continued growth of digital clinical trial solution income, supported by collaborations with 184 pharmaceutical companies and CROs.
- Deployment of AI applications, including 'AI Consultant' and 'AI Service Quality Agent', enhancing operations and service quality.
Executive Comments
Mr. Peng Shen, Founder and CEO, highlighted the company's strong profitability and growth momentum. He emphasized the robust performance of the insurance business, which saw a 14.8% quarter-over-quarter increase in first-year premiums, and praised the progress in medical crowdfunding, noting regulatory advancements in the sector. Mr. Shen also expressed confidence in the company's AI capabilities and their positive impact on operations and customer engagement.
Share Repurchase and Dividends
The company completed a share repurchase program, acquiring approximately 50.9 million ADSs from the open market for US$102.3 million. A second special cash dividend of approximately US$7.3 million was distributed.
Forward Guidance
No specific forward guidance was provided. However, CEO Peng Shen expressed optimism about maintaining competitive advantage and sustainable growth.
The company's performance in the third quarter of 2024 reflects its strong operational execution and strategic initiatives, positioning it well for future growth in the insurance and healthcare sectors.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
