Waterdrop's Impressive Q4 and FY2024 Performance and Growth
Waterdrop Reports Remarkable Financial Growth for FY2024
Waterdrop Inc. (NYSE: WDH), renowned for its innovative technology platform focused on insurance and healthcare services, has released its unaudited financial results for the fourth quarter and fiscal year. This reputable company has demonstrated impressive progress, showcasing significant year-over-year growth in net profit and overall revenue.
Quarterly and Annual Financial Highlights
For the fourth quarter, Waterdrop achieved net operating revenue of RMB 686.8 million. More impressively, the net profit attributable to ordinary shareholders reached RMB 99.6 million, marking a substantial increase of 68.5% compared to the same quarter last year. This achievement underscores Waterdrop’s consistent profitability over the last twelve quarters. For the full year 2024, the company reported a net operating revenue increase of 5.4%, totaling RMB 2,771.8 million. The net profit attributable to shareholders rose an astonishing 119.8% to RMB 367.5 million, reflecting strong operational performance and improved efficiency.
Operating Expenses and Profit Margins
Waterdrop’s operating expenses, which include sales, marketing, general and administrative costs, and research and development expenses, accounted for 45.1% of revenue in the fourth quarter. This figure is an improvement over last year’s figures, with a notable decrease in expenses to 46.1% for FY2024, down 8.7 percentage points year-over-year. This efficiency is a cornerstone of Waterdrop’s growth strategy.
Generous Cash Dividend for Shareholders
In appreciation of their loyal shareholders, Waterdrop has declared a cash dividend of US$0.02 per American Depositary Share (ADS) or US$0.002 per ordinary share. This dividend will be distributed to shareholders who are on record by the close of business on an upcoming date, with payments expected shortly thereafter.
Share Repurchase Program
Continuing its commitment to enhancing shareholder value, Waterdrop has actively participated in a share repurchase program since September 2021. As of February 28, 2025, the company has repurchased approximately 52.1 million ADSs, amounting to an impressive US$103.7 million in total consideration. This initiative reflects Waterdrop’s dedication to maintaining market confidence and driving long-term value for its shareholders.
Cash Position Strength
As of December 31, 2024, Waterdrop maintains a robust cash position of RMB 3,670.3 million (approximately US$502.8 million). This strength is an increase from RMB 3,571.6 million at the end of 2023, showcasing the company’s sound financial management and growth trajectory.
Success in the Insurance Sector
Waterdrop’s insurance business has proven to be a significant driver of revenue. In the fourth quarter, insurance-related revenue reached RMB 582.4 million, while first-year premiums (FYP) generated via the insurance sector amounted to RMB 1,897.9 million, representing a remarkable 24.5% year-over-year growth. For the entire year, insurance income totaled RMB 2,363.8 million, with an operating profit of RMB 477.2 million.
Innovations in Insurance Technology
Additionally, Waterdrop has made substantial advancements in its AI-driven insurance ecosystem. The integration of DeepSeek models enhances customer interactions, supporting voice and text communication. This cutting-edge technology positions Waterdrop favorably within the competitive landscape of insurance and healthcare.
Waterdrop Medical Crowdfunding Achievements
Waterdrop’s Medical Crowdfunding initiative has successfully raised RMB 67.5 billion for over 3.4 million patients. This platform underlines Waterdrop’s commitment to social responsibility, demonstrating its impact on providing essential financial support for medical needs.
Recognition as Industry Pioneer
Waterdrop Medical Crowdfunding has gained recognition for its role in advancing China’s medical crowdfunding sector. By recently securing a designation as a state-endorsed online service platform, it underscores the platform's credibility and commitment to facilitating financial help for individuals in need.
New Director Strengthening Leadership
Waterdrop has appointed Mr. Chen Lin as an independent director on its board, effective March 11, 2025. With extensive experience and a notable academic background, Mr. Lin brings a wealth of knowledge that will strengthen the company’s leadership team and support its strategic objectives.
Company Commitment to Growth and Innovation
Overall, Waterdrop Inc. has exhibited robust performance across its various business sectors, bolstered by a focus on technology and customer-centric growth strategies. As the company navigates the evolving landscape of insurance and healthcare innovations in the coming years, it remains steadfast in its mission of leveraging technology for the greater good.
Frequently Asked Questions
What are the highlights of Waterdrop's FY2024 financial results?
Waterdrop reported a 119.8% increase in annual net profit and a 5.4% rise in annual revenue, reaching RMB 2,771.8 million.
What dividends has Waterdrop declared for shareholders?
The company declared a cash dividend of US$0.02 per ADS to shareholders as a sign of appreciation for their support.
What advancements has Waterdrop made in its insurance business?
Waterdrop experienced a significant increase in first-year premiums and has integrated AI technology for enhanced customer interactions.
How has Waterdrop's Medical Crowdfunding initiative performed?
The platform raised RMB 67.5 billion for over 3.4 million patients, showcasing its impact on community support.
Who has joined Waterdrop's leadership team recently?
Mr. Chen Lin has been appointed as an independent director, bringing extensive experience to strengthen the board's capabilities.
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